Machinery Insurance
This information document only specifies the main aspects of the insurance, such as what is included and what is not. It is not an exhaustive list or a personal overview of the insurance that customers choose. The information document has no legal significance and is intended solely to inform customers about the main aspects of the insurance. The insurance summary and detailed information on the applicable contract terms are available on the insurance policy, which can be accessed on Vörður’s My Pages. The terms and conditions of the insurance contain comprehensive information about the insurance coverage and are a part of the agreement between the parties together with the insurance certificate.
What kind of insurance is Machinery Insurance?
Machinery insurance consists of one or more of the following coverages: comprehensive insurance for machinery, which covers damage to the machine specified in the policy; indemnity insurance covering non-contractual indemnity that falls on the insured as the owner of the specified machine arising from its use; indemnity insurance while driving, covering non-contractual liability arising from the use of the machine as a vehicle; and fire insurance covering fire damage to the machine specified in the policy.
What Is Covered?
Loss or damage due to lightning, fire, or explosion.
Loss or damage due to collision, colliding, overturning, or falling of the machine, rock fall, avalanche, and landslide.
Damages to the machine in the event that it is stolen or an attempt is made to steal it. The same applies to loss or damage by vandalism.
Loss or damage due to storms, where winds exceed 30m/s.
Loss or damage the machine sustains when being transported by another vehicle on land.
Breakages of the machine’s windshields.
Compensates non-contractual liability in tort incurred by the policyholder due to accidents to people or property damage arising from the use of the insured machinery.
Compensates non-contractual liability in tort incurred by the policyholder due to accidents to people or property damage arising from the use of the insured machinery as a vehicle.
Loss or damage cause by fire, thunderstorms, or explosions caused by fire.
What Is Not Covered?
Loss or damage caused by sand, gravel, ash or pumice, or other earth materials that are blown onto the machinery.
Loss or damage when windshields break during installation, or chipping from the windshield, as well as scratches or abrasions.
Loss or damage caused by intent or gross negligence at the hand of the insured.
Damages caused due to material defects, design defects, or defective repairs.
Damages caused by wear or insufficient maintenance, grouting, corrosion, metal fatigue, or similar causes.
Loss or damage that is the responsibility of the manufacturer or seller under law or contract.
Loss or damage when heavy machinery partially or completely soaked due to tides.
Loss or damage only to the wheels, tires, belts, caterpillars, lifting, or conveyor belts, springs, batteries, glass, radios and other stereo equipment, as well as damage due to theft of individual parts of the heavy machinery and resulting damage.
Loss or damage to the machine’s electrical equipment, caused by a short-circuit which does not cause a fire.
Loss or damage to cylinders, cooler or other parts of the machine caused by coolant freezing or through other influence of the weather.
Damages to paint or scratches on the cab or guards of the machine.
Liability due to damage or loss of items the policyholder has borrowed, rented, has in storage, for sale, is transferring or is because of other reasons kept by them, including items that the insured has taken without authorisation.
Loss or damage covered by professional liability insurance.
Loss or damage due to fire, nuclear energy, or radioactive materials.
Loss or damage caused by aircraft or as consequence of its operation.
Liability for damages incurred by the policyholder as owner or user of a vehicle, ship, or other conveyance.
Liability for loss or damage resulting from construction work on a building owned or used by the insured.
Liability for loss or damage resulting from the weight of machinery, such as damages to bridges, roads or underground utilities.
The insurance does not cover damages that are excluded in Liability Insurance, but does not exclude liability for damage caused by the use of construction machinery as a vehicle in public traffic.
Scorching or melting in the event of a fire.
Are there any restrictions or precautionary rules?
The insured is required to comply with Vörður's precautionary rules.
If a machine has a lockable place of storage, it must be locked when unattended, windows or sunroofs closed, and keys stored securely to prevent unauthorized access.
The insured must be in a physical condition to operate the machine safely and must not be under the influence of alcohol, stimulants, or sedative drugs.
The insured must have the competence to operate the machine safely and hold the required licenses or qualifications.
The insured and the machine's operators must ensure the machine is legally compliant, used according to the manufacturer’s instructions and service manual, and that all safety devices are properly maintained.
The insured is obligated to ensure that only employees who have the legally required qualifications and competence operate machines and other equipment.
Operators of equipment or machinery must be in a physical condition to perform their duties safely and must not be under the influence of alcohol, stimulants, or sedative drugs.
Before starting excavation work, drilling, or sawing indoors or outdoors, the insured and their employees must familiarize themselves with the location of pipes, cables, and other utilities in the area where the work is planned.
Where is the insurance valid?
The insurance is only valid in Iceland, unless otherwise stated.
What are the insured's obligations?
Provide all necessary information, whether in connection with the renewal or modification of the insurance.
Report any damage at the earliest opportunity and no later than one year from the date of the incident. In the event of a burglary, the police must be notified; a condition for payment is that a police report be submitted as proof of damage.
When and how is the insurance paid for?
The insurance premium must be paid on the due date. Upon renewal, the annual premium is adjusted in accordance with changes in the index from the base index of the agreement. Vörður sends payment claims monthly to online banking services, or annually if the policyholder prefers to pay the premium in a single installment. It is possible to change the payment method via Vörður's online service, “My Pages.” There, policyholders can also choose to pay premiums using a credit card.
When does insurance coverage begin and how does it end?
Insurance contracts are generally valid for 12 months from the date of acceptance of the offer and issuance of the insurance, and premiums are based on the annual premium. If the insurance is not terminated within that period, it is automatically extended.
How is the insurance terminated?
The insurance can be terminated at any time during the insurance period.