What add-ons are available under the machinery breakdown insurance plan?

The policyholders can purchase the following add-ons along with a machinery breakdown insurance plan: Damage to the foundation of machinery Damage to oil in electrical apparatus Third-party liability Additional custom duty Express freight, including holiday rates, overtime charges

What kind of loss or damages are covered under the machinery breakdown insurance plan?

The machinery breakdown insurance policy covers operational, dismantled, re-erected or ideal state damages.

How premium amount is calculated for a machinery breakdown insurance plan?

The premium for a machinery breakdown insurance plan is calculated on the basis of several factors, including the type of machinery and riders that you opt for with the policy.

What are the exclusions on the machinery breakdown insurance policy?

Following are losses not covered by the machinery breakdown insurance plan: Fire and allied perils Normal wear and tear of machinery War, riots, and strikes Overloading experimental damages Neglecting security measures Willful act

Which companies offer machinery breakdown insurance plans in India?

Listed below are some companies offering machinery breakdown insurance policies: HDFC Ergo Insurance SBI General Insurance Royal Sundaram Insurance IFFCO-Tokio General Insurance ICICI Lombard General Insurance

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Machinery Breakdown Insurance

Physical damage to any machinery in a factory can disturb the overall functioning of your business. Firstly, you cannot manufacture products without machinery. And secondly, you need to spend money to get the machinery repaired. But you can guard yourself against such eventualities by purchasing machinery breakdown insurance.

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What is Machinery Breakdown Insurance?

Machinery breakdown insurance provides financial security to factories and industries for their machinery. The plan covers accidental breakdowns, the cost of repair or replacement of damaged pieces of machinery, or any other physical damage.

In the case of the replacement of damaged parts of the machinery, the insurer calculates the loss in two ways:

Partial Loss: If there is a partial loss of the machinery, the coverage will pay for the full cost of the parts, including labor costs, air freight costs, customs duties, and the cost associated with the machinery’s disassembly and re-erection.
Total Loss: In this case, the sum assured is equal to the actual value of the items as of the time of the occurrence, less any applicable depreciation value.

Machinery breakdowns will ensure the seamless functioning of your business. If your machinery or any other equipment gets damaged, the insurer will pay compensation. Therefore, you will not have to bear the hefty cost of the damages.

Benefits of Machinery Breakdown Insurance

Listed below are some of the benefits of a machinery breakdown insurance policy:

The business owner can recover the losses by receiving compensation for the equipment and the insured components.
It provides coverage for many other items like air freight, customs duty, labour charges, and more.
The plan provides comprehensive coverage for the machinery. As a result, it brings peace of mind to the business owners.
Many insurers provide business interruption claims under the policy and offer discounts as compensation to the companies.
Since machinery breakdown insurance is offered by the best general insurance companies in India, policyholders get access to great customer support and an easy claim settlement process.
Some insurance plans also provide coverage for third-party liabilities.

Frequently Asked Question

1
What add-ons are available under the machinery breakdown insurance plan?
The policyholders can purchase the following add-ons along with a machinery breakdown insurance plan:
- Damage to the foundation of machinery
- Damage to oil in electrical apparatus
- Third-party liability
- Additional custom duty
- Express freight, including holiday rates, overtime charges
2
What kind of loss or damages are covered under the machinery breakdown insurance plan?
The machinery breakdown insurance policy covers operational, dismantled, re-erected or ideal state damages.
3
How premium amount is calculated for a machinery breakdown insurance plan?
The premium for a machinery breakdown insurance plan is calculated on the basis of several factors, including the type of machinery and riders that you opt for with the policy.
4
What are the exclusions on the machinery breakdown insurance policy?
Following are losses not covered by the machinery breakdown insurance plan:
- Fire and allied perils
- Normal wear and tear of machinery
- War, riots, and strikes
- Overloading experimental damages
- Neglecting security measures
- Willful act
5
Which companies offer machinery breakdown insurance plans in India?
Listed below are some companies offering machinery breakdown insurance policies:
- HDFC Ergo Insurance
- SBI General Insurance
- Royal Sundaram Insurance
- IFFCO-Tokio General Insurance
- ICICI Lombard General Insurance