All India Contractor's All Risks Insurance Tariff

ALL INDIA TARIFF
ON
CONTRACTOR’S ALL RISKS INSURANCE
TARIFF ADVISORY COMMITTEE

ADOR HOUSE, MUMBAI
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Tariff Advisory Committee 1
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THE TARIFF ADVISORY COMMITTEE
(HEREINAFTER CALLED THE COMMITTEE) HAS
LAID DOWN RULES, REGULATIONS, RATES,
ADVANTAGES, TERMS AND CONDITIONS, AS
CONTAINED HEREIN, FOR TRANSACTION OF
CONTRACTOR’S ALL RISKS INSURANCE BUSINESS
IN INDIA IN ACCORDANCE WITH THE PROVISIONS
OF PART II B OF THE INSURANCE ACT, 1938.
ANY BREACH OF TARIFF SHALL BE DEALT WITH AS

PER THE RELEVANT PROVISIONS OF THE
INSURANCE ACT, 1938.
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Tariff Advisory Committee
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PROPOSAL FORM
------------------------------------------------------------------------------------Co. Ltd.
PROPOSAL AND QUESTIONNAIRE FOR CONTRACTOR'S ALL RISKS INSURANCE
(The liability of the Company does not commence until this proposal has been accepted by the Company
and the premium paid)
Information given herein will be treated in strict Confidence.
Put a ( ) mark wherever applicable.
S. No. Details Answer
1. a) Name & Address of the Principal Trade or a)

business
b) Name & Address of the Contractor Trade or b)

business
c) Name & Address of the Sub Cont- ractor, if c)

any, Trade or Business
THE INSURED INTERESTS -

Contractor Sub- Principal
2. Whose Interests are to be Insured? contractor
3. THE CONTRACT WORKS -
a) Full description of the Contract
b) Please give details -
i) Building (type of construction, number of

storeys etc.)
ii) Blasting operation
iii) Excavation work
iv) Pile driving
v) Tunneling
vi) Dam Construction or diversion of water
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vii) Others (Specify)
Note - A site plan of contract works may be

enclosed.
4. i) Is this a contract/Sub-contract
forming part of an over all construction Yes No.
project
ii) If yes, give name of the Project
5. a) Will the construction be carried out by your

own personnel? Yes No.
b) If not, by whom? b)
c) Past experience of the Contractor c)
6. a) Will any sub-contractors be taking part in the Yes No.

work of construction?
b) If yes, what is their position as regards this b)

insurance?
THE CONTRACT SITE -
7. a) Location of Contract site a)
b) Nearest port and/or Railway Station and b)

distance.
Note - A complete lay out of the site may be

enclosed
8. a) Are any Special Risks of one or more of the a)

following involved?
i) Earthquake-Fire & Shock

ii) Landslide/Rockslide/ Subsidence
iii) Flood/Inundation
iv) Storm/Tempest/Hurricane/Typhoon/
Cyclone
v) Collapse
vi) Water Damage for ’Wet’ risk i.e. Contract
involving construction in rivers, canals,
lakes or sea.
b) Distance from nearest river, lake, reservoir or

sea - the names and particulars to be given b)
c) Elevation of construction site above normal c)

river, lake, reservoir or sea level
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d) Is there any record of the construction site ever d)
having been affected by any of the major perils
specified in (a) above?
9. Give full details regarding geological condition

including sub soil
10. a) Brief description of the arrangements made for a)

storage of construction materials and
equipments - whether in open or closed
premises.
b) i) Will there be a watch and ward round the b) (i)

clock?
ii) If not, what precautions will be taken
against theft, malicious damage etc. ii)
11. THE INSURANCE -
a) Estimated construction period excluding a) ... Months

maintenance period (cover to commence from .
the date of first arrival of consignment material from ……… to ....
at site or commencement of work whichever is
earlier)
b) Cover required during maintenance period, if a) . . . . months,

any from…….. To…………..
c) Probable date on which construction is c)

expected to be completed
d) Period of Insurance required d). . . . months,

from……… To………..
12. a) Have you approached any other Insurance Co.

Yes No
for Insurance Cover in respect of this Proposal?
b) If yes, please state name of the Insurance b)

Company.
13. Has any such proposal been -
a) declined? Yes No
b) withdrawn? Yes No
c) accepted subject to an increased rate or special

Yes No
conditions?
SUM INSURED -
14. i) Contract works -
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Note-Please attach schedule of quantities and rates and/or values (Permanent & Temporary works
including all materials to be incorporated therein)
a) Contract Price Rs. . . . . . . . . .
b) Materials or items supplied by the

Principal Rs. . . . . . . . . .
c) Any additional items not included in (a)

and (b) above Rs. . . . . . . . . .
d) Landed cost of imported items as at

construction site (please specify whether Rs. . . . . . . . . .
included in (a) and/or (b) above)
at Exchange Rate -------------
TOTAL VALUE OF CONSTRUCTION . . . Rs………………
ii) Construction Plant & Machinery to be used at

the construction site (Details as per attached Rs. . . . . . . . . .
sheet)
iii) Clearance & Removal of Debris Rs. . . . . . . . . .
iv) Insured's own surrounding property. Rs. . . . . . . . . .
v) Extra charges for Express Freight (excluding

Air Freight) overtime Sunday & Holiday rates Rs. . . . . . . . . .
of wages, if required.
vi) On increased Replacement value for item i

(a) (b) & (d) above, if required Rs. . . . . . . . . . ( --------- % )
vii) Third Party liability -
a) for any one accident Rs. . . . . . . . . .
b) for all Accidents during the period Rs. . . . . . . . . .
15. Do you wish to opt for higher amounts of Deductible Excess? Yes No
If yes, whether i) 2 times ii) 5 times Iii ) 10 times iv) 20 times
I/We the undersigned hereby declare that the above statements and particulars are true and complete and I/We
declare and agree that this declaration and the answers given above shall be held to be promissory and shall be the
basis of the contract between me/us and the company.
Place.................
Date.................. Proposer’s Signature.....................
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Section 41 of Insurance Act 1938
PROHIBITION OF REBATES -
1. No person shall allow or offer to allow, either directly or indirectly as an inducement to any person
to take out or renew or continue an insurance in respect of any kind of risk relating to lives or
property in India, any rebate of the whole or part of the commission payable or any rebate of the
premium shown in the policy; nor shall any person taking out or renewing or continuing a policy
accept any rebate, except such rebate as may be allowed in accordance with the published
prospectus or tables of the Insurer.
2. Any person making default in complying with the provisions of this section shall be punishable with
fine, which may extend to five hundred rupees.
CONTRACTOR'S ALL RISKS INSURANCE POLICY
Issuing Office
Agency Policy No
THE SCHEDULE
The Company ____________________________________INSURANCE COMPANY LIMITED
The Insured –
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a) Name & Address of the Principal
b) Name & Address of the Contractor(s)
c) Location of contract site
Period of Insurance
From . . . . . . . . . . . . to . . . . . . . . . . .. plus . . . . . . months maintenance period.
Premium (Subject to adjustment on completion of the project)
Rupees . . . . . . .
Description of contract works –
Insured Items Sum Insured
SECTION I – MATERIAL DAMAGE –
1. Contract works (Permanent and Temporary works including all

materials to be incorporated therein) –
1.1 Contract price

Rs. . . . . .
1.2 Materials or items supplied by the Principal
2. Any other works, & installations not included in 1.1 and 1.2 above
(eg camp, colony, stores etc as per list enclosed)
3. Construction Plant & Machinery (Memo. 6) (as per list enclosed)
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4. Extensions (on First loss Indemnity basis) –
4.1 Express Freight, Overtime (Memo 5)

4.2 Principal’s Surrounding Property (Memo 7)
4.3 Debris removal (of insured property)
4.4 Any other extension (e.g. Escalation, Air Freight, Addl.
Custom Duty, Maintenance visits or extended maintenance
cover as per forms attached )
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TOTAL FOR SECTION 1 . . Rs. . . . . . .
SECTION II – THIRD PARTY LIABILITY –
1. Limit of indemnity in respect of any one accident or series of

accidents arising out of one event. Rs. . . . . .
2. Total limit of Section II during policy period. Rs. . . . . .
EXCESSES FOR SECTIONS I & II
1. for Storage & Construction claims Rs. . . . . . each claim
2. for Maintenance period claims Rs. . . . . . each claim
3. for Major peril claims as per Memo 8 of Section I Rs. . . . . . each claim
SIGNED ON BEHALF OF THE COMPANY AT _____ THIS ______ DAY OF ______ 2001
EXAMINED
CONTRACTOR'S ALL RISKS INSURANCE POLICY
WHEREAS the insured named in the schedule hereto had made to __________________________ Co
Ltd. (hereinafter called "the Company") a written proposal by completing a proposal form which
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together with any other statements made in writing by the Insured for the purpose of this policy, is
deemed to be incorporated hereto.
NOW THIS POLICY OF INSURANCE WITNESSETH that subject to and in consideration of the
Insured having paid to the Company, the premium mentioned in the schedule and subject to the terms,
exclusions, provisions and conditions contained herein or endorsed hereon the Company will indemnify
the Insured in the manner and to the extent hereinafter provided.
GENERAL EXCLUSIONS -
The Company will not indemnify the Insured in respect of loss, damage or liability directly or indirectly
caused by or arising out of or aggravated by -
a) War, Invasion, Act of foreign enemy, hostilities or War like operations (whether war be declared or
not) Civil War, rebellion, revolution, insurrection, mutiny, Civil commotion, Military or usurped
power, martial law, conspiracy, confiscation, commandeering a group of malicious persons or persons
acting on behalf of or in connection with any political organisation, requisition or destruction or
damage by order of any Government de jure or defacto or by any Public, Municipal or Local
Authority;
b) Nuclear reaction, Nuclear radiation or Radioactive contamination;
c) Willful act or willful negligence of the Insured or of his responsible representative;
d) Cessation of work whether total or partial.
In any action, suit or other proceedings where the Company, allege that by reason of the provisions of
Exclusion (a) above any loss, destruction, damage or liability is not covered by this insurance, the burden
of proving that such loss, destruction, damage or liability is covered shall be upon the Insured.
PERIOD OF COVER -
Construction Period -
The liability of the Company shall commence, (notwithstanding any date to the contrary specified in the
Schedule) only from the time of commencement of work after the unloading of the property specified in
the schedule from any conveyance at the site specified in the schedule whichever is earlier and shall
expire on the date specified in the schedule. However, the Company’s liability expires also for parts of the
insured contract works taken over or put into service by the Principal prior to the expiry date specified in
the policy whichever shall be earlier.
‘If actual construction period is shorter than the period indicated in the schedule, no refund of premium
shall be allowed unless specifically allowed by Insurers.’
At the latest, the insurance shall expire on the date specified in the Schedule but if the work of
construction included in the insurance is not completed within the time specified hereunder, the Company
may extend the period of insurance but the Insured shall pay to the Company additional premium at rates
to be prescribed by the Company.
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GENERAL CONDITIONS –
1. The due observance and fulfillment of the terms of this Policy in so far as they relate to anything
to be done or complied with by the Insured and the truth of the statement and answers in the
questionnaire and proposal made by the Insured shall be a condition precedent to any liability of
the company.
2. The Schedule and the Section(s) shall be deemed to be incorporated in and form part of this
Policy and expression ‘this Policy’ wherever used in this contract shall be read as including the
Schedule and the Section(s). Any word or expression to which a specific meaning has been
attached in any part of this Policy or of the Schedule or of the Section(s) shall bear such meaning
wherever it may appear.
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3. The Insured shall at his own expense take all reasonable precautions and comply with all
reasonable recommendations of the Company to prevent loss, damage or liability and comply
with statutory requirements and manufacturers' recommendations.
4. a) Representatives of the Company shall at any reasonable time have the right to inspect and
examine the risk and the Insured shall provide the representatives of the Company with all
details and information necessary for the assessment of the risk.
(b) The Insured shall immediately notify the Company by Telegram and in writing
of any material change in the risk and cause at his own expense such
additional precautions to be taken as circumstances may require and the
scope of cover and/or premium shall, if necessary, be adjusted accordingly.
No material alteration shall be made or admitted by the Insured where by the risk is increased
unless the continuance of the Insurance be confirmed in writing by the Company.
5. In the event of any occurrence, which might give rise to a claim under this Policy, the Insured
shall –
a) Immediately notify the Company by Telephone or Telegram as well as in writing giving an

