Page 232 - Agriculture Policy Wording Binder

Deterioration of Stock (Machinery Breakdown)
DETERIORATION OF STOCK (MACHINERY BREAKDOWN)
DEFINED EVENTS
This insurance is in respect of:
1. fortuitous damage to the products and/or cold room(s) insured being the value of the insured products and/or cold room(s) affected as a direct consequence of the accident but not exceeding the limit of indemnity stated in the Schedule;
2. increase in the cost of working being the additional expenditure necessarily and reasonably incurred as a direct consequence of the accident (including costs incurred in obtaining alternative storage facilities for the insured products) wholly and exclusively incurred for the purpose of preventing or minimising damage to the insured products but not exceeding the amount that would otherwise have been indemnifiable under 1. above and the Company will not be responsible to more than R50 000 (fifty thousand rand) any one event;
PROVIDED THAT:
1. other than in the case of the accidental escape of refrigerant, accident shall cause a fluctuation in temperature in the cold room(s);
2. the Company shall have the benefit of any saving in expenditure as a result of the accident.
3. Additional cover may be purchased in which case the limit stated in the Schedule will be over and above the automatic cover provided.
DEFINITIONS
Accident
1. Unforeseen and sudden physical damage to the machinery described in the Schedule for this Section from any cause provided for by the Machinery Breakdown Section.
2. Failure of the public supply of electricity at the terminal ends of the supply authority's service feeders in the Insured's premises from any accidental cause other than:
2.1 the deliberate act of the Insured or any supply authority;
2.2 drought or shortage of fuel at any power station.
3. Damage to the insured products contained in the insured cold room(s) caused as a direct result of the accidental escape of refrigerant following unforeseen and sudden physical damage to the refrigeration machinery described in the Schedule of this Section.
Cold room
Damage
1. Insured products:
destruction or impairment in value of the insured products by deterioration or contamination or putrefaction or spoilage;
2. insured cold room(s):
contamination by refrigerant necessitating the evacuation of the cold room(s).
Value
1. The actual purchase price paid by the Insured to their supplier for the insured products or that part thereof affected by accident; or
2. the actual purchase price paid by the Insured to their supplier for the insured products or that part thereof affected by accident including the processing costs of such insured products prior to being placed in the cold room(s); or
3. the selling price of the insured products or that part thereof affected by accident in respect of insured cold room(s).
Is extended to include refrigeration chamber.
Page | 230 Policy Wording – Agriculture – Binder – Version 2 2023