Contractors - Plant & Machinery Insurance

Contractor's Plant & Machinery Insurance

Policy Details:
Various types of Contractor's Plant and Machineries like excavators, rollers, dumpers, earth moving equipment, cranes, drilling machines etc utilized in the construction or Erection site are always exposed to numerous risks and hazards including natural calamities.

NIC's Contractor's Plant & Machinery Insurance provides financial protection against damage to such items whether they are being used or are at work-site or at rest or during their maintenance operations. It also has an option to cover third-party claims in respect of property damage or bodily injury arising in connection with the execution of various construction projects.

Highlights :

1. All Plant and machinery like excavators, rollers, dumpers, earth moving equipment's, cranes, drilling machines etc. used for erection/construction purpose can be covered under this policy.

2. Both stationary & movable equipment's can be covered.

3. This is an Annual policy (12 months) which is to be renewed periodically but can also be issued for shorter periods.

4. Premium mainly depends on the type of equipment and also the location where it is utilized.

5. Policy can be issued for equipment's working in one location or anywhere the country.

6. Value proposed for insurance shall be equal to the cost of replacement of the insured property by new property of the same kind and same capacity, which shall mean its replacement cost including freight, dues and customs duties if any and erection costs.

7. Equipment's registered with RTO but working exclusively at any project side can also be covered under this policy.

Covered :

NIC's Contractor's Plant & Machinery Insurance Policy covers Contractor's Plant and Machinery against any unforeseen and sudden Physical loss or damage. Major perils covered are as under :

1. Fire, theft, burglary,
2. RSMD (Riot, Strike, Malicious Damage)
3. Terrorism
4. Earthquake,
5. Storm, Tempest, Cyclone, Flood, Inundation
6. Accidental external damage while at work or rest at the site due to faulty handling, impact, collapse, dropping.

Add-on Covers :

1. Third Party personal injury & property damage
2. Insured's own surrounding property damage
3. Clearance and removal of debris
4. Express freight, holiday & overtime charges.
5. Additional Custom Duty
6. Escalation

Exclusions :

1. Damage caused by willful act negligence
2. Electrical/Mechanical breakdown, overloading, internal explosion
3. Damage to exchangeable parts
4. Damage to water borne vessel, vehicles for road use
5. Total/partial immersion in tidal water
6. During transit from one site to another.
7. Inventory losses
8. War, nuclear reaction etc.
9. Loss or damage for which the supplier or manufacturer is responsible either by law or under contract

Claims Procedure :

In the event of any occurrence which might give rise to a claim under this Policy, the Insured shall-

1. immediately notify the Company in writing giving an indication as to the nature and extent of loss or damage
2. take all steps to minimize the extent of the loss or damage
3. preserve the parts affected and make them available for inspection by a representative or Surveyor of the Company
4. furnish all such information and documentary evidence as the Company may require
5. inform the police authorities in case of loss or damage due to theft or burglary