|
 |
 |
 |
HDFC Chubb Industrial Insurance |
|
 |
|
Advance Loss of Profits Insurance
The construction insurances such as EAR & CAR provide cover for physical, accidental damages during the erection of a project. What happens if the project is delayed due to such an accident and some part of revenues, that were supposed to be generated on project completion, had to be foregone due to the delay. ‘Advance Loss of Profit Insurance’ connotes a form of profit insurance, which in principle, follows the characteristics of a normal Consequential Loss Policy, but is issued in advance of the commencement of business. It offers indemnity to the insured or owner of a project for actual loss sustained, due to a delay in commissioning of the insured works.
Important Provisions:
The ALOP policy requires close monitoring on the part of the insurers. In view of the same, Insured is obliged to present the Insurers with updated progress reports at intervals stated in the Policy Schedule.
The insured is also under obligation to inform the insurers about changes in the project programme, testing procedures, alteration/modifications and any changes in the insured's interest (such as discontinuation/liquidations of business or its being placed in receivership).
Exclusions under ALOP :
Apart from the general and special exclusions to the MD Section/Policy, the following exclusions also apply to ALOP covers.
If any loss or damage is covered under Material Damage policy by way of endorsement, the delay arising therefrom will not form part of ALOP policy unless it has been specifically agreed to in writing.
Similarly, Catastrophic losses like earthquake, volcanic eruption, tsunami etc., damage to Contractors Plant and Machinery, Owners' Surrounding Property, etc are not covered under ALOP unless specifically agreed to in writing.
• Denial of Access/Egress.
• Restrictions imposed by a Public Authority in respect of reconstruction or operation.
• Shortage of Funds
• Loss of or damage to operating media, feedstock, shortage, destruction, deterioration of or damage to any materials necessary for the insured business.
• Alterations, additions, improvements, rectification of defects or faults or elimination of any deficiencies carried out after the occurrence.
• Loss or damage or items taken over or taken into use by the insured or for which cover has ceased under Material Damage Section
• Loss or damage to items taken over or taken into use by the insured or for which cover under Section I to this Policy has ceased.
• Loss of business due to causes such as suspension, lapse or cancellation of a lessee, license or order etc., which occurs after the date of actual commencement of the business.
|
| |
|
|
 |
 Top Providers |
 |
ICICI Prudential Life |
|
SBI Life Insurance |
|
Life Insurance Corp. |
|
Bajaj Allianz Insurance |
|
United India Insurance |
|
|
| |
|
|
|
