Difference In Conditions Coverage / Machinery Breakdown Insurance
Difference of conditions insurance (machinery breakdown insurance) coverage is based on DTV – ADS 2009 (Hull & Machinery insurance) and on the special conditions for the engine equipment on see-going vessels.
Insured property includes mechanical equipment, in particular shaft, propeller, and auxiliary equipment.
Thus, machinery breakdown insurance pays compensation for damage to mechanical equipment once an insured event or the claim has been acknowledged by the Hull & Machinery insurance.
Thus, the difference of conditions cover (machinery breakdown insurance) can significantly reduce the owner’s share (deductible) of the machinery claim under the Hull policy.