Machinery Breakdown Insurance Policy (MB Policy) was devised to grant industry effective insurance cover for plant and machinery’s against sudden breakdowns and other accidental physical damages. The traditional fire insurance will no longer sufficient in the present scenario, as the industries are started using high technology and on high cost equipment which pose new kind of risks.scop of cover provided by m.b.insurance policy
This policy will cover
It could be a sudden breakdown or physical damage by external means. The cover is grantable while the machine is
- At work.
- At rest .
- While being dismantled for the purpose of cleaning/overhauling .
- Removal to another position
- Subsequent re-erection
Provided these are performed at the insured premises. In case of electrical machinery, damage due to fire originating within is covered by M.B. policy as the fire policy excludes this risk. For better understanding of this cover, examples of few losses normally covered by this policy are as under:-
- Faulty operations
- Lack of skill and carelessness of operator.
- Fault in erection .
- Defective lubrication.
- Excess vibration .
- Abnormal stresses
- Overheating .
- Centrifugal forces.
- Insulation failure .
- Short circuit /Voltage fluctuation.
- Arcing .
- Failure of Protective devices.
- Falling objects.
- Entry of foreign bodies.
- Imbalance .
- Accidental over speeding
- Abnormal operating conditions
The following nature of losses are not covered by this policy:-
- Fire, lighting, explosion, riot, strike, malicious damage, aircraft damage, storm, cyclone, flood, inundation, earthquake, subsidence and land slide and other perils which are covered under fire policy.
- Damage due to overload experiments. .
- Gradually developing flaws, defects, cracks or partial fractures in any part not necessitating immediate stoppage although at some future time repair or replacement of the parts may be necessary.
- Normal wear and tear.
- Loss or damage due to willful act or gross negligence.
- Faults/defects existing at the time of attachment of the insurance which are known to the insured.
- Loss, destruction or damage to any electrical and/or electronic machine, apparatus, fixture or fitting (excluding fans and electrical wiring in dwellings) arising from or occassioned by over running, excessive pressure, short circuiting, arcing, self-heating, or leakage of electricity, from whatever cause(lightning included).
- Loss or damage to non-metallic parts, heat resisting refractory linings, consumable nature of parts like belts, rope chains, tyres, moulds, blades, cutters, knives, exchangeable tools and operating media viz., coolent oil, engine oil, lubricant oil etc.Unless loss or damage to the equipment / Machinery is indemnifiable in terms of Policy.
- Loss or damage for which supplier/manufacture is responsible.
- Consequential loss of any kind.
- War and war like operations, nuclear perils.
The M.B. Insurance Policy is subject to an excess clause. Excess is the minimum amount which the insured has to bear in the event of every claim.sum insured:
The sum to be declared for this insurance must always represent the current new replacement value of the individual equipments covered. This includes freight, taxes, customs duty if any, handling and erection charges.