Machinery Insurance

Highlights

This is a policy which covers financial loss incurred by the insured due to loss or damage to machinery as a result of sudden accidental electrical and mechanical breakdown.

It reimburses the insured for the cost of repairs or replacement of machinery of like nature.

Scope

The policy covers all kinds of electrical and mechanical breakdown resulting from the following incidents:

1. Faulty material/workmanship of the machine
2. Action of centrifugal forces contributing to disruption of the rotating parts
3. Failure of lubrication due to malfunctioning of lubricating oil pumps or its breakdown.
4. Malfunctioning or failure of safety devices.
5. Electrical short-circuiting including electrical fire originating from failure of insulation and or over voltage or under voltage conditions.
6. Abrupt and sudden stoppage of other connected machinery.
7. Entry of foreign bodies into running machine.
8. Inexperienced operations causing damage due to error of judgment or error in operation.

Add on covers

The policy can be extended to include the following risks on payment of additional premium.

1. Damage to foundation of machinery
2. Damage to oil in electrical apparatus
3. Express freight (excluding air freight), holiday rates, overtime charges
4. Air freight
5. Additional custom duty i.e the additional percentage of duty payable at the time of reimport for replacement over and above the percentage of duty included in the original sum insured.
6. Own surrounding property i.e. damage to the insured's own existing property or property in his custody or control (not included in the sum insured of the policy) due to any damage to the insured machines which is covered under the policy.
7. Third party liability i.e. liability falling on the insured for bodily injury to any other party other than those covered by the policy or for property damage belonging to such other party.

Note: Policy details given are indicative, not exhaustive. Please contact your nearest NIA office for further details.