indication as to the nature and extent of loss or damage;
b) take all steps within his power to minimise the extent of the loss or damage;
c) preserve the parts affected and make them available for inspection by a representative or
Surveyor deputed by the company;
d) furnish all such information and documentary evidence as the Company may require;
e) inform the police authorities in case of loss or damage due to theft or burglary.
The Company shall not in any case be liable for loss, damage or liability of which no notice has been
received by the Company within 14 days of its occurrence.
Upon notification being given to the Company under this condition the Insured may carry out the
repair or replacement of any minor damage not exceeding Rs. 2,500/-. In all other cases a
representative of the Company shall have the opportunity of inspecting the loss or damage before any
repairs or alterations are affected. If a representative of the Company does not carry out the inspection
within a period of time which could be considered as adequate under the circumstances the Insured is
entitled to proceed with the repairs or replacement.
The liability of the Company under this Policy in respect of any item sustaining damage shall cease if
said item is not repaired properly without delay.
6. The Insured shall at the expense of the Company do and concur in doing and permit to be done all
such acts and things as may be necessary or required by the Company in the interest of any rights or
remedies, or of obtaining relief or indemnity from parties (other than those Insured under this Policy)
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to which the Company shall be or would become entitled or subrogated upon their paying for or
making good any loss or damage under this Policy, whether such acts and things shall be or become
necessary or required before or after the Insured's indemnification by the Company.
7. If any dispute or difference shall arise as to the quantum to be paid under this Policy (liability being
otherwise admitted) such difference shall independently of all other questions be referred to the
decision of a sole arbitrator, to be appointed in writing by the parties to or, if they cannot agree upon a
single arbitrator within 30 days of any party invoking Arbitration, the same shall be referred to a
panel of three Arbitrators comprising of two Arbitrators - one to be appointed by each of the parties to
the dispute/difference, and the third Arbitrator to be appointed by such two Arbitrators and arbitration
shall be conducted under and in accordance with the provisions of the Arbitration and Conciliation
Act 1996.
It is clearly agreed and understood that no difference or dispute shall be referable to arbitration as
hereinbefore provided, if the Company has disputed or not accepted liability under or in respect of
this Policy.
It is hereby expressly stipulated and declared that it shall be a condition precedent to any right of
action or suit upon this Policy that the award by such Arbitrator/Arbitrators of the amount of the loss
or damage shall be first obtained.
8. If a claim is in any respect fraudulent, or if any false declaration is made or used in support thereof, or
if any fraudulent means or devices are used by the Insured or any one acting on his behalf to obtain
any benefit under this Policy, or if a claim is made and rejected and no action or suit is commenced
within three months after such rejection or, in case of arbitration taking place as provided therein,
within three months after the Arbitrator or Arbitrators or Umpire have made their award, all benefits
under this Policy shall be forfeited.
9. If at the time any claim arises under this Policy there be any other insurance covering the same loss,
damage or liability the Company shall not be liable to pay or contribute more than their rateable
proportion of any claim for such loss, damage or liability.
10. This insurance may be terminated at the request of the Insured at any time in which case the Insurers
will refund appropriate premium amount subject to the following conditions -
i) Claims experience under the policy as on date of cancellation should be less than 60 % of
reworked premium.
ii) ‘The unexpired period is not less than 3 months or 25 % of the policy period whichever is less’.
iii) Testing period should not have commenced.
This insurance may also at any time be terminated at the option of the Company by 15 days notice to
that effect being given to the Insured in which case the Companies shall be liable to repay on demand
a rateable proportion of the premium for the unexpired term from the date of cancellation.
SECTION I - MATERIAL DAMAGE -
The Company hereby agrees with the Insured (subject to the exclusions and conditions contained herein
or endorsed hereon) that if, at any time during the period of insurance stated in the said Schedule, or
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during any further period of extension thereof the property (except packing materials of any kind) or any
part thereof described in the said Schedule be lost, damaged or destroyed by any cause, other than those
specifically excluded hereunder, in a manner necessitating replacement or repair the Company will pay
or make good all such loss or damage upto an amount not exceeding in respect of each of the items
specified in the Schedule the sum set opposite thereto and not exceeding in the whole the total sum
insured hereby.
The Company will also reimburse the Insured for the cost of clearance and removal of debris following
upon any event giving rise to an admissible claim under this Policy but not exceeding in all the sum (if
any) set opposite thereto in the Schedule.
EXCLUSIONS TO SECTION - I
The Company, shall not, however, be liable for –
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.
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PROVISIONS APPLYING TO SECTION - I
Memo 1 - SUM INSURED –
It is a requirement of this Insurance that the sum of insurance stated in the schedule shall not be less than
the completely erected value of the property inclusive of freights, custom duty, erection cost and the
insured undertakes to increase or decrease the amount of insurance in the event of any material
fluctuation in the level of wages or prices. Provided always that such increase or decrease shall take effect
only after the same has been recorded on the policy by the Company.
If in the event of the occurrence of a loss, or damage it is found that the Sum insured representing the
completely erected value of the property and/or of particular item involved is less than the amount
required to be insured, then the amount recoverable by the insured under this policy shall be reduced in
such proportion as the Sum Insured bears to amount required to be insured.
Memo 2 - PREMIUM ADJUSTMENT –
The Sum Insured under the Policy representing the complete value of the contract works shall be
adjustable at completion of the construction on the basis of actual values to be declared by the insured in
respect of freight and handling charges, customs dues and construction cost and difference in premium
shall be met with by payment at the rate agreed to or by the insured as the case may be. Any increase or
decrease in the Prime cost of materials shall not be the subject matter of premium adjustment.
Memo 3 - REINSTATEMENT OF SUM INSURED –
In the event of loss or damage the Insurance shall notwithstanding be maintained in force during the
period of insurance for the Sum Insured the Insured undertaking to pay a pro-rata additional premium on
the full amount of each claim for the loss or damage from the date of such loss to the expiry of the period
of Insurance.
Memo 4 - BASIS OF LOSS SETTLEMENT –
In the event of any loss or damage the basis of any settlement under this Policy shall be -
a) in the case of damage which can be repaired the cost of repairs necessary to restore the property to
their condition immediately before the occurrence of the damage less salvage, or
b) in the case of a total loss - the actual value of the property immediately before the occurrence of
the loss less salvage;
however, only to the extent the cost claimed has to be borne by the Insured and to the extent they
are included in the Sum Insured and provided always that the provisions and conditions have been
complied with.
All damages, which can be repaired, shall be repaired, but if the cost of repairing any damage equals
or exceeds the value of the property immediately before the occurrence of the damage, the settlement
shall be made on the basis provided for in (b) above.
The cost of any provisional repairs will be borne by the Company if such repairs constitute part of the
final repairs and do not increase the total repair expenses.
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The cost of any alterations, additions and/or improvements shall not be recoverable under this Policy.
Memo 5 - EXTENSION OF COVER –
Any extra charges incurred for overtime, work on holidays, express freight (excluding air freight) are not
covered by this insurance unless agreed upon at an additional premium to be prescribed by the Company.
Memo 6 - CONSTRUCTION PLANT AND MACHINERY –
Loss of or damage to Construction Plant and Machinery excludes loss or damage directly caused by its
own explosion or its own mechanical or electrical breakdown or derangement.
Memo 7 - SURROUNDING PROPERTY –
Loss of or damage to property located on or adjacent to the site and belonging to or held in care custody
or control of the Principal (s) or the Contractor(s) shall only be covered if occurring directly due to the
construction of the items insured under Section I and happening during the period of cover, and provided
that a separate Sum therefore has been entered in the Schedule under Section I, for Principal’s
surrounding specified property. This cover does not apply to construction/erection machinery, plants and
equipment.
Memo 8 - MAJOR PERILS/AOG Perils –
The major peril/Acts of God claims shall mean claims arising out of –
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.
Memo 9. REINSTATEMENT OF THE INDEMNITY LIMIT -
Reinstatement of the indemnity limit on payment of additional premium after occurrence of claim can be
allowed for extensions like express freight, overtime, surrounding property, airfreight. However, in
respect of Third Party Liability, reinstatement can be allowed upto overall limit of Rs.1 crore during
entire Policy period.
Memo 10. THIRD PARTY LIABILITY -
Third party liability (TPL) cover cannot be granted during extended maintenance.
SECTION II - THIRD PARTY LIABILITY -
The company will indemnify the insured against -
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a) 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.
b) 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 cause 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, the Company
will, in addition, indemnify the 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.
The exclusion contained in paragraphs (d), (f) & (g) in Section I of this Policy shall apply also to this
Section.
EXCLUSIONS TO SECTION II -
The Company will not indemnify the Insured in respect of -
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;
3. Liability consequent upon -
a) 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;
b) 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;
c) any accident caused by vehicles licensed for general road use or by waterborne vessels or
aircraft;
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d) 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.
CONDITIONS APPLYING TO SECTION II -
1. No admission, offer, promise, payment or indemnity shall be made or given by or on behalf of the
Insured without the written consent of the Company who shall be entitled, if they so desire, to take
over and conduct in the name of the Insured the defence or settlement of any claim or to prosecute for
their own benefit in the name of the Insured any claim for indemnity or damage or otherwise and
shall have full discretion in the conduct of any proceeding or in the settlement of any claim and the
Insured shall give all such information and assistance as the Company may require.
2. The company may, so far as any accident is concerned, pay to the Insured the limit of indemnity for
anyone accident/ anyone period, but deducting therefrom in such case any sum/s already paid as
compensation in respect thereof or any lesser sum for which the claim or claims arising from such
accident can be settled and the company shall thereafter be under no further liability in respect of
such accident under this section.
PART 1- RATE SCHEDULE FOR CONTRACTORS' ALL RISKS INSURANCE
HAVING SUM INSURED UPTO RS.100 CRORES
Premium Rates (%o) Excess - 5 %

Risk S. Risk of claim amount subject to
Code No Minm of Rs.
Minm Rate Addl. Rate per AOG/Major
upto first 3 month beyond 3 Normal Perils/
months months Collapse
(1) (2) (3) (4) (5) (6) (7)
1. Residential and commercial buildings, Office buildings, Schools, Universities, Hotels, Motels,
Restaurants, Hospitals, Airport buildings of –
011011 a) Other than RCC and not

more than 2 storeys 1.00 0.02 3,000/- 10,000/-
012032 b) Other than RCC and

exceeding 2 1.75 0.025 5,000/- 20,000/-
storeys and upto 5 storeys
RCC framed structure not
013022 c) more than 5 storeys 1.50 0.025 5,000/- 20,000/-
014043 d) RCC Framed structure

above 5 storeys and upto 10 2.00 0.03 5,000/- 20,000/-
storeys
-- e) RCC Framed structure

above 10 storeys and upto 2.25 0.035 5,000/- 20,000/-
15 storeys
016096 f) RCC Framed structure

above 15 storeys and upto 3.00 0.05 50,000/- 2,00,000/-
25 storeys
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017106 g) RCC Framed structure
30 storeys
--- h) RCC Framed structure

40 storeys
--- i) RCC Framed structure

50 storeys
--- j) RCC Framed structure

60 storeys
2. Theaters, Auditorium and Cinema Halls -
021041 a) Height not exceeding 22 m

and span not exceeding 10 2.00 0.02 3,000/- 10,000/-
m
022043 b) Height not exceeding 22 m

and span exceeding 10 m 2.00 0.03 5,000/- 20,000/-
023063 c) Height exceeding 22 m and

span not exceeding 10 m 2.25 0.03 10,000/- 40,000/-
024073 d) Height exceeding 22 m and

span exceeding 10 m 2.50 0.03 10,000/- 40,000/-
3. Factory sheds, Warehouses, Cold storages, Hangars –
031061 a) Other than RCC 2.25 0.02 10,000/- 40,000/-

construction
032041 b) RCC 2.00 0.02 5,000/- 20,000/-
033051 c) Hangars having walls of I)

