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💻⚡ Engineering Insurance· Electronic Equipment· All Risks Basis· 3 Sections· the insurer Engineering

Protecting Every Server, Screen and Scanner — From Short Circuits to Monsoon Floods — IT· Medical· Broadcasting· Manufacturing —
Electronic Equipment Insurance (EEI), the insurer

the insurer's EEI Insurance covers computers, bio-medical equipment, X-ray machines, audio/video systems, and all microprocessor-based equipment on an all-risks basis. Section I (Equipment Hardware), Section II (External Data Media), Section III (Increased Cost of Working). The only engineering product covering both external damage AND internal electronic breakdown.

✅ All Risks — Section I Equipment Hardware ✅ Section II — External Data Media ✅ Section III — Increased Cost of Working ✅ Short Circuit· Power Surge· Humidity ✅ Computers· Medical· X-ray· A/V· Lab ✅ Terrorism Risk Also Covered (the insurer)
4th Engineering Product· First Digital Product in Series· India's ₹155B Electronics Market  |  IRDAI Licensed Broker — Lic. No. 528
EEI
💻Engineering Category· 4th Engineering Product· First Digital
Double Coverage — External Damage + Internal Breakdown
🏥Medical Equipment AMA Mandatory· the insurer Confirmed
📞EEI Insurance Quote 022 4302 0000
An IRDAI Licensed Insurance Broker

the insurer Engineering· 4th Engineering Product· First Digital· All Risks· 3 Sections

What is Electronic Equipment Insurance (EEI)?

EEI is the only engineering insurance product covering BOTH external physical damage (fire, flood, theft) AND internal electronic breakdown (short circuit, power surge, humidity damage) for electronic equipment. It is the series' pivot from physical construction to the digital world.

🏛️

Confirmed from

  • What it is:"This is issued on All Risk basis to cover computers, bio-medical equipment, X-ray equipment, Audio/Video equipment, micro processor equipment etc. Rates are tariffed."
  • Three Sections:Section I — Equipment hardware (all risks). Section II — External data media (EDP). Section III — Increased cost of working (loss of profit policy).
  • Terrorism:"Terrorism risk is also covered" Issued along with Maintenance Agreement clause.
  • Extra covers:"Extra covers are available for overtime, night works, and work on public holidays by charging additional premium."

The "Double Coverage" Insight — What Makes EEI Unique in Engineering

  • Fire Insurance:Covers fire, flood, theft — but NOT internal breakdown, short circuit, humidity, or power surge. Your server room flooding is covered, but a voltage spike frying the servers is not.
  • Machinery Breakdown (MBD):Covers internal mechanical/electrical breakdown — but NOT fire, flood, or theft. The inverter failing internally is covered, but flood destroying it is not.
  • EEI (this product):Covers BOTH. Short circuit from monsoon-caused power fluctuation AND flood inundation of server room AND theft of equipment — all under one policy. This double coverage is EEI's defining feature.
  • India context:"In a country like India where voltage spikes, heavy water logging during monsoons and sudden power cuts are the order of the day, safeguarding your electronic infrastructure can be no less than a tactical move.".
Key Features
🛡️

All Risks Basis

Every peril covered unless excluded. Both external physical damage AND internal electronic/mechanical breakdown. Most comprehensive engineering policy.

Double Coverage
💻

Section I — Equipment

Physical damage to hardware — computers, medical equipment, X-ray, audio/video, servers. SI = present day replacement value including freight, customs, installation.

All Risks Hardware
💾

Section II — Data Media

External data storage media — tapes, disks, USB. Cost of blank media PLUS cost of reproducing lost information. Only System Software covered, not Application Software.

Data Reconstruction
🔄

Section III — Business Continuity

Increased Cost of Working — pays for substitute equipment hire, outsourced processing, extra costs to maintain operations while primary equipment is being repaired.

Continuity Cover
🔧

AMA = Premium Variable

Annual Maintenance Agreement status directly determines your premium rate — from 1.25% (with AMA) to 2.50% (without). No other engineering product works this way.

Unique in Series
🏥

Medical Equipment Special

Bio-medical equipment, MRI, CT scanner, X-ray — all covered. Medical equipment MUST have AMA — in-house maintenance NOT accepted as substitute. the insurer confirmed.

AMA Mandatory

Section I — Hardware· Section II — Data Media· Section III — Business Continuity

Three Sections — The Most Comprehensive Engineering Structure

EEI is the only engineering product in this series with three sections. EAR, CAR, and CPM all have two sections. EEI's three-section structure reflects its broader scope — protecting the equipment, the data stored on it, and the business operations that depend on it.

