Presenter:

DHRITIPRIYA RAY DASGUPTA

Universal Sompo General Insurance Co Ltd

INTERESTS INVOLVED IN A PROJECT

Principlals GP insurance Contractors MD insurance

ALOP Cover Principal

Finance Charges

Financial Institution Premium Gross Profits MD Cover

Investment Management

Loans

Premium

Material
Main Contractor & Sub-contractor

Labour

Project

Type of Insurance cover that can be taken during Project Period:

Contractors All Risk Erection All Risk MARINE WORKMENS COMPENSATION

Contractors Plant Machinery

ALOP
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DIFFERENCE BETWEEN EAR & CAR

1) Where sum insured for civil work is more than 50% of the total project value, the risk is covered under CAR & where it is less than 50% of the total project value, the risk is covered under EAR insurance. 2) No testing is permitted under CAR but, testing is permitted in EAR insurance.

TYPES OF PROJECT COVERED UNDER CAR & EAR

ERECTION ALL RISK
1. ELECTRICAL TRANSMISSION 2. ANY MANUFACTURING UNIT 3. TRANSFORMERS 4. BOILERS ERECTION 5. POWER PLANT

CONTRACTOR ALL RISK

1. BUILDINGS/ AUDITORIUM

2. ROADS/ HIGHWAYS 3. BRIDGES 4. DAM 5. TUNNEL

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SUM INSURED
The completed project value including freight, customs duty and erection costs is the basis on which the Sum Insured is computed.
> Sum Insured should be the aggregate of the following :

Marine (Imports)

Marine (Indigenous)
Cost of Erection/construction Permanent Civil Engg. Works

Landed cost at site

Landed cost at site Half the escalation value if escalation is opted for
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EAR POLICY
> Items not to be included In The Sum Insured:

Development Of site Charges Land development Charges

Designers Fees
Project Financing Expenses

SCOPE OF COVER
> All risk Of Physical Loss or Damage Due To

Location Perils - Fire , Lightning , Theft, Burglary Handling Perils - Collision, Impact, Failure of Cranes etc. Human Element- Carelessness, Negligence, Malicious Damage etc. Major Perils ( Acts Of God)- Storm tempest,Flood, Inundation, earthquake, collapse etc. Operational perils Short circuit, Testing, explosion, Insulation Failures etc.
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WHAT IS NOT COVERED

War Risks Normal Wear & Tear - depreciation Rust, Corrosion, erosion

Inventory Losses
Willful acts, Willful negligence Consequential losses Defective material/ workmanship However restricted to the items immediately affected

Faulty Design
Normal excess

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Coverage Starts From:

Date of Arrival Of materials at Site or Date of Starting of Construction at the Project site. In case of extension to an existing plant the same rules apply

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Period of Insurance
INSURANCE PERIOD

ERECTION ALL RISK INSURANCE

MAINTENANCE

OPERATIONAL COVERS-FIRE & ALLIED PERILS

CONTRACTS WORK PERIOD

MAINTENANCE PERIOD

Date of commencement of work 12

ADD ON COVERS

Third Party Liability Escalation Cost Maintenance Cost Removal Of Debris Owner's Surrounding Property Damage Earthquake

Terrorism
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FACTORS AFFECTING PREMIUM CALCULATION

Occupancy

Project Period
Testing Period Required Sum Insured
> When Sum Insured <100crs then,individual rate of add-on covers are applied on respective sum insured.
> When Sum Insured >100crs then,rate of individual add-on covers are added to the project rate to get net rate.
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EAR POLICY
> REFUND IN CASE OF EARLY COMPLETION OF THE
PROJECT

Period Of The Policy To Be More Than 18 months The minimum for which refund is claimed is more than three months The claims Experience Under The Policy is less than 60%

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> Having SI >100 Crores Sum Insured Additional extensions Available FREE:

50/50 clause 72 Hours Clause Free Automatic reinstatement of sum insured upto 10% of sum insured

Loss Minimisation Expenses

Debris Removal Upto rs.50 lacs per occurrence Professional Fees

Expediting Costs incl Air, express Freight upto 30% of claim

Additional Customs Duty upto 10 crores

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> Additional extentions Available at a Cost:

Detariff will lower these Rates:

Waiver of subrogation Clause 0.05 per mille Continuity of Cover During Operational Phase For Unit Plant tested but awaiting integral testing- 0.20 per mille

Cover for Offsite fabrication/ Storage 0.05 per mille

Debris removal per occurrence above 50 lacs and upto 10 crores 0.05 per mille

Design Defect Cover - Rs.0.20 per thousand SI

Additional Customs Duty Above 10 crores 0.10 per mille Free Automatic Reinstatement above 10% upto 50% - 0.05 per mille
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Claim Settlement Moment of truth

> Documents Required :

Intimation of Claim Claim form with Estimate of Repairs

Photographs
Police Report, if reported to police Fire Brigade Report if called to extinguish the fire Proof Of reinstatement of Damaged Equipment- Invoice, Payment particulars.
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Claim Settlement Moment of truth

Surveyor to be appointed within 24 hours of claim intimation

Prompt and relevant on account payment RTGS On line intimation of claim facility to be given to corporates

Technology driven claim settlement process minimal paper flow

All claims to be settled within an outer limit of 5 days from date of receipt of all relevant documents.

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Discussion Points

Detection Of Claim Claims Not Detected During Project Phase Maintenance Cover Commercial Production Vis a Vis Commissioning under EAR Definition of Prime Cost / Supplier Cost

Typical Claims - Impact Damage, Transit claims

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CASE STUDIES

1) BALCO MISHAP: Chimney Collapse 2) DELHI METRO: Metro Bridge Collapse 3) BANDRA-WORLI BRIDGE: Initial Sum Insured -Rs 400 crs---Rs 1600crs (Escalation)

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Thank You For Queries we are a phone call away.

Thank you