You may refer to the follollowing links for information

http://www.schneider-electric.nl/docs/CpTech_7_Type2coord.pdf

http://www.farah.jo/pdf_XT/User's-Guide-to-IEC-Type-1-and-Type-2-Coordination.pdf

Details from the above article copied below for your ready reference -

The International Electrotechnical Commission (IEC) developed

short circuit performance criteria for contactors and

starters called Type 1 coordination and Type 2 coordination.

This defines motor controller protection levels following a

short circuit fault. In order to achieve this performance, the

combination of a motor controller (contactor or starter) and

short circuit protective device (manual motor protector, circuit

breaker or fuse) must meet the following criteria as

specified by IEC 60947-4-1 — Low voltage switchgear and

controlgear — Part 4-1: Contactors and motor-starters —

Electromechanical contactors and motor-starters:

Type 1 Coordination

requires that under short circuit

conditions, the contactor or starter shall cause no danger to

persons or installation and may not be suitable for further

service without repair and replacement of parts.

In this case,

significant damage is allowed

to the contactor/

starter (e.g. contact welding, burning, or disintegration) and

the overload relay (e.g. component harm or heater element

burn-out).

Type 2 Coordination

requires that under short circuit

conditions, the contactor or starter shall cause no danger to

persons or installation and shall be suitable for further use.

The risk of contact welding is recognized, in which case the

manufacturer shall indicate the measures to be taken as

regards to the maintenance of the equipment.

In this case, the contactor/starter is

able to continue use

after

the occurrence of a short circuit fault. Light contact burning

or tack welding may occur provided the contacts are easily

separable.