General Insurance -27th July

Machinery Insurance
 Technically a breakdown is a malfunction, but is insurable only when it is sudden,
accidental and involves physical damage to the machine / equipment in whole or
part
 Manufacturers provide warranty only and no overall protection is possible
 Majority of losses caused by human influence and/or due to operation

 MACHINERY BREAKDOWN – Main Causes

 Negligence
 Faulty operation
 Entry of Foreign Particles
 Failure of control / regulating devices
 Shortage of lubricants / coolants
 Short circuit

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 Electronic Equipment Insurance

This insurance covers sudden, unforeseen and accidental loss or damage to

equipment caused by some important perils such as:
 Electrical and mechanical breakdown;
 Flood and water damages;
 Extraneous impact and collision;
 Burglary and theft;
 Failure of air-conditioning equipment;
 Negligence, faulty operation,
 Entry of foreign body, dirt.

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 Boiler & Pressure Plant Insurance
This Policy covers boiler & pressure vessels owned and located at the
premises against explosion, implosion and collapse leading to:

 Damage to the boilers & pressure vessels;

 Damage to surrounding property, up to fixed limits, arising due to
explosion & collapse of the pressure plant during normal course of
working; and

Third party legal liability, up to fixed limits, arising due to:

 1. death or bodily injury to third parties;
 2. damage to property of third parties (not held in trust or on
commission) caused by and solely due to explosion or collapse occurring
in the course of ordinary working.
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 Fire Consequential Loss of Profit Policy
or Business Interruption Policy
Fire insurance is designed to provide protection in respect of loss to
buildings, machineries, fixtures, goods etc. by fire and or other
insured perils. ... FLOP policy covers the loss of gross profit if the
loss is occurred due to perils covered under Fire Insurance.

Fire to Building, Plant & Machinery – Covered under Fire Policy

Loss of Gross Profit due to Fire – Covered under FLOP Policy

The Loss of Profits policy is formulated to cover the likely monetary

loss occurring from break in business activity that may arise due to
physical loss of property by an event covered for insurance
Sensitivity : This Document is Classified as "LNT Internal Use".
 IAR - Industrial All Risk Policy

LOP
(Fire)
Fire Machinery MLOP
Insurance
Insurance -Optional)

Boiler Electronic Burglary

equipment
Insurance insurance Insurance

Sensitivity : This Document is Classified as "LNT Internal Use".

 Liability - Meaning

 As per dictionary - responsibility or

accountability to pay.
A wrong doer is obligated to pay as
damages to the aggrieved person for the
personal injury or damage to the property
of the later.

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 WHAT IS NEGLIGENCE?

 Existence of duty of care towards third party

 Breach of that duty leads to an accident
 Such accident resulted in Injury or damage to
Properties
 Connection between breach and the injury or
damage

Sensitivity : This Document is Classified as "LNT Internal Use".

 Liability Policies - Types

 Public Liability (Industrial  Carriers’ Legal liability

Risks) Policy Policy
 Public Liability (non-  Workmen’s Compensation
Industrial Risks) policy Policy
 Public Liability Act Policy  Couriers legal Liability
 Product Liability policy
Policy
 Professional Indemnity
 Automobile Liability
Policy  Cyber crime liability Policy
 Directors and Officers  Commercial general
Liability Policy Liability policy

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 Professional Indemnity Insurance

 Doctors and Medical Practitioners

 Medical Establishments
 Consulting Engineers, Architects and Interior Decorators
 Chartered Accountants, Financial Accountants and
Management Consultants
 Lawyers, Advocates, Solicitors and Counsels

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 Professional Liability -- Contd. ..

 A professional is vicariously liable for the negligence

of his employees in the course of their employment
 Liability may also arise under the Consumer
Protection Act
 Classification of Professional Risks
 Resulting in bodily injuries (fatal or otherwise) – Eg: Doctors,
Dentists etc.
 Resulting in financial loss – Eg: Accountants, Solicitors etc.
 Resulting in financial loss and/or bodily injury – Eg: Architect
etc.

Sensitivity : This Document is Classified as "LNT Internal Use".

 Discussion forum:
Discuss – Based on your studies, name and elaborate the Insurance Policies
required for different type of Premises such as:
Premises Type:
Basket of Policies available with you:
 Engineering Design Office
1.Standard Fire and Special Perils Policy
 Hospitals
2.Marine Cum Erection – Project Insurance Policy
 Educational Institutions
3. Group Medical Insurance Policy
 Hotels
4. Motor Insurance Policy
 Manufacturing Industry
5. Group Personal Accident Policy
 Project Company
6.Liability Policy
 IT Software Development Company
7. Workmen Compensation Policy
8. Transit Insurance Policy
9. Professional Indemnity Policy
Page
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7. Electronic Equipment Policy
Sensitivity : This Document is Classified as "LNT Internal Use".