Deterioration of Stocks

Deterioration of stock in cold storage insurance policy covers the losses due to deterioration of goods placed in cold storage, which might arise due to a breakdown of refrigerating machinery. This is a follow up cover for to machinery breakdown insurance.  A claim can only arise when the insured refrigeration plant suffers from some unforeseen material damage indemnifiable under the machinery breakdown insurance policy, which gives rise to deterioration of the insured stocks.