Machine insurance

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A machinery insurance are used to safeguard companies against the risk of costs of repair or replacement of damaged machinery and equipment.

Subject of the insurance

According to the General Conditions for Machine Insurance (AMB 2011), machine insurance offers protection against " unforeseen damage " to machines. The machine insurance is an all-risks insurance. The machines covered by the contract are therefore insured against all potential damage regardless of the cause, unless individual dangers are expressly excluded in the contract. The damage must be property damage.

Insurance cover exists for all machines (parts) specified in the insurance contract at the specified insurance location.

Insurance benefit

In the event of partial damage, the restoration costs will be reimbursed, minus the value of the old material resulting from the repair and the agreed deductible. The insurer can also make a “new for old” deduction. Partial damage occurs when the restoration costs are lower than the current value of the damaged machine. The current value results from the new value minus the value reduced by wear and tear. The policyholder does not need to have the machine repaired in order to receive the replacement service.

In the event of a total loss, the insurer will replace the current value minus the value of the old material and the agreed deductible. A total loss exists if the restoration costs exceed the current value of the insured item immediately before the damage occurred.

Exclusions

Pure cosmetic damage is not covered by the scope of insurance, provided that the damage does not affect technical usability. Financial losses are also excluded from the scope of protection. In addition, damage resulting from the direct operational use of an insured machine (wear and tear) is also not insured.

Standard exclusions also include damage due to nuclear energy, terrorism, and war and war-like conditions. Damage caused by natural hazards (floods, earthquakes, etc.) are also often excluded by contract.

Theft of the machine does not constitute property damage and is not insured. However, if a thief damages the machine, this damage is covered by insurance.

If the insurer refuses to pay due to an exclusion, it has to explain and prove that the damage occurred due to an excluded risk.

Duration of insurance coverage

In the insurance contract, the point in time from which the insurance cover takes effect is usually specified. This assumes that the machine is operational.

On the one hand, the insurance contract can end due to the passage of time. On the other hand, both parties have the right to unilaterally terminate the contract after a loss event (loss event termination). After a claim, the insurer often only offers an extension of the insurance cover against an increased premium. The termination of a claim can be contractually excluded.

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