Erection All Risk Insurance

Erection All Risk Insurance is also a specially designed policy to protect the interest of the contractors and principal as well as sub-contractor, Lender (Bank/Financial Institution) in respect of the erection and installation of plant and machinery. This is an All-Risk policy covering every risk, which is not specially excluded.

Coverages:

1. Fire & Lightning and chemical explosion.

2. Physical explosions.

3. Accidental damage during Erection, e.g., due to dropping, falling, lack of skill, negligence, malicious act, or human error.

4. Water damage, Flood, Storm, Landslide, Rockslide, Mudslide, Inundation, Earthquake.

5. Collapse, Collision, Impact.

6. Subsidence.

Exclusion

Under this policy, the Company will not indemnify the Insured in respect of loss, damage, or liability directly or indirectly caused by or arising out of or aggravated by -

1. War or warlike operations, civil commotion, etc. 

2. Willful act or willful negligence of the Insured or his representation.   

3. Nuclear reaction, nuclear radiation, or radioactive contamination. 

4. Loss discovered only at the time of taking an inventory. 

5. Normal wear and tear, gradual deterioration due to atmospheric conditions, lack of use, rust, Loss or damage due to faulty design, etc.

6. Loss due to cessation of work, whether total or partial. 

7. Loss to files, drawings, accounts, bills, currency, stamps, deeds, securities, cheques, or packing materials.

8. Loss or damage due to faulty design, defective material or casting bad workmanship other than faults in the erection.

9. Consequential loss of any kind or description whatsoever, including penalties, losses due to delay, lack of performance, and loss of contract.

Sum Insured

The sum insured should be the full value of contract works, including the basic cost of Plant/Machinery, Taxes, Freight Charges, Custom duty, Handling Charge, Erection Cost, etc.

Issued Date: 2004-11-17