Lesson Notes By Weeks and Term - Senior Secondary 2

Term – 2^nd Term

Week: 13

Class: Senior Secondary School 2

Age: 16 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Insurance

Topic:-       Engineering insurance II

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

1. List and explain the types of engineering insurance
2. State the exclusions in engineering insurance
3. List and explain the types of engineering insurance policies

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

NOTE

ENGINEERING INSURANCE

TYPES OF ENGINEERING INSURANCE

1. Boilers and pressure: This is a type of insurance that provides indemnity against damage to steam boiler, steam receiver, economizer, super heaters, steam pipes, baker oven, air receivers and other pressure vessels.
2. Engine plant: This is the insurance that deals with gas or oil engines, diesel engines, air compressor pumps, hydro extractor, fans, gas producers plants, large refrigerating plants and other miscellaneous plants subject to mechanical breakdown.
3. Electrical plant: This is a type of insurance that provides cover or indemnity against mechanical or electrical break down of electric motor, transformer, turbines, switch board, rectifiers and all kinds of equipment like rotating plants (motor generator) or stationary plants (transformers).
4. Lifting machine: This is a type of insurance that involves insurance for all types of cranes, tractors, dumpers, passengers’ goods and services lift, excavator and other types of lifting appliances.

EXCLUSIONS IN ENGINEERING INSURANCE 

• Fire
• Lighting
• Explosion other than internal explosions
• Storm
• Impact
• Wear and tear
• Gradual deterioration

TYPES OF ENGINEERING INSURANCE POLICIES

1. Machinery Breakdown Insurance

This is a policy that is an ideal cover for all kinds of plant and machinery. It covers the financial loss incurred by the insured due to loss or damage to machinery as a result of sudden accidental electrical and mechanical breakdown.

2. Erection All-Risk Insurance (EAR)

This is a policy that is specially designed to cover loss or damage to projects during the erection and installation of plant and machinery, including testing/commissioning. This policy protects a contractor or employer against physical loss or damage to the contract works and also enables them to comply with the insurance requirements of the contract.

3. Professional Indemnity Insurance

It is a mandatory requirement for engineers to hold Professional Indemnity insurance (also sometimes referred to as Errors and Omissions insurance). This protects engineers against any mistake made during the course of their work. It could be that the engineers inadvertently give bad advice, provided inadequate services or delivered poor designs.

Professional Indemnity covers anything that results in a financial loss for their clients. It will also cover the cost of their legal defence and any financial recompense for their clients.

Professional Indemnity cover can include: 

• Professional negligence (if you make a mistake during the course of your work for a client)
• Loss of money or goods
• Loss of data or documents
• Defamation or libel
• Unintentional breach of confidentiality or copyright

4. Public Liability Insurance

This is a policy that provides cover if someone hurts themselves while on your premises. It will also pay out if you accidentally damage something belonging to a client, either while it is on your premises or theirs.

5. Buildings and Contents Insurance

Contents insurance will cover all the equipment you use for work, including portable devices that you use away from your own business premises.

6. Contractors/All Risks Insurance

This is a policy that is specially designed to offer comprehensive protection against loss or damage in respect of contract work, construction plant and equipment and/or construction machinery. In addition the policy may also be extended to provide protection against third party legal liabilities.

7. Plant All-Risk Insurance This is a policy that provides cover for plants and machinery against unforeseen physical loss or damage that may arise from the occurrence of perils that are not specifically excluded from the cover. The policy provides cover for the insured properties against all risks of direct physical loss or damage from any accidental cause.
8. Electronic Equipment Policy This is a policy that covers systems and devices that attract low voltage and power. They include common ones like computers, UPS, stabilizers and the like. The insurer will be responsible for the cost of replacement or repairs necessary to reinstate the former state of electronic equipment and devices

EVALUATION:    1. List and explain four types engineering insurance

2. Enumerate four exclusions of engineering insurance
3. List and explain four types of engineering insurance policies

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively