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Machinery Breakdown
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| Machinery Breakdown |
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| Scope of Cover |
| This is a policy, which covers
physical loss or damage to machinery and equipment against
unforeseen and sudden, physical loss of, or damage to
the insured items, necessitating their repair or replacement,
other than specified excluded perils. Monetary costs involved
for restoration of machine after breakdown to its original
state are covered by the machinery (breakdown) insurance
policy. Cover is valid during the time the machinery is
at work or at rest. Machinery being dismantled for cleaning
/ overhauling and in course of these operations being
shifted within specified premises or being re-erected
subsequently is also covered. |
| The policy covers
all kinds of electrical and mechanical breakdown subject
to the following exclusions: |
| a. |
Faulty material/workmanship
of the machine |
| b. |
Action of centrifugal forces contributing
to disruption of the rotating parts |
| c. |
Failure of lubrication due to malfunctioning
of lubricating oil pumps or its breakdown |
| d. |
Malfunctioning or failure of safety
devices |
| e. |
Electrical short-circuiting including
electrical fire originating from failure of insulation
and or over voltage or under voltage conditions. |
| f. |
Abrupt and sudden stoppage of other
connected machinery. |
| g. |
Entry of foreign bodies into running machine |
| h. |
Inexperienced operations causing damage due to
error of judgment or error in operation |
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| Sum Insured |
| The sum insured should represent
the present day replacement value of the insured item,
which includes all incidental expenses like custom duties,
taxes, excise, freight, insurance charges, handling charges
etc. In case the sum insured under the policy is less
than as per the above requirement the claim will be paid
only in such proportion as the sum insured bears to the
current replacement cost of similar new machinery. |
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| Exclusions |
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Willful act / negligence |
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Fire and related perils |
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Damage to electrical apparatus only
subsequent to short circuit |
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Overload experiments / tests / abnormal
operating conditions |
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Gradual flaws / defects not necessitating
immediate stoppages |
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Normal wears and tears in the Machinery
or equipments insured. |
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Contractual Liabilities accepted by
insured in the contracts. |
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Defects that are pre- existing in
the machine or equipment insured. |
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Consequential losses due to Machinery
breakdown. |
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Parts requiring regular replacements |
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Terrorism |
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| Extensions |
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Damage to foundation of
machinery |
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Damage to oil in electrical apparatus |
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Escalation |
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Express Freight (excluding Air Freight),
Overtime and Holiday |
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Rates of Wages |
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Air Freight |
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Owner's Surrounding Property |
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Third Party Liability |
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Additional Customs Duty |
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Premium Calculation