Machinery Breakdown Insurance

This kind of insurance means protection of property interests from losses occurring as a result of unexpected internal breakages of stationary machines and mechanisms, equipment and other installations.

 

Subjects of insurance are stationary machinery, devices, various mechanical installations of an insured party (owner, renter, and leaser), including:

 energy generating machinery
    (steam boilers, turbines, generators, engines and similar machines.);
 machinery and installation of energy distribution and transmission
    (transformer, high voltage boards, switches, electric transmission lines and others);
 auxiliary and subsidiary machines
    (various machine-tools, pumps, compressors and others).

Machinery is accepted for insurance on the term that they are ready for use, are in state of necessary fitness and have duly undergone trial and control tests.

According to the insurance policy considered as insurance risks are unforeseen and suddenly occurring damages or destruction of insured machinery and mechanisms (internal breakage) as a result of:

• Diffective design and structuring and;

• Error during manufacturing and installation;

• Moulding defects or defects of used materials;

• Unintentional errors during use and maintenance;

• Energy overcharges, overheats, vibration, jams, choking up with foreign objects, influences of centrifugal forces, material wear;

• Electricity effects such as electric currency circuit, electric network overcharge, voltage drop, atmosphere discharge (except lightning stroke) and other similar events;

• Hydraulic shock or shortage of liquid in boilers, steam generators, and other devices operated by steam or liquid;

• Blast of steam boilers (breakage into pieces of boiler walls resulting from gas or steam expansion), internal combustion engines, other sources of energy;

• Wind, frost, floating of ice;

• Breaking of ropes and chains, fall of insured objects, their collision with other objects and other reasons of accident nature.
  

The insurance amount, within which an insuring agent compensates for the losses of the insured party (beneficiary) upon occurrence of an insured event, must correspond to the insurance cost of the machinery and mechanisms, meaning that the cost of replacement of the insured machines and mechanisms with fully similar ones while taking into consideration their state of use and technical fitness.