Boiler Explosion Insurance Policy (BEI)

BEI policy is designed for boilers in industries and factories. It provides cover for boilers and pressure vessels due to explosion or implosion. The policy also covers damage to surrounding properties and liabilities for injury to third parties or damage to third party property.

What can be Insured

This insurance policy covers the inherent risks posed by explosion of boiler and pressure vessels. Explosions are broadly classified under two categories - chemical and physical.

Chemical explosions arise from chemical reactions initialised by inflammable fluids and dusts when their concentration in the surrounding atmosphere exceeds their physical limitations.

Physical explosions can occur owing to steam pressure and due to variations in the pressure of fluids. No chemical reactions can be attributed to them.

Suitable for...

This insurance policy is essential for all manufacturing units and industries that employ the use of boilers and pressure vessels.

Owing to the intrinsic risk posed by explosions, government authorities require every pressure plant and steam boiler to be inspected and certified annually to ensure the safety and efficiency of the working conditions and environment in general.

However, inspection cannot always detect hidden trouble spots or inaccessible defects. Nor can it predict or prevent accidental failure of safety devices. 

The damage caused by an explosion can have a devastating effect even in the best maintained installation so the need for insurance cover is furthermore emphasised.

Risks covered

This insurance policy covers special vessels, fired and unfired against the risks of 

• Explosion and collapse.
   
• Damage to the boiler and/ or pressure plants.
   
• Damage to surrounding property of the insured, owned in trust or held in commission.
   
• Liability of law on account of death or bodily injury to any third party.
   
• Damage to the property of the third party.

Compensation Offered

The insurance policy will indemnify any loss to the extent of the present day replacement value of the boiler. 

Additional coverage for surrounding property of the owner and third party personal and property liabilities is also available on payment of extra premium.

Furthermore, the policy will pay only if certain warranties are in force during the accident:

• Boilers are annually inspected by the inspectors appointed by the appropriate Government except where there is no statutory requirement for governmental inspection, the inspections have to be carried out by an independent competent person.
   
• Boilers must be operated by licensed, qualified attendants.
   
• The insured must possess the unqualified permission in writing of the competent inspecting authority to operate the boiler.

Exclusions

The insurance policy will never indemnify any loss if the claim arises from:

• Loss or damage arising from fire and allied perils which can be covered separately.
   
• Damage by chemical explosion except in recovery boilers and waste heat boiler.
   
• Contractual liability, manufacturer's/ supplier's liability, consequential loss of use of boiler.
   
• Loss arising from an existing defect.
   
• Loss due to gross negligence or any willful act or willful neglect on the part of the insured.
   
• Failure of individual tubes.
   
• Wearing, wasting of boiler materials, growing or fracturing any part of the boiler, general deterioration, etc.

Here you will be able to seek information and request quotation on line