COMPARISON – Motor

Miscellaneous Motor
Class D & CPM Policy
 Cover can be granted to –
Misc D
• Misc & Special types of vehicles (as per
Tariff Annexure - 58 #s) – Registered /
Unregistered (depending on State MV
Rules).
 Cover can be granted to - CPM
• Alternative (partial) to the Misc Class D Motor
Policy - Terms Same as Commercial Vehicle
Policy.
• All types of Construction Plant
and Machinery (Group I - V).
•Several common items are there
but list of items in both Policies not
identical.
 Perils covered – Misc D
Specific Peril Policy viz.
• by Fire Explosion Self Ignition or Lightning;

• by Burglary Housebreaking or Theft;

• by Riot and Strike;

• by Earthquake (Fire and Shock

damage);
• by Flood Typhoon Hurricane Storm Tempest Inundation Cyclone
Hailstorm Frost;

Contd … …
• by Accidental External Means;

• by Malicious Act;
• by Terrorist Activity;

• whilst In Transit by Road Rail Inland Waterway

Lift
Elevator or Air;
• by Landslide Rockslide.
 Perils covered - CPM
An All Risk Policy
• Indemnify against Unforeseen & Sudden Physical Damage
by any cause not hereinafter excluded.
• Subsidence included.
• Explosion cover is limited.
• At work or rest – being dismantled for cleaning or
overhauling or in course of aforesaid operations themselves
or being shifted within premises but after successful
commissioning.
 Extensions Available – Misc D

• Hiring Risk including driving by Hirers driver

• Passengers for hire & reward.
• NFPP – erstwhile TAC application.

• Overturning.
 Extensions Available - CPM
• Earthquake
• Escalation in Sum Insured
• Owner surrounding property
• Third party liability
• Express freight
• Air freight
• Additional Custom Duty
 Breakdown – Misc D

• Breakdowns - Electrical & Mechanical are exceptions.

• Even sequence of breakdowns unless accidental

external means operates.
 Breakdown - CPM
• Erstwhile Tariff prohibits Breakdown extension (was
available until Sept 87).
• If as consequence of breakdown or derangement
accident occurs causing external damage –
consequent damage indemnifiable.

• Some Insurers providing MBD Extension to Premium

Customers (Special Contingency Policy).
 Explosion due to Boiler or
Pressure Vessel including IC
Engine – Misc D

• Covered (Explosion Covered, no intention to cover

Breakdowns)
 Explosion due to Boiler or
Pressure Vessel including IC
Engine – Misc D

• Not Covered
 Hire & Reward Use – Misc D

• Allowed (except few items Agricultural Forestry

Vehicle, Cinema Film Recording & Publicity, Fire
brigade, Savage Corps vehicle, Mobile Shop &
Canteen etc.)
 Hire & Reward Use – CPM

• Allowed
AOG – EQ, STFI, Riot Strike
– Misc D

• Possible to delete with discount.

 AOG – EQ, STFI, Riot Strike
– CPM
• EQ Extra

• Others can not be deleted / no discount.

• AOG defined as (for Excess) EQ, Landslide,
Rockslide, Subsidence, STFI Group.
 Earthquake – Misc D

• Built-in

• Discount possible.
 Earthquake – CPM

• Optional

• Zone III, IV free

• Zone I & II Chargeable.

 Use within Insured’s Own Premises /
Confined to site discount – Unregistered
GCV – No General Public right of access
– IMT 13 / 14 – Misc D

• Discounts given
 Use within Insured’s Own
Premises / Confined to site discount
– Unregistered GCV – No General
Public right of access – IMT 13 / 14
– CPM

• No Discounts, coverage already for operations

confined to site – Locational Risk.
 Over turning of certain equipments –
IMT 47 – Misc D
50 % premium loading in case of
• Mobiles Cranes
• Mechanical Navies, Shovels, Grabs, Rippers &
Excavators
• Dragline Excavators
• Mobile drilling rigs
• Mobile Plants (?)
Over turning of certain equipments
– IMT 47 – CPM

