Machinery Loss of Profits

Breakdown and Failure to the critical machinery, boilers or pressure vessels in any industrial or manufacturing unit can threaten to interrupt the regular operations and jeopardize revenue streams. Reliance Machinery Loss of Profit Insurance Policy is our answer to such unforeseen losses. The policy covers consequential losses arising out of unanticipated, accidental physical loss or damage to machinery.

• Covers financial loss upon breakdown or failure of important machinery
•  Offers exhaustive coverage along with the machinery break down policy for all risks associated with boilers, pressure plants and industrial machinery
•  Extensions available to cover wages and auditor fees

• Gross Profit: Net Profit plus insured standing charges
  
• Net Profit: Net Trading Profit less all capital receipts / accretions / outlays chargeable to capital less all standing and other charges including depreciation, before tax from specified business and specified premises
  
•  Trading Profits: Profits from selling goods dealt / manufactured and services rendered
  
•  Standing Charges: All fixed costs incurred for proper business operations
  
•  Turnover: Amount payable (less discounts) to the insured for sale of goods / services rendered in course of business at specified premises
  
•  Indemnity period : Period that starts from the day of accident and ends not later than the number of months indicated in the policy during which the business is affected
  
•  Lay off Wages: Payment to employees during indemnity period for which no work was/ is available in consequence of the accident.

The policy covers your business against-

• Loss of gross profit due to reduction in turnover / output
• Increased cost of working

 Due to accidental damage to machinery/ boilers affected in stated premise consequent upon the operation of an insured peril under the Machinery Insurance policy.

Sum insured is the Annual Net Profit plus Standing Charges based on the latest balance sheet figures adjusted to expected trend in the forthcoming year of operations.

The policy is subject to adjustment of premium to the extent of difference between actual Gross Profit of the current financial year and estimated profits, subject to a downward limit of 50 per cent.

The policy provides for following extensions-

• Wages
• Auditors’ Fees

The Reliance Machinery Loss of Profit Insurance Policy does not cover any loss resulting from interruption of or interference with the business directly or indirectly attributable to any of the following causes:

• Willful act, neglect or gross negligence of the insured or his responsible representatives
• Loss/damage caused by any faults/defects existing at the time of commencement of this insurance within the knowledge of the insured or his representatives
• Shortage, destruction, deterioration and damage to raw materials, semi finished or finished products, or catalyst, or operating media
• Any restrictions on reconstruction or operation imposed by any public authority.
• Alterations improvements or overhauls being made while repairs or replacements of damaged or destroyed property are being carried out.
• Loss damage and/or liability caused by or arising from or in consequence directly or indirectly of war or war like perils
• An extension of the normal repair period for more than 4 weeks on account of
• The inability to secure or delays in securing replacement parts, machines or technical services.
• The inability to carry or delays in carrying out repairs.
• The prohibition to operate the machinery due to import and/or export customs and other restrictions, or by statutory regulations.
• Transport of parts to and from the Insured’s premises.