- Also known as Machinery Insurance Policy
- Covers all kinds of machinery and equipment in a particular location like a factory, an office, a workshop, etc., These machinery and equipment are generally fixed and non – moveable.
- The machinery/equipment is covered whilst working, or at rest or being dismantled and re-erected for the purpose of repairs or overhauling
- Property owners, mortgagees, pledgees, bailees, trustees, bankers, and financiers can insure their interest in the property
- What is covered: Unforeseen, sudden physical loss or damage to the machinery due to any fortuitous break down (mechanical or electrical) caused by events like
- Faulty design, faulty erection, defects in casting, and material.
- Faulty operation, failure of safety/ lubrication/ control systems.
- Tearing apart due to centrifugal forces.
- Short circuit, excess voltage.
- Water shortage in boilers.
- Damages due to the human element, lack of skill, negligence.
- Special features:
- Selected machinery/equipment can be insured based on risk perception.
- The machinery equipment should be insured for the current value of a new machine of the same type and capacity
