Final answer:
Mechanical Breakdown Insurance generally covers significant components like the engine, transmission, and sometimes electrical system. However, tire wear and tear is not excluded from coverage under MBI because it is considered regular maintenance and not an unexpected mechanical breakdown.
Step-by-step explanation:
The question relates to what is excluded from coverage under a Mechanical Breakdown Insurance (MBI) policy. Mechanical Breakdown Insurance typically covers the cost to repair or replace major powertrain components of a vehicle, such as the engine and transmission, and sometimes the electrical system, when there is a mechanical failure.
Therefore, from the provided options:
- Transmission failure (Option 1) is typically covered.
- Engine damage due to overheating (Option 2) may be covered if the overheating is due to a covered mechanical breakdown, but it is often excluded if due to driver negligence or lack of maintenance.
- Electrical system malfunction (Option 3) is commonly included in MBI coverage.
- Tire wear and tear (Option 4) is not excluded from a MBI policy; rather, it is not covered because MBI policies typically do not cover parts that wear out from normal use, such as tires, brake pads, and windshield wipers.
Therefore, Option 4, Tire wear and tear, is NOT excluded from coverage because it is never included in the first place. It's considered regular maintenance rather than an unexpected mechanical breakdown that would be covered by MBI.