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

POLICY COVER TWO ASPECTS OF COVERAGES

SECTION I – MATERIAL DAMAGE

Policy Covers in Section-I

a) Earthquake – Fire & Shock

b) Landslide/Rockslide/Subsidence

c) Flood/Inundation

d) Storm/Tempest/Hurricane/Typhoon/Cyclone/Lightning or other atmospheric disturbances.

e) Collapse

f) Water damage for ‘wet’ risks i.e. contract involving works in rivers, canals, lakes or sea.

EXCLUSIONS TO SECTION – I

a) The first amount of the loss arising out of each and every occurrence shown as Excess in the Schedule.

b) Loss discovered only at the time of taking an inventory.

c) Normal wear and tear, gradual deterioration due to atmospheric conditions or lack of use or obsolescence or otherwise, rust, scratching of painted or polished surfaces or breakage of glass.

d) Loss or damage due to faulty design.

e) The cost of replacement, repair or rectification of defective material and/or workmanship, but this exclusion shall be limited to the items immediately affected and shall not be deemed to exclude loss of or damage to correctly executed items resulting from an accident due to such defective material and/ or workmanship.

f) The cost necessary for rectification or correction of any error during construction unless resulting in physical loss or damage.

g) 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.

h) Any damage or penalties on account of the Insured’s non-fulfillment of the terms of delivery or completion under his Contract of construction or of any obligations assumed there under or lack of performance including consequential loss of any kind or description or for any aesthetic defects or operational deficiencies.

i) Loss of or damage to vehicles licensed for general road use or water borne vessels or machinery/equipment mounted or operated or fixed on floating vessels/craft/barges or aircraft.

SECTION II – THIRD PARTY LIABILITY

POLICY COVERS IN SECTION-II

  1. Legal liability for accidental loss or damage caused to property of other persons including property held in trust by or under custody of the Insured for which he is responsible excluding any such property used in connection with construction thereon.
  2. Legal liability (liability under contract excepted) for fatal or non-fatal injury to any persons other than the Insured’s own employees or workmen or employees of the owner of the works or premises or other firms connected with any other construction work thereon, or members of the Insured’s family or of any of the aforesaid; directly consequent upon or solely due to the construction of any property described in the Schedule.

Provided that the total liability of the Company during the period of insurance under this clause shall not exceed the limits of indemnity set opposite thereto in the Schedule.

In respect of a claim for compensation to which the indemnity provided herein applies, Insurance Company will, in addition, indemnify the insured subject to the limits of sum insured against.

a) All costs and expenses of litigation recovered by any claimant from the Insured,

b) All costs and expenses incurred with the written consent of the Company.

EXCLUSIONS TO SECTION – II

  1. The Excess stated in the Schedule to be borne by the Insured in any one occurrence related to property damage.
  2. Expenditure incurred in doing or redoing or making good or repairing or replacing anything covered or coverable under Section I of this Policy.

Liability consequent upon –

  1. Bodily injury to or illness of employees or workmen of the Contractor(s) or the Principal(s) or any other firm connected with the project which or part of which is insured under Section-I, or members of their families.
  • Loss of or damage to property belonging to or held in care custody or control of the Contractor(s), the Principal(s) or any other firm connected with the project which or part of which is insured under Section-I, or an employee or workman of one of the aforesaid;
  • Any accident caused by vehicles licensed for general road use or by waterborne vessels or aircraft.
  • Any agreement by the Insured to pay any sum by way of indemnity or otherwise unless such liability would have attached also in the absence of such agreement.

EXCESS / DEDUCTIBLE: 5% of claim amount subject to minimum (AS PER SCHEDULE) Depends upon nature of work for normal and AOG/Major Perils/ Collapse claims.