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

Stationary plant

This category consists of:

  1. Concrete batching plants
  2. Tower cranes, hoists
  3. Compressors, pumps, transformers, workshop machines
  4. Power generating plant
  5. Aggregate plant
  6. Stone crushers, screens
  7. Cement silos, surveying equipment
  8. Conveyor belts, chain blocks


Scope of cover

Perils covered

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.

  1.  Transit from one site to another site.
  2.  Internal mechanical & electrical breakdowns.


Extensions of the policy

The policy can be extended to cover

  1. Third party liability – personal injury and property damage.
  2. 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.


Floater policy

Machines operating at different sites can be covered in single policy at additional loading of 10% in premium chargeable