What is this product about?

This policy provides coverage for your Boiler and Pressure Vessel caused by and solely due to explosion or collapse whilst in the course of ordinary working.

What are the covers / benefits provided?

This policy covers:

1. Damage (other than by fire) to any boiler or pressure vessel
2. Damage to other property of the Insured, if insured
3. Liability of the Insured at law for damage to property not belonging to the Insured, if insured
4. Liability of the Insured at law on account of fatal or non-fatal injuries to any persons other than the Insured’s own employees or workmen or members of the Insured’s family, if insured

Caused by and solely due to explosion or collapse of boiler or pressure vessel whilst in the course of ordinary working.

What is the insured property?

The interest insured under this Policy such as boiler and pressure vessel as described in the Policy Schedule and situated in the location of risk named in the Schedule of the Policy.

Period of Insurance

Duration of cover is for one year. You need to renew your insurance Policy annually.

How much premium do I have to pay?

The premium you have to pay may vary depending on the type, age and sum insured of boiler, the limit of indemnity of other property of the Insured, and the limit of indemnity for 3rd party liability, past loss history, and our underwriting requirements.

What is the payment mode and how do I pay the premium?

This is an annual policy and you may pay your premium in full either by cash or cheque or bank transfer.

What are some of the key terms and conditions that I should be aware of?

• Duty of Disclosure
  - You must give all the facts which you know or ought to know.
  - You must ensure that the proposal form is completed accurately as it forms the basis of the insurance contract.
• Sum Insured / Limit of Indemnity
  For Material Damage - Boiler & Pressure Vessel
  You must ensure that the sum insured is based on the cost of replacement by a new item of the same kind and capacity, which means its cost or replacement including e.g. freight, dues and custom duties, if any, and cost of erection.
  If the sum insured is less than the amount required to be insured, we will pay only in such proportion as the sum insured bears to the amount required to be insured. Every item if more than one shall be subject to this condition separately.
  For Other Property of the Insured:
  Your estimation on the value of other property that can be damaged in the event of any Boiler and Pressure Vessel explosion or collapse.
  For Third Party Liability:
  Your estimation of the likely damage that can be inflicted on the third party in the event of any Boiler and Pressure vessel explosion or collapse.
• Under-insurance
  If the sum insured in your policy is less than the actual value at the time of loss, you are deemed to have underinsured and have self-insured the difference. This average condition will apply in the event of a claim. You shall be considered as being Your own Insurer for the difference, and shall bear a rateable proportion of the loss accordingly.
• Contribution Condition
  If at the time of any loss destruction or damage happening to any subject matter insured there be any other subsisting insurances whether by You or by any other person or persons covering the same subject matter, We shall not be liable to pay or contribute more than their rateable proportion of such loss destruction or damage.
• Claims Notification
  - In the event of a claim, you must notify us as soon as reasonably possible, but no later than 14 days from the date of the accident.
  - You must submit the claim documents to us within 30 days from the date of the loss or such further time as we may in writing allow.
• Deductible/Excess
  This is the first amount that has to be borne by you before we indemnify you of a loss.
• Premium Warranty
  Premium must be paid in full and received by us within 30 days from the inception date of the cover, otherwise the cover is automatically cancelled and you will still be responsible to pay the proportion of premium for the period we have been on risk.

What are the major exclusions under this policy?

This policy does not cover:

1. Defects due to the wearing away or the wasting of the materials of a boiler or a pressure vessel, whether by leakage, corrosion or by the action of the fuel or otherwise, the grooving or the fracturing of any of the parts of a boiler or pressure vessel, or for deterioration generally, or for the development of cracks, blisters, laminations and other flaws, or for fractures, failure of joints, or for bulging and deformation due to overheating of tubes (unless such defects, fractures, failures or bulging result in explosions or collapse), or for the cracking of sections of cast-iron heating boilers or other vessels constructed of cast-iron;
2. The failure of individual tubes in boilers of the water tube, locomotive or other multitubular types, in superheaters or in economizers (unless such defects result in explosion or collapse);
3. Damage to property belonging to the Insured or held by him in trust or on commission for which he is responsible, caused by fire arising from explosion or collapse or any other cause whatsoever, or damage to the plant resulting from any extraneous cause;
4. Damage and / or liability caused by the willful act or willful neglect of the Insured;
5. Loss sustained by stoppage of work;
6. The Excess stated in the Schedule to be borne by the Insured in any one occurrence.
7. Loss or damage which either in origin or extent is directly or indirectly, proximately or remotely occasioned or contributed to by any of the following, namely;
   • typhoon, hurricane, volcanic eruption, earthquake or other convulsion of nature,
   • loss or damage directly or indirectly caused by or arising out of war, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, mutiny, riot, strike, lock-out, civil commotion, military or usurped power, a group of malicious persons or persons acting on behalf of or in connection with any political organization, conspiracy, confiscation, commandeering, requisition or destruction of or damage to property by order or any government de jure or de facto or by any public authority, nuclear reaction, nuclear radiation or radioactive contamination,
   • any tests other than tests at a pressure not exceeding the maximum pressure permitted by the inspecting authority.
8. Sanctions Limitation and Exclusion.
9. Terrorism Exclusion

Note: This list is not exhaustive. Please refer to the policy contract for the full list of terms and conditions under this policy.

What are the pre-acceptance conditions for this product?

• The property insurance must be placed with us.
• No claims for the past 3 years.
• Insured has never been declined, cancelled or refused coverage previously.

Can I cancel my policy?

You may cancel the policy by giving Us ten (10) working days’ notice in writing. Upon cancellation, you are entitled to a refund of the premium based on the unexpired period of insurance less 10% administration charge provided no claims have been made during the current policy period.

No refund of premium for any cancellation of policy if premium is charged on minimum premium.