Machinery Breakdown

Insurance or coverage that provides coverage or protection against loss or damage to machinery as a result of the risks covered by the policy. Loss/damage to machines and/or other mechanical equipment at the time of work, rest during the maintenance as a result of wrong planning or lack of expertise of the machine operator (operator) or an error in lubrication causing damage to the machine (Breakdown)


Provide a coverage for the costs needed to repair/return damaged machines (break-down) to the working condition as before the damage occurred, which losses came suddenly, and unintentionally, which caused by:

  • Planning or installation error (Faulty Design)

  • Pressures or vibrations outside normal limits.

  • Operation error/omission

  • Lack of operator knowledge/skills

  • Short circuit, insulation damage.

  • Lubrication deficiency or fault

  • Failure of safety equipment (Failure of safety Equipment).

Object of Insurance

All types of machinery, plants, equipment and mechanical equipment

  1. Deductible (at your own risk) which is the responsibility of the Insured in each event.
  2. Consequential Loss.
  3. Loss/damage to machine parts with short operating life, or easy wear/shrinkage, among others:
  • All types of tools that can be replaced (exchangeable tools) such as filters, molds, ropes, chains,
  • The exposed parts of glass, ceramic, wood and rubber tires.
  • Auxiliary materials such as fuel, gas, catalyst coolant, lubricants
  1. Loss or damage caused/caused by:
  • Fire, lightning strike, chemical explosion, plane crash or other objects.
  • Theft, demolition, robbery
  • Flood, Inundation, Landslide, Earthquake, typhoon, Volcanic eruption etc.
  1. Errors or Defects that are the responsibility of the Supplier, Contractor or Repairer under the Act or the agreement.
  2. Errors or defects that were previously known by the Insured or a person acting on behalf of the Insured, before the insurance was closed and not notified to the Insurer.
  3. Loss/damage that occurs or is caused by Testing, Intentional overloading.
  4. Continuous use of machines that have been damaged or should be repaired/repaired
  5. Deliberate act of the Insured itself, or a person acting on behalf of the Insured.
  • Wear & Tear (wear), abrasion, rust as a result of normal use or operation.
  • As a direct or indirect result of the existence
  • War, enemy invasion, civil war, overthrow of government etc.
  • Nuclear radiation, nuclear reactions.
  • Radioactive contamination.

This insurance policy can be extended with the following risks:

1.Expediting Costs
Provide guarantees for the possibility of other additional costs incurred in connection with any loss/damage to the insured machines as a result of the risks guaranteed in the policy. eg Overtime costs, express transport costs etc.
2.Loss of Profit.
Provide coverage for loss of expected profits as a result of loss/damage to the insured machines as a result of the risks guaranteed by the policy conditions.

Determination of the sum insured in Machinery Breakdown Insurance is based on the New Replacement Value or Reinstatement Value of the insured machine, namely the price consisting of the amount to replace with a new machine with the same specifications, plus transportation costs and duties. enter.

Minimum Data Requirement

  1. Details of Insured
  2. The condition of the machine includes the type, brand, type, year of manufacture, manufacturer and machine capacity.
  3. Warranty from the manufacturer (Manufacturer)
  4. Occupation/Type of Business run by the machine.
  5. Lay-out placement of these machines, this can provide an overview of the inter-allocation of these machines, for example machines that must be used in rooms with A/C, but are placed in rooms without A/C, this can be dangerous.
  6. System Maintenance and Maintenance carried out.
  7. Experience Loss that has been experienced.
  8. Machine Operator Experience.
  9. Moral Hazard of the Insured Candidate
  10. Loss History

Claim Procedure

In the event of loss/damage, the Insured is required to:

  1. Notify the Insurer immediately and in writing that there has been a loss/damage to the insured goods.
  2. Explaining to the Insurer the reasons for the claim, the Insurer is not responsible if the claim is caused by continuous use of a machine that has been damaged or the machine should have been repaired/repaired.
  3. Provide an opportunity for the Insurer to conduct a review/survey of these machines.
  4. Take preventive action or report to the authorities if there has been a loss of the insured machines.
  5. Permit to do the things necessary to sue a third party in the case of a third party resulting in the loss/damage.

Supporting Documents

  1. Original Policy includes Endorsement (if any) to prove the existence of coverage.
  2. Invoice & Receipt for the purchase of the machine.
  3. Claim form which has been provided by the Insurer and filled in completely by the Insured.
  4. Survey Report includes photos of damage.
  5. Other supporting documents required by the Insurer.