Section I

💻 Equipment / Hardware

All risks basis — physical damage to the equipment itself
  • → Fire, lightning, explosion, aircraft damage
  • → Riot, strike, malicious damage, terrorism
  • → Theft and burglary
  • → Accidental impact, dropping, falling objects
  • → Smoke, soot, dust, corrosive gases
  • → Water and humidity damage
  • → Short circuit and arcing
  • → Voltage fluctuation and power surge
  • → Failure of safety devices
  • → Faulty operation, lack of skill
  • → Earthquake, flood, storm, cyclone
  • → Landslide, rockslide, subsidence
SI = Present Day Replacement Value + Freight + Customs + Installation
Section II

💾 External Data Media (EDP)

Optional — the data stored on damaged/destroyed media
  • → External data storage: tapes, disks, USB drives
  • → Backup media and removable storage
  • → Cost of the blank media itself
  • → Cost/charges to REPRODUCE lost information
  • → Data reconstruction expenses
  • → System Software: ✅ COVERED (OS, BIOS, firmware)
  • → Application Software: ❌ NOT covered (MS Office, SAP etc.)
  • → X-ray/CT Scanner: ❌ Section II NOT applicable
SI = Cost of data media + charges for producing/reproducing information
Section III

🔄 Increased Cost of Working

Optional — business continuity while equipment is being repaired
  • → Additional costs to continue operations during repair
  • → Cost of hiring substitute/rental equipment
  • → Outsourcing processing to alternate service providers
  • → Extra labour, courier, or operational costs
  • → Only costs ABOVE normal operating costs covered
  • → Duration: until insured equipment is restored
  • → X-ray/CT Scanner: ❌ Section III NOT applicable
  • → Indemnity period: defined in policy schedule
SI = Present day replacement value of CPU + printer + stabiliser + UPS

⚠️ Critical: Derangement Without Physical Damage Is EXCLUDED

From a ₹50K Laptop to a ₹15Cr MRI Machine

Equipment Covered — Every Electronic System in Your Business

"This is issued on All Risk basis to cover computers, bio-medical equipment, X-ray equipment, Audio/Video equipment, micro processor equipment etc." As long as the equipment is electronic, functional and in current use, it qualifies for EEI coverage.

💻

Computers & Peripherals

₹30K – ₹5L per unit

Desktops, laptops, workstations. Printers, scanners, plotters. UPS, stabilisers, power conditioners — all covered. India: 5th largest PC market globally.

🖥️

Servers & Mainframes

₹2L – ₹500 Cr (data centre)

Rack servers, blade servers, mainframes. Storage Area Networks (SAN), NAS. Critical for IT companies, banks, e-commerce. One server failure = lakhs in loss per hour.

🔗

Networking Infrastructure

₹50K – ₹50L

Routers, switches, firewalls, load balancers. Network hubs, modems, wireless access points. Critical for fintech, banking, BPO operations.

🏥

Bio-Medical Equipment

₹5L – ₹50 Cr per unit

ECG machines, patient monitors, ventilators, infusion pumps, dialysis machines, defibrillators. AMA with OEM is MANDATORY — in-house maintenance not accepted for medical equipment.

⚠️ AMA with OEM mandatory
☢️

X-Ray & Imaging

₹5L – ₹2 Cr

X-ray machines, fluoroscopy, C-arm systems. CT Scanners: special X-ray endorsement must be attached. NOTE: Section II and III NOT applicable to X-ray/CT scanner equipment.

⚠️ X-ray endorsement required
🧲

MRI Machines

₹2 Cr – ₹15 Cr

1.5T, 3T MRI systems. Open MRI, standing MRI. Most expensive single item in EEI. Superconducting magnet + electronics — highly vulnerable to power fluctuations. AMA MANDATORY.

⚠️ AMA mandatory — highest value item
📡

Broadcasting & Telecom

₹10L – ₹10 Cr

TV studio equipment, broadcast cameras, OB vans, transmission equipment. Radio broadcasting. Telecom switching, DTH headend equipment. Doordarshan, news channels, private broadcasters.

🔬

Laboratory Equipment

₹2L – ₹5 Cr

Spectrometers, chromatographs, PCR machines, gene sequencers, electron microscopes. Pharma research, biotech labs, forensic labs. ICMR, CSIR, private research institutions.

📹

CCTV & Surveillance

₹50K – ₹5 Cr

CCTV cameras, DVR/NVR systems, IP surveillance infrastructure, video management systems. Banks, airports, factories, smart city surveillance. Power surge is top claim cause.

🏭

Process Control Systems

₹5L – ₹50 Cr

PLCs (Programmable Logic Controllers), SCADA systems, industrial automation controllers, DCS systems. Manufacturing — automotive, pharma, food processing. Failure = production stoppage.

🎵

Studio & Recording

₹5L – ₹5 Cr

Digital audio workstations (DAW), mixing consoles, recording equipment, cinema sound systems. Film post-production, music studios, OTT content creators. India's $28B media industry.

🏫

Educational Equipment

₹50K – ₹5 Cr

Computer labs, smart boards, e-learning infrastructure, campus networking. Universities, IITs, IIMs, school chains. National Education Policy (NEP) driving massive EdTech investment.

