11

ERECTION ALL RISK INSURANCEERECTION ALL RISK INSURANCE

22

The liability of the Company commences from the moment the materials are unloaded on the site of the project/works and continues during storage, Physical erection and till the test run is over which covers all physical loss/damage

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Risks CoveredRisks Covered

Location Risk : Fire, lightening, theft and Burglary Operational Risk : Failure of safety device and

Insulations, leakage of electricity, short circuit, tearing apart on account of centrifugal forces

Handling Risk : Impact from falling objects, collision, Acts Of God : Storm, tempest, hurricane, flood,

inundation, landslides / road slides Acts of Human element : Carelessness, malicious

damages, strikes and riots

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ExclusionsExclusions

Willful act, gross negligence

Manufacturing defects/Pre existing damages

Nuclear reaction nuclear radiation or radioactive contamination

War like operations / civil commotion

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Understanding ExclusionsUnderstanding Exclusions

The insulation tube in the machinery was fit wrongly in the machine when the machine arrived from the warehouse .

Will it be covered?

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No. It will not be covered as it comes under the exclusion of “manufacturing defect”