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The New India Assurance Industrial Insurance |
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Contractors All Risk Policy
Highlights
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.
In case the policy period exceeds 12 months, the premium can be paid in quarterly installments with the first installment being more by 5% and the last installment being paid 6 months before expiry of the policy.
Scope
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.
The main exclusions under Section I for which no claim is payable, are loss or damage due to:
1. Faulty design
2. Rectification of aesthetic defects of structure not relating to any physical loss or damage to the structure due to any accident, or of material defect or of workmanship defect.
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.
3. loss or damage due to gradual deterioration, atmospheric condition, rusting etc.
4. loss discovered only at the time of taking inventory.
5. loss arising out of penalty for delay, non-fulfillment of terms of contract.
How to claim
In the event of any loss or damage giving rise to a claim under the policy, the following steps should be taken: -
• Take necessary steps to minimize the loss.
• Inform insurance company immediately.
• Extend full cooperation to the surveyor deputed by the company.
• Submit duly filled in claim form along with necessary documents to substantiate the financial loss suffered as a result of the accident.
Marine cum Erection / Storage cum Election Policy
A Marine-cum-Erection or Contractor's All Risk policy covers only physical damage to property, which, at best, covers the expenses incurred for repairing or replacing the damaged property
Scope
The Advance Loss of Profit is designed to cover:
1). Loss of Gross Profit = Net Profit + Standing Charges OR
2). Loss of Gross Earnings = Turnover-Specified Working Expenses OR
3). Fixed Operation & Management Costs
a). Debt Service Charges
b). Increased Cost of Working
c). Special Expenses e.g. penalties
The policy pays for the actual loss of gross profit incurred during the period of delay, commencing from the scheduled date of commencement of commercial operation upto the actual date of commencement of commercial operation subject to a time excess and indemnity period selected. The delay, however should have occurred due to a claim payable under marine -cum- erection policy, storage-cum -erection policy or contractor's all risk policy.
The policy does not cover delay due to:
• Inventory losses
• Delay in shipment of supplies
• Normal project schedule slippages
• Non -availability of funds for repairs/replacement to damaged items
• Cancellation of license or Govt. restrictions etc
How to select the sum insured
The sum insured should represent the Anticipated Gross Profit (i.e.Net Profit + Standing Charges) for the Indemnity Period selected. Net Profit means Business profit before taxation.
Standing Charges means fixed charges incurred even in the absence of business activity e.g. interest charges, salary & wages, Director´s fees, O&M costs, liquidated damages.
Indemnity Period should be selected keeping in mind the maximum period required for re-importing, re-erecting and/or re-testing any part of the project.
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