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Sum Insured
The sum insured is to be declared as annual gross profits estimated during the policy period.
This can be arrived at by either considering gross profits on difference basis which is Revenue - Variable Expenses or additions basis which is Net Profit + Standing Charges. |
Premium
The premium will depend on the following factors:
 | Replenishment time required for equipment’s |
| Availability of spare equipment |
| Criticality of the equipment |
| Your contractual arrangements with Suppliers |
| Replacement time |
| Ability to make up for the loss |
| Your profit forecasting pattern |
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Significant Exclusions
The underlying Material Damage policy for this MLOP cover would be Machinery Breakdown policy. Hence all the exclusions of the Machinery Breakdown policy would be applicable for MLOP cover.
The major exclusions would be fire and allied perils, theft & burglary, nuclear perils, radioactive/ionisation perils, wear & tear.
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Excess
The policy will have an excess in terms of days for each and every loss. |
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