Difference Between CPM Policy and Motor Policy

Difference Between CPM Policy and Motor Policy

Policies are essential because they help people to feel safe and protected in times of need. They provide continuity and stability that can be difficult to achieve with changing world events. For this reason, organizations and individuals have been creating different policies to provide support when needed. It aids individuals and corporations in recouping their losses so that they can begin anew in life.

There are a lot of distinct policies at work that allow for individual and contractor support at the time of need. Motor and CPM are just two of them that seem pretty well-known around the industry. For an individual, his vehicle is his most important asset and liability. To a civil contractor, machines and equipment are his biggest asset and liability.

CPM Policy Vs. Motor Policy

There are two main types of auto insurance policies. CPM or collision promises to cover you if you’re in a car accident and pays for damages incurred, whereas Motor Insurance will provide similar coverage but also covers vehicle costs such as depreciation from an accident or theft. Motor insurance protects you in case of an accident or lawsuit.

What is CPM Policy?

We all know that contractors face an increased risk of property damage when securing a job for new construction or renovation. The increase in the cost of machinery can be almost unbearable sometimes. However, insurance plans like this have been addressing this problem and have become widely common recently. This coverage provides financial protection for a variety of equipment and gear, including rollers, cranes, dumpers, excavators, earthmoving equipment, drilling machines, and so on.

A lot of policies cover accidents that happen out of inexperienced users’ control, such as water damage. Malicious Damage can cause a wide variety of problems, though the risk is always there. This can happen due to the many ways in which harm could occur and your insurance coverage may claim that it was caused by an earthquake, a fire, a collapse, an impact, a collision, water damage, or even storms.

A few things in your insurance are voided by certain exclusions if certain conditions are met. If you’ve willfully caused damage to your equipment or if War or any warlike activity caused the damage, regular wear and tear aren’t covered by insurance, it’s just not part of the policy – Rust is another reason why your policy can be voided. In the wake of this unfortunate event, the contractor might not get financial coverage for their equipment.

The contractor can extend the policy for paying agency fees. This would cover many details about the agency position like property damage, express freight, and insurances. While the Contractor’s Partial Participation Policy is helpful to some, it can still be chosen by the contractor based on his location. It can benefit some especially because of their cost-effectiveness.

What is Motor Policy?

Motor insurance provides financial protection in the event of physical damages or losses caused by accidents or natural calamities. It covers two-wheelers, commercial vehicles, and cars.

Motor policies typically protect automobiles from fire, road accidents, theft, riot, burglary, and other perils. In addition to damages, the motor policy will provide you with certain types of insurance benefits like liability, death, and health-related compensation.

A vehicle policy’s insurance can be canceled in a few situations. If the vehicle was used for any illegal activities, if the driver’s license became invalid, or if the driver was under the influence of alcohol or drugs at the time of the accident, the insurance company may refuse to pay for the damage.

Only a few insurance providers provide additional perks with vehicle insurance contracts. Benefits of having an official service provider link between your vehicle and the official Starwood parking lot include free engine protection, depreciation coverage, towing, roadside assistance, and a cashless network garage in exchange for an additional cost. Every state is required by law to have auto policy insurance. It may be considered a criminal act to drive without having valid auto coverage insurance.

Difference Between CPM Policy and Motor Policy

  • A CPM policy is the insurance structure used by civil contractors and their equipment. It was designed to provide protection against improper construction or any damages that arise during the course of a project. Whereas a motor policy is meant to protect a car owner’s vehicle in case of an accident
  • Contractors’ equipment and mercenaries, like rollers, cranes, excavators, drilling machines, and others are covered under the Commercial Participation in Mutual Protection Program. The insured commercial vehicles, two-wheelers, and automobiles are covered under the Motor Vehicle Liability Policy.
  • CPM provides coverage for water damage, fire & unintentional damage as well as burglary and theft. It also includes third-party liability, vehicle loss, and death. The Motor policy covers road accidents, claiming them to be a definite risk.
  • Willful neglect against the equipment, damage caused by conflict, and regular wear and tear are all excluded from CPM coverage. This can make it difficult to show your customers you’re being safe and fair. If the vehicle is used for any illegal purpose or the driver has a history of driving under the influence, they can be excluded from coverage by our motor policy.
  • In many places, the CPM is a choice for contractors. In most states, though, one must have valid vehicle insurance and be covered on a motor policy.


You never know what’s around the corner. There are many uncertainties in life and there are rules in place that try to guide people through it. For example, there is a CPM policy and a motor point expiration policy if your car breaks down unexpectedly.

The CPM policy allows contractors to protect their vehicle’s and equipment’s financial security before they receive major damages. The vehicle owner receives a lot of protection, which is worth the investment. It also provides cover to the accident victim

It may seem hard to believe but to get continued coverage from any insurance company, you need to follow a lot of rules and regulations.