IRDAI License Number: IRDAI/INT/ISNP/2022/250

Contractor Plant & Machinery Policy

Basic Project Information

Some Other Information
Introduction
Who can take this Policy?
Coverage
Add on Covers
Basis of Sum lnsured
Exclusions
Introduction

The contractors can cover construction equipment such as bulldozers, cranes, excavators, drilling machine, road rollers, levellers etc. under the policy.

Who can take this Policy?

CPM Policy should be purchased by civil contractors and owners of Machinery against the damage to Machines and Third Party Liability Claim arising out of use of Machines.

This policy is mainly suitable for Contractors for covering their Machines against any peril leading to losses.

Coverage

  • Fire, Lightning, Riot, Strike, Malicious damage
  • Damage due to accident due to faulty handling, collapse, collision, impact, fall, tilting, overturning etc.
  • Water damage, Flood, Storm, Tempest, Inundation
  • Burglary, Theft
  • Flood, Cyclone, landslide, Subsidence, Rockslide etc.
  • Earthquake, Terrorism (as extension)

Add on Covers

Below extensions can be taken under the policy by paying additional premium :

  • Air Freight
  • Express Freight
  • Owner’s surrounding property
  • Clearance and removal of debris
  • Customs Duty
  • Dismantling
  • Third Party Liability

Floater Cover :

The policy is location specific, for covering machines on different sites, location wise list of machines should be declared. A machine can be covered at more than one project site by charging premium loading of 10%.

Basis of Sum lnsured

Sum Insured under the policy represents current replacement value of machine of same make, specification and capacity. This includes transportation charge till site, custom duty and assembling charges if any.

Exclusions

The policy does not cover :

  • Loss or damage caused bywillful act of negligence on part of the insured or his authorized representative
  • Loss or damage due to electrical or mechanical breakdown
  • Loss or damage due to overloading, undue straining of machine
  • Loss or damage to tools such as belts, ropes, chains, blades, conveyor belts etc
  • Defective lubrication or depletion of coolant
  • Loss or damage due to total or partial immersion in tide water
  • Loss or damage whilst working underground
  • Loss or damage to vehicles licensed for general road use, unless working on specified construction site
  • Any kind of Consequential loss

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Professional and Experienced Team
Professional and Experienced Team
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Customized Solutions
Strong Relationship With Insurance Companies
Strong Relationship With Insurance Companies
Service Commitment Ontime Everytime
Service Commitment Ontime Everytime
Technological Edge
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Additional Services Offered
Additional Services Offered
Competitive Premium
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Single Window Solution
Single Window Solution

Important Points to remember while Buying the Policy

Adequate Sum Insured - To Avoid Underinsurance

Inform the insurance company before any change in location

  • It is a location specific policy therefore it is advisable to inform the insurance company before any change in location.
  • Add on cover of floater policy can be obtained if your CPM moves frequently from one location to another.
Ensure that assets should be covered under the right entity/company

Each machine's identification/serial number should be mentioned in the Policy/Annexure

  • Policy having Each machine's identification/serial number avoids any ambiguity and brings more clarity about the covered machines.
Risk Location/s should be properly mentioned

It is advisable to take OSP with TPL limit

  • Add on covers for OSP (Owner's  Surrounding Property) with TPL (Third Party Liability) can be obtained by charging nominal premium.
Downloads
Proposal Form
Proposal Form  
Policy Wordings
Policy Wordings  
Claim Form
Claim Form  
Key Documents
General Claim Intimation Format
General Claim
Intimation Format
Immediate Action Client Should Take
Immediate Action Client
Should Take
Indicative General Documents
                            for Settlement of Claims
Indicative General Documents
for Settlement of Claims

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Claim Case Study - 1

1
Situation
Situation

A client suppling construction equipment at various location, due to which there is Frequent change of machines Location. The crane against which the loss had occurred was covered under a different location whereas the loss location was different.

2
Challenge
Challenge

CPM being a location specific policy requires endorsement to be done for change in location which becomes a tedious work for frequent change. The Insurance company rejected the claim on the ground that the risk location was different.

3
Solution
Solution

The loss location was approx. 60Km away from risk location as mentioned in the policy. The Insurer was convinced that the Earthquake zone is same, more over the loss location is of the same client with same kind of project.

4
Advisory/Conclusion
Advisory/Conclusion

It was negotiated with the Insurer that for frequent change in location, client will give a monthly declaration of change in location.

Claim Case Study - 2

1
Situation
Situation

A digging machine has travelled 3 Km. away from the site and overturned while operation.

2
Challenge
Challenge

CPM Policy being a location specific policy, the loss was denied by the Insurance company.

3
Solution
Solution

The case was presented to the Insurance Company that the machine had travelled 3 Km for work related to the same project and not for any other project.

4
Advisory/Conclusion
Advisory/Conclusion

CPM Policy is a location specific policy i.e. for a loss to be payable under the Insurance Policy, the loss to the machine should occur at a location under which it is cover. If the machine moves at different location then FLOATER CLAUSE should be opted, however under the FLOATER CLAUSE transit risk to the machine is not covered.

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