Machinery Breakdown Insurance: Coverage, Claims & Exclusions

What It Covers

Machinery Breakdown Insurance protects businesses against sudden and accidental damage to machinery and equipment. It can help cover eligible repair or replacement costs and reduce financial losses caused by unexpected breakdowns.

- Electrical and mechanical breakdowns caused by sudden damage

- Short circuits and excess voltage

- Accidental damage, impact, and collision

- Abnormal operating conditions

- Damage caused by internal pressure or centrifugal force

- Certain fire-related machinery damage

- Repair, labour, dismantling, and reinstallation costs

- Additional covers such as air freight, customs duty, and third-party liability may be available for an extra premium

Claim Process

- Inform the insurance company immediately after the machinery breakdown

- Provide details about the nature and extent of the damage

- Preserve the damaged or defective machinery parts for inspection

- Submit required documents such as the policy document, ID proof, machinery invoice, and engineer`s report

- The insurer will process the eligible claim after inspection and document verification

What Is Not Covered

- Normal wear and tear

- Pre-existing defects

- War, riots, and strikes

- Damage caused by overload experiments

- Known defects that were not repaired

- Certain fire, theft, and consequential losses

- Damage to belts, chains, ropes, and other replaceable parts, unless specifically covered

Benefits

- Helps cover eligible machinery repair or replacement expenses

- Reduces the financial impact of unexpected breakdowns

- Helps businesses manage cash flow and operational interruptions

- Optional coverage may be available for business interruption and third-party liability

Disclaimer

This is a general overview for understanding purposes. Coverage, exclusions, claim procedures, and benefits may vary between insurance polilicies and insurers. Always review the full policy terms and conditions carefully before making any decision.