Features & Benefits
Requirements
Manufacturing is like the nerve center of the industrial sector. A lot of modern businesses depend on their ever-growing manufacturing power, and the machines used represent a major investment for businesses. Unexpected damages can affect your production capability, and in extreme situations, even stop it completely. This is when a Machinery Breakdown Insurance can help you out.
Benefits
Physical damage to machinery from accidents or unforeseen circumstances can slow down or even halt production, and can majorly affect your business. This policy provides coverage for the heavy additional costs that have to be paid for repairing or replacing affected machinery.
Sum Insured
The sum insured under this policy is the replacement value of the equipment, duties paid, freight charges, and erection costs. The value of foundation blocks or brickwork, lubrication oils, etc. is decided separately.
Premium
The premium is calculated on the basis of the type of equipment insured and their capacity. Different machinery attracts a different premium.
Coverage
Eligibility
You can avail this policy if you are:
- The owner(s) of the machinery
- Lessor / Lessee of the machinery
- Different parties with financial interests in the machinery.
Policy Inclusion
This insurance policy compensates you for the costs of repair or replacement arising from covered, unforeseen circumstances. This coverage is effective even if the equipment is not in use, has been dismantled for maintenance or overhauling, or is being moved on your premises.
With an additional premium, the policy can be extended to cover the following:
- Escalation
- Property surrounding insured equipment
- Third party liability
- Express freight, overtime, holiday wages etc.
- Air freight
- Additional customs duty
Policy Exclusion
Machinery Breakdown insurance is for the electrical and mechanical equipment in industry. Electronic equipment like computers, medical, and biomedical equipment are not protected. This policy has a list of ‘named excluded perils’ which are specific risks that will not be covered. These risks include:
- Fire
- War and nuclear disasters
- Damage due to overload
- Wear and tear
- Wilful act of damage
- Gross negligence
- Pre-existing defects known to you
The policy is also subject to deductible excess, as will be specified in the policy wordings.
