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CONTRACTORS’ PLANT AND MACHINERY INSURANCE (CPM)

ABOUT

Specified machineries & equipment engaged at the Project site by the Contractor for the purpose of execution of a project can be insured under this policy. As the name itself suggests, this policy is taken by a Contractor of a project since he will suffer all financial losses arising out of accidental damage to the items from the time the machineries & equipment arrives at site and till they are removed after execution of the project. The machinery could either be owned or hired.

The Policy is structured in a manner to cover “all risk” of physical loss, damage or destruction to project plant and machinery arising out of any cause other than a few notable exclusions.

CPM Policy can be obtained selectively. Sum Insured for each item selected for insurance shall be equal to the cost of replacement of such item including freight, dues, customs duties and erection costs. Proposal form giving list of machinery and equipment will help hassle free claim settlement.

CONTRACTORS’ PLANT AND MACHINERY INSURANCE (CPM)

BENEFITS

  • The policy will cover the insured property against unforeseen and sudden physical damage by any cause not excluded.
  • This Policy covers the insured items whether they are at work or at rest, or being dismantled for the purpose of cleaning or overhauling, when being shifted within the premises.

Add On Covers

  • Earthquake and Terrorism perils: The CPM Policy, generally, does not cover Earthquake and Terrorism perils. However, they can be covered as add-on perils to the CPM Policy.
  • Third Party Liability: During the execution of the project, there is always a possibility of lawful presence of any third party (other than workmen, family members). Arising out of the engagement of an insured machine/equipment, a third party may suffer death or bodily injury for which Contractor may be legally liable. Cover can be sought against this contingency as add-on under the CPM Policy itself for a specific sum insured.
  • Surrounding property of Insured/Principal: This extension offers cover in respect of loss of or damage to property located on or adjacent to the site and belonging to the Principal(s) or the Contractor(s)..
  • Dismantling, Transport and Re-erection: Any accidental loss/damage occurring during dismantling and re-erection at a new location can be covered as an extension to the CPM Policy.
  • Cover for machines engaged under ground: Such items are generally excluded from the scope of the Policy and have to be covered specifically depending upon the requirement.
  • Floater cover: CPM Policy can be issued covering equipment on “Anywhere in India basis” for machines required to be deployed in more than one location.

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