This policy covers explosion of boilers and pressure plants but does not cover rupture of tubes inside the boilers. Both these perils can be covered under MB policy and hence we should wherever possible include this in our MB portfolio since it would practically mean granting extra cover within the scope of tariff provisions.
Types of Explosions
It can be broadly classified under two categories for the purpose of insurance cover.
It is a matter of common knowledge that gun powder, similar explosive compound could cause explosion under the influence of mechanical or thermal shocks. Highly inflammable fluids and dusts can cause explosions if their concentration in the atmosphere exceeds the explosive limits. From the insurance concept, these explosions are considered as very rapid form of combustion.
In respect of pressure vessels handling inert fluids such as steam, explosion can occur due to variation in fluid pressure. The variation being only in physical form and there no chemical reaction or changes responsible for such explosions as such these are classified as Physical Explosions.
Scope of Cover
The policy covers pressure vessels both fired & unfired against the risk of explosion and collapse and indemnified the insured against:
Damage to the boilers & / or other pressure plant.
Damage to surrounding property of the insured or the property held by the insured in trust for which he is responsible.
Death or bodily injury to any person.
Damage to property not belonging to the insured or held in trust or on commission for which he is responsible.
Exceptions of Policy
Loss or damage raising from fire and allied perils which can be covered separately.
Damage by chemical explosion except in recovery boilers and waste heat boiler.
Under the BPP insurance the following warranties will be incorporated during the currency of the policy:
The Boilers and Pressure Plants described in the schedule are annually inspected by inspectors appointed by the Government except where there is no statutory requirement for Government inspection; the inspections are to be carried out by independent competent persons.
The Boilers and pressure plant described in the schedule shall only be operated by attendants holding a valid certificate of competency issued under the appropriate Boiler Act.
The insured shall be in possession of the unqualified permission in writing of the competent inspecting authority to operate the said boilers and pressure plant. If the maximum pressure of load upon safety valve immediately prior to any explosion or collapse was in excess of that stipulated by the said authority the insured shall not be entitled to any compensation or indemnity under this policy in respect of such explosion or collapse.