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BACKGROUND

• ENGINEERING INSURANCE ORIGINATED IN


U.K.IN THE MIDDLE OF THE 19th CENTURY
WITH INSURANCE AGAINST BOILER
EXPLOSION RISKS
• OTHER INSURANCES LIKE MACHINERY
BREAKDOWN /DOS/ PROJECT INSURANCES
BECAME POPULAR WITH THE GROWTH OF
INDUSTRIALISATION

• TWO BROAD GROUPS-


4. CONSTRUCTION PHASE COVERS
5. OPERATIONAL PHASE COVERS
CONSTRUCTION PHASE

PROJECT COVERS
I. MATERIAL DAMAGE (MD)
A) CONTRACTORS ALL RISK (CAR)
B)ERECTION ALL RISKS (EAR)
STORAGE CUM ERECTION (SCE)
C)MARINE CUM ERECTION (MCE)

II. BUSINESS INTERRUPTION


A) ADVANCE LOSS OF PROFIT(ALOP)
FOLLOWING LOSS OR DAMAGE
PROPERTY UNDER EAR/CAR
OPERATIONAL PHASE
OPERATIONAL PHASE-
OPERATIONAL COVERS
I. MATERIAL DAMAGER(M.D.)
A. I) MACHINERY INSURANCE
II) BOILER AND PRESSURE PLANT
(BPP)
III) ELECTRONIC EQUIPMENT
INSURANCE (EEI)
F. CONTRACTOR’S PLANT MACHIENRY
(CPM)
G. CIVIL ENGINEERING COMPLETED
RISKS(CECR)INSURANCE
OPERATIONAL PHASE COVERS…
contd

D. DETERIORATION OF STOCK (DOS)

II. BUSINES INTERRUPTION=LOP


•MACHINERY LOSS OF PROFIT (MLOP)
FOLLOWING MATERIAL DAMAGE
UNDER M.B.POLICY
•BPPLOP FOLLOWING
EXPLOSION/IMPLOSION DAMAGE TO
BOILER/PRESSURE VESSEL
CONTRACTOR’S ALL RISK POLICY
(CAR)
PURPOSE
2. TO PROTECT THE INTEREST OF
• CONTRACTORS
• PRINCIPALS
• FINANCIERS
2. POLICY IDEALLY SUITED FOR CIVIL
ENGINEERING PROJECTS LIKE
MULTISTORIED BUILDINGS/ BRIDGES /FLYOVERS
/DAMS/ ROADS/ CANALS/ SILOS/TUNNELS etc.—
VALUE OF CIVIL WORKS SHOULD BE MORE THAN
50%
CAR POLICY- PERILS COVERED

• SECTION –I (MATERIAL DAMAGE)


ALL RISK COVER (ALL RISKS OTHER
THAN EXCLUSIONS) THIS MEANS
THAT ALMOST ANY SUDDEN AND
UNFORESEEN LOSS OR DAMAGE WILL
BE COVERED INCLUDING-
• ACCIDENTAL LOSSES LIKE COLLAPSE,
IMPACT FIRE ,LIGHTNING, EXPLOSION
• AOG PERILS LIKE STFI GROUP,
EARTHQUAKE, LANDSLIDE/ROCKSLIDE
• HUMAN PERILS LIKE THEFT / BURGLARY,
BAD WORKMANSHIP,LACK OF SKILL,
NEGLIGENCE, MALICIOUS ACTS , HUMAN
CAR POLICY- PERILS COVERED ..contd

EXCLUSIONS UNDER SECTION I


•EXCESS
•NORMAL WEAR AND TEAR,RUSTING
•CORRECTION OF ANY ERROR UNLESS
RESULTING IN PHYSICAL DAMAGE/LOSS
•FILES/DRAWINGS/CURRENCY,CHEQUES
•PACKING MATERIAL
•PENALTIES UNDER CONTRACT
CONDITIONS
•VEHICLES LICENSED FOR ROAD USE
•LOSS/DAMAGE DUE TO FAULTY DESIGN
•SECTION-II (THIRD PARTY LIABILITY)
CAR POLICY -SUM INSURED
SUM INSURED
ESTIMATED COMPLETELY ERECTED VALUE OF
THE CONTRACT WORKS INCLUSIVE OF
•WAGES
•MATERIALS
•COST OF CONSTRUCTION
•FREIGHT
•CUSTOM DUTY
•TAXES
• ITEMS SUPPLIED BY PRINCIPAL
SUM INSURED IS ADJUSTABLE ON COMPLETION OF
CONSTRUCTION ON THE BASIS OF ACTUAL VALUES IN
RESPECT OF CONSTRUCTION COST,FREIGHT CUSTOM DUTIES
(INCREASE/DECREASE IN PRIME COST OF MATERIAL NOT TO
BE TAKEN INTO ACCOUNT)
CAR POLICY-OTHER IMPORTANT
PROVISIONS

