This class of Insurance covers unforeseen and sudden losses to various engineering activities, including construction and erection of all types of structures, construction plants & machinery on project sites and machinery breakdown in factories.
HGI’s clients generate 245 megawatts, which is 77% of the total electricity generation capacity of the private sector in Nepal.


Machinery Breakdown

Any major manufacturing process involves heavy investment in a plant and/or machinery. Where a fire policy can cover loss or damage caused by fire and numerous other perils, it does not cover sudden and unforeseen breakdown of the plant and machinery. Such breakdown can prove to be extremely costly requiring import of parts and expert knowledge to repair or reinstate. A machinery breakdown policy will cover such eventualities.

What it covers

This covers machinery (electrical equipment, mechanical plant, process machinery) against unforeseen, sudden accidental physical loss or damage caused by:

  • Carelessness
  • Short-circuit, disruption, electrical overpressure
  • Failure of operation of safety devices
  • Structural defects, material defects or defects of assembly
  • Fortuitous working accidents such as vibration, maladjustment
  • Loosening of parts, abnormal stresses, fatigue, centrifugal force, excessive speed
  • Defective or accidental lack of lubrication, seizure, water hammer or local overheating
  • Falling, impact, collision or similar occurrences
  • Obstruction or the entry of foreign bodies


Contractor’s All Risk

Insurance against loss or damage to the contractor while undertaking construction activities for buildings, bridges, dams, plants, etc. is covered by the Contractor’s All Risk Policy. This policy can also be extended to third-party liability of the contractor during the construction period.


Boiler Explosion Insurance

This policy covers the damage other than by fire, to boilers & pressure plant. It also covers damage to surrounding property and the third Party legal liability arising due to explosion and collapse of the plant during its normal course of working.


Machinery Breakdown Loss of Profits Insurance

This policy covers loss of profit as a result of reduction in turnover / output and increased cost of working of a company due to accidental damage to machinery / boilers affected in stated premises.


Electronic Equipment Insurance

This policy covers entire range of Electronic Equipments from a Personal Computer to sophisticated gadgetry.

  • Section I : Covers any unforeseen and sudden physical loss or damage to Electronic Equipments from any cause, other than those excluded.
  • Section II : Covers External Data Media.
  • Section II I: Covers Increased Cost of Working.


Erection All Risk / Storage-Cum-Erection

This policy covers All Risk pertaining to projects of Erection, Testing and Commissioning.


Contractor’s Plant and Machinery

This is an All Risk policy covering the plant and machinery of a contractor at specified work sites subject to some exclusions.