Contractor Plant and machinery include the following Risk
- Fire, Lightning and explosion
- Theft and malicious damage
- Impact, collision and overturning
- Impact damage resulting from breakdown and road risk
- It covers unforeseen and sudden physical loss of or damage to the insured items, necessitating their repair or replacement.
- The cover, which excludes internal breakdown, applies at work, at rest or during maintenance operations
- This policy also provides cover for inland transport with additional premium.
- The owner of the machine
- The contractor / user of the construction machinery
- The financial institutes who have an interest in the construction machinery
The sum insured of each item of machinery should represent the current purchase cost of a similar new machine including all incidental expenses like freight, duty, taxes, cost of erection etc.
The policy can be extended to cover
- Third party liability - personal injury and property damage.
- Damage to owner's surrounding property.
- Loss or damage due to any internal electrical or mechanical breakdown, 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.
- Loss or damage for which the supplier or manufacturer is responsible either by law or under contract.
Deductible is applied either as a percentage of the cost of reinstatement or as an agreed monetary excess.
- Proposal form dully filled, signed and stamped
- Item wised breakup of construction machinery