☢️

CT Scanner / X-ray Special Condition — the insurer Confirmed

"X-ray tubes fitted to C.T. Scanners: X-ray endorsement must be attached to the EEI policy. The rates and other terms of the policy are the same as those of computers. Section II and III are not applicable to these equipments." — the insurer. Always ensure the X-ray endorsement is specifically added to your EEI policy when insuring CT scanners, X-ray machines, or fluoroscopy equipment. Without it, X-ray equipment damage claims may be disputed. Call 022 4302 0000 to ensure correct endorsement is attached.

Annual Maintenance Agreement· The Only Premium Variable in 50+ Series

The AMA Factor — Your Maintenance Contract = Your Premium Rate

EEI is the ONLY product in the 50+ series where the premium rate depends on your maintenance contract status. An Annual Maintenance Agreement (AMA) with OEM/authorised service provider is a POLICY WARRANTY — not just good practice. Without AMA, your premium DOUBLES.

With Annual Maintenance Agreement
1.25%

Standard Rate (Computers)

  • ✅ AMA with OEM or authorised service provider
  • ✅ Lowest premium rate — best coverage terms
  • ✅ Excess: 5% of claim (min ₹1,000 for normal claims)
  • ✅ Excess: 10% (min ₹2,500) for Winchester/HDD crash
  • ✅ Insurer confident in equipment maintenance standard
  • ✅ Claim settlement smoother — well-maintained equipment
⚠️
With In-House Maintenance Facility
1.875%

50% Loading Applied

  • ⚠️ Qualified in-house IT/biomedical team
  • ⚠️ 50% loading added to base rate (1.25% × 1.5)
  • ⚠️ Must demonstrate "sufficient in-house facilities"
  • ⚠️ Accepted for most electronic equipment
  • ❌ NOT accepted for Medical Equipment
  • ❌ Medical equipment MUST have OEM AMA — no in-house exception
Without AMA or In-House Maintenance
2.50%

100% Loading — Premium Doubles

  • ❌ No AMA and no in-house maintenance
  • ❌ Premium doubles vs AMA rate
  • ❌ Twice the excess compared to AMA scenario
  • ❌ Higher excess reflects higher risk of breakdown
  • ❌ Still covered — but at maximum cost
  • ❌ AMA savings far exceed AMA cost in most cases

💡 The AMA Business Case — Premium Savings vs AMA Cost

🏥

⚠️ Medical Equipment: AMA with OEM is Non-Negotiable

For ALL medical and bio-medical equipment — ECG machines, ventilators, dialysis machines, MRI, X-ray, CT scanner — the Annual Maintenance Agreement with the Original Equipment Manufacturer (OEM) or authorised service provider is MANDATORY. Unlike other electronic equipment where in-house maintenance can substitute, medical equipment requires certified OEM maintenance for life-safety reasons. Before purchasing EEI for your hospital or diagnostic lab, verify that all equipment has active OEM service contracts. Lapsed AMC = coverage issue at claim time. Call 022 4302 0000 for guidance.

$155 Billion Electronics Market· Digital India· Healthcare· IT

Who Needs EEI Insurance?

"If your business heavily depends on electronic systems, this insurance is your safety net.". In India's digital economy, almost every business depends on electronic infrastructure. EEI protects both the equipment and the business operations that depend on it.

💻

IT Companies & Data Centres

PRIMARY BUYER

IT firms, software companies, BPOs, KPOs, cloud service providers. Servers, networking, workstations. One hour of server downtime = lakhs in lost SLA penalties. Section III essential.

🏥

Hospitals & Diagnostic Labs

MEDICAL AMA MANDATORY

Government and private hospitals, diagnostic chains, pathology labs, imaging centres. MRI, CT, X-ray, ECG, ventilators. AMA with OEM mandatory for all medical equipment.

📡

Media & Broadcasting

HIGH VALUE EQUIPMENT

TV channels, radio stations, OTT content creators, film post-production. Studio equipment, OB vans, transmission systems. A broadcast failure during prime time = millions in losses.

🏦

Banks & Financial Institutions

REGULATORY COMPLIANCE

Banks, NBFCs, insurance companies, stock exchanges. Core banking servers, ATM networks, trading systems. RBI mandates business continuity — Section III is critical for banks.

🔬

Pharma & Research Labs

HIGH-PRECISION EQUIPMENT

Pharma companies, biotech firms, CROs, research institutions. Spectrometers, PCR machines, chromatographs, sequencers. NABL-accredited labs have compliance requirements.

🏛️

Government & PSUs

DIGITAL INDIA

Government departments, PSUs, defence establishments, railway ticketing. the insurer, LIC, BSNL IT infrastructure. Digital India creating massive government electronics asset base.

🏭

Manufacturing Companies

PROCESS CONTROLS

Auto, pharma, food processing, cement, steel manufacturers. PLCs, SCADA, DCS, industrial computers. Process control failure = production stoppage worth crores per hour.

