Machinery Breakdown insurance Policy

Machines and equipment are an integral part of your factory. Any damage to these can adversely affect your business. The machinery breakdown insurance policy provides cover against any unforeseen physical loss or damage to mechanical and electrical machinery as well as equipment that are held in trust of and/or are commissioned at the insured’s premises.

Additional Covers

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Air freight
machinery breakdown insurance
Express freight

(excluding air freight) overtime & holiday wages

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Insured's own
surrounding property
machinery insurance breakdown policy
Third party
machinery breakdown insurance in India
insurance for plant &
Additional custom duty

Loss or damage due to:

  • The Machinery Breakdown Insurance covers damages to the insured's plant and machinery arising from mechanical and electrical breakdowns as well as accidental external means
  • The cover is applicable when the machinery is in operation or at rest or in the process of getting dismantled, overhauled or during subsequent re-erection at the same premises

Loss or damage due to:

  • Fire, lightning, inundation, flood, earthquake, subsidence, landslide, chemical explosion, burglary and theft, impact by land-borne/water-borne craft
  • Wear and tear, faults or defects existing at the time of commencement of insurance which ought to have been or were known to you, faults or defects for which the supplier is responsible either by law or under contract
  • War or war-like operations, nuclear reaction, radiation or radioactive contamination
  • Wilful acts or gross negligence on your or your representative’s part
  • Accidental loss or damage and/or liability resulting from overload experiments or tests requiring imposition of abnormal conditions
  • Loss of or damage to belts, ropes, chains, rubber tyres, dyes, moulds, blades, cutters, knives or exchangeable tools, engrave or impression cylinders or rolls; objects made of glass, porcelain, ceramics, all operating media etc
  • Gradually developing flaws, defects, cracks or partial fractures in any part not necessitating immediate stoppage


Our product comes with the following extensions

  • Depending on the type of machine, availability of stand-by equipment and claim experience.
  • A special rating scheme for equipment worth Rs 50 lakh and above is based on age, maintenance, in-built safety systems, claim experience and so on.
  • Type of machine
  • Deductible

The Sum Insured shall be equal to the cost of replacing the insured’s machinery by new machinery of the same kind and of the same capacity.