Machinery Breakdown Insurance
This policy is developed to grant industry effective insurance cover for plant, machinery and mechanical equipment at work, at rest or during maintenance operations and it is an annual policy.
All types of machinery, plant, mechanical equipment and apparatus may be covered under machinery insurance.
Items having a short service life compared with the entire plant are normally excluded from machinery insurance, these are mainly:
- All types of interchangeable tools
- Belts, chains, ropes, sieves, engraved cylinders, stamps, dies
- Parts made of glass, ceramic or wood, rubber tires
- Operating media of any kind such as fuel, gas, refrigerants, catalysts, liquids, lubricants (oil in transformers and circuit breakers is, however, included since it is not only a coolant but also serves as an insulation agent)
The policy covers any unforeseen and sudden physical loss or damage from any cause such as defects in casting and material, faulty design, faults at workshop or in erection, bad workmanship, lack of skill, carelessness, shortage of water in boilers, physical explosion, tearing apart on account of centrifugal force, short- circuit, storm, or from any other cause not specifically excluded in a manner necessitating repair or replacement.