Electronic Equipment Insurance

Electronic Equipment Insurance policy provides comprehensive coverage against unforeseen and sudden physical loss or damage to your electronic equipment and data media.

The policy covers:

Material damage (equipment, e,g, computers, microprocessors, systems software)
External data media, including information stored thereon and
Increased cost of working resulting from accidental loss and/or damage to

Main exclusions

The policy does not cover any loss or damage due to:

War or warlike operations
Nuclear perils
Wilful act or wilful negligence
Wear and tear or gradual deterioration due to atmospheric conditions
Aesthetic defects
Consequential losses

This is not an exhaustive list.

Other Clauses as endorsement for the standard wording, available as follows :

Cover for additional expenditure for the restoration of EDP system : It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon, all additional repair costs that can be proved to have been incurred as a result of the loss event of Equipment and the restoration effected in this connection shall be indemnified.This cover shall be applicable for a period of 6 months as from the date the restoration is completed.
Cover for Earthquake : It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon and subject to the Insured having paid the agreed extra premium, this insurance shall be extended to include the risk of earthquake, volcanic eruption and tsunami up to a first loss limit of USD._______.00.
Cover in respect of loss of rental for leased EDP Equipment : It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon, cover shall be extended according to the following conditions:SCOPE OF COVER (EEI)The Insurers hereby agree with the Insured that if material damage indemnifiable under Section I of this Policy, however limited to occurrences for which the Insured is liable under the leasing contract, gives rise to a total or partial interruption of operation of the EDP equipment entered in the Schedule, the Insurers will indemnify the Insured, as hereinafter provided, for loss of rental for leased EDP equipment as a consequence of such loss or damage up to an amount not exceeding the agreed indemnification per day and not exceeding in all the sum insured in any one year of insurance, provided always that such interruption occurs during the period of insurance stated in the schedule or during any subsequent period for which the Insured pays and the Insurers may accept the premium for the renewal of this policy.SPECIAL EXCLUSIONS TO THE ENDORSEMENT (EEI)The Insurers shall, however, not be liable to for any loss of rental sustained as a result of ;
1. restrictions imposed by public authorities concerning the reconstruction or operation of the EDP equipment insured;
2. the necessary funds not being available to the Insured in time for repairing or replacing damaged or destroyed equipment;
3. delayed or impossible procurement of spare parts;
4. delay due to the employment of foreign experts
PROVISIONS APPLYING TO THE ENDORSEMENT (EEI)

Memo 1 – Sum Insured

It shall be a requirement of this insurance that the sum insured stated in the schedule is the amount of annual rental payable under the leasing contract. The sum insured shall be based on the amounts agreed per day and per month as specified in the schedule.

Memo 2 — Basis of Indemnity

In the event of failure of the EDP equipment insured the Insurers shall be liable for the loss of rental that can be proved to have been sustained for the period during which the operation of the leased EDP equipment is interrupted or interfered with, but at the most for the indemnity period limit agreed.

The indemnity period shall commence with the occurrence of the accident. The Insured shall bear the proportion of each claim which corresponds to the time excess agreed.

If it is found following an interruption of the operation of the EDP equipment insured that the loss of rental sustained during the period of interruption is higher than the proportionate share of the annual sum insured applicable to this period, the Insurers shall be liable to indemnify the Insured only in respect of that proportion of the agreed annual sum insured which is applicable to the period of interruption, duly taking into account the indemnity period agreed.

Any savings in cost shall be taken into account when calculating the indemnity amount to be paid by the Insurers.

As from the date of an indemnifiable occurrence the sum insured shall be reduced for the remaining period of insurance by the amount of indemnity paid, unless the sum insured is reinstated.
Cover of Mobile & Portable equipment Outside the premises : It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon and subject to the Insured having paid the agreed extra premium, this insurance shall be extended to include loss of or damage to the mobile and/or portable equipment contained in the schedule of the Policy whilst stationary or in transit anywhere within the [……] territorial limits.The Insurers shall not be liable under this Endorsement for
- loss or damage occurring whilst the above items are unattended unless locked inside a building or vehicle
- loss or damage from any cause whatsoever whilst the above items are installed or carried in or on aircraft or aerial devices or waterborne vessels or craft
Cover for Full Replacement Clause : It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon and subject to the Insured having paid the agreed extra premium, where an insured item is totally destroyed or damaged beyond repair, the basis upon which the amount payable under the Policy is to be calculated shall be the full replacement value of the item destroyed or damaged.Replacement Value shall mean the cost which would have to be incurred immediately before destruction of or damage to an insured item for replacing the destroyed or damaged item by a new item of a similar kind, capacity, size and quality.Provided that
- the replacement work shall be commenced and carried out with reasonable dispatch, otherwise no payment shall be made beyond the amount which would have been payable under the Policy if this Endorsement had not been incorporated therein;
- no payment shall be made beyond the amount which would have been payable under the Policy if this Endorsement had not been incorporated therein, if at the time of destruction of or damage to the insured item such destruction or damage is covered by any other insurance effected by or on behalf of the Insured, which is not based on reimbursement of the full replacement value;
- the item involved shall be no older than years at the time of the loss, calculated from the year of construction indicated in the list of machinery attached to the insured contract; but no payment shall be made beyond the amount which would have been payable under the Policy if this Endorsement had not been incorporated therein, if at the time of the destruction of or damage to the insured item the manufacturer has ceased production of the respective model or if such model is no longer available as a new item from the manufacturer’s or supplier’s stock;
- the amount payable for the replacement of the destroyed or damaged item shall not exceed the sum insured set opposite to that item in the schedule of the Policy
Cover for Hurricane, Cyclone and Typhoon : It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon and subject to the Insured having paid the agreed extra premium, this insurance shall be extended to include the risk of hurricane, cyclone and typhoon up to a first loss limit of USD. ______.00 on any one event.
Cover for theft : It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon and subject to the Insured having paid the agreed extra premium, this insurance shall be extended to include the risk of theft of the insured items whilst on the premises provided, however, the Insured informs the police authorities immediately after any loss or damage due to theft is discovered.
Cover of Valves & Tubes : It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon and subject to the Insured having paid the agreed extra premium, this insurance shall be extended to include loss of or damage to valves and tubes. Indemnification shall be limited to the actual value of such items immediately prior to the occurrence of the loss or damage, including ordinary freight, erection costs and custom duties and dues, if any.
Overtime, Night work, work on public holidays and express freight clause : It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon and subject to the Insured having paid the agreed extra premium, this insurance shall be extended to cover extra charges for overtime, night work, work on public holidays and express freight.Provided always that such extra charges are incurred in connection with any loss of or damage to the insured items recoverable under the Policy.If the sum(s) insured of the damaged item(s) is/are less than the amount(s) required to be insured, the amount payable under this Endorsement for such extra charges shall be reduced in the same proportion.

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PT. CARAKA MULIA

Electronic Equipment Insurance

Main exclusions

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