Electronic Equipment Insurance Policy

Electronic Equipment Insurance covers accidental, unforeseen and sudden physical loss or damage to electronic equipment (Including system software) against sudden & unforeseen physical damage by any cause or peril those are not excluded under the Policy.

It is an all risk policy that covers the damage or loss caused to the equipment, data media and Increased Cost of working (ICOW). The term equipment shall include the entire computer system consisting of CPU, Keyboards, Monitors, Printers, Stabilizers, UPS etc. It is suitable for all types of electronic equipments. Computer and allied peripherals, Auxiliary equipments like UPS, Voltage Stabilizer etc. Medical, Biomedical, Equipment i.e Cath Lab, X-ray Machine, Ultrasound machines, MRI, CAT scan Machines, Audio/Visual equipments, Electronic control panels, Telecommunication and navigational equipments, Electronic equipment for research and material testing

Scope of Cover
The Policy is divided into 3 sections as under:
Section I:
This Section Provides cover for damage caused by unforeseen and sudden physical loss or damage from any cause (other than those specifically excluded) in a manner necessitating repair or replacement. It is against “All Risks,” namely
A) As per Fire and Special Perils Policy ( Fire, Lightning, Explosion/Implosion, Aircraft Damage, Riot, Strike, Malicious and Terrorism Damage, Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood and Inundation, Impact Damage, Subsidence Land slide, Rock slide, Bursting and/or overflowing of Water Tanks, Apparatus and Pipes, Missile Testing operations, Leakage from Automatic Sprinkler Installations, Bush Fire .
B) Electrical & Mechanical Breakdowns
C) Burglary & Theft
D) Negligence, Lack of Skill, Carelessness

Section II
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 (provided backup system is available)

Section III
Increased cost of working (ICOW) for use of substituted electronic equipment for continued data processing following indemnifiable damage to insured electronic equipment can be covered under this Section.

Key Features

The Owner, Lessor or Hirer (where responsible either legally or through a leasing agreement) of electronic equipment can buy this Policy.

The value of Software can be covered under this policy.

Moveable and portable electronic equipments also can be Insured.

Preventive Maintenance Agreement shall be in force during the currency of the policy for all electronic equipment with a sum insured exceeding Rs.1.0 Lakh.

The word ‘Maintenance’ shall mean the following -safety checks, Preventive maintenance, Rectification of loss or damage or faults arising from normal operation as well as from ageing.

Warranty relating to Maintenance agreement cannot be waived for Medical equipments even if there is In House maintenance facility.

All equipment should have serial no. or any identification mark and the same should be incorporated in the Policy.

Sum Insured

The SI for each item covered must represent the New Replacement Cost.

A) Equipment:
New Replacement Cost including Freight, Customs Duties & Erection Costs. The sum insured shall include the value of software (purchased along with the equipment or acquired subsequently).

B) External Data Media
Replacement Cost of Empty Data Media (new) + (plus) Cost of Reproducing the Lost Data

C) Increase Cost of Working
Sum Insured under this section may be selected item wise on the following:

Rental Charge of substitute Electronic System

Indemnity Limit per ‘computer working hour’

Indemnity Limit of ‘hours per Occurrence’

Aggregate Indemnity Limit per Occurrence

Personnel Expenses: Limits to be selected

Cost of Transportation: Limits to be selected

All equipment should have serial no. or any identification mark and the same should be incorporated in the Policy.

Add on covers available

Express freight;

Air freight

additional custom duty;

Third party liability


General Exclusions are loss/damage caused by:

Inherent Vice

Manufacturer's Responsibility,

Willful Act

Cessation of work whether total or partial

War perils

Nuclear Perils

Derangement not accompanying a damage otherwise covered by this policy

Exclusions to Section 1 (Equipments):

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

Cost incurred in connection with the elimination of functional failure

Maintenance Costs

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)

Exclusions to Section 2 (External Data Media)

Deductible stated in the Schedule

Any costs arising from false programming, punching, labeling or inserting, inadvertent canceling of information or discarding of data media, and from loss of information caused by magnetic fields

Consequential loss of any kind or description whatsoever.

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

Costs incurred for 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).

Any other consequential loss such as loss of market or interest.