This policy provides indemnity for sudden and unforeseen physical loss or damage, necessitating its repair or replacement and resulting from:
- Fortuitous working accidents such as maladjustment, 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
- Over-pressure or implosion
- short circuit, over-voltage or over-current
- Defects or faults in design, material or manufacturing and faults in erection
- Faulty operation, lack of skill, carelessness, malevolence of employees
This policy is appropriate for heavy machinery that is prone to breakdown such as boilers, lifts, Generators, Cinema Equipment, Refrigeration Equipment and Laundry Equipment.
The sum insured should be equal to the cost of replacement of the insured machinery and plant by new
machinery of the same specifications and same capacity including all freight costs to site, erection costs
and customs duties and other dues.
The main exclusions are: –
- Corrosion, erosion, wasting or wearing of any part of machinery caused by ordinary use of working and any other continuos chemical or atmospheric influence, undue deposits of rust., mud, boiler scale or other deposits
- Breakdown caused by test, intentional overloading or experiments involving the imposition of abnormal conditions
- Fire, explosion, lightining, whether direct or indirect, extinguishing of fire, subsequent demolition, dismantling and clearance of debris
- Earthquake, seaquake, tsunami, subsidence, landslide, rockfall, flood, inundation, hurricane, typhoon, cyclone, volcanic eruption
- Theft, burglary
- Any faults or defects existing at the time of commencement of the present insurance within the knowledge of the Insured or its management
- Loss or damage for which the manufacturer or supplier of the property is responsible either by law or under contractual obligations
- Consequential loss, damage or liability of any nature
- War, invasion, act of foreign enemy, hostilities or war-like operations (whether war be
- declared or not), civil war, civil commotion, mutiny, military or popular rising,
- insurrection, rebellion, revolution, military or usurped power.
- Acts of terrorism committed by a person or persons acting on behalf of or in connection with any organisation.
In view of the sums insured, this risk may be be categorized as a listed risk and the premium rate
would Have to be communicated by the Association of Kenya Insurers however in normal circumstances the premium rate depends on the nature of the Machines.