Tata AIG Contractors Plant and Machinery Insurance

Tata AIG Contractors' Plant and Machinery Insurance provides financial protection to contractors, builders, and construction companies against unforeseen physical damage to their construction equipment and heavy machinery. Whether the machinery is in use, idle, serviced, or relocated within the project site, this insurance ensures that unexpected losses do not disrupt ongoing operations.

₹30 Lakh cover starting at ₹10,000/year/project⁺

Safeguard your most valuable assets from

sudden breakdown

accidental loss/damage

human errors

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Tata AIG Contractors Plant and Machinery Insurance Inclusions

The inclusions under the Contractors Plant and Machinery Insurance are as follows:

The policy covers unforeseen physical damage to the insured property, which can be repaired, replaced, or compensated for at the Company's discretion, based on the policy's terms, exclusions, and conditions.

The policy covers insured items listed in the schedule while they are located at the specified location.

The policy covers the insured items whether they are:

In use

Idle or at rest

Being dismantled for cleaning or maintenance

Being moved within the premises

Being reassembled after being shifted

The policy covers only after the machinery has been successfully commissioned.

The policy covers the Company's liability, which is limited to the sum insured for each item, as specified in the schedule, for the policy period.

The policy covers the reinstatement of the sum insured for any item after a claim for the balance of the policy period.

Tata AIG Plant and Machinery Insurance Exclusion

The exclusions under the Tata AIG CPM Insurance policy are as follows:

Loss or damage caused by electrical or mechanical breakdowns, lack of coolant or lubrication, etc., is not covered. However, if this leads to external damage, that part may be covered.

Items that wear out frequently like drills, blades, belts, tyres, batteries, etc., are not covered.

Damage due to the explosion of boilers or internal combustion engines under pressure is excluded.

Damage to vehicles licensed for general road use is not covered unless they’re used only on construction sites.

Hull or machinery damage of watercraft is excluded unless the machinery is mounted on such crafts and used for construction work.

Damage from full or partial immersion in tidal water is not covered.

Loss or damage during transportation from one site to another is not covered. Public liability is also not covered while the equipment is on public roads.

Gradual damage from regular use, rust, corrosion, or storage conditions is excluded.

Damage during testing or using equipment in a way it wasn't designed for is not covered.

Machinery working underground is excluded—except for machines used in tunnelling.

Any damage due to war, invasion, rebellion, riots, or orders by the government or military is not covered.

Loss or damage caused by nuclear reactions, radiation, or radioactive contamination is excluded.

Note: This list is not exhaustive. For the complete set of exclusions, please refer to the official policy wording.

Tata AIG Contractors Plant and Machinery Insurance - FAQs

1. Which machines are typically insured under Tata AIG CPM policy?

Ans: The Tata AIG CPM Insurance insure construction machinery such as excavators, cranes, bulldozers, loaders, compressors, and other similar equipment.
2. Does the policy cover equipment while being transported?

Ans: No, damages during transit aren't covered under the standard CPM policy. You'll need separate transit insurance for that.
3. What are some major exclusions under this policy?
Ans: Some common exclusions include.
- Damage due to mechanical or electrical failures
- Wear and tear or corrosion
- Loss during testing or overloading
- War, nuclear risks, and acts of terrorism
- Damage from willful negligence
Note: Please refer to the policy document for the full list of exclusions.
4. How should I decide the sum insured?

Ans: It should reflect the current replacement value of your machinery, including costs like freight, duties, and installation.
5. Is third-party liability included?

Ans: No, this policy only covers damage to your own equipment. Liability towards third parties can be covered if opted as an add-on.
6. How do I make a claim?

Ans: Report the incident to Tata AIG as soon as possible. Share the necessary documents, photos, and repair estimates. A surveyor may visit to assess the loss.
7. Is there an option for short-term coverage?

Ans: Yes, you may get short-term plans based on your project duration, subject to Tata AIG's terms.