Machinery Insurance Claim Process

Machinery Insurance Claim Process

Scope of Cover and Documents required for Claims

Machinery Insurance provides insurance protection to both rotating as well as static equipment while at work or at rest against mechanical and electrical breakdown and also human error and negligence.

What is insured?

  • All Machinery and plant
  • Machinery Ready for commercial operation including newly installed plant once it has been commissioned and the testing period is completed.
  • This Insurance applies is at work or at rest, or dismantled for the purpose of cleaning, overhauling, or being shifted within the premises, or in course of subsequent reelection.
  • The insured property is covered as long as it is on the premises specified in the schedule. Items not covered by this Insurance are: Exchangeable tools of all kinds, such as drills, cutters, crushers, patterns for casting, knives, saw blades, stones, stamps etc. Conveyor belts, sieves and hoses, rubber-textiles-plastic linings and bands, brushes and tire, ropes, chains, belts, parts made of glass & Ceramics & porcelain. Foundation Blocks, brick lining of furnaces, ovens and containers, firing grids and burner nozzles. Fuels, filter fillings, cooling media, cleaning products, lubricants and oil fillings. Catalysts, chemicals and contact agents.

Insured Perils:

Sudden and unforeseen loss or physical damage, necessitating its repair or replacement and resulting from:
  • Fortuitous working accidents such as maladjustments, loosening of parts, failures or faults in protective devices, entry of foreign bodies.
  • Tearing apart due to centrifugal forces.
  • Shortage of water in steam boilers or pressure vessels.
  • Overpressure or implosion,
  • Short circuit, over voltage or over current.
  • Defects or faults in design, materials or manufacturing and faults in erection.
  • Faulty operation, lack of skill, carelessness, malevolence of employees.
  • Storm.
  • Any other loss not hereinafter, not excluded.

Excluded perils:

  • Covers contents of the dwelling against loss due to burglary, house breaking, larceny or theft.
  • Corrosion, erosion, wasting or wearing of any part of machinery caused by ordinary use of working and any other continuous chemical or atmospheric influence, undue deposit of mud, rust, boiler scale or other deposits.
  • Breakdown caused by test, intentional overloading, or experiments involving imposition of abnormal conditions.
  • Fire, Explosion, Lightning, whether direct or indirect, extinguishing of Fire, subsequent demolition, dismantling and clearing of debris.
  • Earthquake, Seaquake, Tsunami, Landslide, rockslide, flood, inundation, hurricane, typhoon, cyclone, volcanic eruption.
  • Theft, Burglary
  • Damages arising out of willful act, negligence by the insured or the management.
  • Any faults or defects existing at the time of commencement of the present insurance within the knowledge of the Insured or Management.
  • Loss or damage for which the manufacturer or supplier of the property is responsible either by Law or Contractual obligations.
  • Consequential loss or damage or liability of any nature.
  • War perils and Strike Riots or civil commotion or lockout, confiscation, commandeering, requisition or destruction of or damage to property by order of any government or any public or municipal authority.
  • Loss destruction or damage caused by nuclear fuel, radioactivity, ionizing radiations, contamination by nuclear fuel or waste, and other nuclear perils.

Claim Documents Required:

  • Completed Claim Form.
  • Particulars of the accident.
  • Equipment lost or damaged along with the serial number in the Assets register.
  • Original Invoice.
  • New replacement value (Quotation from supplier).
  • In case of repairs then repairers estimate and whether it is temporary or permanent repair.
  • Name of Financier and financial interest on the damaged or lost equipment.
  • If equipment is under warranty then copy of such warranty.
  • In case of Refrigerators or Cold storage then details of products stored which are damaged along with item wise details.
  • Date of installation of machinery and erection reports including test reports.
  • Details of Subsidies or tax credits received from the Government.
  • Any other document the Insurer may require.

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.