The scope of cover is like the Contractor's All Risks Insurance but specifically designed for Erection/Installation projects, where the values of the Plant/Equipment to be erected dominate the Contract Value.

This cover is offered to Contractors and Principals and their subcontractors engaged in erection activities.

The Policy comprises of 2 Sections:

Section I - Material Damage

Covers physical loss, damage or destruction of the property insured by any cause, other than those specifically excluded in the policy.

Section II - Third Party Liability

Covers the legal liability of the Insured as a result of bodily injury to third party or property damage belonging to a third party arising out of performance of the contract works and happening on or in the immediate vicinity of the site, subject to standard Exclusions specified in the Policy Wording.

(3) Contractor Plant and Machinery (CPM) Insurance

CPM Policy covers on an annual basis various types of mobile equipments like earthmovers, excavators, cranes, shovels, forklifts whilst at work, at rest or during maintenance operations at construction sites only.

The policy covers sudden, accidental, external damage to the insured machinery due to any cause other than those specifically excluded in the policy.

It is a main condition under the above insurance coverage that the sum insured shall be equal to the cost of replacement of the insured items by new ones of the same kind and capacity, including cost of freight, customs duties and dues, if any, and cost of erection.

(4) Machinery Breakdown Insurance

Machinery Breakdown Insurance covers loss or damage to fixed and/or non-mobile plant and machinery due to any unforeseen and sudden physical loss or damage to machinery insured resulting from causes such as defects in casting and material, faulty design, faults at workshop or in erection, bad workmanship, lack of skill, carelessness, shortage of water in boilers, physical explosion, tearing apart on account of centrifugal force, short circuit, or from other causes not specifically excluded.

The Policy would not cover those losses which otherwise insurable under a Fire and Perils or Property All Risks Policies.

It is a condition that Sum Insured should represent the New Replacement Values and that there shall be a satisfactory Maintenance Program throughout the period of Insurance.

(5) Loss of Profit due to Machinery Breakdown Insurance

Machinery Loss of Profits insurance provides cover for the actual loss of gross profits (i.e. net profit and standing charges) and/or increased cost of working sustained as a result of a business interruption caused by an accident indemnifiable under Machinery Insurance.

It is important to select the Indemnity Period (for a period of 3 / 6 / 12 months or more) during which the business can be restored to its pre-loss position following a loss.

For Business Interruption cover to operate it is compulsory that there be in place a Machinery Breakdown Insurance Policy.

(6) Deterioration of Stock (DOS) Insurance

The Policy provides cover against deterioration of perishable stock such as ice creams, meat, chicken, vegetables and others similar items of trade by the mechanical breakdown of the refrigerating plant.

The insured is indemnified for the damage caused to the insured stocks by deterioration arising out of any accidental damage to the refrigerating plant resulting in a rise in temperature.

Deterioration of Stock in Cold Storage insurance is designed to meet the requirements of those who want to insure their stocks against deterioration of goods in cold storage due to breakdown of refrigerating machinery provided such machinery is covered under a Machinery Insurance Policy.