You can make use of this policy if you have a material damage policy in place, either Machinery Breakdown or Boiler & Pressure Plant Insurance policy.
To understand eligibility better, please read the
Machinery Loss of Profit Insurance is an extension of Machinery Breakdown / Boiler and Pressure Plant Insurance policy. It follows the fortune of the material damage policy as per the material damage provisons.
It is a pre-requisite for a Machinery Loss of Profit policy to have a material damage policy in force at the time of happening of the damage covering the interest of the insured in the property at the premises against such damage.
The Machinery Loss of Profit policy will pay for the following:
- Loss of net profit due to stoppage of business as a result of insured perils
- Standing charges which continue to accrue in spite of stoppage of business
- Additional expenditure you incur to maintain normal business activity during the period in which your business is affected
This is not an exhaustive list. For a detailed list of inclusions & other details, please read the
The Machinery Loss of Profit insurance policy does not cover any consequential loss due to causes excluded by our Machinery Breakdown or Boiler & Pressure Plant Insurance policy.
The Company shall not be liable under the Machinery Loss of Profit insurance policy for any loss resulting from interruption of or interference with the business directly or indirectly attributable to any of the following causes
- Willful act or willful neglect or gross negligence of the Insured or his responsible representatives.
- Loss or damage to machinery or other items which are not listed in the list of machinery insured even if the consequence of material damage to an item indicated in the list of machinery insured is involved.
- Loss or damage caused by any faults or defects existing at the time of commencement of this insurance within the knowledge of the Insured or his responsible representatives whether such faults or defects were known to the Company or not.
- Shortage, destruction, deterioration and spoilage of or damage to raw materials, semi finished or finished products or catalyst or operating media (such as fuel, lubricating oil, refrigerant, heating media and the like) even if the consequence of material damage to an item indicated in the list of machinery insured is involved.
- Any restrictions on reconstruction or operation imposed by any public authority.
- An extension of the normal repair period for more than 4 weeks on account of –
- The inability to secure or delays in securing replacement parts, machines or technical services.
- The inability to carry or delays in carrying out repairs.
- The prohibition to operate the machinery due to import and/or export customs & other restrictions or by statutory regulations.
- Transport of parts to and from the Insured’s premises.
- Alterations improvements or overhauls being made while repairs or replacements of damaged or destroyed property are being carried out.
- Loss damage and/or liability caused by or arising from or in consequence directly or indirectly of –
- War, Invasion, Act of foreign enemy, hostilities or War like operations (whether war be declared or not), Civil War, Rebellion, Revolution, Insurrection, Mutiny, Riot, Strike, Lockout and Malicious Damage, Civil Commotion, Military or usurped power, martial law, conspiracy, confiscation, commandeering a group of malicious person or persons acting on behalf of or in connection with any political organization, requisition or destruction or damage by order of any government de jure or de facto or by any public. Municipal or Local Authority, an act of terrorism or the action of any lawfully constituted authority in suppressing or attempting to suppress or minimize the consequences thereof.
- Nuclear reaction, nuclear radiation or radioactive contamination.
This is not an exhaustive list. For a detailed list of exclusions & other details, please read the policy wordings.