Electronic Equipment Insurance (EEI)

The term electronic equipment is used for all systems which generally require very low voltage and power. These equipment are generally quiet in their operation.

EEI Policy protects the Owner, Lessor or Hirer (where responsible either legally or through a leasing agreement) of electronic equipment.

EEI Policy is Suitable for all electronic equipment (some examples):
Computer and allied peripherals

Auxiliary equipment's like UPS, Voltage Stabilizer etc.

Medical, Biomedical, Equipment's e.g. Cath Lab, ray Machine, Ultrasound machines, MRI, CAT scan Machines

Audio/Visual equipment's

Electronic control panels

Telecommunication and navigational equipment's

Electronic equipment for research and material testing

The term equipment shall include the entire computer system consisting of CPU, Keyboards, Monitors, Printers, Stabilizers, UPS etc.
The value of Software can be covered under this policy.

It can cover movable and portable electronic equipment's also.

Scope Of Cover
The Policy is divided into 3 sections as under:
This Section covers the accidental damage to the insured equipment against All Risks, namely:

Fire, Lightning, Explosion/Implosion, Aircraft Damage, Riot, Strike, Malicious and Terrorism Damage, Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood and Inundation, Impact Damage, Subsidence Land slide, Rock slide, Bursting and/or overflowing of Water Tanks, Apparatus and Pipes, Missile Testing operations, Leakage from Automatic Sprinkler Installations, Bush Fire (Fire & Allied Perils)
Electrical & Mechanical Breakdowns
Burglary & Theft
Negligence, Lack of Skill, Carelessness

In short, the cover provided is for damage caused by unforeseen and sudden physical loss or damage from any cause (other than those specifically excluded- explained in subsequent paragraphs) in a manner necessitating repair or replacement.

This Section covers Loss/Damage to external Data Mediai.e. Tapes, Discs, magnetic drives etc. caused by any peril as mentioned earlier in Section-I.
The cost of restoration of the stored data can also be covered (provided backup system is available)

Increased cost of working (ICOW) for use of substituted electronic equipment for continued data processing following indemnifiable damage to insured electronic equipment can be covered under this Section.

WARRANTY
It is imperative that a Preventive Maintenance Agreement be in force during the currency of the policy far all electronic equipment with a sum insured exceeding Rs.1.0 Lakh.

No variation in the terms of the Preventive Maintenance Agreement shall be made, during the policy period, without the written consent of the Company.

The word Maintenance shall mean the following -
Safety checks,

Preventive maintenance

Rectification of loss or damage or faults arising from normal operation as well as from ageing.

The Warranty relating to Maintenance Agreement under the policy can be waived by charging additional premium

Wherever, the competent In House maintenance facility is available, the warranty relating to Maintenance Agreement with the manufacturers of the equipment's can be deleted for all electronic equipment's except Medical equipment.

Significant General Exclusions:
Some General Exclusions are loss/damage caused by:
Inherent Vice

Manufacturer's Responsibility

Willful Act

Cessation of work whether total or partial

War perils

Nuclear Perils

Derangement not accompanying a damage otherwise covered by this policy

Significant Exclusions to Section 1 (Equipment's):
Deductible stated in the Schedule

Faults/defect existing at the commencement of the present insurance and within the knowledge of the Insured.

Wear and tear losses

Cost incurred in connection with the elimination of functional failure

Maintenance Costs

Aesthetic defects

Consequential loss of any kind.

Loss / damage falling under the terms of the Maintenance agreement

Loss / damage where the manufacturer or supplier is responsible

Loss / damage where the owner is responsible (rented equipment)

Significant Exclusions to Section 2 (External Data Media)
Deductible stated in the Schedule

any costs arising from false programming, punching, labeling or inserting, inadvertent canceling of information or discarding of data media, and from loss of information caused by magnetic fields

consequential loss of any kind or description whatsoever.

Significant Exclusions to Section 3 (Increased Cost of Working- (ICOW))
Costs incurred for use of substitute equipment during the Time Excess

Costs for replacement of data media, data and regeneration of data (can be covered under Section 2 External Data Media)

Costs arising out of circumstances, which are not connected with the insured material damage. For example, additional costs arising out of -
bodily injuries,

orders or measures imposed by any public authority,

expansion and improvements of the equipment's,

Lack of funds causing delay in repairs or replacement

Any other consequential loss such as loss of market or interest.

Sum Insured:

Equipment's:
New Replacement Cost including Freight, Customs Duties & Erection Costs. The sum insured shall include the value of software (purchased along with the equipment or acquired subsequently).

External Data Media
Replacement Cost of Empty Data Media (new)

Cost of Reproducing the Lost Data

Increase Cost Of Working

1. Rental Charge of substitute Electronic System

Indemnity Limit per computer working hour

Indemnity Limit of hours per Occurrence

Aggregate Indemnity Limit per Occurrence