Page 18 - Engineering Insurance IC 77 Ebook

The Insurance Times
DEDUCTIBLE FRANCHISE the loss potential in the particular type of machine
and its duty/rating.
From each and every claim insured is required to
share the loss upto the amount fixed as deductible
franchise. The purpose of deductible franchise is to 8. APS OF RISK
avoid small losses and administrative work. If 1. Damage to foundation of Machinery
deductible franchise selected is higher than normal, 2. Express freight, holiday rates, overtime
then certain discount is allowed to premium. charges in the event of claim.
Deductible franchise, however, is different for each 3. Third party Liability (including bodies
item of machine covered and is fixed considering injury and property damage.)

MACHINES PLACED ON DECLINED LIST machines only are insured and as such above
indectification details are a ‘must’ before
(TO BE ACCEPTED WITH SPECIFIC
agreeing to give cover. Full name plate details
APPROVAL OF RO/HO)
of the machines should form a part of the
1. Stone crushers. policy as well, and should be incorporated in
2. Rolling Mill-Stands, Pedestal Bearing etc. the inventory.
3. Raymond Mill 2. Every risk should be accepted after satisfactory
4. PVC lines, Rubber lined and such other lined inspection.
vessels. 3. While giving quotation to the proposer, only
5. Computers and other Electronic Equipments total annual premium for the entire schedule
(To underwrite with permission of Head (Office). should be furnished. Machinewise rate should
6. Domestic Refrigerators. not be made available to the proposer.
7. Radios, Tape Recorders, T.V. sets Electric and 4. In a case where there is a doubt as to
Electrical measuring instruments. acceptability in respect of any risk of machine,
the Regional Engineer’s guidance should be
8. Electronic Equipment in general.
sought and quotation worked out in
9. Any imported machinery which cannot be consultation with him.
repaired in the country.
5. Machines which are under erection or testing
10. Cupolas and Oil fired furnaces.
and commissioning should be insured only
11. Pumps with glass, graphite, rubber impellers. after successful commissioning.
12. Acid Pipe Lines. 6. Machinery, Equipments installed in Petro-
13. Room Airconditioners. Chemical Plants, Refineries and Fertilizer Plants
Room A.C. can be covered under M.B. Section should be accepted only after inspection.
only if the computer is covered under electronic 7. Critical machineries which are in operation for
equipment policy at the rate of 2.50%. more than 10 years like D.G/T.G. sets, turbines,
high pressure compressors, cement mill
equipments, ball mills rolling mill drive, furnace
GENERAL INSTRUCTION transformers, glass lined vessels, etc., should
be inspected before acceptance irrespective of
1. Before rating, it is necessary to collect full Sum Insured.
name plate details of the machine i.e. HP/KW/
PSI/KVA/RPM, manufacturer's name, type, 8. Items which are not specified in this Tariff
year of manufacture, Serial Number and such should be rated provisionally at minimum rate
other indentification details. In Engineering of 1.00% and a reference is to be made to
operational insurance Policies specific Head Office for obtaining final rate from TAC.

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