We explain that what is the difference between CPM policy and motor policy with table. Policies are an important aspect of society. They give support in time of need. Therefore, various government organizations and private business entities have created different policies to provide support in bad times. It helps people and businesses recover their loss and can start over in life.
CPM and Motor are two distinctive policies that provide the required individual and contractor support in a time of need. For an individual, his vehicle is one of his main assets and liabilities. Similarly, for a civil contractor, equipment and machinery are their greatest assets and liabilities.
In an overview, these two insurance policies may look the same. But these two policies are created for two specific purposes. The main differences between the CPM policy and the motors policy are Intended Purpose, Objects Covered, General Coverage, General Exclusions and Requirements.
Comparison table between CPM policy and motor policy (in table form)
Comparison parameter CPM policy motor policy
|Destined to||Contractor equipment and machinery||Motor powered motor vehicles|
|Covered objects||Cranes, Rollers, Excavators, Dumpers, Drills, Earthmoving, etc.||Automobile, two-wheelers, commercial vehicles.|
|General coverage||Accidental and climatic damage to machinery and equipment. Malicious damage from theft, robbery, riot, terrorism, etc.||Accidental damage to vehicles and victims. Malicious damage such as theft, theft and loss of the vehicle.|
|General exclusions||Negligence against equipment, damage due to war or commotion, general wear and tear, etc.||If the vehicle was used for illegal activities, if the driver’s license is invalidated, or during the time of the accident if the driver remained under the influence of alcohol.|
|Requirement||The CPM policy is not required in all states.||The motor policy is mandatory in all states.|
What is the CPM policy?
An insurance policy that covers the contractor’s part and machinery is universally known as a CPM policy. This insurance policy is a financial guarantee for damage to the plant and machinery. This insurance policy offers financial security for various types of equipment and machinery such as cranes, rollers, excavators, dumpers, drills, types of earthmoving equipment, etc.
Generally, the CPM policy covers various types of accidental damage. It can include fires, earthquakes, landslides, collisions, impacts, floods, storms, floods, water damage, etc. In addition to these damages, the CPM policy also covers various types of malicious damages such as theft, robbery, riot, terrorism, etc.
For some reasons, the term of the insurance can be canceled. These reasons for general exclusions are willful act or negligence against equipment, damage due to war or commotion, general wear and tear, rust, lack of use, etc. Under these conditions, the insurance company may refuse to provide financial coverage on the contractor’s piece and machinery.
With the payment of an additional premium, the contractor can extend the CPM policy on certain things. May include surrounding property of the owner, derby authorization, express freight, third party liability, etc.
Although the CPM Policy is beneficial to the contractor, it is not required by all states. The contractor can choose the policy based on the location of his project.
What is the motor policy?
The objectivity of the motor policy is to provide vehicles with financial protection against physical damage and losses that occur from accidental and natural calamities. This insurance policy covers automobiles, two-wheelers, and commercial vehicles.
Normally, the motor policy provides financial protection to vehicles against traffic accidents, fires, theft, theft, riots, floods, earthquakes, etc. In addition to these damages, the auto policy also covers third party liability, health, and death-related compensation.
Auto policy insurance can be voided in some circumstances. The insurance company may refuse to pay damages if the vehicle was used for illegal activities, if the driver’s license becomes invalid, or during the time of the accident if the driver remained under the influence of alcohol or drug abuse.
Few insurance companies also offer additional benefits to auto policies. For an additional premium, they offer depreciation coverage, motor protection coverage, roadside assistance, towing, and cashless network garage. According to the law of various government agencies, auto policy insurance is mandatory for all states. Driving a vehicle without a valid auto insurance policy can be charged with a crime.
Main differences between the CPM policy and the motor policy
- The CPM policy is an insurance system for civil contractors and their machinery. Where the Motor policy is an insurance system for vehicle owners.
- The CPM policy covers the contractor’s equipment and the mercenaries such as cranes, rollers, excavators, dumpers, drills, excavators, etc. The motor policy provides coverage for the insured automobile, two-wheelers, and commercial vehicles.
- The general coverages against the CPM policy are fire, water damage, accidental damage, theft and theft, etc. On the other hand, the Motor policy provides insurance coverage for civil liability, traffic accidents, death, loss of vehicle, etc.
- Exclusions from CPM’s policy are willful negligence against equipment, war damage, and general wear and tear. Motor policy exclusions can occur if the vehicle is used for any illegal purpose, voids the driver’s license, or if the driver remains influenced by alcohol or drugs at the time of the accident.
- Worldwide, CPM policy is not mandatory everywhere, in many states, it is optional for contractors. However, in most states, the motor policy is mandatory and the driver must have legitimate vehicle insurance.
Uncertainty is a big part of life. No one here is sure what natural or man-made calamity will strike them and their businesses. For this reason, different governments around the world created various policies to protect them. The CPM policy and the motor policy are these types of agreements.
CPM’s policy is specifically designed to provide financial protection to civilian contractors. This policy allows them to financially secure their machinery and equipment. Where the motor policy provides significant financial protection to the vehicle owner in the event of an accident or loss of the vehicle. It also covers the accident victim.
However, for both policies, the owner must follow the rules and regulations to avoid exclusion from the policies.