Contractor All Risk
It's an All Risk insurance policy which protects Owner, Lesser or Hirer (where responsible either legally or through a leasing agreement) of electronic equipment. It covers accidental, unforeseen and sudden physical loss or damage to electronic equipment (Including system software) against sudden & unforeseen physical damage by any cause or peril those are not excluded under the Policy..
Coverage: This insurance covers sudden, unforeseen and accidental loss or damage to the equipment caused by:
Burglary & Theft.
Negligence, Lack of Skill, Carelessness
MAJOR EXTENSIONS AVAILABLE
You may extend your policy by paying additional premium. Major optional extensions available are:
-: Escalation cost;
-: Express freight;
-: Air freight; additional custom duty;
-: Third party liability;
-: Owners surrounding property;
-: External data media; and
-: Increased cost of working.
MAJOR EXCLUSIONS
-: Willful acts or gross negligence on the part of you or your representatives;
-: War or warlike operations, nuclear reaction, radiation or radioactive contamination;
-: Wear and tear, faults or defects existing at the time of commencement of insurance which ought to have been or were known to you;
-: Faults or defect for which the supplier/manufacturer/maintenance contractor is responsible either by Law or under contract;
-: Loss, destruction or damage directly occasioned by pressure, wave caused by aircraft and other aerial devices traveling at sonic or supersonic speeds;
-: Loss of or damage to the property covered under this Policy falling under the terms of the Maintenance Agreement; and
-: Policy Excess - This is the first amount of any claim that insured have to bear.
The policy can be taken by any individual or organization as Principal or Contractor of a Construction project. It can be taken in joint names also.
Yes. The period of insurance is 18 months and above, the period for which refund claimed is 3 months and above and claims experience under the policy being less than 60.
No. The policy has few exclusions like War and nuclear perils, wear and tear, gradual deterioration, Damage due to faulty design, Consequential loss, etc.
The policy period should be identical with project period i.e from commencement of work or arrival of material at project site and upto completion and handing over to Principal.
Yes. Instalment facility is available if project duration is more than 12 months.
Duly filled proposal form providing details of nature of project, sum insured, project period, location, Principal, contractors, financial institutions and add on covers required is to be submitted along with copy of contract, if available.
Yes. However, premium shall be charged based on actual commencement date. The proposal would be accepted after inspection to ascertain the status of construction. It is advisable to avail policy on or before commencement of work.
Yes. It can be extended with payment of additional premium while extending the policy.
Yes. Refund can be made on the basis of actual values to be declared by the insured in respect of freight and handling charges, customs dues and construction cost. Any increase or decrease in the Prime cost of materials shall not be the subject matter of premium adjustment.
No. The policy does not cover any consequential loss like loss of revenue due to delay in start-up or fines and penalties.
The loss of expected revenue due to delay in start-up caused by insured perils during the construction phase can be covered by a separate policy called Advance loss of profit insurance.
Yes. Policy can be taken in the name of principal/Contractor/sub-contractor or in joint name of parties having insurable interest including financiers.
There is no minimum limit for Sum Insured.
There is no minimum time period for policy.
Yes. Construction material or machinery forming part of project is covered. However, Insured is required to take due care in safeguarding the property.
No. However, if testing is required, separate Erection all Risk policy can be taken for such equipment.
The policy can be taken with Escalation provision at additional premium.
No. Company’s liability expires for portion of the insured contract works taken over or put into service by the Principal prior to the expiry date.
The Sum Insured under CAR Policy should represent the completely constructed value of the project to be installed including freight, customs duties and erection cost. This should represent the current replacement value of the items when constructed.
AOG refers to Act of God perils and includes Storm, Tempest, Flood and inundation, subsidence, rockslide, Landslide, Earthquake, tsunami and other natural calamities which are beyond the control of humans.
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Heading Contractor All Risk Insurance:
Details Contractor All Risk Insurance
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Claim procedure:
:
• Immediately notify the Insurers by email as well as in writing giving an indication as to the cause, nature and extent of loss or damage.
• Take such steps as reasonably possible to minimize the extent of the loss or damage;
• Preserve the site/property affected for inspection by Insurers representative and/or the Surveyor.
• Furnish all such Information and/or documents as the Insurers/Surveyor may call for.
• File a FIR In case of Loss due to Theft or Burglary.