Engineering insurance

Boilers Explosions Insurance Policy


A boiler is a pressure vessel holding inner fluids like water and steam or is pressurized vessel used for compressing and supplying other items like gases, oils and other chemicals.




All explosions can be broadly classified under the following two categories for the purpose of Insurance: 

  • Chemical Explosion
  • Physical Explosion

Chemical explosion is caused due to interaction of mechanical or thermal shock as in case of gases, detonator and other explosive compounds.  In this case, a chemical reaction takes place giving rise to combustion and the resultant fire.  The spread of fire is extremely rapid releasing substantial energy which explodes the particular pressure vessel.  As a result, the boiler itself, surrounding property and loss or damage to Third Parties may result

Under Insurance terminology, such explosions are covered under the fire Policy as the pre-dominant cause of explosions are the rapid and disastrous spread of fire.  Under fire policies, the following damages caused by explosions are covered:

(a) Fire resulting from the explosions.
(b) Damage caused by the explosions to the boilers used for domestic purpose
(c) Damage caused by explosions of gas used for domestic purpose for lighting heating etc.

Therefore, the Boiler Explosions Policy does not cover chemical explosions but is restricted to physical explosions.

Physical Explosion can occur due to variations in the fluids or steam pressure.  As items handled by the boiler are of inert nature there is no chemical reaction or chemical explosion.


Scope of Cover

All Pressure Plants and Steam boilers need to be inspected and certified annually for their safety in working.  The Policy covers includes explosions and collapses of the boiler / pressure plant itself, damage to surrounding property of the Insured, liability of the Insured at Law for death and bodily injuries to Third Party and also damage to property belonging to others.



The exceptions are as under:
a) Loss or damage arising out of Fire and Allied Perils which can be covered under the fire Policy.
b) Damage due to chemical explosions.
c) Contrast liability, manufacturer’s or supplier’s liability and any kind of consequential loss due to loss of the use of the boiler.
d) Losses arising from an existing defect
e) Failure of individual tubes of the boiler and other items relating to wear and tear of the boiler itself.
f) Other exceptions are similar to other Engineering policies which are mentioned under Erection All Risks and Contractors All Risks Policy.


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