The 60-second version
Machinery breakdown rider covers sudden electrical/mechanical failure — distinct from fire policy. I insure replacement value, add MB extension to industrial package, and keep maintenance logs.
Fire policy excludes mechanical failure — MBD rider is separate
Returning founders acquiring CNC, compressors, or bottling lines need machinery breakdown cover — standard fire policy excludes internal failure.
Sum insured equals replacement value including freight and installation — under-insurance triggers average clause.
Insurer may require annual maintenance contract proof for claim admissibility.
Shop setup: Shop Act guide.
Industrial cover comparison
| Cover | Trigger | Typical exclusion |
|---|---|---|
| Fire policy | Fire / lightning | Mechanical failure |
| MBD rider | Sudden breakdown | Wear and tear |
| Boiler PPE | Pressure plant | Gradual corrosion |
| EI policy | Electronic equipment | Software bugs |
| Business interruption | Lost profit | Needs MBD trigger |
MBD rider sequence
Asset list
Serial numbers, year, replacement quotes.
Declare SI
Full replacement incl. duty on proposal.
Add MBD
Industrial package endorsement.
AMC proof
Maintenance contract copy to insurer.
Claim protocol
OEM report + downtime log template.
Claim flow
MBD rider kit
- OEM invoice.
- AMC contract.
- Policy schedule.
- Spares inventory list.
- Downtime log template.
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BI add-on
Pair MBD with business interruption for lost production revenue.
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Community signal
What to watch in real discussions
Search community threads for the exact phrase, then treat repeated complaints as risk signals rather than official advice.
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Home workshop machines?
Commercial policy needed — home contents exclude plant.
Imported used machinery?
SI on current replacement value — surveyor may inspect.
NRI owner abroad?
POA holder can file claim with plant manager sign-off.
Spare parts stock?
Separate stock insurance — not inside MBD.
Deductible?
Typically 10% of claim min ₹25k — verify schedule.
Combine with fire?
Same insurer package common — separate sections.
The plan is only as good as the sequence.
Tax, banking, schools, shipping — they all have dependencies. A wrong order costs months and lakhs. Get it right.