🏫

Educational Institutions

NEP DIGITISATION

Universities, IITs, IIMs, school chains, EdTech companies. Computer labs, smart boards, campus networking. National Education Policy driving massive digital infrastructure investment.

🇮🇳

Why India Specifically Needs EEI

  • Voltage instability:India's power grid has frequent voltage spikes and sags — far more than Europe or the US. EEI specifically covers voltage fluctuation damage. Standard fire policies do NOT cover this.
  • Monsoon water damage:India's 140-day monsoon season causes widespread water logging. Electronic equipment in ground-floor server rooms, labs, and hospitals is at high risk. EEI covers water/humidity damage.
  • Market scale:India's electronics market: $155 billion (2023), growing to $500 billion by 2030. 5th largest server installed base globally. ₹8.6 trillion healthcare industry with massive biomedical equipment investments.
  • Digital India acceleration:Government digitization creating massive EEI demand — CoWIN servers, UIDAI infrastructure, RailTel, BSNL, the insurer data centres. PLI scheme: ₹75,000 crore electronics manufacturing incentives.

SI = Replacement Value + Freight + Customs + Installation· AMA Status Determines Rate

SI & Premium Calculator — AMA Impact Visualiser

EEI is the only engineering product where your Annual Maintenance Agreement status directly changes your premium rate. Enter your equipment details to see exactly how much AMA saves — and why getting that service contract is financially rational.

💻 EEI Premium Calculator — AMA Impact

Enter equipment replacement value and AMA status. The calculator shows you exact premium at each maintenance level — and how much your AMA saves annually.
Present day cost of equivalent new equipment — not book/purchase value

⚠️ INDICATIVE ONLY. Rates: 1.25% (with AMA), 1.875% (in-house), 2.50% (no AMA) — own page for computers. Bio-medical and other equipment have different tariff rates. SI = replacement value + customs + freight + installation. Call 022 4302 0000 for exact the insurer EEI premium for your specific equipment.

Coverage Matrix· EEI vs Fire + Allied Perils vs Machinery Breakdown

EEI vs Fire vs MBD — Why EEI Is Irreplaceable

Many businesses assume their Fire Insurance and Machinery Breakdown (MBD) policies cover their electronic equipment. They're wrong on critical gaps. EEI covers what neither Fire nor MBD covers alone — and is the only product covering short circuit, power surge, humidity AND theft AND flood for electronics.

Peril / Coverage💻 EEI Insurance🔥 Fire + Allied Perils⚙️ Machinery Breakdown
Fire, lightning, explosion
Flood, storm, inundation✅ (if STFI clause)
Earthquake✅ (optional add-on)
Theft and burglary❌ (separate burglary policy)
Short circuit / arcing✅ (partial)
Voltage surge / power fluctuation
Humidity / water damage❌ (unless flood)
Smoke, soot, dust damage
Mechanical / electrical breakdown
Accidental impact / dropping
Terrorism (RSMD+)✅ the insurer confirmed✅ (optional RSMD+)
Data media reconstructionSection II ✅
Business continuity costsSection III ✅
Comprehensive for Electronics?✅ YES — All-in-one⚠️ Gaps: No breakdown, no theft, no surge⚠️ Gaps: No external damage, no theft
🎯

The EEI Advantage — What Neither Can Replace

  • Short circuit & surge:Fire Insurance doesn't cover a voltage spike frying your servers. MBD may cover internal failure but not the fire/flood aspect. EEI covers both.
  • Humidity damage:Water logging in a server room from monsoon seepage (not flood) falls in a gap between fire and flood policies. EEI specifically covers humidity damage.
  • Data reconstruction:Neither Fire nor MBD pays for data reconstruction costs. Section II of EEI pays for reproducing lost data on damaged/destroyed media.
  • Theft with no break-in:Standard burglary policy requires signs of forcible entry. EEI covers theft including pilferage by employees or outsiders.

🔗 Stacking Recommendation for Complete Coverage

  • Base coverage:EEI covers most electronic equipment risks comprehensively
  • For building/premises:Standard Fire + Allied Perils covers the building structure and non-electronic assets
  • For production machinery:Machinery Breakdown (MBD) covers heavy industrial machines that EEI doesn't (turbines, compressors, boilers)
  • For cyber threats:Cyber Insurance covers hacking, ransomware, data breach — EEI covers physical damage only, not cyber events
  • Complete stack:EEI + Fire (building) + MBD (heavy machinery) + Cyber (digital threats) = comprehensive business protection

the insurer Sister PSU + GoInsure + Policy99 +

What EEI Does NOT Cover

EEI is written on an all-risks basis — the exclusion list is critical. Key surprises: application software not covered, AMA-covered repairs not covered (no double-dipping), and purely functional failure without physical damage is excluded.

Derangement Without Physical Damage

Purely functional failure not accompanied by physical damage — software bugs, configuration errors, corrupt firmware. EEI covers PHYSICAL DAMAGE. If you can't see/touch the damage, it likely needs cyber insurance instead.

