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IlBr,ouglht to yo u by

lB'i'rlla Insurance ,AdvIsory &, Blro~ing Services LimIted

iiliJij-h Ii, '-I f!!!."" ~? 11,,,1 at~ I :s ~~:~.,

seE (alsO' IknQ\i\i1n as, Erecltiol'll AJII RIG!~s in su rance' or SeE/EAR) is an iinsurance pOli'cy that IS d~siign@ijl to p rot'~ the int;er'~ts of Pri ncilpalsJE PC COl'iftraotor~s ,~:ain st: damage 'or de~liucti'onl 'm ~ng'ilil~~ng pr(lj~cw wher,~ th ~ value 'm FI~m.& M~dhin~ry comp niS@$ m(Jre 'th~1iI 50% o~ 'th@1 mUll p toject C(j$tt..

The pWMcUo,n e'rl-en d.s 'to, accid~rnt.all d.amra9 es to the P~oJect ~\'o~~~" ,eOnltact,ors pllMI .& maohiilile,ry ,etn.ploy,ed in1!liJe IPr,oj~ct, ,and also to d.amagr!iH~ and deTIzcts durilngl th e 3ubseque,nt. pe~i:~d of m~iln~erilan ce 'rm wI'iIidll the' EPC comractor ls ~e.sp~Milb:le.

T.... ·~,[h""" - -M- ",,~,? nen, 'WI ~, :s ',~I:;,;'

QuIte' oJt~n I di'el'"ilU: ma:y d~ire to' taJk'~ a OOMBIIN~D polic,y' f'or Mariin~ran$it IlfJi$UIF-Mce' an d SCElEAFI: Ilnc$u[r~nce_ fhit$ i;$ ,a very !!,I~~U I ~tF-~t,egy b~ause ,~!!,Ich a, C(jmbined policy' glives '~hilZ' clliem a S!!Zamtess ,COiiler ~r9M trorn the time the Iplant/madiJiinerylequli pment leaves. 'ltiJe supp'lier-s Ipr,ani~es, C!j,ntilnues to, be ,availlebl,e, during b'ansit. by ,seaj,ai~/r,aiIWr-oeld Incjudiin-gl im:ermedilat.iz~ st"orra9,e at sea, pO!iU; ra'irpo.Fts, railway srdiln9~; 'wra~houses etc) filii deliive,ty at the' COli1glruliC'ti;onier,ecn~n sr~B. llhe' cover then oontilnlJles durili1g the eredtof1 period] and !6lJ1bseqlJlen~ tes~ifilg '~iilll fimit!jl comm[ssioillili1g or hMd ove~"

Thi's becomes I!Jsefu'l because SiOl'if1Ietiimes macJhine:ry delliver,e(jl at the eonstru ct'iO'n s'i~' may bl@' 0 p.i;ll'lIed/takm IUp for e~ectiO'Ii1 s~ral w.eeksjI'if1lO'mtris, Ilm~r - if. at the 'tim'e' of 'open~ng" it is 'foulnd that the:r'e ar'e dl~e$ 'to th e machinery it may be di'mcllll~: to ,~tabJlish whl@'lher 'lt1Je IO$~ oocuw~d diu ring t~ansit or I~t:e:r, during ~t,oF-ag~. ,/\ oombilned MC~ poliibi@$ eniSut$S, that' 'the, d~jm willi b~ pa'id VM'ithout' 1allling lbemee:n :it :Mo(JI~~-

The IP'rili1oip9Jlffr,I\1~;{ifil eontraetor for th,e enDr,e projec~ (lnel udifilg the' \/~iiolJls,,act~) CeaIil ~eke' 'lhe p~liiq" Th e ~lJJb-ooill~rac~,m~ can also teke' 'ltiJi~ pol icy to ,cover th ~~ im~eregts, i~ they are iilot covered u nder '~lhe m~in oOill~ra©t. llhe' IP~liic'iy IS lssu ed i'n 'lhe joiin~ nerne of 'lhe P~i'ncilp'aI an d the CO'ntraot'or,

Th~ Ipoliicy ;can be issued m' cover ,all kilndi$ of' engiin ~~j"ngl pr,ojects wlhe~~ th ~ v-alu~ of' diviill oon~t~uefiolil is 1e:ss'~hM :50% ofithetotal pmj'edcost Some. ofllie example~s ,of such pr,oj~cts: ;£!ire:: Ailr~c!oliIdi~ioniin;g1 pllMts; a€rie!1 rope'liays; bl sst fu~naoes" boi le~ houses; ,eabl,e lrayilng; oombinedl cycle, p~~ pllenlt'S, diesel 'ge,n~~ra!lliin91 houses; dislilll~~res; etc.

