Machinery Breakdown Insurance

Machinery Breakdown Insurance


There is no substitue for perfection in maintenance to ensure zero breakdown in machine. Still breakdown do occur involving expensive machinery and equipment and grabing substantial financial investment for reasons varied.

Term it as unforseen, Accidental and sudden! Cover it under RSA's 'Machinery Breakdown Insurance Policy'.

RSA, is the company offering service prove to the word ' Insurer'. As a part of its commitment to provide widest possible choice of general insurance products to the Indian Insurance market,Royal Sundaram extend its hand offering Machinery Breakdown Insurance Cover ably supported by most capable technocrats to throw more light about the mechanical side of all machines.

What is our competitive advantage in the segment of our choice
It is the skill and knowledge of our Underwriting and Customer Service.

What is covered

  • Machinery against unforseen, sudden accidental physical loss or damage caused by-
  • Carelessness
  • Short-circuit, disruption, electrical overpressure
  • Failure of operation of safety devices
  • Structural defects, material defects or defects of assembly
  • Fortuitous working accidents such as vibration, maladjustment
  • Loosening of parts, abnormal stresses, fatigue, centrifugal force, excessive speed
  • Defective or accidental lack of lubrication, seizure, water hammer or local overheating
  • Falling, impact, collision or similar occurrences
  • Obstruction or the entry of foreign bodies


Subject to main exceptions

  • Which are commonly insured: Fire & allied perils
  • Which are uninsurable: Wear and tear


When is it covered

  • Machines are covered whilst
  • Working or at rest
  • Being dismantled moved or re-erected for the purpose of cleaning, inspection, repair or installation in another position within the situation.

Machines which can be insured

  • All Stationary equipment can be covered
  • Electrical equipment: Including alternators and generators, motors, rectifiers, switchgear and transformers
  • Mechanical plant: Including engines, turbines (steam, water & gas), blowers, compressors, pumps, machine tools, presses and refrigerators
  • Process machinery in such industries as cold storage, engineering and metallurgical, paper/ pulp making, printing, rubber/ plastics and textiles


Sum Insured

The sum insured has to represent the new replacement value of the machine including Customs Duty, freight and cost of erection & testing

Period of insurance: On annual basis and to be renewed periodically

  • Possible extensions available
  • Third Party Liability
  • Owner's Surrounding Property
  • Additional Customs Duty
  • Express freight
  • Escalation
  • Air freight


Principal Exclusions

  • Loss/ damage arising out of overload experiments or tests requiring imposition of abnormal conditions
  • Gradually developing flaws, Wear and tear
  • Wilful act/ Wilful negligence of Insured
  • Loss or damage for which manufacturer/ supplier is responsible either by law or contract
  • Faults or defects existing at the time of commencement of insurance, which were known to the insured/ responsible representative but not disclosed to the insurer


Salient Features

  • 50% discount on tariff rates is applicable on tariff rates for stand by equipment (except DG Sets).
  • Higher Excess can be opted for to obtain a rebate in premium rate.
  • Claims Experience discount can be availed as per the provisions of the policy.