Stock Deterioration

Breakdown of cold storage machinery may cause a rise in temperature of cold storage chambers leading to the deterioration of stock. This policy covers such losses to the stocks in cold storage. The potential loss as a result of deterioration of stocks in the cold storages is relatively high. Despite the best maintenance of the insured plant, failure of public electric supply sometimes can lead to heavy losses. This policy covers loss or damage to the stocks in cold storage following the breakdown of the cold storage plant.

The deterioration of the stocks may be due to:

1. a. Rise in temperature,
2. b. Sudden and unforeseen escape of refrigerants into the cold storage rooms.