Contractors Plant & Machinery Insurance Policy

CPM insurance is an All Risk policy which provides financial Protection against the sudden and unforeseen physical loss or damage to plant and machinery on “Anywhere in India basis”. This covers the plant and machinery of a contractor at specified work sites for all possible risks except for the risks/profiles which are specifically excluded.

For taking this policy, description, Identification number etc., of each machinery is to be declared at the time of Insurance.

Scope of Cover

It covers unforeseen and sudden physical loss of or damage to the insured items, necessitating their repair or replacement. The cover applies at work, at rest or during maintenance operations and is not limited to a specific construction site.

Key Features

This is done on an annual basis

Transit of Contractor’s Plant, Machinery and Equipment at a project site is covered

Transit (any mode) from one location to location is to be covered in Marine Department

The Insured, has an option to insure machinery/equipment under motor tariff, whether registered with RTO or not. Alternatively they can be insured under non motor policy/CPM policy but need to be engaged at the project site.
Insurance is offered on current replacement value.

Sum Insured

The Sum Insured shall be equal to the cost of replacement of the insured property by new property of the same kind and same capacity, which shall include freight, customs duties if any and erection costs.

Add on covers available:

Clearance and removal of debris

Additional customs duty

Express freight

Air freight

Dismantling and shifting to a new location

Escalation of cost


Third Party Liability: 10% SI subject to a maximum of INR 10 Crores

IMT 23 (under Motor policy) - This covers bumper, headlights, fender, bonnet parts, painting and tyres & tubes.

Plant and Machinery are classifed into four groups

Group I

Chain Blocks and Pulley Blocks ,Compressor,

Air tools,Conveyor belts, site hoists, jacks, screws

Cranes upto 10 tonnes capacity (except Turner and Derrick cranes)

Concrete pumping plant, Cement silos, water containers,

Surveying Equipment,Electrical/Electronic Equipment used for Non-destructive testing

Fork Lift Trucks (upto 10 Tonnes Capacity),Mixing Machines

Group II

Locomotives, field and steam generating engines,track-shifting machines.

Mobile mixing plant,Mechanical sweepers

Site power-generating plant (gasoline or diesel engines)

Stone crushers, screens, separating plant,Tractors/Trailers

Seismic Data Collection Equipment.

Group III

Bulldozers, Cranes above 10 tonnes capacity,

Turner cranes and Derrick Cranes, Diving equipment

Excavators (Caterpillar shovels, drag-shovels, power shovels, self-propelled excavators, truck-shovels, bucket excavators, Bucket trenches),Loaders, Pile driving and pile extracting

Group IV

Drilling Machine for Water Supply &Tunnel Boring Machines


Loss or damage due to electrical or mechanical breakdown/failure. If an accident happens due to Electrical or Mechanical breakdown or derangement causing external damage then such consequential damage is payable.
Loss of or damage to replaceable parts such as bits, drills, knives or other cutting edges, saw blades, dies, moulds etc.

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.

War and nuclear perils

Willful act/negligence of the insured

Contractual liability, manufacturers guarantee

Consequential loss or liability of any kind or description, Inventory loss.

Damage to vehicles designed and licensed for general road use ,unless used exclusively on construction sites, Transit loss, Wear and tear, Testing, Plant and/or machinery working underground, Earthquake, Terrorism, Nuclear perils, Pre-existing faults, Willful negligence

Damage for which the supplier or manufacturer is responsible either by law or under contract Abandonment of any plant/or machinery working underground, Pay loaders on barges cannot be covered under CPM

Compulsory Excess:

Differential excess is applied for different Sum insured for Claims arising out of AOG Perils & non AOG Perils.
The Excess as stated in the Schedule.
Highest single deductible concept applies