• POLICY PERIOD -COMMENCEMENT OF WORK OR


AFTER THE UNLOADING OF THE FIRST
CONSIGNMENT AT THE SITE--WHICHEVER IS
EARLIER. THE COVER EXPIRES ON COMPLETION
OF THE PROJECT/COMPLETED PART BEING TAKEN
OVER OR PUT INTO OPERATION BY PRINCIPAL/THE
DATE SPECIFIED IN THE POLICY --- WHICHEVER IS
EARLIER.
• COVER FOR CONSTRUCTION PLANT MACHINERY-
CONSTRUCTION PLANT& MACHINERY CAN BE
COVERED WHERE S/I FOR CPM DOES NOT EXCEED
5% OF CAR S/I
•SURROUNDING PROPERTY-SEPARATE S/I TO BE
CAR POLICY-OTHER IMPORTANT
PROVISIONS..…contd
❂ REMOVAL OF DEBRIS
❂ MAINTENANCE COVER-TWO TYPES
3. LIMITED MAINTENANCE-LOSS/DAMAGE TO
COTRACT WORKS CAUSED BY CONTRACTOR
DUE TO OPERATIONS CARRIED OUT FOR
COMPLYING WITH MAINTENANCE
PROVISIONS OF THE CONTRACT
4. EXTENDED MAINTENANCE-AS ABOVE PLUS
LOSS/DAMAGE DURING MAINTENANCE
PERIOD CAUSED BY FAULT/PERIL INSURED
DURING THE CONSTRUCTION PERIOD
❂ ADDITIONAL EXPENSES FOR OVERTIME/
EXPRESS FREIGHT/AIR FREIGHT
❂ COVER FOR ADDITIONAL CUSTOMS DUTY
ERECTION ALL RISK POLICY
• WHEREAS CAR POLICY IS CONCERNED WITH
CIVIL ENGINEERING WORKS,EAR OR SCE
(STORAGE –CUM- ERECTION) IS CONCERNED WITH
INDUSTRIES AND DEALS WITH ERECTION OF
PLANT AND MACHINERY/ EQUIPMENT AND
STRUCTURES WHERE THE COST OF CIVIL WORKS
DOES NOT EXCEED 5%OF THE PROJECT COST.
•POLICY MAY BE ISSUED IN THE JOINT NAMES OF
PRINCIPALS/CONTRACTORS /FINANCIERS IN
RESPECT OF THE ENTIRE PROJECT OR PART
THEREOF AS PER CONTRACT SPECIFICATIONS.
•COVERAGE—ALL RISK COVER ON THE LINES OF
CAR POLICY
SCOPE OF EAR POLICY

• SUM INSURED=COMPLETELY ERECTED


VALUE OF PROJECT INCLUDING
FREIGHT, COST OF ERECTION etc.
• POLICY PROVIDES FOR-
3. PREMIUM ADJUSTMENT
4. CPM COVER
5. SURROUNDING PROPERTY
6. REMOVAL OF DEBRIS
7. THIRD PARTY LIABILITY
8. MAINTENANCE COVER
……ON THE LINES OF CAR POLICY
SCOPE OF EAR POLICY…contd

POLICY PERIOD
• POLICY WILL COMMENCE FROM THE TIME OF
UNLOADING OF THE FIRST CONSIGNMENT AT
THE SITE AND CONTINUES DURING THE
STORAGE/ERECTION / TEST OPERATION OR
TEST LOADING /TRIAL RUNNING etc. AND EXPIRE
AFTER COMPLETION OF THE PROJECT/HANDING
OVER TO THE PRINCIPALS OR THE DATE
SPECIFIED IN THE POLICY WHICHEVER IS
EARLIER. ONE MONTH TESTING IS INBUILT
UNDER THE POLICY
• REFUND OF PREMIUM ALLOWED FOR EARLY
COMPLETION SUBJECT TO TERMS/CONDITIONS
MARINE-CUM-ERECTION POLICY

