Electronic Equipment

This policy is essentially an accident insurance on an all risks basis covering losses which arise
suddenly and unforeseeably and materially affect the item insured necessitating repair or
replacement.

The property that is covered under this policy includes computers, radiation equipment and Communication facilities.

This policy is divided into 3 sections:

Section I – Material Damage

This section covers the loss o0r damage to the equipment from any sudden and unforeseen cause other
than those specifically excluded, in a manner necessitating repair or replacement.

The sums insured under this section should be equal to the cost of replacement of the insured items by new
items of the same kind and capacity.

The main exclusions are: –

  • Loss or damage directly or indirectly caused by or arising out of earthquake, volcanic eruption, hurricane etc.
  • Loss or damage caused by any faults or defects existing at the time of commencement of the policy within the knowledge of the insured or his representatives.
  • Any costs incurred in connection with the maintenance of the insured items.
  • Loss or damage caused by the failure or interruption of any gas water or electricity service or supply.
  • Any costs incurred in connection with the elimination of functional failures, unless such failures are caused by an indefinable loss of or damage to the insured items.
  • Loss or damage for which the manufacturer or supplier of the insured items is responsible either by law or under contract ( losses covered by warranty)
  • Consequential loss or liability of any kind.
  • Computer general loss
  • Terrorism exclusion
  • Political risks exclusion.
  • Losses falling within the policy excess.

Section II – External Data Media

Data Media Insurance provides cover for both the material value of the media and the costs of reprocessing and restoring lost information. The cause of loss or damage to the insured data media must be an accident indemnifiable under Section I of the policy.

The sum insured should be the material value of the insured data media plus the estimated data restoration costs and this will be fixed as the limit of indemnity for this extension.

The main policy exclusions include: –

  • Any costs arising from false programming punching, labelling or inserting inadvertent cancelling of information or discarding of data media, and from loss of information caused by magnetic fields.
  • Consequential loss of any kind or description.
  • Any loss falling within the policy excess.

Section III – Increased Cost of Working

This section provides indemnity in case of any material damage loss indemnifiable under Section I of the policy giving rise to a total or partial interruption of operation of the EDP equipment insured, the additional expenditure incurred for the use of substitute or hired EDP equipment not covered under the policy.

The sum insured should be an amount, which the insured would have to pay as additional expenditure for the 12 months use of substitute EDP equipment of similar performance to the EDP equipment insured. The expenses and costs for transportation of materials following upon any event giving rise to a claim under this section are also payable provided separate sums for these costs have been entered in the schedule.

The main exclusions include: –

  • Restrictions imposed by public authorities concerning the reconstruction or operation of the EDP equipment insured.
  • The necessary funds not being available to the insured in time for repairing or replacing damaged or destroyed equipment.
  • Any loss falling within the policy excess.

Premium Indication

Premium rates are variables and depends on the sum insured under all the sections.