 Posted: Wed Oct 21, 2009 5:05 pm Post subject: engineering insurance types of covers |
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Advance Loss of Profits
Boiler & Pressure Plant
Civil Engineering Completed Risk
Contractor's All Risks
Contractor's Plant & Machinery
Deterioration of Stocks
Erection All Risks
Industrial All Risks
Machinery Insurance Policy
Machinery Loss of Profit
Erection All Risks Policy
Erection All Risks (EAR) policy provides coverage for Erection of mechanical and Electrical plants. Interest of Suppliers/Manufacturers, Contractors, Subcontractors can be recorded in the policy.
Scope of cover
This policy covers risks associated with storage, assembly/erection and testing of Plant and Machinery. EAR insurance provides comprehensive cover. All perils are covered unless specifically excluded. Cover incepts from the time of unloading of the first consignment at the project site and terminates on completion of testing or handing over of the project to the Principal, or the period chosen, whichever is earlier.
Sum Insured
Sum to be insured is the completely erected value of the plant and machinery inclusive of freight, custom duty and cost of erection.
Premium
Premium depends on various factors such as type, protection, experience of contractors, duration of the project, period of testing, etc.
Main Extension
Policy can be extended on payment of additional premium to cover
Escalation
Clearance and Removal of Debris
Third Party Liability
Maintenance
Damage to Owners Surrounding Property
Express Freight
Additional Customs Duty
Holiday and Overtime rates and Wages
Boilers And Pressure Plant Insurance
Coverage
Steam Generating Boilers both fixed and unfixed against the risk of Explosion or Collapse.
Extensions At Additonal Premium
Express freight
Air freight
Owners surrounding property
Third part liability
Additional custom duty
Escalation Clause
Exclusions
Loss or damage due to fire and allied perils.
War and nuclear risks.
Loss arising out of overload, experiment or test.
Gradual developing flaws, defects, cracks or partial fractures.
Failure of individual tubes.
Explosions/ Collapse due to facts, existing at the time of commencing insurance, known to the insured.
Consequential losses.
Willful Negligence.
Damage by Chemical explosion except in recovery boilers and waste heat boiler.
Electronic Equipment Insurance
Scope of cover
Cover operates when the insured property is at work or at rest or being dismantled for the purpose of cleaning/overhauling or during subsequent re-erection.
The Policy provides coverage for:
Material damage to electronic equipment (which can include systems software) due to sudden and unforeseen events, under Section I
Cost of external data media, including cost of reconstruction of data under Section II, as also increased cost of working under Section III. While Section I is compulsory, Section II and Section III are optional.
Sum Insured
Section I: New Replacement cost of the insured property including Freight, Erection cost, Customs Duty, if any.
Section II: Cost of restoring the external data media by replacing lost or damaged data media by new material and lost information.
Section III: Sum Insured should represent the hiring charges per hour for a substitute equipment for ensuring continued data processing for the period of indemnity specified, including personnel and transportation charges.
Significant Exclusions
The Policy does not cover losses / damages due to:
Wear & tear, War, wilful act or wilful negligence, Aesthetic defects and consequential loss.
Machinery Loss Of Profits (MLOP)
Introduction:
Modern machinery loss of profits insurance is a suitable means of meeting the increasing need on the part of industry for comprehensive tailor made insurance protection from the consequences of business interruption.
MLOP insurance provides cover for the actual loss of profits sustained as a result of a business interruption caused by material damage indemnifiable under machinery insurance.
Sum Insured
The sum insured is made up of the operating profit and the standing charges (fixed) in the course of twelve successive calendar months. (i.e. normally the business year)
Scope of Coverage:
Coverages are the same as under machinery breakdown insurance. If the loss is admitted under machinery insurance, MLOP will be triggered subject to availability of cover.
Premium rates are broadly determined from the following factors:
The general and the specific technical risk of the machinery to be inusred.
The moral and technical hazard relating to the user.
