Construction All Risk
What is construction all risk insurance?
During the course of execution of project relating to construction of building and civil engineering works, certain unforeseen accidents could occur resulting in considerable financial loss to the contract works, construction / or the principals arising from damage to the contract works, construction of plant and machinery as well as Third Party Claims. The Contractors All Risks (CAR) Insurance has been designed to protect the interests of the Contractors /Principal against such losses.
Why do you need construction all risk insurance?
Construction all-risk insurance
Contractors All Risk is a comprehensive insurance cover to the client for any contingency from the moment the material is unloaded at the site of the project and continues during storage, physical construction/erection and till the test run is over and during maintenance, if covered.
Scope:
- The policy covers all kinds of electrical and mechanical breakdown resulting from the following incidents:
- Faulty material/workmanship of the machine.
- Action of centrifugal forces contributing to disruption of the rotating parts.
- Failure of lubrication due to malfunctioning of lubricating oil pumps or its breakdown.
- Malfunctioning or failure of safety devices.
- Electrical short-circuiting including electrical fire originating from failure of insulation and or over voltage or under voltage conditions.
- Abrupt and sudden stoppage of other connected machinery.
- Entry of foreign bodies into running machine.
- Inexperienced operations causing damage due to error of judgment or error in operation
How to claim:
Claim Process
- In case of any such incident which falls under the scope of the policy, the following steps should be followed:
- Please inform the insuring office by phone, letter or fax.
- Take all necessary steps to minimise the loss.
- Obtain estimate of repair from repairer of your choice.
- Submit this repair estimate and claim form to the surveyor deputed by the insurance company.
- After getting clearance from the surveyor, proceed for repairing machine or ordering for replacement as the case may be.
- Submit actual bills of repair/replacement with proof of payment to the surveyor.
Significant Special Inclusion Exclusions:
Inclusion
- Location Risks: Fire, Lighting, Theft, Burglary & Housebreaking.
- Testing and Commissioning Risks*: Failure of Safety Devices, Leakage of Electricity, Insulation failure, Short circuit, explosion.
- Act of God: Storm, Tempest, Hurricane, Flood, Inundation, Subsidence, Landslide, Rockslide, earthquake.
- Handling Risks: Impact from falling objects, Collision, Failure of Cranes or Tackles etc.
- Risk of Human Element: Carelessness, Negligence, Faults in Erection/Construction, Strike & Riot, Malicious damage, Terrorism.
- Testing Perils: Maximum value at risk.
Exclusions
- War & Allied Perils.
- Wilful act or wilful negligence of Insured/ his representatives.
- Excess in respect of each claim as stated in the policy.
- Normal wear and tear, gradual deterioration, lack of use, obsolescence, rust, etc.
- Any damages/ penalties on account of the Insured of the terms of delivery/ completion under his contract of construction.
- Nuclear & Allied Perils.
- Cessation of work.
- Losses discovered only at the time of taking an inventory.
