Boiler and Pressure Plant Insurance Policy
Boiler and pressure plants are integral parts of many manufacturing units. Fire and Machinery Breakdown policies specifically exclude damage to the boiler by its explosion. This policy is designed to cover any loss or damage to the Boiler and Pressure plant by its own explosion/implosion
What is covered:
Unforeseen sudden physical loss or damage to a boiler or pressure plant due to its own explosion/implosion. The policy can be extended to cover
- damage to the insured’s surrounding property due to explosion/implosion in the covered boiler/pressure plant.
- Any third party liability against bodily injury or property damage arising out of explosion/implosion in the insured boiler/pressure plant
What are the requirements to issue the policy:
The boiler and/or pressure plant should be periodically inspected and a certificate obtained as per the requirement of the Statutory Authorities. If however, there is no such requirement by statute, then the property should be inspected and certified as to its condition by an independent competent person
The boiler/pressure plant should be operated only by a competent person holding a certificate issued under Indian Boiler Act.
The boiler/pressure plant should be insured for the current new replacement value