Plant and Machinery Insurance

If you're a building contractor or a tradesman, you probably spend a lot of time working on the client's site, either with your own machinery, or a plant that you've hired. Damage or loss of expensive machinery could be a catastrophe for a small construction contracting business because these machines represent such a large investment.

Plant and machinery insurance can cover this cost and protect you against the loss of business machinery that you've hired. It protects the interest of civil contractors against the damage to or destruction of various civil engineering projects, such as office, dwellings, tunnels, hospitals, and channels.

Key Features of Plant and Machinery Insurance

  • It is designed for covering loss or damage to various plants and machinery used on project sites.
  • There is an option to cover only selected machinery under the policy.

What does it cover?

  • The plan broadly covers loss or damage to the contractor's construction mobile equipment, such as cranes, compressors, bulldozers and excavators 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.

Add on Covers

On payment of additional premium, you can opt for the following covers:

  • Express freight
  • Air freight
  • Owner's surrounding property
  • Clearance and removal of debris
  • Additional custom duty
  • Escalation
  • Earthquake
  • Third party liability
  • Equipment mounted on floating vessel/craft
  • Terrorism

Who can take the insurance?

Any one of the following parties can take the insurance, either individually or jointly:

  • Owner of the plant and machines
  • Banks and financial institutions investing in the project
  • Contractor or the user of the construction machinery

Sum insured

The sum insured will be equal to the cost of replacement of each item by a new item of the same kind and capacity, which means current new replacement cost will include ordinary freight, customs duty, other charges, if any, and cost of erection.


The premium depends on the type of equipment, use of equipment, location, and risk you are entailing.


The company will not be liable under the policy if loss or damage is caused due to

  • Electrical or mechanical breakdown, failure, breakage or derangement
  • Damages due to explosion of any boiler or pressure vessel
  • Replaceable parts and attachment such as bits, knives, drills, saw blades, moulds or other cutting edges, parts which by their use suffer a higher rate of wear or depreciation.
  • Vehicles designed and licensed for general road use
  • Damage due to total or partial immersion in tidal waves
  • Public liability while the plant and machinery are on public roads
  • Wear and tear, corrosion, rust, deterioration due to lack of use
  • Machinery working underground other than tunnel boring machines
  • Water-borne vessels or crafts
  • War or war-like operations and nuclear perils
  • When undergoing a test of any kind
  • Pre-existing fault or defect
  • Willful act or gross negligence of the Insured or his representatives
  • Consequential loss of any kind
  • Damage for which the manufacturer/supplier is responsible
  • Damage due to terrorism

How to make a claim?

In the event of any loss or damage, follow the below-mentioned steps:

  • Inform insurance company immediately
  • Extend full cooperation to the surveyor deputed by the company
  • Submit duly filled claim form, along with necessary documents, to substantiate the financial loss suffered because of the accident
No record found.

What our clients say

Our partners
  • aegonlife
  • apollo
  • Aviva
  • Bajaj
  • baxa
  • cigna
  • edelweisstokio
  • exidelife
  • hdfcstandard
  • indiafirst
  • idbi
  • iffco
  • indiafirst
  • Kotak
  • liberty
  • lic
  • metlife
  • Max-Bupa
  • maxlife
  • Reliance
  • religare
  • royal
  • sahara
  • sbilife
  • star-health
  • Future Generali
  • oriental
  • universal Sompo
  • national
  • relianceGeneral
  • Kotak
  • United
  • digit
CIN: U74900HR2014PTC053454 Policybazaar Insurance Web Aggregator Private Limited, Registered Office no. - Plot No.119, Sector - 44, Gurgaon, Haryana - 122001
IRDAI Web aggregator License No. 06 License Code No. IRDAI/WBA21/15 Valid till 13/07/2018 Insurance is the subject matter of solicitation. Visitors are hereby informed that their information submitted on the website may be shared with insurers. Product information is authentic and solely based on the information received from the Insurer © Copyright 2008-2018 All Rights Reserved.