RCC or ii) Rolled steel in 50 2.125 0.02 10,000/- 40,000/-
mm thick concrete or 100 mm
thick masonry with panel walls
of RCC, burnt bricks, stone or
concrete bonded in cement
and/or lime mortar and having
roof of combination of RCC
and GI/ Aluminium/AC Sheets
on steel RCC framework.
4. Chimneys, Silos and Cooling Towers (other than hyperbolic or natural draught type) TV Towers -
041072 a) Upto 15 m height and

exceeding 10 m diameter. 2.50 0.025 10,000/- 40,000/-
042115 b) Exceeding 15 m height and

exceeding 10 m diameter. 3.50 0.04 10,000/- 40,000/-
043128 c) Hyperbolic or Natural

draught cooling tower 4.00 0.105 1,00,000/- 2,00,000/-
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5. Roads –
051042 a) In townships only 2.00 0.025 5,000/- 20,000/-
052073 b) In Plain Areas 2.50 0.03 5,000/- 20,000/-
053095 c) In Hilly/Ghat areas 3.00 0.04 10,000/- 40,000/-

Notes – 1. Where value of culverts and Road bridges does not exceed 20 % of the contract value, the same may be deemed
as covered at the above rates. Where the value exceeds 20 %, the proposal shall be rated as per Tariff Item
‘Culverts and Canals’ (not involving works in water).
2. Where the tunnel value exceeds 10% of the contract value, a reference should be made to Tariff Advisory
Committee (Engg. sub-committee) for rate of premium to be charged in addition to the above rates.
061097 6 Interior decoration works 3.00 0.10 10,000/- 40,000/-
071042 7 Runways, Aprons and Air

Taxiways at Airports. 2.00 0.025 5,000/- 20,000/-
-- 8 Flyovers on Land -
081073 a) Span not exceeding 15 m 2.50 0.03 5,000/- 20,000/-
082095 b) Span exceeding 15 m 3.00 0.04 10,000/- 40,000/-

--- 9 Subways on Land –
091073 a) Width not exceeding 15 m 2.50 0.30 5,000/- 20,000/-
092095 b) Width exceeding 15 m 3.00 0.40 10,000/- 40,000/-
10. Road bridges on land made of –
101096 a) Steel 3.00 0.05 5,000/- 20,000/-
102116 b) RCC or Pre-stressed 3.50 0.05 10,000/- 40,000/-

concrete
103136 c) Other materials 5.00* 0.10* 20,000/- 80,000/-

* Provisional rates, reference to be made to TAC for final rate quotation.
11. Bridges on rivers/creeks, dams/coffer dams, aqua ducts, via-ducts, barrages, structure works in water –
111127 -- 6.00 0.10 1,50,000/- 5,00,000/-

Weir-cum-causeway
Note - In respect of bridges, the above rates will be applicable only when both sub- structure and super-structure are
covered. Otherwise reference should be made to the TAC.
12. (I) Reservoirs/Tanks of materials (Other than steel) –
121093 a) Surface and under ground 3.00 0.30 5,000/- 20,000/-
122115 b) Overhead 3.50 0.40 5,000/- 20,000/-
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(II) Reservoirs/Tanks of steel –
123062 a) Surface and under ground 2.25 0.025 5,000/- 20,000/-
124073 b) Overhead 2.50 0.03 5,000/- 20,000/-
13. Tunnels –
131157 I Above sea level 7.00 0.10 2,00,000 5,00,000
132167 II Below sea level 10.00 0.10 4,00,000 8,00,000
133147 -- Bridges on rivers/ creeks,

Dams, Coffer dams etc. 6.00 0.10 1,50,000 5,00,000
14. Laying of oil/gas pipelines -
140001 a) On Land Provisional rate Rs.15 per mille
140002 b) Under Sea or River Reference to be made to TAC for final rate quotation.
15. Water supply -
151043 -- Water Supply Installations for

housing colonies 2.00 0.03 3,000 10,000
including pump house with
pumps, valves and piping and
water supply lines but
excluding water storage tanks
Note - Laying of Water Pipelines Water Supply Scheme - to be rated as per EAR tariff (Cir. No. EAR/45/97-16 dated 11-
6-97)
16. Sewage disposal –
161043 -- System for Housing Colonies

including Pump house with 2.00 0.03 3,000 10,000
pump, sewage treatment Plant,
holding ponds, sewer/ drainage
lines and storm water drains &
Channels
171073 17 Underground and overhead

water storage tanks for 2.50 0.03 3,000 10,000
residential/ comm.- ercial
buildings and housing colonies
181013 18 Ground leveling and area

reclamation work 1.00 0.03 3,000 10,000
191011 19 Fixing of pre-cast RCC Parts

for buildings, construction 1.00 0.02 3,000 10,000
of compound wall and weather
sheds for existing building/
apartments
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201011 20 Other sundry works for
residential/ commercial 1.00 0.02 3,000 10,000
buildings like water proofing
plastering of walls
211137 21 All other risks not covered 5.00* 0.10* 20,000* 80,000*
above
221089 22 Under ground cable ducting 2.75 0.50 20,000 80,000
231128 23 Natural Draught Cooling 4.00 0.105 1,00,000 2,00,000

Towers
241116 24 Pile Foundations alone in

respect of buildings & other 3.50 0.05 1,00,000 2,00,000
structures
251087 25 Canals/ culverts (Not involving 2.75 0.10 20,000 80,000

works under water)
Note - Refer Item -5 (Roads) for canals / culverts forming part of the Road construction
260000 26 Railway Gauge conversion 3.00 0.03 10,000 40,000

(Meter gauge to Broad gauge)
270000 27 Acquaculture Project: Laying of HDPE Pipes/Accessories for Sea Water Intake Systems for
Acquaculture Project - to be rated as “Works in Water”
Note - Circular No Engg/Gen-24/2000-2 dtd 29-3-2000 - By this decision, it is allowed to cover the ‘Exclusion-C-Section-
1’ which excludes losses arising out of ‘breakage of glass’ among other things as indicated in the exclusion-c) by
payment of additional premium.
i) CAR rate so worked out as per tariff provision should be loaded by 25 %
ii) Excess on glass items shall be 10% of aggregate Sum Insured of all glass items.
Engg/Gen-24/2005/16 Date : November 14, 2005
Sub : Revision of the notes under the tariff item
“Roads – Sl. No. 5” of CAR Tariff.

It has been decided to revise the wordings of the notes under the tariff entry “Roads – Sl. No. 5”. The existing entry “Road – Sl. No.5” shall stand modified to read as below in view of the above
change :

5. Roads –
Excess – 5% of claim
Risk Sl.
Risk Premium Rates (%o) amount subject to
Code No.
minimum of Rs.
Minimum Addl. Rate Normal AOG/Major

Rate upto per month
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first 3 beyond 3
Perils/Collapse
months months
052073 b) In Plain Areas 2.50 0.03 5,000/- 20,000/-
053095 c) In Hilly / Ghat areas 3.00 0.04 10,000/- 40,000/-

Notes :
1) Where value of Culverts and Road bridges does not exceed 20% of the contract value, the same may be deemed as covered at the above rates. Where the value of Culverts and Road
bridges exceeds 20% but does not exceed 75%, the proposal shall be rated as per tariff item “Canals/Culverts (not involving works under water)’ with Risk code 251087
2) Where the value of Road bridges alone exceeds 75% of the total contract value, the Road bridges shall be rateable ‘per se’ under the tariff item “Bridges /Flyover on land (Sl. No.10)”.
3) Where the tunnel value exceeds 10% of the contract value Tunnels shall be rated under the tariff item “Tunnels and / or other civil construction therein (Sl. No.13)”.

Insurers are requested to inform their operating offices accordingly.
Asst. Gen. Manager & In-charge
Engg/Gen-4/24/2002-23 . 30th December, 2002

Re: Discount for higher excess under CAR/EAR Insurance of Projects
with S.I. less than Rs.100 crs.
Tariff Advisory Committee has revised the scheme for ‘Higher Excess Discount’ under
CAR/EAR Insurances as under.

Excess Discount in premium
2 times Normal Excess 5%
5" " 10%
10 " " 20%
20 " " 30%
30 " " 35%
40 " " 40%
50 " " 45%
100 " " 50%
>100 " " 55%

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The above scale shall also apply for opting ‘higher excess’ for Earthquake cover.
Engg/Gen-4 &24 /2003-11 7th April, 2003

Re: EAR and CAR Insurance: Projects with S.I. less than Rs.100 Crs.Higher Excess
Discount for Additional Covers
Reference is drawn to the ‘higher excess discount’ scheme as brought out in the
Committee’s Circular Engg/Gen-4/24/2002-23 dtd 30-12-2002, for projects with SI
less than Rs.100 Crs., under EAR and CAR insurance.
Arising out of an insurer’s request, the Tariff Advisory Committee has decided to
extend ‘higher excess discount’ as per the existing scheme on additional covers also.
The existing provision is amended to read as under:
Gen.Reg. 12-A: Higher Excess Discount Scheme for Projects with S.I. less than Rs.100 cr.
Higher Excess opted Discount Higher Excess opted Discount
2 times 5% 40 times 40 %
5" 10 % 50 " 45 %
10 " 20 % 100 " 50 %
20 " 30 % >100 " 55 %

30 " 35 %

NB: The scale of discounts shall apply for all additional covers when"higher excess" is opted.
Insurers are requested to make a note of the change and advise the operating offices
accordingly.
Secretary
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PART-II GENERAL REGULATIONS
1. JURISDICTION –
This applies to all Risks located in India, for which the value of the Civil Works involved is more
than 50 % of the total contract value.
2. SCOPE -
3. SUM INSURED -
For the purpose of these regulations the Sums Insured on the following items are to be taken into
account for arriving at total Sum Insured for CAR Insurance –
a) Marine (Imports)- Landed cost at site
b) Marine (Indigenous)- Landed cost at site
c) Cost of Construction
d) Permanent Civil Engineering Works
e) Half the escalated value, if escalation is opted for.
f) Preoperative expenses
4. MARINE/TRANSIT RISKS -
Where Marine/Transit Insurance connected with Contractor’s All Risks Insurance of any project is
placed in India simultaneously or later on in one combined policy or under separate policies, in one
department or in different departments, the matter relating to Contractors All Risks Cover is
required to be underwritten, subject to these General Regulations.
The loss due to breakage of glass can, however, be covered by payment of

additional premium as follows -
i) CAR rates so worked out as per tariff provisions should be loaded by 25 %

ii) Excess on glass items shall be 10 % of aggregate sum insured of all glass items.
5. SUB-CONTRACTS FORMING PART OF A PROJECT -
As regards Sub-Contracts forming part of a project, it is clarified that irrespective of whether the
project value has been broken into various sections and orders/contracts are placed with
different suppliers/contractors/Sub-Contractors OR the Insureds carry out the work themselves
departmentally, the Insurances for all such Sub-Contracts are subject of these General Regulations.
6. COMPUTATION OF PREMIUM
Premium shall be computed for the total period commencing from
i) Commencement of work OR
ii) Date of arrival of the first consignment at the site of erection
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whichever is earlier.
7. STORAGE RATE AT FABRICATORS PREMISES/WORKSHOP:
This is an extension to CAR Policy and can be covered.

