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Property Insurance

Machine Breakdown

Machinery breakdown covers sudden and unforeseen damage to plant while it is working, at rest, or being dismantled for cleaning - faulty material or workmanship, failure of lubrication or of safety devices, short circuit, over-voltage and operator error.

It fills the gap a property policy leaves, which pays for fire and external perils but not for a machine that destroys itself. Replacement parts for most industrial plant in the Kingdom are imported, so cover is usually extended to express and air freight and to additional customs duty.

Risk Coverage

  • Faulty material/labor work of the machine.
  • Action of centrifugal forces that disrupt rotating parts.
  • Failure of lubrication due to malfunctioning of lubricating oil pumps or their breakdown.
  • Malfunctioning or failure of safety devices.
  • Electrical short-circuiting including electrical fire originating from failure of insulation, as well as over-voltage or under-voltage conditions.
  • The abrupt and sudden stop of other connected machinery.
  • Entry of foreign bodies into a running machine.
  • Inexperienced operations that lead to damage due to an error of judgment or operation.

Extensions

  • Damage to machinery's foundation
  • Damage to oil in electrical apparatus
  • Express freight (excluding air freight), holiday rates, overtime charges.
  • Air freight
  • Additional custom duty i.e the additional percentage of duty payable at the time of reimport for replacement over and above the percentage of duty included in the original sum insured.
  • Damage to the insured individual's own existing property or property in his custody or control due to any damage to the insured machines covered under the policy.
  • Third party liability i.e. liability falling on the insured for bodily injury to any other party other than those covered by the policy or for property damage belonging to such other party.

Pre-requirements

  • Broker of Record
  • Commercial Registration
  • Wassel /National Address
  • VAT Certificate
  • 3 years claims experience
  • A declaration letter if first time insurance
  • List of Machines
  • Proposal Form

Forms to download

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