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GARGASH INSURANCE SERVICES LLC

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Certified as Chartered Insurance Broker

Seminar Seminar OnOn

Presented by,Presented by,

Gargash Insurance Services Gargash Insurance Services May 28May 28thth 2008 2008

Contractors All Risk InsuranceContractors All Risk Insurance

ForFor

Sri Lankan Quantity Surveyors Group - Sri Lankan Quantity Surveyors Group - UAEUAE

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WELCOME WELCOME TO ALL MEMBERSTO ALL MEMBERS

OF OF SLQS UAESLQS UAE

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a. What can Gargash do for you ?b. CAR Insurancec. Other Insurances

Agenda

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What can Gargash do for you ? Review the Risk Exposures including Contractual Conditions on Insurance Suggest suitable insurance program Preparing quotations Requesting and obtaining competitive terms from bespoke insurers Submit to you with recommendations Place policies Follow up and check documentation Provide guidance in preparation of claims documents and represent position with Loss Adjusters, Insurers etc.,in the unfortunate event of a claim.

AS YOUR BROKER ABOVE SERVICE COMES FREE OF COST TO YOU

Visit our website www.gargashinsurance.com for further information

Services

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WHY INSURE ???

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TYPICAL PROJECT STAGES

Identification of Need Feasibility Study which narrows down

Size of Project Location Selection of Design/ Materials Cost Profitability Financing Etc.,

Tendering Award of Contract Construction Take over and maintenance

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THE CONTRACT

Legal Document Laying out Responsibilities Also includes Insurance Stipulation Standard Forms are generally used including Federation Internationale Des Ingenieurs Conseils (FIDIC) & Joints Contracts Tribunal (JCT)

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Contractual Conditions on Insurance

General Conditions of Contract (mainly FIDIC)4.1 Contractor responsible for acts of Sub-Contractor20.1 Care of Works – Contractors liable for loss or damage to works (excluding the Expected Risks) before Certificate of Completion is issued.20.4 Excepted Risks described i.e. Political Risks like War, Nuclear Explosion etc.21.1 Insurance of Works and Contractors Equipment22.1 Damage to Persons and Property23.1 Third Party Insurance – To be insured by Contractor24.1 Accident & injuries to Workers25.3 Remedies on Contractors failure to Insure49.1 }49.4 } Defects Liability50-1 }

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Insurance Involvement

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Typical Coverages on Projects

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Gap in cover

Overlap

Self Retention

Insured Risk

PrincipalConsultant

Contractor

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Contractors All Risk Insurance (CAR)

• Cover for civil engineering exposures• All Risk Cover generally including Third Party Liability• Project specific and Annual policies

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Project Specific CAR

• Policy arranged for insuring a specific contract/ project

Annual Policies

• A blanket policy which covers all projects falling within stated parameters during the period of 12 months.

Contractors All Risk Insurance (CAR)

Note : It may be possible to get “Run off” cover on projects which have already commenced during the 12 months but are continuing beyond the expiry of the policy.

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Who Can Be Covered

Principal/ Owner/ Employer/Client Main Contractor (s) Sub Contractor (s) Engineers/Consultants/Architects Banks Others having Insurable Interest

Insured Parties

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What Can be InsuredSection I Contract Works Plant & Machinery Principals & Surrounding Property

Section II

Third Party Liability- Accidental Injury /Death- Property Damage

Legal Costs & Expenses incurred

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CoverCover

All Risk Cover for sudden and unforeseen events including but not limited to,

Fire, Lightning, Explosion, Aircraft Flood, inundation, windstorm Earthquake, Subsidence, Landslide Collapse, Collision, Impact Theft, Burglary Consequence of bad workmanship, negligence Malicious Acts Accidental damage during construction

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Main Exclusions

General

Penalties for delay /guarantee of performance Wilful Act or Gross Negligence War, Terrorism, Nuclear Weapons etc., Consequential LossesSection I Faulty Design, Material, Workmanship Cessation of work Normal Wear & Tear, Corrosion, Gradual deterioration due to atmospheric conditions Shortages revealed at time of stock taking– Inventory Losses Damage to Works put into use or for which certificate of completion is issued.

