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Insurance

Engineering Insurance

Heavy Machinery Insurance

What does it cover?

To cover commercial equipment with an all risk cover with the optional extension to include sinking of the equipment cover.

Key Coverage

All-risk type of cover protects against unforeseen losses or damages to insured properties, with specific exclusions outlined in the policy.

    1. Replacement Cost: This method calculates the cost of replacing the damaged property with new items of similar quality and condition after deducting the depreciation due to wear and tear. Â
    2. Reinstatement Value (Old for New): This method calculates the cost of rebuilding the damaged property to its original state, including the cost of removing debris and preparing the site subject to the age of the property is below 5 years. Â
    3. Average Clause: This clause stipulates that if the sum insured is less than the full value of the property, the insurance company will only pay a proportionate amount of the claim. It’s important to avoid underinsurance to prevent this from happening. Â

Note: 
This list is non-exhaustive. Please refer to the sample policy contract for the full list of exclusions under this policy.

Occasioned by or happening through:Â

  • Wear and tear, depreciation, gradual deterioration, mildew, moth, vermin or any process of cleaning, dyeing, repairing, restoring or renovating mechanical or electrical breakdown or derangement. outside the Territorial Limit stated in the Schedule. whilst in transit (including the process of loading and unloading) consequential loss or legal liability or any nature. Â
  • War, invasion, acts of foreign enemies, hostilities or warlike operations (whether war be declared or mutiny, strike riot and civil commotion, military or popular rising, insurrection, rebellion, revolution, or usurped power, martial law or state of siege or any of the events or causes which determined the proclamation or maintenance of law or state of siege).

Machinery Breakdown Insurance

What does it cover?

This policy covers your plants, machinery and, mechanical equipment whether at  work, at rest or during maintenance operations.

Key Coverage

Covers sudden and unforeseen damages due to:

  • Faulty material, design, construction and erection.
  • Vibration, maladjustment or malalignment.
  • Defective lubrication, loosening of parts, abnormal stress, molecular fatigue, self-heating centrifugal force.
  • Excessive electrical pressure, due to atmosphere electricity or otherwise.
  • Short circuits or arcing.
  • Lack of skill and carelessness in handling the machinery.
    1. Replacement Cost: This method calculates the cost of replacing the damaged property with new items of similar quality and condition after deducting the depreciation due to wear and tear.
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    2. Reinstatement Value (Old for New): This method calculates the cost of rebuilding the damaged property to its original state, including the cost of removing debris and preparing the site subject to the age of the property is below 5 years.
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    3. Average Clause: This clause stipulates that if the sum insured is less than the full value of the property, the insurance company will only pay a proportionate amount of the claim. It’s important to avoid underinsurance to prevent this from happening.
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Note: 
This list is non-exhaustive. Please refer to the sample policy contract for the full list of exclusions under this policy.

  • Loss of or damage to exchangeable tools and catalysts.
  • Loss or damage due to fire and allied perils, flood, collapse of building, and landslide.
  • Loss or damage due to burglary or theft.
  • Loss or damage for which a contractor, supplier or repairer is responsible either by law or under contract.
  • Loss or damage caused by existing defects or faults.
  • War, civil war and any act of terrorism.
  • Radioactive and nuclear energy risks.
  • Willful acts or willful negligence.
  • Loss or damage as a direct consequence of the continual influence of operation (e.g., wear and tear).
  • Consequential loss or liability of any kind.

Machinery Breakdown (Loss of Profit) Insurance

What does it cover?

This policy covers financial loss resulting from machinery breakdown. It has to be issue concurrently with the Machinery Breakdown Insurance policy.

How it Works:

  • Policy Purchase: A business purchases a Machinery Breakdown and Machinery Breakdown Loss of Profit insurance policy with a specified sum insured.
  • Loss Occurrence: If a fire occurs and if there is an indirect losses, the insured business files a claim with the insurance company.
  • Assessment: The insurance company assesses the extent of the direct and indirect losses.
  • Admissibility: the Machinery Breakdown Loss of Profit policy shall be admissible only when there is a direct loss payable under the Machinery Breakdown Policy.
Key Coverage

The policy shall compensates for:

  • Loss of gross profit.
  • Continuing business expenses (standing charges) including the salaries and wages paid to employees.
  • Increase in cost of working, i.e., the additional expenditure necessarily and reasonably incurred for avoiding or diminishing a reduction in turnover.
    1. Determine the average profit: Calculate the average profit earned by the business over the specified period. This involves subtracting expenses from revenue and dividing the total by the number of years included in the calculation.

    2. Consider the impact of the breakdown: Estimate the impact that the breakdown of the machinery would have on the business’s profit. This may involve considering factors such as lost sales, increased costs, and reduced productivity.

