FAQs
Q. What is mobile plant?
A. Mobile plant is anything that can be moved from one place to another under its own steam or by being transported and to be used eg backhoes, boom lifts cherry pickers, concrete trucks, conveying vehicles, cranes (mobile, yard & tower), drill rigs, dozers, dump trucks, excavators, fam machinery, fork lifts, garbage trucks, graders, heavy recovery vehicles, hydraulic hammers, loaders, pipe layers, portable compressors, road pavers, road profilers, rock breakers, rock saws, rollers, scissor lifts, self loading trucks, tippers, travel towers. trenchers, under-road borers, water trucks, wood chippers & mulchers.
Q. Is it true that in Queensland mobile plant such as Bobcats and excavators need to be registered?
A. Yes, and it’s not just Queensland. Most states of Australia now have a system of “Conditional Registration” which allows previously unregisterable vehicles to be registered for limited use on “public roads” or “public places”. The problems arise due to the definitions of these places bringing in, basically, any place to which, at the time, a member of the public had access. Taking this to the extremity that a court may do in the event of serious injury, it may be that a backhoe in your backyard, digging a hole for your swimming pool, could be deemed to be operating in a public place if the neighbor’s child wanders in to watch and is injured.
All current Liability policies have a “vehicle” exclusion which covers any vehicle which is ‘registered or which is required by any law to be registered or have in force compulsory liability insurance” – or words to that effect. Some wordings write back the cover for vehicles whilst working as a Tool of Trade but you need to be aware of the definitions of Tool of Trade (or similar terminology). Some exclude while the vehicle is moving so that, even if working at the same time, the insured would be relying on CTP - hardly satisfactory. The CEMAC Tool of Trade extension includes whilst moving if simultaneously being used for work.
If you require sample documents of problems in this area contact our underwriting staff.
Q. Does your policy cover dry hire?
A. Yes. Our standard policy includes Dry Hire as an automatic extension provided the insured has dry hire conditions in place making the hirer responsible for damage to the machine and that no damage waiver provisions are in place. This effectively means that we cover our insured but have subrogation rights against a hirer as they are deemed to be a third party causing damage to our insured’s machine.
Under certain circumstances it may be appropriate for our insureds to pass insurance on to their customers. In such cases we have an Extended Dry Hire (EDH) option available (at extra premium). The normal times this would be used is for businesses operating on mainly short term hire to customers who may not be able to obtain short term insurance to cover their responsibility.
You can obtain notes on dry hire from the download section of this site and further notes and sample documents are available from underwriting staff on request.
Q. Who is your security?
A. Lumley Insurance. We were delighted to celebrate, on 1st October 2004, the tenth anniversary of our association with Lumley Insurance – one of Australia’s most respected Insurers. It has always been our goal to deal with Australian insurers as we believe they are best positioned to offer the service levels we wish to pass on to our supporting brokers.
Q. I have just bought a crane and need insurance – can you give me a quote?
A. CEMAC only deals with intermediaries licensed under the FSRA. If you tell us where you are situated we can refer you to a couple of brokers in your area.
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