Contractors' All risk

Contractors All Risk Policy


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Application Form Claim Form
Any Query on this policy mail us at engineering.nia@newindia.co.in
More Industrial Policies


· Highlights· Scope· Add on covers· Who can take the policy· How to select the sum insured· How to claim· Period of Insurance


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.



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.


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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:i. faulty design ii. 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. iii. loss or damage due to gradual deterioration, atmospheric condition, rusting etc. iv. loss discovered only at the time of taking inventory. v. loss arising out of penalty for delay, non-fulfillment of terms of contract.


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Add on covers
The policy can be extended to cover the following items :-a. construction equipment like scaffolding, shuttering materials b. construction equipment like scaffolding, shuttering materials c. damage to surrounding property not forming part of the contract work. d. maintenance visit / extended maintenance cover to cover accidental loss or damage whilst carrying out any rectification during maintenance period and / or any amount incurred for rectification of such original defects or faults during construction.


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


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How to select the sum insured
The sum insured selected under section I should represent total contract value including the estimated cost of labour charges and cost of materials but excluding profit. The cost of materials supplied by the principal is to be declared separately.In case of long term contracts, there is bound to be escalation in prices. The basic policy will pay only as per the original cost and prices. However escalation clause can be opted for, under which escalation upto 50%, can be selected to take care of such increase in prices.The sum insured under section II should represent the per accident limit (the maximum legal liability that may fall on the insured as a result of an accident in the insured's site). The limit per policy period should be fixed taking into account the maximum number of such accidents which can reasonably be expected to occur.


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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 minimise 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.


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Period of Insurance
Unlike other policies where the period of insurance is one year, in this policy the period of insurance should be equivalent to the period of contract, commencing from the date of unloading of the first batch of material at the site of construction and expiring on the date of handing over of the contract work to the principal.Although it is possible to extend the policy period in case of delay in completion of contract, it is always advisable to choose a slightly longer period of insurance initially, to avoid paying the higher extension premium.

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Assurance Company Limited


Proposal and questionnaire for contractor’s
ALL RISKS INSURANCE
(The liability of the Company does not commence until this proposal has been
accepted by the Company and the premium paid)
Information given herein will be treated in strict Confidence. Put a ( ) mark wherever applicable

1. (a) Name & Address of the Principal (a) ______________________________
Trade or Business __________________________

(b) Name & Address of the Contractor (b) ____________________________
Trade or Business __________________

(c) Name & Address of the Sub-Contractor, (c) _______________________
if any. ___________________________________________
Trade or Business


THE INSURED INTERESTS

2. Whose interests are to be Insured ? Principal Contractor Sub-Contractor


3. THE CONTRACT WORKS

(a) Full description of the Contract

(b) Please give details :

(i) Building (type of construction,
number of storeys etc.)
(ii) Blasting operation
(iii) Excavation work
(iv) Pile riving
(v) Tunnelling
(vi) Dam Construction or diversion
of water
(vii) Others (Specify)

Note : A site plan of contract work may be enclosed.





4. (i) Is this a contract/Sub-contract forming part
of an over all construction project of value (i) Yes No.
exceeding Rs. 5 crores.

(ii) If yes give the name of the Project (ii)

5. (a) Will the Construction be carried out by
your own personal ? (a) Yes No.

(b) If not, by whom ? (b)

(c) Past experience of the contactor (c)


6. (a) Will any sub-contractors be taking part (a)
in the work of construction ? Yes No.

(b) If yes, what is their position as regards (b)
this insurance ?

THE CONTRACT SITE

7. (a) Location of Contract site (a)

(b) Nearest Port and/or Railway Station and (b)
distance

(Note : A complete lay out of the site may be enclosed)


8. (a) Are any Special Risks of one or more of (a)
the following involved ?

(i) Earthquake-Fire & Shock
(ii) Landslide/Rockslide/Subsidence
(iii) Flood/Inundation
(iv)Storm/Tempest/Hurricane/Typhoon/
Cyclone
(v) Collapse
(vi) Water Damage for ‘Wet’ risk i.e.
contract involving construction in
rivers, canals, lakes or sea.

(b) Distance from nearest river, lake, reservoir (b)
or sea the names and particulars to be given.

(c) Elevation of construction Site above normal (c)
river, lake reservoir or sea level.

