Cover-
Various types of machinery, plant and equipment (mechanical/electrical) can be insured. Any type of installed machinery with an option to insure/to cover only selected equipments. The following persons can be insured -
1- The owner of the machinery.
2- In case of any financier’s interest eg. Bank, IDBI etc. machinery can be insured in the joint names.
The sum insured should represent - Present day replacement value which includes
- Basic cost + customs duty
- Incidental cost

Covers the following risks -
Policy covers the insured machinery, plant and equipments while at work/idle, being dismantled or removed or re-erected, if performed in the same premises, damage to electrical machinery due to fire originating within itself.
It covers loss or damage due to faulty operation, adjustment, casting, vibration, entry of foreign objects, loosening of parts, self heating, centrifugal force, short circuit.

Basis of Indemnity
The sum insured representing the present replacement cost of the machinery.

Partial Loss
Full cost of parts plus the labour charges, to and fro freight, customs duty and charges for dismantling and re-erection. Excess applicable to the affected item is deducted from claim. Depreciation is applied for items with limited life.

Exclusions
1- Fire and allied perils
2- War and War like operations, Nuclear perils
3- Wilful act or gross negligence, existing defects, normal wear and tear and consequential loss
4- Loss or damage falling under manufacturer’s warranty