Pot freezing cover


This cover is mainly  given to Aluminium Extraction plants like Hindalco, where due to failure of power supply, molten aluminium gets solidified inside pots and it leads to a major loss of 'stock in process' (liquid aluminium) and  Insured is required to incur additional expenses towards pot cleaning which is a time consuming process. It invariably leads to  major BI loss due to long interruption periods involved in cleaning of pots unless Insured has an alternate Power supply arrangement.

Such losses can be paid under "Pot Freezing" cover where loss or damage to Molten metal which got solidified (frozen) inside the pot along with cost of cleaning of Pots is paid up to the selected Indemnity limits provided it is caused due to failure of Power supply to the plant.
Such covers are allowed only in Large risk policies where top location Sum insured ( MD+BI) is above Rs 2500 crs, with consent of Reinsurers.


This is given on First loss basis & the limit gets exhausted after each loss. Reinstatement can be allowed in specific cases on payment of additional premium at pre-agreed terms subject to agreement by Reinsurers.
BI following Pot Freezing can also be agreed up to selected Loss limits with min 30 days Time excess subject to agreement by Reinsurers.
In general, a combined MD + BI loss limit is agreed with clear mention of material damage and BI Time  excess.

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