ELECTRONIC EQUIPMENT INSURANCE Presentation
ELECTRONIC EQUIPMENT INSURANCE Presentation
INSURANCE
1
ELECTRONIC EQUIPMENT
2
Sudden / unforeseen
damage to electronics
EE Insurance is, of
immense importance to
the users of electronic
equipments.
3
EQUIPMENTS COVERED IN EEI
4
Transmitting and receiving installations Radio,
T. V. Cinema sound reproduction and studio-
equipments
5
Lets see an example of one of the coverage's –
Short circuit
There was a electric skip on the
main electric board due to the
high voltage fluctuations,
resulting in short circuit in the
computer
Will it be covered under the
policy ?
The equipment will be covered
for the short circuit under EEI
6
WHAT DOES EEI POLICY
COVER?
EEI is an all risk policy which covers Damage
due to;
Smoke, soot, dust, corrosive gases etc
Environmental contamination
Water and Humidity
Short circuit
Falling objects and entry of foreign objects
7
Fire, lightning, explosion
Human Errors like faulty/Careless/negligent
operations
Riot, Strikes, Malicious damage
Theft and Burglary
Natural calamities like flood, Inundation,
Storm, Cyclone, Earthquake
Subsidence, Land-slide, Rockslide.
8
Scope of Cover
Operational risks:
Electrical/mechanical breakdown, faulty
design, faulty material, faults in
manufacturing
9
Scope of cover-Contd:
Risks of human element : Faulty/
careless/negligent operation, riot, strike,
malicious damage
10
EXCLUDED PERILS
11
Consequential loss of any kind
12
Defects existing at the time of taking insurance
within the knowledge of insured or his
representatives.
13
UNDERSTANDING EXCLUSIONS
BETTER
The printer in Ajanta digital printers stops
functioning suddenly due to some unforeseen
condition and the production comes to a halt.
Ajanta digital printers face a huge loss, because their
printing orders get delayed and some even got
cancelled.
Hence the company demands a compensation for the
production loss.
14
No. The production loss will not be covered as
it comes under the exclusions (Consequential
loss)
But the machinery damage cost will be settled.
15
The policy has “Excess” stated at the time the
policy is taken.
16
No. If the “excess amount” stated in the
policy exceeds the claim amount it shall not be
paid .
17
Electronic Equipment Insurance -
Extensions
Extension of cover is available for;
External data media :
Cover may be obtained for financial loss that may
arise from accidental loss of information stored on
the external data media such as floppies.
19
Electronic Equipment Insurance –
Sum Insured
20
Special Warranty in EEI
Maintenance includes:
Safety Checks
Preventive maintenance
Rectification of loss/ damage/ faults arising from
normal operation as well as from ageing
21
The AMC warranty can be waived for Personal
computers with SI upto Rs 1lakh or for equipments
where the insured has a competent in-house
maintenance facility
The AMC warranty can be deleted by charging
Additional Loading on the EEI rates (50% for
equipments upto Rs 1 lakh SI and 100% loading for
equipments above Rs 1 lakh SI).
22
Claim settlement and First condition of
loss
Partial Loss
Total Loss
23
Partial loss
24
Total loss
25
Underwriting Considerations:
Description of equipment and its function,
manufacturer and model
26
What is the frequency and intensity of use?
27
Repair facilities
Loss experience
28
An “attractive” risk would involve;
29
An “Unattractive” risk would involve;
30
Rules for Cancellation
At the option of the Insurer, a pro-rata refund of
premium may be allowed for the unexpired term
on demand
31
Short Period Policies
The policies, if to be issued for shorter period than twelve
months, should be issued at the rates set out hereunder
Policy Period Required % of Annual Rate
Not exceeding 1 week 10 %
Not exceeding 1 month 25 %
Not exceeding 2 months 35 %
Not exceeding 3 months 50 %
Not exceeding 4 months 60 %
Not exceeding 6 months 75 %
Not exceeding 8 months 85 %
Exceeding 8 months Full Annual Rate
32