A construction site is susceptible to all sorts of accidents.
Losses can mount from pilferage, theft, damage, legal claims and more. This policy provides
coverage for
property damage and third-party injury or damage claims, the two primary types of risks on
construction projects.
Damage to property can include improper construction of structures, damage that happens
during a renovation, damage
to temporary work erected on-site and physical loss or damage to the contract works,
construction plant & equipment or
machinery. CAR insurance coverage is common for such construction projects as buildings,
water tanks,
sewage treatment plans, flyovers and airports.
Typically, both contractor and employer jointly take out CAR insurance policies, with other
parties such as financing companies having the option of being named to the policy. Because
multiple
parties are included in the policy, each can retain the right to file a claim against the
insurer, although
all parties have the duty
of informing the insurer of any injuries and damages that may result in a claim.
Risks often covered under a CAR policy include Fire perils, flood, earthquakes,
water damage and mold,
construction faults and negligence. They typically do not cover normal wear
and tear, willful negligence or poor workmanship.
- Additional custom duty
- Air freight
- Damage to surrounding property
- Debris removal
- Escalation
- Loss due to breakage of glass
- Maintenance visits
- Provision for escalation
- Terrorism
- Architect and Surveyor Fees
- Third-party liability
Insured’s legal liability for compensation in respect of personal injury
or property
damage to third parties arising from the contract works is covered
A maintenance period is usually incorporated in most CAR policies and it
is normal for the policy
to cover this period in addition to the period of construction. The maintenance cover is for
loss or
damage to the works occurring during the maintenance period stipulated
in the provisions of the maintenance clauses in the contract relating to the works.
The cover begins from the start except for items of Construction Plant and the like.
These are generally covered only after they have been unloaded at the site. The cover
terminates when the completed project
is handed over or any completed part is taken over or put into service.
EAR policies are designed to cover the risk of loss arising out of the
erection and installation of machinery,
plant and steel structures, including physical damage to the contract works, equipment and
machinery,
and liability for third-party bodily injury (BI) or property damage (PD) arising out of
these operations.
Examples of the types of projects for which EAR coverage is typically purchased include
power plants,
manufacturing and fabrication facilities, water and wastewater treatment facilities, and
telecommunications centers
(particularly where the erection of signal towers is involved). Some insurers combine EAR
and contractors all risks (CAR)
coverages into one form.
Although these terms are sometimes used interchangeably, there are some substantive
differences.
- Fire, explosion, lightning, aircraft damage
- Earthquake, Flood, storm, cyclone, landslide and allied perils
- Riot, strike, malicious act
- Faults in erections
- Faulty workmanship,
- Negligence, lack of skill, lack of experience
- Excess pressure or vacuum, destruction due to centrifugal force
- Burglary and theft
- Human errors, act of negligence
- Electrical and mechanical breakdown
- Short circuiting, arcing, excess voltage
- Collapse, damage due to foreign objects, impact damages
- Any other sudden, unforeseen, accidental damages not explicitly excluded
- Removal of Debris
- Surrounding property
- Errors and Omissions
- Loss minimization expenses
- Professional Fees
- Automatic Reinstatement of Sum Insured
- Expediting Expenses
- Prevention of Access
- Offsite storage and fabrication
- Removal to place of safety
- Time Adjustment (72 Hours clause)
- Waiver of subrogation
- Free issue materials
- Extended Maintenance etc.
Industrial All Risk Insurance is an exclusion based package policy
without any named perils.
In this policy specific exclusions are incorporated with reference to the operating perils
and properties.
That means whatever is not excluded, is covered under this Insurance.
All industrial risks (other than risks ratable under Petrochemical
Tariff)
having overall Sum Insured of Rs.100 crores and above in one or more locations in India
shall be eligible for Industrial All Risks Policy.
- All Risk cover including Standard Fire & special perils viz Lightning, Explosion,
Implosion,
- Aircraft damage, impact damage, Riot strike & malicious damage, Storm , tempest, flood,
inundation, cyclone, typhoon, hurricane, tornado, Subsidence and landslide including
rockslide,
eakage from automatic sprinkler Installation, Bursting, etc
- Theft & Burglary
- Machinery Breakdown ‐ Mechanical and Electrical Breakdown
- Boiler explosion ‐ Explosion and implosion of boiler and pressure plants, Explosion due
to smelt water reaction for waste heat boilers,
Flue gas explosion.
- Electronic equipment insurance – Breakdown and all risk coverage of electronic
equipment.
- Transit risk and loading – unloading risks within the premises
- Loss of Profit due to Fire and Allied Perils
Loss of Profit or business interruption due to machinery breakdown
Under insurance up to 15% is waived
Reduced flat rate is applicable for Machinery breakdown cover
Transit risk within the premises is covered
Burglary & other accidental damage cover
No depreciation is deducted
Breakdown of Machinery, Electronic Equipments & explosion risk of Boiler are covered.
So there is no need for separate MB, EEI & BPP policy (all insurance companies do not cover
EEI)
In today’s volatile world, after the occurence of events such as the
Mumbai
Taj Mahal palace attack, 2013 Hyderabad Blast and other terrorist strikes around the world,
global
terrorism coverage is essential. This product offers a global solution to the risk of damage
caused by
act of terrorism.
A terrorist attack can occur anytime, anywhere, with devastating
consequences impacting not
only those directly targeted but also those operating within the surrounding community. With
the right protection, these damages
an be limited and the security of having an insurance cover is comforting.
Businesses do not need to be specifically targeted to suffer the impact
of a terrorist attack.
ISIS continues to threaten India as primary target. Recent terrorist
attacks in the United States, Canada, France, Brussels and the United Kingdom illustrate ]
the ongoing risk, harm and frequency of global terrorism.
- Covers worldwide property damage – Commercial and Residential resulting from
terrorism and sabotage,
including the risk of business interruption;
- The coverage also includes debris removal costs.
- Covers ingress/egress and service i
- This coverage is provided either on full value or first loss basis as requested by
the client
- Material Damage – On all real & personal property of the insured or in insured’s
care or custody or control
or held by Insured in trust or commission for which they are responsible whilst
situated at the specified locations
including but not limited to building, contents, equipment, machinery, furniture,
fixtures,
fittings, plinth & foundation, road, leasehold improvements, stock, office c
- Gross Profit / Rental / Revenue insured.
- Loss due to denial of access by civil or military order.
- Contingent business interruption.
- Looting following an insured event.
- Loss of valuable papers and records.
- Increased cost of construction.
- Professional fees.
is a
weather index based product to cover loss in production
- Due to low/high wind speed in windmill
- Lack of solar irradiation affecting electricity generated of a solar power plant.
This protection supports the performance of the project at the system level to help sustain
its intended revenue stream
once that project becomes operational .
This policy is designed to cover anything from utility-scale solar farms and green fields
across India,
to portfolios of rooftop installations for commercial and residential builds.
- Covers risks that are not related to physical damage, such as the sun not shining,
insufficient wind speed and the
impact that would have on the performance of the project.
- Amount by which the actual energy yield for the applicable energy shortfall policy
year is less than
the insured energy yield projection for that same period times the agreed rate.
- Protects against a system being installed in a way that was not intended in the
design phase and the impact that has on the revenue models.
- Covers errors in the calculations of the projected yields that were created for
projects before they become operational.
- If the insured energy installation is solar, actual solar radiation that is less
than assumed in the target production calculation.
The insurance payout is triggered if the actual Index is below the declared expected Index.
If the insured event triggers,
the indemnity is paid as a function of the solar irradiation/ wind speed.
This policy protects your business from financial losses, includes
legal costs and compensations arising from property damage or bodily injury caused to any
third party due to –
- The services rendered
- In-course of business operations
- Negligence of any employee
- Includes, non-professional neligent acts: Up to the precribed limits fore-mentioned
by the policy
- While visiting your business, a customer trips on loose flooring and is injured.
- An employee in your painting or construction business accidentally leaves water
running, causing substantial damage to a customer’s home.
- A class action lawsuit is filed against your business, alleging advertisements
constituted misleading information.
This cover provides protection against losses from the legal liability
for bodily injury or property damage to others arising out of non-professional negligent
acts or for liability arising out of their premises or business operations.
Mental injuries and emotional distress can be considered bodily injuries, even in the
absence of physical bodily harm.
Personal and advertising injury protects an insured against liability
arising out of offences, such as:
- Libel
- Slander
- False arrest
- Infringing on another’s copyright
- Malicious prosecution
- Use of another’s advertising idea
- Wrongful eviction, entry or invasion of privacy
Medical payments includes limited coverage for injuries sustained by a
non-employee caused due to an accident that takes place on the insured’s premises or when
exposed to the insured’s business operations. CGL pays for all necessary
and reasonable medical, surgical, ambulance, hospital, professional nursing and funeral
expenses for a person injured or killed in an accident taking place at the insured’s
premises or arising from business operations.
" A ‘Claims Made Policy’ is where the claim would occur and has to be
lodged within the policy period. This is usually given in conventional CGL policy & would
only become relevant when the policy is not renewed subsequently. "
" Occurrence Based Policy is relevant to CGL Policy where the claims,
which have taken place during the currency of the policy, can be lodged even after the
expiry of the policy period, even if the policy is not renewed "
It is a compensation payable under a scheme set out in the workmen
Compensation Act of India, monitored by the Ministry of Labor. The policy covers statutory
liability of an employer for the death of or bodily injuries or occupational
diseases sustained by workmen in the insured’s immediate service and during the course of
employment. Costs or expenses incurred by the insured employer, with the consent of the
company, to defend any claims are paid in addition
to the above.