• MCE POLICY PROVIDES MARINE ALL RISK


COVER IN CONJUNCTION WITH EAR POLICY
• POLICY PERIOD-COMMENCES WITH THE
DISPATCH OF THE FIRST CONSIGNMENT TO
THE PROJECT SITE. A SEPARATE MARINE
TRANSIT POLICY FOR IMPORTED AND
INDIGENEOUS EQUIPMENTS /PROJECT
MATERIAL ON ALL RISK PLUS WAR/SRCC
TERMS IS ISSUED IN CONJUNCTION WITH THE
EAR/SCE POLICY.
•FABRICATOR’S WORKS EXTENTION-COVERS PROJECT
MATERIAL AGAINST TO-AND –FRO TRANSIT RISKS AND
STORAGE RISKS AT FABRICATOR’S PREMISES
MACHINERY INSURANCE POLICY
PROPERTY TO BE COVERED-
•BOILERS/PRESSURE PLANTS WITH
AUXILLARIES
• ELECTRICAL EQIPMENTS LIKE
ALTERNATORS/GENERATORS/MOTORS/
RECTIFIERS/SWITCHGEAR/TRANFORMERS
• MECHANICAL PLANT/ MACHINERY
INCLUDING ENGINES/ PUMPS/ PROCESS
MACHINERY/BLOWERS/COMPRESSORS
/REFRIGERATION PLANT/TURBINES
/MACHINE TOOLS AND PRESSES
•LIFTING EQUIPMENTS LIKE LIFTS ,
HOISTS, CRANES,CONVEYORS
MACHINERY INSURANCE POLICY
POLICY COVERAGE –
UNFORSEEN AND SUDDEN PHYSICAL LOSS
OR DAMAGE BY ANY CAUSE (OTHER
THAN EXCLUSIONS) TO THE INSURED
PROPERTY-
3. WHILE IT IS AT WORK OR AT REST OR
4. WHILE BEING DISMANTLED FOR CLEANING OR
OVERHAULING OR
5. DURING CLEANING OR OVERHAULING
6. DURING SUBSEQUENT ERECTION/ REASSEMBLY
OR
5. WHILE BEING SHIFTED WITHIN THE INSURED
PREMISES
MACHINERY INSURANCE POLICY…
contd

LOSS PRODUCING EVENTS COULD BE-


• ELECTRICAL eg. Short circuit,arcing,failure of
insulation, malfunctioning of control circuits etc.
•MECHANICAL eg.faulty material/ casting,
vibrations, maladjustments,loosening of parts,
abnormal stress, centrfugal forces, defective
lubrication, failure of protective devices etc.
•EXTERNAL/ACCIDENTAL eg.entry of foreign
body,impact,collision etc.
•SUM INSURED=CURRENT NEW REPLACEMENT
VALUE INCLUDING TRANSPORTATION TO
SITE/DUTY/ERECTION OR INSTALLATION COST
MACHINERY INSURANCE POLICY…
contd
❂ IMPORTANT EXCLUSIONS-
2. FIRE AND SPECIAL PERILS
3. LOSS/DAMAGE DUO TO OVERLOAD TESTS OR
EXPERIMENTS
4. WASTAGE OF MATERIAL /WEARING OUT OF
ANY PART DUE TO GRADUAL
DETERIORATION /USAGE OR WORKING
5. WAR AND WARLIKE PERILS/NUCLEAR
PERILS/CONSEQUENTIAL LOSSES
6. MANUFACTURING DEFECTS
7. WILFUL ACT/GROSS NEGLIGENCE OF THE
INSURED
8. DAMAGE TO EXCHANGEABLE PARTS TOOLS
SUCH AS BLADES/CUTTERS /KNIVES etc.
CONTRACTORS PLANT & MACHINERY
(CPM) POLICY

• PROPERTY COVERED- CONTRACTORES


PLANT AND MACHINERY LIKE PILE
DRIVING EQUIPMENT,
EXCAVATORS,COMPRESSORS,CRANES,
MIXING PLANTS,STONE CRUSHERS,
BULLDOZERS
• CPM CAN BE INSURED UNDER CAR/EAR
POLICY AS AN ADDITIONAL ITEM IF THE
SUM INSURED OF CPM IS 5% OF TOTAL
SUM INSURED OF CAR /EAR PROJECT
SUBJECT TO MAXIMUM OF RS.25 LACS
CONTRACTORS PLANT &
MACHINERY POLICY Contd..

