Contractor Plant & Machinery
By its very nature, mobile machinery is prone for accidents. They are exposed to relatively frequent medium to large accidental losses of unpredictable cost.
Contractor’s plant & machinery insurance
It covers physical loss or damage, which the contractor’s plant & machinery could suffer.
Subject matter of insurance
Mobile construction machinery
This category consist of:
i) Earth moving machines, loader, scraper, bulldozers, graders, excavators, trenching machines, dumpers
ii) Mobile cranes
iii) Mobile mixing plant, pavers for asphalt, road rollers
This category consists of:
- Concrete batching plants
- Tower cranes, hoists
- Compressors, pumps, transformers, workshop machines
- Power generating plant
- Aggregate plant
- Stone crushers, screens
- Cement silos, surveying equipment
- Conveyor belts, chain blocks
Scope of cover
a) Fire, explosion, riot & strike, malicious damage.
b) Collision & derailment
c) Over turning & over toppling
d) Operator’s error
e) Crashing into ditches or downhill
f) Natural calamities like storm, cyclone, flood, inundation, land sliding, rock sliding & subsidence & earthquake
g) Theft and burglary
In short CPM policy covers accidental external damage excluding internal breakdown
Exclusions of the policy
Few important exclusions are as under.
- Transit from one site to another site.
- Internal mechanical & electrical breakdowns.
Extensions of the policy
The policy can be extended to cover
- Third party liability – personal injury and property damage.
- Damage to owner’s surrounding property.
Who can insure
The policy can be taken by any one of the following parties, either individually or jointly:-
1 The owner of the machine
2 The contractor / user of the construction machinery
3 The financial institutes who have an interest in the construction machinery
Basis of Sum Insured
The sum insured of each item of machinery should represent the current purchase cost of a similar kind & capacity new machine including all incidental expenses like freight, duty, taxes, cost of erection etc.
Machines operating at different sites can be covered in single policy at additional loading of 10% in premium chargeable.