Application Software

"Only integral System Software is covered, not external Application Software." — GoInsure. MS Office, SAP, Tally, custom ERP software — NOT covered. System OS, BIOS, firmware: covered. Cyber/software insurance covers application software losses.

AMA-Covered Repairs (No Double-Dipping)

Damage or repairs already covered under the Annual Maintenance Contract is excluded. EEI won't pay for what your service contract should have covered. AMC covers routine maintenance; EEI covers sudden/accidental damage.

War, Nuclear Perils

War, invasion, civil war, rebellion, military operations. Nuclear reaction, radioactive contamination. Standard across all engineering policies. Terrorism IS covered under the insurer's EEI — special the insurer feature (with AMA clause).

Wear & Tear / Gradual Deterioration

"Normal wear and tear and corrosion of parts arising from use and continuous operation." — the insurer. LIMITED: damage to parts IMMEDIATELY affected is excluded — but subsequent damage to other parts from that failure IS covered.

Pre-existing Defects / Faults

Faults or defects that existed at the commencement of the insurance and were within the insured's knowledge. Fresh inspection recommended at policy inception. Declare all known defects at inception.

Routine Maintenance Costs

Cost of regular servicing, maintenance, and parts exchanged during maintenance. EEI covers sudden, accidental events — not planned maintenance. Your AMA covers routine maintenance; EEI covers unexpected damage.

Consequential Loss

Loss of production, revenue loss, business profit loss, delay penalties. Exception: Section III (Increased Cost of Working) specifically covers the EXTRA COSTS of continuing operations — not lost profit itself.

Aesthetic Defects

Scratches, surface marks, cosmetic damage to painted or enameled surfaces — unless these are part of a covered peril's damage. A scratched screen that still works is not covered; a screen shattered by impact is.

Consumable / Replaceable Parts

"Bulbs, valves, tubes, ribbons, fuses, seals, belts, wires, chains, rubber tyres, exchangeable tools, engraved cylinders, glass, porcelain, ceramics, sieves, fabrics, operating media (oil, fuel)." These are treated as consumables, not capital equipment.

Loss Outside India

"Cost incurred in the movement of equipment outside the territorial limits of India" EEI covers equipment within India only. For equipment taken abroad (exhibitions, overseas assignments), separate inland/marine transit insurance is needed.

Wilful Act / Gross Negligence

Intentional damage by employees or management, or gross negligence (far below reasonable standard of care). Ordinary negligence IS covered — an operator error that damages equipment is covered. Deliberate damage is not.

After Equipment Damage — Act Within 24–48 Hours

Claim Process — 5 Steps to Settlement

EEI claims must be notified promptly confirms "within the prescribed time limit (normally 24–48 hours)." The most important step: document PHYSICAL damage evidence before ANY repair work begins. Without documented physical damage, functional failure claims may be disputed.

📞

Step 1 — Notify Insurer Immediately

Contact the insurer or Probitas (022 4302 0000) within 24–48 hours of the incident. Policy condition: immediate notification. Provide: policy number, equipment details (make/model/SI), date, time, location, and nature of damage. For theft: file FIR with local police within 24 hours (mandatory).

📸

Step 2 — Document Physical Damage

CRITICAL: Photograph equipment damage IMMEDIATELY from multiple angles before attempting any repair. Capture visible damage — burn marks, water damage, physical deformation, broken components. Evidence of PHYSICAL damage is essential for EEI claims. "Derangement without physical damage" is excluded — documentation prevents dispute.

📋

Step 3 — Submit Written Claim

Fill and submit the claim form with: invoice or proof of purchase, AMA/service contract copy, service report from authorised repair facility, FIR (for theft/vandalism), photographs of damage. For high-value equipment (MRI, servers): detailed surveyor report required. Don't start repairs before surveyor visits for major claims.

🔍

Step 4 — Surveyor Inspection

the insurer appoints a surveyor to verify the damage. "Allow the insurer to inspect the damage before repairs or replacements are undertaken." — GoInsure. Provide full cooperation and access. For equipment that must be repaired urgently (hospital emergency equipment), contact the insurer first for telephonic approval to commence emergency repairs.

Step 5 — Settlement

Repair claims: actual cost of authorised repairs at OEM/authorised service centre up to SI. Replacement claims: present day replacement value (for total loss). Section II (data media): cost of media + data reconstruction. Section III (increased cost): actual extra costs incurred vs normal operating costs. Processing: typically 2–8 weeks for standard claims; complex/major claims may take longer.

