This policy is to
offer comprehensive and adequate
insurance protections against all risks
involved in the erections of machinery
and plant as well as steel structures of
any kind of the . This policy has become
an indispensable part of the
progress in all industrialized countries. Large projects such as the erections of thermal power station,
Fertilizer plants oil refineries of the installations of complete factory facilities, bring about
so much many risks for both the
contractors and the principles that it is so only possible
to bear the risks in an economical manner by the taking out an EAR
insurance. SCOPE OF COVER: This is a comprehensive insurance cover that is
available to the client in respect of any sort of the contingency from the moment the materials are unloaded on the site of the project works and the continuous during storage, physical erections and till the test
run is the over which covers all physical losses or damage as under:
LOCATION RISK: Fire, Lightning , Theft
and Burglary. (2). HANDLING RISKS: Impact from falling
objects , collision, failure of chanes or tackles. (3). OPERATIONAL RISKS: Failure
of safety devices, leakage of the
electricity insulations failure short
circuit , tearing apart on the account
centrifugal forces, explosion.
(4). RISKS OF HUMAN ELEMENT:
Carelessness, Negligence, defaults in
erections Malicious damage, strike and riots.,
(5). ACTS OF GOD: Storm,
Tempest,. Hurricane, Flood,
Earthquake., UM INSURED; The sum insured is the value of the machinery plant which has to be replaced at
the time and condition it was a just
prior to the accident. The sum insured should represent totally erected value of the property as at the site
in the questions and hence comprises
numerous elements besides the basic cost of materials imported and
indigeneously procured. The sum insured for a project is arrived at as given below: Prime cost of
machinery Bare cost, Freight Duties
Excise paid that the point of origin by the if any, + Super visions cost that
the at the point of destination if any +
Super vision cost of the point of loading
if any + customs excise duty at
the point of discharge if any+
warehouses charges if any + clearing and forwarding expenses
+ Fabrication charges+ Handling
charges+ Erections super visions
and other incidents and other
overheads. It is to be noted that various
above expenses are reimbursed at
the time of the claim to the extent they are included in the sum insured.
BASIS OF INDEMNITY: In the event of the loss or damage , the insured will be
indemnity for the expenses
necessary to restore the damage machinery or plant to its
conditions immediately before the
occurrence of the damage. Partial repair costs are met if the same be part of
the final repairs and do not increases total repair costs, of the cost of repairs to be in excess of the value of
the item before the loss, the settlement
will be as for total loss. The cost of
the any improvement and modification
will not be any event be the insurer’s
liability and conditions of average will apply. On payments
of a claim the insured shall be reinstate the sum insured by payments of a
pro-rata premium from date of loss to expiry
date. Extra charges towards
overtime, night works, work on a holidays payable, if the same was initially
agreed upon the and requisite additional
premium paid there of. Express freight does not include air freight . It refers
only to the faster surface freight.
Express freight does not include air
freight. It refers only to faster freight. Risks with totally erected value
exceeding Rs. 50 crores should be referred to TAC for rating
through Regional office/ Head office.
The rates are all tariffed according to the type of risk. Any deviation
adhering to the terms and rates will be
construed as a breach of tariff. It is
hence, necessary that in the case of the
doubt, , references should be made to
Regional Office/ Head office. Even where
provisional rating the is involved , it should be as per regulations
