Presentation is loading. Please wait.

Presentation is loading. Please wait.

CAR CONTRACTORS ALL RISKS INSURANCE Rohana Alagiyage.

Similar presentations


Presentation on theme: "CAR CONTRACTORS ALL RISKS INSURANCE Rohana Alagiyage."— Presentation transcript:

1 CAR CONTRACTORS ALL RISKS INSURANCE Rohana Alagiyage

2 Part I – Basic Policy Form Part II – Standstill Insurance

3 CAR Vs EAR EAR- Erection All Risk Determining factor- Value of Erection & Installation works Less than 50%- CAR Above 50%- EAR

4 SUBJECT MATTER INSURED CAR may be taken out for all building and civil engineering projects, such as: Residential and office buildings, hospitals, schools, theatres Production facilities Production facilities Infrastructure facilities, airports Infrastructure facilities, airports Bridges, dams, tunnels and harbors (wet works) Bridges, dams, tunnels and harbors (wet works)

5 INSURED PARTIES - Jointly CAR insurance should be concluded for all parties concerned to avoid overlaps or gaps in cover: The principal (employer) &/or The principal (employer) &/or The main contractor &/or The main contractor &/or Subcontractors &/or* Subcontractors &/or* Project managers &/or Project managers &/or Suppliers, if any*. Suppliers, if any*. * Un-named

6 SCOPE OF COVER – Two Sections SECTION 1- Material Damage to: Contract works (permanent and temporary works forming part of the contract) Contract works (permanent and temporary works forming part of the contract) Removable of debris Removable of debris Professional Fees Professional Fees Free issue materials Free issue materials Construction Equipment ( Site offices, storage sheds, silos, scaffolding, utilities etc) Construction Equipment ( Site offices, storage sheds, silos, scaffolding, utilities etc) Construction machinery (earthmoving equipment, cranes, site vehicles) Construction machinery (earthmoving equipment, cranes, site vehicles) Principals existing property Principals existing property SECTION 2 - Third party liability: Bodily injury & Property Damage Bodily injury & Property Damage

7 SECTION 1- Material Damage Cover on ALL RISK basis against unforeseen and sudden physical loss or damage to the insured property from ANY cause other than those specifically excluded

8 SECTION 2 Where the Insured becomes legally liable to pay as damages consequent upon : Accidental bodily injury to third parties Accidental bodily injury to third parties Accidental loss or damages to property owned by third party. Accidental loss or damages to property owned by third party. Occurring in direct connection with construction works insured under Section 1

9 SCOPE OF COVER - Cont General Exclusions: Political risks, war or warlike operations, SRCC Political risks, war or warlike operations, SRCC Nuclear, radioactive contamination Nuclear, radioactive contamination Willful act or willful negligence of the insured or their representatives Willful act or willful negligence of the insured or their representatives Cessation of work whether total or partial Cessation of work whether total or partial

10 SCOPE OF COVER - Cont Special Exclusions to section I: Consequential loss of any kind Consequential loss of any kind Faulty design Faulty design Defective material / workmanship (faulty part only) Defective material / workmanship (faulty part only) Mechanical and/or electrical breakdown Mechanical and/or electrical breakdown Wear and tear, corrosion, gradual deterioration Wear and tear, corrosion, gradual deterioration Road vehicles, waterborne vessels and air crafts Road vehicles, waterborne vessels and air crafts Inventory losses Inventory losses

11 SCOPE OF COVER - Cont Special Exclusions to section II: Property insured or insurable under Section I Property insured or insurable under Section I Vibration, removal, weakening of support Vibration, removal, weakening of support Liability for bodily injury to employee/ workmen of insured parties Liability for bodily injury to employee/ workmen of insured parties Liability for damage to property belonging to insured parties Liability for damage to property belonging to insured parties Motor, Marine & Aviation liability Motor, Marine & Aviation liability Contractual liability Contractual liability

12 PERIOD OF COVER Contractors All Risks Insurance Works cover Maintenance period Operational covers (Fire, Allied perils, TPL) Inception date Inception date Commencement of works Commencement of works

13 PERIOD OF COVER Cover ATTACHES from the commencement of work or the commencement of work or after the insured items have been unloaded at site or after the insured items have been unloaded at site or the inception date as specified in the policy the inception date as specified in the policy Whichever is later And TERMINATES when the completed structure is taken over or the completed structure is taken over or put into service or put into service or the expiry date specified in the policy the expiry date specified in the policy Whichever is earlier

14 CALCULATION OF SUM INSURED SI must be equal to the amount stated in the building contract plus a value of any free issue material SI must be equal to the amount stated in the building contract plus a value of any free issue material Contractually, insured contractor may be required (e.g. Under FIDIC contracts) to include 15% of CV towards costs of rectification, removal of debris and professional fees Separate sums insured for: Construction machinery and construction plant and equipment (equal to NRV) Construction machinery and construction plant and equipment (equal to NRV) Existing property and clearance of debris (Loss limits) Existing property and clearance of debris (Loss limits) Third party liability – Section II (as per contact conditions) Third party liability – Section II (as per contact conditions)

15 PRINCIPLE EXTENSIONS TO BASIC CAR COVER Section I: Strike, Riot and Civil Commotion Strike, Riot and Civil Commotion Maintenance Visits Vs Extended maintenance Maintenance Visits Vs Extended maintenance Expediting Expenses Expediting Expenses Airfreight expenses Airfreight expenses Offsite Storage Offsite Storage Inland Transit Inland Transit Designers Risk Designers Risk Contracts works taken over or put into service Contracts works taken over or put into service

16 PRINCIPLE EXTENSIONS TO BASIC CAR COVER Section II: Cross Liability Cross Liability TPL cover during maintenance period TPL cover during maintenance period Vibration, removal or weakening of support Vibration, removal or weakening of support

17 PART 2


Download ppt "CAR CONTRACTORS ALL RISKS INSURANCE Rohana Alagiyage."

Similar presentations


Ads by Google