What is Plant and Machinery cover?
The policy broadly covers loss or damage to the contractor’s construction mobile equipment such as bulldozers, cranes, excavators, compressors, etc., due to an accident arising out of external perils. The cover is operative while the insured property is at work or at rest, or being dismantled for the purpose of cleaning or overhauling, or during subsequent re-erection.
This covers any loss/damage to the contractor's plant and machinery from any cause occurring at work, rest or during maintenance operations and is not for specific construction site. The risks include fire, lighting & allied perils, riot, strike, malicious damage, transit risks, theft, burglary, collision, impact, collapse.
- Strikes – act by a locked-out worker in resistance of the lockout
- Malicious Damage – malicious act during a politically motivated disturbance of public peace
- Insurrection, Revolution/ Rebellion – deliberate, organized & open resistance by force/ arms to the laws of a sovereign government by citizens
- Mutiny – resistance by legally armed / or peacekeeping forces to a superior officer
- Coup d’etat –– sudden, violent and illegal overthrow of a sovereign government or any attempt at such overthrow.
- Excess amount specified
- 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
- 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
- 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.
- Loss or damage due to electrical or mechanical breakdown, failure, breakage or derangement, freezing of coolant or other fluid, defective lubricant or lack of oil or coolant
- Policy does not cover loss or damage due to:
- Electrical or mechanical breakdown
- Pre-existing defects
- Defective lubrication or lack of oil or coolant
- Any sort of damage for which the manufacturer or supplier is responsible
- Any consequential loss
- Loss or damage to vehicles used for general road use, unless working on the specified construction site
The policy does not pay for certain contingencies/damages as below: