This policy is specially designed to provide financial protection to Civil Engineering Contractors in the event of an accident to civil engineering works under construction.
Coverage
CAR insurance is an all risk insurance policy that covers loss or damage to civil work during course of construction by any cause not excluded under the policy.
The Policy covers damage due to:
- Fire & allied perils
- Natural calamities like storm, flood, earthquake, rock sliding, and land sliding
- Riot & strike
- Theft & burglary
- Accidental damage, etc.
The policy can be taken by the principal, contractor or subcontractor, jointly or separately.
The policy comprises of 2 Sections
Section I–Material Damage – Covers physical loss, damage or destruction of the insured property by any cause other than those specifically excluded in the policy.
Section II–Third Party Liability – Covers the legal liability falling on the insured contractor as a result of bodily injury or property damage belonging to a third party.
Sum Insured
Section I – Material Damage
a. Total contract price including the estimated cost of labor charges and cost of materials.
b. Materials or items supplied by the principal.
c. Any additional items not included in (a) and (b) above.
Section II – Third Party Liability
The sum insured under section II should represent the per accident limit (the maximum legal liability that may fall on the insured as a result of an accident in the insured’s site). The limit per policy period should be fixed, taking into account the maximum number of such accidents that can reasonably be expected to occur
Important Exclusions under Section I
- Excess – The first amount of each and every loss to be borne by the insured.
- Loss or damage due to faulty design.
- Wilful act or wilful negligence of insured.
- Loss of or damage to files, drawings, accounts, bills, currency, stamps, deeds, evidence of debt, notes, securities, checks, packing materials.
Period of Insurance
Period of insurance should be equivalent to the period of contract, commencing from the date of unloading of the first batch of material at the construction site and expiring on the date of handing over of the contract work to the principal, or put to use, or expiry of the policy, whichever is earlier. In case of delay in completion of work, the policy can be extended by paying an additional premium.
For any insurance solutions, please contact Beacon Insurance Pvt Ltd at https://www.beacon.co.in/
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