Marine cum Erection Insurance (MCE) provides end-to-end protection for capital equipment — from the supplier's factory to commissioning at your project site. One policy, zero coverage gaps.MCE combines Marine Cargo and Erection All Risk insurance, eliminating the gap between transit and erection coverage. It covers testing and commissioning phases, including trial runs. Third-party liability can be added, and the policy handles phased deliveries over long project timelines.Marine Insurance covers transit; Erection All Risk covers installation; MCE covers both. Best suited for EPC contractors, infrastructure developers and plant operators. Delay in Start-Up (DSU) losses require a separate policy. Existing site machinery can be added as Principal's Existing Property (PEP).
Projects that insure transit and erection separately risk a gap in coverage during unloading, storage at site or pre-erection handling. Marine cum Erection Insurance creates a continuous coverage envelope from the supplier's works to final commissioning, eliminating ambiguity about which policy responds to a claim.
The most complex and risk-prone phase of any machinery project is the testing and commissioning period. This policy specifically extends coverage through this phase — including trial runs and performance testing — which standard erection policies may limit or exclude by default.
Construction and erection sites carry inherent third-party risks — workers, visitors and adjacent properties can be affected by project activities. MCE policies can be extended to cover third-party bodily injury and property damage, protecting the project owner from legal and financial liability arising from site incidents.
Infrastructure and manufacturing projects often span months or years with multiple phased deliveries. MCE policies can be structured to accommodate phased material arrivals, multiple transit legs and extended commissioning timelines, providing flexible coverage aligned with the actual project schedule.
From floods and storms to accidental drops, welding errors and mechanical breakdown during erection, MCE policies cover a wide range of named and unforeseen perils. This is particularly critical for heavy capital equipment where replacement or repair costs can run into crores of rupees.
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Marine Insurance covers cargo in transit from origin to destination. Erection All Risk (EAR) Insurance covers physical damage to machinery and contract works during installation. Marine cum Erection Insurance combines both into one policy with continuous coverage.
EPC contractors, infrastructure developers, manufacturing companies setting up new plants, project owners procuring imported or domestic heavy machinery, and power or industrial project developers are the primary buyers of this policy.
Physical damage coverage is included under MCE. However, financial losses due to delayed project completion — known as Delay in Start-Up (DSU) — are covered under a separate DSU policy, which can be purchased alongside MCE.
Standard MCE policies cover new equipment under installation. Existing machinery at site can be included as Principal's Existing Property (PEP) through a specific extension to the policy.
Typically, a detailed claim notification, survey/inspection report, purchase invoices, packing lists, Bill of Lading or airway bill, site incident report and repair estimates are required. The exact list varies by insurer and nature of claim.
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