Machinery Breakdown

Machinery Breakdown 

Machinery insurance is important for anyone operating technical plant or machinery, whether they be large industrial enterprises or small firms. Unexpected damage to machinery and equipment can pose a threat to a company’s very existence.

Machinery Insurance covers diverse spectrum of machines and equipment in commercial and production facilities, such as

• Power generating units (boilers, turbines, generators, gas turbines, etc),
• Power distribution plant (transformers, high- and low-voltage switchgear, etc)
• Production machinery, plant and equipment (electric motors, compressors, pumps, gear boxes vessels, reactors, etc)

Machinery Insurance is a supplementary cover for the machinery/equipment which are otherwise required to be insured along with building, stock etc on the premises under the standard fire/property policy

Key benefits 

• Comprehensive cover for operational machinery whilst working or at rest and/or during overhauling, relocation within the premises.

• Specially designed policy to cover accidental damage to plant, equipments and machineries for operational failure, unforeseen conditions, operational negligence, etc.

• Suitable irrespective of trade and size of operations

• Option to cover machinery loss of profits along with machinery breakdown cover

• Cover can be adapted to the specific features of a risk by means of a series of other optional extensions

• Reinstatement of sum insured following loss or damage

Product details 

Machinery insurance is “accident” insurance for machinery, and provides protection against any sudden and unforeseen physical loss or damage that limits the operability of the insured item and necessitates its repair or replacement. Such accidents can be caused by entry of foreign particle, momentary overloading, abnormal vibration, defective lubrication, stress, self heating, centrifugal forces, short circuiting, arcing, etc.

Premium rates are calculated separately for each type of machine. The rates are applied to the machines’ value when new (replacement value)

The sum insured should always be the new replacement value of the insured machinery. This includes the value of the new item, customs duties, transportation and installation costs. The current market value is not a suitable value, as it constantly changes, and different valuation criteria and methods are possible

On request the policy can be extended to cover various optional extensions viz. claim preparation costs, debris removal expenses, expediting expenses, etc