car policy explained

7/31/2019 CAR Policy Explained

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Part I Basic Policy Form

Part II Standstill Insurance


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CAR Vs EAR

EAR- Erection All Risk

Determining factor- Value of Erection &Installation works

Less than 50% - CARAbove 50% - EAR
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SUBJECT MATTER INSURED

CAR may be taken out for all buildingand civil engineering projects, such as:

Residential and office buildings, hospitals,schools, theatres

Production facilities

Infrastructure facilities, airports

Bridges, dams, tunnels and harbors (wetworks)
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INSURED PARTIES - Jointly

CAR insurance should be concluded for allparties concerned to avoid overlaps or gaps incover:

The principal (employer) &/or

The main contractor &/or

Subcontractors &/or*

Project managers &/or Suppliers, if any*.

* Un-named
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SCOPE OF COVER Two Sections

SECTION 1- Material Damage to: Contract works (permanent and temporary works

forming part of the contract)

Removable of debris Professional Fees Free issue materials

Construction Equipment ( Site offices, storagesheds, silos, scaffolding, utilities etc)

Construction machinery (earthmoving equipment,cranes, site vehicles)

Principals existing property

SECTION 2 - Third party liability: Bodily injury & Property Damage


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SECTION 1- Material Damage

Cover on ALL RISK basis againstunforeseen and sudden physical loss ordamageto the insured property from ANY

cause other than those specificallyexcluded


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SECTION 2

Where the Insured becomes legally liabletopay as damages consequent upon :

Accidental bodily injury to third parties

Accidental loss or damages to propertyowned by third party.

Occurring in direct connection with construction works insured underSection 1


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SCOPE OF COVER - Cont

General Exclusions:

Political risks, war or warlike operations,SRCC

Nuclear, radioactive contamination

Willful act or willful negligence of theinsured or their representatives

Cessation of work whether total or partial


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Special Exclusions to section I:

Consequential loss of any kind

Faulty design Defective material / workmanship (faulty part only)

Mechanical and/or electrical breakdown

Wear and tear, corrosion, gradual deterioration

Road vehicles, waterborne vessels and air crafts

Inventory losses


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Special Exclusions to section II:

Property insured or insurable under Section I

Vibration, removal, weakening of support Liability for bodily injury to employee/ workmen of

insured parties

Liability for damage to property belonging to insured

parties Motor , Marine & Aviation liability

Contractual liability


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PERIOD OF COVER

Contractors All Risks Insurance

Works cover Maintenanceperiod

Operational covers (Fire, Alliedperils, TPL)

Inception date

Commencement of works


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PERIOD OF COVER

Cover ATTACHES from

the commencement of work or

after the insured items have been unloaded at site or

the inception date as specified in the policy

Whichever is later

And TERMINATES when

the completed structure is taken over or

put into service or the expiry date specified in the policy

Whichever is earlier


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CALCULATION OF SUM INSURED

SI must be equal to the amount stated in the building contractplus a value of any free issue material

Contractually, insured contractor may be required (e.g. Under

FIDIC contracts) to include 15% of CV towards costs ofrectification, removal of debris and professional fees

Separate sums insured for:

Construction machinery and construction plant and equipment(equal to NRV)

Existing property and clearance of debris (Loss limits) Third party liability Section II (as per contact conditions)


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PRINCIPLE EXTENSIONS TO BASIC CARCOVER

Section I:

Strike, Riot and Civil Commotion

Maintenance Visits Vs Extended maintenance Expediting Expenses

Airfreight expenses

Offsite Storage

Inland Transit

Designers Risk

Contracts works taken over or put into service


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PRINCIPLE EXTENSIONS TO BASIC CARCOVER

Section II:

Cross Liability

TPL cover during maintenance period Vibration, removal or weakening of support


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PART 2

car policy explained

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