Industrial All Risk Policy
It's an All Risk insurance coverage that provides indemnity against losses and damage while erecting, installing, testing & commissioning of Machines, Plant, Equipment, Steel, or other metal Structures due to all unavoidable and fortuitous risks.Principal/Contractor& Subcontractors/Supplier/Manufacturer can opt for this policy as per insurable interest. Like other All Risk insurance policy, this policy is also governed by its Exclusions, rather than coverage. Any project involves a huge amount of investment towards the construction of plant/ buildings and machinery and their installments. 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:
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Physical Risks Causing Loss / Damage to the Property of the Project Proponent/Promoter.
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Physical Risks Causing Loss / Damage to the Property of the Third Parties Giving Rise to Legal Claims.
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Risk Exposure To Workers Engaged In Construction Giving Rise To Legal Claims.
Coverage: This policy covers everything which has not been specifically excluded in the policy. Some of the perils associated with a project are outlined below for the proper understanding of the policy.
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Act Of God Perils Like Storm, Flood, Earthquake (Fire & Shock), Tempest, Landslide / Rockslide / Subsidence, Etc.,
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Location Perils Like Fire And Allied Perils, Theft, Burglary Etc
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Handling Perils - Collision, Impact, damage due to foreign objects Etc
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Negligent Acts - Carelessness, Negligence, Faults in construction, Malicious Act. Strike, Riots, Terrorism Etc.
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Electrical and mechanical breakdown, Short-circuiting, arcing, excess voltage
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Any other sudden, unforeseen, accidental damages
OTHER NOTABLE POINTS IN THIS POLICY.
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DURATION OF COVER - Policy should start fromArrival of First Consignment at Site or Commencement of Work at Site till the Date of Expiry of Project Period/Handover Whichever Comes First.
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SUM INSURED - It should be total project value includingMaterial, Labourand Overhead Expenses
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Permanent/Temporary Civil Engineering Works should also be considered while fixation of sum insured
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Any Fees/Duties and other insurable expenses related to project should also be considered while fixation of sum insured
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Purchases and Imports to be insured at landed cost at site, rather than just cost of item/s
GENERAL EXCLUSION
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Willful act or willful negligence of the insured or of his responsible representative;
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War, invasion, act of foreign enemy, hostilities or war like operations
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Nuclear Reaction, Nuclear Radiation or Radioactive Contamination;
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Cessation Of Work Whether Total Or Partial.
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The amount of loss shown as “excess”
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Loss discovered at the time of inventory taking (transit losses)
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Normal Wear and Tear, Rusting, Etc.
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The Cost Of Correction Of Any Error During Construction unless Resulting In Physical Damage.
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Files, Drawings, Currency andCheques, Etc.
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Packing Materials Such As Cases Boxes, Crates, Etc.
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Penalties (due to insured's non-fulfillment of the terms of delivery or completion under his contract of construction or of any obligations assumed there under or lack of performance including consequential loss of any kind or description or for any aesthetic defects or operational deficiencies )
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Loss OrDamage Due To Faulty Design.
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Cost of repair or replacement of defective material and/orWorkmanship.
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Manufacturing Defectsctivity
MAJOR EXCLUSION
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Removal of Debris
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Construction Plant & Machineries
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Owner’s Surrounding Property
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Escalation
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Third Party Liability and Cross Liability
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Additional Expenses for Overtime, Work On Public Holidays Etc.
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Additional Custom Duty
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Cover During Maintenance Period
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Extended Maintenance
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Limited Maintenance (Visits)
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Storage risk at fabricator's premises
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Express freight and Air Freight
A-1. Fire and Perril
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Heading Fire and Perill:
Detail Fire and Perill