Machinery Breakdown Insurance
THE POLICY
This policy covers non-maintenance repair costs due to sudden damage.
By insuring plant and machinery against the cost of repairs that are necessary to restore damaged machinery to its former state or for the replacement of damaged and unrepairable items, you can budget for the premium costs and avoid unpredictable but inevitable repair costs that could cause a budget "blow out”.
WHO NEEDS THIS COVER?
Church operated organisations and businesses, particularly hospitals and nursing homes, schools and colleges and others that have plant and machinery such as refrigerators, cool room motors, centrifugal chillers, air compressors, air conditioners, evaporative air coolers, microwave ovens, dishwashers, glass washers, washing machines, dryers, ice machines, cooking exhaust canopies, jacketed pans, switchboards and lighting/power generators.
DEDUCTIBLE/EXCESS
The standard policy has a $200 deductible. Premium discounts apply where increased deductibles are selected, for example, a 20% premium discount for a $500 deductible, 30% for $750 deductible and 40% for $1,000.
LIMITS OF LIABILITY
Where items are insured separately, each item has a separate sum insured representing the estimated maximum repair cost and this is our limit of liability. More commonly, items are not listed and are all insured under a "blanket" policy in which case the limit of liability is the maximum amount payable for repairs for any one machine or item of plant.
FIRE SERVICE LEVIES and STAMP DUTY
Where applicable, stamp duty is added to the premium
FEATURES and BENEFITS
- Repair damage is paid in full including charges for overtime, air freight and hire of a temporary replacement machinery (5% of item sum insured).
- Costs of dismantling, re-erecting and removal of debris.
- Replacement of refrigerant lost from an insured item as a direct result of damage.
- There is no deduction for depreciation.
- Sums insured are indexed to maintain adequate cover.
- Where the "blanket" method is used all items are insured.
- The cover does not include perils insured under an ISR policy therefore Fire Service Levy does not apply to this class of insurance.
OPTIONS/EXTENSIONS
The policy can be extended to cover consequential loss as a result of breakdown. Where there is a significant dependence on a key piece of machinery and replacement may take time (i.e. imported or specially designed machinery) this form of protection should be considered.
IMPORTANT POINTS
The policy does not cover:
- Rectification of wear and tear.
- Routine preventive maintenance.
- Adjustment and cleaning.
- Non-essential repairs.
For accidental damage and breakdown cover on boilers and pressure vessels, a Machinery Breakdown cover is required.
TAKING OUT A POLICY
Catholic Church Insurances Limited will assist in obtaining information necessary for providing a quotation and issuing a policy.
If necessary the insured may carry out minor repairs. The insured should also minimise the extent of damage, preserve the effected parts for later inspection and immediately notify us so inspection and repairs can be arranged.
Please note: this information sheet is not intended to replace the policy wording. It is designed for information purposes only and should be read in conjunction with the policy wording. For further information or a full copy of the policy wording please contact Catholic Church Insurances Limited on 1300 655 001.
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