📁

Documents Required for EEI Claims

  • All claims:Claim form· Policy schedule· Equipment purchase invoice· AMA/service contract copy· Damage photographs (multiple angles)
  • Section I (Equipment):Service/repair estimate from OEM/authorised centre· Surveyor report· For total loss: original purchase invoice + current replacement quotation
  • Theft claims:FIR within 24 hours (mandatory)· "Untraced report" from police (if equipment not recovered within 60 days)· List of stolen equipment with serial numbers
  • Section II (Data Media):Evidence of media damage· Data reconstruction estimate from IT specialist· Proof that data was not backed up elsewhere (or cost of restoring from backup)
  • Section III (Business Continuity):Invoices for substitute equipment hire· Outsourcing invoices· Evidence that costs exceed normal operating expenses· Duration of outage documented

Electronic Equipment Insurance Questions

Frequently Asked Questions

the insurer's Electronic Equipment Insurance (EEI) is issued on an All Risk basis to protect computers, bio-medical equipment, X-ray equipment, Audio/Video equipment, and microprocessor equipment against sudden and unforeseen physical damage.


→ Section I (Equipment/Hardware): All-risks physical damage to the equipment itself — fire, flood, theft, short circuit, power surge, humidity, mechanical/electronic breakdown, terrorism. SI = Present day replacement value + freight + customs + installation.
→ Section II (External Data Media): Cost of external storage media PLUS charges for reproducing the information stored on damaged/destroyed media. System Software covered; Application Software NOT covered.
→ Section III (Increased Cost of Working): Extra/additional costs to continue operations while equipment is being repaired — substitute equipment hire, outsourcing, additional labour.


→ IT companies and startups / Data centres
→ Hospitals, clinics, diagnostic labs
→ Media production and broadcasting units
→ Banks and financial institutions
→ Pharma and biotech research labs
→ Educational institutions with computer labs
→ Manufacturing companies (process controls)
→ Government and PSU IT infrastructure

The unique value proposition:
EEI is the ONLY engineering product covering BOTH external damage (fire, flood, theft) AND internal electronic/mechanical breakdown (short circuit, voltage surge, humidity failure). Neither Fire Insurance nor Machinery Breakdown (MBD) provides this combined coverage for electronic equipment.
Section I covers ALL physical loss or damage to the insured electronic equipment — by any cause UNLESS specifically excluded.


Physical damage: Fire, lightning, explosion, aircraft damage, riot, strike, malicious damage (RSMD), terrorism, theft, burglary, accidental impact, dropping, falling objects
Environmental: Smoke, soot, dust, corrosive gases, environmental contamination, water and humidity damage, short circuit and arcing, voltage fluctuation and power surge, failure of safety devices
Acts of God: Earthquake, flood, inundation, storm, cyclone, landslide, rockslide, subsidence
Technical: Mechanical/electrical breakdown, faulty operation, lack of skill, overloading

How EEI differs from Fire Insurance:
Fire Insurance covers fire, flood, and allied perils — but NOT short circuit, power surge, humidity damage, theft, or equipment breakdown. A voltage spike that destroys a server is NOT covered by fire insurance — EEI covers it.

How EEI differs from MBD (Machinery Breakdown):
MBD covers internal mechanical/electrical breakdown — but NOT fire, flood, theft, or external physical damage. A monsoon flood that destroys processing equipment is NOT covered by MBD — EEI covers it.

The gap EEI fills:
Short circuit from power fluctuation during a monsoon? Fire Insurance doesn't cover power surge. MBD doesn't cover monsoon-caused power issues. EEI covers both the surge AND the monsoon. This is why EEI cannot be replaced by either Fire Insurance or MBD for electronic equipment.
Section II covers External Data Media — but with critical limitations on what "data" means.


"SECTION II: Covers external data media or E.D.P. The sum insured shall be the cost of the data media plus charges for producing the information."

What Section II actually covers:
1. The physical cost of the BLANK external storage media (tapes, disks, USB drives, backup tapes, removable storage)
2. The cost/charges to REPRODUCE or RECONSTRUCT the information that was stored on the damaged/destroyed media

Example:
A fire damages your backup tape library containing ₹50L worth of critical business data. Section II pays for:
→ New blank backup tapes (physical media cost): ₹50K
→ IT specialist fees to reconstruct data from other sources: ₹5L
Total Section II claim: ₹5.5L (subject to SI)

Critical limitations to know:
→ System Software (OS, BIOS, firmware): COVERED
→ Application Software (MS Office, SAP, ERP): NOT COVERED — buy from vendor again
→ Data that cannot be reproduced from any source: Section II pays what reconstruction would have cost, not the "value" of the data
→ X-ray/CT Scanner equipment: Section II NOT applicable

Important:
Section II is NOT cyber insurance. It does not cover hacking, ransomware, or data theft. It covers physical damage to physical media that stores data. For cyber threats, a separate Cyber Insurance policy is needed.

Call 022 4302 0000 to discuss Section II SI calculation for your specific data infrastructure.
Section III (Increased Cost of Working) is EEI's business continuity component — the only such element in any the insurer Engineering product.


