boiler & pressure plant insurance

8/9/2019 BOILER & PRESSURE PLANT INSURANCE

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BOILER & PRESSURE PLANTBOILER & PRESSURE PLANTINSURANCEINSURANCE


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Boiler & Pressure Plant Insurance Boiler is a closed vessel in which water

or other fluid is heated under pressure

Pressure Plant is a closed container

which uses steam, gas, other fluidunder pressure

Major risks in Boilers are generally

that of explosions which can occur dueto various reasons resulting in damage

of the vessel and third party liability


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COVERAGESCOVERAGES

The policy covers Explosion or Collapse of theinsured Boiler or other pressure vessels resulting in:

Damage to the boilers / other pressure plant Damage to surrounding property

Liability for third party property damage and/or fatalor non-fatal personal injuries

Note : Explosion or Collapse arising in course of ordinaryworking only is covered.


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Check your understandingCheck your understanding

The Boiler / Pressure Plant catches fire

because of an accident in the factory.

Will it be covered ?


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No. It will not, because fire is not coveredunder this policy


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EXCLUSIONS:EXCLUSIONS:

Willful Act of negligence

Loss arising from an existing defect

Nuclear Perils Failure of individual tubes unless resulting in

explosion or collapse

Fire & Allied perils


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Gradual developing flaws, defects, cracks,

Contractual liability

WarGroup Peril Damage resulting from experiments or

overload or similar tests


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Check your understandingCheck your understanding

The Boiler Steam valve is not functioning

efficiently from the beginning due to which the

boiler stops working. Will it be covered?


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No. It is not covered as it comes under the

exclusions of loss arising out of an existing

defect


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One of the Insulation tubes in the boiler stops

functioning due to which the boiler is over

heating and because of which it ultimately

stops operating.

Will it be covered?


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No. It is not covered as it comes under theexclusions of faults arising out of Individual

tubes


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I have a cover with ICICI Lombard for the

boiler in my plant. And I have given the boiler

to another company on lease / contract, during

which the boiler explodes.

Will it be covered?


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No. It is not covered as it comes under theexclusions of Contractual Liability


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If there is an explosion, when the boiler is

getting repaired;

Will it be covered?


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No. It is not covered as it comes under theexclusions of Damage while recovery

exclusion.


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Warranties applicable for BPPWarranties applicable for BPP

Boilers are annually inspected by Inspectorsappointed by appropriate Govt Authority

The boilers shall only be operated by Attendantsholding a valid certificate of competency issued underappropriate Boiler Act

The insured shall be in possession of the unqualifiedpermission in writing of the competent inspectingauthority to operate the boiler


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Sum insuredSum insured

It is the requirement of the policy

that the boiler and pressure plants

are covered for their present daynew replacement value with a

view to avoid underinsurance


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Claim SettlementClaim Settlement

2 Types of losses are considered before

settling a claim:

Partial Loss

Total Loss

boiler & pressure plant insurance

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