MACHINERY BREAKDOWN (PHYSICAL DAMAGE AND EXPEDITING COSTS)

The Policy extends to indemnify the Insured for Damage to Machinery occasioned by or happening through any mechanical, electrical, electromechanical, electronic or hydraulic malfunction, failure derangement, breakdown or non-operation of any kind except as otherwise specifically excluded.
For the purpose of this extension.

1. “Machinery” means any apparatus, including  electronic control equipment, whether functioning independently or as part of a collection of apparatus which generates, contains, controls, transmits, receives, transforms or utilizes any form of source of energy or power.
2. The following specific exclusions shall apply to this extension and shall take precedence over the exclusions of the Policy.

Property Exclusions  :
Damage to  :

• any sewer piping, underground gas piping, piping forming part of any sprinkler system or water piping other than boiler feed water piping, boiler condensate return piping or water piping connecting to or used with an air conditioning system;
• any structure, foundation or setting (other than a bedplate) supporting or housing any Machinery, or the lining or fire wall of any unfired vessel;
• any vehicle or mobile equipment whilst being driven on a public thoroughfare (but damage to such vehicle or mobile equipment whilst being used at any situation as a tool of trade is not excluded);
• any aircraft or floating vessel;
• any elevator, crane, hoist, power shovel, dragline or conveyor (but not any pressure vessel or electrical equipment used with such items of Machinery);
• any computer or electronic data processing equipment;
• any X-ray machine, spectrograph, gauges or other apparatus using radio active materials, any radio or television apparatus;
• any penstock, draft tube or well casing;
• any steam or gas turbine-generator with a capacity exceeding 250 horse power or equivalent;
• electrical wiring and fittings associated with lighting and power circuits.

Excluded Circumstances :
The Insurer shall not be liable in respect of  :
(a)    (i)    wear and tear and gradual deterioration (whether by wasting, grooving, rust, corrosion, erosion or otherwise) nor for the cost of maintenance work generally;
(ii)    gradually developing flaws, deformation, distortion, cracks or  partial fractures;
Provided that Excluded Circumstances (a) (i) and (ii) shall be limited to the part(s) of the Machinery immediately so affected and  shall not apply to any other part(s) of the machinery undergoing sudden and unforeseen damage in consequence thereof.
 

(b)    repair or renewal of non-metalic parts and expendable tools, blades,  edges, moulds, dies, templates, screens, sieves, ropes, belts and like items subject to rapid wear and tear unless repair or renewal thereof is necessitated by the occurrence of Damage (as insured by this extension) to any other part(s) of the Machinery;
 

(c)    Damage :
(i)    arising from the intentional application of any tool or process to the Machinery during the course of repair, alteration, modification, maintenance or overhaul thereof.
(ii)    to the Machinery resulting from the imposition of abnormal conditions relating to testing or intentional overloading of or experiments with the Machinery, unless the Insurer shall have agreed in writing to grant indemnity under this extension whilst the Machinery is being operated under such conditions.
(iii)    to the Machinery resulting from fault(s) or defect(s) therein known to the Insured or to responsible employees of the Insured but not disclosed to the Insurer at the commencement of the Period of Insurance.
 

(d)    consequential loss of any kind (including consequential loss due to lack of   performance, loss of contract or payment in respect of any contractual fine or penalty due to late or non-performance of services by the Insured).
 

The insurance under this endorsement includes expediting expenses, which shall mean :
(a)    penalty rates for wages during overtime, shift, night, Sunday or holiday working;
(b)    payment for carriage by express passenger, fast goods or other rail or road transport;
(c)    payment for carriage by airfreight via licensed airline(S) operating a regular scheduled service but not by aircraft chartered for such carriage, unless agreed in writing with the Insurer.
The Insurer’s liability for expediting expenses shall not exceed 50 % of the normal cost of repair or replacement of the Damaged Machinery.