1. Marine cum erection policy

2. Contractor’s All Risks Insurance Policy

3. Cost Insurance and Freight

Marine cum erection policy

This is a comprehensive policy covering all physical risks which a project is exposed to, right from the warehouse of the supplier of equipments - whether imported or indigenous - to its erection, testing and commissioning at the site.
The policy comprises of 2 Sections:

The policy covers all risk of physical loss or damage of insured property other than those specifically excluded, including:-

The main exclusions are:-
a. Loss or damage due to faulty design, defective material or casting, bad      workmanship other than faults in erection. This exclusion is limited to the items immediately affected and does not apply to any consequential loss to correctly executed items.

• Cost necessary for rectification or correction of any error during erection unless resulting in physical loss or damage.

• Loss or damage due to gradual deterioration, atmospheric condition, rusting etc.

• Loss discovered only at the time of taking inventory.

• Loss arising out of penalty for delay, non-fulfillment of terms of contract.

Contractor’s All Risks Insurance Policy (CAR)

CAR is designed to cover all types of civil engineering projects like buildings, dams, flyovers, etc. It covers the interest of Principal, contactors and Subcontractors of the project. This policy broadly covers the risk of accidental physical loss or damage in respect of the contract works, during the execution of a civil project.

The Policy comprises of 2 sections:

Section I – Material damage - covering physical loss, damage or destruction of the property insured by any cause.

Section II – Third Party Liability - covering the legal liability falling on the insured contractor as a result of bodily injury or property damage belongs to a third party.

Cost, Insurance and Freight means that the seller delivers when the goods pass the ship’s rail in the port of shipment. The seller must pay the costs  and freight necessary to bring the goods to he named port of destination BUT the risk of loss of or damage to the goods, as well as any additional costs due to events occurring after the time of delivery, are transferred from the seller to the buyer.

Exclusions

1. Loss or damage due to faulty design, defective material, or casting and/or bad workmanship (linked to the items immediately affected) - are not payable.

2. Loss or damage due to willful act (or) willful negligence of the insured or of his representatives

3. Consequential loss of any kind or description, whatsoever, such as claim from penalties, losses due to delay, lack of performance, loss of contract.

4. Loss or damage due to war or warlike operations, civil commotion, requisition by order of any public   authority etc.

5. Loss or damage due to nuclear reaction, nuclear radiation or radio active contamination.