Machinery Breakdown
MACHINERY BREAKDOWN POLICY FACT SHEET
Policy Overview
This policy provides indemnity against sudden and unforeseen physical loss or damage to insured machinery and equipment arising from mechanical, electrical, or accidental breakdown while the machinery is at work, at rest, being dismantled for cleaning/inspection, or during re-erection after maintenance within the insured premises.
Policy Description
Policy Overview
The policy generally covers loss or damage due to:
- Mechanical failure
- Electrical short circuit or burnout
- Faulty operation
- Failure of safety devices
- Centrifugal force
- Lubrication defects
- Lack of skill, negligence, or mal-operation
- Physical explosion/implosion
- Loosening of parts, Overheating, Vibration or misalignment
- Third-party liability
- Surrounding property damage
- Expediting expenses
(overtime, express freight, air freight) - Escalation clause
- Debris removal expenses
The machinery should be insured for its current replacement value, including:
- Cost of replacement machinery
- Freight charges
- Customs duties
- Erection and installation costs
Underinsurance may result in claim settlement being reduced proportionately.
This policy does not cover:
- Fire and allied perils
- Theft or burglary
- Normal wear and tear or gradual deterioration
- Rust, erosion, or scaling
- Consumable parts
- Wilful negligence or intentional damage
- Loss discovered during inventory checks only
- Consequential loss
- War, nuclear risks, and radioactive contamination
Claims Procedure
- Notify insurer immediately upon occurrence of incident
- Take reasonable steps to minimise further loss.
- Do not dismantle or repair damaged machinery without insurer’s approval, except for safetyreasons.
- Allow inspection by insurer/surveyor
- Submit claim form, repair estimates, invoices, photographs, and other supporting documents
Policy Period
- Typically, 12 months
- Renewable annually
Insured's Duties
- Maintain machinery in sound working condition.
- Follow manufacturer’s maintenance recommendations.
- Allow inspection by the insurer if required.
- Take reasonable precautions to prevent accidents and losses.
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5th Floor, Bank of Baroda Building,
Sir William Newton Street, Port Louis
Republic of Mauritius
Tel: +230 208 1442
Email: niassurance@niamauritius.com
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