Why Machinery Breakdown Insurance?

Machinery Breakdown Insurance covers unforeseen and sudden physical damage to any mechanical and electrical machinery and/or equipment by any cause necessitating repairs and/or replacement.


What is Covered?

This insurance covers machinery against unforeseen, sudden accidental physical loss or damage including loss or damage caused by:

  • carelessness;
  • short-circuit, disruption, electrical overpressure;
  • failure of operation of safety devices;
  • structural defects, material defects or defects of assembly;
  • fortuitous working accidents such as vibration, maladjustment;
  • loosening of parts, abnormal stresses, fatigue, centrifugal force, excessive speed;
  • defective or accidental lack of lubrication, seizure, water hammer or local overheating;
  • falling, impact, collision or similar occurrences; and
  • obstruction or the entry of foreign bodies.


What Can be Covered on Payment of Additional Premium?

You may extend your policy by paying additional premium. Major optional extensions available are:

  • escalation;
  • express freight;
  • air freight;
  • additional custom duty;
  • third party liability; and
  • owners surrounding property.


What is Not Covered?

Your policy does not provide coverage for losses or damage arising from:

  • war, fire, lightning, inundation, flood, earthquake, subsidence, landslide, chemical explosion,
  • burglary and theft, impact by land borne/water borne craft;
  • wear and tear, faults or defects existing at the time of commencement of insurance which ought to have been or were known to you, faults or defect for which the supplier is responsible either by law or under contract;
  • accident loss/damage and/or liability resulting from overload experiments or tests requiring imposition of abnormal conditions;
  • loss of use of the Insured’s plant or property or any other consequential loss incurred by the Insured;
  • war or warlike operations, nuclear perils; willful acts or gross negligence on the part of you or your representatives;
  • loss, damage and/or liability due to faults or defects existing at the time of commencement of this insurance and known to the Insured or his responsible representatives but not disclosed to the Company; and
  • Policy Excess – This is the first amount of any claim that you have to bear.

Note: The details furnished above are only a summary of product features and do not describe the entire terms, conditions and exclusions of the Policy. For further details or clarifications on the Policy, contact MKI officials or your insurance advisor. We shall be pleased to furnish further details.


Please call our Customer Center at +62 21 7975959, or email us at

Our staff will gladly assist you and provide further explanation about this product.

Alternatively, you may complete the Contact Form and wait for our response