Machinery Breakdown
This policy covers the cost of repairs or replacement of damaged parts of plant and machinery as a result of unforeseen and sudden physical damages. The cover affords protection to the insured machinery whilst at work or at rest and also when they are being dismantled for the purpose of cleaning, inspection and overhauling or removal to another position or in the course of their operations or subsequent re‐erection, provided these are performed in the same premises.
The MBD insurance also covers loss or damage due to fire, in insured electrical machinery, originating from within such insured machinery and resultant fire damage to such machinery only,. The Standard Fire & Special Perils Policy specifically exclude this risk. So, in other words, this policy also covers the losses excluded in fire policy in terms of electrical exclusion/dynamo clause.
Coverage
This insurance covers machinery against unforeseen, sudden accidental physical loss or damage including loss or damage caused by Carelessness. Some of the scenarios/cause of loss are mentioned as below
>> Short-circuit, disruption, electrical overpressure.
>> Failure of operation of safety devices;
>> Structural defects, material defects or defects of assembly;
>> Fortuitous working accidents such as vibration, maladjustment;
>> Loosening of parts, abnormal stresses, fatigue, centrifugal force, excessive speed;
>> Defective or accidental lack of lubrication, seizure, water hammer or local overheating;
>> Falling, impact, collision or similar occurrences;
>> and Obstruction or the entry of foreign bodies
MAJOR EXTENSIONS AVAILABLE
This poliy could also be extended by paying additional premium to claim the losses resulting on account of -
-: Escalation;
-: Express freight;
-: Air freight;
-: Additional custom duty;
-: Third party liability; and
-: Owners surrounding property
MAJOR EXCLUSIONS
War, fire, lightning, inundation, flood, earthquake, subsidence, landslide, chemical explosion,
burglary and theft, impact by land borne/water borne craft;
Wear and tear, faults or defects existing at the time of commencement of insurance which ought to have been or were known to you, faults or defect for which the supplier is responsible either by law or under Accident loss/damage and/or liability resulting from overload experiments or tests requiring imposition of abnormal conditions;
Loss of use of the Insured’s plant or property or any other consequential loss incurred by the Insured;
War or warlike operations, nuclear perils; willful acts or gross negligence on the part of you or your representatives;
Loss, damage and/or liability due to faults or defects existing at the time of commencement of this insurance and known to the Insured or his responsible representatives but not disclosed to the Company; and
Policy Excess - This is the first amount of any claim that you have to bear.
The premium amount depends on the type of machinery to be insured. One can choose various rider options also. Based on number of factors, the sum insured and the premium amount are calculated by the insurance company.
Any machine successfully tested and commissioned for normal production/use can be covered under the Machinery Insurance Policy. All machines like Turbines, Compressors, Air conditioners, lathes, presses, pumps, Alternators & Generators, Switch Gears & Transformers can be covered.
Yes. Selection of critical equipment is allowed but the machine needs to be insured as a whole.
Machinery Insurance is an essential insurance for any client who relies upon machines for successful running of their business. Manufacturing, Industrial, Engineering, printing companies etc are the major buyers of this insurance.
Yes. There is a provision for refund of premium if the policy is cancelled during the currency of the policy.
Yes, the carelessness or negligence by the operator is covered in the insurance plan but a deliberate attempt due to excessive limit testing or experimentation is not covered.
Yes. For a comprehensive cover for your plant & machinery, both Fire & Machinery insurance must be availed. Under machinery insurance policy, fire is exclusion & under fire insurance electrical/mechanical breakdown is exclusion. Alternatively, you may opt for an Industrial All risk policy which is a package policy covering Fire & allied perils, Breakdown & Loss of Profit.
Yes. This Policy shall apply to the insured items whether they are at work or at rest, or being dismantled for the purpose of cleaning or overhauling, or in the course of the aforesaid operations themselves, or when being shifted within the premises, or during subsequent re-erection, but in any case only after successful commissioning.
Below are some of the policy add-ons or rider options:
• Damage to the foundation of machinery
• Damage to oil in the electrical apparatus
• Express Freight, including holiday rates, overtime charges
• Third-party liability
• Additional Customs Duty
It is a requirement of this insurance that the sum insured be equal to the cost of replacement of the machines by new machines of the same kind and same capacity, which shall mean its replacement, or reinstatement cost, including freight, custom duties, if any, and erection costs.
Yes. Machinery insurance is issued on individual machine basis incorporating the Serial No. of the machines & if the machines are replaced, the company must be informed immediately.
Yes. There is a provision in Machinery Insurance policy to change the value of machine (Sum Insured) during the currency of policy. You may contact the policy issuing office & make a request.
Yes, the policy covers the machinery in mostly all conditions, including operational, dismantled, re-erected or in an idle state.
In the event of loss or damage which can be repaired, the company will indemnify the expenses necessary to restore the damage machinery to its condition immediately before the occurrence of the loss. This will include cost involved in dismantling, freight and assembly charges. When the item is a total loss, the liability of the company will be limited to actual value of the damaged items immediately before the occurrence of the loss. Value of Salvage, if any, will be deducted from the loss settlement.
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Heading Machinery Breakdown Insurance:
Detail Machinery Breakdown Insurance
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CLAIM PROCESS
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Inform the insurance company with a rough estimate of the loss as early as possible.
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Take all steps within your power to minimize the extent of the loss or damage
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Preserve the parts affected and make them available for inspection by a representative Or Surveyor Deputed by Insurer
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Furnish All Such Information and Documentary Evidence As the Insurer May Require
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