Storage Rate – Re. 0.30 per mille per annum or part thereof
Excess Rs. 1500 each claim.
8. ADDITIONAL RATES FOR EARTHQUAKE (FIRE & SHOCK) PERILS -

Irrespective of the Sum Insured for CAR the following additional rates are to be charged over the
CAR Rate for risks located in Earthquake Zone (as defined in the Fire Tariff).
Zone Applicable rate (%o) per annum

Zone - I 1.00
Zone – II 0.50
Zone – III Nil
Zone – IV Nil
Notes -
a) These additional rates take care of Earthquake (Fire and Shock) perils only.
b) These additional rates are to be charged on pro-rata basis for period shorter than one year.
c) All Acts of God perils other than Earthquake (Fire and shock) are taken care of in the CAR
Rates prescribed. However no reduction in the rates can be allowed for excluding any of these
perils.
d) The Additional rates mentioned above (namely Rs.1.00 % per annum for risks located in
Earthquake Zone I and 0.50 % per annum for risks located in Earthquake Zone II) are to be
charged for the total CAR period (Including all extensions).
e) Earthquake cover is optional in both the Zones I & II but this cannot be opted mid-term or for
part of the total CAR period. Thus these extras (viz Rs.1.00 per mille per annum for Risks in
Zone I and Rs. 0.50 per mille per annum for risks in Zone II) are to be charged for total CAR
period (including all extensions).
9. MID-TERM INCREASE IN SUM INSURED DURING POLICY PERIOD -
In cases where the Sum Insured for CAR is required to be increased during the policy period, the
premium should be collected on the additional Sum insured at applicable CAR rates. It is not
permissible to charge pro-rata premium on such increased sum insured.
Mid-term increase in SI shall be affected only after the same has been recorded in the policy by the
Company before the occurrence of any claim.
In such cases no Volume Discount shall be applicable.
10. EXCESS FOR CLAIMS ARISING OUT OF ‘ACTS OF GOD PERILS’ –
a) Column No. 7 of the Part- I - Rate Schedule prescribes minimum excess amount for Collapse
Claims and Claims arising out of AOG Perils (viz. Earthquake/Fire and
Shock/Landslide/Rock-slide/Subsidence, Flood/ Inundation/ Storm/ Tempest/ Hurricane/
Typhoon /cyclone).
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For risks situated in Earthquake Zone I and II the minimum excess for claims arising out of AOG
perils shall be as under during the entire policy period (including all extensions) –
Zone – I Rs. 25,000/- per claim

Zone – II Rs. 10,000/- per claim
B) For risks situated in Earthquake Zone III and IV the minimum excess for claims arising out of
AOG perils shall be the excess prescribed in Column No. 7 of Rate Schedule.
The excess amounts shall apply separately to each incident giving rise to loss or damage and for
this purpose a incident shall not be considered to have terminated until there have been seven
consecutive days freedom from the perils concerned and only thereafter will this excess amount
apply afresh.
C) In respect of those CAR Risks located in Earthquake Zone I or II where clients do not require
the cover for Earthquake Perils, the excess amount applicable for all AOG perils other than
Earthquake (Fire and Shock) will be the same as prescribed in Column No. 7 of the Rate
Schedule.
D) In respect of those CAR Risks where the excess prescribed in Column No. 7 of the Rate
Schedule is higher than excess amounts prescribed above for Zone I and II (viz. Rs. 25,000/-
per claim for Zone I and Rs. 10,000/- per claim for Zone II) the higher of the two excesses should
be applied in respect of AOG Claims.
11. DISCOUNT FOR HIGHER EXCESS & VOLUME DISCOUNT -
A) All rates for Contractor’s All Risks Insurance are subject to minimum Excess per claim and
separately for (a) Normal (b) AOG/Collapse Claims as prescribed.
Discounts for opting Higher Excesses (both for Normal and AOG/Collapse Claims at the same
time) can be allowed in the CAR rate (as per Rate Schedule) as per the following Scale –
Excess Discount in Premium
2 times the minimum Excess 5%

5 times the minimum Excess 10 %
B) Earthquake rates and premiums for risks located in Earthquake Zones I and II are distinct from
the Rates and Premiums applicable to 'All Risks’ portions of the CAR Cover, it is permissible to
grant discount as per following scale in the Earthquake premium alone.
Earthquake Excess increased to - Discount in Earthquake premium

2 times the minimum Excess 5%
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Notes – 1. These discounts in the Earthquake premium only, can be allowed irrespective of
whether the increased Excesses for Normal/Collapse Claims are opted or not for
the CAR Cover.
2. The higher Earthquake Excess will qualify for discounts in the Earthquake premium
only and not in the CAR premium, for which the provisions under Item No. (A)
above would continue to apply.
C) The discounts applicable in the CAR Rate and/or the Earthquake premium as explained in (A)
and (B) above for selection of higher Excess amounts are also applicable, as under, during any
Extensions in the policy period -
i) in the extension Rates prescribed of the General Regulations; and

ii) in the additional rates during Extension period for Earthquake (Fire & Shock) perils
prescribed under General Regulations.
12. CLEARANCE AND REMOVAL OF DEBRIS -
The rate applicable for Contractor's All Risks cover is to be charged on the limit of Sum Insured fixed
for ‘Clearance and Removal of Debris'.
The Policy Excesses (Normal & AOG/Collapse) should apply for the 'Clearance and Removal of
Debris' claims.
13. THIRD PARTY LIABILITY COVER -

The rate as applicable for CAR Cover is to be charged for Third Party Liability Cover, upto the
following limits -
A) For Policies with sum insured upto Rs. 10.0 Crores -
Any one person;

Any one accident; Upto Rs, 1.00 Crore
During the entire period of CAR cover
B) For policies with sum insured above Rs. 10.0 Crores -
Any one person; 10 % of the completely erected value or Rs.

Any one accident; 10.0 Crores whichever is lower.
During the entire period of CAR cover
Notes -
i) Third Party Liability Insurance in excess of above-mentioned limits should be under written
in the Miscellaneous Department at the discretion of the Insurer.
ii) The Policy Excesses (Normal & AOG/Collapse Claims) should apply for Third Party
Liability Property Damage Claims.
iii) For Third Party Liability Claims arising out of Acts of God Perils the Excess applicable to
AOG claims should be applied.
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iv) The Sum Insured for TPL Cover cannot be reinstated after occurrence of a loss. The Tariff
extension rate shall apply for TPL cover also during extension period. When different
sections of the contract works are covered for different extension periods under the policy,
the highest of such Tariff extension rates shall be charged for TPL cover during extension.
v) The TP Liability cover cannot be granted during extended maintenance
14. SURROUNDING PROPERTY OF THE INSURED -
For covering the specified Surrounding Property of the Insured the rate applicable will be 50 % of the
CAR rate and this is to be charged on the limit of Sum Insured fixed for the Surrounding Property.
The Policy Excesses (Normal & AOG/Collapse Claims) should apply for Surrounding Property also.
15. ESCALATION PROVISION -
Escalation Benefit will be limited to a maximum of 50% of the sum insured for CAR (the escalation
limit may be expressed either in percentage or in amount) and will be permitted only once at the time
of inception of the CAR Policy.
Additional Premium is to be charged for Èscalation Provision' at the rates prescribed for CAR but on
the 50% of the amount of escalation. The method of premium calculation will be as under –
a) Assume the Project Sum Insured ... Rs. 4 Crores
b) Assume Escalation percentage is 10 % i.e. Rs. 40 Lakhs
c) Additional Premium to be charged at the
prescribed rate for CAR cover will be on 50
% of the Escalation Pro- visional cover i.e.
on. ... Rs.20 Lakhs
16. ADDITIONAL RATE FOR EXPRESS FREIGHT (AIR FREIGHT EXCLUDED) HOLIDAY
AND OVERTIME RATES OF THE WAGES -
The additional premium for covering Express Freight (Air Freight excluded), Holiday and Overtime
Rate of Wages, will be at the basic CAR Rate (excluding extras for Earthquake, etc.) to be applied on
the limit selected.
17. ADDITIONAL RATE FOR AIR FREIGHT ONLY – ( refer Endt. For Air Freight )
The Rate and excess as under shall be charged exclusively for items of Air Freight only and subject to
the limit selected by the Insured for Indemnity against Air Freight only –
Rate . . . 5 % on the amount of indemnity selected

Excess . . . 5 % of the Air Freight incurred per claim
The Endorsement Wording for covering the Air Freight will be as under --
‘It is hereby declared and agreed that the Policy shall also indemnify towards Air Freight incurred by
the Insured in connection with the idemnifiable loss under the Policy.
In consideration thereof an additional premium of Rs._______ is charged hereby. Limit of
indemnity shall be Rs.______ during currency of the Policy.
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Each and every claim shall be subject to a minimum Excess of 5 % of the Air Freight incurred over
and above the excess as applicable under the policy. Subject otherwise to terms, conditions and
exceptions of the policy’.
a) ADDITIONAL CUSTOM DUTY -
The cover for Additional Custom Duty will be subject to the following rates, terms and conditions -
a) the cover for Additional Custom Duty will be on First Loss Basis,
b) The specific limit for Additional Custom Duty-either in percentage or in amount - has to be
selected by the Insured at the inception of the Policy and can be reinstated in the event of loss,
c) The rate and excess will be as under -
Rate 2 % to be charged on the Additional Custom Duty amount selected.
Excess 5 % of the admissible Custom Duty incurred, in addition to the Excess amount
applicable for the affected item under the policy.
d) Following endorsement wording to be used for the purpose -
‘In consideration of the Insured having paid an additional premium of Rs._______, It is
hereby declared and agreed that the insured shall also be indemnified during the currency
of this policy, towards the additional Custom Duty amount of Rs.______ which may be
incurred by the Insured over and above the Custom Duty amount taken into account in
arriving at the Sum Insured of the affected item.
Each and every claim payable under this extension shall be subject to an Excess of 5 %of the
admissible Additional Custom Duty incurred and will be in addition to the excess amount
applicable for the affected item under the policy.
The Indemnity for such Additional Custom Duty will stand reduced after occurrence of the
claim unless reinstated by payment of an additional premium prescribed by the Company.
Subject otherwise to the terms, conditions and exceptions of the policy’.
18. CONSTRUCTION MACHINERY PLANTS AND EQUIPMENTS -
A separate Sum Insured is fixed for CPM equipments used for such projects.
i) Sum Insured of CPM does not exceed 5 % of CAR Sum Insured -
Where the Sum Insured for CPM equipments does not exceed 5 % of SI for CAR Insurance, or
Rs. 25 lakhs whichever is lower, the same can be covered under the CAR policy and at rates and
excesses applicable for CAR.
ii) Sum Insured of CPM exceeds 5 % of CAR Sum Insured -
Where the Sum Insured for CPM equipments exceeds 5% of SI for CAR Insurance, or Rs. 25
lakhs whichever is lower, the same should be separately covered under the Contractor’s Plant and
Machinery Insurance Policy and at rates and excesses as applicable for CPM Insurance.
19. RATES FOR EXTENSION BEYOND POLICY PERIOD -
Normal Period Rate per mille
i) 1 month or part thereof 0.30

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ii) Exceeding 1 month but not exceeding 2 months 0.50
iii) Exceeding 2 months but not exceeding 3 months 0.75
iv) Exceeding 3 months but not exceeding 6 months 1.20
v) Exceeding 6 months but not exceeding 9 months 1.75
vi) Exceeding 9 months but not exceeding 12 months 2.00
vii) Exceeding 12 months but not exceeding15 months 2.25
viii) Exceeding 15 months but not exceeding18 months 2.50
ix) Exceeding 18 months but not exceeding 21 months 2.75
x) Exceeding 21 months but not exceeding24 months 3.00
xi) 30 months* 3.00 + (30-24)/24 = 3.25
xii) 36 months* 3.00 + (36-24)/24 = 3.50
xiii) 42 months* 3.00 + (42-24)/24 = 3.75
xiv) 48 months* 3.00 + (48-24)/24 = 4.00
and so on for longer extensions.
* Circular no. Engg/Gen-4/24/2000-15, dated October 6, 2000

