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Contractor All Risk Insurance

Contractor All Risk (CAR) insurance is designed to protect civil contractors financially against damage or destruction to projects they undertake that are over 50% of the total project value. The main contractor and sub-contractors can take out the policy, which can also be issued jointly with the principal. CAR is an all-risk policy, meaning it covers all hazards unless specifically excluded, such as sudden and unforeseen loss or damage during the insurance period. Coverage includes the maintenance and testing period after completion, and can be an open annual policy or for the length of the project contract. The sum insured should cover all construction costs, and escalation is allowed under the policy. Important extensions include third party liability, clearance of debris,

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2K views2 pages

Contractor All Risk Insurance

Contractor All Risk (CAR) insurance is designed to protect civil contractors financially against damage or destruction to projects they undertake that are over 50% of the total project value. The main contractor and sub-contractors can take out the policy, which can also be issued jointly with the principal. CAR is an all-risk policy, meaning it covers all hazards unless specifically excluded, such as sudden and unforeseen loss or damage during the insurance period. Coverage includes the maintenance and testing period after completion, and can be an open annual policy or for the length of the project contract. The sum insured should cover all construction costs, and escalation is allowed under the policy. Important extensions include third party liability, clearance of debris,

Uploaded by

HITESH
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

NEW PROPERTY & CASUALTY INSURANCE

CONTRACTORALLRISKINSURANCE WhatisCAR CAR is an insurance policy specially designed to protect the financial interest of principle, Civilcontractorsagainstthedamageordestructiontoprojectsundertakenbythem,whre thevalueofthecivilworkismorethan50%ofthetotalprojectvalue. Whoshouldbuy Theprinciple,maincontractorfortheentireprojectincludingthesubcontractorscantake thepolicytocovertheirinterest.Thepolicycanbeissuedinjointnameofcontractorand principal. WhatdoesCARCover This is an all risk insurance policy. This means every hazard is covered unless specifically excluded. By every hazard we mean any sudden and unforeseen loss or damage of the propertyinsured,whichoccursduringtheperiodofinsurance. o ProvidescoverforMaintenanceandTestingperiodaftercompletion(generally12months) o CPMpolicycanbeclubbedwithCAR PeriodofInsurance Theperiodofinsurancecanbe 1. OpenCARAnnualPolicywhichcanberenewedeveryyear. 2. Project Policy as per contract terms and time frame (can be more than 12 months). If the project is not completed in time, the policy can be extended to desiredlimits. DecidingSumInsured Suminsuredshouldbecompletevalueofcontractworks.Itshouldincludelandedcostof material, expenses of constructions, wages, freight, customs duties, construction costs, permanent civil engineering works etc. Escalation of Sum Insured is granted under the policy. FewImportantExtensionsAvailable 1. ThirdPartyLiability 2. CrossLiability 3. Ownerssurroundingproperty 4. Clearanceandremovalofdebris 5. Lossminimizationexpenses 6. AdditionalCustomDuty 7. Extrachargesforovertime,workonpublicholidays,expressfreight AddOnCover 1. Equipmentslikeshutteringandscaffolding 2. Damagetosurroundingpropertynotformingpartofcontractwork 3. Professionalfees 4. Designdefectcover

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[email protected] [email protected]

NEW PROPERTY & CASUALTY INSURANCE


For More Details Please Contact


[email protected] [email protected]

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