PERILS COVERED
UNFORSEEN AND SUDDEN PHYSICAL
LOSS /DAMAGE FROM ANY CAUSE
INCLUDING -
a) BURGLARY ,THEFT,RIOT & STRIKE ,
MALICIOUS DAMAGE AND TERRORISM
b) FIRE & LIGHTNING, EXTERNAL
EXPLOSION, EARTHQUAKE, FLOOD,
INUNDATION, SUBSIDENCE, LANDSLIDE
AND ROCKSLIDE.
CONTRACTORS PLANT & MACHINERY
(CPM) POLICY Contd..

PERILS COVERED…contd
c) STORM,TEMPEST, HURRICANE,
TYPHOON AND TORNADO
d) ACCIDENTAL DAMAGE DUE TO MAN
HANDLING, DROPPING OR FALLING,
COLLAPSE , COLLISION AND IMPACT
SUM INSURED=CURRENT NEW
REPLACEMENT VALUE INCLUDING
TRANSPORTATION COSTS/CUSTOM
DUTY/ERECTION OR INSTALLATION
COSTS
CONTRACTORS PLANT & MACHINERY
(CPM) POLICY Contd..

• SCOPE OF COVER: THE CPM IS


COVERED
•A)WHILE IT IS AT WORK OR AT REST
B) WHILE BEING DISMANTLED FOR
CLEANING OR OVERHAULING OR
C) REASSEMBLING THEREAFTER
• THE MACHINERY IS COVERED WHILE
THE SAME IS LYING AT CONTRACTOR’S
OWN PREMISES OR AT THE VARIOUS
SITES/ LOCATIONS .TRANSIT RISKS FROM
ONE SITE TO ANOTHER ARE NOT
COVERED
CONT RACT ORS PL ANT & MA CH INERY
(CP M) P OLI CY
Cont d. .
❂ PRINCIPAL EXCLUSIONS-
2. ELECTRICAL/MECHANICAL BREAKDOWN
3. WAR AND WARLIKE PERILS/NUCLEAR RISKS
4. WILFUL ACT/WILFUL NEGLIGENCE OF
INSURED/REPRESENTATIVE
5. OVERLOAD TESTS/EXPERIMENTS
6. EXCHANGEABLE PARTS /TOOLS
7. TOTAL/PARTIAL IMMERSION IN TIDAL
WATERS OR WHILST WORKING
UNDERGROUND
8. EXCESS
❂ POLICY EXTENTIONS—
10. T.P.LIABILITY
11. SURROUNDING PROPERTY/DEBRIS REMOVAL
12. OVERTIME WAGES /EXPRESS FREIGHT
BOILER & PRESSURE PLANT POLICY

• BOILERS GENERATE STEAM WHICH


IS USED IN VARIOUS PROCESSES IN
INDUSTRIES.STEAM IS ALSO USED IN
THERMAL POWER PLANTS TO DRIVE
THE TURBINES.
• PROPERTY COVERED-
BOILERS /ECONOMISERS/SUPER HEATERS/
STEAM PIPES/ PRESSURE VESSELS /OTHER
VESSELS UNDER STEAM GAS OR AIR
PRESSURE
BOILER & PRESSURE PLANT
POLICY…contd
PERILS COVERED-POLICY COVERS
EXPLOSION OR COLLAPSE OF THE
INSURED BOILER/PRESSUER VESSEL
RESULTING IN:
3. DAMAGE TO BOILER/PRESSURE PLANT
4. DAMAGE TO SURROUNDING PROPERTY
OF THE INSURED
5. LIABILITY TO THIRD PARTY
POLICY ALSO COVERS EXPLOSION CAUSED BY IGNITION OF
FLUE GASES
MAJOR SXCLUSIONS-FIRE AND SPECIAL PERILS,WAR AND
NUCEAR PERILS,EXTERNAL EXPLOSION
BOILER & PRESSURE PLANT
POLICY…contd

• SUM INSURED=CURRENT NEW


REPLACEMENT VALUE INCLUSIVE OF
FREIGHT/CUSTOMS DUTY/ERECTION
COST
• DEFINITIONS-
• BOILER-ANY FIRED CLOSED VESSEL/COMBINED
CONTAINER PIPING SYSTEM IN WHICH STEAM
IS GENERATED UNDER PRESSURE
• PRESSURE PLANT-ANY UNFIRED CLOSED
CONTAINER UNDER STEAM/GAS/FLUID
PRESSURE
MACHINERY LOSS OF PROFIT POLICY(MLOP ) AND
BOILER/PRESSURE PLANT LOSS OF PROFIT
(BPPLOP)

