Machinery Breakdown Insurance
Protects businesses when machines break down from internal or electrical issues
Get ₹50 Lakh Cover
Starting At ₹7,000/Year
Policy Provided By
Machinery Breakdown Insurance
Protects businesses when machines break down from internal or electrical issues
Get Quotes in a Few Steps
Currently Reading
1. What Is Machinery Breakdown Insurance?
2. Why Is Machinery Breakdown Insurance Important?
3. Who Should Purchase Machinery Breakdown Insurance?
4. Features of Machinery Breakdown Insurance
5. Inclusions Under Machinery Breakdown Insurance
6. Exclusions Under Machinery Breakdown Insurance
7. Machinery Breakdown Insurance Claim Process
Machinery Breakdown Insurance or MBD Insurance is a simple way for businesses to protect their machines from unexpected damage. It covers the cost of repair or replacement if your machines break down suddenly due to internal or electrical faults. This insurance is useful for factories, plants, and workshops that depend on heavy equipment to run smoothly. Whether it is a boiler, generator, or production machine, this policy steps in when the machine stops working due to accidental damage.
Machinery Breakdown Insurance does more than just fix machines. It helps you avoid long downtimes, control repair costs, and keep your production on track. It also builds trust with clients by showing that your business is ready for any sudden problem.
Here is an example of how Machinery Breakdown Insurance helped a small auto parts unit in Rajkot:
Incident
One of their main milling machines broke down due to a sudden motor failure.
₹1,80,000 Repair Cost Cover
The policy paid for the replacement of the motor and labour charges.
₹40,000 Urgent Spare Parts
The policy covered the express shipping charges to get spares from Pune.
Because of the Machinery Breakdown Insurance Policy, the unit avoided production delays, kept client deadlines, and saved money on repairs.
Machines are the backbone of most businesses. If one key machine stops working, the whole operation can come to a halt. Repairs can be expensive and delays can lead to missed orders, lost income, and unhappy clients. A Machinery Breakdown Policy is important because it protects you from these sudden costs and helps you get back to work faster.
This insurance is not just for large factories. Even small businesses with basic machines like compressors, lifts, or motors can face losses if something breaks down. With this policy, you do not need to worry about high repair bills or downtime. It gives you peace of mind and helps you focus on running your business.
Financial Protection
Pays for repair or replacement costs after a sudden breakdown.
Cost Control
Reduces the financial burden of urgent repairs.
Operational Continuity
Helps avoid long production delays.
Client Confidence
Shows clients you're a reliable and prepared partner.
For example, if a cold storage unit in Indore faces a sudden compressor failure, the entire stock of food can get damaged. With Machinery Breakdown Insurance, the compressor repair and technician charges would be covered. This helps avoid bigger losses and keeps the business running.
Any business that uses machines should consider a Machinery Breakdown Policy. If your work depends on equipment running smoothly, this policy can save you from sudden repair costs and production losses.
This insurance is useful for:
Manufacturing units
That use heavy machines like moulding, cutting, or milling equipment
Printing presses
With rollers, plate makers, and dryers
Food processing units
With mixers, dryers, and packaging machines
Engineering workshops
With lathes, drills, and CNC machines
Cold storages
With refrigeration units and compressors
Hospitals
With diagnostic machines like MRI and X-ray
Hotels or malls
Using lifts, escalators, and generators
Building contractors
Using cranes, concrete mixers, or hoists
A Machinery Breakdown Policy comes with features that help you deal with sudden machine failures without stress. It is made to cover key costs so that your operations do not stop for long.
Comprehensive Coverage
Covers sudden and accidental breakdown of machines while in use or at rest
Repair/Replacement Costs
Pays for repair or replacement costs, including parts and labour
Multiple Failure Causes
Covers damage caused by short-circuiting, overheating, mechanical failure, or internal explosion
Equipment Flexibility
Valid for both fixed and movable machinery
Partial Damage Coverage
Claims can be made for partial as well as total damage
Inspection Costs
Covers inspection and dismantling costs required to assess the breakdown
Operational Status
Policy applies whether the machine is working, idle, or being cleaned or shifted
Machinery Breakdown Insurance covers many real and direct risks that can affect your machines. It protects you when damage happens suddenly and unexpectedly.
Sudden and unforeseen damage
The policy covers physical damage to machinery that happens without warning. This can be due to electrical faults, mechanical issues, or internal explosions.
Covers machines whether running, idle, dismantled, or being shifted
Your machines are protected whether they are working, resting, being cleaned, taken apart, or reinstalled.
Repairs or payments are based on the Sum Insured
The insurer will pay for losses only up to the amount you have declared as the value of each machine.
Claim settled by repair, payment, or machine replacement
The insurer decides whether to pay you, get the machine repaired, or replace it.
Repair-related expenses like dismantling, re-erection, and basic transport costs
The policy also covers costs needed to take the machine apart, put it back, and pay for normal freight and customs duties.
Machinery Breakdown Insurance covers many risks, but it also has clear exclusions. These are situations where the policy will not pay. Knowing what is not covered helps you avoid surprises at the time of claim.
Damage caused by war or nuclear risks
The policy does not cover any damage resulting from war, invasion, rebellion, military, or nuclear action.
Damage during overload tests or under abnormal pressure
If the machine is damaged during testing beyond its normal capacity or in extreme working conditions, the policy will not respond.
Gradual wear and tear or natural ageing
The policy does not cover slow damage that happens over time, like rusting, corrosion, or parts wearing out with regular use.
Willful act or gross negligence
If the breakdown is due to careless use or intentional damage by you or your staff, the claim will not be accepted.
Damage from defects that existed earlier
If a fault was already known before buying the policy, it will not be covered.
Consequential loss or business interruption
The policy only covers the physical damage to the machine. It does not pay for the loss of income or delays caused by the breakdown.
Damage covered under warranty or by the repairer or manufacturer
If the machine is under warranty or the repairer is responsible for the damage, the insurance will not pay.
1. Notify Us
As soon as the loss or damage happens, contact us within 2 days. Share all relevant details and documents, such as photos or reports. We will make sure the process starts without any delays.
2. Surveyor Visit
Once notified, a surveyor will visit your site within 1-2 days to assess the damage. Please avoid moving any damaged items until the surveyor arrives. After that, we will take care of the next steps.
3. Submit Required Documents
We will guide you through submitting the necessary documents, including the claim form, incident notes, and financial records. Our team will ensure everything is submitted correctly and on time.
4. Claim Assessment & Approval
Once the documents are submitted, the surveyor will evaluate the claim and provide a settlement amount based on your policy terms. After approval, the insurer will finalize the settlement.
5. Payment Processing & Claim Closure
Once the settlement is approved, payment will be processed and issued to you or your beneficiary. After payment, the claim will be closed. If any further issues arise, we will be here to support you until they are fully resolved.
Our efficient claim process ensures minimal disruption to your operations while providing comprehensive support throughout your machinery repair or replacement.
Trusted by India's Top Businesses
A new experience.
Built on intelligence. Covered in minutes.
Every risk, read instantly.
Everything your business is exposed to, analysed before any cover is placed.
Every gaps, caught early.
The gaps your current cover leaves open, surfaced before they turn into a claim.
Right coverage, issued in minutes.
The right cover, priced and placed with India's top insurers, in minutes.
India's builders trust BimaKavach.
