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Questions and Answers
Which of the following is covered under Machine & Equipment Insurance?
Which of the following is covered under Machine & Equipment Insurance?
- Cranes
- Duplicating machines (correct)
- Forklifts
- Excavators
What types of damage does Equipment Insurance cover?
What types of damage does Equipment Insurance cover?
- Theft and vandalism
- Loss caused by fire only
- Damage due to wear and tear
- Accidental collision leading to damage (correct)
Which scenario would be covered under Burglary Insurance?
Which scenario would be covered under Burglary Insurance?
- Loss due to accidental fire
- Theft involving violent breaking into a building (correct)
- Theft through unforced entry
- Theft of property left outside
What property is generally excluded from Burglary Insurance coverage?
What property is generally excluded from Burglary Insurance coverage?
What is a requirement for access into the premises during a theft to be covered by the Full theft extension clauses?
What is a requirement for access into the premises during a theft to be covered by the Full theft extension clauses?
How are vehicles licensed for public road use insured?
How are vehicles licensed for public road use insured?
Which type of damage is NOT covered by Equipment Insurance?
Which type of damage is NOT covered by Equipment Insurance?
What is a common exception imposed for the Full theft extension clauses?
What is a common exception imposed for the Full theft extension clauses?
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Study Notes
Machine & Equipment Insurance
- Designed for immobile or static equipment such as photocopying machines, generators, and telephone switchboards.
- Coverage includes three main areas: fire, theft, and accidental damage due to external causes only.
Equipment Insurance
- Primarily covers mechanically propelled vehicles and equipment not licensed for public road use.
- Examples include cranes, tractors, forklifts, excavators, and bulldozers.
- Licensed vehicles for public roads fall under the Motor Policy.
- Indemnifies against:
- Accidental collision or overturning
- Accidental collision due to mechanical breakdown or wear and tear
- Risks associated with fire, external explosion, self-ignition, or theft.
Burglary Insurance
- Covers loss from theft involving forcible and violent entry or exit from a building.
- Includes damage to insured property or premises resulting from theft.
- Access using original/duplicate/skeleton keys may be covered with a "Full theft extension clause," requiring an additional premium.
- Such extensions are selectively granted based on the insured's integrity and honesty.
- A small excess typically applies to this extension.
Property Insured
- Defined under five broad categories:
- Stock in trade owned by the insured.
- Goods held in trust or on commission for which the insured is responsible.
- Trade fixtures, fittings, utensils, and office equipment.
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