Electronic Equipment Insurance Policy

Electronic Equipment Insurance Policy

Electronic Equipment Insurance provides coverage for accidental, unforeseen, and sudden physical loss or damage to electronic equipment, including system software. This policy is all-encompassing, shielding against any cause or peril that is not explicitly excluded under its terms. It encompasses an all-risk policy, addressing damage or loss to equipment, data media, and Increased Cost of Working (ICOW).
The term "equipment" in this context includes the entire computer system, comprising CPU, keyboards, monitors, printers, stabilizers, UPS, and more. This policy is suitable for various types of electronic equipment, including computer peripherals, auxiliary devices like UPS and voltage stabilizers, medical and biomedical equipment (such as Cath Labs, X-ray machines, ultrasound machines, MRI, CAT scan machines), audio/visual equipment, electronic control panels, telecommunication and navigational equipment, as well as electronic equipment utilized in research and material testing.

Scope of Cover:

The Policy is divided into 3 sections as under:

Segment I:

This section offers coverage for damages resulting from unforeseen and sudden physical loss or damage, irrespective of the cause, except for those explicitly excluded, necessitating repair or replacement. It operates on an "All Risks" basis, encompassing:

  • According to the Fire and Special Perils Policy, coverage is provided for events such as Fire, Lightning, Explosion/Implosion, Aircraft Damage, Riot, Strike, Malicious and Terrorism Damage, Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood and Inundation, Impact Damage, Subsidence, Landslide, Rock slide, Bursting and/or overflowing of Water Tanks, Apparatus and Pipes, Missile Testing operations, Leakage from Automatic Sprinkler Installations, and Bush Fire.
  • Breakdowns in electrical and mechanical systems.
  • Break-ins and theft.

Segment II:

This section encompasses loss or damage to external data media, such as tapes, discs, magnetic drives, caused by any peril mentioned in Section-I. The expenses for restoring the stored data can also be included, provided a backup system is available.

Segment III:

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.

Key Highlights:

  • The policy is available for purchase by the owner, lessor, or hirer (when responsible either legally or through a leasing agreement) of electronic equipment.
  • This policy can provide coverage for the value of software.
  • Insurance is available for movable and portable electronic equipment as well.
  • The Preventive Maintenance Agreement must be active throughout the policy duration for all electronic equipment with a sum insured surpassing Rs. 1.0 Lakh.
  • The term "Maintenance" encompasses safety checks, preventive maintenance, and addressing losses, damages, or faults arising from normal operation as well as aging.
  • The warranty pertaining to the Maintenance Agreement for medical equipment cannot be waived, even if there is an in-house maintenance facility available.
  • Every piece of equipment must possess a serial number or any identification mark, and this information should be included in the policy.

Entirety Back up arrange:

The Entirety Safety net provider for each secured thing ought to reflect the Unused Substitution Taken a toll .

Equipment:The New Replacement Cost covers freight, customs duties, and erection costs. The sum insured encompasses the value of software, whether purchased simultaneously with the equipment or acquired later.

External Data Media:The Replacement Cost includes new empty data media, plus the expense of reproducing the lost data.

Increased Cost of Working:You can choose the Sum Insured individually for each item under this section based on the following:

  • The rental fee for a replacement electronic system.
  • Compensation limit per 'computer working hour.
  • Compensation limit for 'hours per occurrence.'
  • Overall compensation limit per occurrence.
  • Personnel expenses: Choose appropriate limits.
  • ransportation costs: Select desired limits.

Incorporate on covers open:

  • Expedited freight.
  • Air freight.
  • Additional customs duty.
  • Third-party liability.


Exclusions applicable in general involve loss or 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.

Avoidances to Segment 1 Supplies:

  • Deductible indicated within the plan ..
  • Absconds or deficiencies display at the begin of the current protections period and known to the guarantor .
  • Wear and tear misfortunes .
  • Costs related to correcting useful disappointments .
  • Maintenance Costs.
  • Coincidental misfortune of any nature.
  • Misfortune or harm secured by the conditions of the upkeep understanding .
  • Misfortune or harm for which the producer or provider bears duty .
  • Misfortune or harm for which the duty lies with the proprietor within the case of leased hardware .

Denials to Range 2 Exterior Data Media:

  • Deductible indicated within the plan.
  • Expenses incurred due to incorrect programming, punching, labeling, or insertion, accidental cancellation of information or discarding of data media, and loss of information caused by magnetic fields are not covered.
  • Incidental loss of any nature or description whatsoever.

Prohibitions to Segment 3 Expanded Taken a toll of Working ICOW:

  • Expenses accrued for utilizing alternative equipment during the time excess.
  • Expenses related to replacing data media, data, and data regeneration can be covered under Section 2 - External Data Media.
  • Any additional incidental loss, such as a loss of market or interest.