Category: Workshop And Engineering Equipment

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by

Trinidad Palazzolo

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Contractor’s Plant & Machinery Insurance- Benefits and Exclusions

by

Royalsundaram

“””Coverage: Plant and equipment often constitute a considerable part of a building contractor’s investment. Contractor’s Plant and Machinery insurance is an exclusive all risks policy covering the plant and machinery used by the contractors at the site for various projects.

Contractors Plant and Machinery Insurance covers the property whether they are at work or at rest, or being dismantled for the purpose of cleaning or overhauling, or in the course of operations or when being shifted within the premises or during subsequent re-erection, but in any case only after successful commissioning.Interest Covered: Illustrations of machineries/equipment that can be covered under Contractors Plant & Machinery insurance are– Earthmoving equipment: Bulldozer, grader, scraper, excavator, loader, dumper, etc- Concrete mixer, concrete pumps- Lifting equipment and drilling equipment Road surfacing equipment:- Batching plant for production of concrete of asphalt- Concrete or bitumen paving machines- Bitumen tank sprayers (iv) rollersDuration: Normally on annual basis and to be renewed periodicallyScope: It is an all risks insurance policy covering loss or damage to the property by any cause other than those excluded– Fire, lightning, explosion, aircraft damage- Riot, strike, malicious act- Flood, inundation, storm, cyclone and allied perils- Landslide, subsidence and rockslide- Burglary and theft- Collision, overturning and falling of foreign object- Any other sudden, unforeseen, accidental damages not explicitly excludedExclusions: Some of the special exclusions under the policy are– Electrical /mechanical breakdown- Vehicles designed and licensed for general road- Hull and machinery of waterborne vessel/crafts- Plant/machinery working underground- Equipments undergoing testing- Replaceable parts- Loss or damage due to explosion of boiler/pressure vessel- Total or partial immersion in tidal waters- Whilst in transit- Consequential LossExtensions: Cover can be extended to includes up to a limit chosen by you on the following on payment of additional premium– Owner’s surrounding property- Clearence and removal of debris- Additional customs duty- Express freight- Air freight- Third party liability- Floater cover- Dismantling- Earthquake- Escalation”””

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Contractor’s Plant & Machinery Insurance- Benefits and Exclusions}