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

Original Sources : Munich Re, IMIA

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