MACHINERY INSURANCE

Machinery Insurance is a type of an accident insurance for machinery and provides cover against sudden and unforeseen physical loss or damage to the insured machinery. The purpose of machinery insurance is:

• To cover the cost of repairing or replacing indemnifiable breakdown or losses to machinery
• To give assistance in expediting repairs

Basic scope of cover:
1.       Human failure: carelessness, negligence, faulty operation, lack of skill, malicious acts
2.       Operational Causes: centrifugal forces, failure of control and regulating devices, physical explosion and implosion, shortage of water, overheating, impact, flue gas explosion in boilers
3.       Manufacturer's fault: Faulty design, faulty calculation, defective material and casting, bad workmanship, faults in assembly and erection
4.       Electrical causes: Faulty insulation, short circuit, overtension/excessive voltage
5.       Natural Hazards: Storm, frost, water
6.       Environmental hazards: Dust, humidity, temperature