Contractors- All Risk Insurance (CAR)

Contractor's all risk insurance (CAR)

Policy Details:

1. India is a developing country and huge number of construction projects related to residential or commercial buildings, Industrial units, Roads, Power plants or dams are being carried out

2. We all are aware of the risk or hazards like fire, flood or accidental damage involved during the construction period which can damage the construction material, machinery or constructed portion

3. It is a misconception among people that building or Machinery can be insured only after completion of construction or Installation.

4. NIC's Contractor's all risk policy protects the huge investment of Principal/ Contractors in these projects by paying for such kind of loss during construction.

Highlights :

1. This policy offers comprehensive cover by covering risks which may arise during construction period. It gives financial protection to the civil engineering contracts in the event of any accident.

2. The Contractor's All Risk policy is for civil constructions works like residential or commercial buildings, Factory sheds, dams, Roads & bridges, Canals, irrigation projects, etc.

3. The policy also covers legal liability to third parties arising as a result of the project activity during the construction period

4. The CAR policy can be availed for the entire project period starting from arrival of material at site and till project completion Premium can be paid in instalments for projects of duration more than 12 months

Covered :

All Risks (with certain exceptions) involved during storage, assembly, erection/Construction against:-

1. fire, lightning, explosion/implosion, aircraft damage,
2. flood, storm, landslide,
3. theft, burglary, RSMD,
4. Negligence, lack of skill, collision, impact, dropping, etc.

By paying additional premium policy can be extended to cover additional perils/expenses which are mentioned below:

1. Earthquake
2. Terrorism
3. Clearance and removal of debris
4. Third party liability cover
5. Surrounding property of the insured
6. Escalation provision
7. Express freight, holiday and overtime rates of the wages
8. Air freight
9. Additional custom duty
10. Construction machinery plants and equipment
11. Maintenance visits cover and extended maintenance cover

Exclusions :

1. War and nuclear perils

2. Normal wear and tear, gradual deterioration etc.

3. Damage due to faulty design, defective materials, bad workmanship, etc.

4. Consequential loss like loss of revenue, penalty for delay etc.

5. Inventory losses

6. Willful negligence,

7. loss of or damage to vehicles licensed for general road use or water borne vessels

8. loss of or damage to files, drawings, accounts, bills, currency, stamps, deeds, evidence of debt, notes, securities cheques, packing materials such as cases, boxes, crates