Irrespective of the number of extensions availed of by the Insured the above extension rates will
apply for each extension.
For risks located in Earthquake Zones Pro-rata extra of the additional rates for Earthquake
(Prescribed under Item No.7 of General Regulations will also apply for Extension Periods beyond
policy period, in addition to the Normal Extension Rates for CAR Cover prescribed above.
20. CLAIMS DISCOUNTS LOADING ON CAR EXTENSION RATES -
For all proposals having Sum Insured above Rs 100 Crores, loading/discount shall apply on extension
rates under CAR Tariff depending on the claims experience under the policy at the time of extension.
Claims experience as on date of extension Discount/Loading
Upto 10 % 20 %
more than 10 % upto 30 % 15 %
more than 30 % upto 60 % 10 %
more than 60 % upto 100 % Nil
more than 100 % upto 200 % + 10 %
more than 200 % upto 300 % + 20 %
more than 300 % + 30 %
Notes -
i) The above discount/loading for extensions to such policies will be applicable only to the project
risks with SI above Rs.100 Crores.
Extensions to project risks with SI below Rs.100 crores will not be eligible for any
discount/loading
ii) Maximum discount allowable on CAR rate is 60 % ie. The final rate after all discounts are
applied should not be less than 40 % of the basic CAR rate
21. MAINTENANCE VISITS AND EXTENDED MAINTENANCE COVER -
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The policy can be extended to cover the Maintenance Visits and Extended Maintenance. The
endorsement wordings and rates and excess for those will be as under -
i) Limited Maintenance Visits covers Cover -
In consideration of the payment of additional premium by the insured (which is included in the
total premium set forth in the schedule) it is hereby declared and agreed that the indemnity
provided by this policy is extended to include Maintenance Cover for the period of _______
months to be reckoned from the date of completion or handing over provided the policy period
has been extended till completion or handing over. However, during Maintenance Period this
Insurance shall cover solely loss of or damage to the contract works caused by the insured
contractor(s) in the course of the operations carried out for the purpose of complying with the
obligations under the maintenance provisions of the contract.
ii) Extended Maintenance Cover --
In consideration of the payment of an additional premium by the insured (which is included in the
Total Premium set forth in the Schedule), it is hereby declared and agreed that the indemnity
provided by the policy is extended to include Maintenance Cover for the period of
____________ months to be reckoned from the date of completion or handing over, provided the
policy period has been extended till completion or handing over. However, during the
Maintenance Period this insurance shall cover loss or damage to the contract works -
a) caused by the Insured contractor(s) in the course of the operations carried out for the purpose
of complying with the obligations under the maintenance provisions of the contract.
b) occurring during the maintenance period provided such loss or damage was caused on the
site during the erection period.
The rates and Excesses applicable for Maintenance Cover for 6 &12 months will be as under
–
Rate Rs. per mille

Cover
for 6 months for 12 months
i) Maintenance Visits Cover 0.25 0.50

ii) Extended Maintenance Cover 0.50 1.00
Note - Charging premium on pro-rata basis for periods less than 6 months, or 6 to12 months
shall not be allowed.
iii) ‘Extended Maintenance Cover’ (beyond 12 months) -
Extended Maintenance Cover could be given for any period longer than 12 months, as required
under the contract at the rates prescribed under the Tariff at present. i.e. Re.1.00 per mille per
annum. (Circular no. Engg/73-1/99/14, dated Sept. 28, 1999). This provision is effective from
1/10/99.
iv) Extension of CAR Policy for Maintenance Visits and Extended Maintenance Cover
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In case deletion of Maintenance Visits/Extended Maintenance Cover availed at the inception of
CAR policies before attachment of the risk, refund of premium may be given by retaining 25 %
of the premium under this extension. In case the risk is attached no refund shall be allowed for
deletion of Maintenance Visits/ Extended Maintenance Cover.
22. REFUND OF PREMIUM FOR EARLY COMPLETION OF THE PROJECT -
Refund of premium, arising out of cancellation of policies under CAR insurance due to abandonment
of project, double insurance of same project etc. or refund of premium due to early completion earlier
than the period mentioned in policy Schedule (including testing in respect of CAR policies) whether
rated by the Insurer or TAC can be allowed provided the following conditions are fulfilled (Circular
no. Engg/Gen-4-III/Gen-24-VII/99-4, dated Feb. 24, 1999)–
i) The period of insurance is 18 months and above;

ii) Notice for early completion being given in advance to the insurer before completion of the
project.
iii) claims experience under the policy being less then 60
iv) The original policy period is not exceeding the contract period as per contractual clause. In the
absence of the existence of the contract, the scheduled project period as per original bar chart
should be the policy period.
The minimum period for which refund can be claimed shall be 3 months.
23. REFERENCE TO Tariff Adv. Committee (TAC) -
Any proposal on Contractor's All Risks Insurance with sum insured upto Rs.1,500 crores shall be
rated as per Tariff. Reference will be made only in case of doubt.
24. PROVISIONAL RATE QUOTATIONS FOR CAR INSURANCE (HAVING SUM-INSURED

OVER RS.100 CRORES) -
Provisional Quotations (if any) to the clients for CAR Insurances having sum insured upto Rs. 1,500
Crores to be made on the following basis of these General Regulations and a reference to be made to
TAC (Engineering Sub-Committee) for final fixing of rates and terms.
25. PROVISIONAL RATE -
Any Provisional Rate Quotations for CAR Insurances having Sum Insured upto Rs.1500 crores, not
consistent with the above, will be treated as breach of Tariff and dealt with accordingly.
26. BREACH of TARIFF -
Any Rate Quotations for CAR Insurances not consistent with this Tariff will be treated as Breach of
Tariff and dealt with accordingly.
27. GROSS RATES -
All Rates specified in the Tariff are Gross Rates and Agency Commission (or discount in lieu of
Agency Commission) can be allowed from these Gross Rates, as per Rules Prescribed by General
Insurance Corporation of India from time to time.
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1-1-01
Engg/Gen-4/24/164/2001/15 4th May,2001
Re: Rating of Large Projects - Design Defect Cover
Reference is drawn to "Guidelines" issued by Tariff Advisory Committee relating to "Rating of
Large Projects" with Sum Insured above Rs.100 crs. and below Rs.1500 crs. as brought out in
the TAC Circular Engg/164/99-6 dtd.26th Feb.99 and the clarification vide Cir.No.
Engg/Gen/4/24/164/2001/7 dtd.1-1-2001.
Representations have been received in general on providing `design defect’ cover, which is a
standard exclusion under CAR policy. It was decided to issue the ‘design defect’ cover as under
for both EAR and CAR proposals.
Design Defect
Additional Rate Excess Remarks
Cover as Per
Not applicable as it is Not applicable as the

DE-1 of Munich Re -
already excluded basic cover excludes
DE-2 of Munich Re 5% of basic SCE rate 5 times AOG excess -
DE-3 of Munich Re 10% of basic rate -do- -
To be restricted only
DE-4 of Munich Re 15% of basic rate -do-
to EAR proposals.
DE-5 of Munich Re To refer to Committee To refer to Committee -
It was also decided that the relevant provision for "Design Defect Cover" as per Munich Re DE
4" as appearing under the above referred circular Engg/Gen-4/24/164/2001/7 dtd.1-1-01 on
"Rating of Large Project is restricted to "Erection All Risks" only.
The above decision is effective from 4th May, 2001.
Secretary
---------------------------------- 34
1-1-01
ANNEXURE
ENDORSEMENTS -
Following endorsements shall be attached to the policies whenever applicable -
1. PIPELINE CONSTRUCTION -
Notwithstanding the conditions and provisions and endorsements of the policy, it is understood and
agreed that the following special conditions shall apply -
a) Excavated material shall be deposited at least one meter away from the trench.
b) The length of trenches totally or partially opened at any one time shall never exceed in respect of
any one work face __ meters all work faces’ combined total ____ meters.
c) Pipe shall be secured against heaving or floating up by covering them sufficiently and as soon as
practicable.
d) The open ends of pipes shall be provisionally sealed at the end of each working day or in the
event of immediate danger of flooding, otherwise expenses for clearing and cleaning of
mud-filled pipeline sections shall not be indemnified.
e) Loss or damage arising from pressure testing producing tensions exceeding the yield point
guaranteed by the manufacturer shall not be covered.
f) Loss of testing media shall not be covered.
g) Cost incurred in searching for leaks are indemnified -
- up to but not exceeding the limit per event of ________________
- up to an aggregate limit for the policy period of ________________
however only if the leaks are a consequence of an insured event.
h) The Insurer is not liable for any claims due to pollution from any cause whatsoever.
2. EXCLUSION OF LOSS OF STABILISING FLUID -
Notwithstanding the conditions, provisions and other endorsements of the policy, it is agreed and
understood that the Insurers shall not be liable to indemnify the Insured in respect of loss of bentonite
or other stabilising fluid even if the quantity of losses originally expected is exceeded.
3. ROAD CONSTRUCTION --
It is hereby warranted and agreed that, notwithstanding anything contained in this policy to the
contrary, the following special conditions shall apply -
---------------------------------- 35
1-1-01
The length of the working area (excavation and construction of coffer etc., however except final
surfacing) shall never exceed _____ meters at any work face and a total of _______ meters at all
work faces combined.
4. PILING CONSTRUCTION -
Notwithstanding the conditions, provisions and other endorsements of the Policy, it is agreed and
understood that the Insurers shall not be liable to indemnify the Insured in respect of -
a) Loss of or damage to piles and/or casings due to misplacement, jamming and/or extraction
thereof.
b) Costs incurred in case of abandoned piling work, for any reasons not related to accidental loss or
damage and mainly due to unforeseen ground conditions when piles cannot be driven to the
required depth.
5. ABANDONMENT OF SHAFTS -
It is hereby agreed and declared that, notwithstanding anything contained in the contrary, this
endorsement excludes any loss or damage resulting as a consequence of shaft being abandoned due to
any reason whatsoever.
6. CROPS, FORESTS, CULTIVATED AREAS -
Notwithstanding the conditions, provisions and other endorsements of the Policy, it is agreed and
understood that the Insurers shall not be liable to indemnify the Insured in respect of any loss, damage
or liability directly or indirectly caused to crops, forests and/or other cultures during the execution of
the contract works.
7. EXISTING UNDERGROUND CABLES -
Notwithstanding the conditions, provisions and other endorsements of the Policy, it is understood and
agreed that the following special conditions shall apply -
The Insurers shall not be liable under the Policy to indemnify loss or damage to existing underground
cables or pipes of any kind (electric cables, telephone cables, water and gas pipes, sewers and other
pipelines, etc.) unless prior to the commencement of works -
- the Insured had requested and obtained from the public authorities or the owners of such an
underground system the exact position of all cables or pipes.
- the Insured had traced their existence and indicated location.