• Over turning built-in

 Tyre, Mudguard, Lamps, Bumper,
Colour – IMT 21 / 23 – Misc D

• 50 / 25 % covered if IMT 23 applicable

(Accidental loss only)
Tyre, Mudguard, Lamps, Bumper, Colour – IMT 21 / 23
– CPM
• Not covered - Replaceable parts & attachments - Bits,
Drills, Knives or other cutting edges, saw blades dies,
Moulds, Patterns, pulverizing and crushing surfaces,
screens and sieves, ropes, belts, chains, elevator and
conveyor bands, Batteries, Tyres, connecting wires
and cables, flexible pipes, joining and packing
material regularly replaced;
• Old tariff (< 2001) different situation – in case of
accident – Yes (Clause interchanged with MBD –
Conscious Selection ? – Unless loss or damage to the
equipment / Machinery is indemnifiable in terms of the
Policy
 Depreciation – Misc D

• Applicable 5 to 50 % / 50 % / Nil as per

Category – M P G – Fibre Glass Components
30 %.
 Depreciation – CPM

• Nil / applicable only on Limited Life Parts.

 Sum Insured – Misc D

• GR 8 – IDV Concept – 5, 15, 20, 30, 40, 50 %

- Understanding - Market Value / Obsolete
Equipments.
 Sum Insured – CPM

• New Replacement Cost including Freight,

Dues & Custom Duties, Erection Cost.
Under Insurance / Average – Misc
D

• IDV Concept no Average Applicable.

Under Insurance / Average – CPM

• Average applicable.
• EPCG / CENVAT & Discount (unreasonable /
irrational) concept.
 Third Party Liability (TPL) – Misc
D
• RTO Registered / plying on Public Road
compulsory / built-in in Package Policy.

• Cover not applicable / effective when plying

on Private Property.
 Third Party Liability (TPL) – CPM

• Optional limit selected by Insured.

• Owner surrounding property can also be

covered.
 Limit of TPL – Misc D

• Act Liability limited (6000/-) / if opted 7.5

Lacs.
 Limit of TPL – CPM

• AOP / AOA / Max during Policy – 10 / 25 / 25

Lacs limit.
 Discount / Loading – Misc D

• Bonus Malus Clause applicable.

• Maximum 50 / 60 %
 Discount / Loading – CPM

• Discount possible for SI > 5 Crores based on

Claim Experience (- 30 to + 35 %).
 Transit – Misc D

• Yes covered all across country

 Transit – CPM

• No, covered within specific location / premises.

• Separate Transit Insurance required.

• SCP also possible.

 Excess Compulsory / Voluntary –
Misc D

• 1/2 % of IDV normally subject to minimum.

• Discount for Voluntary Excess

 Excess Compulsory / Voluntary –
CPM

• Other than AOG - 2 % / 1500 to Rs 35,000 flat

Max depending on Value Slab.

• AOG – 10 % / 5000 to 1 % of SI – Minimum

50,000/- depending on Value Slab.
 Extensions – Misc D

• Normally not possible.

 Extensions – CPM
• Own Surrounding Properties.
• Debris Removal.
• Express Freight
• Air Freight
• Holiday Wages / Overtime
• Escalation to take care of inflation
Laid up Vehicles – Misc D

• Yes possible.
 Laid up Vehicles – CPM

• Not possible, no silent risk provision in Tariff.

 Single Policy – Misc D

• One Policy for One Equipment

 Single Policy – CPM

• Collective Policy for All Equipments at

different locations (specified) or with Floater
possible.
 Addition / Deletion – Misc D

• Substitution only Possible

 Addition / Deletion – CPM

• Addition / Deletion possible

 Geographical Area – Misc D

• All India without charge

 Geographical Area – CPM

• Locational Risk (in India), Named more then

one location (specified) possible.

