Engineering Insurance

Engineering insurance refers to the insurance that provides economic safeguard to the risks faced by the ongoing construction project, installation project, and machines & equipment in project operation. This also provides specialized insurance for various machines & equipment operating in a production unit.

Our specialized Engineering team is as always ready to help you find the right kind of insurance.

Top Features

Tailor Made

Wide options to meet your needs.


Reasonable premium across all products.


Risk Solutions


Dedicated team to assess risk.

Our Insurance Products

Erection All Risks (EAR)

This is concerned with erection of electrical/ mechanical plant, machinery, equipment and structures involving no or very little civil engineering work. The manufacturer or supplier is solely responsible for the loss or damage while they are installing, testing and commissioning until handing over to the owner. Erection all risks cover provides comprehensive insurance as the machinery is exposed to many perils. It gives adequate protection for all risks involved in the erection of machinery, plant and steel structures of any kind including third party claims in respect of property damage or bodily injury arising out of or in connection to the execution of an erection project.

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The loss will be made good by repair or replacement whereas the third party section covers legal liability of the insured to pay compensation for accidental damage to property of third parties and or fatal injury or non-fatal injuries to any third person subject to the limits of liability specified in the schedule. Indemnity also applies to legal costs recovered by a claimant and costs incurred by the insured with the consent of insures subject to an excess for third party damage claims.

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Contractor’s Plant and Machinery (CPM)

This policy is for the plants and Machinery used for enabling construction activities. Racing against time, your plant and machinery are working to full speeds and capacities on your project sites. While your sights are set on task completion before the timelines, there are risks like work accidents, collision, overturning, fire, theft, burglary and also natural hazards such as earthquake and flood.

This is a comprehensive insurance policy for your construction equipment deployed at project sites. The policy is basically meant for unforeseen and accidental physical loss or damage to equipment due to external causes on all risks basis but excluding internal breakdowns. The equipment could be at work or at rest, and the policy also covers the machinery while it is dismantled, re-erected or shifted within the project premises but after successful commissioning only. Examples of plant and machinery which can be insured under this policy are given below:

The sum insured should always be equal to the costs of replacement of the insured machinery by new machinery of the same kind at the same place (value of the new item plus customs duties plus transportation etc.).

  • Concrete mixtures
  • Concrete Pumps
  • Road rollers
  • Pavers for asphalt or concrete finishing
  • Cranes
  • Vibrators
  • Chain blocks, pulley blocks
  • Site power-generating plant
  • Mobile mixing plant
  • Hauling equipment
  • Excavators and loaders
  • Bulldozer

Electronic Equipment Insurance (EEI)

All the equipment (computer system and its peripheral as well as auxiliary equipment) are susceptible to damage or breakdown. The insurance herein therefore takes care of loss or damage to such properties. The policy covers sudden and unforeseen physical loss or damage necessitating repair or replacement. It includes but not limited to electrical and mechanical damage, impact damage, negligence, burglary, fire and special perils.

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Increased Cost of Working Cover:

If, in the event of a breakdown, the required computing capacity is hired, then the increased cost of working insurance applies. It covers such expenses as hire charges, transport charges for data media and personnel, expenses for accommodation away from base, night work or work on public holidays etc.

The items covered include but not limited to:


  • Electronics Data processing (EDP) Equipment.
  • Electronic equipment for medical use.
  • Telecommunication and navigational equipment.
  • Computer system for production plant & machinery.
  • Signal and transmitting units.
  • Equipment for research and material testing.

Machinery Breakdown (MBD)

The standard machinery breakdown policy covers sudden and unforeseen physical loss or damage to the insured’s machines while at work or at rest or during cleaning, inspection, overhauling or removal to another position in the premises necessitating repair or replacement. This policy covers electrical equipment, alternators and generators, mechanical plants including engines, turbines, pumps etc. The insured reviews regularly the sum insured to represent the new replacement value which includes installation costs and customs dues, freight charges, cost of repair and expenses for employment of a specialist etc.

Coverage of the policy:

  • Electrical causes such as short circuit
  • Faulty design, material, erection or construction faults at the workshop.
  • Short circuit, failure of insulation and other electrical causes.
  • Faulty operation, lack of skill, negligence or malicious acts.
  • Tearing apart due to centrifugal forces.
  • Failure of connected machinery or protective devices.
  • Falling impact or collision.
  • Obstruction or entry of foreign objects.

Machinery Loss of Profits (MLOP)

This insurance looks at the actual loss of Gross Profits due to business interruption occasioned by an event covered under machinery breakdown insurance (Sudden and unforeseen damage including breakdown to plant and machinery). When a key item of the machinery breaks down, the insured is faced with expensive costs of repairs. The interruption of the business makes the insured incur huge losses. This insurance seeks to make good the loss suffered by the insured.

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This insurance covers:

  • Loss of Profits.
  • Continuing business expenses (the standing and fixed costs).
  • Increased cost of working (i.e. additional expenditure necessarily and reasonably incurred for avoiding reduction in Turnover).

Deterioration of Stock (DOS)

This insurance is issued against deterioration of goods in cold storage due to breakdown of refrigerating machinery. This insurance compliments machinery breakdown insurance and may only be taken out in connection with the latter.

It may be extended to cover deterioration due to failure of public power supply as long as the position regarding public and backup supplies is found to be satisfactory.

This policy covers:

  • Rise or fall in cooling temperatures.
  • Unforeseen and sudden escape of refrigerant into the cold storage rooms.
  • Under-controlled storage or incorrect composition of atmosphere resulting in any form of material damage to the refrigeration plant indemnifiable under machinery breakdown.

Boiler and Pressure Vessel (BPV)

This insurance also referred to as Boiler Explosion Insurance.

Liability caused by the explosion or collapse of any boiler or pressure vessel whilst in the course of ordinary working.

This covers boiler & pressure vessels explosion or collapse in the course of ordinary working and seeks to indemnify the insured against:

  • Damage (other than fire) to the insured’s boiler and or other pressure plant.
  • Legal liability to third parties of the insured on account of bodily injury, fatal and or non-fatal to the person.
  • Damage to the property of third parties.

Comprehensive Machinery (CMI)

Comprehensive machinery insurance offers wide and comprehensive protection against property damage and loss of profits for an entire plant and machinery in operation including other property like buildings, stock, goods in process, etc. This new policy is designed to grant cover for entire plants where engineering risks are prevailing, in contrast to industrial all risks covers where the fire exposure and extended perils are of more importance.

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We offer a wide range of tailored products to provide you and your family with comprehensive solutions.