Page 241 - Fire Insurance Ebook IC 57

The Insurance Times

Wherever applicable, the insurers are liable for the
cost of transporting the new machinery to the site
and the installation charge.

Wear and tear, rust, corrosion, and metal fatigue are
the common causes of deterioration in machinery.
Some machines have very short life span as more
efficient and improved machines are continuously
available, and so the factor of obsolence increases
the rate of depreciation.

The use of the machines also influence depreciation.
E.g, machines in a chemical plant have greater wear
and tear than those in a textile mill. Machines working
for longer hours have more wear and tear than the less
used ones, as the machinery parts get fatigued in the
former case. On the other hand, heavy machineries will
have less wear and tear than light, delicate machines.

Age, material used in making the machines also influence
the depreciation. Most importantly the care taken for
maintenance also affect the condition of a machine.

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