Metodología y Contenidos

This section covers the breakdown of machinery (including boilers and pressure plant), computers and electronic equipment at your premises. An insured event does not include the items, events or circumstances set out beside the event in the “What we exclude” column.

You can claim for loss or damage as described under “What we cover” to an item of:

• machinery if ‘machinery breakdown’ is shown under “What’s Covered” on the schedule;

• computer equipment if ‘computer breakdown’ is shown under “What’s Covered” in the schedule; or • electronic equipment if ‘electronic equipment breakdown’ is shown under “What’s Covered” in the schedule

if

• the loss or damage occurs during the period of insurance;

• the loss or damage is not excluded under the ‘What we exclude’ column of this section; and • the loss or damage is not excluded by any of the General Exclusions listed on pages 103 and 104.

What we cover What we exclude Breakdown occurring at your premises of or to any

machinery, computer equipment or electronic equipment

which requires repair or replacement before it can continue operating normally.

We will not cover you for:

• The cost of repair or replacement of expendable items. • Breakdown or any loss or damage caused by any crack,

fracture, blister, lamination, fl aw or grooving which has not penetrated completely through the entire thickness of the material of the machinery.

• The costs incurred in repairing wear and tear or gradual deterioration including:

− wear and tear due to normal operation; − wearing or wasting away of material caused by

normal operation or resulting from atmospheric conditions, rust, erosion, or oxidation;

− damage to a safety or protective device caused by its own operation;

− the chipping or scratching of painted or polished surfaces; or

− slowly developing deformation or distortion. • The cost of carrying out of normal maintenance, such as

the tightening of loose parts, recalibration or adjustments. • Breakdown of machinery, computer equipment or

electronic equipment which you knew or reasonably should have known to be defective before the breakdown occurred. • Any loss of use, loss of earning capacity and any other

consequential loss of any kind, including loss, damage, cost or expense caused directly or indirectly by or resulting from:

What we cover What we exclude

• Any loss or damage caused by or arising out of the following Insured Events specifi ed in Section 1A or to any

loss or damage covered by the exclusions referred to in the following Insured Events:

− 1(a). Fire;

− 1(b). Escape of molten material from its intended confi nes at the premises;

− 2. Lightning or thunderbolt;

− 4. Earthquake, tsunami, subterranean fi re or volcanic eruption, or fi re resulting from any of these, during any period of 72 consecutive hours;

− 5. Impact;

− 6. Riot, civil commotion or labour disturbances; − 7. Storm, wind and rain (including snow, sleet or hail); − 8. Water damage (other than as a result of a

breakdown covered by this policy section); or − 9. Malicious acts (including by vandals and thieves). • Breakdown, loss or damage caused by explosion or

implosion, other than:

− the sudden and violent rending of any boilers and pressure plant or pressure pipe systems by force of internal fl uid pressure of ignited fl ue gases, but excluding other chemical action; or

− the bursting or disruption of turbines, compressors, engine cylinders, hydraulic cylinders, fl ywheels or other parts subject to centrifugal force, transformers, switches or oil immersed switch gear.

• Breakdown, loss or damage caused during the course of maintenance, inspection, repair, alteration, modifi cation or overhaul.

• Breakdown, loss or damage caused during installation, erection or relocation.

• Damage to foundations, brickwork, and refractory materials other than as a result of breakdown.

• Breakdown, loss or damage arising out of plant being subjected to tests involving abnormal stresses or arising out of plant being deliberately overloaded.

• Breakdown, loss or damage caused by a deliberate act, neglect or omission on your part.

• Breakdown, loss or damage for which the manufacturer or supplier or other parties are responsible under a maintenance or warranty agreement.

• The cost of alterations, improvements or overhauls unless it is required for the repair or replacement.

• The costs associated with modifying the machinery so that it operates with a more ozone friendly refrigerant gas as required by the United Nations Environmental Programme Montreal Protocol with respect to substances which deplete the ozone layer (“UNEP”).

What we cover What we exclude

• Breakdown, loss or damage as a result of dual lifting. • Air conditioners unless your schedule shows they are

covered.

• Breakdown, of machinery, computer equipment or

electronic equipment which is useless or obsolete to your

business.

• Loss or damage caused by or arising out of pollution, contamination or a hazardous substance, however caused, except as provided for in extra benefi t 4.

Extra benefi ts

If we agree to pay a claim for an insured event, under this section we will also pay for:

Extra Benefi ts 1 and 2 are included in the insured amount

for the breakdown of machinery, computer equipment or

electronic equipment. 1. Loss of or damage to property caused by fl ying fragments

Loss of or damage to other property that results from fl ying fragments from the broken machinery, computer equipment or

electronic equipment.

2. Costs of joints, gaskets or drivebelts

The reasonable costs of replacing joints, gaskets, seams, drivebelts, fi lters, chains, brickwork, foundation or refractories, seals, shaft seals, fl exible drives or fl exible pipes, soft rollers, refrigerant or other transfer media which are necessary for their repair.

3. Additional costs The reasonable costs of:

• hiring temporary replacement machinery, computer equipment or electronic equipment;

• effecting temporary repairs;

• overtime work required for carrying out the repairs; or • express freight services and consultants fees.

We will not pay more than $25,000 in total for these additional costs for each event.

4. Hazardous substances

If a hazardous substance is involved in or released by a

breakdown of machinery, computer equipment or electronic equipment which is covered by this policy section, we shall pay the increase in cost to repair, replace, clean up or dispose of, the damaged machinery, computer equipment or

electronic equipment.

The maximum we will pay under this extra cover is $25,000 for each event.