Contractor’s All Risk Policy (CAR):
The idea is to offer the parties involved in a construction project a comprehensive and specifically designed protection against :
- Loss or damage to contract works of civil engineering projects.
- Third party claims for Bodily Injury or property damage.
- Loss or damage to contractor’s plant and equipment.
CAR insurance provides an “All Risk Cover” and may be concluded by the Principal or by the Contractor including all Subcontractors and other parties having an interest in the project.
This type of “All Risk Cover” comprises every hazard which is not specifically excluded. This means that almost any sudden and unforeseen loss or damage occurring to the property insured, at the site during the insurance period will be indemnified. Third party liability cover is also granted.
Erection All Risk Insurance (EAR):
This branch of the Engineering insurance offers the same type of Comprehensive All Risk protection as for CAR, but is more adapted to the erection exposures of machinery, plant and steel structures. Third party liability is included in the same manner.
EAR – Insurance provides a very wide cover similar to the CAR cover. Almost any sudden and unforeseen loss or damage is covered with a few exceptions only.
Marine-cum-Erection Insurance including storage:
Normally the erection insurance cover starts after the marine insurance cover ends. The distinct advantage of such a combined policy is that cover remains uninterrupted.
Machinery Breakdown Insurance:
After the erection is completed and the testing period is over the machinery is put into production on commercial basis working for one or more shifts. During normal working of the machines they are exposed to various hazards. To afford protection to the owners of machinery against such hazards the MACHINERY BREAKDOWN POLICY is devised. Machinery Breakdown policy affords protection against unforeseen and sudden physical loss or damage from causes not excluded, in a manner necessitating its repair on replacement.
Loss of Profits following Machinery Breakdown:
Consequential loss following machinery breakdown insurance grants cover against loss of gross profits caused as a result of the breakdown of the machines insured under the Consequential Loss Policy and losses admissible under the concurrent machinery insurance policy. Property damage admissible under the Machinery Breakdown Policy is therefore the event giving rise to a claim under the Consequential Loss Insurance.
Contractors Plant and Equipment Insurance:
It is an insurance of physical loss or damage which the contractor’s plant and equipment could suffer, whether at rest or in operation, as a result of fire, collision, impact of all kinds, overtopling, crashing into ditches or downhill, flood and storm, theft, malicious damage, etc. Internal break down, for example breakage of gears, is not covered unless it is a direct effect of external impact.
Boiler & Pressure Vessel Explosion Insurance:
Boiler or other pressure vessels are covered under a Boiler Explosion Insurance Policy against the damage arising out of explosion or collapse of any boiler or pressure vessel including legal liability for damage to property not belonging to the insured as well as fatal or non-fatal injuries to persons other than insured’s own employees or workmen or members of family. This could be extended to cover indemnity in respect of the surrounding property of the insured.
Low Voltage/Computer Insurance:
The rapid growth in electronic data processing over the past few decades has brought with it a need for insurance especially tailored to suit computers.
A wide cover has thus been created for machinery breakdown, fire and a number of risks not customarily covered by fire insurance policies. Excellent insurance protection for large computer system is available under “all risks” policies. Insurance for small computers (micro and mini-computers) is better provided via a physical damage policy with cover for external causes of damage, excluding internal breakdown.
Deterioration of Stock Insurance:
Deterioration of Stock Policy is a consequential Loss Policy for the deterioration of stocks stored in cold storages arising out of mechanical or electrical breakdown of the machinery insured. The Machinery Breakdown Policy is a pre-requisite before a deterioration of Stock Policy can be granted.