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MLOP
MLOP
MLOP
Exceptions :
1. Excess
2. Property on which Insured has no direct Insurable
Interest.
INTERESTS
BANK CHARGES & GUARANTEE COMMISSION
WAGES, INCLUDING STATE INSURANCE, CONTRIBUTIONS, EITHER TO
- ALL EMPLOYEES OR
- EMPLOYEES OF SPECIFIED CATEGORIES
- EXTENT OF CERTAIN % OF WAGE ROLL
SALARIES
PROVIDENT FUND, BONUS, SUPER ANNUATION, FAMILY PENSION,
GRATUITY, PERKS, OTHER BENEFITS & STAFF WELFARE
RENT RATES & TAXES
DUTIES, LICENSES & PATENT FEES
DIRECTORS’ FEES & REMUNERATION
PENSIONS
DEPRECIATION
ADVERTISEMENT & PUBLICITY
…contd
REPAIRS & RENEWALS CHARGEABLE TO REVENUE ACCOUNT
CONVEYANCE, STATIONERY, POSTAGE, TELEX, TELEPHONE,
TELEGRAM, TELEPRINTER & COMPUTER EXPENSES
INSURANCE PREMIUM
R&D EXPENSES OF REGULAR NATURE
HEATING, LIGHTNG & POWER CHARGES OTHER THAN IN
PRODUCTION BLOCKS INCLUDING MINIMUM CHARGES
BAD DEBT RESERVE
SUBSCRIPTIONS TO TRADE ASSOCIATIONS, MAGAZINES &
REGULAR DONATIONS TO CHARITIES
LEGAL, AUDITING & OTHER PROFESSIONAL FEES OF A REGULAR
NATURE
MISCELLANEOUS EXPENSES UPTO 5% OF INSURED STANDING
CHARGES
MLOP is subject to minimum time excess of 3 days. In
case of continuous process plants the minimum time
excess is 7 days
Insured can opt for higher time excess and can avail
discount in premium.
Machinery whose breakdown can be repaired within the
time excess may be opted out of the MLOP Policy.
1. Mb & MLOP covers with same underwriter
2. Risk situated within the country.
3. Risk Assessment
Prototype Machinery
Machines older than 30 years
Machines with a service life shorter than 5 years
New machinery and equipment unless testing,
commissioning and start up periods after installation have
been completed satisfactorily.
Normal
On account of Important Material changes in the risk
RATING FACTORS
Basic rate for each type of machine
B.R. = Fav. x Pav. x fc
Where
B.R. = Basic Rate
Fav. = Average annual Loss Frequency
= No. of all indemnifiable losses
Years of operation of the plant
Pav. = Interruption periods of all machines
- No. of indemnifiable losses of above –mentioned
machines
Fc. = Insurer’s cost factor.
Since the elements constituting basic rate are on ‘year
basis’, they are to be applied on ‘Annual Sum Insured
only’.
Pav. = Average interruption period (in years).
1. Relative Importance
% effect which a complete standstill of an individual
machine, set of machines, production line or plant
would have on the gross profit insured during the
entire period of insurance disregarding any loss
minimisation measures.
To be reviewed from the questionaire or flow sheet.
Most essential factor for realistic premium
calculations.
33-1/3
I 100% 33-1/3
100%(Parallel)
fage = 1 + (0.05 n)
For time excess > 7 days, these rates are adjusted and
grouped as per
indemnity periods.
Falling above :-
a) Claim may not be payable.
b) Whatever payment made by the Insurance Company
shall be refunded.
II. Company has the right to take over and control all
necessary repairs.
Fraud
Contribution
Arbitration
Termination of Insurance
Except in case of arbitration the claim shall be payable.
OR