Machinery breakdown insurance offers financial protection to factory & industry owners for damage to or breakdown of the machines used by them. The policy covers accidental breakdown and physical damage to machinery from both external and internal causes. Some such causes can be short circuit, loosening of parts, excessive speed and lack of lubrication, excess voltage etc.
WHO SHOULD BUY
Owners of machineries installed at factories, power plants, commercial or residential complexes.
KEY FEATURES OF THE POLICY
The coverage operates irrespective of whether the machinery is working / at rest/ dismantled for cleaning purposes.
Some of the instances that will be covered under the policy are as follows:
• Short circuits, excess voltage & faulty designs, faulty materials, faulty castings that manifest during the warranty period
• Carelessness or negligence of the operators in operating the machines
• Cylinders, compressors, and such other apparatus subject to internal pressure or centrifugal force
• Fire originating from the machine
• Impact from falling objects, collision with external objects leading to breakdown
KEY EXCLUSIONS
• War & Allied perils
• Fire & allied perils, theft
• Loss due to overload or experiments
• Normal wear & tear and gradual deterioration
• Losses due to faults existing prior to buying insurance
• Damage to belts, chains, ropes, rubber tyres or any other exchangeable tools unless any loss or damage to the machinery is indemnifiable
• Consequential loss of any kind
