Fire Insurance Clauses for Machineries (Part 2)

In my earlier postings on Fire Insurance Clauses, I mentioned that there are numbers of Clauses that can be applied to the plant and machineries to be insured. Amongst the many includes:

Electrical Installation Clause B (as a buy back cover for damage to machinery arising from excessive running or over heating process). Additional rate of 0.056% is charged.

Hire Purchase / Leasing (protects the financial interest of the financer against loss or damage on the subject charged to the banks/leased by Insured)

Internal Removal Clause (includes claim for any items that had been moved from one insured premises to another insured premises within the territorial limits but indvertently not advised to the Insurer). Pro-rata premium is charged for the omitted items)

Temporary Removal Clause (includes claim for any loss or damage to the machinery whilst under repair, maintenance or servicing work at any other premises within the territorial limits)

Computer Systems Records Clause (includes claim for the value of materials together with clerical labour and computer time expended in reproducing such records and not for the value of the information therein)

Removal of Debris Clause (cost incurred to remove the debris in order for reinstatement work to proceed). Can insure separately or incorporate as part of the sum insured.

Capital Addition Clause with minimum SI of RM1.5m   )
Designation Clause                                                    ) simiar application as explained
Automatic Hold Cover for new locations Clause       ) under the Clauses for building
Appraisement Clause                                                 )
Reinstatement Value Clause (up to 5 years old)       )
Market Value & Escalation Clause                     )
(older machines) )


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