CMI – Comprehensive Machinery Insurance

The comprehensive machinery (CM) insurance policy is essentially an accident insurance for industrial facilities where engineering risks are in the foreground, as opposed to all-risks policies, which focus on fire and allied perils. It covers sudden and unforeseen material damage to the whole facility and, in a way similar to the MLOP policy, the ensuing loss of profits. As in the case of machinery insurance, it covers material damage affecting the substance of the insured object which necessitate repair or replacement. Essentially a CM insurance policy offers insurance protection against the following causes:

The scope of cover is of very broad design modelled on the CAR and EAR insurance policies customary in international insurance markets. With the exception of a few standard exclusions, the cover embraces just about every sudden and unforeseen case of material damage to insured construction and erection objects during the agreed construction, erection, testing, and maintenance periods on the construction site. Supplementary endorsements can be applied to adjust the scope of cover to meet individual requirements.

• faulty design, manufacture, or assembly, defects in casting or material
• operating error, lack of skill, negligence, malice
• tearing apart due to centrifugal force
• short circuit and other electrical causes
• shortage of water in steam generators
• physical explosion
• windstorm, frost, ice motion
• earthquake, earth movement
• fire, explosion, lightning
• stroke flood, inundation

MRe CMI Comprehensive Machinery Policy and Clauses

• CMI Policy
• 1375 Flue gas purification plants
• 1374 Sum insured on unit-price basis
• 1373 Inspection and overhauling of boilers
• 1372 Overhauling of steam, water and gas turbines and turbo-generator sets
• 1371 Overhauling of electric motors and generators above 1,000 kW (other than turbo-generators)
• 1370 Overhauling of platen presses
• 1369 Submerged and deep-well pumps
• 1368 Waiver of underinsurance
• 1367 Components along the hot-gas path of gas turbines
• 1366 Repairs to combustion engines (e.g. diesel, gas engines)
• 1365 Rewinding of electric machines (e.g. motors, generators, transformers)
• 1364 Wires and non-electric cables
• 1363 Conveyor belts and chains
• 1362 Refrigerant and lubricating oil
• 1361 Refractory materials and:or masonry in industrial furnaces and boilers
• 1360 Serial losses
• 1311 Customers extension
• 1310 Suppliers’ extension
• 1309 Delay in repair
• 1308 Failure of public power, water, gas or steam supply
• 1307 Additional expenditure other than increased cost of working
• 1306 Maximum demand charges
• 1305 Prolongation of the interruption period due to deterioration
• 1304 Earthquake
• 1303 Business interruption resulting from machinery breakdown during a guarantee period
• 1302 Underground machinery and equipment
• 1301 Extra costs for airfreight
• 1300 Strike, riot and civil commotion

Original Sources : Munich Re, IMIA