Electronic Equipment Insurance (EEI)

The Electronic Equipment Insurance Policy provides comprehensive coverage against unforeseen and sudden accidental physical loss or damage to the electronic equipment and data media that occurs owing to perils other than those specifically excluded under the policy. It is handy insurance cover to protect the manufacturing industry against hefty expenses necessitated in restoring the damaged equipment & data media to its working condition and also to maintain business continuity.

Equipment Covered

• Electronic data processing machine
• Telecommunication equipment and navigational equipment
• Transmitting and receiving installations (including Radio, TV, Cinema Sound Reproduction and Studio Equipment)
• Material testing and research equipment
• Electro-Medical Installations, Biomedical, Equipment, e.g. Cath Lab, X‐ray Machine, Ultrasound machines, MRI, CAT scan Machines
• Signal and transmitting units
• Office calculators, duplicating machines and Reproduction machines
• Control Electronic panels and supervisory units
• Computer and allied peripherals
• Auxiliary equipment like UPS, Voltage Stabilizer etc

The term equipment shall include the entire computer system consisting of CPU, Keyboards, Monitors, Printers, Stabilizers, UPS etc.

• The value of Software can be covered under this policy
• It can cover moveable and portable electronic equipment also.

Key Benefits

• Extensive coverage provided spread over three sections
• Covers both partial and total loss due to material damage of equipment
• Expenses incurred on the restoration of data covered
• Covers additional costs for continued data processing

Coverage

The policy provides coverage against unforeseen and sudden physical loss or damage to the electronic equipment and data media that occurs owing to perils other than those specifically excluded. Three sections are providing the desired coverage:

• Section I:  Material damage (equipment)
  This section covers the accidental damage to the insured equipment against "All Risks" namely:
  Fire, Lightning, Explosion/Implosion, Aircraft Damage, Riot, Strike, Malicious and Terrorism Damage, Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood and Inundation, Impact Damage, Subsidence Landslide, Rockslide, Bursting and/or overflowing of Water Tanks, Apparatus and Pipes, Missile Testing operations, Leakage from Automatic Sprinkler Installations, Bush Fire (Fire & Allied Perils)

  • Electrical & Mechanical Breakdowns
  • Burglary & Theft
  • Negligence, Lack of Skill, CarelessnessIn short, the cover provided is for damage caused by unforeseen and sudden physical loss or damage from any cause (other than those specifically excluded- explained in subsequent paragraphs) in a manner necessitating repair or replacement.

• Section II: External data media, including data stored
  This section covers Loss/Damage to external Data Media, i.e. Tapes, Discs, magnetic drives etc. caused by any peril as mentioned earlier in Section-I.
  The cost of restoration of the stored data can also be covered (the provided backup system is available)

• Section III: Increased cost of working
  Resulting from accidental loss and/or damage to the electronic equipment covered under Section 1

Add-on Covers

• Escalation of the sum insured
• Express freight
• Holiday and overtime rates of wages
• Airfreight
• Owners surrounding property
• Third-party liability
• Additional customs duty
• Terrorism

Exclusions

• Significant Exclusions to Section 1 (Equipment):

  • Deductible stated in the Schedule
  • Faults/defect existing at the commencement of the present insurance and within the knowledge of the Insured
  • Wear and tear losses
  • The cost incurred in connection with the elimination of functional failure
  • Maintenance Costs
  • Aesthetic defects
  • Consequential loss of any kind
  • Loss/damage falling under the terms of the Maintenance agreement
  • Loss/damage where the manufacturer or supplier is responsible
  • Loss/damage where the owner is responsible (rented equipment)

• Significant Exclusions to Section 2 (External Data Media)

  • Deductible stated in the Schedule
  • Any costs arising from false programming, punching, labelling or inserting, inadvertent cancelling of information or discarding of data media, and from loss of data caused by magnetic fields
  • Consequential loss of any kind or description whatsoever.

• Significant Exclusions to Section 3 (Increased Cost of Working - (ICOW))

  • Costs incurred for the use of substitute equipment during the Time Excess
  • Costs for replacement of data media, data and regeneration of data (can be covered under Section 2 --External Data Media)
  • Expenses arising out of circumstances, which are not connected with the insured material damage. For example, additional costs arising out of the following:
    • bodily injuries,
    • orders or measures imposed by any public authority,
    • expansion and improvements of the equipment,
    • lack of funds causing a delay in repairs or replacement
  • Any other consequential loss, such as loss of market or interest

Claim Process

In the event of loss, following are immediate actions to be taken
To intimate to the insurer the occurrence of loss, submit full statement in writing of the claim, provide the nature and extent of loss and also the estimate of loss. Any delay in intimation might jeopardize the claim as the insurer may express inability in accepting liability of the loss/damage.

• To take all steps to reduce and minimize the extent of loss damage and liability.
• Proximate cause of the loss and assess the type/extent and whether it is within the scope of the policy.
• To extend full co-operation to the insurer and the surveyor appointed for completion of the survey work and proper assessment of the loss.
• Produce all such records and proof as may be required by the surveyor or the insurer for arriving at the extent of loss and the liability under policy.
• Provide documents such as, claim form, Claim bill, copy of policy etc.
• Keep the damaged property under the safe custody until advised by the surveyor/insurer regarding its disposal.
• Identification of the subject matter insured