The document discusses various types of engineering insurance policies through the 3Ws framework - what the policy is, who can take the policy, and areas to be careful of. It covers boiler and pressure plant insurance, machinery insurance, electronic equipment insurance, machinery loss of profits insurance, and contractor's plant and equipment insurance. For each policy, it provides details on coverage, eligibility, documentation needs, and factors like sum insured amounts. The document aims to educate about different engineering insurance options available.

1. 1Presented by K. S. Burli
ABCsABCs
ofof
EngineeringEngineering
InsuranceInsurance
Through
3Ws3Ws

2. 2Presented by K. S. Burli
3Ws3Ws
1.1. WWHAT IS THIS POLICYHAT IS THIS POLICY
2.2. WWHO CAN TAKE THIS POLICYHO CAN TAKE THIS POLICY
3.3. WWHICH ARE THE AREASHICH ARE THE AREAS
INSURED NEED TO BE CAREFULINSURED NEED TO BE CAREFUL

3. 3Presented by K. S. Burli
Various Policies in EngineeringVarious Policies in Engineering
InsuranceInsurance
BOILER ANDBOILER AND
PRESSURE PLANTSPRESSURE PLANTS
MACHINERYMACHINERY
INSURANCEINSURANCE
MACHINERY LOSS OFMACHINERY LOSS OF
PROFITSPROFITS
CONTRACTORS PLANTCONTRACTORS PLANT
AND EQUIPMENTSAND EQUIPMENTS
ELECTRONICELECTRONIC
EQUIPMENTSEQUIPMENTS
DETERIORATION OFDETERIORATION OF
STOCKSSTOCKS

4. 4Presented by K. S. Burli
BOILER AND PRESSURE PLANTSBOILER AND PRESSURE PLANTS
 WHAT IS THIS POLICYWHAT IS THIS POLICY
 This is the first Engineering policy to come in to business of GeneralThis is the first Engineering policy to come in to business of General
Insurance.Insurance.
 The specialty of this policy is that there is no Excess (DeductibleThe specialty of this policy is that there is no Excess (Deductible
franchise) for this policy. All other Engineering Insurance policies havefranchise) for this policy. All other Engineering Insurance policies have
Excess.Excess.
 Policy covers explosion/implosion (Collapse). Policy, which is a legalPolicy covers explosion/implosion (Collapse). Policy, which is a legal
contract, defines what is explosion/implosion (Collapse). Hence there iscontract, defines what is explosion/implosion (Collapse). Hence there is
no room for arguing what is explosion/implosion (Collapse).no room for arguing what is explosion/implosion (Collapse).
 Exclusions clarify coverage.Exclusions clarify coverage.
 Policy can be extended to Third Party and surrounding property damage toPolicy can be extended to Third Party and surrounding property damage to
the specified selected limits.the specified selected limits.
 WHO CAN TAKE THIS POLICYWHO CAN TAKE THIS POLICY
 Any industrialist who has the boiler coming under the Boiler InspectoratesAny industrialist who has the boiler coming under the Boiler Inspectorates
act can cover his boiler, when Boiler Inspectorate certifies that the boileract can cover his boiler, when Boiler Inspectorate certifies that the boiler
is attended to by the qualified attendants.is attended to by the qualified attendants.
 WHICH ARE THE AREAS INSURED NEED TO BE CAREFULWHICH ARE THE AREAS INSURED NEED TO BE CAREFUL
 The Sum Insured should be the replacement value of the Boiler and itsThe Sum Insured should be the replacement value of the Boiler and its
accessories, otherwise Under insurance eats away the portion of theaccessories, otherwise Under insurance eats away the portion of the
claim.claim.
 Policy should be checked as to whether it is the same which they wantPolicy should be checked as to whether it is the same which they want
with proper extensions.with proper extensions.
 Documentations at the time of claimDocumentations at the time of claim has to be as per the policy andhas to be as per the policy and
surveyor’s requirementssurveyor’s requirements
 The Insured should discuss with the Insurer in case of any doubt on theThe Insured should discuss with the Insurer in case of any doubt on the
policy and should be aware of the scope, extent and the exclusions topolicy and should be aware of the scope, extent and the exclusions to
realize the effect of it economically.realize the effect of it economically.

5. 5Presented by K. S. Burli
MACHINERYMACHINERY INSURANCEINSURANCE
 WHAT IS THIS POLICYWHAT IS THIS POLICY
 This policy is for covering the sudden unforeseen physical damage to the equipments during rest, working,
overhauling and in the course of shifting at the premises specified by the Insured. (After proper erection and
testing of the equipments at the premises.)
 Premium rate is with EXCESS.
 INSURED CAN OPT OF HIGHER LOSSES. Insurance company encourages this by reducing the rates on an agreed
schedule discount slabs. To give an example; Rate for machine is 1% with an excess of 1% of Sum insured (SI),
the rate of 0.9% can be charged for an excess of 2% of SI or still further if Insured is prepared to bear higher
loss.
 Policy excludes mainly wear tear, (the repair or replacement of which is to the maintenances account) in
addition to normal exclusions.
 Coverage is made more EXPLICIT by exclusions
 Policy can be extended to cover Third party Liability & Surrounding property damage.
 WHO CAN TAKE THIS POLICYWHO CAN TAKE THIS POLICY
 Wide range of machineries by all the industrialists can take this policy. Industries have to identify those
machineries where the repair/replacement costs following the accidental damages costs more than the
policy excess chosen. Last five years trend will reflect the selection. INSURED HAS THE PREVILEDGE OF
CHOOSING THE MACHINES. They need not insure all machineries
 Insurance company INDEMNIFIES the loss, subject to average clause.
 WHICH ARE THE AREAS INSURED NEED TO BE CAREFULWHICH ARE THE AREAS INSURED NEED TO BE CAREFUL
 Sum Insured in MACHINERY POLICY has to be the REPLACEMENT COST, which is equals to the cost of the new
machine of the same type & capacity including transport, custom duty & erection charges at the time of
claim.
 Exclusion should be studied and the extent of cover has to be clearly understood
 Claim arises only in case of physical damage to the machine/equipment
 Photographs to show the physical damages to be taken
 Documents such as log book entries, invoices, bills, labour deployment details, expert opinions,
manufacturers views, surveyors opinions etc. to be preserved till claim settlement and produced to the
insurance company when called for.
 Cause & extent of damage is of vital importance in every claim settlement and hence the sequence of events
and the salvaged parts should be kept ready for assessment of surveyor ‘Without meddling with any R&D or
reuse of them till claim settlement is over.” it may adversely affect the claim otherwise.) Ref. case study of
MRL
 Full cooperation with surveyor to arrive at the cause and extent of damage will help arrive at the liability by
insurance company.

