Electronic Equipment Insurance Claim Process

Scope of Cover and Documents required for Claims

Scope & Items Covered:

This is issued on All Risk bases to cover computers, bio-medical equipment, X-ray equipment, Audio/Video equipment, micro processor equipment, etc. External Data Media,
Increased cost of working in the event of damage due to an Insured peril.

General Exclusions:

  • The excess stated in the policy.
  • Loss or damage arising out of faults or defects existing at the commencement of the Insurance within the knowledge of the Insured or his representatives.
  • Loss or damage as a direct consequence of the continual influence or operation E.g. Wear and tear, cavitations, erosion, corrosion, incrustation or of gradual deterioration due to atmospheric conditions.
  • Any costs involved in connection with the elimination of functional failure unless such failure was caused by an insured peril.
  • Any costs incurred in the maintenance of the insured items in the course of maintenance operations.
  • Loss or damage for which the manufacturer or supplier is responsible either by law or contract.
  • Loss or damage to rented or hired equipment for which the owner is responsible by lease agreement or contract or law.
  • Consequential loss or Liability of any kind or description.
  • Loss or damage to Bulbs, valve tubes, ribbons, fuses, seals, belts, wires, chains, rubber tires, exchangeable tools, engraved cylinders, objects made of glass porcelain or ceramics, sieves or fabrics or any operating media such as oils, fuel, chemicals etc.
  • Aesthetic defects like scratches on painted, polished or enameled surfaces.
  • War and war group of perils.
  • Nuclear perils.
  • Willful Act or Willful negligence of the Insured or his representatives.
  • Cessation of work whether total or partial.
  • Cost incurred/time involved in the movement of machinery and or other property and or personnel outside the territorial limits of India, other than the cost of delivery of replacements for machinery lost or damaged.
  • Loss destruction or damage directly occasioned by pressure wave caused by caused by aircraft and other aerial devices traveling at sonic or supersonic speeds.

Documents Required for Claim

  • Completed Claim Form.
  • Estimated cost of repairer for repair claims.
  • A certificate from the repairer about the cause of loss.
  • In the event for Total Loss claims a certificate from the Manufacturer or Supplier that the said equipment cannot be repaired together with the cause of the loss/damage to the equipment in question.
  • Original Invoice copy of the damaged equipment together with cost of transportation and Import Duty paid particulars in case of imported equipments.
  • In case of Imported second hand machines the Invoice copy and import documents.
  • In case of repair to imported equipment then the current value of parts to be imported together with Import costs.
  • Copy of Asset register wherein the damaged item is mentioned with serial number.
  • In case of damage to external data media the cost of replacing the media together with reproducing lost information.
In case of Increased Cost of working claims then the cost of substitute equipment and the time within which the damaged equipment will be repaired or replaced
  • Spot photograph of the damaged equipment when the loss occurs.
  • After completion of repairs a certificate from the repairer that the same has been duly repaired and is functioning according to standards/specifications.
  • In the case of Total Loss claims a certificate from the Manufacturer/Supplier that the replaced item is functioning according to standards/specifications.
  • Copy of Equipment maintenance register if Last date of Maintenance carried out, spares replaced, to show frequency of maintenance.

In the event of Claims being repudiated by the Insurance Company the following options are available as a recourse:

  • Make a representation to the Insurance Company/TPA.
  • If no reply is received within 15 days on making such representation make a representation to the Grievance Cell of the Insurance Company.
  • If No Reply is received or if the reply is not satisfactory then make a representation to the Insurance Ombudsman who has Quasi Judicial powers to hear the case and make adjudication.
  • If still not satisfied the next option is to go to court.