Page 17 - Engineering Insurance IC 77 Ebook

Sashi Publications
MACHINERY BREAKDOWN Cover The Policy offers cover due to all kinds of
accidental Electrical and Mechanical Breakdown
Machinery breakdown policy is an ideal cover for due to internal and external causes. Cover is
plant and machinery, to cover cost of repairs or granted during the time machine is in operation or
replacement of damaged parts as a result of rest or in process of dismantling and overhaul or
accidental Electrical and Mechanical during subsequent re-erection at the same
Breakdowns. premises.

Internal Causes External Causes
1. Damage due to faulty material 1. Lack of skill of operation by
workers / operators.
2. Defects in casting, faulty construction 2. Carelessness.
3. Overheating of parts 3. Entry of foreign body
4. Short circuits & short circuit resulting in 4. Electrical over-pressure
to fire
5. Faults in erection resulting into damages 5. Failure of other connected Machinery.
during operation.
6. Disruption in case of rotating bodies 6. Falling Bodies.
due to centrifugal force.
7. Failure of operation of safety devices.

RISK NOT COVERED his responsible representative.
1. Loss of damage to belts, ropes, chains. 7. Defect existing at the time of taking out
rubber tyres, dies, moulds, blades, cutters, insurance known to insured but not known to
knives, or exchangeable tools, engraved or the insurers
impression cylinders or rolls, objects made
of glass, porcelain, ceramics, all operating 8. Any type of consequential loss
media (e.g. lubricating oil, fuel, catalyst, SUM INSURED
refrigerator, dowtherm) felts, endless
conveyor belts, or wires, sieves, fabrics, The sum insured of each item of machinery must
heat resisting and anti-corrosive lining and be its present day replacement value of similar
parts of similar nature, packing material, new machine including therein all incidental
parts not made of metal (except insulating expenses like duties, taxes, excise, freight,
material) and non-metallic lining or coating insurance, handling etc. If the sum insured is not
of metal parts. as defined above, then in the event of claim
condition on average is applied for settlement of
2. Damage due to any cause for which the
the claim.
manufacturer, supplier responsible.
3. War and similar risks. PERIOD OF INSURANCE
4. Overloading experiments and tests requiring Machinery Breakdown Policy is usually issued
abnormal condition. for a period of 12 calendar months (premium rate
5. Effects due to continuous use, gradually is usually annual). If anyone desires shorter
developing crack, defects, flow etc. period than 12 months as per motor tariff short
period rate.
6. Wilful act or gross negligence of insured of

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