The policy covers legal liability of an employer under
- Workmen Compensation Act 1923 and subsequent amendments of the said Act prior to the
date of issue of the policy
- Indian Fatal Accidents Act 1855, and subsequent amendments of the said Act prior to
the date of issue of the policy
- Common Law
- Any employer, whether as principal or contractor, engaging “workmen” as defined in
the workmen compensation Act
- Any Employer of employees who do not qualify as “workmen” but share an
employee-employer relationship
- Death
- Permanent Total Disability
- Permanent Partial Disability
- Legal cost and Expenses incurred with the companies’ consent
The amount of compensation payable is calculated as per the WC Act using
factors like age of the individual, the nature of disability and the last drawn salary.
Premium rates are based on the nature of duties performed and on the
basis of annual estimated wages disbursed to the workmen,
This insurance does not cover any interest and/or penalty which may be
imposed on account of failure to comply with the statutory requirements laid out.
This policy protects your business from financial losses, includes
legal costs and compensations arising from property damage or bodily injury caused to any
third party due to –
- The services rendered
- In-course of business operations
- Negligence of any employee
- Includes, non-professional neligent acts: Up to the precribed limits fore-mentioned
by the policy
- While visiting your business, a customer trips on loose flooring and is injured.
- An employee in your painting or construction business accidentally leaves water
running, causing substantial damage to a customer’s home.
- A class action lawsuit is filed against your business, alleging advertisements
constituted misleading information.
This cover provides protection against losses from the legal liability
for bodily injury or property damage to others arising out of non-professional negligent
acts or for liability arising out of their premises or business operations.
Mental injuries and emotional distress can be considered bodily injuries, even in the
absence of physical bodily harm.
Personal and advertising injury protects an insured against liability
arising out of offences, such as:
- Libel
- Slander
- False arrest
- Infringing on another’s copyright
- Malicious prosecution
- Use of another’s advertising idea
- Wrongful eviction, entry or invasion of privacy
Medical payments includes limited coverage for injuries sustained by a
non-employee caused due to an accident that takes place on the insured’s premises or when
exposed to the insured’s business operations. CGL pays for all necessary
and reasonable medical, surgical, ambulance, hospital, professional nursing and funeral
expenses for a person injured or killed in an accident taking place at the insured’s
premises or arising from business operations.
" A ‘Claims Made Policy’ is where the claim would occur and has to be
lodged within the policy period. This is usually given in conventional CGL policy & would
only become relevant when the policy is not renewed subsequently. "
" Occurrence Based Policy is relevant to CGL Policy where the claims,
which have taken place during the currency of the policy, can be lodged even after the
expiry of the policy period, even if the policy is not renewed "
Marine insurance offers coverage in case of damage or loss of cargo, ships,
terminals and any transport by which any property is acquired,
transferred or held between the point of origin and its destination. It is an integral part
of National / International Trade and is required by Importers,
Exporters, Manufacturers, Distributors, Retailers,
Wholesalers and others engaged in the movement of goods by sea, air, road, rail and post.
Marine insurance covers property exposed either onshore/ offshore, marine
casualty, marine liability and hull damages.
- Export/Import – When exporting or importing goods the Institute Cargo Clause (ICC)
A, B, or C of Institute of London Underwriters is applicable.
1. ICC (A) is all risk cover.
2. ICC (B) is broader cover excluding Malicious Damage, Theft/ Pilferage & War
Risks.
3. ICC (C) covers all risks covered in ICC (B) except for Loss overboard during
loading or discharge, washing overboard, seawater entering ship, river water
entering ship.
- Inland – Goods transported to anyplace within India by Rail/ Road are subjected to
Inland Transit Clause (ITC) A, B, C.
1. ITC (A) is an all risk coverage barring exclusions.
2. ITC (B) covers loss from fire, lightning, breakage of bridges, derailment,
accident, etc. barring exclusions.
3. ITC (C) covers loss due to fire and lightning only.
| Risk |
Institute Cargo Clauses |
| ( Proximate Cause) |
A |
B |
C |
| Stranding , Grounding, Sinking or Capsizing |
Yes |
Yes |
Yes |
| Overturning or Derailment of Land Conveyance |
Yes |
Yes |
Yes |
| Collision of Ship or Craft with another Ship or Craft |
Yes |
Yes |
Yes |
| Contact of Ship, Craft or Conveyance with anything other than |
Yes |
Yes |
Yes |
| Ship or Craft (excludes Water but not Ice) |
Yes |
Yes |
Yes |
| Discharge of Cargo at Port of Distress |
Yes |
Yes |
Yes |
| Loss overboard during Loading/Discharge (total loss only). |
Yes |
Yes |
No |
| Fire or Explosion |
Yes |
Yes |
Yes |
| Malicious Damage |
Yes |
No* |
No* |
| Theft/ Pilferage |
Yes |
No* |
No* |
| General Average Sacrifice |
Yes |
Yes |
Yes |
| Jettison |
Yes |
Yes |
Yes |
| Washing Overboard (deck cargo) |
Yes |
Yes |
No* |
| War Risks |
No* |
No* |
No* |
| Seawater entering Ship, Craft, Hold, |
Yes |
Yes |
No* |
| Conveyance Container Lift Van or Place of Storage |
Yes |
Yes |
No* |
| River or Lake Water entering same |
Yes |
Yes |
No* |
