Contractors Plant And Machinery (CPM)

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Contractors Plant and Machinery Insurance(CPM)

Plants and Machinery like, construction equipment. i.e., cranes, fork lift trucks, compressors, bulldozers, drilling machines, etc, are subjected to various risks while in use at any project sites. Contractors plant & machinery (CPM) insurance provides converges to contractors/ principal for the plant and machinery they use at a specific work site against accidental damages due to various reasons

Coverage:

  • It is exclusion-based policy and hence provides an all-risk insurance subject to specific exclusions mentioned in the policy.

  • Broadly it covers loss or damage to Insured plant & machinery or construction equipment because of an accident arising due to external perils like Fire, Accidental Damage, Riot, Burglary etc.

  • Coverage is available during Plant & Machinery / Equipment are at work, being dismantled for overhauling or cleaning purposes, or are at rest.

  • Selection of equipment is allowed

  • ​Both partial and total losses are covered.

Wider covers

  • Owners surrounding policy, cost for clearance and removal of debris , third party liabilities , escalation

  • Additional customs duty, Express freight and Air freight

  • Dismantling and shifting to a new location.

  • Damages due to terrorism.
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Major Exclusions:

  • The excess as stated in the schedule

  • Loss or damage due to electrical or mechanical breakdown/failure

  • Pre-existing faults & damages

  • Loss of or damage to replaceable parts such as bits, drills, knives or other cutting edges, saw blades, dies, moulds etc.

  • Loss or damage due to explosion of any boiler or pressure vessel subject to internal steam or fluid pressure or of any internal combustion engine

  • Loss/damage to insured plant and machinery due to: War and nuclear perils, Willful act/negligence of the insured

  • Contractual liability, manufacturers guarantee

  • Consequential loss or liability of any kind or description

  • Damage due to terrorism risk unless specifically covered by additional premium

  • Damage for which the supplier or manufacturer is responsible​

  • ​Any kind of Transit Risk unless specifically covered.

Sum Insured:

Sum insured should be current day replacement value as new to avoid under insurance at the time of claim.

Basis of claim settlement

If the damage can be repaired, then the cost of repair (cost of material+ labor charges) plus cost of dismantling and re-erection involved and Ordinary freight to and from a repair shop. No depreciation will be deducted from the claim. If sum insured is less than the replacement value, claim will be subject to under insurance. Also salvage will be adjusted in the claim.

If of total loss, insurance company will pay the actual value (market value) of the item immediately before the loss. Adjustment will be made for salvage.