Things To Know About Industrial Assets Insurance: Used Machinery

 Insurance provides complete protection from any financial loss. To be precise, insurance is a provision by which a state or a company guarantee to pay the compensation for the specified loss against payment of a particular premium.

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Accident or damage is completely unpredictable. If any such unfortunate incident happens, you will not have to pay anything for the loss suffered. The entire liability falls on the insurance company and the company will pay for the loss you suffered. If you run an industry, remember to get all your machinery insured as you do not know when your machine will break down.

Overview

Insurance for used machinery goes like this that if any damage happens to a machine due to mechanical breakdown or accidental electrical issue. When such issue crops up, the insurance company reimburse the cost to the insured either for repairing the machine or for getting the machine replaced. A company or a person or an individual who have financial interest pertinent to the machine is eligible for the insurance policy. Industry machines like pumps, compressor, turbine etc. and electrical machines like a generator, transformer, and electrical motor and so on are covered by mechanical breakdown policy.

Scope

The policy covers the following incidents:

  • If rotating parts get disrupted due to centrifugal force
  • Lubrication failure due to breakdown
  • Faulty material
  • Safety devices malfunctioning
  • Electrical short circuits that include electrical fire which may originate from insulation failure and due to under voltage and over voltage conditions.
  • If a machine stops working suddenly.
  • If foreign bodies enter inside a running machine.
  • Mishandling of the machine because of inadequate experience.

So do not worry and claim your money from the insurance company if ever you encounter any of the above-mentioned situations.

 Process of claim

When it comes to claiming the money from the insurance company, follow the below mentioned steps:

  • Bring it to the notice of the insurance company about the incident by fax, letter or phone.
  • Take the repair estimation from the mechanic.
  • After taking the repair estimation cost from the mechanic, submit the repair estimation cost along with the claim form to the surveyor of the insurance company.
  • Once the surveyor gives you the clearance step ahead for repairing your machine or order for the replacement according to the situation.
  • Submit the original bill of replacement or repair to the with payment proof to the surveyor.

Thus you will not have to spend a single penny at the time of breakdown of the machine as the insurance company will lend you the entire support.