Engineering Insurance
"Provides protection against all risks associated with erection, testing, commissioning of machinery etc."
Engineering Insurance
Engineering Insurance is a protection strategy that covers a wide scope of engineering related risks. It is a far comprehensive insurance that protect total security against dangers related with erection, resting and working of any machinery, plant or equipment.
In industries and factories, even in offices or at home, nowadays more and more machinery and equipments are being used. They are exposed to various accidental losses like fire, theft, accidental breakdown etc. Such losses not only cause financial stress on its owner but also hinder normal operation of the Industry. Apart from this, massive Engineering projects ranging from building of bridges to set up thermal power stations are very common in today’s era of industrialization. Major accidents or natural disasters like earth quake etc will cause immense losses to such projects. Engineering Policies are designed to provide coverage against such accidental losses.
TYPE OF POLICIES
Broadly, various engineering policies can be classified as follow :
Construction Phase Insurance (Project Policies)
These are one time policies issued for the entire project period irrespective of whether the project period is a few days or a few years:
I. Contractor’s All Risk Insurance (CAR)
II. Erection All Risk Insurance (EAR) [ also known as Storage-cum- Erection or SCE Insurance]
III. Marine – cum – Erection Insurance (MCE)
Basic Principals are applicable for Engineering Insurance Contacts.
Insurable Interest Indemnity
Utmost Good Faith Subrogation
Proximate Cause Contributio
Operational Phase Insurance (Annual Policies)
These are under noted :
I. Machinery Insurance
II. Contractor’s Plant and Machinery Insurance
III. Electronic Equipment Insurance
IV. Boiler and Pressure Plant Insurance
V. Deterioration of Stock Insurance (DOS)
VI. Civil Engineering Completed Risk Insurance ( CECR)
VII. Contract Works Insurance (CW)
VIII. Machinery Loss of Profit Insurance ( MLOP)
IX. Boiler Loss of Profit Insurance ( BLOP)
Contractor's All Risk
It's an All Risk insurance coverage which provides coverage for losses to Principal/Contractor due to all unavoidable and fortuitous risks present during the period of construction for the property whereInsurableinterest exists. Any project involves a huge amount of investment towards construction of plant/ buildings and machinery and their instalments. Both Construction and Erection phases of the project are constantly shadowed by various natural and manmade risks which could result in accidents or losses as outlined below:
1. Physical Risks Causing Loss / Damage To The Property Of The Project Proponent/Promoter.
2. Physical Risks Causing Loss / Damage To The Property Of The Third Parties Giving Rise To Legal Claims.
3.
Risk Exposure To Workers Engaged In Construction Giving Rise To Legal Claims.
Electronic Equipment Insurance Policy
It's an All Risk insurance policy which protects Owner, Lesser or Hirer (were 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
Very beneficial
insurance for engineers, this type of insurance provides an all-risk Insurance cover in case of breakdowns or damages to electronic devices used in a business.
Erection All Risk
Comprehensive
engineering insurance
, the Erection
All Risk Insurance policy
covers all the parties involved the erection work, including processes like erection, storage, testing as well as commissioning.
Machinery Breakdown
This policy covers the cost of repairs or replacement of damaged parts of plant and machinery as a result of unforeseen and sudden physical damages. The cover affords protection to the insured machinery whilst at work or at rest and also when they are being dismantled for the purpose of cleaning, inspection and overhauling or removal to another position or in the course of their operations or subsequent re‐erection, provided these are performed in the same premises. The MBD insurance also covers loss or damage due to fire, in insured electrical machinery, originating from within such insured machinery and resultant fire damage to such machinery only,. The Standard Fire & Special Perils Policy specifically exclude this risk. So, in other words, this policy also covers the losses excluded in fire policy in terms of electrical exclusion/dynamo clause.
Boiler Explosion
This policy covers the sudden and unforeseen Loss or Damage to any type of Boiler &/or Pressure Plants/vessels fitted in any Industrial or Non-Industrial unit, due Explosion or Collapse during the normal course of working. It also covers any damage to surrounding property and Third-Party legal liability arising due to the explosion and collapse of the boiler/ pressure plant. The policy is critical to the manufacturing process as the impact from such events could assume catastrophic proportions, both in terms of the lives and the financial losses due to explosion. Thus the policy is critical for all manufacturing set up and should be opted by all Industrial Units, if not attained yet.
Contractors Plant and Machinery Policy
The Contractors Plant and Machinery Policy is a form of machinery insurance which covers movable plant equipment and machinery such as bulldozers, cranes, excavators, etc.
This policy covers the loss or damage to construction &/or mobile equipment like compressors, excavators, earthmovers, cranes, forklift etc, on a particular location. Losses/ expenses due to Sudden and unforeseen physical damage to various equipment being used for any purpose on project sites or within the premises of industrial units are being covered by this policy.
