Question

. A food factory has a material damage and business interruption policy for large boiler used to produce steam and hot water for the production of sardines.

a. What insurance cover would normally be provided for boiler and pressure plant and other inspected equipment, by an engineering policy ?[10 marks]

b. List five possible losses likely to occur in the event of a boiler explosion. [5 marks]

c. Engineer surveyors tend to investigate machinery claims which are highly technical. Outline any five major information usually contained in their report [5 marks]

d. Outline five key differences between Contractor’s All Risks and Erection All Risks Policies. [5 marks]

Answer 1

a. 1. Damage( other than fire) to the boilers or pressure plant described in the schedule

2.  Damage( other than fire) to the surrounding property of the insured described in the schedule.

3. Liability of the insured at law on account of :

a. Death of or bodily injury to any person ( other than a person under a contract of service or aprenticeship with the insured.

b. Damage to propertry not belonging to the insured or held in trust or on commission nor for which he is responsible caused by and solely due to explosion or collapse as hereinafter defined of the Boiler /s/ and or otherppressure plant occuring in the course of ordinary

b. 1. Energy losses.

2. losses due to Radiation.

3. convection losses

4. Damages to property

5. Death of persons nearby

c. 1. Property explosure.

2. construction/eruction

3. Delay in startup risk

4. Third party liability exposure

5. Business interuption resk

D. Differences are following:

1. Contractors risk policies are against distruction or damage of projects like office , hospitals, channels, tunnels etc. it is for protecting civil contractors for protecting damage of the projects.

Erruction all all risk policies are against losses involving installation or construction of plants, machenery etc.

2. Contractors policies are mainly for their work. and erruction risk policies cover all losses including fire, theft, burglary etc

3. contractors policies are mainly for civil engineering projects. but erruction policies include collapse or damage due to foreign objects

4. Contractors, purchaser or owner or company can take the policy. Suppliers or manufactures or sub contractors can take Erection all risk policies

5. contractors policies cover more than 50 5 percent of the total contract value. while erruction policies cover the entire projects value

1.