seE/fAR Ca'lJ' be taken for y:!.'{!).jects ,ffl,at' ,a"f~' JfP.c~te-d In India onfy; Under MOE~ tJ!1,e, ,tratM'!!1' (11',#($ CM be oovE-red from M}!l1Yhe(e In ,the w'Orld tlJl the ,equJpmeni: (eaches the ,proJect ;s!JJe withi-n in ata. "

SCEJEAR' is an "'AJLIL IRIISIK'"' Poll icy. ihi's means that 'every hazard is covered, u nless sp~ciil1calll~l excl1ud ed, IB~' 'Iwery Ihazard", we mean anry sudd m ,and 1! .. mf'On?seen loss 'or damage to Mile property ilnsured. whidh OOClUS, diU r'il1lg th@1 periiod ,of insuranee,

Fo~ th e salt:i8 of better ulllde~stan di ng, SC~R: n orrnally co-yern, the followillig::

• Fire & IJ gh1!rrii n g ..

• Accidental dMiiages d u ning ereetlen ~suCih as dropp ing 01" fall ililg down of objects ~1

as well as during testi ng,

,Iii Flood, St'OITn, Tempest, In uilldaliolil. Water damage, '. Collapse, Coll'isiolil, Impact.

• Theft & BliI~glary. Fliot, Stw'ikes &. Malicious Damage (Excludi'ng Te~rorism}

• Slilosidence, Landsli'de and Aocksli'de etc,

ih~ pollicy calli ~Is-c) b~ e':dellid~1 to. ;COY${' t~an~'it Fisks (ilndudiirng on th~ Customs Duty) illi re!Sp!@ct cd th ~ rmde~iJaI!S and (:jcaUiplflfl~Hil1t p€lrtai'niirng to th ~ proj~ct, to ob~nl ;a ,!S~~I~!S!S 'CO~r, II~ thi$ i$ dOllie" th ~ Ipoliicy 'Willi be, IknO'!,iVI'il ~!S !' M~~ijne' ~ 'CUIlifil - En~;C'tiont (MCE) IIIli$UIF-MCfij'-

The exocl usicns under '(he policy' are e ill 10/ a 'rew, Md rue iin~.ennatiom;tl iifil ch eracte~. 1Ilhe~e are':

• loss er dlamaQe~ due t,Ci war er ¥.I,ar liike, ©pera~fCin;$'1 !!Jivil eemmeren el.'!)J"

.. L\OSS, o~' d~mage:s, dl!Je to will'full ,act or willfull negligence of '~he I nSl!Jred or his r>ep~'esentatives. • Loss or dlamages due to nuel eaIf' reaction" radiation 'or ~adioactiw contamination.

'. Loss disooveF'~1 ollily ~t '~he' tilm~ 'oU '~akiIii9 irnve:nton"y ..

'. IL~ or daMage!S due W' InOniilal1 waar and ~~; !Qlraoual detetJi'ora1)iQIli ou@ ro' abm~pheri(';

Oon ditions, ~!!,I$1, I ack of u@e' etc.,

'. Loss or damage, due, t,o 'ktiJllty desi'gill.,

'. The cost of r,epla.oemelllt, r,epailr or r,ectiifiCa.I!iOIil of defective' m ete~jlel :end!m \\!orklilila.nslhip_

(This exodl~si'{)!n a"pli'~, ooty to the iterms ilm med iattel~l ,~fifeet9!d and shall filet be. dleemedl te exodl~de IICiS5 of or dafflflages. 1.10' oOiirec-tly ,executed iitems resuilliillg ~rofiil an acciden~: due to deFecthl"e ma~:eriaJl 9JrlidV©J woMkman~hiip,,}

• Terrorism ~iG!~s"

,., ilne ,Marndi3Jrd [poolicy is "All Risk" and incllude.s ,~III Act of iGPd {AOG) ~ril;s" lHo~-er" I::a.rthquleke, ~H~e '& Shock) Fleriil~ 'for prdJects situat€d illl Zoliie I or II of th~' I::a.rthqueke, map ls ,only upon 'Ihe pallm~lIlt ,m addifl!ioillal p f'€m"iUlm.

