Contractor's All Risk (CAR)
The Contractor’s All Risk policy offers comprehensive cover by covering risks which may arise during construction period. It offers covers for public liability, own plant, contract works, hired-in plant and employee’s tools and gives financial protection to the civil engineering contracts in the event of any accident
Benefits
The key benefits of this policy are as follows
- Material Damage:
Under this loss, damage, or destruction of property incurred due to any cause other than those excluded in policy are covered. Most of the policies pay for the losses or damage up to a certain amount that does not exceed the sum mentioned against every item and does not exceed the total sum insured - Third-Party Liability coverages:
- Legal liability related to accidental damage or loss caused to the property of third-person
- Legal liability for non-fatal and fatal injuries caused to third-person (other than the own employees or workers of the insured) due to the construction of the property
Coverage
Perils that are covered under contractors all-risk policy are
- Fire and allied perils
- Collapse
- Earthquake, shock, and fire
- Faults in construction
- Storm, flood, cyclone, and tempest.
- Negligence and human errors
- Water damage
Add-On Covers
Cover can be extended up to a limit chosen by the insured on the following, on payment of additional premium:
- Express freight, Holiday and Overtime
- Airfreight
- Additional customs duty
- Cost of Clearance & Removal of debris
- Earthquake
- Escalation
- Storage at Fabricator’s Premises/ Workshop
- Construction equipment like scaffolding, shuttering materials
- Contractor’s plant & machinery
- Cross liability
- Third-party liability
- Maintenance visits cover and Extended Maintenance cover to cover accidental loss or damage whilst carrying out any rectification during the maintenance period and/or any amount incurred for rectification of such original defects or faults during construction
- Owners surrounding property or damage to surrounding property not forming part of the contract work.
- Terrorism.
Exclusions
The following perils are not covered:
- War and nuclear perils
- Normal wear and tear, gradual deterioration etc.
- Damage due to faulty design, defective materials, bad workmanship, etc.
- Consequential loss like loss of revenue, penalty for delay etc.
- Inventory losses
- Wilful negligence
- loss of or damage to vehicles licensed for general road use or waterborne vessel
- loss of or damage to files, drawings, accounts, bills, currency, stamps, deeds, evidence of debt, notes, securities cheques, packing materials such as cases, boxes, crates
Claims Process
Cargo insurance is a marine insurance policy that provides coverage for physical damage to cargo during transit. Depending on the chosen coverage, some policies offer theft protection or coverage for other forms of losses besides physical damage.
- A surveyor will assess the damage or loss mentioned
- All the proofs and witnesses need to be submitted along with the duly filled in claim form
- If the provider finds the case fit, it would approve the claim, else it would reject it
- In case you are not satisfied with the case, you can approach the court of law
Following documents are required to make a claim:
- Policy Document
- Claim Bill
- Commercial Invoice
- Monetary Claim on Transporter
- Letter of Subrogation
- Damage Certificate
Keep the damaged property under the safe custody until advised by the surveyor / insurer regarding its disposal.
