Contractor’s Plant & Machinery Insurance Policy
Constructions sites heavily rely on machinery used for day-to-day operations. This includes jobs like hauling and moving material, excavating earth and debris, round-the-clock generation of power etc. The Contractor’s Plant and Machinery Insurance Policy is a hassle-free protecting solution that covers your machinery, minimising repair costs.
The Contractor’s Plant and Machinery Insurance Policy is specially designed to protect the interest of Civil Contractors.
Features of the Contractor’s Plant and Machinery Insurance Policy
- The policy broadly covers loss or damage to the contractor’s construction module equipment such as bulldozers, cranes, excavators, compressors, etc., due to an Accident arising out of external perils.
- The cover is also applicable when the insured machinery is or is not being used and when it is being dismantled for the purpose of cleaning or overhauling, or during the process of re-erection
- Unlike the All Risk Insurance Policy, the Contractor’s Plant and Machinery Policy will insure the policy holder as per the actual cost of each piece of machinery.
- This policy will cover other expenses like labour charges, freight, customs duty, re-erection or dismantling costs.
- This policy takes into consideration the value of the items before the occurrence of damage/loss.
- If under insured, claim will be paid only on proportionate basis
Additional Cover Options
- Owners surrounding policy
- Clearance and removal of debris
- Additional customs duty
- Express freight
- Air freight
- Dismantling and shifting to a new location
- Escalation of cost
- Third Party Liability
- For any one accident
- For all accidents during the period
Exceptions to the Contractor’s Plant and Machinery Insurance Policy
- The Excess as stated in the Schedule
- The Contractor’s Plant and Machinery Insurance Policy will not cover losses or damage caused due to electrical or mechanical failure.
- Replaceable parts like drill bits, saw blades, dies, moulds etc are not covered under this policy.
- Damage or loss caused due to explosion of a pressure vessel like a boiler are not covered under this policy.
- Vehicles deployed by a contracting company are not covered by this policy unless the vehicles in question are exclusively meant for the construction site.
- Location of the construction site plays a huge role in determining coverage – any sort of loss or damage due to partial or total immersion in tidal waters is not covered by the CPMP.
- Wear and tear, corrosion, rust or deterioration of a machine due to weather conditions or simply from lack of usage are not covered under this insurance policy.
- Loss of or damage to plant and/or machinery working underground. (This does not apply to machineries used in tunneling works).
- Other occurrences/events not covered by the Contractor’s Plant and Machine Insurance Policy are -
- War and nuclear perils
- Willful act/negligence of the insured
- Contractual liability, manufacturers guarantee
- Consequential loss or liability of any kind or description
Sum Insured and Premium
Unlike the Contractor’s All Risk Insurance Policy, the sum insured on the Contractor’s Plant and Machinery Insurance Policy is calculated differently. It does not take into consideration the total value of the project, rather it determines the sum insured on the value of each piece of machinery. It takes into consideration the cost of replacing a damaged piece of machinery with a new piece. Ideally, the sum insured should also include other costs like freight costs, cost of erection, customs duty etc.
The premium will vary from policy to policy as it factors in types of equipment, location of construction, estimated risk and use of equipment.