We typically think of a “warranty” as something that provides protection to the customers, by the manufacturer of its product, for production or service defects in which the purchaser might experience early in their ownership. But in insurance policies, a “warranty” is an unlikely reversal of the roles. Warranties are important provisions in an insurance contract that require the Insured to adhere to very specific rules in order for the policy to be valid.Therefore, this puts forward higher requirements for manufacturers, only manufacturers to meet the quality requirements of products and services, to avoid unnecessary losses.

 

Warranty History

 

NAMAG is very proud of the fact that since we start the business in China in 1997, we have had exactly zero major warrantyissues on the hundreds of millions of dollars of pressure vessels, heat exchangers, prefabricated piping, columns, gas turbine auxiliary equipment and processmodules exported worldwide. Claims such as these are easy to make and hard to verify; our list ofinternationally respected repeat customers tells the real story. Smaller issues have come up over timeand Namag’s response has been swift and comprehensive.

 

Total Commitment

 

As we’ve said before, the future of our business clearly depends on delivering excellentproduct qualityand servicesconsistently. In the unlikely event that we overlook something, you can be 100% assured that Namag senior management is totally committed to making the situation right, anywhere in world.

 

Our Process

 

If a warranty issue is discovered, Namagwillbe in place to address and rectify itas per the following processes:

1- Namag’s project manager will communicate with the customers to fully understand all specificdetails of the warranty issue.

2-Namag’s project manager will distribute the warranty issue details internally to QC and allrelevant departments for review.

3- Namag’s project manager will organize a warranty issue review meeting with all relevant departments.

4- Namag’s project team will review all relevant documents, calculations, and drawings toconfirm existence of the warranty issue, possible root-cause, and which party is most likelyresponsible.

5- Namag may travel to customer’s site to inspect equipment or observe tests performed by thirdparties.

a. If it is determined that the warranty issue exists but that Namag is not responsible, Namag will fullyexplain its position to the customer and seek agreement as to the party that should be responsible.Should the customer require Namag to make subsequent repairs, Namag will arrange to complete thework and the customer will be responsible for the full costs of the repair.

b. If it is determined that the warranty issue exists and Namag’s responsibility, the process will go to next step:

6- Namag will work quickly to propose a solution and submit for customer review and approval.

7- After customer approval of the repair solution,Namag will arrange to complete the work. If the project is located in China,Namag will send its own team; if the project is in abroad, Namag will request that the customer locate a localsubcontractor to complete the necessary repairs. Namag will require a cost estimate for approval in advance and be responsible for the full repair costs.

8- After the repair is completed, Namag will require the customer to sign a final inspection report.

 

Standard Insurance Coverage

 

Namag carries Public Liability Insurance in the amount of RMB13 million (approximately USD 2 million)and Product Liability Insurance in the amount of RMB13 million (approximately USD 2 million), which are covered in the umbrella Commercial General Liability (CGL) insurance policy.

 

This type of coverage applies to third parties visiting the Namag and products & services Namag provided to Customers.

 

Additional Insurance

 

Our customer all have different requirements for product liability or other insurance: policy amount, scope,jurisdiction, etc. As such Namag will work closely with your risk management team tounderstand any additional insurance coverage required. The required insurance from reputable Chineseor international underwriters can be purchased by Namag on a job specific basis, the price of which will beadded to the quote.