Engineering Insurance
This policy is specially designed to give financial protection to the Civil Engineering Contractors in the event of an accident to the civil engineering works under construction.
Coverage under CAR policy:
CAR insurance is All Risk insurance in simple language the policy covers loss or damage to civil work during course of construction by every cause which are not excluded under the policy.
Policy covers damage due to:
- Fire & allied perils
- Natural calamities like Storm, Flood, Earthquake, Rock sliding, land sliding
- Riot & strike
- Theft & burglary
- Resultant damage due to faulty workmanship, faulty material
Who can take this policy?
The policy can be taken by the principal, contractor or sub contractor, jointly or separately.
The policy comprises of 2 Sections:
- Section I – Material Damage – covering physical loss, damage or destruction of the property insured by any cause, other than those specifically excluded in the policy.
- Section II – Third Party Liability – covering the legal liability falling on the insured contractor as a result of bodily injury or property damage belonging to a third party.
How is the Sum Insured considered?
Section I – Material Damage
- Total Contract Price including the estimated cost of labour charges and cost of materials
- Materials or items supplied by the Principal
- Any additional items not included in (a) and (b) above
Section II – Third Party Liability (Optional)
The sum insured under section II should represent the per accident limit (the maximum legal liability that may fall on the insured as a result of an accident in the insured’s site). The limit per policy period should be fixed taking into account the maximum number of such accidents which can reasonably be expected to occur.
Important Exclusions under Section I:
- Excess – First amt. of each & every loss to be borne by insured.
- Faulty design
- The exclusion of defective material / workmanship is limited to the parts of the structure immediately affected and does not apply to any consequential loss to correctly executed items, arising out of the accident due to defective material or workmanship.
- Loss discovered only at the time of taking inventory.
- Loss arising out of penalty for delay, non-fulfilment of terms of contract.
- Consequential loss
Period of Insurance:
Period of insurance should be equivalent to the period of contract, commencing from the date of unloading of the first batch of material at the site of construction and expiring on the date of handing over of the contract work to the principal.
In case of delay in completion of work, policy can be extended by paying additional premium depending upon extension period.
Excess: 5% of claim amount subject to minimum ——–depends upon nature of work for normal and AOG/Major Perils/ Collapse claims.
Coverage available under Erection All Risk policy.
- Storage Risk
- Shifting
- During Erection
- During Testing
The policy can be taken by the principal, contractor or sub contractor, jointly or separately.
The policy comprises of 2 Sections:
- Section I – Material Damage – covering physical loss, damage or destruction of the property insured by any cause, other than those specifically excluded in the policy.
- Section II – Third Party Liability – covering the legal liability falling on the insured contractor as a result of bodily injury or property damage belonging to a third party.
How is the Sum Insured considered?
Section I – Material Damage
- Total Contract Price including the estimated cost of labour charges and cost of materials
- Materials or items supplied by the Principal
- Any additional items not included in (a) and (b) above
Section II – Third Party Liability (Optional)
The sum insured under section II should represent the per accident limit (the maximum legal liability that may fall on the insured as a result of an accident in the insured’s site). The limit per policy period should be fixed taking into account the maximum number of such accidents which can reasonably be expected to occur –
Period of Insurance:
Period of insurance should be equivalent to the period of contract, commencing from the date of unloading of the first batch of material at the site of construction and expiring on the date of handing over of the contract work to the principal.
In case of delay in completion of work, policy can be extended by paying additional premium depends upon extension period.
Excess: As per tariff depending upon type of project
Machinery breakdown policy is ideal cover for plant and machinery, to cover cost of repair or replacement of damaged parts as a result of accidental Electrical and Mechanical Breakdown.
Scope of Cover:
- Sudden and unforeseen accidental damage to machinery, the machinery can be at work or at rest.
- Damage due to faulty material, human error / lack of skill in operation by workers/operators, faulty construction, carelessness, overheating of parts, entry of foreign body, short circuit, faults in erection failure of operation of safety device, wear & tear.
Important Exclusions:
- Fire and related perils
- Damage due to any cause for which the manufacturer, supplier/repairer is responsible.
- Wilful misconduct or gross negligence of insured
- Normal wear & tear
- Operating media & exchangeable tools
- Excess to be borne by insured for each & every claim.
Sum Insured:
The SI of each item of machinery must be its present day Replacement value of similar new machines including incidental expenses, taxes, excise, freight etc. If the SI is not adequate then under insurance shall apply at the time of claim.
Extensions:
- Express freight, holiday and overtime rates of wages
- Air freight
- Additional Custom duty
- Escalation
Excess: 1% of the sum insured subject to minimum of Rs. 2,500/-
EEI Policy is a comprehensive policy designed for various types of electronic equipment such as computers, microprocessors, industrial electronics and audio/visual equipment including the value of system software etc.
