Machinery Insurance

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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