Racing against time, your plant and machinery are working to full speeds and capacities on your project sites. While your sights are set on task completion before the timelines, there are risks you are aware of working accidents, collision, overturning, fire, theft, burglary and also natural hazards such as earthquake and flood. Safeguard your business from loss on these counts with complete protection for your plant and machinery with Bharti AXA Contractors Plant and Machinery Insurance Policy.

Presenting the Contractors Plant and Machinery Insurance Policy

This is a comprehensive insurance policy for your construction equipment deployed at project sites. The policy is basically meant for unforeseen and accidental physical loss or damage to equipment due to external causes. The equipment could be at work or at rest, and the policy also covers the machinery while it is dismantled, re-erected or shifted within the project premises. Examples of plant and machinery which can be insured under this policy are given below:

• Roadrollers
• Pavers for asphalt or concrete finishing
• Cranes
• Vibrators
• Chain blocks, pulley blocks
• Site power-generating plant
• Mobile mixing plant
• Hauling equipment
• Excavators and loaders
• Bulldozer

What does this policy cover?

The policy provides comprehensive cover against physical loss or damage to the plant and machinery due to any cause other than those specifically excluded in the policy.

What is the sum insured?

The sum insured shall be equal to the cost of replacement of each item of plant and machinery by a new item of the same kind and capacity. This will comprise current replacement cost including freight, customs duty, other charges, if any, and cost of erection.

Basis of compensation

• In case of a loss or damage which can be repaired, all the necessary repair charges along with the cost of dismantling and re-erection incurred and cost of parts replaced, less depreciation, if applicable, shall be reimbursed.
• In case of a total loss, settlement will be based on actual value immediately before loss less salvage plus ordinary freight, subject to the limit of the sum insured.

Coverage under the policy is subject to the condition of average, which means that if at the time of loss or damage the replacement value of the construction plant and machinery covered under the policy is greater than the sum insured declared for that particular construction plant and machinery, then the proposer shall be considered his own insurer for the difference and he or she shall have to bear a rateable proportion of the loss accordingly.

What additional covers does this policy offer?

Cover can be extended on the following by the insured on payment of additional premium.

• Express freight (air freight excluded), holiday and overtime rates of wages
• Air freight
• Owner’s surrounding property
• Third-party liability
• Removal of debris.
• Addl. Customs duty

What are the extensions available under this policy?

The policy can be extended to cover loss or damage to proposer’s surrounding property, third-party liability, clearance and removal of debris, etc., on payment of additional premium.

What does this policy not cover?

The policy does not pay for certain contingencies/damages as below:

• Excess amount specified
• Any contractual liability or manufacturer’s guarantee
• Terrorism, unless specifically covered
• War, warlike operations and nuclear perils
• Damage to exchangeable tools or parts
• Any fault or defect existing at the time of commencement of the policy
• Gross negligence
• Loss or damage discovered only at the time of taking an inventory
• Loss or damage due to explosion of any boiler or pressure vessel, subject to internal steam or fluid pressure, or of any internal combustion engine
• Loss or damage while in transit from one location to another
• Loss or damage due to total or partial immersion in tidal waters
• Public liability while the plant and machinery are on public roads
• Loss or damage due to abandonment of any plant and/or machinery working in underground mines or tunnels
• Damage due to wear and tear, corrosion, rust, etc.