Contractors' All Risk(CAR)
CAR Insurance is designed to protect the contractor and the principal against losses and damages that might arise during the construction work for any Building or Civil Engineering project under construction.
The CAR policy provides cover for the following items:-
- Contract works;
- Construction Plant and Equipment;
- Construction Machinery;
- Costs for removal/Clearing of debris;
- Third Party Liability;
- Surrounding property
Constructions under CAR are classified as:
- Buildings:-Residential Buildings ,Office Buildings, Multi-Storey buildings, Hall Buildings, Cold Storages, Warehouses, Hotels, Hospitals, Schools, Theatres, Factories, etc.
- Civil Engineering Projects:- Roads, Airports, Railway lines, Hydraulic Structures, Dams, Hydro-Power projects, Bridges, Tunnels, Dams, Water supply systems, canals, harbors, and drainage systems etc.
Contractors’ Plant and Machinery(CPM)
CPM is an insurance contract of contractor’s plant and machinery on an annual basis.
Scope of cover:Any unforeseen and sudden physical loss or damage from any cause not specifically excluded causing damage necessitating repair or replacement. The scope of cover is for all risk except for perils that are specifically excluded.
CPM is all plant or machinery which renders its service when moving or under the control of an operator. Examples of CPM are:-
- Cranes-Tower cranes, mobile cranes
- Tunneling machinery
- Drilling rigs
- Transportation (tractors, dump trucks etc).
Erection All Risk(EAR)
The policy is designed to protect the contractor and principal against losses and damage that might arise during the erection process for a project under construction.
- Construction/Erection Materials;
- Machinery and equipment being part of construction/Erection project;
- Surrounding property belonging to or held in care , custody or control of the Insured;
- Construction/Erection machinery on site during the construction period and if required during maintenance period;
- Cover can be extended to cover the insured’s liability to third parties
CHARACTERISTICS OF EAR PROJECTS
- Consist of machinery /equipment manufactured /fabricated in factory and assembled on site
- Mainly steel and metal;
- Manufacturer’s risk lies with the producer/manufacturer;
- High concentration of values;
- Testing is important, and poses high risk.
- Contractor is only liable for his activity i.e. only assembling and testing.
The causes of indemnifiable losses under an EAR policy are:
Fire, Lightning, Explosion, Extinguishing water or other fire fighting measures, Flood, Inundation, Rain, Snow, Avalanche, Tsunami, Windstorm of any kind, Earthquakes, subsidence, Landslides, rockslides, Theft, Burglary, Lack
of skill, Negligence, Malicious Acts human error etc...
Projects Insurable under EAR Policy:
- Power plants
- Chemical Industries
- Transportation and traffic systems
- Electrical Industries
- Metal Production Industry
- Metal working Industry
- Paper and cardboard Industry etc.
Electronic Equipment Insurance (EEI)
EEI is the insurance of electronic Equipment against sudden and unforeseen physical damage from any cause not specifically excluded.
What is electronic Equipment?
- All electrical equipments that consume low or moderate electrical power (low current).
EEI Policy covers:
The cover is in force whether the insured items are at work or rest, or being dismantled for the purpose of cleaning, overhauling, or when being shifted within the premises, or in the course of the aforesaid operations themselves, or during sub-sequent re-erection, but in any case only after successful commissioning.
EEI is an operations cover i.e. it does not cover transportation of the equipments, installation and commissioning.
Items covered/Field of application EEI Policy are:
- Computers-Electronic Data Processing systems and Equipments,
- Office equipments – photocopies, scanners, telephones,
- Medical Equipments- X-ray machines, computer tomography, blood analyzers etc.
- Radio and TV broadcasting and receiving installations,
- Communications equipments
- Research and Materials testing laboratories
- Signaling and transmitting units
- Telephone Installations- fixed and mobile units
Machinery Breakdown Insurance
- Machinery Breakdown insurance is an accident Insurance for Machinery, which provides cover against unforeseen and sudden physical loss or damage to the Insured machinery.
- Majority of losses in machines are usually very costly and cover for machinery makes the financial risks involved to become more manageable.
- With cover no financial reserves are kept for major repairs and repairs will be done expeditiously, allowing for resumption of production.
- The policy also makes available free technical and inspection service.
In principle all stationary, mobile and movable machinery and equipment can be insured. Insurable machinery may be new or used, provided it is in a proper operating condition and connected for use.