Machinery Breakdown (MBD) Insurance Policy

  • Also known as Machinery Insurance Policy
  • Covers all kinds of machinery and equipment in a particular location like a factory, an office, a workshop etc., These machineries and equipment are generally fixed and non – moveable.
  • The machinery/equipment is covered whilst working, or at rest or being dismantled and re-erected for the purpose of repairs or overhauling
  • Property owners, mortgagees, pledgees, bailees, trustees, Bankers and financiers can insure their interest in the property
  • What is covered:
    Unforeseen, sudden physical loss or damage to the machinery due to any fortuitous break down (mechanical or electrical) caused by events like

    • Faulty design, faulty erection, defects in casting and material.
    • Faulty operation, failure of safety/ lubrication/ control systems.
    • Tearing apart due to centrifugal forces.
    • Short circuit, excess voltage.
    • Water shortage in boilers.
    • Damages due to human element, lack of skill, negligence.
  • Special features:
    1. Selected machineries/equipment can be insured based on risk perception.
    2. The machinery equipment should be insured for current value of new machine of the same type and capacity