Electronic Equipment Insurance (EEI)

The Electronic Equipment Insurance Policy offers comprehensive protection against unexpected and sudden physical loss or damage to electronic equipment and data media. This coverage is essential for manufacturing industries to avoid substantial expenses associated with restoring damaged equipment and data media, ensuring smooth business operations.

Equipment Covered

  1. Electronic Data Processing Machines
  2. Telecommunication and Navigational Equipment
  3. Transmitting and Receiving Installations
    • Radio, TV, Cinema Sound Reproduction, Studio Equipment
  4. Material Testing and Research Equipment
  5. Electro-Medical and Biomedical Equipment
    • Examples: Cath Lab, X-ray, Ultrasound, MRI, CAT Scans
  6. Signal and Transmitting Units
  7. Office Equipment
    • Calculators, Duplicating Machines, Reproduction Machines
  8. Control Electronic Panels and Supervisory Units
  9. Computer Systems and Allied Peripherals
    • Includes CPU, Keyboards, Monitors, Printers, Stabilizers, UPS
  10. Auxiliary Equipment
    • UPS, Voltage Stabilizers, etc.
  11. Moveable and Portable Electronic Equipment
  12. Software Value can also be covered under this policy.

Key Benefits

  • Comprehensive Coverage: Covers both partial and total losses due to material damage to equipment.
  • Data Protection: Restoration expenses for damaged data are included.
  • Business Continuity: Covers additional costs for continued data processing.

Coverage

The policy safeguards against unexpected and sudden physical loss or damage, except for explicitly excluded risks. Coverage is divided into three sections:

Section 1: Material Damage (Equipment)

Covers accidental damage to insured equipment from “All Risks,” including:

  • Natural Calamities: Fire, Lightning, Explosions, Storms, Floods, Cyclones, Landslides, etc.
  • External Factors: Aircraft Damage, Riot, Strike, Malicious Acts, Terrorism.
  • Operational Incidents: Electrical and Mechanical Breakdown, Burglary, Negligence.

Section 2: External Data Media

Covers loss/damage to external data media such as tapes, discs, and magnetic drives.

  • Includes the cost of restoring stored data (provided a backup exists).

Section 3: Increased Cost of Working

Covers additional costs arising from accidental damage to electronic equipment insured under Section 1.

Add-On Covers

  • Escalation of the sum insured
  • Express freight and airfreight costs
  • Holiday and overtime wage rates
  • Owner’s surrounding property damage
  • Third-party liability
  • Additional customs duty
  • Terrorism coverage

Exclusions

Section 1: Equipment

  • Pre-existing faults known at policy inception
  • Wear and tear, maintenance costs
  • Aesthetic defects, consequential losses
  • Damages covered under maintenance agreements

Section 2: External Data Media

  • False programming or inadvertent data deletion
  • Loss caused by magnetic fields
  • Consequential losses

Section 3: Increased Cost of Working

  • Costs related to substitute equipment usage
  • Expenses unrelated to insured material damage (e.g., bodily injuries, regulatory measures, etc.)
  • Consequential losses, such as market or interest loss

Claim Process

  1. Intimate the Insurer: Report the loss immediately with a detailed claim statement. Delays may affect claim acceptance.
  2. Mitigate Loss: Take measures to minimize damage and liability.
  3. Determine Proximate Cause: Assess whether the loss is within the policy’s scope.
  4. Cooperate with the Surveyor: Facilitate the survey and provide necessary records.
  5. Submit Required Documents:
    • Claim form, bills, policy copy, and other relevant proofs.
  6. Preserve Damaged Property: Keep damaged items secure until advised about disposal.