CPMPolicy
In 2026, Contractors’ Plant and Machinery (CPM) Insurance in India is a specialized engineering policy that provides comprehensive “all-risk” coverage for heavy machinery and equipment used at construction sites. Unlike project-specific policies, CPM is typically an annual policy that covers machinery across multiple project locations.
Key Coverage (Inclusions)
The policy protects high-value assets such as cranes, excavators, bulldozers, compressors, and generators against unforeseen and sudden physical damage.
Machinery Protection
The policy protects high-value assets such as cranes, excavators, bulldozers, compressors, and generators against unforeseen and sudden physical damage.
Operational States
Coverage remains active while the machinery is in operation, at rest, or being dismantled/reassembled for cleaning and overhauling.
Major Perils
Includes fire, lightning, accidental external damage, theft, burglary, and natural disasters like floods, earthquakes, and landslides.
Replacement Basis
The Sum Insured is based on the Current Replacement Value (new-for-old), including freight, customs duty, and erection costs.
Common Exclusions
CPM insurance specifically excludes certain types of losses that are better covered by other policies.
Policy Exclusions
CPM insurance specifically excludes certain types of losses that are better covered by other policies.
Internal Failures
Electrical or mechanical breakdown, defective lubrication, or lack of coolant.
Replaceable Parts
Loss or damage to exchangeable tools like bits, drills, knives, dies, and moulds.
Transit Risks
Damage occurring while the machinery is being transported from one site to another (requires a separate Marine Insurance Policy).
Licensed Vehicles
Vehicles designed for general road use are typically excluded unless used exclusively on-site.
Testing Phase
Damage occurring during initial testing or commissioning of the machine.
Important: These exclusions are standard under most Contractors' Plant & Machinery (CPM) Insurance policies. Review your policy wording carefully and consider separate insurance covers where required.
Popular Add-on Covers
Businesses can customize their policies by paying an additional premium for:
Customize Your CPM Policy
Businesses can customize their policies by paying an additional premium for:
Third-Party Liability (TPL)
Covers legal liability for bodily injury or property damage caused to third parties at the site.
Owner’s Surrounding Property
Covers damage to other property belonging to the owner located near the machinery.
Additional Logistics
Coverage for air freight, express freight, and overtime wages required for urgent repairs.
Escalation Clause
Adjusts the sum insured to account for inflation in replacement costs during the policy term.