- What is the purpose of taking the Machinery Break down Policy?
Machinery and Equipment used in various industries are exposed to risks of unforeseen and sudden mechanical or electrical breakdown resulting in loss or damage. Such losses may be repairable or sometimes need replacement. Machinery Breakdown is designed to provide coverage for machinery against any unforeseen and sudden physical loss or damage, necessitating its repair or replacement due to causes such as :- vibration, mal-adjustment, mal-alignment,- defective lubrication, abnormal stress, centrifugal force,-explosion/implosion, impact, collision, falling,- excessive electrical pressure, failure of insulation, short circuit arcing- failure of protective devices, entry of foreign material,- lack of skill or negligence
- Who all can take Machinery Insurance Policy ?
Machinery Insurance is an essential insurance for any client who relies upon machines for successful running of their business. Manufacturing, Industrial, Engineering, printing companies etc are the major buyers of this insurance.
- What all machines can be covered under the policy?
Any machine successfully tested and commissioned for normal production/use can be covered under the Machinery Insurance Policy. All machines like Turbines, Compressors, Air conditioners, lathes, presses, pumps, Alternators & Generators, Switch Gears & Transformers can be covered.
- Can I prefer to insure only a few critical machines & avoid taking insurance for other auxillary machines?
Yes. Selection of critical equipment is allowed but the machine needs to be insured as a whole.
- Should I take both Fire Insurance and Machinery Insurance for my plant & machinery or Machinery insurance alone will suffice?
Yes. For a comprehensive cover for your plant & machinery, both Fire & Machinery insurance must be availed. Under machinery insurance policy, fire is exclusion & under fire insurance electrical/mechanical breakdown is exclusion. Alternatively, you may opt for an Industrial All risk policy which is a package policy covering Fire & allied perils, Breakdown & Loss of Profit.
- For what value of machine the insurance should be purchased?
It is a requirement of this insurance that the sum insured be equal to the cost of replacement of the machines by new machines of the same kind and same capacity, which shall mean its replacement, or reinstatement cost, including freight, custom duties, if any, and erection costs.
- Are there any additional covers available in the Machinery Insurance policy?
Yes. Apart from the standard coverages, additional covers are also available which you can select as per your requirements. The add-on covers available are as under : - Insured's own surrounding property cover- Third Party Liability- Express freight overtime & holiday wages (Excluding Air freight)- Air freight- Additional Custom Duty- Escalation
- Can I change the Value of Insurance during the currency of the policy?
Yes. There is a provision in Machinery Insurance policy to change the value of machine (Sum Insured) during the currency of policy. You may contact the policy issuing office & make a request.
- Am I eligible for a refund if I cancel the policy during the currency of the policy?
Yes. There is a provision for refund of premium if the policy is cancelled during the currency of the policy.
- Will my Machinery insurance cover damages to machines while they are undergoing any cleaning or overhauling?
Yes. This Policy shall apply to the insured items whether they are at work or at rest, or being dismantled for the purpose of cleaning or overhauling, or in the course of the aforesaid operations themselves, or when being shifted within the premises, or during subsequent re-erection, but in any case only after successful commissioning.
- Should I inform the company if my old machine is replaced by a new identical machine of same type & model?
Yes. Machinery insurance is issued on individual machine basis incorporating the Serial No. of the machines & if the machines are replaced, the company must be informed immediately.
- What will be the basis of settlement of claim under this policy?
In the event of loss or damage which can be repaired, the company will indemnify the expenses necessary to restore the damage machinery to its condition immediately before the occurrence of the loss. This will include cost involved in dismantling, freight and assembly charges.When the item is a total loss, the liability of the company will be limited to actual value of the damaged items immediately before the occurrence of the loss. Value of Salvage, if any, will be deducted from the loss settlement.