The Engineering Insurance Guidance provides detailed instructions on a broad range of covers including machinery breakdown , business interruption from machinery breakdown , comprehensive project , advance loss of profits etc . In many instances the Engineering Insurance Guidance is nonmandatory , but in other instances it contains very specific instructions that KSA insurers must follow . A number of these instructions have a direct impact on cover . For example , the issuance of a wording described as a “ Machinery Breakdown ” or “ Boiler and Pressure Vessel ” policy will have an assumed standard level of cover , as prescribed by the Engineering Insurance Guidance .
While the Engineering Insurance Guidance is still untested , it appears that KSA insurers are able to underwrite on terms that will extend or broaden the scope of the assumed standard level of cover , but KSA insurers are unable to limit the scope of cover in respect of certain classes of business , or to provide an indemnity on a basis that is not in accordance with the “ assumed standard level ”.
The Engineering Insurance Guidelines contain a number of further prescriptive requirements , for example , instructions on minimum deductibles or waiting periods ( and maximum deductibles for CAR / EAR covers ). In many instances the SAMA instructions can simply be considered to be
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