This policy indemnifies loss due to unforeseen and sudden physical loss or damage from any cause other than excluded causes. Mechanical Breakdown, failure, breakage or derangement, loss or damage to replaceable parts or consumables explosion of any boiler or pressure vessel, vehicles meant for road use, vessels and crafts, wear and tear, corrosion, Equipment under testing, War and terrorism, nuclear radiation, wilful negligence, inventory losses and all consequential losses are excluded from the cover.

This policy usually carries a deductible or excess that may be agreed.