This is a policy which covers financial loss incurred by the insured due to loss or damage to machinery as a
result of sudden accidental electrical and mechanical
It reimburses the insured for the cost of repairs or replacement of machinery of like nature.
Who can take this Insurance?
This insurance can be taken by the individual owner of the machine or a person or company having financial interest
in the machine.
What kind of machines can be covered?
All types of industrial machinery like compressors, pumps, turbine etc. as also electrical machines like
transformer, electrical motor, generator etc. can be covered under this policy.
What is the sum insured or value for which policy is to be taken?
It is a requirement of this policy that the sum insured or value for which the particular machine is insured
should represent the present day purchase value of a similar new machine including all incidental expenses like
taxes, excise, freight, insurance charges, handling charges etc.
In case the sum insured under the policy is less than as per the above requirement the claim will be paid only in
such proportion as the sum insured bears to the current replacement cost of similar new machinery.
The policy can be extended to include the following risks on payment of additional premium.
Damage to foundation of machinery
Damage to oil in electrical apparatus
Express freight (excluding air freight), holiday rates, overtime charges
Additional custom duty i.e the additional percentage of duty payable at the time of reimport for replacement over
and above the percentage of duty included in the original sum insured.
Own surrounding property i.e. damage to the insured's own existing property or property in his custody or control
(not included in the sum insured of the policy) due to any damage to the insured machines which is covered under the policy.
Third party liability i.e. liability falling on the insured for bodily injury to any other party other than those
covered by the policy or for property damage belonging to such other party.