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Main Exclusions (contd..)

Section II

Arising out of employment of a person by Insured (or under Workmen’s Compensation) Items insurable under Section I Vibration/ Withdrawal or weakening of support Liability of vehicles insurable under Motor Insurance

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COVER DURING MAINTENANCE PERIOD

Limited to loss or damage caused by the Insured in the course of operations carried out for the purpose of complying with obligations under the maintenance provisions of the contract.

LIMITED OR VISITS COVER

EXTENDED COVER In addition to the above, also includes loss or damage occurring

during the maintenance period but caused during the construction period or the construction site.

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Some of the Extensions available under CAR

Cross liability Surrounding property including Principal’s property Professional fees Debris removal Expediting expenses Transit and Offsite Storage and Fabrication 72 Hours limitation for Act of God Perils Consequences of Faulty Design, materials, workmanship Cover for vibration and weakening of support Extended Maintenance Clause including Third Party Liability Strike Riots & Civil Commotion Underground Services

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Cross Liability

Generally various parties like Principal, Contractors & Sub Contractors, all covered under the same policy.

These parties cannot be considered as Third Parties to each other

Any claim against each other not covered

If a Cross Liability extension is endorsed on the policy each insured party is considered as separate entities and will be treated as if separate policy has been issued to each.

This extension excludes damage to property who can be covered under Section I

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Estimated Contract Value should take into accountEstimated Contract Value should take into account

Section I Materials Freight Customs Duty Cost of Construction Value of construction Use of Machine Labour Temporary Works Principal’s supplied materials Reasonable cost escalations

Sum Insured

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Section II

This should be the maximum possible liability and should take into account apart from the contractual requirements. Proximity & value of neighboring properties Number of persons in vicinity Nature of site activities The minimum should be as per Contractual requirement. However, it MAY BE NOTED THAT INDEMNITY MAY BE MUCH HIGHER

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Assessment of Risk (and Premium) Based on

Type of project

Subsoil/ AOG Perils Exposures

Construction Techniques

Design Features

Period /Time schedule (Exposures Periods)

Value at Risk

Infrastructure

Past record of contractors

Parties insured

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Typical Assessment of Risk Exposure

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MORE REASONS ON WHY TO INSURE ….

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Motor Comprehensive Insurance

Professional Indemnity insurance

Group Life Insurance for members

Home Insurance

Travel Insurance


Policies to be discussed

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Cover features

Unlimited legal liability – 3rd Party Bodily Injury Third Party Property damage limit is AED 2,500,000 Geographic limits -UAE and Oman Family members and passengers are covered as a ‘third

party’. Insured and spouse personal injury cover up to AED

10,000 Agency repairs

automatically for the first 2 years of registration Up to 5 years subject to claims experience and

additional premium No excess payable for windscreen damage up to AED

2,000

Motor Comprehensive Insurance


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Cover features Hire Car (Maximum period of 7 days per accident.)

(additional premium of AED 150/- for 12 months). Personal Accident Benefit - limit Dhs.150,000/ per person.

Premium for Driver Dhs.120/-, Passengers Dhs. 30/- each Cover for Riot, Strike, Civil commotion, Flood, storm, typhoon, cyclone

or other convulsions of nature Third party liability cover for Insured whilst driving any other private motor car. Terms and conditions of the policy applies. Replacement of locks Emergency medical expenses up to AED 2,750 per person 13th Month is free if the vehicle is brand new ‘0’ kms.

Motor Comprehensive Insurance cont..


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Cover features

Personal belongings cover up to AED 2,000 24 hour accident / breakdown recovery ( @ AED 25 additional / mandatory cover) Motor trade and valet parking: whilst in the custody of

(1) A garage or similar business(2) A hotel, restaurant or similar business

New car replacement: Insurers will pay for a brand new replacement model if:

Your vehicle is written off/total loss in the first 6 months (only applies for brand new) Off road cover (4WD) : no cover whilst participating in a competitive event or race.

Motor Comprehensive Insurance cont..


