Machinery Breakdown Insurance
This Insurance offers financial protection in case the machine suffers accidental, electrical and mechanical breakdown requiring repairs and/or replacement. Machinery Breakdown Insurance covers all types of Industrial equipment like Turbines, Compressors, Generators, Transformers, Rectifiers, Electric motors, Diesel engines, Pumps, Wind mills, Agricultural Machinery etc.,
Sum Insured: The sum insured has to represent the new replacement value of the machine including Customs Duty, freight and cost of erection & testing
What it covers
Machinery against unforeseen, sudden accidental physical loss or damage caused by-
- Carelessness
- 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
- Obstruction or the entry of foreign bodies
Whilst:-
- Working or at rest
- Being dismantled moved or re-erected for the purpose of cleaning, inspection, repair or installation in another position within the location.
Major exclusions
- Fire & allied perils
- Loss/ damage arising out of overload experiments or tests requiring imposition of abnormal conditions
- Gradually developing flaws, Wear and tear
- Wilful act/ Wilful negligence of Insured
- Loss or damage for which manufacturer/ supplier is responsible either by law or contract
- Faults or defects existing at the time of commencement of insurance, which were known to the insured/ responsible representative but not disclosed to the insurer
- Second hand machinery
- Obsolete or obsolescent machinery
- Political risks exclusions
- Radioactive exclusions
- Pollution/contamination exclusions