Scope of Cover:
This Policy provides comprehensive coverage against unforeseen and sudden physical loss or damage to the electronic equipment and data media that occurs owing to perils other than those specifically excluded.
It covers sudden and unforeseen material damage to electronic equipment due to clauses like –
- Loss due to fire and allied perils
- Electrical and mechanical breakdown of the insured’s item
- Short circuit and voltage fluctuations
- Carelessness/human error
- Theft and burglary etc
In case where damage to an insured item can be repaired the insurer will pay expenses necessarily incurred to restore the damaged machine to its former state
In case where an insured item is destroyed the Insurer will pay actual value of the item immediately before the occurrence of the loss
Important Exclusions:
Cost Incurred/time involved in the movement of machinery and/or any other property and/or personnel outside the territorial limits of India other than the cost of delivery of replacements for machinery lost or damaged
Loss of or damage to the property covered under this policy falling under the terms of the Maintenance Agreement
Loss destruction or damage directly occasioned by pressure wave caused by aircraft and other aerial devices traveling at Sonic or Supersonic speeds.
Sum Insured:
The SI of each Electronic item must be its present day Replacement value of similar new Electronic Equipment including all incidental expenses like cost of erection, duty, freight, taxes etc.
Excess:
For equipments with value up to Rs. 1 lakh –
i) Equipments (other than Winchester Drive) : 5 % of claim amount subject to a minimum of Rs.1,000/-
ii) Winchester Drive : 10 % of claim amount subject to a minimum of Rs. 2, 500/-
For equipments with value more than Rs. 1 lakh –
i) Equipments (other than Winchester Drive) : 5 % of claim amount subject to a minimum of Rs.2, 500/-
ii) Winchester Drive : 25 % of claim amount subject to a minimum of Rs. 10,000/-
Warranty:
Annual maintenance contract should be in force during currency of the policy.
By its very nature, mobile machinery is prone for accidents. They are exposed to relatively frequent medium to large accidental losses of unpredictable cost.
It covers physical loss or damage, which the contractor’s plant & machinery could suffer.
Mobile construction machinery:
This category consist of:
- Earth moving machines, loader, scraper, bulldozers, graders, excavators, trenching machines, dumpers
- Mobile cranes
- Mobile mixing plant, pavers for asphalt, road rollers
Stationary plant:
This category consists of:
- Concrete batching plants
- Tower cranes, hoists
- Compressors, pumps, transformers, workshop machines
- Power generating plant
- Aggregate plant
- Stone crushers, screens
- Cement silos, surveying equipment
- Conveyor belts, chain blocks
Scope of Cover
Perils covered
- Fire, explosion, riot & strike, malicious damage.
- Collision & derailment
- Over turning & over toppling
- Operator’s error
- Crashing into ditches or downhill
- Natural calamities like storm, cyclone, flood, inundation, land sliding, rock sliding & subsidence & earthquake
- Theft and burglary
In short CPM policy covers accidental external damage excluding internal breakdown.
Exclusions:
Few important exclusions are as under.
- Transit from one site to another site.
- Internal mechanical & electrical breakdowns.
Extensions of the policy:
The policy can be extended to cover
- Third party liability – personal injury and property damage.
- Damage to owner’s surrounding property.
Who can insure?
The policy can be taken by any one of the following parties, either individually or jointly:-
- The owner of the machine
- The contractor / user of the construction machinery
- The financial institutes who have an interest in the construction machinery
Basis of Sum Insured
The sum insured of each item of machinery should represent the current purchase cost of a similar kind & capacity. New machine including all incidental expenses like freight, duty, taxes, cost of erection etc.
Floater Policy
Machines operating at different sites can be covered in single policy at additional loading of 10% in premium chargeable.
This policy will cover
- Damage to steam generating boiler itself arising out of its explosion / implosion
- Damage to surrounding property of insured caused by flying debris of exploded boiler.
- Third party liability arising out of explosion – damage to property owned by third party or personal injury to third party.
Major Exclusions
- Loss damage and/or liability caused by or arising from or in consequences, directly or indirectly of fire
- Accident loss damage and/or liability resulting from overload experiments or tests requiring the imposition of abnormal conditions.
- Gradually developing flows, defects, cracks or partial fractures in any part not necessitating immediate stoppage although at some future time repair or renewal of the parts affected may be necessary.
- Loss or damage for which the manufacturer or supplier or repairer of the property is responsible either by law or under contracts.
Sum Insured
It is the requirement of this policy that sum insured of each machine insured should be equal to its replacement value of similar capacity new machine. If machine is not insured for its replacement value, under insurance condition will apply & claim will get reduced.
Excess: 5% of claim amount subject to minimum of Rs. 10,000/–.
