What can be insured?
This policy is mainly designed for construction projects where machineries like the bulldozers, fork lift trucks, compressors, drilling machines, pile driving devices etc. need comprehensive protection because the damage to the equipment can affect the daily work in the construction business resulting in huge financial burden incurred by the contractor for repairing and replacement.
What is covered?
The insured machinery and plant policy covers against unforeseen and sudden physical damage resulting by any cause that are not specifically excluded whether the machines are at rest or at work or overhauling or dismantled for cleaning as applied to the insured items.
Payment of Policy:
Partial loss: the policy will pay for labour charges, customs duty and charges for re-erection and dismantling along with the actual cost of the machinery. Depreciation is applied to those machineries having limited shell life.
Total loss: before the occurrence of the loss the actual value of the items. Payment will be made on proportionate basis if insured.
This policy also provides extensions on air freight, escalation earthquake, removable and clearance of debris, additional custom duty, shifting and dismantling to a new location, third party liability.
Policy does not pay when there is a mechanical/electrical breakdown, damage to small hardware like saw-blades, damage to boiler/pressure vessels due to internal combustion, wear and tear due to daily usage, except tunnelling work machines damaged during an underground work, war perils, wilful negligence of the insured will not be compensated.