Machinery Breakdown Policy

Risk covered and Premium Rating

• Policy covers the insured machinery plant and equipments while at work/idle being dismantled or removed or re-erected if performed in the same premises damage to electrical machinery due to fire originating within itself.
• It covers loss or damage due to faulty operation adjustment casting vibration entry of foreign objects loosening of parts self heating centrifugal force short circuit.

Basis of Indemnity

The sum insured representing the present replacement cost of the machinery.

Partial Loss

Full cost of parts plus the labour charges to and fro freight customs duty and charges for dismantling and re-erection. Excess applicable to the affected item is deducted from claim. Depreciation is applied for items with limited life.

Total Loss

Actual value of items immediately before the occurrence less appropriate depreciation. If under insured claim is paid only on proportionate basis.

What will policy not pay

Policy will not pay for loss/damage due to

• Fire and allied perils
• War and War like operations Nuclear perils
• Wilful act or gross negligence existing defects normal wear and tear and consequential loss
• Loss or damage falling under manufacturer's warranty