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INSURED : An active/ valid member of SLQS

VEHICLES : Vehicles less than 7 years old from the date of first registration as new (other than excluded vehicles like sports, coupe, high performance vehicles

AGE : Insured/ Main driver above 25 years of age

LICENCE : At least one year valid U.A.E. license. If UAE license is new, three years driving

experience in Home country is acceptable. CLAIMS : Favourable claims record.

CRITERIA


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Professional Indemnity Insurance

Do you have to be in Jail for doing your duties?Cover: A Professional Indemnity Policy will provide indemnity against legal liability for negligent acts, errors, breach of duty or omission arising out of course of professional activities. Costs and expenses for legal proceedings incurred are also covered.

Type of Policies : Annual, Project basis

Individual Policy or Insurance for Company as a whole


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Group Life Insurance

BENEFITS COVERED:

•Death By Any Cause, •Permanent Total Disablement (Accident)•Permanent Partial Disability (Accident) •Passive War Cover

Sum Insured: To be agreed

Premium : as low as Dhs. 20* per month per AED 100,000

* Premium changes as per the age of the member

Why Leave your Loved ones in dark in your absence?


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What is covered? The Property Contents in your home Personal belongings

Plus additional benefits Tenants liability Legal liability Alternative accommodation New for old cover Unexpected events and natural calamities Cover while you're away Theft of keys Frozen food Contents in the open

Home Insurance

Household removals Optional coverage Domestic helpers Cover against loss of important documents Cover against loss of money and credit cards Accidental damage


Home away from Home. Have you taken care of it?

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Contents - Covers items within your home. Min premium – AED 250, Rate 0.4%

Personal Belongings – Covers items worldwide.

Min premium – AED 250, Rate 1.4%Buildings – Insured at replacement value to protect against natural

calamities and perils. Min Premium – AED 500, Rate 0.5% (except reclaimed

land 0.1%)Domestic Help – Cover against Death or Permanent Disablement, Accidental Medical, Repatriation.

Premium – AED 150* The above rate are indicative, can confirm only after reviewing the proposal

Premium Rating


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Travel Insurance

Cover : Personal Accident Cover Emergency Medical & Transportation Baggage & Money Personal Liability Cover Repatriation of Mortal remains

Premature return following death of Close relatives

Cancellation & Curtailment

Type of covers Individual Covers Annual


Travel with no worries…

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Special Services from Gargash Insurance Services

CLICK, PAY & GET IT DELIVERED

On Line Payment Facility through the web site of Gargash Insurance (no additional charges). No parking tensions, No traffic jams ! Free Delivery of policy documents Free claims assistance services Renewal reminders Kindly visit our website www.gargashinsurance.com for more information.

P.O. Box :33140, Sharjah. P.O. Box :33140, Sharjah. Mobile: 050-2960508 Mobile: 050-2960508

Ph : 06-5754848 Fax : 06-5754847Ph : 06-5754848 Fax : 06-5754847e-mail : e-mail : r . s u r e s h @ g a r g a s h i n s u r a n c e . c o mr . s u r e s h @ g a r g a s h i n s u r a n c e . c o m


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Some of the other classes of insurances handled by us are :-

COMMERCIAL LINES

• Fire/Allied Perils, Property Insurances• Electronic Equipment Insurance• Machinery Breakdown• Money Insurance• Contractor’s Plant and Machinery• Marine Transit• Business Interruption/ Consequential

Loss insurance • Fidelity Guarantee Insurance• General Third party Liability

insurance • Workmen’s Compensation /

Employer’s Liability Insurance• Product Liability• Group Life and Personal Accident

cover• Group Medical Insurances • Travel• Critical Illness• Keyman• Contractor’s/ Erection All Risks• Motor Fleet Insurance

SPECIAL INSURANCES

• Professional Indemnity Insurances

• Directors and Officers• Cancellation and Non-

Appearance Insurance• Surety Bonds• Terrorism Insurance• Medical Malpractices

PERSONAL LINES

• Life and Personal Accident Insurance

• Medical Insurance• Critical Illness • Pleasure Craft Insurance• Golfers cover


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Thank you

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