Question 1

How much does equipment insurance cost?

Accepted Answer

The rate depends on the type of equipment, its operating conditions and security. It usually falls within 0.1–0.5% of the sum insured per year, with 0.3% being typical. For a sum insured of UZS 500 million that is about UZS 1.5 million a year. A specialist calculates the exact rate from your equipment list.

Question 2

How is the sum insured determined?

Accepted Answer

The sum insured must match the actual cost of replacing the equipment with new equipment of the same type and capacity. The replacement cost includes transport and installation, as well as any duties and customs charges.

Question 3

Can the premium be paid in instalments?

Accepted Answer

Yes, the contract allows a schedule of up to four instalments. If a loss occurs before an overdue instalment is paid, the insurer may limit the indemnity in proportion to the unpaid part of the premium, less the overdue instalment.

Question 4

What if new equipment is bought mid-term?

Accepted Answer

Cover can be extended to newly acquired equipment as well as to alterations, additions and improvements of existing equipment. This must be reported within five banking days, with an additional premium paid where required.

Question 5

What equipment can be insured?

Accepted Answer

Equipment of a legal entity submitted for insurance and listed in the declaration attached to the contract. It states the name, unit of measure, quantity, price and total value of each item.

Question 6

Is breakdown of the equipment itself covered?

Accepted Answer

Yes, under a separate clause. It covers sudden damage from casting and material defects, design errors, manufacturing faults, poor installation, unskilled handling, lack of experience, negligence, short circuit and current effects. The cover applies after the acceptance and operational tests have been passed successfully.

Question 7

Does the policy apply if the equipment is taken away for repair?

Accepted Answer

Yes. Under the temporary removal clause the equipment stays insured while removed from the insured location for cleaning, overhaul or repair, and while transported by any means within the Republic of Uzbekistan.

Question 8

What is not covered?

Accepted Answer

Losses for which the supplier, contractor or warranty organisation is liable by law or contract; defects known to the insured before the insurance period began; wilful acts and gross negligence; war, civil commotion, strikes, terrorism, confiscation, requisition and seizure; nuclear explosion, radiation and radioactive contamination.

Question 9

Are power-grid surges covered?

Accepted Answer

Yes, under a separate clause. One condition applies: the excess frequency, current or voltage must be recorded by the local energy supervision authority.

Question 10

An earthquake lasted several days — is that one claim or several?

Accepted Answer

One. All losses from a single earthquake, hurricane or flood within 72 consecutive hours count as one insured event. An event lasting longer is split into two or more.

Question 11

What to do if the equipment is damaged?

Accepted Answer

Notify the insurer orally at once — no later than forty-eight hours — and within five banking days submit a written statement with the causes and circumstances of the loss. In case of fire, theft or wrongful acts of third parties, report the incident to the police or the fire department immediately.

Question 12

How is the indemnity calculated?

Accepted Answer

In case of total loss — the actual value of the equipment as at the date the contract was concluded, but no more than the sum insured. In case of damage — the reinstatement costs: materials and spare parts for repair, the cost of the repair work and delivery of materials to the repair site. Alterations, improvements and temporary repairs are not included.

Question 13

When is the indemnity paid?

Accepted Answer

Within fifteen banking days from the date the loss statement is signed. A refusal is communicated no later than fifteen days after the claim and contains a reasoned justification. For late payment the insurer pays a penalty of 0.1% of the overdue amount per day, capped at 10%.

Question 14

Is VAT on repair work reimbursed?

Accepted Answer

Yes. If a VAT-registered contractor carries out the reinstatement work, the insurer reimburses the VAT once supporting documents are provided.

Question 15

What deadlines apply?

Accepted Answer

Notify the insurer orally within 48 hours and send a written statement within 5 banking days. The indemnity is paid within 15 banking days from the date the loss statement is signed. New equipment must be reported within 5 banking days. In case of fire, theft or wrongful acts, report to the police or fire department at once.

Sum insured	Premium per year
UZS 100 million	UZS 300,000
UZS 250 million	UZS 750,000
UZS 500 million	UZS 1,500,000
UZS 1 billion	UZS 3,000,000
UZS 2 billion	UZS 6,000,000
UZS 5 billion	UZS 15,000,000

Equipment insurance