"SECTION III: Covers increased cost of working (loss of profit policy)"

What it covers:
The ADDITIONAL/EXTRA costs incurred to CONTINUE business operations while the insured equipment is being repaired or replaced. Specifically:
→ Cost of hiring/renting substitute equipment (rental laptops, temporary servers, hired scanners)
→ Cost of outsourcing processing to an alternate service provider (outsourcing data entry while systems are down, cloud computing costs)
→ Extra overtime wages to catch up on work after the equipment is repaired
→ Additional communication or courier costs due to workarounds

What it does NOT cover:
→ Loss of revenue or profit (the REVENUE you would have earned if equipment hadn't failed — that's Business Interruption Insurance)
→ Normal ongoing business costs

Practical example (IT company):
Main server crashes after power surge. Repair time: 3 weeks. During this time:
→ Cloud server rental: ₹2L/month = ₹1.5L for 3 weeks
→ IT consultant fees to manage cloud migration: ₹50K
→ Extra overtime for IT team: ₹30K
Total Section III claim: ₹2.3L (subject to policy terms)

Who needs Section III most:
Banks (core banking down = regulatory issues), hospitals (MRI down = patient revenue loss), IT companies (SLA penalty exposure), manufacturing (production stoppage)

Section III is NOT applicable to X-ray/CT scanner equipment
The Annual Maintenance Agreement (AMA) is EEI's most unique feature — the only premium variable based on maintenance contract status in the entire 50+ product series.


"If Annual Maintenance Agreement is not executed the premium will be loaded by 100%."
"If annual maintenance agreement is not executed but the insured has got sufficient in-house facilities for proper maintenance of the equipments, the premium will be loaded by 50% only."

Three scenarios and their premium impact:
WITH AMA (OEM/authorised service): 1.25% for computers (standard tariff rate)
WITH in-house maintenance: ~1.875% (50% loading on standard rate)
WITHOUT AMA or in-house: 2.50% (100% loading — premium doubles)

Why AMA is required:
Electronic equipment unlike heavy machinery accumulates dust, corrodes, and deteriorates rapidly without maintenance. Without regular professional maintenance: dust clogs cooling → components overheat → failure accelerates → claims increase. The AMA warranty ensures the insured takes preventive care, reducing the insurer's risk.


"The warranty relating to Maintenance Agreement can be waived by charging additional premium. Wherever the competent In-House maintenance facility is available, the warranty can be deleted for all electronic equipments EXCEPT MEDICAL EQUIPMENT."

Medical equipment: NO EXCEPTIONS
Medical equipment MUST have AMA with OEM/authorised biomedical engineer. In-house maintenance is not accepted. This is a life-safety requirement — medical equipment without certified maintenance is a hazard to patients. Call 022 4302 0000 to confirm your AMA status before purchasing EEI.
YES — provided you have EEI with AMA in place for the MRI machine.

Scenario analysis:
A monsoon power surge causes voltage fluctuation → surge destroys MRI machine's control electronics and superconducting magnet systems → total replacement cost: ₹8 crore.

EEI Section I covers this because:
→ Voltage fluctuation and power surge: specifically covered EEI peril
→ Environmental event (monsoon-caused power instability): covered
→ Physical damage to MRI electronics: covered
→ MRI is bio-medical equipment: explicitly covered under EEI

Critical conditions that must be met:
1. AMA with OEM/authorised biomedical engineer must be ACTIVE at time of loss
→ If AMA had lapsed: premium was at 100% loading AND claim may be disputed if lapsed AMA is a condition breach
→ Medical equipment AMA is MANDATORY — no waiver possible
2. SI must be set at PRESENT DAY REPLACEMENT VALUE (current market price of same-spec MRI) — not original purchase price
→ If you bought it 5 years ago for ₹6 Cr but current replacement is ₹8 Cr, insure at ₹8 Cr
3. X-ray endorsement: NOT required for MRI (X-ray endorsement is specific to X-ray/CT scanner equipment, not MRI)

What to do immediately:
1. Do not move or attempt to repair the MRI — preserve evidence
2. Photograph all damage visible externally
3. Call the insurer/Probitas within 24 hours: 022 4302 0000
4. Contact OEM service engineer for damage assessment
5. Submit service engineer's technical damage report with claim
EEI SI = Present Day Replacement Value of equivalent NEW equipment — including freight, customs duties, and installation/erection costs.


"The sum insured or value of the policy should be equivalent to the present day purchase price of a similar new electronic equipment including all incident costs."

Why present day replacement value (not original purchase price)?
If your server is damaged, you buy a NEW server — at TODAY's market price, not what you paid 4 years ago. Electronics often DEFLATE in price (a server that cost ₹5L in 2020 may cost ₹3.5L today for same specs, or ₹6L for upgraded specs). EEI SI should reflect what a replacement costs TODAY.

