Electronic Equipment Insurance Policy

We are in the computer era and usage of Electronic equipment’s such as Computers, Medical, Bio-Medical, Micro Processors, Audio-visual equipment’s etc. are the order of the day to catch up with the advancement.  The cost of these equipment’s are relatively expensive. There is a need to protect these equipment’s against unforeseen and sudden physical loss or damage resulting from fire, short circuiting or breakdown. This policy can be taken by the owner, lessor or hirer of electronic equipment.

Electronic Equipment used in various industries and offices are exposed to risks of unforeseen and sudden causes resulting in loss or damage. Such losses may be repairable or may sometimes need replacement.

Electronic Equipment insurance is designed to provide coverage for protection against loss and damage from “all risks”, to specialized electronic equipment such as computers, x-ray machines, communication facilities, studio equipment and other data processing machines.

Material damage, loss of external data media and increased cost of working in the event of a claim can be covered under Electronic Equipment Insurance Policy.

This is a specially designed policy covering accidental loss or damage to electronic equipment.

The types of Equipment’s, which are not portable and mobile covered under this policy are:

  1. Electronic data processing machine.
  2. Telecommunication equipment.
  3. Transmitting and receiving installations.
  4. Material testing and research equipment.
  5. Electro-Medical Installations.
  6. Signal and transmitting units.
  7. Office calculators, duplicating machines and Reproduction machines.
  8. Control and supervisory units.

Scope

The policy covers sudden and unforeseen physical damage including breakdown to the electronic equipment covered under the policy due to any reason not specifically excluded.

Perils covered under the Policy:

  1. Smoke, soot, dust, corrosive gases etc.
  2. Water and Humidity.
  3. Short circuit and Electrical fire risk.
  4. Faulty operations, lack of skill.
  5. Falling object and entry of foreign bodies.
  6. Fire, lightning, explosion.
  7. Riot and strike and malicious damage and terrorism.
  8. Theft and burglary.
  9. Natural calamities – flood, inundation, storm, cyclone and earthquake.
  10. Subsidence, landslide, rockslide.

The sum insured or value of the policy should be equivalent to the present day purchase price of similar new electronic equipment including all incidental expenses like cost of installation, duty, freight, taxes etc. If the sum insured is less than required as stated above then the claim will only be paid in such proportion as the sum insured bears to the amount required to be insured.

The policy can be extended to include the following risks on payment of additional premium.

  1. Damage to external data media for example punch cards, tapes, discs etc. as also the cost of reconstruction of data on this external media caused by a peril covered under the policy.
  2. The additional expenditure incurred due to use of a substitute computer system as a result of an accidental damage to the computer insured under the policy and which is covered by the policy.