Page 202 - Hollard Business Branch Policy Wording

Machinery Breakdown
DEFINED EVENTS
MACHINERY BREAKDOWN
Any unforeseen and sudden physical damage to the machinery described in the Schedule from any cause not excluded whilst it is:
1. at work or at rest;
2. being dismantled for the purpose of cleaning, inspec on and overhaul or removal to another posi on or in the course of these opera ons themselves or subsequent re-erec on within the Insured's premises.
BASIS OF INDEMNITY
Irrespec ve of the original cause the amount payable by the Company shall be determined by:
1. Sum insured
It is expressly agreed between the Insured and the Company that at all mes the sum insured for each item of machinery shall be the new replacement value including freight dues, customs du es and erec on costs.
2. Underinsurance
If the sum insured on any item of machinery at the me of the loss is less than the new replacement value including freight dues, customs du es and erec on costs, the Insured shall be considered to be their own insurer for the di erence and shall bear a rateable propor on of the loss accordingly.
3. Par al damage
Where the machinery can be repaired the Company will pay the reasonable costs of restoring it to working order based on the customary rates of wages in the district and normal freight and erec on costs and customs du es.
4. Total loss
If the cost of repairs as described in 1 above equals or exceeds the actual value of the machinery immediately before the occurrence such machinery shall be regarded as a total loss and the Company will pay the actual value of the machinery immediately before the occurrence which shall be calculated as the new replacement value.
5. Repair, reinstate or replace
The Company may at its op on repair, reinstate or replace any damaged machinery or pay the amount of the damage in cash.
SPECIFIC EXCEPTIONS
The Company will not be liable to pay for:
1. the amount speci ed in the Schedule as the First Amount Payable by the Insured for each and every occurrence;
2. damage due to:
2.1 re, lightning and explosion: re, ex nguishing of a re, direct lightning strikes, explosion;
2.2 the , collapse, impact and sonic waves:
the , collapse of buildings, impact by animals, vehicles, aircra , other aerial devices or objects dropped therefrom, sonic shock waves;
2.3 water that escapes from water containing apparatus including leakage or discharge from any sprinkler or drencher system;
2.4 subsidence, landslide, storm, ood inunda on, hail, snow, earthquake, volcanic erup on or other convulsions of nature or any subsequent dismantling;
Hollard Business Policy – Branch – Version 1 2018 Page | 201