Machinery Breakdown Insurance (MBI)
This form of insurance provides coverage for machinery installed at one place. The coverage is against any unforeseen and sudden physical loss or damage giving rise to its repair or replacement due to causes such as defects in casting in material, faulty design, faults at workshop or in erection, bad workmanship, lack of skill, negligence or carelessness and explosion are the major causes that can be attributed and covered by machinery breakdown insurance.
Machinery, equipment and operative plant used in manufacturing units and industries are exposed to high risks of sudden and unforeseen mechanical or electrical breakdown resulting in loss or damage. However these losses may be repairable or replaceable.
The proposed machinery for insurance should be insured for the replacement cost. The declared cost to include freight, duty, cost of fixing or erection & commissioning. While insuring machinery, it is adequate to declare cost, type, make, model and year of manufacture and claims history.
