Machinery Breakdown Insurance (MBD)

Machinery Breakdown policy is an ideal cover for all kinds of plant and machinery, to cover cost of repairs or replacement of damaged parts as a result of unforeseen and sudden physical damages.

The cover affords protection to the insured machinery whilst at work or at rest and also when they are being dismantled for the purpose of cleaning, inspection and overhauling or removal to another position or in the course of their operations or subsequent re-erection, provided these are performed in the same premises.

SCOPE OF COVER

The MBD policy covers:
unforeseen and sudden physical damage to the insured machinery by

any cause not specifically excluded

whilst in the specified premises,

necessitating its immediate repair or replacement.

The MBD insurance also covers loss or damage due to fire, in insured electrical machineries, originating from within such insured machinery and resultant fire damage to such machinery only,. The Standard Fire & Special Perils Policy specifically excludes this risk.

For loss or damage occasioned by spread of fire, so originated within electrical machinery, to surrounding property, cover is available by Oriental's Standard Fire and Special Perils Policy.

Thereby, the following major electrical and mechanical breakdowns risks, faced by plant and machinery, are covered by this policy:
Short circuiting, excess voltage & electrical arcing

Faulty design, faulty material and faulty casting (manifesting after warranty period)

Abnormal operating conditions

Carelessness and lack of skill in the operation and maintenance of machinery

Entry of foreign bodies

Falling, Impact, Collision etc.

Bursting or disruption of turbines, compressors, cylinders of steam engines, hydraulic cylinders or fly wheels or other apparatus subject to centrifugal force, internal pressure.

Significant Exclusions:
The exclusions under the MBD Policy are grouped into the following two categories:

General Exclusions
Specific exclusions

Significant General Exclusions:
War & civil war or riot, strike and kindred risks
Nuclear risks

Significant Special Exclusions:
The excess as stated in the schedule.

Fire & allied perils, theft. (Insurable under Oriental's Fire and
Oriental's Housebreaking policy respectively)

Loss, damage resulting from overload experiments or tests requiring the imposition of abnormal conditions.

Gradually developing flaws, defects, cracks or partial fractures in any part not necessitating immediate stoppage and repair although at some future time repair or renewal of the parts affected may be necessary.

Wear and tear losses arising out of ordinary usage or working. (The intention of this exclusion is simply to exclude the actual wastage, wear or deterioration but not sudden and unforeseen damage to other parts resulting there from.)

Faults or defects which were in existence when the insurance was arranged and known to the insured.

Damage due to faults or defects for which the manufacturer or the supplier is responsible either by law or under contract.

Loss of use of the insured's plant or property of any other consequential loss incurred by the insured.

(Cover for loss of gross profit consequential upon business interruption arising out of machinery breakdown losses is available under Orientals Loss of Profits Insurance (following Machinery Breakdown).

Loss, damage/and/or liability due to explosions in Chemical Recovery Boilers.

Loss of or damage to belts, ropes, chains, rubber tyres, knives or exchangeable tools and such other parts; unless loss or damage to the equipment's/machinery is indemnifiable in terms of the policy.

Loss or damage for which the manufacturer or supplier or repairer of the property is responsible either by law or contract.

Explosion / implosion risks, other than those specifically covered by the MBD policy, are insurable under the fire policy and boiler explosion policy. (Please see note below).

Extensions Available Under This Policy
The following extensions are covered under MBD Policy on payment of additional premium:

Express freight (air freight excluded), holiday and overtime rates of wages.

Air Freight Only.

Surrounding Property

Third Party Liability

Custom Duty

Escalation