contractors all risk insurancepresentation

8/9/2019 CONTRACTORS ALL RISK INSURANCEPresentation

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CONTRACTORS ALL RISK INSURANCECONTRACTORS ALL RISK INSURANCE


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CAR is designed to protect the interests of thecontractors/principals against unforeseen

accidents which could occur resulting in

considerable financial loss, during the course, during the course

of execution of projects relating toof execution of projects relating toconstruction of buildings and civil engineeringconstruction of buildings and civil engineering

worksworks


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The CAR policy provides an allrisk cover

That means, almost any sudden

& unforeseen loss or damageoccurring during the period of

insurance on the construction

site is indemnified.


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Insurable property: dwellings, multi storeyed

buildings, ware houses, hospitals, schools,bridges etc


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CoveragesCoverages

Coverage's are divided into two sections

Section 1 - Material Damage

The policy covers the property against loss,

damage or destruction by any cause unless

until specifically excluded

Section 2 - Third Party Liability

The policy covers third party property against

loss, damage destruction by any cause


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Section ISection I Material DamageMaterial Damage

The policy covers the property of the insured against;

Fire, lightning, explosion, theft, burglary, windstorm,

flood, inundation, earthquake, land sliding, rock slidingand subsidence

Constructional Faults collapse etc

Human Error Lack of skills etc

Other Perils Malicious damage, air crash, blasting

Riot and Strike


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Section II Third Party Liability

This is an additional cover:

The term implies legal liability arising out ofproperty

damage orbodily injury suffered by Third Parties onor near the site.

The insurers will not indemnify any claims from the

employees or workmen of the contractoror theprinciple owner or any other firm connected with thecontract work or members of their families.


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Let us see an example of Third Party LiabilityLet us see an example of Third Party Liability


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ExclusionsExclusions

Excess stated in the schedule

Faults or defects which were in existence whenthe insurance was arranged and known to the

insured.


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War, riot, strike or nuclear risks

Consequential loss of any kind such as penalty

for delay, non fulfillment of terms of contract


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Period of CoverPeriod of Cover

Cover shall commence from the commencement ofwork after the unloading of the property insured at

the site, whichever is earlier. The cover expires when the completed part therefore

is taken over or put into service or the date specifiedin the policy, whichever is earliest.

In case the work is not completed within the periodspecified in the policy, then the policy can beextended.


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Check your understanding onCheck your understanding on

ExclusionsExclusions Mazda is doing a particular project

Due to some unforeseen condition, one of the

machines stops functioning and due to whichthe project gets delayed

Who will bear all the damages incurred to the

machine?

What about the cost of the delay in project?


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All the damages to the machine will be taken

care by the insurer

But the cost Mazda incurs due to delay in

project or the compensatory cost for delay in

project will not be covered by the insurer


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Claim SettlementClaim Settlement

Two types Of losses are considered before

settling a claim:

Partial Loss

Total Loss

contractors all risk insurancepresentation

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