Engineering Insurance provides economic safeguard to the risks encountered by the ongoing construction projects, installation projects, machines and equipment used in them . The nature of project decides which policy would be suitable.
A company which is into the Business of ropeway installation has taken a Erection policy. The plant and machinery whose value was in few crores and was used only for installation was covered under the project cost and not under plant and machinery.
The ropeway used for installation broke down and the erection work stoped. Surveyor raised the concern that the plant and machinery of such high value cannot be covered under the EAR policy.
Exact details should be shared with the Insurer at the time of taking the policy, so that covers can be suggested accordingly.
Plant and machinery of more than 25 Lacs should be covered under as separate policy.