Machinery Breakdown policy is an ideal cover for all types of factory and machinery, to cover cost of repairs or relief of damaged parts as a result of unlooked-for and physical damages.
The cover affords protection to the insured machinery whilst at work or at rest and also when they're being disassembled for the purpose of cleaning, examination and catching or junking to another position or in the course of their operations or posterior re ‐ construction, handed these are performed in the same demesne.
The MBD policy covers:
The MBD insurance also covers loss or damage due to fire, in insured electrical machineries, originating from within such insured machinery and resultant fire damage to such machinery only, The Standard Fire & Special Perils Policy specifically excludes this risk.
For loss or damage occasioned by spread of fire, so originated within electrical machinery, to surrounding property, cover is available by “Oriental’s Standard Fire and Special Perils Policy.
Thereby, the following major electrical and mechanical breakdowns risks, faced by plant and machinery, are covered by this policy:
Value proposed for insurance should be equal to new replacement cost including freight, erection cost and customs duty, if any.
Rate of premium depends upon the type of machinery. Discounts are offered in respect of stand-by facility, availability of spares and favorable claims experience, subject to rules laid down in the tariff.
The insurance policy does not cover loss and/or damage from fire and allied perils, theft, overloading experiments, willful acts or gross negligence, gradually developing flaws and deterioration from normal use.
Policy is subject to a compulsory excess, which depends upon the value of machinery.
Value proposed for insurance should be equal to new replacement cost including freight, erection cost and customs duty, if any.