Machinery Breakdown Insurance(MBD)

Machinery Breakdown Insurance(MBD)

MACHINERY BREAKDOWN INSURANCE (MBD) Machinery Breakdown policy is an ideal cover for all kinds of plant and machinery, to cover cost of repairs or replacement of damaged parts because of unforeseen and sudden physical damages.

Need for Machinery Breakdown Insurance

Physical damage to any machinery or equipment in a factory can pose a big loss to the business. Factories need to be prepared for such breakdowns to continue working smoothly and overcome the loss. To meet with such eventualities, factories can purchase machinery breakdown insurance.

  • Standard property policies rarely provide adequate cover for electrical or mechanical breakdown of machinery
  • Many customers do not realise they could be left exposed without bespoke machinery breakdown policies

While every business is reliant on machinery and equipment to some extent, for certain businesses and industry sectors, such as manufacturing, the loss of a particular piece of equipment can have almost as much of an impact as the loss of an entire factory or warehouse.

Material Damage and Business Interruption (MDBI) policies typically exclude cover for damage resulting from a mechanical or electrical breakdown, as well as consequential losses, and that only bespoke machinery breakdown policies would provide adequate protection in such circumstances.

Every business is different, but consequential losses could include:

  • Loss of profits, due to extended periods of downtime or limited production
  • Increased costs of working, for example employee overtime, outsourcing work to other companies or temporary equipment replacement.

What’s Covered?

  • The Policy pays for unforeseen and sudden physical damage caused to the machinery mentioned in the policy schedule at the covered location due to any perils other than those which are specifically excluded under the policy.
  • On payment of additional premium, the following additional coverage’s can be opted for
  • Express Freight
  • Air Freight
  • Owner’s Surrounding Property
  • Clearance and removal of debris
  • Additional Custom duty
  • Escalation
  • Third Party Liability

What’s not covered?

The Company will not be liable under the Policy in respect of loss or damage due to

  • Loss of or damage caused due to Fire, Lightning, Explosion, Theft, Subsidence, Landslide, Flood, Inundation, Storm, Tempest, Earthquake and Volcanic Eruption or any other Act of God perils.
  • War, Nuclear Perils
  • Over-load experiment or test requiring the imposition of abnormal conditions
  • Gradually developing flaws, defects, cracks, or partial fractures
  • Deterioration of or wearing away / out of any part of machinery
  • Wilful or gross negligence of insured
  • Faults or defects existing at the time of inception of policy
  • Consequential Loss
  • Excess stated in the Schedule
  • Damage for which the manufacturer or supplier or repairer of the property is responsible either by law or contract.


Civil Engineering is innovation in practice, and it is what builds up and directs a country toward the path of progress. However, such large-scale construction operations are accompanied by a tangible degree of risk in terms of loss or damage to the raw materials and machines, or even delay or harm to the actual structures. Emedlife has the requisite manpower to under and analyse these risks and guide on the best suited protection for your business and thereby helping you secure it all.

Talk to us today for all your Engineering Risk Insurance needs at an affordable price and for reliable claims management.

For registration of claims and to learn more about our claims process please Contact our dedicated claims team for advice on an incident/claim.

D&O Policy protect company director or officer from legal liability arising out of actual or alleged wrongful acts in managing a company.

  1. The policy covers a wide range of litigation that could arise from customers, vendors, shareholders, employees.
  2. In addition to defence cost, it provides cover for :
  3. Investigation Cost
  4. Entity Protection against Employment Practice Liability claims
  5. Outside Entity Directorship cover,etc.


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