Machinery Breakdown Clause

MACHINERY BREAKDOWN CLAUSE (Limit Rp. 2,000,000,000.- each and every Loss) #

It is hereby declare and agreed that notwithstanding anything contained herein to the contrary this policy extends to indemnify the insured for damage to machinery occasioned by or happening through any mechanical, electrical, electromechanical, electronic or hydraulic malfunction, failure derangement, breakdown or non operation of any kind except as otherwise specifically excluded.

Exclusions

The Insurer shall not be liable for :

1. The deductible stated in the schedule to be borne by the insured in any one occurrence; if more than one item is loss or damage in one occurrence, the Insured shall not, however, be called upon to bear more than the highest single deductible applicable to such items;
2. Loss or Damage to Exchangeable tools, e.g; dies, moulds, engraved cylinders, parts which by their use and/or nature suffer a high rate of wear of depreciation, e.g. refractory linings, crushing hammers, objects made of glass, belts, ropes, wires, rubber tyres, operation media, e.g. lubricants, fuels, catalysts;
3. Loss of Damage due to fire, direct lightning, chemical explosion (except flue gas explosions in boilers), extinguishing of a fire or subsequent demolition, aircraft or other aerial devices or articles dropped therefrom, theft, burglary or attempts thereat, collapse of buildings, flood, inundation, earthquake, subsidence, landslide, avalanche, hurricane, cyclone, volcanic eruption or similar natural catastrophes;
4. Loss or Damage for which a supplier, contractor or repairer is responsible either by law or under policy within the knowledge of the Insured or his representative, whether such faults or defects were known to the insurers or not;
5. Loss or Damage caused by any faults or defects existing at the time of commencement of this policy within the knowledge of the Insured or his representatives, whether such faults or defects were known to the insurers or not;
6. Loss or damage arising out of the willful act or gross negligence of the Insured or his representative;
7. Any consequence or war, invasion, act or foreign enemy, hostilities (whether war be declared or not), civil war rebellion, revolution, insurrection, mutiny, riot, strike, lock-out, civil commotion, military or usurped power, acts of a group of malicious persons acting of behalf of or in connection with any political organization, confiscation, commandeering, requisition or destruction of or damage to property by order of any government de jure or de facto or by public authority;
8. Any consequence of nuclear reaction, nuclear radiation or radioactive contamination;
9. Loss or Damage as a direct consequence of the continual influence of operation (e.g. wear and tear, cavitations, erosion, corrosion, rust, boiler scale);
10. Consequence loss or liability of any kind or description, any payments over and above the indemnity for material damage as provided herein;

In any action, suit or other proceeding where the Insurers allege that, by reason of the provision of Exclusion  7 above, any loss or damage is not covered by this policy, the burden of proving that such loss or damage is covered shall be upon the Insured.