STORAGE TANKS INSURANCE

Introduction

As per practice of storing liquids in bulk has developed with a tendency towards larger tanks, so the demand for permanent insurance cover on tanks has been developed.

Tanks have applications in a variety of industries and invariably represent a high concentration of capital – not only the tank, but also its contents – Loss of which would have a severe financial effect.

The Tank itself is susceptible to many forms of accident/extraneous damage, which include impact damage, bursting, splitting, rupture and collapse. Example of such are:

• tank splitting  open during filling operations
• tank bulging due to overfilling
• tank collapsing during process of being emptied
• tank distortion due to formation of vacuum.
  

The possibility  of such damage causing loss of stored liquid from the tank is a very real threat coupled with the fact that the rising cost of materials, labor and transport are leading to more expensive repairs and replacements, it is quite evident why this type of insurance needs to be given closer consideration.

Scope of Cover

This Policy provides cover in respect of:

• Section I – Damage to Tanks
  Accidental damage to the tanks caused by bursting, splitting, rupture or collapse or similar fortuitous event
  
• Section II – Loss of Contents
  Loss of contents of any tank following damage indemnifiable under material damage Section I
  
• Section III – Other Property
  
  Loss of or damage to other property belonging to the insured or for which he is responsible due to loss or damage or loss of contents for which liability has been admitted under Section I and/or II of this specification.
  
  Limit of Liability – The amount of liability hereunder shall not exceed during anyone period of insurance the Sum Insured specified in the Schedule.

For further information about this product, please contact our nearest branch and our customer service staff will gladly assist you.