Marine cum Erection

Marine cum Erection / Storage cum Erection Policy


Download Forms (RTF Format)
Application Form Claim Form
Any Query on this policy mail us at engineering.nia@newindia.co.in
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· Highlights· Scope· Add on covers· Who can take the policy· How to select the sum insured· How to claim· Period of Insurance


This is a comprehensive policy covering all physical risks which a project is exposed to.





Highlights
This is a comprehensive policy covering all physical risks which a project is exposed to right from the warehouse of the supplier of equipments - whether imported or indigenous - to its erection, testing and commissioning at the site.In case the supplier has arranged transit insurance upto the site, a Storage cum erection policy can be issued limiting coverage to risks that the project is exposed to at the site only.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.For project value exceeding Rs.1500crs, specially designed policies are available.


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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 policy covers all risk of physical loss or damage of insured property other than those specifically excluded , including :-§ marine voyage for imports § offloading / storage at port § inland transit to site § storage, handling, erection at site § testing and commissioning at site The main exclusions are :-a. loss or damage due to faulty design, defective material or casting, bad workmanship other than faults in erection. This exclusion is limited to the items immediately affected and does not apply to any consequential loss to correctly executed items. b. cost necessary for rectification or correction of any error during erection unless resulting in physical loss or damage. c. loss or damage due to gradual deterioration, atmospheric condition, rusting etc. d. loss discovered only at the time of taking inventory. e. 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 on payment of additional premium.· clearance and removal of debris · damage to owner's surrounding property · maintenance visit / extended maintenance cover · additional customs duty · civil works · express freight · air freight · deletion of duration clause under marine


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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 not be less than the completely erected value of the property inclusive of estimated freights, customs duty, erection cost etc.In case of long term contracts, there is bound to be escalation in prices i.e.prime cost. 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 during the policy period.The sum insured shall be adjustable on completion of the erection, on the basis of actual values incurred by the insured in respect of freights, handling charges, customs dues, cost of erection etc. and premium adjusted accordingly.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. · inform fire brigade in case of fire and police authorities in case of theft. · 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
The period of insurance should not be less than the period of contract and should commence from the date of unloading of the first consignment at the site of the erection and shall continue upto the conclusion of the first test operation or test loading subject to a maximum of 4weeks from the date trial running is made and / or readiness for work is declared by the erectors. If a part of the plant or one or several machines are tested and put into the operation, the coverage under the policy for that particular part of the plant or machine will cease, whereas the coverage will continue for the remaining parts which are not yet ready.In case approval of the plant or any part thereof is not given by the concerned authorities even after expiry of 4weeks of trial running, the policy can be extended and the extra premium to be arranged beforehand.


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Assurance Company Limited


PROPOSAL AND QUESTIONNAIRE FOR ERECTION ALL RISKS/MARINE-CUM- ERECTION INSURANCE

(The Liability of the Company does not Commence until this Proposal has been accepted by the Company and premium paid) (Information given herein will be treated in strict confidence)


PUT A TICK Mark wherever applicable


1.(a) Name and Address of the Principal Trade of Business_______________
________________ ________________

(b) Name and Address of the Contractor Trade or Business ______________
_______________
_______________

(c)Name & Address of the Sub Contractor if any, Trade Business____________
______________
______________

THE INSURED INTERESTS
2. Whose interests are to be insured ? Principal Contractor Sub-contractor
THE CONTRACT WORK
3. Full description of the Plant & Machinery to be erected.
Including Capacity.
(Please attach separate sheet if necessary)
4. (i) Is this a contract/Sub-Contract forming part of an over all
erection project of value exceeding Rs. 5 crores ? (i) Yes / No
(ii) If yes give name of the Project (ii)
5. (a) Have the Plans, Designs and Materials been already tested Yes / No
in any previous erection ?
(b) Is the installations or part there of built for the fist time ? Yes / No
(c) Are you the manufacturer, importer, buyer
or contractor of the installation Manufacturer / Importer/ Buyer/ Contractor

(d)Is the property brand new or is it
second hand and used one Brand New/ Second-hand
-2-

(e) If second hand or used,State Age?

6. (a) Will the erection be carried out by your own personnel ?(a) Yes / No
(b) If not by whom ? (b)
(c) Past experience of the erectors ? (c)
_________________________________________________________________
7. (a) Will any sub-contractors be taking part in the work of (a) Yes / No
erection ?
(b) If yes, what is their position as regards insurance ? (b)
THE CONTRACT SITE
8. (a) Location of site where the Plant is to be erected ? (a) (b) Nearest Post &/or Railway station and distance ? (b)
Note : A complete lay out of the Factory and Site may be enclosed

9. (a) (i) Are any special risk of flood, fire or explosion Involved ? (a) (i) Yes No
(ii) If yes, give details. (ii)
(b) Distance from nearest river or sea-the names and (b)
particulars to be given
(c) Elevation of Erection Site above normal river or sea level (c)
(d) Is there any record of the Erection site ever having been (d) Yes / No
submerged during floods ?
THE INSURANCE
11. (a) Probable date of first shipment or despatch. (a) (b) Expected date of first arrival at site. (b)
(c) Expected date of last arrival at site (c)
(d) Probable date of commencement of erection of Plant
& machinery (d)
(e) Probable date on which erection of Plant & Machinery is (e)
expected to be completed finally.
(f) Duration of Testing Period (including in ‘g’ below) (f) ...........Month
(g) Period of insurance required including Test run
(g)......Months From............ To .............

