Contractor All risk Insurance; CAR Policy

 

Contractors All Risk Insurance – This also known as CAR Policy

There is a wide variety of potential hazards on a site where construction is under progress at site. There are few risks listed as : Theft, robbery, property destruction, and legal action are all examples.

Work completion of allocated work within the allotted period is important to contractors. Insurance service provider companies has a Contractor's All Risk Insurance Policy to protect them against various risks on the job site. Damages to people or their property, plant, machinery, or tools, whether permanent or temporary, and any liability to third parties arising out of work performed at the site, are all covered under the CAR policy

 

Where do we start?

Structures, roads, airports, flyovers, water tanks, and sewage treatment plants are all examples of civil engineering projects that fall under the purview of this policy's coverage.

Interests of contractors, subcontractors, and suppliers may be included as well.

Unless "all risk" is specifically excluded, this insurance covers physical damage caused by an accident.

Which parts aren’t paid for?

·         Loss or damage caused by wilful misuse

·         Any form of delay or inactivity

·         Damage caused by bad design

·         Repair of defective materials and/or workmanship, inventory damage etc.

·         Prescribed cut in tariff

·         Extension

·         Earthquake

·         Terrorist Activities

·         Escalation

·         Limited Maintenance Cover

·         Extended Maintenance Cover

·         Debris Clearance and Removal

·         Damage to the owner's surrounding property

·         Third Party Liability

·         Cross Liability

·         Express fares, holidays and higher rates of wages

·         Contractor's Plant and Machinery

·         Inland Transit

·         Indecent non-disclosure/breach of policy terms

·         Gradual loss

·         Vibration, removal or weakness of support

·         Loss or damage due to strike, riot and civil disturbance (SRCC)

·         Excavation work for water wells

·         Suspension of Testing

·         Fire Fighting

·         Auto increment section

·         Test Run Definition for Gas Turbine

·         Test Run Definition for Steam Turbine

·         Announcement Clause

·         Marine of Shore Works

·         Coffer Dam

·         Sum insured

 

Premium

It depends on the type of project, sum insured, duration of the project and the voluntary access option availed by the insured. If the term of the policy exceeds 12 months, the premium can be paid in instalments.

 

Cover Start date:-

When work begins or when the goods are delivered to the site after enrolling in the policy, whichever comes first, the coverage will begin and end on the dates indicated in the policy. If the Principal acquires or puts into service any portion of the Insured Contract prior to the policy termination date, the Company's liability for that portion of the contract will terminate as of that policy date.

 

Additional expenses

The policy is subject to a mandatory additional and additional cost, which depends on the type of construction work.