Contractor Plant And Machinery
What Is the Overview of Contractor Plant And Machinery ?
Contractor’s Plant & Machinery Insurance is designed to cover loss or damage to heavy machinery and equipment used in construction or industrial operations. This policy ensures protection for owned or hired machinery against a wide range of risks during usage, transit, or storage at project sites.
What kind of machinery is covered under the contractor's plant and machinery policy?
covers:
Any contractor’s plant & machinery equipment like excavators, rollers, dumpers, and earth moving equipment, cranes, drilling machines etc. which are utilized in the construction or Erection site can be covered under this policy.
Scope
- The policy covers sudden, accidental, external damage to the insured machinery due to any cause other than those specifically excluded in the policy.
- The policy covers the machinery whilst they are in operation or at rest or whilst being dismantled for the purpose of cleaning or overhauling or whilst being shifted within the premises or during subsequent re-erection, but in any case only after successful commissioning.
What is the CPM policy?
CPM Policy Overview
A Contractors’ Plant and Machinery (CPM) policy is a type of insurance that covers physical damage to a contractor’s machinery and equipment, regardless of whether they are in operation or at rest. It specifically covers unforeseen and sudden physical damage caused by any peril not specifically excluded in the policy. This can include damage from accidents, theft, or other unforeseen events that occur during construction or related activities.
Add on Covers
- The policy can be extended to cover:
- Third party liability – personal injury and property damage.
- Damage to owner’s surrounding property.
The main exclusions of the policy are:
- Loss or damage due to any internal electrical or mechanical breakdown, defective lubrication, lack of oil or coolant although any consequent external damage is payable.
- Loss or damage to replaceable parts or attachments such as bits, drills, knives, dies, moulds etc.
- Loss or damage whilst in transit from one location to another.
- Loss due to wear and tear, corrosion, rust, deterioration, atmospheric conditions.
- Loss or damage during testing operation or whilst being used for a purpose other than designed for.
- Loss or damage to machinery working underground.
How to claim?
In the event of any loss or damage giving rise to a claim under the policy, the following steps should be taken:
- Take necessary steps to minimise the loss.
- Inform insurance company immediately.
- Extend full cooperation to the surveyor deputed by the company.
- Submit duly filled in claim form along with necessary documents to substantiate the financial loss suffered as a result of the accident.