'. The 'foil O1N:iliig ,e(K.telils[ons. ,aJl'€' elso ravaillebl e on p~ymen~, of ,a.d:llitio.nal premium ~

a} ,S'llOrage Ri5KS att feb r'iC'illnrs fuefiili>.$;9s,

b) Clearance &. Removal of Debris"

c) ContractlOrs, Plant andl Eql!Jipment not ,exooediingl 5% of SeE/EAR sum insured.

d) Thilrdl Part;y' 1Li~llili'1¥ and Cross wabil ily.

e) Te~~ori$rf! Inisk$,

'f) O-wlii~r$ SUlrF'Du ndlirn9 PrnP(:lIity" g) bsc!SIJlatiolil of Sum lliisurred,

iii) ,Addifllion aJ Cost ,m ASr Fr,eJglilti

i) Ex,pr,ess ~i"€i'9ht, Ovei1iime '~j,a.ges, and Holiday' wages,

j) l~ansii~ IMulrMoe, ~iilleJll!Idi~g Cu:slml1s nJ uty conn ernedl wi~h SO~lEA!R ilnsurarlice, k) ,A;ddiiuCin aI CIJJ5~'Oms I)uty~

I) Ma'ifllit>enanc@1 Visits &. E;.d'mded Mafntenance Visits" and

m} CoY~r for ~ 19lm "F~ti ngliJ of Catalyst in ~-e.sp~ of FeFti lizer '~IlId Chemi'cal pi anrts ,

Th'" """"''''''r 'I • ... dar ,q,,-. G: 116",01; 0 o"'m- ro- e"'''''''''''' "r ............. ;!Ih"', t- 'I' ....... "'" ,~ .... ", 'kO·o"t;rl~ "" n t- ~"'" Ri~;='J"~~' oo"t;m- m- ", """,,,,

G .... ';"P~G 'WI,I. v i;;7""-iI=i~n, v .I' .... Ilii''''' III 'Vi'" I, I~ '!ii' "1,1,,,,, UIIG "V r;, VI ,III"" F"lu_f""~~' , V !ii"I ~~.

SOrTil~~irMs. '~h~, propiOsal 'tor SeE/EAR i's Ir~ooiV~d after the worli;;, on the p'F~~eclt has oommenced. I n ~su'ch a situati'on, '~h~' cov~r- eornmences 'from '~h~' 'time. that '~h~' p rQlpos~J has be~nl ~coe:pt~l., I-l ~~r, the p~~miju m i$ caloullatted 'Withl ,~Jf,~ 'ir(Jm th~ <:Lay' th~ ~rk: fi~t oommsnced, or from th~ day '~he' m~t,erial mlr'$t arrived ~ the siti3.

The o~r shall[ cease on '~he ,~pilfy date mM~ioliled ilil tiile lPoliicy_ lh:e' ClOver :s1hall CQ,ntilnllle dluring the. ttestin 9 perlod menno ned iilil th e. pol icy sdhedllli e.. [If llie project ls compI1et,e(j prri:or to '~he e:x,pilry d:arte, ~n d is 'taken oilier and put lnto ,se.rv:ice, by '~he [F'-rilncipal, the ,cover sh ell .,.,"',"""'''''' fro ............. ..-;,j. d..-;~'''' 'C'!'"lm'II~'rl'ij lfa If'II""r" ;=tf ;!Ih"" 1f'I~;="~" b~", b een c"-'lCiCii"lJI"'·""...:I and [ P' u~' 'I-n"'''' ~~~ III ;,1,1, 1I.I11..,.l ' aJlG • .,;:,: - - ""_' u r.:-iDl-~";' I~ ~' ~,f";'J~~ III~~ - ''';''I'I'i''I~!l~U """ , I Il I Il'V

.... "'''''il''''''''' ,oJ",,,, ;fV'VI-,,",~ '1, ... der ,~r'b'n=.l!.jD sh ... 1[1 'C"'~"'''' ~ili'·~"" reseect 'i,.,." t- ~"'~ If'II"" r-i'

""~, "" v""', U II~ 'iJV''I'~,1 """I.U~ V'V~I ~n...!t:U ~~~ '!IT,fu II • ~~I?~ l ,,"';.,I ·111~l I?a ~.

IlllIsurer~s luslllalll~l ohalfgoe a minimulm ,~[u'ivalern: tiO' 3 morntrls pre:miiu m (i nclludiin9 one. month iestti ng Periodl) - th us, iit: m~y be sa."id that the mi nim urn period of ~IlISl!Jrance. is, ,3 months.

The pol[icy esn be ,ex_tended :at '~he rreqlu ~t of '~he Insur,e;CI[, priorr to the. expiiry of,th:e, pdlicy'; ,on paYliJiloent of :additIonal[ premium. The, '~,8t'ililg period CM allSo be ,eootelilded in :iIJ simi[lar marmer; both with'ilil th e. poliicy period] as 'well[ as beyond ths poliicy period

What hap pens if the prolect is com pleted ah sad of schedu Ie'?

