INSURANCE AGAINST MACHINERY BREAKDOWN

What can be insured?

For insurance are accepted power, working and other up state equipment (machinery) the life time of which has not expired.

Against what equipment (machinery) can be insured?

“INGO ARMENIA” ICJSC is ready to provide insurance coverage for industrial equipment  (machinery) against damages and unforeseen breakages.

The insurance covers the “equipment or machinery breakage” risk, i.e. breakdown or destruction of equipment (machinery) as a result of influence of any external or internal factors, such as:

• defects of mouldings and materials;
• design, manufacture and assembling;
• errors during service, negligence of personnel;
• water insufficiency in boilers;
• physical explosion;
• breach as a result of influence of centrifugal forces;
• short circuit;
• other reasons (except exclusions, indicated in insurance Rules), in case occurrence of which the Insured may incur unforeseen expenses for restoration or substitution of the damaged (destructed) equipment (machinery).

Sum insured:

The sum insured is defined upon the consent of the Parties but may not exceed the insurance value of the equipment (machinery), which is equal costs for restoration or real value of the insured equipment on the moment of insurance agreement conclusion.

Reimbursement of damages (insurance compensation):

In case of destruction of equipment – to the amount of real value of the equipment at the moment of insurance accident occurrence, deducting the value of useful remainders.

In case of breakdown – to the amount of costs for restoration without taking into account the wear and tear, including restoration costs for dismantling and reassembling, as well as usual costs of transportation of the equipment to the place of restoration and and back, possible customs duties and etc.

Insurance of losses as a result of disruption of business activity caused by breakage of equipment or machinery:

In addition to insurance of equipment and machinery against breakage “INGO ARMENIA” ICJSC offers insurance of losses as a result of disruption of business activity caused by such breakage.

Present type of insurance covers non-receipt of the expected income (net income) by the Insured and execution of inevitable expenses (fixed charges) as a result of total or partial disruption of business activity caused by breakage (breakdown) of equipment and machinery (analogously to insurance of losses as a result of disruption in business activity caused by fire and other hazards.