Contractor’s Plant and Machinery Insurance Policy
Contractor’s Plant and Machinery Insurance Policy
The Corporation agrees with the insured that if at any time during the period of insurance stated in the schedule or during any subsequent period for which the insured pays the premium for the renewal of this policy, the items entered in the schedule, whilst at the location or in the geographical area mentioned therein suffer any unforeseen and sudden physical loss or damage from any cause not specifically excluded necessitating repair or replacement.
The Corporation will indemnify the insured in respect of such loss or damage by payment in cash, replacement or repair of each item specified in the schedule.
This policy shall apply whether the insured items are at work or at rest or being dismantled for the purpose of cleaning or overhauling or in the course of operation.
Exclusions
The Corporation shall not be liable for:
- The deductible stated in the schedule to be borne by the Insured in any one occurrence; if more than one item is lost or damaged in one occurrence, the Insured shall not, however, be called upon to bear more than the highest single deductible applicable to such items;
- Loss or damage due to electrical or mechanical breakdown, failure, breakage or derangement, freezing or coolant or other fluid, defective lubrication or lack of oil or coolant, but if as a consequence of such breakdown or derangement an accident occurs causing external damage, such consequential damage shall be indefinable;
- Loss of or damage to replaceable parts and attachment’s such as bits, drills, knives or other cutting edges, saw blades, batteries, tires, flexible vessel;
- Loss or damage due to explosion of any boiler or pressure vessel;
- Loss of or damage to vehicles designed and licensed for general road use unless these vehicles are exclusively used on construction sites;
- Loss of or damage to waterborne vessels or craft;
- Loss or damage due to total or partial immersion in tidal waters;
- Loss of damage whilst in transit unless otherwise agreed by endorsement;
- Loss or damage as a direct consequence of the continual influence of operation (e.g. Wear and tear, corrosion, rust, etc…);
- Loss or damage occurring whilst any insured item is being used in any manner or for any purpose other than that for which it was designed;
- Loss or damage to plant and/or machinery working underground unless otherwise agreed by endorsement;
- Loss or damage to plant directly and/or indirectly caused by, or arising out of, or aggravated by war, invasion, act of foreign enemy, (whether war be declared or not), rebellion, revolution, civil commotion, usurped power, a group of malicious persons or persons acting on behalf of or in connection with any political organization, confiscation, destruction or damage by order of any government or by any public authority;
- Loss or damage directly or indirectly caused by, or arising out of, or aggravated by nuclear reaction, nuclear radiation or radioactive contamination;
- Loss or damage due to any faults or defects existing at the time of commencement of this policy within the knowledge of the insured or his representatives, whether such faults or defects were known to the insures or not;
- Loss or damage directly or indirectly caused by, or arising out of, or aggravated by the willful act or willful negligence of the insured or his representatives;
- Loss or damage for which the supplier or manufacturer is responsible either by law or under contract;
- Consequential loss or liability of any kind or description;
- Loss or damage discovered only at the time of taking an inventory or during routine servicing.
Conditions
- The due observance and fulfillment of the terms of this policy in so far as they relate to anything to be done or complied with by the insured and the truth of the statements and answers in the questionnaire and proposal form made by the insured shall be a condition precedent to any liability of the Corporation.
- The Schedule shall be deemed to be incorporated in and form part of this policy and the expression “this policy”, wherever used in this contract, shall be read as including the schedule.
- The insured shall at his own expense
take all reasonable precautions and comply with all reasonable recommendations of the Corporation to prevent loss or damage and comply with statutory requirements and manufacturer’s recommendations.
- a) Representative of the Corporation shall at any reasonable time have the right to inspect and examine the risk and the insured shall provide the representative of the Corporation with all details and information necessary for the assessment of the risk.
- b) The insured shall immediately notify the Corporation by telegram and in writing of any material charge in the risk and cause at his own expense such additional precautions to be taken as circumstances may require. No material alteration shall be made or admitted by the insured whereby the risk is increased, unless the continuance of the insurance is confirmed in writing by the Corporation.
- In the event of any occurrence which might give rise to a claim under this policy, the insured shall
- Immediately notify the Corporation by telephone or telegram as well as in writing, giving an indication as to the nature and extent of the loss or damage;
- Take all reasonable steps within his power to minimize the extent of the loss or damage;
- Preserve the parts affected and make them available for inspection by a representative or surveyor of the Corporation;
- Furnish all such information and documentary evidence as the Corporation may require;
- Inform the police authorities in the case of loss or damage due to theft or burglary, the Corporation shall on no account be liable for loss or damage of which no notice has been received by the corporation within 14 days of its occurrence.
- The insured shall at the expense of the Corporation do and concur in doing and permit to be done all such acts and things as may be necessary or required by the Corporation in the interest of any right or remedies or of obtaining relief or indemnity from parties to which the Corporation is or would become entitled.
- If any difference arises as to the amount to be paid under this policy (liablity being otherwise admitted), such difference shall be referred to the decision of an arbitrator.
- a) If the proposal form or declaration of the insured is untrue in any material respect, or if any claims made is fraudulent or substantially exaggerated, or if any false declaration or statement is made in support thereof, then this policy shall be void and the corporation shall not be liable to make any payment.
- b) In the event of the Corporation disclaiming liability in respect of any claim and if an action or suit is not commenced within three months after such disclaimer or (in the case of arbitration) within three months after the arbitrators have made their award, all benefit under this policy in respect of such claim shall be forfeited.
- This policy may be terminated at the request of the insured at any time, in which case the Corporation will retain short-period rate for the time this policy has been in force. This policy may equally be terminated at the option of the Corporation in which case the Corporation will be liable to repay on demand a rateable proportion of the premium for the unexpired term from the date of cancellation less any reasonable inspection charges the Corporation may have incurred.
- If at the time any claim arises under this policy there is any other insurance covering the same loss or damage, the Corporation shall not be liable to pay or contribute more than its rateable proportion of any claim for such loss or damage.
Note: This article is prepared to elaborate about the Contractor’s Plant and Machinery Insurance Policy. Therefore, legally it shall not come into force.