• Floater 10 % extra possible anywhere /

specified location (s)
• Floater ? – Different Interpretations
 Under Ground Operations –
Misc D

• No cover granted
 Under Ground Operations –
CPM

• Exception k) (working underground except

tunneling works machineries) removal
possible – 50 % extra.
 Reinstatement of Sum Insured –
Misc D

• Not required
 Reinstatement of Sum Insured –
CPM

• Required / premium charged.

 Driving License – Misc D

• Required for the Class of Equipment as per

MV Act / Rules as / if applicable in some of
States – reference State Motor Vehicle Rules
 Driving License – CPM

• Not required in some of the States – Tyre

mounted Equipments - may be Yes.

• Experience & Training evidence may be called

for.
 Fees – Misc D

• Motor Fees normally.

• Exceptions - Cranes, Dumpers, Dust Carts,
Water Carts, Road Sweepers and Tower
Wagons, Mechanical Navies, Shovels, Grabs,
Excavators, Mobile Plant, Road Rollers, Site
Clearing & Leveling Plant & Tar Sprayers –
Fire & Allied Perils Fees Applicable.
 Fees – CPM

• Fire & Allied Perils fees in all cases

 Summary – Misc D
Good for Equipments Engaged in Rapid
movement from one to another location– as

• Transit covered.
• Coverage all across country.
• Sum Insured – IDV
• Overturning Premium extra in some cases.

Contd … …
• Indemnity Principle applicable (Depreciation).

• Overall premium may be high – discounting /

competition factors (Detariff Scenario).
• Low satisfaction, as payment after
Depreciation.
• Choice depends on usage & application out of
the two Policies, proper vetting required.
 Summary – CPM
• Good for selected / limited location operations.

• Transit within premises covered.

• Locational Risk only.
• Sum Insured – NRV
• Overturning included
Contd … …
• Reinstatement Principal / Modified Indemnity
applicable.

• Overall premium rational with NRV, because

of high – discounting / competition factors
• High satisfaction level of Insured due to
non Deduction of Depreciation normally
 Contrast Condition – Misc D
• Condition # 5:
… Insured take all reasonable steps … in the event of
any Accident or Breakdown, the vehicle insured
Shall not be left unattended without proper … & if
the vehicle Insured be driven before necessary repairs
are effected, any extension of damage or any
further damage to the vehicle shall be entirely at the
Insured’s Own Risk.
 Similar Condition – CPM Policy
• Duties following as Accident:
• In the event of any Occurrence which might give rise
to a claim under this policy the insured shall –
b) take all reasonable steps within his power to
minimize the extent of the loss or damage or liability.

This condition is relatively less bounding as compared

to Misc D Condition
 My Choice

Undoubtedly CPM is a superior policy if

clubbed with proper transit coverage
leading to high Customer Satisfaction.
Indore Motor Seminar 19th to 21st Sept ‘08

• Disclaimer - This Presentation is opinion on

various issues based on experience, available
reference material under the topics & we do
not accept any liability, in any case, of
whatsoever nature, if at all arising out of
reference to the Paper.
 Thank you
Above is an endeavor to share & interact for improvement, an effort to consolidate information
all However no claim is made as to flawlessness of thoughts expressed & every
gathered, compiled from various sources besides hands on experience, on job & real life
experiences.
suggestion to upgrade, amend / modify wherever necessary is welcome.
 

 
M S Sainani
BE, MIE (I),FIAE, FIV
SLA – 15187 (03/03/2012)
United Technical Services
Approved Valuers, Chartered Engineer, Surveyor & Loss Assessors
69, Anand Nagar
University Road
Udaipur - 313 001 (Rajasthan)
Ph Office: 0294 2429543, 2429725
Mobile 94141 68144
Fax: 0294 – 2429725 (on demand), PP 2419317
E-mails: adjuster@bppl.net.in & adjustersainani@gmail.com