Items to be Insured Sum Insured
12. A SECTION I Material Damage
1. (a) On landed cost of imported machinery, as at Factory Site
i.e. @ Exchange rate (Sub divided as under)
(i) Invoice cost : Rs
-3-

(ii) Freight Insurance Handling Clearing and forwarding
charges upto Factory Site Rs.
(iii) Customs duty at % Rs.
(b) On Machinery fabricated or manufactured in India
(sub divided as under)
(i) Invoice Cost including insurance, handling for transporting upto factory site. Rs.
(ii) Freight Rs.
(c) On cost of Erection, including salaries all Foreign and
Indian Technicians and Wages of all skilled and unskilled
labour employed at Factory Site during erection. Rs.
(d) On Building in which the above Plant and Machinery is
to be erected
(i) Permanent Civil Engineering Works Rs.
(ii) Temporary Works Rs.
2. Clearance and Removal of Debris. Completely Erected Value Rs.
3. Value of Surrounding Property to be Covered. Rs.
4. Extra charges for Express Freight (excluding Air Freight)
Over time, Sunday and Holiday rates of wages. Rs.
5. Construction Plant and Machinery to be used at the Project
Site Details( as per attached list) Rs.
6. Do you wish Air freight to be covered, if so, amount &
indemnity. Rs.
7. (a) On Increased replacement value (including duty on such
additional replacement value) which may have to be paid on
replacement of imported Plant and Machinery as per
Item I-(a) above Rs.
(b) On increased replacement value which may have to be
paid on replacement of indigenous Plant and Machinery as
per item I-(b) above. Rs.
2. B SECTION II-Third Party Liability
(a) for any one accident. Rs.
(b) For all accidents during the period Rs.
13. (a) Have you approached any other Insurance Co. for (a) Yes / No
insurance Cover in respect of this proposal ?
(b) If yes, please state name of the Insurance Co.
14. Has any such proposal been
(a) declined ? (a) Yes No
(b) withdrawn ? (b) Yes No
(c) accepted subject to an increase or special condition ? (c) Yes No

The following questions are to be answered if Marine/Transit Insurance Cover is required
15. (a) Are there any fragile items like Refractory materials, (a) Yes / No
Asbestos cement sheets, Porcelain materials, Glass
equipments Fire Bricks, Graphite Electrodes etc.
(b) If yes, please give their value, description and mode of
packing (where packed in cases or loose)
16. (a) Do you want cement to be covered ? (a) Yes / No
(b) If yes, give its value and mode of packing (whether
packed in gunny bags or paper bags) (b)


17. Please give particulars of voyage for imports/ transports.
18. What is the limit required
(a) per any one shipment ? (In case of imports) (a)
(b) per any one despatch ? (In case of indigenous materials) (b)
19. Please state (for Inland Transit)
(a) how the goods will be transported to site of erection ?
(a) By Rail By Steamer By Lorry By Country Craft
(b) How many Transhipments will be there ? (b)
(c) Special hazards, if any, in transporting goods from (c)
nearest Station/port to erection site
20. Do you require war & S.R.C.C. risk to be covered during Yes No
Overseas Inland transits.

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.


Date :_______________
Place :_______________
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


Marine Claim Form

The issue of this form is not to be taken as an admission of liability.


Polic No. ____________ Claim No. ___________


E R E C T I O N I N S U R A N C E

Notification of Physical Loss or Damage.

Name

Address



Question Answer
1. When did the loss or damage occur?(state date and hour)
2. State the site where the damage occurred and name and nearest Railway Station.
3. Give the details of the damage :-(a) to Erection Property(b) to property belonging to third parties (a)(b)
4. What was the cause of the damage?(e.g. Defective materials, faulty design, giving particulars of parts concerned).
5. Is any one responsible for the damage ?Is there any Possibility of recovery ?


Questions Answers
6. How will the damage be repaired ?Please state in detail whether any parts must be replaced; (Give weight and value of damaged parts.)
7. What is the estimated amount of the loss or damage ? Rs.
8. How did the damage occur ?

(This question must be answered in detail giving a sketch, wherever possible and supported by statements of witnesses)


9. Do you wish to carry out repairs yourself ?Do you wish to entrust repairs to another Firm (State name).


As soon as a loss or damage has become know, the Company at its Head Office must be notified without delay, on the present form. The Agents are not authorized to accept Notification of Loss or Damage.

The undersigned Policy - holder declares to have answered the above questions conscientiously and truthfully and he is liable for the correctness and completeness of his statements.



___________________
Signature



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