IMIA WORKING GROUP PAPER 103(17) - DIESEL ENGINES
Working Group Members
Christina Hall Class Underwriter, Construction & Engineering
Alvaro Jaureguizar Cervera Loss Adjuster – Engineering & Construction RTS International Loss Adjusters
Christian Kolbe Loss Adjuster – Power & Construction Miller International
Dave Kent UK Trading & Underwriting Manager Aviva
Ali Arisoy Assistant Manager, Engineering & Liability VHV Reasurans AS
Sponsor: Stephan Lammle, Munich Re
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IMIA WORKING GROUP PAPER 103(17) - DIESEL ENGINES
Agenda
1. Introduction
2. The Technology
3. Risk Management / Risk Assessment
4. Claims / Loss Experience
5. Underwriting Considerations / Insurance Aspects
6. Future Developments
7. Conclusion
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IMIA WORKING GROUP PAPER 103(17) - DIESEL ENGINES
1. Introduction
The Scope of the paper concentrates on larger scale industrial Diesel Engines used mainly in power production, either as prime power supply or for standby power
However
It is noted that Diesel Engine technology is part of the reciprocating engine family of technologies - also commonly known as Internal Combustion Engines
Diesel Engines were first patented and built in the 1890’s
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IMIA WORKING GROUP PAPER 103(17) - DIESEL ENGINES
1. Introduction
From this To this(circa 1902) (2016)
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IMIA WORKING GROUP PAPER 103(17) - DIESEL ENGINES
2. The Technology
What are the component parts of a Diesel Engine?
How do they work?
What are they used for?Who makes them?
Why diesel?
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IMIA WORKING GROUP PAPER 103(17) - DIESEL ENGINES
2. The Technology – Main components
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Bedplate &Crankshaft
Cylinder liner
Camshaft
Piston
Fuel Injection system
Cylinder / Engine Block
IMIA WORKING GROUP PAPER 103(17) - DIESEL ENGINES
2. The Technology – How it works
STRUCTURAL PARTS RUNNING PARTS
Provide support for running parts Converts power of combustion into mechanical work
Keeps running parts in position / line
Form a protective casing
Provides passages for cooling water, lube etc
Support for auxiliaries
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IMIA WORKING GROUP PAPER 103(17) - DIESEL ENGINES
2. The Technology – Who / What / Why
WHO WHAT WHY
MAN Diesel & Turbo Transportation Robust and reliable
Wӓrtsilӓ Power Generation Higher Energy Density
Hyundai Heavy Industries Emergency Power Supply Relatively low up-front costs
Mitsubishi Heavy Industries Combined Heat & Power installations Rapid start-up
Caterpillar Quick ramping to full load
Cummins Flexible load response
Operate in challenging environments
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IMIA WORKING GROUP PAPER 103(17) - DIESEL ENGINES
3. Risk Management / Risk Assessment
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Internal Exposures
Physical Environment
Socio-Economic &
Political
Maintenance
Operator Training & Experience
IMIA WORKING GROUP PAPER 103(17) - DIESEL ENGINES
3. Risk Management / Risk Assessment
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Lead Times of Major
Components
Fuel Quality
Control Systems Fire
Protections & Fire Fighting
Availability & Performance Guarantees
Lubrication
Service Agreements
IMIA WORKING GROUP PAPER 103(17) - DIESEL ENGINES
4. Claims / Loss Experience
‘Operational failure is the most recurrent cause of damage . . . 50% of cases’
Followed by: External factors – 30%
Manufacturing failures – 20%
‘elements most prone to failure . . . are cylinder linings, pistons, connecting rods, crankshafts and turbo-compressors’
Accounting for approx. 80% of all claims
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IMIA WORKING GROUP PAPER 103(17) - DIESEL ENGINES
4. Claims / Loss Experience
What happens when Diesel Engines fail?
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IMIA WORKING GROUP PAPER 103(17) - DIESEL ENGINES
5. Underwriting Considerations / Insurance Aspects
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Decision
What
Who
Unknown
Where
IMIA WORKING GROUP PAPER 103(17) - DIESEL ENGINES
5. Underwriting Considerations / Insurance Aspects
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Environmental
Wordings & Clauses
Probable Maximum Loss
Exclusions
Site surveys Health & Safety
IMIA WORKING GROUP PAPER 103(17) - DIESEL ENGINES
6. Future Developments
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For investors, the drive is towards:
• Greater efficiency
• Longer overhaul intervals
• Lower maintenance costs
• Reduced emissions
For Insurers, the drive is towards:
• Fewer losses
• Less costly losses
• Better Risk Management
• Greater understanding of exposure
IMIA WORKING GROUP PAPER 103(17) - DIESEL ENGINES
7. ConclusionIs there a future for Diesel Engines?
The Working Group believes, yes, diesel engines will be around for a while longer!
ReasonsOverall, the advantages outweigh the disadvantages, for example:* Can work in difficult environments (high altitude, variable ambient temperatures)* Flexible peaking and intermediate power generation (covering supply shortfall in wind & solar power)* Good stand-alone power supply for remote locations * Higher electrical efficiency than gas turbines* Robust, relatively simple, relatively low up-front costs and highly reliable
ALWAYS PROVIDED THAT THE EQUIPMENT IS INSTALLED AND MAINTAINED PROPERLY
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