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Industry Practice · Heavy industry & manufacturing

Mining & Ore Extraction

Insurance for surface and underground mining operations, iron ore, coal, bauxite, manganese, covering plant, people, transit and statutory liability.

Equipment loss & breakdownWorker fatality & disabilityTransit losses on haul routes
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The sector

A sector where one incident can affect plant, people and licence.

Mining operations carry the highest cumulative risk profile in Indian commercial insurance: heavy capex in plant, hazardous-occupation workforce, ODC haulage to ports or smelters and exposure to environmental and statutory enforcement. The right programme reflects each of these as a separate workstream, not a single 'mining policy' that papers over the differences.

Risk profile

Where the exposure lives.

Mining concentrates exposure in the pit, the processing plant and the statutory duty to workers. These four lead the review.

01
Equipment loss & breakdown
Excavators, draglines, haulers and crushers represent eight-figure capex. Breakdown or accident creates direct loss and disrupted production simultaneously.
02
Worker fatality & disability
Underground hazards, vehicle movement on mine roads and falling-object exposure mean mining sits at the top of EC Act claims-frequency tables.
03
Transit losses on haul routes
ODC trucks on poorly surfaced mining roads experience cargo loss, accidents and theft of high-value ore consignments en route to the port.
04
Environmental & community liability
Tailings dam failure, blasting damage to adjacent property and air-quality enforcement under DGMS rules create significant third-party exposure.
Recommended cover

The programme we typically place.

Each cover below is a link to the policy page. The combination, the limits and the wording are what we negotiate on your behalf.

01
Plant & Machinery
Cover for mine excavators, haul trucks, crushers and processing plant with reinstatement value cover.
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02
Workmen Compensation
EC Act cover at hazardous-occupation rates including underground worker schedules.
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03
Marine Insurance
Inland Transit cover for ore haulage from pit head to port, smelter or processing facility.
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04
Public Liability
Third-party cover including pollution and blasting damage extensions where the operation is enforced under DGMS.
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05
Contractor's All Risk
CAR/EAR cover for mine expansion projects, new pit development and processing-plant erection.
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Claim reality

What a claim tends to look like here.

A typical loss is machinery breakdown or a fire in the processing plant that halts extraction, so the claim combines physical damage with lost output. Where the incident injures workers, a statutory Employees' Compensation claim runs in parallel.

Questions

Questions we get in this sector.

Yes, if a machinery loss-of-profits extension sits on the breakdown policy. Without it, the policy pays only to repair the machine, not for the output lost while it is down. We size the indemnity period to your actual recovery time.
Liability for contractors depends on the contract and the cover each party holds. We map who insures what before work starts, so a claim is not disputed between your policy and the contractor's.
Mining carries its own regulatory framework alongside the Employees' Compensation Act, and contractors' workers form a large part of the workforce. Verifying that each contractor actually holds cover matters more here than the clause requiring it.
No. Mobile plant is covered on a contractors' plant and machinery basis, which follows the machine wherever it works, rather than on a fire policy tied to an address.
Usually the loss of a critical machine with a long replacement lead time, and the production stopped while it is replaced. The repair cost is rarely the significant half of that figure.

Need a sector-specific risk review?

Speak with an advisor who has arranged cover for mining before.

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