Contractor Plant and Machinery


The policy covers all different types of machinery used for handing material or construction. The policy covers sudden, accidental, external damage to the insured machinery due to any cause other than those specifically excluded in the policy. The policy covers machinery whilst it is in operation or at rest or whilst being dismantled for the purpose of cleaning or overhauling or whilst being shifted within the premises or during subsequent re-erection, but in any case only after successful commissioning.


The policy can be taken out by any one of the following parties, either individually or jointly:

  • The owner of the machine
  • The contractor / user of the construction machinery
  • The financial institutes who have an interest in the construction machinery


The main exclusions of the policy are:

  • Loss or damage due to any internal electrical or mechanical break down, 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, mould 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


The policy can be extended to cover:

  • Third party liability – personal injury and property damage
  • Damage to owner’s surrounding property