CONTRACTORS ALL RISK INSURANCEPresentation
Transcript of CONTRACTORS ALL RISK INSURANCEPresentation
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CONTRACTORS ALL RISK INSURANCECONTRACTORS ALL RISK INSURANCE
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CAR is designed to protect the interests of thecontractors/principals against unforeseen
accidents which could occur resulting in
considerable financial loss, during the course, during the course
of execution of projects relating toof execution of projects relating toconstruction of buildings and civil engineeringconstruction of buildings and civil engineering
worksworks
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The CAR policy provides an allrisk cover
That means, almost any sudden
& unforeseen loss or damageoccurring during the period of
insurance on the construction
site is indemnified.
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Insurable property: dwellings, multi storeyed
buildings, ware houses, hospitals, schools,bridges etc
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CoveragesCoverages
Coverage's are divided into two sections
Section 1 - Material Damage
The policy covers the property against loss,
damage or destruction by any cause unless
until specifically excluded
Section 2 - Third Party Liability
The policy covers third party property against
loss, damage destruction by any cause
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Section ISection I Material DamageMaterial Damage
The policy covers the property of the insured against;
Fire, lightning, explosion, theft, burglary, windstorm,
flood, inundation, earthquake, land sliding, rock slidingand subsidence
Constructional Faults collapse etc
Human Error Lack of skills etc
Other Perils Malicious damage, air crash, blasting
Riot and Strike
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Section II Third Party Liability
This is an additional cover:
The term implies legal liability arising out ofproperty
damage orbodily injury suffered by Third Parties onor near the site.
The insurers will not indemnify any claims from the
employees or workmen of the contractoror theprinciple owner or any other firm connected with thecontract work or members of their families.
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Let us see an example of Third Party LiabilityLet us see an example of Third Party Liability
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ExclusionsExclusions
Excess stated in the schedule
Faults or defects which were in existence whenthe insurance was arranged and known to the
insured.
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War, riot, strike or nuclear risks
Consequential loss of any kind such as penalty
for delay, non fulfillment of terms of contract
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Period of CoverPeriod of Cover
Cover shall commence from the commencement ofwork after the unloading of the property insured at
the site, whichever is earlier. The cover expires when the completed part therefore
is taken over or put into service or the date specifiedin the policy, whichever is earliest.
In case the work is not completed within the periodspecified in the policy, then the policy can beextended.
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Check your understanding onCheck your understanding on
ExclusionsExclusions Mazda is doing a particular project
Due to some unforeseen condition, one of the
machines stops functioning and due to whichthe project gets delayed
Who will bear all the damages incurred to the
machine?
What about the cost of the delay in project?
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All the damages to the machine will be taken
care by the insurer
But the cost Mazda incurs due to delay in
project or the compensatory cost for delay in
project will not be covered by the insurer
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Claim SettlementClaim Settlement
Two types Of losses are considered before
settling a claim:
Partial Loss
Total Loss