The policy covers the loss or damage to the items whilst on the premises mentioned therein ,if they suffer any unforeseen and sudden physical loss or damage from causes such as defects in casting and material ,faulty design, faults at workshop or in erection, bad workmanship, lack of skill, carelessness, shortage of water in boilers, physical explosion, tearing apart on account of centrifugal force, short circuit, storm, or from any other cause not specifically excluded.
Sum Insured
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The sum insured should be equal to the cost of replacement of the insured machinery by new
machinery of the same kind and capacity, which means its cost of replacement including, e.g., freight,
dues and customs duty, if any, and the cost of erection.
Premium
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Premium depends on the type of machinery to be insured.
