Machinery Breakdown Insurance (MB)

Machinery Breakdown (MB) insurance offers protection against sudden and unforeseen physical loss or damage to machinery which has been erected and is operational or at rest. It is accident insurance for machines, for internal breakdown or derangement. Machines have a limited life span as they are exposed to wear and tear: therefore, machinery owners must depreciate their machines annually and establish reserves for replacement.


Following an insured event, the policy pays for all repair costs, provided the cost of repair does not exceed the actual value of the machinery at the time of the loss. In the case of a total loss (i.e. whenever the repair costs exceed the actual value of the machinery), the actual value is indemnified.

Main Hazards

The main causes of damage covered under MB policies include: fortuitous working accidents; a machine's tearing apart due to centrifugal force; short circuits; defects or faults in design, material or manufacturing and incorrect operation.

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Copyright © 2010 Mirabilis the Leading Engineering Underwriter. Mirabilis is an authorised financial services provider FSP 28190.

BEE Rating

The RMB Structured Insurance Group is majority owned by RMB Holdings. The Group's BEE shareholder is New Seasons Financial Services (Proprietary) Limited. New Seasons Financial Services (Proprietary) Limited holds a direct 15% investment in RMB-SI Investments (Proprietary) Limited.