Engineering Insurance

Erection All Risk (EAR)

The erection all risk insurance covers loss or damage to projects that involves erection/installation of plant, machinery and equipment ranging from erection of a single machine to a large power plant. It protects a contractor or employer against physical loss or damage to the contract works, construction plant and equipment or machinery. It also includes cover for damage to property of third parties and bodily injury to third parties.

Scope

It offers a comprehensive cover against all the risk involved in the

• Storage

• Erection

• Testing and Commissioning

of machinery  & plant pertaining to various Industries. 

Coverage

EAR cover begins from the time of unloading of the first consignment at the project site and terminates on completion of testing or handing over of the project to the principal employer, or the period chosen, whichever is earlier.

The following are the eventualities against which you are covered:

• Fire, lightning, explosion, aircraft damage

• Riot, strike, malicious act

• Flood, inundation, storm, cyclone and allied perils

• Landslide, subsidence and rockslide

• Burglary and theft

• Faults in erection

• Human errors, negligence, lack of skill

• Short circuiting, arcing, excess voltage

• Collapse, damage due to foreign objects, impact damages

Add-On Covers

Cover can be extended by the insured to the following, on payment of additional premium:

• Third party liability

• Cross liability

• Cost of removal of debris,

• Express freight,overtime charges,

• Air freight,

• Custom duty

• Escalation

• Owner’s surrounding property

• Storage risk at Fabricator’s Premises

Exclusions

The following eventualities are not covered:

• War Invasion Riot Strike Civil Commotion etc

• Nuclear Reaction Nuclear Radiation or Radioactive  Contamination

• Insured’s Contribution – Deductible

• Wilful Act or Wilful Negligence of the Insured

• Cessation of Work

• Defective Material or Bad workmanship

• Wear Tear Corrosion Oxidation Deterioration

• Normal Maintenance or Making Good

• Disappearance or Shortage (Inventory Losses)

• Design Defects

• Loss of files, drawings, cash, cheques, etc.

• Consequential Loss

Contractor’s Plant and Machinery (CPM)

The policy broadly covers loss or damage to the contractor’s following mobile equipment against an accident arising out of external perils:

Scope

• Road Rollers

• Concrete mixer, concrete pumps

• Pavers for asphalt or concrete finishing

• Cranes, Lifting equipment and drilling equipment Road surfacing equipment

• Vibrators

• Chain blocks, pulley blocks

• Site power-generating plant

• Mobile mixing plant

• Hauling equipment

• Excavators and loaders

• Earthmoving equipment: Bulldozer, grader, scraper, excavator, loader, dumper, etc

• Batching plant for the production of concrete of asphalt

• Bitumen tank sprayers

Benefits

At any plant site, the contractor is completely dependent on the machinery and plant work. Physical loss or damage to these equipment can lead to heavy loss as they require huge investments. This insurance can keep the contractor relaxed because his/her machinery and plants are protected against any damage or loss. Some key benefits are as follows:

• Coverage against damage and loss to insured plants and machinery or equipment of construction due to an accident that arises because of external perils such as accidental damage, fire, burglary, riot, etc.

• Most CPM policies cover the replacement of the machinery based on its current replacement price.

• It provides the contractor the freedom to select the plant and machinery & equipment of his/her site of work.

Coverage

The following eventualities are covered:

• Fire and Lightning.

• Accidental damage like defective workmanship and material, lack of skill, Negligence, Malicious act or Human error.     

• Water damage, Flood, Storm, Tempest, Inundation.      

• Collapse, Collision, Impact. 

• Theft & Burglary.

• Subsidence, landslide, Rockslide.

Exclusions

Loss or damage due to the following eventualities are not covered:

• War or Warlike operations, Civil Commotion etc.

• Wilful act or Negligence of the Insured or of his representative

• Nuclear reaction, Nuclear radiation or Radioactive contamination

• Loss discovered only at the time of taking an inventory

• Normal wear and tear, Gradual deterioration due to atmospheric conditions or lack

• Faulty design

Machinery Breakdown

Machinery breakdown insurance provides a protection cover to the machines used by factories and industries. This insurance covers accidental breakdown and physical damage of the machinery and the cost of repairs or replacement of the damaged machine part.

Scope of Machinery

The types of machinery covered are as follows:

• Mechanical: All types of Mechanical industrial plant like compressors, pumps, turbine engines, turbines (steam, water & gas), blowers, machine tools, presses and refrigerators etc.

• Electrical: All types of electrical machines like a transformer, electrical motor, alternators & generators, motors, rectifiers and switchgear etc.

• Process machines: All types of Process machines in such industries as cold storage, engineering and metallurgical, paper/ pulp making, printing, rubber/ plastics and textiles

• Stationary: All Stationary equipment can be covered

The protection is offered for machines both in working and in rest condition. Some other conditions are when dismantled or moved or re-assembled for cleaning, inspection or repair.

