Page 209 - Hollard Business Branch Policy Wording

Deteriora on 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) a ected 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 addi onal expenditure necessarily and reasonably incurred as a direct consequence of the accident (including costs incurred in obtaining alterna ve storage facili es for the insured products) wholly and exclusively incurred for the purpose of preven ng or minimising damage to the insured products but not exceeding the amount that would otherwise have been indemni able under 1. above and the Company will not be responsible to more than R50 000 ( y thousand Rand), any one event or the amount stated in the Schedule;
PROVIDED THAT:
2.1 other than in the case of the accidental escape of refrigerant, accident shall cause a uctua on in temperature in the cold room(s);
2.2 the Company shall have the bene t of any saving in expenditure as a result of the accident.
DEFINITIONS
Accident
1. Unforeseen and sudden physical damage to the machinery described in the Schedule for this Sec on from any cause provided for by the Machinery Breakdown Sec on.
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 sta on.
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 refrigera on machinery described in the Schedule of this Sec on.
Cold room
Is extended to include refrigera on chamber.
Damage
1. Insured products:
destruc on or impairment in value of the insured products by deteriora on or contamina on or putrefac on or spoilage;
2. insured cold room(s):
contamina on by refrigerant necessita ng the evacua on 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 a ected by accident; or
2. the actual purchase price paid by the Insured to their supplier for the insured products or that part thereof a ected 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 a ected by accident in respect of insured cold room(s).
Page | 208 Hollard Business Policy – Branch – Version 1 2018