What You Should Know Before Choosing Machinery Breakdown Insurance
This policy helps cover financial losses caused by sudden electrical or mechanical breakdown of machinery. It pays for the repair or replacement cost of damaged machines.
What It Covers
- Faulty material or workmanship
- Damage from centrifugal force in rotating parts
- Lubrication failure due to pump malfunction
- Failure of safety devices
- Electrical short circuits or insulation failure
- Sudden stoppage of connected machinery
- Entry of foreign objects into machines
- Damage caused by operator error or inexperience
Optional Add-on Covers
- Damage to machine foundation
- Damage to oil in electrical equipment
- Express freight, overtime, and holiday charges
- Air freight costs
- Additional custom duty charges
- Damage to surrounding property
- Third-party liability for injury or property damage
Who Can Take This Policy
- Individual machine owners
- Businesses or companies with a financial interest in the machinery
Machines That Can Be Covered
- Industrial machines like compressors, pumps, turbines
- Electrical equipment like transformers, motors, generators
Sum Insured
- The insured value should match the current replacement cost of a similar new machine, including taxes, freight, duties, and related expenses
- If underinsured, claim payment may be reduced proportionately
Disclaimer
This is a general overview for understanding purposes. Refer to the policy document for complete terms, conditions, and exclusions.