• POLICY COVERS BUSINESS INTERRUPTION


LOSSES CONSEQUENTIAL UPON MATERIAL
DAMAGE AS DEFINED IN THE RESPECTIVE
POLICIES
• POLICY PROVIDES INDEMNITY AGAINST-
3. LOSS OF NET PROFIT
4. LOSS OF INSURED STANDING CHARGES
5. INCREASED COST OF WORKING
…ON THE LINES OF FIRE LOP.HOWEVER,UNLIKE
FIRE LOP,THE INSURED CAN SELECT THE KEY
ITEMS OF PLANT/ MACHINERY FOR M.D.+LOP
ADVANCED LOSS OF PROFIT(ALOP)

ALOP IS ALSO KNOWN AS DELAY IN START-UP


SCOPE OF COVER
• POLICY COVERS FINANCIAL CONSEQUENCES
OF A PROJECT BEING DELAYED BECAUSE OF
ACCIDENTAL DAMAGE TO THE PROJECT
MATERIAL DURING ERECTION/TESTING STAGES.
• IT FOLLOWS IN PRINCIPLE THE
CHARACTERISTICS OF AN ANNUAL
CONSEQUENTIAL LOSS POLICY, BUT IS ISSUED IN
ADVANCE OF THE ACTUAL COMMENCEMENT OF
THE BUSINESS SINCE IT IS A COMPULSION FROM
THE FINANCERS OF THE PROJECT
ADVANCED LOSS OF PROFIT(ALOP)…contd.

OBJECT OF ALOP-
• INDEMNIFY THE PRINCIPAL OR THE PROJECT
OWNER FOR THE ACTUAL FINANCIAL LOSS
SUSTAINED DUE TO DELAY IN COMMENCEMENT
OF COMMERCIAL OPERATIONS OF A NEW
PROJECT WHICH IS UNDER INSTALLATION/
CONSTRUCTION
• DELAY MUST BE CAUSED BY DIRECT PHYSICAL
LOSS OR DAMAGE ADMISSIBLE UNDER
MATERIAL DAMAGE CAR/EAR POLICIES
COVERING THE CONTRACT WORKS
•SUM INSURED IS COMPUTED ON THE BASIS OF
THE FINANCIAL MODEL OF THE PROJECT
DETERIORATION OF STOCK POLICY
(DOS)
THE POLICY IS KNOWN AS -
1. DETERIORATION OF STOCK INSURANCE OR
2. STOCK SPOILAGE INSURANCE
SCOPE- THIS IS A FORM OF CONSEQUENTIAL LOSS
FOR STOCKS CONTAINED IN LARGE COLD
STORAGES
• THE INSURANCE COVER IS AGAINST THE RISK
OF DETERIORATION/PUTREFACTION AND/OR
CONTAMINATION FOLLOWING BREAKDOWN OF
REFRIGERATION PLANT/MACHINERY,A CLAIM
FOR WHICH IS ADMISSIBLE UNDER THE
CONCURRENT MACHINERY INSURANCE POLICY
DETERIORATION OF STOCK POLICY
…contd.
TWO TYPES OF POLICIES-
1. POTATOES IN COLD STORAGE
2. OTHER THAN POTATOES IN COLD STORAGE
Eg. SEA FOODS LIKE FISH /PRAWNS/FROG LEGS ,
DAIRY PRODUCTS LIKE CHEESE/BUTTER,
FRUITS,VEGETABLES AND FOOD ITEMS
• INSURANCE COVER APPLIES TO
DETERIORATION OF CONTENTS CAUSED BY A
RISE IN TEMPERATURE DUE TO MATERIAL
DAMAGE TO REFRIGERATION PLANT OR
ACTION OF REFRIGERANT ESCAPING FROM THE
PLANT
•POLICY MAY BE EXTENDED TO COVER FOES
ELECTRONIC EQUIPMENT POLICY

THE POLICY IS SPECIFICALLY DESIGNED FOR


ELECTRONIC EQIUPMENTS LIKE-
•COMPUTORS INCLUDING CPU/KEYBOARD/ MONITOR/
PRINTER/STABILIZER/UPS/SERVER/SYSTEMS SOFTWARE
•ELECTRONIC DATA PROCESING (EDP) EQUIPMENT
•ELCTRO-MEDICAL EQUIPMENT
•EQUIPMENT FOR RESEARCH AND MATERIAL TESTING
•TELECOMMUNICATION AND NAVIGATIONAL
EQUIPMENT
•COMPUTER SYSTEM FOR PRODUCTION PLANT AND
MACHINERY

•SIGNAL AND TRANSMITTING UNITS ETC.


