Engineering Insurance

Resumen

Behind every factory, every high rise going up in Lagos and every power station humming in the background sits a class of cover most people never notice: engineering insurance. It is what pays when a steam boiler bursts, when a generator seizes, or when a half built bridge is swept away in a flood. Ordinary fire and burglary policies deliberately leave these risks out, so a whole family of engineering policies grew up to fill the gap.

In this lesson you will meet the main types: boiler and pressure plant, machinery breakdown, contractors' all risks and erection all risks. You will learn exactly what each one covers, why an inspection engineer keeps calling on the insured, who actually buys these policies, and how to work an engineering claim through average and an excess. Master it and you hold marks that many candidates simply leave on the table.

Objetivos

  1. Identify the types of engineering insurance, including boiler, machinery and contractors' all risks
  2. Explain the scope of cover under each type of engineering policy
  3. Explain the role of periodic inspection in engineering insurance
  4. Identify the typical buyers of engineering insurance

Nota de la lección

A palm oil mill outside Aba runs a steam boiler day and night. One morning the boiler bursts, wrecking the plant and stopping production for weeks. The owner reaches for his fire policy and is told, politely, that it does not respond: a standard fire policy pays for fire, and the bursting of a boiler by its own steam pressure is a different peril that fire cover specifically excludes. What he needed was an engineering policy. Engineering insurance is the branch built for machines and construction, the risks that fire and burglary cover leave untouched, and it is examined in WAEC as one of the non-life products every candidate must be able to name and explain.

Evaluación de la lección

Felicitaciones por completar la lección del Engineering Insurance. Ahora que has explorado el conceptos e ideas clave, es hora de poner a prueba tus conocimientos. Esta sección ofrece una variedad de prácticas Preguntas diseñadas para reforzar su comprensión y ayudarle a evaluar su comprensión del material.

Te encontrarás con una variedad de tipos de preguntas, incluyendo preguntas de opción múltiple, preguntas de respuesta corta y preguntas de ensayo. Cada pregunta está cuidadosamente diseñada para evaluar diferentes aspectos de tu conocimiento y habilidades de pensamiento crítico.

Utiliza esta sección de evaluación como una oportunidad para reforzar tu comprensión del tema e identificar cualquier área en la que puedas necesitar un estudio adicional. No te desanimes por los desafíos que encuentres; en su lugar, míralos como oportunidades para el crecimiento y la mejora.

  1. Which policy covers the sudden bursting of a steam boiler in a factory? A. Fire and special perils insurance B. Boiler and pressure plant insurance C. Fidelity guarantee insurance D. Marine hull insurance Answer: B
  2. Contractors' all risks insurance is bought mainly by: A. Private motorists B. Building and civil engineering contractors C. Life assurance offices D. Poultry farmers Answer: B
  3. A power company installing a new gas turbine at its generating station should take out: A. Erection all risks insurance B. Burglary insurance C. Personal accident insurance D. Fidelity guarantee insurance Answer: A
  4. A machine is insured for 30,000,000 naira under a machinery breakdown policy with an excess of 1% of the sum insured. A breakdown costs 1,000,000 naira to repair. How much will the insurer pay? A. 1,000,000 naira B. 970,000 naira C. 700,000 naira D. 300,000 naira Answer: C
  5. The periodic inspection that accompanies engineering insurance is mainly intended to: A. Increase the premium each year B. Prevent loss and meet the legal duty to examine the plant C. Help the insurer avoid paying every claim D. Replace the need for a proposal form Answer: B

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