Contractors Plant & Machinery policy covers loss of or damage to the insured's plant & machinery like bulldozers, cranes, compressors, vibratory rollers, earthmovers, excavators etc. The coverage operates irrespective of whether the machinery is working / at rest/ dismantled for cleaning purposes
WHO SHOULD BUY
Contractors who work at construction sites or undertake road, sewage or other such construction related projects and own plant and machinery to cover their financial losses if their plant and machineries get damaged due to accidental causes at project sites.
KEY FEATURES OF THE POLICY
The Policy covers any accidental & sudden physical damage to the plant and machinery covered by any causes not specifically excluded under the policy. The policy covers the plant and machinery while they are at work, at rest, or are being dismantled for the purpose of cleaning or overhauling, when being shifted within the premises or during subsequent re-erection.
Although the policy is restricted to a particular location, if required by the insured the policy can be issued on a floater basis covering various project locations as well.
The policy covers partial losses – where the policy provides replacement costs of the damaged parts plus repair costs & cost of dismantling & re-erection. Depreciation is applicable on parts with limited life, and if the machinery is undervalued while taking insurance the claim amount gets deducted proportionately.
In case of total loss i.e where the machinery is beyond repairs, the policy pays for actual market value of such a machinery immediately before the loss. Salvage is deducted and depreciation applies if the machinery is underinsured.
KEY EXCLUSIONS
• Electrical or mechanical breakdown
• Damage to plant and machinery working underground
• Loss or damage to replaceable parts & attachment such as bits, drills, knives, or other cutting edges, saw blades dies, moulds, patterns, pulverizing or crushing surfaces, screens or sieves, ropes, belts, chains, elevator and conveyor bands, batteries, tyres, connecting wires & cables, flexible pipes, joining & packing material regularly replaced
• Loss or damage while an insured item is undergoing any testing
• Loss or damage as a result of wear & tear, corrosion, rust, deterioration due to lack of us & normal atmospheric conditions
• Loss or damage whilst in transit, from one place to another
• Loss or damage due to total or partial immersion in tidal waters
• Loss or damage to vehicles designed and licensed for general road use