(d) Is there any record of the construction site (d)
ever having been effected by any of the
major perils specified in (a) above.


9. Give full details regarding geological
condition including subsoil.


10. (a) Brief description of the arrangements made
for storage of construction materials and
equipments-whether in open or closed
premises.

(b) (i) Will there be a watch and ward round (i)
clock

(ii) If not, what precautions will be taken
against theft malicious damage etc. (ii)


11. THE INSURANCE
(a) Estimated construction period excluding (a).......................months
maintenance period (cover to commence
from the date of first arrival of consignment From...............to..............
materials at site, or, commencement of work
whichever is earlier).
(b) Cover required during maintenance period, (b).......................months
if any From................to................ (c)Probable date on which construction is c)
expected to be completed.

(d)Period of Insurance required (d).........................months

From.................to...............

12. (a) Have you approached any other Insurance (a) Yes No
Co. for Insurance Cover in respect of this
Proposal ?

(b) If yes, please state name of the Insurance Co. (b)


13. Has any such proposal been (a) Yes No

(a) Declined ?

(b) withdrawn ? (b) Yes No

(c) accepted subject to an increased rate or (c) Yes No
special conditions ?

14. SUM INSURED :

I. Contract Works
(Permanent & Temporary works including
all materials to incorporated therein)

(a) Contract Price Rs.

(b)Materials or Items supplied by the Principal Rs.

(c)Any additional items not including in (a) & Rs.
(b) above

(d) Landed cost of imported items as at
construction site [Please specify where
included in [a] and/or (b) above]
@ Exchange Rate..... Rs.________
Total Value of contract works. Rs.________


II. Construction Plant & Machinery to be used
at the construction site (Details as per
attached sheet)

III. Clearance & Removal of Debris Rs.

IV. Insured’s own surrounding property. Rs

V. Extra charges for Express Freight (excluding) Rs.
Air Freight) overtime Sunday & Holiday
rates of wages, if required

VI. On Increased Replacement value for Item Rs. (.......%)
I (a) (b) & (d) above, if required

VII. Third Party Liability

(a) For any one accident Rs.

(b) For all Accidents during the period Rs.


15. Do you wish to opt for higher amount Yes No.
of Deductible Excess ?

If yes, whether (i) 2 times
(ii) 5 times
(iii) 10 times

I/ We the undersigned hereby declare that the above statements and particulars are true and complete and I/We declare and agree that this declaration and the answers given above shall be held to be promissory and shall be the basis of the contract between me/us and the Company.


Place.........................

Date.......................... SIGNATURE OF PROPOSER


PROHIBITION OF REBATES
The following is the copy of Section 41 of the Insurance Act 1938.
1. No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an Insurance in respect of any kind of risk relating to live or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown in the policy; nor shall any person taking out or renewing continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses of rebates of the Insurer.
2. Any person making default in complying with the provisions of this section shall be punishable with fine which may extend to five hundred rupees.
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ASSURANCE COMPANY LIMITED


The Issue of this form is not to be taken as an admission of Liability

Policy No. __________ Claim No. ___________

Notification of Loss or Damage for Contractor's All Risk Insurance

Claim No.Title of contract insured :Name(s) and address(es) of Insured(s).Location and address of Contract Site:Name of Supervising EngineerNearest Railway Station (Airport)Advisable approach route to contract Site from railway station (airport) or otherwise
1 Which items were damaged ?(a) Contract works(b) Construction plant and equipment(c) Construction machinery
2 When did the loss or damage occur?(State date and exact time)
3 How did the damage occur and what was its probable cause ?(Attach sketches, photos etc.)






4 How far had construction of the damaged item (s) progressed at the time of the occurrence of damage?
5 Give name and address of witness to the occurrence :
6 How will the damaged items be repaired.
7. Will any alterations or improvements be made to design, construction or material when repairs are carried out ?
8. What are the estimated costs for the repairs of damage to(a) Contract Works?(b) Construction plant and equipment ?(c) Construction machinery?
9 Is Third Party Liability involved ?
10. Are existing buildings or surrounding property damaged ?
11 Remarks


The undersigned Insured declares to have answered the above questions conscientiously and truthfully.

Dated ________________ this _____________________ day of ________________________20_________

Signature ________________________________________________________________________________

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