This policy offers comprehensive cover by covering risks which may arise during erection or testing period. It gives financial protection to the engineering contracts in the event of any accident. The Erection All Risk policy is for erection and testing of Manufacturing units or individual machineries.

SECTION I – MATERIAL DAMAGE

This insurance provides comprehensive insurance covers with respect to :

  1. Any contingency during unloading at the project site
  2. During storage, physical construction/erection
  3. During test run and maintenance if covered
  4. Covers all physical losses or damages

COVER INCLUDES

  1. Location Risks: Fire, Lighting, Theft, Burglary & Housebreaking.
  2. Testing and Commissioning Risks*: Failure of Safety Devices, Leakage of Electricity, Insulation failure, Short circuit, explosion.
  3. Act of God: Storm, Tempest, Hurricane, Flood, Inundation, Subsidence, Landslide, Rockslide, earthquake.

COVER EXCLUDE

  1. Handling Risks: Impact from falling objects, Collision, Failure of Cranes or Tackles etc.
  2. Risk of Human Element: Carelessness, Negligence, Faults in Erection/Construction, Strike & Riot, Malicious damage, Terrorism.

Testing Perils: Maximum value at risk

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.
  2. 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;
  3. 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 : 

As per tariff depending upon type of project.