Machinery Breakdown (MB) Insurance
Protects critical operating machinery and industrial plant setups against sudden, unforeseen internal mechanical or electrical breakdowns.
Understanding the Advisory Scope
Purpose & Scope
Covers physical damage to operational industrial machines caused by internal forces such as electrical surges, short circuits, mechanical jams, or operator errors.
Why It Is Needed
Operational machinery is heavily exposed to internal fatigue, motor burnouts, and physical jams. Standard fire and property policies strictly exclude internal mechanical or electrical breakdown.
Who Should Purchase
- Factory & Plant Owners
- Industrial Manufacturing Companies
- Cold Storage & Mill Operators
- Facility Management Teams
Suitable Applications & Sectors
What the Policy Protects
Electrical Burnout
Covers coils, motor windings, and panels damaged by electrical short circuits.
Mechanical Jams
Covers breakage of gears, pistons, or rotors due to physical jamming or structural fatigue.
Centrifugal Force
Protects spinning machinery from rupture, self-shattering, or flying parts.
Lack of Lubrication
Covers bearings and gears seizing up due to accidental lubricant blockages.
Foreign Bodies
Protects turbines and crushers from damage due to entry of bolts, metal chips, or tools.
Operator Error
Covers internal damage from accidental speed overruns, handling errors, or misalignment.
Optional Extensions Available
Third Party Liability (TPL) Extension
Covers legal liabilities for third-party bodily injuries or property damage arising out of construction activities.
Removal of Debris
Reimburses the cost of clearing site debris following an accidental damage or collapse to resume work quickly.
Express Freight
Covers additional costs of rapid express transit for replacement parts to minimize project delays.
Air Freight Extension
Reimburses the premium cost of air-shipping crucial parts or replacement machinery from international suppliers.
Additional Customs Duty
Covers unexpected customs import duties levied on replacement machinery parts brought into India.
Major Policy Exclusions
External Disasters
Losses from fire, lightning, flood, or wind (must be claimed under Fire/Property policy).
Gradual Wear & Tear
Rusting, scale buildup, corrosion, cavitation, or general performance decay.
Consumable Parts
Belts, chains, drill bits, dies, filters, and lubricants which need regular replacement.
Pre-existing Defects
Damage arising from faults present before policy inception.
Structured Claims Settlement Pipeline
Required Documents
- Signed MB Claim Form
- Detailed report from service engineer diagnosing breakdown cause
- Historical maintenance and service logbooks
- Repair invoice/bills and spare parts receipt copy
BP & AF Claims Advantage
Take comprehensive date-stamped photographs immediately after any site incident. Secure internal telemetry/datalogger logs before components are dismantled. Our specialist advocates handle direct negotiation with the insurers to ensure minimal deductibles and zero processing delay.
Claim Settlement Steps
Log Failure
Note error logs, take photos of broken components, and notify BP & AF.
Surveyor Audit
Engineering surveyor checks structural breakdown details on-site.
Repair Estimate
Authorized workshop submits repair estimate quotes.
Disbursement
Insurer compensates repair expenses minus policy deductibles.
Frequently Asked Questions
Request a Placement Proposal
Provide your business parameters below. An Engineering Risk Advisor will structure custom placement slips across top underwriters.
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