6. 6Presented by K. S. Burli
Electronic Equipment PolicyElectronic Equipment Policy
 WHAT IS THIS POLICYWHAT IS THIS POLICY
 With the introduction of Electronic Equipments in the Industrial
and Medical field, need to insure these things arose and the
comprehensive package policy to cover the risk of FIRE & Allied
perils plus the machinery breakdown perils is devised. This
package policy is EE or Electronic Equipment policy.
 It does not cover the inherent, internal and functional errors.
 WHO CAN TAKE THIS POLICYWHO CAN TAKE THIS POLICY
 All the electronic Data Processing equipments such as computers
of all kind, Electronic Equipments such as Electrocardiographs,
Electro medical equipments can be insured under this policy.
 WHICH ARE THE AREAS INSURED NEED TO BE CAREFULWHICH ARE THE AREAS INSURED NEED TO BE CAREFUL
 If the EE is covered under this policy, then the same value under
the Fire Policy can be deleted, as EE Policy covers the fire and
allied perils.
 The policy can include data media and also Increased cost of
working. Software can also be covered wherever it is available
off the shelf in the data media section.

7. 7Presented by K. S. Burli
MACHINERY LOSS OF PROFITS (MLOP)MACHINERY LOSS OF PROFITS (MLOP)
 WHAT IS THIS POLICYWHAT IS THIS POLICY
 The loss of Gross Profit (Net Profit + Standing Charges), GP can be covered against
Machinery Break down resulting in to the loss of GP. GP can be affected by the Break
down of any machinery in the line of production.
 Selection of the machinery is the discretion of the Insured. Only when the selected
machine gets affected the policy comes in to force.
 MLOP policy comes in to force, only when under the MB policy a claim is admissible.
 Claim under MLOP arises only when the machinery breakdown results in to the loss of
GP due to the time taken to repair or replace the damage to machine selected by the
Insured under MB policy.
 WHO CAN TAKE THIS POLICYWHO CAN TAKE THIS POLICY
 All the industries where GP is affected by the machinery breakdown
 There is a time exclusion similar to the excess in MB policy.
 Only when the time involved for repair or replacement of any critical machine in the
industry is significantly more than the TIME EXCESS chosen in the policy, such
machines alone can be taken for MLOP
 Policy can be taken on either Turn Over or Out put basis.
 WHICH ARE THE AREAS INSURED NEED TO BE CAREFULWHICH ARE THE AREAS INSURED NEED TO BE CAREFUL
 All the machines covered under MLOP should necessarily stand covered for MB.
 The selection of machineries should take in to account the Relative Importance (RI)
of each machine with GP and also the probable time required for the repair or
replacement in the worst possible event.
 INDEMNITY PERIOD has to be chosen with the longest time it takes for the worst of
the machinery breakdown possible among the chosen machineries.
 GP gets affected more if the time taken for Repair or Replacement is more. Thus it is
the game of time taken and not the material damage and the extent of it that has
affected the damaged machine.

8. 8Presented by K. S. Burli
CONTRACTOR’S PLANT AND EQUIPMENT POLICYCONTRACTOR’S PLANT AND EQUIPMENT POLICY
 WHAT IS THIS POLICYWHAT IS THIS POLICY
 CONTRACTOR’S PLANT AND EQUIPMENT/MACHINERIESCONTRACTOR’S PLANT AND EQUIPMENT/MACHINERIES
POLICY is for the machineries used for the contract jobsPOLICY is for the machineries used for the contract jobs
against the external damages. This is similar to the motoragainst the external damages. This is similar to the motor
policy with the coverage of toppling and the advantage ofpolicy with the coverage of toppling and the advantage of
full replacement in case of claim, unlike motor, wherefull replacement in case of claim, unlike motor, where
depreciation is applicable.depreciation is applicable.
 WHO CAN TAKE THIS POLICYWHO CAN TAKE THIS POLICY
 The contractors, principles & subcontractors
 WHICH ARE THE AREAS INSURED NEED TO BE CAREFULWHICH ARE THE AREAS INSURED NEED TO BE CAREFUL
 the above cover can be included in CAR, EAR, MCE Policy if
sum insured is less than 5% of the total project cost.
 These machineries should not be allowed on public roads.

9. 9Presented by K. S. Burli
THANK YOU.

10. 9Presented by K. S. Burli
THANK YOU.