The indemnity shall in any case be restricted to the repair costs of such cables or pipes. Any
consequential damage shall be excluded from the policy cover.
8. CONTRACT WORKS TIME SCHEDULE -
Notwithstanding the conditions, provisions and other endorsements of the Policy it is understood and
agreed that -
---------------------------------- 36
1-1-01
a) The contract works time schedule together with plans, documents and specifications supplied and
any other statements made by the Insured with respect of works programme is deemed to be
incorporated herein.
b) The Insurers shall not indemnify the Insured in respect of loss or damage caused by, or arising
out of, or aggravated by deviations from the contract works time schedule exceeding four weeks,
unless the Insurers had agreed in writing to such a deviation before a loss occurred.
This memo applies only to the dam works during period of river diversion.
9. TEMPORARY ACCESS ROADS -
Irrespective of the periods of Insurance specified in the Policy, the Insurer will indemnify the Insured
only for unforeseen accidental loss or damage to temporary access roads insured under the Policy if
such loss or damage occurs prior to such roads being completed or taken into use for their purpose by
the contractors, whichever takes place first.
10. SPECIAL CONDITIONS CONCERNING THE CONSTRUCTION OF DAM AND WATER

RESERVOIR -
It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions
contained in Policy or endorsed thereon the Insurers will not indemnify the Insured in respect of -
 grouting of soft rock areas and/or other additional safety measure even if their
necessity arises only during construction,
 expenses incurred for dewatering even if the quantities of water originally
expected are exceeded substantially,
 loss or damage due to breakdown of the dewatering system if such breakdown
could have been avoided by sufficient stand-by facilities,
 expenses incurred for additional sealing or water proofing and additional facilities for the
discharge of run off and or underground water,
 expenses incurred for the repairs of eroded slopes or other graded areas, if the Insured
has failed to take the measures required or to take them in time,
 loss or damage due to subsidence if caused by insufficient compacting, cracks and leakage
not caused by Insured peril.
11. SPECIAL CONDITIONS CONCERNING SAFETY MEASURES WITH RESPECT TO

PRECIPITATION, FLOOD AND INUNDATION -
It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions
contained in the policy or endorsed thereon, the Insurers shall indemnify the Insured for loss, damage
or liability caused directly or indirectly by precipitation only if adequate precautions have been taken
in designing and executing the project involved.
In this context, adequate precautions shall mean that allowance is made for precipitation, flood and
inundation up to a return period of 10 years for the location insured and the entire policy period on
the basis of statistics prepared by the Meteorological agencies.
Loss, damage or liability resulting from the Insured’s not immediately removing obstruction (e.g.
sand, trees) from watercourses, whether carrying water or not, in order to maintain free water flow
shall not be idemnifiable.
---------------------------------- 37
1-1-01
12. SPECIAL CONDITIONS CONCERNING REMOVAL OF DEBRIS FROM LANDSLIDES -
13. ENDORSEMENT FOR ESCALATION PROVISION –
For Endorsement Wording – Refer Endt. No. ……………

‘In consideration of the payment of an additional premium of Rs. _______. It is hereby declared and
agreed that the Company shall provide for escalation in Sum Insured under items of Section I of the
schedule attached to the policy upto__________% of the Original Site value, the basis of claim
settlement shall be the original Site value of effected equipment plus increase in cost of replacement,
if any, provided that the increase in the value of such equipment does not exceed _______% of the
original site value.
It is also hereby declared and agreed that in the event of a claim the insured would be considered as
fully insured upto the Sum Insured inclusive of _________% increase as per selected escalation and
under-insurance would apply only in the event of the cost of replacement of the effected equipment
exceeding the original value of selected ___________% towards escalation.
It is however understood and agreed that the premium collected against price escalation herein above
shall not be subject to refund the premium adjustment clause in the memo 2 of the policy.
It is further understood and agreed that in case of additional premium chargeable during final
adjustment, additional escalation premium will be charged to the insured but in case of any premium
refundable during final adjustment no refund shall be allowed against the escalation premium already
charged to the insured’.
ANNEXURE-I
NORMS FOR RATING OF LARGE MCE/EAR/SCE/CAR PROJECTS WITH SUM

INSURED ABOVE Rs.100 CRS. AND UPTO Rs. 1500 CRS.
All proposals in respect of projects valued above Rs.100 Crs. and upto Rs.1500 Crores will be rated as per
the norms contained below.
1. Compute basic rate as per EAR/SCE/CAR tariffs without application of discounts.
2. Apply Volume discount on the basic rate as per following Scale:-
Sum Insured discount(%)
Above 100 Crores & upto 350 Crs. 10

Above 350 Crs. & upto 700 Crs. 15
Above 700 Crs. & upto 1500 Crs. 22 ½
---------------------------------- 38
1-1-01
‘Sum Insured’ should be the aggregate of the following items only as is existing in the Committee’s
EAR/SCE/CAR Tariff.
A) Marine (Imports) - Landed cost at site

B) Marine (Indigenous) - Landed cost at site
C) Cost of Erection/Construction
D) Permanent Civil Engineering Works
E) Half the escalation value if escalation is opted for.
3. Apply Voluntary Excess Discount on the net rate arrived as in (2) above, as per the
following scale:
Voluntary Excess Discount
2 times compulsory excess 5%

5 times -do- 10%
10times -do- 20%
20times -do- 30%
30times -do- 35%
40times -do- 40%
50times -do- 45%
100 times -do- 50%
More than 100 times compulsory Excess55%
N.B: Net discounted EAR/SCE/CAR rate shall not be less than 30% of basic
rate so arrived as in (1) above.
4. Adjust the net rate as arrived in (3) above, by addition/subtraction of the following additional
extras/reductions corresponding to various additional covers listed in the Annexure - 2 to arrive at the
overall net rate.
Extra rates for additional covers:
GROUP CODE EXTRA RATES

‘0’ Nil
‘A’ 0.05 per mille
‘B’ 0.10 per mille
‘C’ 0.15 per mille
‘D’ 0.20 per mille
5. For any additional cover, not listed in the Annexure-2, reference may be made to Committee.
6. Rating of DSU/ALOP Proposals: All proposals where the sum Insured is

above Rs.100 Crs. and upto Rs.1500 Crs should necessarily be rated as per
these norms, irrespective of DSU/ALOP covers. Only the rating of DSU/ALOP
covers stand outside the purview of the Committee.
7. Projects valued in excess of Rs.1500 Crs. can be rated on the basis of Re-
---------------------------------- 39
1-1-01
insurance quotes. In other words, projects valued in excess of Rs.1500 Crs. go
out of Tariff.
******
ANNEXURE II
Additional Covers Limits Rating Group Rate per

Code mille
(1) (2) (3) (4) (5)
a) Owners’ surrounding property Upto 10% of policy SI without
N.B: If the cover is required during FLEXA risks:--- A 0.05
the maintenance period also, the
extras applicable for each group Upto 10% of policy SI with
shall be loaded by 10% FLEXA risks B 0.10
Above 10% of Policy SI but

without FLEXA Risks C 0.15
Above 10% of policy SI but

with FLEXA risks D 0.20
b) 50/50 clause O Nil
c) 72 hrs. clause O Nil
d) Free automatic reinstatement clause Upto 10% of SI…. O Nil
Above 10% and

upto 50% of SI A 0.05
Above 50% and

upto full SI B 0.10
e) Loss minimisation expenses O Nil
f) Debris Removal limit per Upto Rs.50 lacs O Nil

occurrence
---------------------------------- 40
1-1-01
Above 50 lacs and upto
Rs.10 Crs. A 0.05
Above Rs.10 Crores and

upto Rs.25 Crs. B 0.10
Above Rs.25 Crs. C 0.15

g) Professional Fees O Nil
h) Cover for offsite storage/fabrication A 0.05
Additional Covers Limits Rating Group Rate per

code mille
(1) (2) (3) (4) (5)

i) T.P.L. Cover i)AOA limit upto Rs.10 cr. A 0.05
With or without Cross Liability
extension within geographical ii)AOA limit above Rs.10 cr.
limits of India but upto Rs.25 Cr. B 0.10
iii)Above 25 Cr…separate
cover to be issued -- --
TPL Cover during Maintenance 25% loading on the above

period rates
j) Waiver of contribution clause N.B.:This should be restricted
between Principal and the
contractor and should not be O Nil
waived for others.
k) Escalation costs Upto 10% of policy SI… A 0.05
Above 10% of policy SI

and upto 50% B 0.10
l) Waiver of Subrogation Clause A 0.05
m) Expediting cost including Air Upto 30% of net claim
Freight and Express Freight amount 0 Nil
Beyond 30% A 0.05
n) Extended (for every 12 months or A 0.05
maintenance cover part thereof)
o) Continuity of cover during (for every month or part
operational phase for Unit/Plant thereof)
tested but awaiting integral testing D 0.20
(along with other units/Plants)
p) Design Defect cover as per ‘D’4
wording of Munich Re D 0.20
q) Amendment in Fire fighting
endorsement wording O Nil
r) Additional Custom duty Upto Rs.10Cr…. O Nil
Rs.10 Cr. To Rs.30 Cr. A 0.05
Beyond Rs.30 Cr. C 0.15

s) Wilful negligence Not to be covered at any cost -- --
---------------------------------- 41
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---------------------------------- 42
1-1-01
Engineering Circulars :
ALL ENGINEERING CIRCULARS IN 2001

Sl Circular No. Date of Effective Subject
no Circular Date
1 Engg/Gen-4/55/ 01/01/01 01/01/01 Rating of “Wind” Turbine Generator Sets under EAR/SCE
2001/1 Policy
2 Engg/Gen-10/ 01/01/01 01/01/01 Amendment in MI Tariff pertaining to the equipment under
2001/2 Group IV “Fertilizer Plants/Petrochemical Plants/Refineries”
3 Engg/Gen-4/ 01/01/01 01/01/01 EAR insurance - tariff entry on ‘Precious metals --- Refining &
2001/3 Fabrication plants.
4 Engg/Gen- 01/01/01 01/01/01 Bonus Malus Scheme for Operational Policies in Engg. Insc.-
10/16/17/ 2001/4 MB/CPM/EEI Covers
5 Engg/Gen-4/30/ 01/01/01 01/01/01 EAR Insurance: “Combined Cycle Power Plants” - Rating of
2001/5 Gas Turbines while in open - Cycle mode, awaiting integrated
testing with Steam Turbine.
6 Engg/Gen-62/ 01/01/01 01/01/01 Excess under DOS Insurance Policy (Potatoes)
2001/6
7 Engg/Gen- 01/01/01 01/01/01 Rating of Large Projects -’Guide Lines’
4/24/164/ 2001/7
8 Engg/Gen-4/55/ 12/01/01 01/01/01 Rating of “Wind” Turbine Generator Sets under EAR/SCE
2001/8 Policy-correction to Cir No. -1 dt. 1/1/01
9 Engg/Gen-6/ 27/03/01 31/03/01 Rating of MLOP Proposals - Provisional rates
2001-9
10 Engg/Gen-6 28/03/01 31/03/01 Rating of MLOP Proposals - Provisional rates
/2001-10
11 Engg/Gen-64/ 04/04/01 --- Comprehensive Package Policy to provide Seamless Cover
2001-11 during project and operational stages
12 Engg/Gen-6/ 18/04/01 ---- Rating of MLOP Proposals - Provisional rates
2001-12
13 Engg/Gen-6/ 26/04/01 Rating of MLOP Proposals by TAC
2001-13
14 Engg/Gen-4/55/ 04/05/01 04/05/01 Bonus Malus Scheme under MB/CPM/EEI and DOS Policies
2001/ 14
15 Engg/Gen- 04/05/01 04/05/01 Rating of Large Projects - Design Defect Cover
4/24/164/
2001/15
16 Engg/Gen- 04/05/01 04/05/01 EEI Insurance - Discount for covering Standard Fire & Special
4/24/164/ Perils
2001/16
17 Engg/Gen-4/24/ 04/05/01 04/05/01 Bonus Malus Clause under EAR/CAR Insurance for Policy
2001/ 17 Period Extensions
18 Engg/Gen- 04/05/01 04/05/01 ‘Higher Excess Discount’ Scheme under MB, CPM, & EEI
10/17/16/ Policies at par with scheme under EAR, CAR Policies.
2001/18
19 Engg/Gen-10/ 04/05/01 04/05/01 Rating of “pumps handling water” and “all other pumps
2001/19 including Boiler Feed Water Pumps” under Group IV : Fertiliser
Plants, Petrochemical Plants & Refineries” Section of MB
Insurance Tariff
20 Engg/Gen-10/ 04/05/01 04/05/01 MB Insurance - Extension of Time Span between Overhaul
2001/20 and/or open Inspection of Turbines & Turbo - Generators.

---------------------------------- 43
1-1-01
21 Engg/Gen- 04/05/01 ---- Rating of Large Projects - ‘Wordings for Endorsements.
4/24/164/
2001/21
22 Engg/Gen-10/ 13/06/01 Insurance of “Photo Copier Machines” under MB
2001/22 Insurance
23 Engg/Gen-17/2001/23 13/06/01 13/06/01 Rates applicable to “stringing equipment” consisting of
hydraulic puller and hydraulic tensioner machines under
CPM policy.
24 Engg/Gen-
10&17/2001/24
13/06/01
MB Insurance for Asphalt Mixing & Recycling Plants
25 Engg/Gen- 13/06/01 01/01/01 Erection All Risks Insurances of “Combined Cycle Power
4/30/2001/25
Plants” - Rating of Gas Turbines while in Open Cycle
Mode and awaiting integrated testing with Steam Turbines
26 Engg/Gen-16/2001/26 13/06/01 13/06/01 Electronic Equipment Insurance :
A) Excess for Personal Computers
B) Insurance of VSAT Eqpt.
C) Insurance of Medical Eqpt.- Additional “Endorsement”
27 Engg/Gen-10/2001/27 13/06/01 13/06/01 Rating of ‘Passenger lift’ under MB tariff
28 Engg/Gen-16/2001/28 3/08/01 Additional covers under EEI/CPM/BPP policies
29 Engg/Gen-16/2001/29 3/08/01 3/08/01 Additional Customs Duty Cover as an extension to Erection All
Risk/Contractor’s All Risk Policies
30 Engg/Gen-4/Gen- 3/08/01 3/08/01 Rating of Large Projects - (1) Cover for ‘Valuable Documents’(2)
164/30 Clarification on ‘Workstoppage’ Cover
31 Engg/Gen-17/2001/31 3/08/01 3/08/01 Contractor’s Plant and Machinery Insurance Rating of Thermoplastic Line
Marking Machine -
32 Engg/Gen-16/2001/32 3/08/01 3/08/01 Insurance of System Software - EEI Policy
33 Engg/Gen-10/2001/33 3/08/01 3/08/01 "Third Party Liability" extension under Annual Engg.Insurances
34 Engg/Gen-16/2001/34 3/08/01 3/08/01 Excess under EEI Policy for "WINCHESTER DRIVES"
35 Engg/Gen- 3/08/01 3/08/01 Endorsement for expenses for foreign personnel under all Engineering
10/4/24/2001/35 Policies
36 Engg/Gen-4/2001/36 3/08/01 3/08/01 Additional Covers under Erection All Risks Policiess for projects with Sum
Insured less than Rs.100 cr.
37 Engg/Gen- 3/08/01 3/08/01 Seasonal discount under Machinery Insurance Policy
10/12/2001/37

ENGG/Gen-4/55/2001/1 1st January,2001
Re: Rating of "Wind" Turbine Generator Sets under EAR/SCE Policy.
Reference is drawn to the tariff item "Wind Turbine Generators" under Part-I:Rating Schedule
for Erection All Risks Insurance for rating of Wind Mill Turbine Sets having individual capacity
not exceeding 250KW.
The Tariff Advisory Committee has decided to introduce rates for higher capacity Wind Turbine
Sets as under.
PART I : RATE SCHEDULE FOR ERECTION ALL RISK INSURANCE
(All Rates are in Rupees per mille)
Risk Sl. Description Rate for Rate for Rate for Rate for Excess per
claim is
No. No. 1st month + 1 month 1 month 1 month or 5% of
1 month part thereof claim
for testing
---------------------------------- 44
1-1-01
amount
or part subject to
period minimum
or part
thereof extension of
thereof ,for
Testing within Rs............
subsequent for period policy Normal/
10 months exceeding period
12 months Testing
periods
1 2 3 4 5 6 7 8
6 Wind Turbine Generators
Individual
20000/
capacity not
210606 (i) 3.00 1.10 0.05 0.4
exceeding 50000
250KW
Above
250KW & 40000/
210608 (ii) 3.50 0.10 0.05 0.4
upto 100000
400KW
80000/
Above
210610 (iii) 4.00 0.10 0.05 0.4
400KW 200000
This decision will be effective from 1st January , 2001.

Secretary
GO TO INDEX
ENGG/Gen-10/2001/2 1st January , 2001.

Re: Amendment in MI Tariff pertaining to the equipment under Group IV
"Fertilizer Plants/Petrochemical Plants/Refineries".
Reference is drawn to the provision under Machinery Insurance Tariff-Section 4.4- Group-IV
related to Major Equipment in Fertilizer Plants/Petrochemical Plants/Refineries for rating of
"Utility Compressors". It has been decided that the "drives" of Utility Compressors shall also be
rated under the same section of the tariff, at par with those of "Utility Compressors" similar to
those drives of "Process Compressors".
---------------------------------- 45
1-1-01
It was decided to reword the relevant tariff item as under:-
Risk Code Item Rate% Remarks
b) Utility Compressors

including their drives.
400318 (i) Turbine Driven 1.75
400416 (ii) Motor Driven 1.50
The decision is effective from 1st January, 2001.

Secretary
GO TO INDEX

Re: EAR Insurance:Introduction of new Tariff entries
The Tariff Advisory Committee has decided to introduce a new Tariff entry for rating of
"Precious Metals (Platinum, Gold, Silver etc.) Refining and Fabrication Projects" at the
following rates and terms under Erection All Risks Insurance Tariff.
Excess
per claim
Rate for
is 5% of
Rate for 1 month or
Rate for claim
1 month part thereof
Rate for 1 month amount
or part for testing
Risk Sl. 1st month + or part subject to
Description thereof period
No. No. 1 month thereof ,for minimum
for period extension
Testing subsequent of
exceeding within
10 months Rs..........
12 months policy
Normal/
period
Testing
periods
1 2 3 4 5 6 7 8
15000/
140102 18 Precious 2.25 0.05 0.30
40000
Metals,
(Platinum, 0.025
gold, Silver
etc.)Refining
&
---------------------------------- 46
1-1-01
Fabrication
Plants.
This decision will be effective from 1st January, 2001.

Secretary
GO TO INDEX
ENGG/Gen-10/16/17/2001/4 1st January , 2001.

Re: Bonus Malus Scheme for Operational Policies in Engg. Insc. - MB/CPM/EEI Covers.
Reference is drawn to our circular No. Engg/Gen-10/16/17/2000/6 dtd. 3rd May, 2000,
informing the decidion to consider claims experience discount/loading on MB/CPM/EEI
Policies, based on 2 years claims experience only including that of expired policy.
It has now been decided to revert back to the earlier provision of considering claims experience
data for 5 years preceeding the expired policy, as was introduced vide circular No. Engg/Gen-
10/Part III dtd.27-8-91.
Further it was also decided to revise the Bonus/Malus Scheme as under.
BONUS MALUS SCHEME IN ANNUAL ENGINEERING POLICIES-MB/CPM/EEI
COVERS
Average claims Ratio in %

for 5 years preceding the Discount % Loading %
expiring policy period
up to 5 30
Above 5 & upto 15 25
15 30 20
30 40 15
40 45 10

45 50 5
---------------------------------- 47
1-1-01
50 60 Nil Nil
60 80 5
80 100 10
100 125 15
125 150 20
150 200 35
Beyond 200 Committee to decide

Secretary
GO TO INDEX
ENGG/Gen-4/30/2001/5 1st January , 2001.

Re: Erection All Risks Insurance: "Combined Cycle Power Plants" - Rating of Gas
Turbines while in, Open - Cycle mode, awaiting integrated testing with Steam Turbine.
Reference is drawn to rating of "Gas Turbines/Combined Cycle Power Plants" under Erection
All Risks Insurance.
Arising out of a query as to how to rate the "Open Cycle Mode" of an already erected Gas
Turbine but awaiting integral testing with Steam Turbine which is under final stages of erection
and awaiting testing for Combined Cycle Mode with the Gas Turbine, the Committee has
decided to rate "Open Cycle Mode" as under:-
i) Gas Turbines which are covered under separate policies, have to be considered operational and
the SCE/MCE cover cannot be extended to cover such Gas Turbines, during Open Cycle Mode.
---------------------------------- 48
1-1-01
ii)In those cases where both Gas Turbines and Steam Turbines Sets are covered under the same
MCE/SCE policy for a common period of insurance, the policy can be extended to cover Open
Cycle Mode of Gas Turbines at following rates:
Within Policy Period -------- 1.00 per mille per month or part thereof
Secretary
GO TO INDEX

Re: Excess under DOS Insurance Policy (Potatoes).
The Tariff Advisory Committee decided to revise, the tariff provision in regard to ‘Excess’ under
DOS Insurance as under:-
"The compulsory deductible franchise in each and every stock deterioration
policy for both new and old cold storage (Potatoes) shall be as under:-

(a) in respect of those cold storages who have opted for FOES extension -
20% of the claim amount subject to a minimum of Rs.20,000/-.

(b) in respect of those cold storages who have not opted for FOES extension -
10% of the claim amount subject to a minimum of Rs.20,000/-.
Secretary
GO TO INDEX
ENGG/Gen-4/24/164/2001/7 1st January , 2001.

Re: Rating of Large Projects
the TAC Circular Engg/164/99-6 dated 26th Feb.99.
Representations have been received seeking clarifications and review of certain clauses in the
‘guidelines’. It was decided to clarify as under.
1. Sum Insured
---------------------------------- 49
1-1-01
As different practices are being followed in computing the Sum Insured for eligibility criteria, it
is clarified that "Sum Insured" should be aggregate of the following items only, as is existing in
the Committee’s EAR/CAR tariff.
E) Half the escalation value if escalation is opted for
Policy-wise Sum Insured should only be considered.
2. Deletion of Word ‘Guide’ appearing in the circular
It was decided to delete the word "guide" appearing in the circular, (referred above) as the "guide
norms" referred to in the circular gave an impression that the norms were not binding and
insurers could still deviate. These norms were mandatory to be followed as such the word ‘guide’
is being deleted.
3. Volume Discount
Following slabs of Sum Insured were to be deleted from the table showing Sum Insured and
Volume Discount, as these were irrelevant.
Upto 100 cr. NIL
Above 1500 cr. 25%
Above 2500 cr. 30%
4) DSU/ALOP Proposals
It was pointed out that the wordings as provided in Ruling 6 of Ànnexure’ to the circular, gave
an impression that any project policy having an additional cover of DSU/ALOP would go out of
purview of the rating norms even if the Sum Insured was within the eligible criteria.
It was clarified that all proposals where the Sum Insured was above Rs.100 cr. and upto 1500 cr.
should necessarily be rated as per the norms of the circular, irrespective of DSU/ALOP covers.
Only the rating of DSU/ALOP covers were outside the purview of the tariff.
5. Additional Covers not listed in the Circular
It was decided that for additional covers not listed in the circular the insurers should refer the
cases to the Committee.
6. Annexure - I - Details of Additional Covers
---------------------------------- 50
1-1-01
It was decided to agree to the suggestions for a few changes in the existing wordings of the
additional covers as shown in Annexure - I for the sake of clarity.
7. Endorsements for additional covers
It was decided that ‘endorsement’ wordings should be reworded in line with those prevailing as
per international practices.
8. The Modified/Revised Circular incorporating all the changes, that are agreed upon is as
under.
Following provisions as listed out in TAC’s circular Engg/164/99-6 dtd.26th Feb.99 have been
revised as under.
Proposals in respect of projects valued above Rs. 100 crs. and upto Rs. 1500 crs. will be rated
1.
as per the norms contained in Annexure I/II..
2. Projects valued in excess of Rs. 1500 crs. could be rated on the basis of Re-insurance quotes.
In other words project valued in excess of Rs. 1500 crs. go out of Tariff.
3. As regards projects with Sum Insured Rs. 100 crs. and less. The provisions of the tariff shall
continue to apply.Insurers will continue to rate such proposals as per tariff provisions.
The above provisions are effective from 1st January, 2001.
Secretary
ANNEXURE - 1
NORMS FOR RATING OF LARGE MCE/EAR/SCE/CAR PROJECTS
WITH SUM INSURED ABOVE Rs.100 CRS. AND UPTO 1,500 CRS.
1. Compute basic rate as per EAR/SCE/CAR tariffs without application of discounts.
2. Apply Volume Discount on the basic rate as per following Scale.
Sum Insured Discount (%)
Above 100 crs. & upto 350 crs 10
Above 350 crs. & upto 700 crs 15
Above 700 crs. & upto 1500 crs 22½
‘Sum Insured’ should be the aggregate of the following items only as is existing in the
Committee’s EAR/CAR Tariffs.
---------------------------------- 51
1-1-01
E) Half the escalation value if escalation is opted for
Apply Voluntary Excess Discount on the net rate arrived as in (2) above, as per the following
3.
Scale.
Voluntary Excess Discount
2 times Compulsory excess 5%
5 times - do - 10%
10 times - do - 20%
20 times - do - 30%
30 times - do - 35%
40 times - do - 40%
50 times - do - 45%
100 times - do - 50%
More than 100 times Compulsory Excess 55%
N.B. : Net discounted SCE rate/CAR rate shall not be less than 30% of basic rate so arrived as in
(1) above.
4. Adjust the net rate as arrived in (3) above, by addition/substraction of the following additional
extras/reductions corresponding to various additional covers listed in the Annexure - 2 to arrive
at the overall net rate.
5. For any additional cover, not listed in the Annexure-2 refer the matter to Committee.
6. Note :- Rating of DSU/ALOP Proposals:- All proposals where the Sum Insured is above
Rs.100 cr and upto Rs. 1500 crs should necessarily be rated as per the norms of this circular,
irrespective of DSU/ALOP Covers. Only the rating of DSU/ALOP covers was outside the
purview of the Committee.
ANNEXURE - 2
Rate
Rating Group
Additional Covers Limits per
Code
mille
a) Owners' surrounding Upto 10% of policy SI without

