Coverage designed for the special needs of contractors to insure their machinery and other equipment.

Policy is issued to cover Contractors Plant and Machinery like pile driving equipment, excavators, compressors, cranes, mixing plants, stone crusher, bulldozers. Perils covered are unforeseen and sudden physical loss or damage from any cause including fire and lightning, external explosion, burglary, theft, riot and strike, malicious damage and terrorism, earthquake, flood and other act of God perils, accidental damage due to man-handling, dropping or falling, collapse, collision and impact. CPM is covered while it is at work or at rest, while being dismantled for cleaning or overhauling or reassembling thereafter. The machinery is covered while the same is lying at Contractors own premises or at the various sites or locations. Transit risk from one site to another is not covered under this policy. In respect of Machinery/equipment, whether registered with RTO or not, but engaged at the Project site, the Insured, has an option either to select the Motor/Non-Motor Policy under Motor Tariff or CPM Policy in the Engineering Department. Supplementary Covers: TP Liability and TP property damage, Expenses incurred for overtime, express freight, air freight, over time, holiday rates of wages, etc, Cost incurred in the Clearance and removal of debris following an accident, Loss or damage to existing surrounding property, additional custom duty.

Purpose to protect the interest of Contractors, Principals and/or Financiers. The policy is ideally suited for civil engineering projects like multistoried buildings/bridges/flyovers/dams/roads/canals/silos/tunnels etc. The value of the civil works should be more than 50%. The Policy cover all risks that is to say that almost any sudden and unforeseen loss or damage including accidents losses like collapse, impact, fire, lightening, explosion, act of God perils, Human perils like theft, burglary, bad workmanship, lack of skill, negligence, malicious acts, human error, terrorism, third part liability etc. The policy can be extended to cover perils of removal of debris, maintenance cover, extended maintenance, additional expenses for overtime/express freight/air freight, additional custom duty and increased replacement value. The sum insured is estimated completely erected value of the contract works inclusive of wages, materials, cost of construction, freight, custom duty, taxes and items supplied by principal. The sum insured is adjustable on completion of construction on the basis of actual values in respect of construction cost, freight and custom duties. However, increase or decrease in prime cost of material is not taken into account. Supplementary Covers: Construction Machinery, Clearance and Removal of Debris, Damage to existing property of the insured at the site, Additional expenses incurred for overtime, work on public holidays, express freight, air freight, legal liability, Escalation to take care of inflationary trends, Temporary works or structures at project site, Additional expenses for air freight, additional custom duty for replacement over and above the custom duty taken into account., Maintenance Cover.

Contracts that are uniform at least in part as to content or both content and language. Insurance contracts are standardized to a large extent by Law or voluntarily.

The liability assumed under contract. This insurance protects the insured in the event a loss occurs for which he has assumed liability, express or implied, under a written contract. For example, under most construction agreements with a municipality, the contractor agrees to “hold the municipality harmless” for any accidents arising out of the job. Contractual Liability Insurance would thus protect the contractor from any loss for which the municipality would be liable in connection with the construction.