ELECTRONIC EQUIPMENT POLICY…contd

• THE POLICY WILL APPLY ONLY AFTER SUCCESSFUL


COMPLETION OF THE PERFORMANCE/ ACCEPTANCE TEST
OF THE INSURED ITEMS AND COVER WILL CONTINUE
WHETHER THEY ARE WORKING,AT REST,DISMANTLED
FOR CLEANING/OVERHAULING,SUBSEQURNT RE-
ERECTION OR BEING SHIFTED WITHIN THE PREMISES.

• SCOPE OF COVER
•POLICY COMPRISES THREE SECTIONS
•SECTION I-- COVERS ANY SUDDEN AND UNFORESEEN
PHYSICAL LOSS/DAMAGE DUE TO ANY CAUSE(OTHER
THAN THOSE SPCIFICALLY EXCLUDED).THUS,THE COVER
IS ALL RISK AND INCLUDES LOCATION/OPERATIONAL/
AOG/HUMAN ELEMENT RISKS.
•SUM INSURED UNDER SECTION I=CNRV
ELECTRONIC EQUIPMENT POLICY…contd

SPECIAL EXCLUSIONS TO SECTION I-


• FAULTS OR DEFECTS EXISTING AT THE TIME OF
COMMENCEMENTS OF THE INSURANCE
• FAILURE OR INTERRUPTION OF ANY GAS , WATER
OR ELECTRICITY SUPPLY.
•LOSS OR DAMAGE FOR WHICH THE
MANUFACTURERS OR SUPPLIERS ARE
RESPONSIBLE BY LAW OR UNDER CONTRACT
•LOSS /DAMAGE TO EXCHANGEABLE TOOLS,
BULBS,VALVES, TUBES, RI BBONS, BELT ETC. OR
ANY OPERATING MEDIA (E.G.LUBRICATING OIL
ETC.)UNLESS SUCH LOSS IS CAUSED BY
INDEMNIFIABLE PERILS
ELECTRONIC EQUIPMENT POLICY…contd

SPECIAL EXCLUSIONS TO SECTION I-…contd.


• THE EXCESS STATED IN THE SCHEDULE.THIS VARIES
ACCORDING TO THE VALUE OF EQUIPMENT.
• ANY COST ARISING FROM FALSE PROGRAMMING,
PUNCHING OR INADVERTENT CANCELLING OF
INFORMATION ETC.
• CONSEQUENTIAL LOSS OF ANY KIND
• WEAR AND TEAR,GRADUAL DETERIORATION DUE TO
ATMOSPHERIC CONDITIONS
• ELIMINATION OF ROUTINE FUNCTIONAL FAILURES

GENERAL EXCLUSIONS APPLICABLE TO ALL


SECTIONS-
WAR PERILS/NUCLEAR PERILS/WILFUL ACT/NEGLIGENCE etc.
EXTERNAL DATA MEDIA-SECTION II

• COVERAGE FOR EXTERNAL DATA MEDIA


WILL BE AGAINST THE SAME PERALS
COVERED UNDER SECTION I
•SUM INSURED=COST OF RESTORING THE
INSURED EXTERNAL DATA MEDIA BY NEW
MATERIAL AND REPRODUCING LOST
INFORMATION
•COVERAGE UNDER SECTIONS II AND III IS
OPTIONAL
INCREASED COST OF WORKING …
SECTION III

• THIS SECTION COVERS ADDITIONAL COST


INCURRED DURING INDEMNITY PERIOD IN
ORDER TO AVOID INTERRUPTIONAL DATA
PROCESSING
•SUM INSURED– INSURED MUST DECLARE
THE INDEMNITY LIMIT PER HOUR AND
ALSO THE TOTAL SUM INSURED.TOTAL SUM
INSURED WILL REPRESENT THE
AGGREGATE LIMIT OF INDEMNITY
PAYABLE FOR ALL EVENTS OCCURING
DURING THE PERIOD OF INSURANCE