IRDAI License Number: IRDAI/INT/ISNP/2022/250

Contractors' All Risk Policy

Epoch Insurance Brokers Private Ltd.
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Contractors' All Risk Policy
Introduction
Who can take this Policy?
Coverage
Add on Covers
Basis of Sum lnsured
Exclusions
Introduction

"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 instalments with the first instalment being higher by 5% and the last instalment to be paid 6 months before expiry of the policy.                 

Who can take this Policy?

The policy can be taken by the principal contractor or sub-contractor, jointly or separately.

Coverage

The policy comprises two 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.

Add on Covers

The policy can be extended to cover the following items :

  • Provision for escalation
  • Clearance And Removal Of Debris
  • Additional Rate For Express Freight (Air Freight Excluded) Holiday And Overtime Rates Of the Wages
  • Additional Rate For Air Freight Only
  • Additional Custom Duty
  • Construction Machinery Plants And Equipment’s
  • Loss Due To Breakage Of Glass
  • Storage Rate At Fabricators Premises/Workshop
  • Maintenance Visits and Extended Maintenance Cover

Basis of Sum lnsured

The Sum Insured under CAR Policy is total cost of Construction, Labour Charges, cost of erection if any and Profit.

Exclusions

  • Faulty design
  • 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 in 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.
  • Loss or damage due to gradual deterioration, atmospheric condition, rusting etc.
  • Loss discovered only at the time of taking inventory.
  • Loss arising out of penalty for delay, non-fulfilment of terms of contract.

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Professional and Experienced Team
Professional and Experienced Team
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Customized Solutions
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Strong Relationship With Insurance Companies
Service Commitment Ontime Everytime
Service Commitment Ontime Everytime
Technological Edge
Technological Edge
Additional Services Offered
Additional Services Offered
Competitive Premium
Competitive Premium
Single Window Solution
Single Window Solution

Important Points to remember while Buying the Policy

Adequate Sum Insured - To Avoid Underinsurance

Temporary Structure should be clearly mentioned

  • Almost in every project the requirement of temporary structure is there and in civil work the temporary structure have a vital part. It is the most important aspect to see at the time of taking the policy to clearly mentioned temporary structure and it's sum insured.
Ensure that assets should be covered under the right entity/company

Total Project Sum Insured and Total Project Duration

  • Total Project Sum Insured and Total Project Duration should be clearly motioned considering the general delays in project. It would be appropriate to insure the maximum period including the projected extension period.
Risk Location/s should be properly mentioned

Premium would be charged  form day one in CAR/EAR Policies

  • Premium would be charged from the beginning of the project i.e. when first consignment reaches at project site or any work started on site or project commissioning date as per LOI/Awarded Contract.
Downloads
Proposal Form
Proposal Form  
Policy Wordings
Policy Wordings  
Claim Form
Claim Form  
Key Documents
General Claim Intimation Format
General Claim
Intimation Format
Immediate Action Client Should Take
Immediate Action Client
Should Take
Indicative General Documents
                            for Settlement of Claims
Indicative General Documents
for Settlement of Claims
Peril Based Documents Required for Settlement
Peril Based Documents Required
for Settlement

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Claim Case Study - 1

1
Situation
Situation

In a insurance policy for residential project the Sum Insured mentioned in the policy was mentioned under heads Civil Construction, Professional fees etc. but did not specify the Sum Insured for Temporary Structure separately.

2
Challenge
Challenge

Since the loss was related to a temporary structure, Surveyor declined it as it was not specifically mentioned in the policy with Sum Insured.

3
Solution
Solution

Back calculation of entire Sum Insured of the project was done, it was found that cost of temporary structure was included in the Project cost. Hence the same was approved later by the Insurance Company.

4
Advisory/Conclusion
Advisory/Conclusion

It was advised to the client that it is essential to mention Temporary structure separately with a separate Sum Insured.

Claim Case Study - 2

1
Situation
Situation

In a erection project site which had dugged a borewell, a child of 5 years fell inside the borewell.

2
Challenge
Challenge

Family of the child asked for huge compensation from the client, Client was under huge pressure due to the third party liability.

3
Solution
Solution

Third Party Liability Add on was already given in the policy and client was explained how the particular situation can trigger under the addon Third party Liability can be claimed.

4
Advisory/Conclusion
Advisory/Conclusion

Various add On available in the policy should be suggested to the client after analyzing the risk of the client.

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