What is the Full Form of MBD in Insurance?
The Full Form of MBD in Insurance is Machinery Breakdown Insurance. The Machinery Breakdown insurance is an appropriate protection for all types of plant and machinery, covering the cost of repairs or replacement of damaged parts caused by unforeseen and sudden physical damage.
Significance of machinery breakdown insurance:
Physical damage to factory machinery or equipment might result in significant company losses. To keep operations running smoothly and recover from losses, factories must be prepared for such disruptions. To prepare for such possibilities, factories can obtain machinery breakdown insurance. They are important, as the standard insurance policies for the property do not offer adequate cover for mechanical and electrical breakdown of machinery.
What is covered under machinery breakdown insurance:
The machinery breakdown insurance will cover the sudden and unforeseen physical damages that are caused to the machinery at the covered location, owing to other perils that are included in the policy. Upon payment of the insurance premiums, the additional coverage can opt for air freight, express freight, additional customs duty, clearance and the removal of debris, third-party liabilities, etc. The insurance policy, however, doesn’t cover loss or damages owing to fire, explosion, theft, lighting, storm, earthquake, etc.