Machinery Breakdown Insurance
Scope of Cover
The Insurance Policy broadly covers loss due to all kinds of accidental, electrical
and mechanical breakdowns due to internal and external causes. Cover is granted
during the time the machinery is in operation or rest or in the process of dismantling,
overhauls or during subsequent re-erection at the same premises.
Significant Exclusions
The Insurance Policy does not cover loss and/or damage from Fire and allied perils,
Theft, overloading experiments, wilful acts or gross negligence, gradually developing
flaws and deterioration from normal use.
Sum Insured
Value proposed for insurance should be equal to new replacement cost including Freight,
Erection Cost, Customs Duty, if any.
Premium
Rate of premium depends upon the type of machinery and other factors. Discounts
are offered in respect of stand-by facility, availability of spares and favourable
claims experience, subject to rules laid down in the Tariff.
Excess
Policy is subject to a compulsory Excess, which depends upon the value of machinery.
Main Extensions
- Air Freight
- Express Freight (excluding Air Freight) Overtime & Holiday Wages
- Insured’s own Surrounding Property
- Third Party Liability
Main exclusion:
- Faulty Design
- Defective material or casting
- Bad workmanship
- Manufacturing defects
- Mechanical / electrical breakdown or derangement of erection machinery & equipment
- Consequential losses
View Non-Motor Claims Procedure
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Proposal Form
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