SI Formula:
SI = Current Market Price of Same/Equivalent Equipment NEW
+ Freight (international freight if imported)
+ Customs Duties (for imported equipment)
+ Installation/Erection Costs

Common mistakes to avoid:
→ DO NOT insure at purchase price (may be under or over replacement cost)
→ DO NOT insure at book value (depreciated accounting value — much lower than replacement)
→ DO insure at TODAY's equivalent replacement cost (new machine, same spec or equivalent)

Annual review is important:
Electronics prices fluctuate significantly. Review SI annually. For imported equipment, exchange rate changes affect replacement cost. Medical equipment prices often increase 5–10% annually. Under-insurance triggers Average Clause: a ₹3L partial loss on a ₹5L SI machine (actual replacement ₹8L) = ₹3L × (5/8) = ₹1.875L settlement. Call 022 4302 0000 for current SI valuation guidance.
YES — EEI can cover your entire IT infrastructure under one policy, with separate SI schedules for each equipment type.

What a comprehensive IT infrastructure EEI policy covers:
→ Servers (all racks/blades) — Section I
→ Storage systems (SAN, NAS, backup servers) — Section I
→ Networking equipment (routers, switches, firewalls) — Section I
→ End-user devices (desktops, laptops, workstations) — Section I
→ UPS and power conditioning equipment — Section I
→ External backup media (tapes, drives) — Section II (optional)
→ Increased cost of working while systems are down — Section III (optional)


"Equipment spread across multiple locations" — EEI can cover equipment at multiple office locations under one policy. All locations must be declared in the schedule.

SI for IT infrastructure:
Each category of equipment should have its own SI in the policy schedule:
Schedule 1: 20 rack servers @ ₹2.5L each = ₹50L
Schedule 2: SAN storage system = ₹30L
Schedule 3: Networking equipment = ₹15L
Schedule 4: Workstations (50 units × ₹1L) = ₹50L
Schedule 5: UPS and power = ₹8L
Total Section I SI: ₹1.53 Cr

AMA for IT infrastructure:
Ensure AMA covers ALL equipment in the schedule — not just some. If AMA covers servers but not networking equipment, the networking equipment may be at 50–100% loading. Call 022 4302 0000 for a fleet policy quote.
YES — CT scanners and X-ray equipment are covered under EEI, but with important special conditions own page.


"X-ray tubes fitted to C.T. Scanners: X-ray endorsement must be attached to the EEI policy. The rates and other terms of the policy are the same as those of computers. Section II and III are not applicable to these equipments."

Three key conditions for CT scanners and X-ray equipment:

Condition 1 — X-ray Endorsement Required:
A special X-ray endorsement must be physically attached to the EEI policy document. Without this endorsement, a CT scanner or X-ray machine damage claim may be rejected. Always ask your broker to confirm the endorsement is in place at policy issuance.

Condition 2 — Section II NOT Applicable:
External data media coverage (Section II) is NOT available for X-ray/CT scanner equipment. The DICOM image storage, patient records, and imaging data stored on CT scanner systems cannot be claimed under Section II of EEI for this equipment category.

Condition 3 — Section III NOT Applicable:
Increased Cost of Working (Section III) is NOT available for X-ray/CT scanner equipment. If your CT scanner breaks down, EEI won't pay for the cost of referring patients to another facility or hiring a mobile CT scanner — those business continuity costs are not covered for this equipment type.

AMA for CT/X-ray:
Medical equipment — AMA is MANDATORY. CT scanner AMA with Siemens/GE/Philips etc. is required.

Call 022 4302 0000 to ensure your CT scanner EEI policy has the correct X-ray endorsement attached.
By frequency, power surge and voltage fluctuation claims are India's most common EEI claim cause — reflecting India's grid instability. By value, MRI/CT scanner and server infrastructure claims dominate.

Most common EEI claims in India:

1. Voltage Surge / Power Fluctuation (highest frequency):
→ India's power grid causes voltage spikes during monsoon season, grid switching, and transformer overloads
→ Typically affects: servers, UPS systems, networking equipment, medical monitors
→ Settlement: repair/replacement of damaged components
Note: This is NOT covered by standard fire insurance — only EEI covers power surge

2. Monsoon Water/Humidity Damage:
→ Server rooms on ground floors, labs without proper humidity control
→ Air conditioning failure leading to humidity spike that damages electronics
→ HVAC failure in hospital equipment rooms

3. Accidental Physical Damage:
→ Laptops dropped by employees, screens cracked
→ Equipment damaged during shifting/relocation
→ Forklift or pallet truck damage in data centres

4. Short Circuit / Fire in Equipment:
→ Overloaded power strips, poor cable management
→ UPS battery failure causing fire
→ Server overheating due to cooling system failure

Surprising exclusions that buyers miss:
→ "My SAP software crashed" — Application software NOT covered
→ "Our server just stopped working — no physical damage" — Derangement without physical damage excluded
→ "We don't have an AMC" — 100% premium loading and potential claim complications
→ "Our CT scanner data is lost" — Section II not applicable to X-ray equipment
→ "Equipment was damaged at our Dubai office" — Territorial limit is India only

Best practice:
Always document physical damage evidence (photographs) before any repair. "Derangement without physical damage" is excluded — physical evidence of damage is critical for claim success.

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