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Machinery Breakdown Insurance

Machinery Breakdown policy is an engineering insurance cover for all kinds of plant and machinery units. This policy covers the cost of repairs or replacement of damaged parts resulting from unforeseen damages.

Under this policy, the insured unit of machinery is protected whilst at work or at rest or when it is dismantled for cleaning, inspection and overhauling; additionally, the machinery unit will also be covered when it is moved to to another position or during their operations or subsequent re‐erection, provided these are performed within the same premises.

The team at Aditya Birla Insurance Brokers can help you protect your business assets better with personal consultation and seamless claims settlements.

Features of the Machinery Breakdown Policy

The Advance Loss of Profit Insurance Policy has the following features -

  • Losses incurred due to all kinds of accidental, electrical and mechanical breakdowns resulting from internal and external causes other than those excluded from the policy.
  • Damage occurring when the insured unit of machinery is in operation or at rest or in the process of being dismantled, overhauled or during subsequent re-erection operations within the same premises.
  • If specifically requested, the machinery breakdown insurance policy can also cover damage to the machinery foundations, masonry, brickwork as well as oil in transformers caused due to unforeseen circumstances, other than specified excluded perils and forms of damage.

Add-on options

Add-on covers under Machinery Breakdown Insurance are as follows:

  • Air Freight
  • Policy holder’s Own Surrounding Property
  • Express Freight (excluding Air Freight), Overtime and Holiday Wages
  • Third Party Liability

Exclusions under the Machinery Breakdown Insurance Policy

The Machinery Breakdown Policy does not cover:

  • Fire and allied perils
  • External sources of damage like war or disruptions due to nuclear perils
  • Deterioration of machinery from regular wear and tear or exposure
  • Willful act / negligence of the insured
  • Consequential losses or any kind
  • Damage to machinery due to operations beyond the machine’s capacity.
  • Partial fractures in machinery not leading to immediate disruption of operations
  • Contractual liabilities
  • Pre-existing defects

Sum Insured

The sum insured for Machinery Breakdown Insurance is determined by the replacement cost of each piece of machinery. This includes the cost of Customs duty, Freight, Cost of Erection and Testing.

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1800 270 7000


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