Engineering Insurance

For some high technology or heavy machinery of high value, the potential loss can amount to millions of ringgit. This insurance protects against physical loss, major heavy machinery breakdown or damages that are costly to repair.

This form of cover protects against unforeseen and sudden physical loss or damage to machineries from cause such as defects in casting and materials, faulty design, faults at workshop or in erection, bad workmanship, lack of skill, carelessness, shortage of water in boiler, physical explosion, tearing apart on account of centrifugal force, short circuit or from any other cause not specifically excluded from the policy. The cover is operative whilst the machineries are working, or at rest, or being dismantled for cleaning or overhauling. Machineries will only be insured after successful completion of their performance acceptance test.

Machineries Commonly Insured under Machinery Insurance

• This form of cover is suitable for machinery that have moving parts or which stores or transmits large amount of energy. The following are examples of such working machineries:
• Boilers, heat exchangers, condensers
• Pumps and compressors
• AC and DC motors
• Diesel and petrol engines
• Steam and gas turbines
• Alternators, motor generators
• Switchgears, transformers, capacitors
• Overhead cranes, lifts, escalators
• Process equipment such as paper mill, plastic extruder, cement mill, screw press, agitated tank, etc

In most cases, the loss of gross profit arising from damage to machinery far exceeds the cost of repair or replacement. This policy covers against loss of gross profit following indemnifiable damage to machinery. The policy covers loss of Gross Profit following an indemnifiable accident (the cover usually follows that of the machinery breakdown policy) and is measured on the reduction in turnover compared to the same period in the last twelve months and applying the Rate of Gross Profit. Cover also extends to include Additional Expenditure reasonably incurred to minimise the loss of Gross Profit. The costs of non productive wages can be included either as treating them as a standing charge, or taking out more specific covers such as Dual Wages. Professional accountants' charges to produce certified details for the Insured's presentation of a claim can be included.

This policy covers the work to be executed in accordance with the contract including temporary works, materials, construction plant and equipment brought into the site and third party liabilities arising out of the performance of the contract. Duration of cover corresponds with the contract period which is stipulated in the Letter of Award.

Specially designed to cover the computer system which includes material damage, external data media and increased cost of working.

Section I (Material Damage) The Insurer will indemnify the Insured against any unforeseen and sudden physical loss or damage to the interest insured from any cause, other than those specifically excluded from the policy.

Section II (External Data Media) The Insurer will indemnify the Insured if the external data media entered in the Schedule inclusive of information stored thereon shall suffer any material damage covered by Section I, the cost of restoring the Insured external data media by replacing lost or damaged data media by new material and reproducing lost information. Subject to special exclusions to Section II.

Section III (Increased Cost of Working) The Insurer will indemnify the Insured for any additional expenditure incurred for the use of substitute EDP equipment not covered under this policy up to an amount not exceeding the agreed sum insured entered in the Schedule provided cause of damage/lost is indemnifiable by Section I of the policy.