If 'the project is eornp letad .ahead of th e. ~ iry date of the Policy', then refund of pr~ium is allowed subject to th e followi n 9 eond itio ns:

• The period of insuranca is '18 mDnths and above.

.. NDtics of sady' C(JmpleticlIJl must be g ivanl to the insurers in ,advance" before cornrnsnce

ril'ilent of testililg O~ in My ease not l:a~et than 7 da;y~ aftet commencement of testi ng.

• The clai riI1I5: experienoe u nd et the pol icy must be less 1ifiI!SIJn 50%..

• The m ilili mum pe:niod for which refJ'u nd CM be clai moo sh:all be .3 months.

W1hat sillould be the Slum mlnsured I'll SeE/EAR,?'

The S'um lin su r.ed ShiOlill cI be ttrJe 'completed vallile ,oF 1trJe proJe,c.t It shoulk!1 iilllOI!.l!de 1trJe 'to'ilowilng ::

'. ILaftldocl[ cost ,of' allliilatterials (iliil[po:rtocl[ ,or hid igenous.), ino1!! .. di'rigl nnaterial$, $l,lIppli'ed by

th e. Prindpal:~k

'. CO$1' of ~r8ctionl ('e'xd!!,uiilrig pn~-QP~rwingl e-~pen~$, bu~ i'rioll,lldilngl co$l of ,$p~ia.lii$1:$, visitsj$ulp'et"~v1isio,n ,chaf'9 es etc).

'. FlermMenit CiwU [I::ngiinoeerilng W'Q,Mks ..

'. !-HaJlf' '!he esc~lated value" ii~ escal9Jti:Qn is opted for.

The lnsured must l!I~der-t'ake 'to i'ncr,ease/decrease' the Su FiI'1I Iln~red iiill the even!~ of' anr,t :si9nj'~i:cant 'Hl!Jcltualion in '~h~' lev~1 'Of wages or prices,

lit i~ iim portant ro' nole' '~h,at the' SIUIlifIJ Iln$I,lI~~d d~cllared art 1he o@gi rilriilllg of 'the, Folicy' is ollll~ p ro-visj;on~11.. On the oompl stlon of 1h@' p rdJeot, 'the, ~otu~IVfinal Sum Iln$I,lI~$d i$ determinedl ,On 'the, b~i~ of ~.otul&l V@JIU~, in r,~pe¢t ro' E~p~$es ,011 COri$truction ilriclludling wag~" fr,e:iglirt, eustosns duties, oonsNi'lUotion eosts, €tc .. [I)epelilding on '~he 'fin iii ,sum iinsur,ed[ the premum pay:ilJble, VitOlJIld [00' adjusted.

Any iinc~e.ase 'or dec~e.ase iln th e IP~j'me COS4 ,ofj: mate~i'als shalll not: bti;l' '~he sl!Jbj:~: matter of pTem'il!Jm ,ad,~l)!s~me:nt

ih~ Slum Ilnc$ured I,lIIiHder SC E/E:AR ~n b~ iililorea$~ ii~ r-eql,lliir,ed, lH~v$r" th~ IPn~m'il,llm 1'or '~he' iinCle~' $halll b~ ,c.~lcu lated tom '~he' iililcep~'i(jlil of'1Jhe po I it'll

SC~R: lJJ~edl to be' "teiiiff' busine<ss", This means that 'the Taiitf' Advisory C~mmit~e (H\C) used to 'fix 'ltiJe premium rates, ,aocorrdilll9 to '~he 'Ilype ,m lp:mJeot TIiJe taJiiffif Irates er,e furltiJer de~rm'ililed 0111 ths basis of Slim liilsured!.,$:, withl1Jhe 'td$, h~,viJngl bee:n ,abolish~I, in$ulr'~r$, u~, th~ ,~~twhil~ UI!~iiff m~el¥ ~ a Y'gl)!ide,j and! g~antJallQ'!,iV diScol!Jnts on the ,ersmhiile tariff rates"

IFm projects that have a Sum Iln!5Ju red in exo~s, of' 1Ris,,1 [00 C rores but le$@ 'thM R@. ~ 5O{l erores, Mile lAC rates: sh:all be, sublec~ to, a soh e!1'Oe' fm Speciia) l~arliIll9-

IProJ~ 1Jhat have, a, Sum Inls!!'.m~dl iln e~'C~$ 'm As- ~ 500 CI(Jres are' beyolild '~he' $OOP~ of 1 ftilG, an d '~he' rates ar,~ d~~nmi'ned on 1t~ basi$: 'm lFileiln$uran C~ ql,llows-

