Considering the current scenario of infrastructure developments, there is
a substantial growth potential in equipment insurance.
Amit Agarwal, Director, Ideal Insurance Brokers, elaborates more on the trend.
Could you give us an overview on the concept of construction equipment insurance?
Contractor's plant and machinery (CPM) policy can be issued by covering equipment on anywhere in India basis with the following provisions:
Full description with identification number of each and every equipment with valuation should be declaredTransit risks from site to site will be excluded
Loading of 10 per cent on the basic CPM rate shall be charged to cover.
What are the advantages of insuring construction equipment? What are the risks covered and not covered?
There are many advantages of insuring construction equipment. Construction equipment are expensive and a huge amount of capital is invested to purchase them. The equipment are used in risky locations and under intermittent exposure of heat and other natural calamities. These are operated by unskilled labours, therefore the possibility of any accident or mishandling is obvious. At the time of any such incident, the equipment insurance comes to the rescue and the stakeholders need not worry about repair or replacement and they can concentrate on their daily activities. The equipment whose value is in lakhs, can be covered in few thousands of rupees.
What are the risks covered and not covered?
The construction equipment are mainly covered in CPM, marine and machinery breakdown (MBD) insurance policies. CPM is an all risk policy, which covers all perils subject to a few exclusions mentioned below: