Page 39 - Insurance Times August 2018

Non-Life Insurance Plan

Machinery
Breakdown Insurance

from Liberty General Insurance
Company Limited

Features & Benefits Policy Inclusion

Requirements This insurance policy compensates you for the costs of re-
pair or replacement arising from covered, unforeseen cir-
Manufacturing is like the nerve center of the industrial sec- cumstances. This coverage is effective even if the equip-
tor. A lot of modern businesses depend on their ever-grow- ment is not in use, has been dismantled for maintenance
ing manufacturing power, and the machines used represent or overhauling, or is being moved on your premises.
a major investment for businesses. Unexpected damages
can affect your production capability, and in extreme situ- With an additional premium, the policy can be extended to
ations, even stop it completely. This is when a Machinery cover the following:
Breakdown Insurance can help you out. Y Escalation

Benefits Y Property surrounding insured equipment

Physical damage to machinery from accidents or unfore- Y Third party liability
seen circumstances can slow down or even halt production,
and can majorly affect your business. This policy provides Y Express freight, overtime, holiday wages etc.
coverage for the heavy additional costs that have to be paid
for repairing or replacing affected machinery. Y Air freight

Y Additional customs duty

Sum Insured Policy Exclusion

The sum insured under this policy is the replacement value Machinery Breakdown insurance is for the electrical and
of the equipment, duties paid, freight charges, and erec- mechanical equipment in industry. Electronic equipment like
tion costs. The value of foundation blocks or brickwork, lu- computers, medical, and biomedical equipment are not
brication oils, etc. is decided separately. protected. This policy has a list of ‘named excluded perils’
which are specific risks that will not be covered. These risks
Premium include:
Y Fire
The premium is calculated on the basis of the type of equip-
ment insured and their capacity. Different machinery at- Y War and nuclear disasters
tracts a different premium.
Y Damage due to overload
Coverage
Y Wear and tear
Eligibility
Y Wilful act of damage
You can avail this policy if you are:
Y The owner(s) of the machinery Y Gross negligence

Y Lessor / Lessee of the machinery Y Pre-existing defects known to you

Y Different parties with financial interests in the machinery. Y The policy is also subject to deductible excess, as will
be specified in the policy wordings.

The Insurance Times, August 2018 39