Machinery Breakdown Insurance Policy
The Policy covers
Sudden and unforeseen accidental physical damage to machinery while:
- The machinery is working or at rest
-
The machinery is being dismantled for cleaning / overhauling and in
course of these operations, being shifted within specified premises or
being re-erected subsequently.
Basis of Sum Insured
Current replacement value of the Machinery/ Equipment
The Policy does not cover
- Fire and related perils
- Overload experiments / tests / abnormal operating conditions
- Gradually developed flaws / defects not necessitating immediate stoppages
- Normal wear and tear
- Wilful act / negligence
- Contractual liabilities
- Pre-existing defects
- Consequential losses
- Parts requiring regular replacements
- Loss for which manufacturer is responsible
You can opt for the following extensions
- Escalation upto 25% of sum insured
- Express freight, overtime and holiday rates of wages
- Air freight
- Owners surrounding property
- Third party liability
- Additional customs duty
Basis of settlement of claims
Partial Loss
Full cost of parts, labour charges, freight, duty, dismantling and
re-erection charges. Depreciation applicable only on parts with limited
life.
Total loss
Actual value immediately before the loss less salvage plus freight and cost of erection |
