This policy bears all financial loss which arose from damage caused to machinery due to accidental or electrical / mechanical breakdown and can also be due to human errors or negligence.
How to claim for machinery insurance?
Inform the Insurer and submit documents required for process as suggested by insurance company you choose.
- Submit correctly filled claim form along with below documents.
- Details in case of an accident.
- Serial numbers of damaged or lost machinery in assets register.
- New replacement value(quotation and invoice from supplier).
- Repair estimate from repairer in case the machine is under repair.
- If its comes under warranty , then a copy of proof to justify the same.
- Cold storage like refrigerators then details of products stored.
- Date of installation and erection report including test reports.
- Subsidies and tax credits if received from government.
- Insured machinery for which sum is insured should represent present day purchase value if there is a replacement similar new machine.
- Also incidental expenses like custom duties,taxes,freight,insurance charges, handling charges etc. should be put forward validation and consideration.
What is scope?
- Machinery damage/breakdown against unforeseen, 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, 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
What are the reasons of rejecting claims?
- Corrosion , wearing off of any parts of machinery because of ordinary everyday use/ chemical/ atmospheric influence / rust or other deposits.
- Breakdown due to intentional overloading, or from abnormal test conditions.
- Damage due to fire, lightning, explosion , dismantling and clearing of debris.
- Because of natural hazards like earthquake, cyclone ,seaquake etc.
- Theft/Burglary negligence in maintenance.
- Any defect that was noticed at the time of buying insurance will not be considered.
- Loss/damage for which manufacturer/supplier is responsible either by law/contractual obligation.
- Loss/damage due to nuclear fuel , radioactivity, contaminated nuclear fuel or waste.
What policy don’t cover?
- Exchangeable tools like drills,cutters,crushers,patterns for casting etc.
- Conveyor belts,sieves and hoses , rubber-textiles-plastic linings and bands, brushes and tire, ropes, chains, belts, parts made of glass & Ceramics & porcelain.
- Foundation Blocks, brick lining of furnaces, ovens and containers, firing grids and burner nozzles.
- Fuels, filter fillings, cooling media, cleaning products, lubricants and oil fillings.
- Catalysts, chemicals and contact agents.
What to do if claim is rejected for no-reason?
- Notify this to Insurance company/Third-Party Agent(TPA).
- If there is no response in 15 days then inform about the same to Grievance cell.
- Still no response? Take this to Quasi-Judicial Body or Insurance Ombudsman centre who can help you.
- If all above doesn’t work , then it’s high time to take this matter to court.
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