MBD - RAW MILL

 Machinery Breakdown Claim:

 Property Effected: Gear Box of a Raw Mill.

 Nature of Loss: Breakdown due to shearing of bolts of grinding table.
 Estimate of Loss: 1.00 Crore.
 Description:

Claim was lodged with Insurer for Breakdown, surveyor was appointed for
survey. During survey it was found that cause of breakdown is shearing of bolt.
OEM was involved in the investigation and as commented in their report they
were of the opinion that the bolts must have broken due to improper tightening
and existence of gap between two surface. Surveyor/ Insurer took a stand that
it is a case of gradual deterioration and same is an excluded peril under this
policy.
 Issues involved:

• Admissibility of claim.
MBD - RAW MILL
 Our Submissions:

a). Final Certification along with Test reports with output parameters at the time of handing over
the raw mill, which substantiated a clean handover where possibility of hidden damage is remote.

b). Routine maintenance schedule in terms of time frame and deliverables as per the Manual, to
substantiate that the same was followed throughout the period of operation for the 17 months.

c). A data on efficiency of Raw mill achieved during this 17 months, to demonstrate that there
cannot be any inherent/latent defect carried forward for so long.

d). Insured/ Aon version of cause of loss is “the grinding table & Gearbox bolts got loosened in
operation and got sheared due to high shear load. The grinding table & Gearbox top flange were
knocking to each other & the grinding table got tapered in shape.

 Conclusion:

 Insurer reiterated their stand.