Contractors Plant & Machinery Insurance
This policy is designed to protect contractors against the risk of damage or destruction of plant and machinery used in construction, whether in operation or at rest. It covers various risks, including fire, theft, burglary, accidental damage, terrorism, earthquake, flooding, landslides, storms, cyclones, and other unforeseen events. The insurance applies to machinery used in civil engineering projects like construction of buildings, offices, hospitals, tunnels, canals, etc.
Scope
The policy provides coverage for unforeseen physical loss or damage to equipment caused by external events. The coverage applies while the equipment is either in use, at rest, or being moved, dismantled, or re-erected within the project site. The following types of equipment can be insured under this policy:
- Road Rollers
- Concrete mixers and pumps
- Pavers for asphalt and concrete finishing
- Cranes, lifting equipment, and drilling equipment
- Road surfacing equipment
- Vibrators
- Chain and pulley blocks
- Site power generation equipment
- Mobile mixing plants
- Hauling equipment
- Excavators and loaders
- Earthmoving equipment (e.g., bulldozers, graders, scrapers, dumpers)
- Batching plants (for concrete or asphalt production)
- Bitumen tank sprayers
Key Benefits
- Coverage for loss or damage to insured plant and machinery caused by accidents due to external risks like fire, accidental damage, riots, theft, etc.
- Coverage extends while equipment is in use, being dismantled for overhauling or cleaning, or at rest.
- Allows selection of specific equipment to be insured.
- Covers the current replacement value of the insured plant and machinery.
Coverage
This insurance provides comprehensive protection against physical loss or damage to plant and machinery, except for risks specifically excluded in the policy. Coverage includes:
- Fire, lightning, explosion, and aircraft damage
- Riot, strike, malicious acts, or human error
- Water damage, flooding, storm, cyclone, tempest, and similar perils
- Landslides, subsidence, and rockslides
- Theft and burglary
- Collision, collapse, overturning, and falling foreign objects
- Sudden, accidental damages such as defective workmanship, materials, lack of skill, or negligence
Add-on Covers
- Owner’s surrounding property coverage
- Clearance and removal of debris
- Additional customs duty
- Airfreight
- Express freight and holiday/overtime wages
- Dismantling expenses
- Escalation coverage
- Earthquake coverage
- Third-party cover
- Floater cover
- Terrorism coverage
Exclusions
- Electrical or mechanical breakdown
- Risks during transit (requires separate marine cover)
- Vehicles designed for general road use
- Hull and machinery of waterborne vessels
- Freezing of fluids, defective lubrication, or replaceable parts
- Equipment working underground (unless specifically endorsed)
- Immersion in tidal waters
- Equipment undergoing testing
- Pre-existing defects
- Loss or damage from the explosion of boilers or pressure vessels
- Costs for preparing drawings or modifications
- Consequential losses
- Damage to crane wires or slings
- Loss or damage for which the supplier or manufacturer is liable by law or contract
Claims Process
In case of loss, the following steps should be taken immediately:
- Notify the insurer about the occurrence of the loss, submit a written statement detailing the nature and extent of the damage, and provide an estimate of the loss.
- Take all possible actions to reduce and minimize the loss or damage.
- Determine if the loss is covered under the policy.
- Fully cooperate with the insurer and surveyor for an accurate assessment of the damage.
- Provide necessary records and documentation required by the insurer or surveyor to determine the extent of the loss and the policy’s liability.
- Submit necessary documents like the claim form, claim bill, and policy copy.
- Keep the damaged property in a safe place until advised by the surveyor or insurer on its disposal.
- Identify and document the insured equipment involved in the claim.