Machinery Breakdown

For some high technology or heavy machinery of high value, the potential loss can amount to millions of ringgit. This insurance protects against physical loss, major heavy machinery breakdown or damages that are costly to repair.


All plants and machineries are susceptible to breakdowns or extraneous damages regardless of the care taken during operation or the standard of maintenance. Breakdown or extraneous damage can result from defective material or design of machinery, bad workmanship, carelessness, short circuit or other fortuitous causes. These damages are costly to repair and in exceptional cases, a major breakdown may result in a total loss. For some high technology or heavy machinery of high value, the potential loss can amount to millions of ringgit.


This form of cover protects against unforeseen and sudden physical loss or damage to machineries from cause such as defects in casting and materials, faulty design, faults at workshop or in erection, bad workmanship, lack of skill, carelessness, shortage of water in boiler, physical explosion, tearing apart on account of centrifugal force, short circuit or from any other cause not specifically excluded from the policy. The cover is operative whilst the machineries are working, or at rest, or being dismantled for cleaning or overhauling. Machineries will only be insured after successful completion of their performance acceptance test.


Machineries Commonly Insured under Machinery Insurance


This form of cover is suitable for machinery that have moving parts or which stores or transmits large amount of energy. The following are examples of such working machineries:


  • Boilers, heat exchangers, condensers
  • Pumps and compressors
  • AC and DC motors
  • Diesel and petrol engines
  • Steam and gas turbines
  • Alternators, motor generators
  • Switchgears, transformers, capacitors
  • Overhead cranes, lifts, escalators
  • Process equipment such as paper mill, plastic extruder, cement mill, screw press, agitated tank, etc
  • Damage due to fire and extraneous perils. These perils are more appropriately covered under Fire policy.
  • Damage to exchangeable tools, machinery parts which suffer a high rate of wear and tear or damage as a direct consequence of the continual influence of operation. These losses are in the nature of trade risks and maintenance cost, associated with the proper operation and care of machineries and should be borne by the Insured.
  • Loss or damage for which a supplier, contractor or repairer is responsible either by law or under contract.
  • Consequential loss or liability of any kind
  • War and kindred risks
  • Others 

Download the following forms and documents to find out more about this policy: