Complex Claim Regarding a Power Plant Turbine
I need your opinion on the indemnity period under a consequential loss policy - a machinery breakdown claim. In this case, a 60-megawatt power-plant, turbine alternator developed occasional vibrations. The problem was then solved. After ten months the vibrations came back. Then the company carried out repairs, which lasted for three and a half months.
Here the indemnity period is considered three and a half months. But the insured is claiming from the day vibrations were initially noticed, over 1 year 1 1/2 months previous. Please inform me whether the liability to the insurers is from the date of initial damage or from the date of interruption of production.
Answer: This sounds like a very complex situation. Insurance claims are often complicated business. However, we are not experts in claims. We provide information on how to buy insurance, including information that helps consumers decide what kinds of insurance they need.
If you would like an opinion on this claim, I'd suggest speaking with some local people who have experience in business equipment claims. These persons could be either legal professionals with experience litigating claims or claims adjusters.