    3. Calculate the sum insured: Multiply the average profit by the estimated impact of the breakdown to determine the sum insured.

Note: 
This list is non-exhaustive. Please refer to the sample policy contract for the full list of exclusions under this policy.

Any loss resulting from interruption of or interference with business attributable to these causes:

  • Loss or damage due to fire and allied perils.
  • Loss or damage for which a contractor, supplier or repairer is responsible.
  • Any restrictions or reconstruction or operation imposed by any public authority.
  • Loss of or damage to machinery or mechanical installations which are not listed in the list of plant and machinery insured.

Deterioration of Stock Insurance

What does it cover?

This policy covers against losses due to the deterioration of stocks in the cold storage rooms, fridge or freezer following a breakdown of the cooling machinery subject to time excess.

How it Works:

  • Policy Purchase: A business purchases a Machinery Breakdown and Deterioration of Stock insurance policy with a specified sum insured.
  • Loss Occurrence: If a fire occurs and if there is an losses on stock deterioration, the insured business files a claim with the insurance company.
  • Assessment: The insurance company assesses the extent of the material damage on the machine and the stock deterioration
  • Admissibility: the Deterioration of Stock policy shall be admissible only when there is a direct loss payable under the Machinery Breakdown Policy.
Key Coverage
  • Changes in cooling temperature due to;
    • breakdown of the refrigerating apparatus at the premises
    • damage to the apparatus by any accident cause
  • Unforeseen and sudden escape of refrigerants in the cold-storage rooms in the case of controlled atmosphere storage
  • Incorrect composition of the storage temperature which results from any material damage to the refrigeration plant which is indemnifiable under the accompanying Machinery Breakdown policy, covering such refrigeration plant.
    1. Actual Cash Value (ACV): This method calculates the sum insured based on the current market value of the deteriorated stock, taking into account depreciation due to factors such as age, wear, and tear.

    2. Replacement Cost: This method calculates the sum insured based on the cost of replacing the deteriorated stock with new stock of similar kind and quality. This approach does not consider depreciation.

Note: 
This list is non-exhaustive. Please refer to the sample policy contract for the full list of exclusions under this policy.

This policy does not cover certain losses such as:

  • Loss due to shrinkage, inherent defects or disease, natural deterioration, putrefaction
  • Improper storage, damage to packing material, insufficient circulation of air, non-uniformity of temperature
  • Temporary repair of the refrigeration machinery specified in the list of machinery which is carried out
    without the insurer’s consent
  • Penalties for delay, consequential loss
  • War or warlike operations , Civil War and any act of terrorism
  • Nuclear reaction, nuclear radiation or radio contamination
  • Wilful acts or wilful negligence
  • Fire, direct lightning, chemical explosion, aircraft damage, thefts, collapse of buildings, flood, natural catastrophes.

Civil Engineering Completed Risk Insurance

What does it cover?

This policy covers the physical damage to businesses operating in all areas of infrastructure including motorways, railways, roads, bridges, tunnels, ports and harbours etc.

Key Coverage
  • Physical damage: Damage to the completed civil engineering project caused by fire, explosion, storm, flood, earthquake, and other perils.
  • Accidental damage: Damage caused by accidents during construction or maintenance.
  • Third-party liability: Legal liability for damage to property or injury to people caused by the insured project.
  • Loss of use: Loss of income or revenue due to damage to the project that prevents its use.
  • Increased cost of repair: Additional costs incurred to repair or replace damaged parts of the project.
  • Theft: Loss due to theft
    1. Replacement Cost: This method calculates the cost of replacing the damaged property with new items of similar quality and condition after deducting the depreciation due to wear and tear.

    2. Reinstatement Value (Old for New): This method calculates the cost of rebuilding the damaged property to its original state, including the cost of removing debris and preparing the site subject to the age of the property is below 5 years.

    3. Average Clause: This clause stipulates that if the sum insured is less than the full value of the property, the insurance company will only pay a proportionate amount of the claim. It’s important to avoid underinsurance to prevent this from happening.

Note: 
This list is non-exhaustive. Please refer to the sample policy contract for the full list of exclusions under this policy.

  • Loss or damage caused by or aggravated by latent or inherent defects
  • Wear and tear, corrosion, erosion, normal settlements
  • War, civil war, terrorism
  • Wilful acts or negligence
  • Communicable disease
  • Nuclear risks
  • Cyber attacks

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KSA Synergy Sdn. Bhd. (Malaysia)

(1089007V / 201401012924)

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KSA Synergy Sdn. Bhd. (Malaysia)

  • 65-1, Jalan Metro Perdana Barat 1, Taman Usahawan Kepong, 52000 Kuala Lumpur.

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  • 201 Henderson Road, #06-26, APEX @ Henderson Singapore 159545

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