The p rem'iunflils If1eLy'able in Mwnce, prior to th~ eemrneneement of' th e ~i5k. Fm pr~jec{s th~t hw~' a pdliny' perii©d UJ)'lD 1 2 nfliOlnths, ~he' e~tin:~ p~emiiu t1I'1I i@ payabl:e iifil MV"'9.nOe,

IF'remilLilriiil Ci!lnl be iilll iinlStalmMts i~ 11fIe peniod of ilnsura.n ce is mere 11fI:an 1 ,2 mornhs, 11111 sl,lIoh ,a. c~' '~he' f.olilowiingi ~!UI~, $h~JII ,arpply::

'. P~od b~~enl ,s!Uccessii\l'e' [ilil$"':~llm~nlts shoul d not b~ I ~$, 1iIhan 3: molil1jh$,. '. P~'e'mi'u m 'tor 'e'actri quamr mu st bl@' ooilleoted iln advance,

• Alii the ilnsti1llme:nts must be ,e;qual 'except the tilrst iinstalmem, which slilol!Jltll be at least 5%

more ,of! 'wtal premium

'. The I,as'~ ilnS'~:allnfl~filt t1I'1IlJJ@t be coOlleel'ed M I:east 6, ~rfiionl~hs, pliior to. the date ()i~ e,xpilry o:~

'th,e 1P~lii©l',

'. A, sdheduJe iindlicmilllg '~he, due dat,.e3, of i'n5telments of premium shou Id be ii iii C!O rpo rm:edl

on the polliGY-

There are SOhelilili9S 'fOT di\s;col!Jnts as under:

., Volume Il)iso~Uin~ _, deDemJiingl on ~he' PmJec~ Sum Iinsulre<d, '. Fi~e Exii'nglu'ishing AppIi'MQE$ Diiscoum.

'. VolllJli1~ry [~~cess Disooulnt _ dependi ng on '(he ehoiee ©f H ig her I)edu;coble ~I))ess,

Vdlm1flie, DlsooUin~ is, gnmtBa 'to Ilar-ge 1Pr-~j'Emts!, where' '!he sum iinSiun:~d is more than Rs.1 00 ©ro,res. lh-e' dis~~u nt is given as, lper the 'rDlllo'lNing too;le:

lin res:pea of' projects h'e!:v.iingl ~ Slmfll ilns~red of' R~.50 more$ OJ aoov~' th elit c-onrnpliy wirth R,ule ~ 11 .A.,I and ~ 1.,A.III, '!he SCEl~!R r9!te s!haJll 9!tUlact ,M FE'~, ~j'isoouril~ of :L5,%',.

III"! 111"!$!ura!'1 t;:~ te:rmil!'1ology" "~~SS" m~ans ~he ,aJriliiOUI!'1It' that iiS d~ll,Jcted from eaCh al"!d $ve:ry olahriri!lll(jj~H~L It iiS ~Ji$O knOW!'11 ~s ud~'ucttiblelJ_ lit i$: 'the, amQ!Um '~h~ is ded!!Jcted 'from 1jh~ fhl"!all ;M;$~·$·~d d~im)1QSS ariliiQ!u!'1rtT~ after d~d!!JQt'ililg dtilpr~d~tiol"!, $ stvag e' ~nd IUll"!der~iIilS!UraI"!O~, The IIExoe33,1I on dihrent liIil3ur.anoe. pCili'ei es is dii~r"enitt, !i3!n:di on CAlF1l '~he excess ii3, dimrenz::nt '!for dith~f'€lirtl1ypes Ci,f pmjieCl1~t

lin SCIEJE'~R~ '~lilere' rue l\i\tO TVPl~S ~f ·e~eess", viz. ~ INmrnaJl Excess ,and Ac~: Of G~d (~.oG) I~eess.

NJormai Ex,Qess '~_P'Plies 'W nermal klnds of lossl;:S" Sl)!oh as '~h~' csused b~,. '~ir'e, acdidenlall dannage, cdllapse ,etc.

t:Kcess csn not, loe. avo.ided m deleted, e'l.ile.n by' pa,yiingl addiit'iCilila.1 p'f'€nidum. ~m~e\!er, iffi me insunzd deslres to vollulnhlnily opt for liIi'ghe.r e)t'Ce5S; dliS!Oouln~s ,are ,iiw'il;aol,.z, as p~r me blllo'"iJi~ll'"";i'1 ,!~,kle'

11!G 1~'IIl¥ III~ ~~I-). " I.

mUSCCu'!IIliIit 'Olil! Eanhqf~JH!I~e IP remi~um

IOiscount o~ NI'ormal Proemli!JI Oil!