This is a policy which covers financial loss incurred by the insured due to loss or damage to machinery as a result of accidental electrical and mechanical breakdown. It reimburses the insured for the cost of repairs or replacement of machinery of like nature.

The cover Provides protection to the insured machinery whilst at work or at rest and also when they are being dismantled for the purpose of cleaning, inspection and overhauling or removal to another position or in the course of their operations or subsequent re‚Äźerection, provided these are performed in the same premises.


The policy covers all kinds of electrical and mechanical breakdown resulting from the following incidents:

  • Faulty material/workmanship of the machine
  • Action of centrifugal forces contributing to disruption of the rotating parts
  • Failure of lubrication due to malfunctioning of lubricating oil pumps or its breakdown.
  • Malfunctioning or failure of safety devices.
  • Electrical short-circuiting including electrical fire originating from failure of insulation and or over voltage or under voltage conditions.
  • Abrupt and sudden stoppage of other connected machinery.
  • Entry of foreign bodies into running machine.
  • Inexperienced operations causing damage due to error of judgment or error in operation.


  • War & civil war or riot, strike and kindred risks
  • Nuclear risks
  • Fire & allied perils, theft.
  • Loss, damage resulting from overload experiments or tests requiring the imposition of abnormal conditions.
  • Gradually developing flaws, defects, cracks or partial fractures in any part not necessitating immediate stoppage and repair although at some future time repair or renewal of the parts affected may be necessary.
  • Wear and tear losses arising out of ordinary usage or working.
  • Faults or defects which were in existence when the insurance was arranged and known to the insured.
  • Damage due to faults or defects for which the manufacturer or the supplier is responsible either by law or under contract.
  • Loss of use of the insured’s plant or property of any other consequential loss incurred by the insured.
  • Loss, damage/and/or liability due to explosions in Chemical Recovery Boilers.
  • Loss of or damage to belts, ropes, chains, rubber tyres, knives or exchangeable tools and such other parts; unless loss or damage to the equipments/machinery is indemnifiable in terms of the policy.

Loss or damage for which the manufacturer or supplier or repairer of the property is responsible either by law or contract.

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