Property Insurance

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Hospitals and medical establishments use sophisticated electronic equipment which is critical for carrying out medical procedures, tests and treatment. Damage to this equipment can hamper work and result in financial losses. Electronic equipment insurance (EEI) can be taken to overcome potential monetary losses and other related risks. We look at the types, features and benefits, the inclusions and exclusions, and the claims process of such insurance plans here.

Additional Read: Medical Establishment Insurance – All about professional indemnity policy

About Medical Electronic Equipment Insurance (EEI)

Electronic equipment is indispensable for any business including medical establishments. If key electronic equipment crashes, your operations can come to a standstill. Electronic equipment insurance (EEI) offers complete coverage for loss or break-down of electronic equipment. Hence it enables you, the policyholder to save on large, unexpected costs.

Types of EEI for covering medical equipment:

There are 3 types of EEI with varying degrees of coverage :

  • Complete coverage:

This policy offers coverage against possible perils which can lead to electronic equipment damage including fire, storms, landslides, and manual perils including terrorism, strikes, riots etc.,

  • External Data:

This offers coverage for loss of data including loss of media files or by the failure of media devices used to store media files. Hospitals deal with sensitive and important data of patients and thus loss of data is financially detrimental to them.

  • Increased operational costs:

When electronic equipment is damaged, there is a need for alternative arrangements eg. replacement or renting of equipment.  Such expenses are under the insurance coverage of this plan.

Additional Read: Is medical indemnity insurance meant only for doctors?

How to apply for EEI to insure your medical equipment?

  • You have to fill out the application or proposal form with requisite details of the equipment.

  • Next, your insurance company representative will physically inspect the equipment to ascertain the condition and fitness of the equipment and to authenticate the declarations made by the applicant in the proposal form.

  • Now they will value the equipment fairly and arrive at the sum insured.

  • Finally, they will calculate your premium.

  • The insurance plan will typically cover the replacement costs, installation and software costs.

  • The plan may also cover external hardware, its replacement cost and lost data cost.

  • The Electronic Equipment Insurance Plan can also cover expenses incurred on any additional workers, personal expenses and transportation costs to overcome the loss of equipment, data etc.

  • Your policy is issued after complete analysis and due diligence done of all information and documents provided as per the underwriting standards.
  • It is you, the insured, who needs to submit all necessary documentation for filing the claim.

Additional Read: What types of properties can be insured under property insurance?

How does an insurer manage the claims under EEI?

  • In case of an incident, you must intimate the insurance company immediately about the nature of the incident and the extent of the damage.

  • Now fill out the claim settlement forms and submit them along with the required documentation.

  • Also submit all required documents and additional details regarding the damage/incident as applicable.

  • On receiving these, your insurance company’s representative will investigate the details about the issue.

  • Next, the insurer may ask for more information or clarification.

  • Upon establishing the genuineness of the claim, you will receive the claim amount in your account as the policyholder or the beneficiary.
  • If the claim is fraudulent, false, or beyond the coverage of the policy your insurer can reject the claim.
  • If the insurer offers to settle a claim amount that you think is insufficient for the loss, you as the policyholder can raise a dispute. Typically, there would be an escalation matrix which each insurer would provide. Alternatively, you can go to the Insurance Ombudsman or the court of law.

What are the inclusions under EEI?

All equipment which falls under the category of:

  • Computer or allied peripherals,

  • Auxiliary equipment like UPS,

  • Voltage stabilisers,

  • Telecommunications or navigation equipment,

  • Electronic control panels,

  • AV (audio visual) equipment,

  • Electronic equipment for testing,

  • Research purposes,

  • Other medical equipment like CAT, MRI scan, ultrasound devices, path lab, X-ray machine etc.,

What are the exclusions of EEI?

The exclusions of EEI are:

  • Depreciation of the equipment during the normal course of operation.

  • Damage due to modification of equipment.

  • Damage due to overhauling.

  • Damage due to war or nuclear explosions.

  • Damage due to lack of maintenance of the equipment, and,

  • Any damage that was already part of the equipment.

  • Expenses on the loss of data will come under the purview of insurance only if there are no backups of the system.

  • Damage to equipment due to pressure waves from aerial devices.

These are common exclusions across most insurance companies offering EEI. However, it is important to undertake a thorough comparison across vendors before you buy.

Conclusion:

You can look at the product offerings in this category on SecureNow, to get a detailed analysis of the features, benefits and exclusions. This will help you to make an informed decision before you buy.


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