The effect of machinery breakdowns on the operating profit and standing charges (factor of relative importance)
The reserve facilities and spare parts available.
The possibilities of loss minimization
The general economic and political conditions.
Indemnity Period
This represents the maximum time for which an insurer is liable for the loss of profit. Generally period limit is three, six, nine or twelve months.
Time Excess
Time excess is a number of days of interruption which has to be borne by the insured in the event of loss and is based on type of machineries, business insured, relative factors, etc.
Contractors All Risks Insurance
Scope of cover
Contractors all risk Policy covers the risk of accidental physical loss or damage in respect of the contract works, during the execution of a civil project. CAR insurance provides an all risk cover. All perils are covered unless specifically excluded.
Cover incepts from the commencement of work or after unloading of first consignment at project site, whichever is earlier and terminates on handing over of works to the principal or expiry of policy, whichever is earlier.
Sum Insured
The Sum insured shall be the fully completed value of the contract works inclusive of all materials, wages, freights, and custom duty and materials or items supplied by the principal.
Premium
Premium depends on factors like type, contractors experience, duration of the project, etc.
Significant Exclusions
This Policy does not cover loss or damage due to willful misconduct, cessation of work whether total or partial, delay, damage due to faulty design, rectification of defective material and/or workmanship inventory losses etc. Policy is subject to deductible excess as stipulated in the tariff.
Main Extension
Main policy can be extended on payment of additional premium to cover
Third Party Liability.
Owners Surrounding Property.
Escalation.
Maintenance Cover.
Clearance and Removal of Debris.
Contractor's Plant and Machinery.
Machinery Breakdown Insurance
Scope of Cover
The Insurance Policy broadly covers loss due to all kinds of accidental, electrical and mechanical breakdowns due to internal and external causes. Cover is granted during the time the machinery is in operation or rest or in the process of dismantling, overhauls or during subsequent re-erection at the same premises.
Significant Exclusions
The Insurance Policy does not cover loss and/or damage from Fire and allied perils, Theft, overloading experiments, wilful acts or gross negligence, gradually developing flaws and deterioration from normal use.
Sum Insured
Value proposed for insurance should be equal to new replacement cost including Freight, Erection Cost, Customs Duty, if any.
Premium
Rate of premium depends upon the type of machinery and other factors. Discounts are offered in respect of stand-by facility, availability of spares and favourable claims experience, subject to rules laid down in the Tariff.
Excess
Policy is subject to a compulsory Excess, which depends upon the value of machinery.
Main Extensions
Air Freight
Express Freight (excluding Air Freight) Overtime & Holiday Wages
Insureds own Surrounding Property
Third Party Liability
Main exclusion:
Faulty Design
Defective material or casting
Bad workmanship
Manufacturing defects
Mechanical / electrical breakdown or derangement of erection machinery & equipment
Consequential losses
Contractors Plant And Machinery Insurance
Contactors Plant & Machinery policy covers construction equipment like cranes, excavators etc.
Scope of cover
Contactors Plant & Machinery policy covers loss or damage to the contractors property due to any cause that is accidental and external in nature.
Cover operates when the insured property is at work or at rest or being dismantled for the purpose of cleaning/overhauling or during subsequent re-erection.
Sum Insured
Sum Insured of each item of machinery shall be the present day replacement cost. Sum insured is computed from replacement cost including freight, cost of erection and custom duty, if any.
Premium
Premium depends on various factors such as type of equipment, location of operation, etc.
Main Extension
Main policy can be extended on payment of additional premium to cover:
Third Party Liability.
Clearance and Removal of Debris.
Additional Customs Duty.
Overtime, Express freight.
Owners Surrounding Property.
Main Exclusions
Electrical or mechanical breakdown
Wear and tear, rust, corrosion
Willful act or willful negligence
Loss/damage for which supplier/ manufacturer is responsible
Consequential loss
Policy s subject to deductible excess as stipulated therein
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