Suvidha Insurance Broking Pvt. Ltd. is an IRDA approved Insurance Broker (Direct General) (Licence No. DB-218/03; 264) for non-life sectors of insurance authorized to provide risk management and other insurance related services.

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Phone +91 89103 20845
Location 174, Chittaranjan Avenue, 5th Floor, Kolkata-700 007

Machinery Breakdown policy

Home Machinery Breakdown policy

Machinery Breakdown policy

Machinery Breakdown Insurance policy covers for unforeseen and sudden damage to the insured machinery, while at work or at rest and during cleaning, inspection, overhauling or removal to another position within the premises.

Coverage:

Breakdown is not only caused due to short circuit (which is only one of the various causes of breakdown) but also from other causes, viz.,:

Faulty material, design, construction or erection
Vibration, maladjustment, misalignment
Defective lubrication, loosening of parts, abnormal stress, molecular fatigue, self heating, centrifugal force, explosion due to internal pressure, implosion due to external pressure or internal vacuum
Excessive electrical pressure whether due to atmospheric electricity or otherwise, failure of insulation, short circuit, open circuit or arcing including damage by internal fire so setup
Failure of connected machinery or protective device
Lack of skill, carelessness on the part of employees or operators
Falling, impact, collision and similar instances
Obstruction or entry of foreign bodies.

The main elements of insurance are thus electrical and mechanical breakdown and accidental damages from certain extraneous causes.

What Equipment is covered under the Policy?

All stationary capital equipments can be covered under this policy. The broad categories of equipment are:

Machinery common to all industries

Electrical Items: Items such as switch gear, oil or air circuit breaker, cables, power and distribution transformers, capacitor banks, rectifiers/furnace transformers, electric motors, diesel generator or turbo generators sets, gas turbines, etc.

Non-electrical Items: Items such as compressors, air receivers, blowers or fans, gear box, pumps, steam turbine, boring machines, hydraulic press, milling or shearing machines, drilling machine and process machinery like paper or pulp making, printing machinery, rubber, plastic, textile machinery, cement mill, pulverizing mill, fertilizer plant and paper mill, etc.

Machinery in specific industries

Process machinery in various industries such as petrochemical plants, refineries, cold storage, engineering and metal industries, paper or pulp making, printing, rubber & plastics and textile industry, etc.

Exclusions:
Fire and Allied Perils: The policy does not cover damage due to perils covered in the Standard Fire & Special Perils Policy.
Explosion of any kind.
Damage occasioned by war and civil war or riot, strike and similar risks or nuclear risks
Damages resulting from experiments or over load or similar tests, excluding routine and maintenance tests.
Wastage of material or the like or wearing away or wearing out of any part of the machine caused by or naturally resulting from ordinary usage or working or other gradual deterioration.
Loss or damage caused by willful act or gross negligence on the part of the insured or his responsible representative.
Loss of use or any other kind of consequential loss.
Faults or defects, which were in existence and known to the insured when the insurance was arranged.
Damage due to fault or defects for which the manufacturer or the supplier is responsible either by law or under contract.
Exchangeable parts and tools such as belts, chains, dies, moulds, blades, cutters, knives, conveyor belts, engraved cylinders, engraved rolls and similar other parts including all objects not made of metal.
Compulsory excess/deductible: The specified percentage of sum insured (ranging from 0.5% to 1% depending on the sum insured) to be deducted from every claim.
Certain guidelines for machinery to be insured: -
Each machinery to be entered with necessary specifications;
The sum insured must be calculated on the present day new replacement value of the machinery to be insured including provision for packing, freight and also value of erection costs, custom duty, etc.
If any of the machinery is a ‘stand by’ this fact should be mentioned.
All portable machinery must be so designated. All items in the open must be so described separately.
Separate value for foundations masonry and brickwork or Oil in transformers and other electrical are to be specified if cover is required.
No Machinery Insurance Policy should be issued to cover electronic equipments such as Computers, Medical and Biomedical equipments, Microprocessors, Audio/Visual equipments. These equipments are to be covered only under Electronic Equipment Insurance (EEI) Policy.