Machinery Insurance is developed to grant industry the effective insurance cover for expensive plant, machinery and mechanical equipment. All type of machinery, plant, electrical and mechanical equipment and apparatus may be covered under this policy. By its very nature Machinery Insurance is an all risk "Accident" insurance for machinery. It covers unforeseen and sudden physical loss or damage from causes not specifically excluded, in a manner necessitating repair or replacement. Those items having a short service life compared to the entire plant are normally excluded.
Machinery Loss Of Profit (MLOP) Insurance:
This policy provides cover for actual loss of gross profit sustained as a result of a business interruption caused by an accident indemnifiable under machinery insurance.
MLOP insurance makes good:
he continuing business expenses (standing charges)
The net profit
The salaries and wages paid to employees
The increase in cost of working like the additional expenditure incurred for avoiding or diminishing a reduction in turnover
MLOP insurance is of special interest for bottle neck equipment used in the field of power generation like boilers, steam turbines, generators, transformers, process machinery etc.
Boiler and Pressure Vessel Insurance (Machinery):
Boiler is an integral part of many plants. Boiler is a device which produces steam under high pressure and temperature. Boiler is an expensive equipment and always contain risk of explosion and collapse. Boiler explosion not only destroy the boiler itself but cause catastrophic damage to surrounding property and machines. Collapse of a boiler occur more frequently than explosion and may occur due to bending of boiler's components due to high temperature and pressure. This policy covers both loss due to explosion and collapse of boiler or any other pressure vessel (like gas cylinder). This policy covers cost of repairs of boiler and pressure vessel and auxiliary equipment and surrounding buildings, machinery and other property.