Coverage

The following events are covered by machinery breakdown insurance: 

• Machinery breakdown due to short-circuits, excess voltage, and electrical faulty design, faulty material, and faulty casting that manifest after the warranty period due to electrical and mechanical breakdowns

• Abnormal operating conditions of the machine

• Falling, impact and collision resulting in breakdowns

• Carelessness and lack of operating skills in the operations and management of machinery

• Turbines bursting, compressors, hydraulic cylinders or other apparatus which is subjected to centrifugal force or internal pressure

• Damage or loss due to initiation of fire from within the machinery is also included which is generally excluded from the standard fire protection policy

Add- On Covers

• Air Freight

• Express Freight (excluding Air Freight), Overtime and Holiday Wages

• Insured’s Own Surrounding Property

• Escalation of sum insured

• Third Party Liability

Exclusions

Machinery breakdown insurance can be availed by machine owners of large-scale organisations or MSMEs of India. There are two types of exclusions in this policy:

General Exclusions: This includes war, civil war, riots and strikes

Special Exclusions include the following:

• Fire and allied perils, theft, etc.

• Loss or damage as a result of to overload experiments

• Gradual development of abnormalities, defects, cracks etc. in any part being ignored regularly in spite of knowing it demands repair

• Regular wear and tear of the machinery

• Pre-existing faults or defects in the machinery before the policy commencement

• Loss of use of the machinery due to conditions in the plant or factory or any other kind of consequential loss incurred by the insured

• Loss or damage because of explosions in chemical recovery boilers

• Damage to belts, chains, ropes, rubber tyres or any other exchangeable tools unless any loss or damage to the machinery is indemnifiable

Boiler and Pressure Plant (BPP) Machinery

Boilers and Pressure vessels are critical to the manufacturing process. Even a small damage can cause these to explode or collapse. The impact from such events could assume catastrophic proportions, both in terms of the lives that it can affect and the financial losses that it can cause. This policy covers physical loss or damage to boilers and/or other pressure plants where steam is being generated.

Coverage

This policy covers boiler & pressure vessels owned by you and located at your premises against explosion, implosion and collapse leading to:

• Damage to the boilers & pressure vessels

• Damage to surrounding property, up to fixed limits, arising due to explosion & collapse of the pressure plant during the normal course of work

• Third-party legal liability, up to set limits, arising due to:

• Death or bodily injury to third parties

• Damage to property of third parties (not held in trust or on commission) caused by and solely due to explosion or collapse occurring during ordinary working.

Add on Covers

• Express freight

• Airfreight

• Owners surrounding property

• Third-party liability

• Additional custom duty

• Escalation Clause

Exclusions

This policy does not cover damage due to:

• Fire and related perils

• War and nuclear perils

• Overload experiments / tests imposing abnormal conditions

• Gradually developing defects not requiring stoppage

• Normal wear and tear, corrosion not leading to explosion / collapse.

• Willful act / negligence

• Loss for which the manufacturer is responsible

• Pre-existing defects & faults

• Consequential losses

Electronic Equipment Insurance

Mediclaim Policy provides cover for healthcare expenses incurred by insured in a hospital due to a medical emergency, such as illness or accidents. This policy provides coverage to individuals and their covered family members against expenses such as hospital room/ICU charges, diagnostic charges, medicine and other medical expenses.

Benefits

• Extensive coverage under three sections – Equipments, External Data Media and Increased cost of Working Capital

• Covers both partial and total loss due to material damage of equipment

• Expenses incurred on restoration of data covered

• Business continuity ensured by cover for additional costs of continued data processing

Coverage

The policy provides coverage against unforeseen and sudden physical loss or damage to the electronic equipment and data media that occurs owing to perils other than those specifically excluded. Three sections are providing the desired coverage:

Section 1: Equipments

• Covers any unforeseen and sudden physical loss or damage to electronic equipments.

Section 2: External Data Media

• Expenses incurred within 12 months from the date of occurrence of loss, necessary for restoring the insured data media to pre-accident condition will be covered.

Section 3: Increased Cost of Working

• Covers all additional costs incurred to ensure continued data processing on substitute equipment.

Add-on Covers

• Escalation of the sum insured

• Express freight

• Holiday and overtime rates of wages

• Airfreight

• Owners surrounding property

• Third-party liability

• Additional customs duty

• Terrorism

Exclusions

While we strive to cover all eventualities, there are a few exclusions under this policy:

• Pre-existing faults or defects, normal wear and tear, erosion, corrosion, etc.

• Costs towards elimination of functional failures unless such failures were caused by an indemnifiable loss or damage to the insured items

• Maintenance cost of the insured items

• Loss or damage to objects made of glass, porcelain or ceramics, sieves or any operating media

• Aesthetic defects such as scratches on painted or enameled surfaces

• Costs arising from false programming, punching, labeling or inserting, inadvertent cancelling of information or discarding of data media, and from loss of information caused by magnetic fields

• Costs for replacement of data media, data and regeneration of data.

• Loss or damage due to:

• War and nuclear risks

• Willful act or negligence

• Partial or total cessation of work

• Loss or damage to the property falling under the terms of the maintenance agreement

• Loss, destruction, or damage directly occasioned by pressure wave caused by aircraft and other aerial devices.