Contractors Plant and Machinery (CPM)
The policy covers loss or damage to all types of contractor’s construction equipment such as bulldozers, cranes, excavators, compressors, etc., due to an accident arising out of external perils. It covers movable equipment which is at work, at rest, is being dismantled for the purpose of cleaning or overhauling or during its subsequent re-erection.
The policy can cover all kinds losses due to accidents except:
- Loss or damage due to any internal electrical or mechanical break down, defective lubrication, lack of oil or coolant although any consequent external damage is payable.
- Loss or damage to replaceable parts or attachments such as bits, drills, knives, dies, moulds etc.
- Loss or damage whilst in transit from one location to another.
- Loss due to wear and tear, corrosion, rust, deterioration, atmospheric conditions.
- Loss or damage during testing operating or whilst being used for a purpose other than designed for.
- Loss or damage to machinery working under ground , unless covered by an endorsement
- Loss or damage for which the supplier or manufacturer is responsible either by law or under contract
The policy can be made more comprehensive by adding any or all of the following extensions:
- Owner’s surrounding policy
- Clearance and removal of debris
- Additional custom duty
- Air freight
- Express freight
- Third Party Cover
- Floater cover
The Sum Insured shall be equal to the cost of replacement of the insured property by new property of the same kind and same capacity, which shall mean its replacement cost, including freight, dues and customs duties, if any, and erection costs.