CPM Policy covers on an annual basis various types of mobile equipments like earthmovers, excavators, cranes, shovels, forklifts whilst at work, at rest or during maintenance operations at construction sites only.

The policy covers sudden, accidental, external damage to the insured machinery due to any cause other than those specifically excluded in the policy.

It is a main condition under the above insurance coverage that the sum insured shall be equal to the cost of replacement of the insured items by new ones of the same kind and capacity, including cost of freight, customs duties and dues, if any, and cost of erection.