Electronic Equipment Insurance Policy

Scope of Cover

There are three sections under this policy.

Section 1 (Material Damage)

This policy covers unforeseen and sudden physical loss or damage to the insured equipment from any cause other than those excluded.

Excluded : Aircraft damage, corrosive gases, water and humidity, short circuit and other electrical causes, faulty operation, lack of skill, gross negligence, design, manufacturing, assembly and erection faults, defects in casing, workshop error, bad workmanship, malicious act, burglary/theft. Note: Unless specifically indicated in the Policy Schedule or by extension clause the above are not covered.

Section 2 (External Data Media)

Loss and damage of Data media specified in the Schedule is covered under this Section. The policy covers for the cost of replacing the data media and those for reprocessing the stored data. Such loss or damage of Data media only covered when there is a loss or damage suffered under Section 1 material damage. However loss of information and programming caused by magnetic fields is excluded.

Section 3 (Increased Cost of Working)

Additional expenses will arise out of the computer breakdown and arrangements for hiring computing facilities as well as additional increase in cost of working may become necessary. This coverage is only provided if Section 1 and Section 2 is covered.

Sum Insured

The Sum Insured under Section 1 should always represent the replacement value of computers i.e. the value of a comparable new item plus customs duties, transportation and installation charges. The sum insured under Section 2 to be specified as sum set to cover the cost arising for reprocessing the stored data.


The policy is subject to a minimum amount of deductible (Section 1 and Section 2 )

Interest Insured

All electronic equipment which generally have a moderate power requirement e.g.

  1. Communication equipment, telephone, teleprinters, radio communication apparatus, equipment in ground stations, radio and television transmitter, communal aerial devices, facsimile recorders
  2. Electronic data processing (EDP) equipment including the central and peripheral units
  3. External data media punched cords, tapes, magnetic tapes and discs
  4. Miscellaneous equipment.

Extensions Available

  1. Strike, Riot and Civil Commotion
  2. Overtime, Night Work and Express Freight (on the Section 1 – the insured have to include and provide Sum Insured for expenditure expenses than this clause could be extended)
  3. Theft
  4. Earthquake, Hurricane, Cyclone and Typhoon.


Refer to the Company

Minimum Premium