Machinery Loss of Profit Insurance

Machinery Loss of Profit Insurance is an expansion of Machinery Breakdown / Boiler and Pressure Plant Insurance policy. It follows the fortune of the material damage policy as per the material damage provisions.

It is essential for a Machinery Loss of Profit Policy to possess a material damage policy in influence during the occurrence of the damage protecting 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 the cessation of business as a consequence of insured perils
• Standing charges which accumulate despite the cessation of business
• Additional expenses sustained to maintain the regular business processes during the period when the business is affected

The above list is not exhaustive. Please read the policy wordings. for a detailed list of inclusions and other details.

Any resulting loss arising out of causes excluded by the Machinery Breakdown or Boiler & Pressure Plant Insurance Policy is not covered by the Machinery Loss of Profit insurance policy.

Under the Machinery Loss of Profit insurance policy, the company cannot be accounted for any loss arising due to direct or indirect interference attributable to causes like

• Deliberate act or neglect or gross negligence of the Insured or his responsible representatives
• Damage or loss to the machinery or other items not mentioned in the list of machinery insured though the consequence of material damage to an indicated item in the list of insured machinery is included
• Damage or loss resulting from defects existing at the time of start of this insurance in the knowledge of the Insured or his responsible representatives whether such defects were known to the Company or not
• Destruction, Shortage, decline and spoilage of or damage to raw materials, finished or semi-finished products or catalyst or operating media (such as fuel, refrigerant, lubricating oil, heating media etc.) although the result of material damage to an item indicated in the list of insured machinery is included.
• 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.
• Changes, enhancements 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 -
  • Nuclear reaction, nuclear radiation or radioactive contamination
  • Invasion, War, Act of foreign enemy, hostilities or War like operations (whether war be declared or not), Rebellion, Civil War, Revolution, Mutiny, Strike, Insurrection, Lockout, Riot and Malicious Damage, Military or usurped power Civil Commotion, martial law, confiscation, conspiracy, 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.

The above list is not exhaustive. Please read the policy wordings. for a detailed list of inclusions and other details.