A
0.05
property FLEXA risks ................
N.B: If the cover is
required during the Upto 10% of policy SI B
maintenance period also with FLEXA risks................ 0.10
the extras applicable for C
Above 10% of Policy SI but without
0.15
each group shall be FLEXA Risks....
loaded by 10%.
Above10% of policy SI but with D
---------------------------------- 52
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FLEXA risks.......... 0.20
b) 50/50 clause O Nil
c) 72 hrs. clause O Nil
Upto 10% of SI .............................. O Nil

Free automatic
d) Above 10% and upto 50% of SI.... A 0.05
reinstatement clause
Above 50% and upto Full SI......... B 0.10
Loss minimisation
e) O Nil
expenses
f) Debris Removal limit Upto Rs.50 lakhs .......................... O Nil

per occurrence.
Above Rs.50 lakhs and upto Rs.10 A 0.05
crs ...
B 0.10
Above Rs.10 crores and upto Rs.25
crs ................
Above Rs.25 crs ....................... C 0.15
g) Professional fees O Nil
Cover for offsite

h) 0.05
storage/fabrication A
i) T.P.L. Cover i)AOA limit upto Rs.10 cr............. A 0.05

With or without Cross
ii)AOA limit above Rs.10 cr but upto B 0.10
Liability extension
Rs.25 cr ...........................
within geographical -- --
limits of India iii)Above 25 cr .......seperate cover to
TPL Cover during be issued .............................
Maintenance period
25% loading on the above rates.
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N.B.:This should be restricted
Waiver of contribution
j) between Principal and the contractor O Nil
clause
and should not be waived for others.
Additional Covers Limts Rating Group Rate

== ================ Code per
Escalation costs ========================= ========== mille
k) Upto 10% of policy SI ................. A ====
Above 10% of policy SI B 0.05

0.10
and upto 50% .....................
Waiver of Subrogation
l) 0.05
clause A
Expediting cost Upto 30% of net claim Amount .... O Nil

m) including Air Freight &
Express Freight Beyond ........................ A 0.05
Extended maintenance (for every 12 months or part

n) 0.05
cover thereof.)........................................ A
Continuity of Cover
during operational
phase for Unit /Plant
o) (For every month or part thereof ) 0.20
tested but awaiting D
integral testing. (Along
with other Units/Plants)
Design Defect cover as

p) per `D’4 wording of D 0.20
Munich Re
Amendment in Fire
q) fighting endorsement O Nil
wordings
---------------------------------- 54
1-1-01
UptoRs.10 cr.................................. O Nil
r) Additional Custom duty Rs.10 cr to Rs.30 cr............... A 0.05
Beyond Rs.30 cr ................ C 0.15
s) Wilful negligence Not to be covered at any cost -- --
Extra Rates for additional covers

Group Code Extras Rates
-O’ - NIL
- ‘A’ - 0.05%o
- ‘B’ - 0.10%o
- ‘C’ - 0.15%o
- ‘D’ - 0.20%o
ENGG/Gen-4/55/2001/8 12th January ,

2001.
Re: Rating of "Wind" Turbine Generator Sets under EAR/SCE Policy.
Reference is drawn to the TAC Circular Engg/Gen-4/55/2001/7 dtd.1st January, 2001 made
effective from 1st January, 2001, introducing rates for "Wind Mills" having individual capacity
exceeding 250KW under Erection All Risks Insurance.
The rate applicable for "1 month or part thereof, for subsequent 10 months" as appearing under
Column no.-5 against Risk Code 210606 (i)for "Wind Generators" having individual capacity
not exceeding 250KW has been wrongly mentioned as Rs.1.10 per mille instead of Rs.0.10 per
mille.
The correction may be noted for your records. The corrected entries are as under:-
Risk Sl. Description Rate for Rate for Rate for Rate for Excess per
No. No. 1st month + 1 month 1 month 1 month or claim is
1 month or part or part part thereof 5% of
Testing thereof ,for thereof for testing claim
---------------------------------- 55
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subsequent for period period amount
10 months exceeding extension subject to
12 months within minimum
policy of
period Rs............
Normal/
Testing
periods
1 2 3 4 5 6 7 8
6 Wind Turbine Generators
Individual
capacity not 20000/
210606 (i) 3.00 0.10 0.05 0.4
exceeding 50000
250KW
Above
250KW & 40000/
210608 (ii) 3.50 0.10 0.05 0.4
upto 100000
400KW
80000/
Above
210610 (iii) 4.00 0.10 0.05 0.4
400KW 200000
This decision will be effective from 1st January , 2001.

Secretary
GO TO INDEX
Engg.-Gen-6/Fire-Gen-102/2001-9 27th March , 2001.

Rating of MLOP Proposals -- Provisional rates
As you are aware, the rating of MLOP proposals under Industrial All Risks and Engineering
Insurance had been delegated to insurers effective from 31.12.99 , as communicated vide our
Circular letter dated 18th Feb., 2000.
The TAC has now decided to fix following provisional rates for all MLOP proposals whose
renewals / new business incept on or after 31.3.2001 pending finalisation of the rates by TAC.
RATES AND EXCESS FOR MLOP COVER ( PROVISIONAL RATES)
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1-1-01
Time Excess in No.of
Sr.No. Type of Plants/Risks Rate %
days
*Power Plants with

Individual capacity of
1 Generating sets 1.77 21
upto 175 MW
> 175 MW 1.77 40
* Petrochemical
Plants 1.60 14
2 Upto MB S.I.of
Rs.700 crs
1.60 21
> 700 crs.
Other Plants
1.00 7
Upto MB S.I. of
3
Rs.150 Crs.
1.40 14
> Rs.150 crs.
* For first year of operation (new plant) the time excess shall be increased by 7
days
* If claims experience for the expiring policy period exceeds 30% the time
excess will increase by 7 days in all the cases.
All proposals in case of renewals / new business falling on OR after 31st March,
2001 should be referred to the Committee for rating , within one month from
inception / renewals of MLOP cover .
SECRETARY
GO TO INDEX
Engg.-Gen-6/Fire-Gen-102/2001-10 28thMarch,2001
Re: Rating of MLOP Proposals -- Provisional rates
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1-1-01
Further to the TAC Circular No.Engg/Gen-6/Fire-Gen-102/2001-10 dtd. 27-3-2001, issued in
repsect of rating of MLOP proposals under ‘Industrial All Risks Insurance’ and ‘Engineering
Insurance’ we are to clarify as below:-
1. The provisions of the said circular shall be applicable for all new business and renewals falling
due on or after 31st March, 2001.
2. The claim experience referred to in the Circular for reviewing time excess shall comprise
combined claims experience of MB and MLOP, for both ‘Industrial All Risks Insurance’ and
‘Engineering Insurance’ policies.
3. MLOP policies incepted prior to 31-3-2001 shall not be cancelled mid-term and renewed at
the same rates and terms charged prior to 31-3-2001.
You are requested to advise your operating offices suitably in this regard.
Secretary
GO TO INDEX
Engg/Gen-64/2001-11 4th April, 2001

Sub: Comprehensive Package Policy to provide Seamless Cover during project and operational
stages
Arising out of representations, the Tariff Advisory Committee has decided to consider issuance
of seamless policy for Electric Power Generating Stations to provide Àll Risks’ covers both
during project and operational stages.
Insurers receiving request from Principals/Financial Institutions funding the projects for issuance
of such policies may refer the proposals to TAC for its consideration.
Secretary
GO TO INDEX
Engg.-Gen-6/Fire-Gen-102/12 18th April,2001

Re: Rating of MLOP Proposals -- Provisional rates
This refers to our Circular letter No. Engg/Gen-6/2001-9/Fire-gen-102 dated 27th March, 2001
communicating therewith provisional rates for MLOP proposals.
We have now been informed by GIC that a facility has been made for reinsurance of ferilizer
risks and the same is available to Indian companies for use. As per this programme, a time
excess of 7 days is acceptable for MLOP insurance of fertilizer risks. In view of this, the
provisional rates and terms communicated vide our letter dated 27th March, 2001 are revised as
under:
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RATES AND EXCESS FOR MLOP COVER ( PROVISIONAL):
Time Excess in No.of

Sr.No. Type of Plants/Risks Rate %
days
*Power Plants with

Individual capacity of

1 Generating sets
1.77 21
upto 175 MW
1.77 40
> 175 MW
* Petrochemical
Plants 1.60 14
2 Upto MB S.I.of
Rs.700 crs
1.60 21
> 700 crs.
Fertilizer plants
1.00 7
Upto MB SI of
3
Rs.700 crs.
1.60 14
. Rs.700 crs.
Other Plants
1.00 7
Upto MB S.I. of
4
Rs.150 Crs.
1.40 14
> Rs.150 crs.
* For first year of operation (new plant) the time excess shall be increased by 7
days
** If claims experience for the expiring policy period exceeds 30% the time
excess will increase by 7 days in all the cases.
As communicated earlier, all proposals should be referred to the

Committee within one month from inception/renewals.
---------------------------------- 59
1-1-01
This circular latter takes effect from today for all new business and
renewals.
Insurers are requested to inform their operating offices suitably.
SECRETARY
GO TO INDEX
Engg/Gen-6/Fire-Gen-102/2001-13 26th April,2001.

Re:Rating of MLOP Proposals by TAC
This has reference to our Circular letters Engg/Gen-6/Fire-Gen-102/ 2001-9/10 & 12 dt. 27th
March,2001,28th March,2001 and 18th April,2001 on the captioned subject.
All proposals referred to TAC shall contain details as per enclosed format.
Secretary
MLOP - FORMAT FOR RATING
1) Name of the Insured :
2) Address :
3) Sum Insured :
4) Indemnity Period :
5) Policy Period :
6) Claims experience for 5 policy periods preceding the expiring policy period :
7) Expiring Rates and Terms :
8) Reinsurer’s quotes on rates and terms (pl. enclose copy of Reinsurer’s letter)
9) Technical Details as per the following format :
Machine
or
Item
Equipment Details of Machines/Equipment
No.
to be
Insured *
Relative Reserve Spare No. Age Whether Details of Special Any other
Importance Capacity parts of indeginous Loss technical relevant
---------------------------------- 60
1-1-01
or Minimisation risks if
available Shifts information
imported measures any

* This column should contain details like voltage, KVA/KW rating, speed (RPM), No. of stages,
type (reciprocating/rotary/axial/radial/screw type, AC/DC, CNC, water tube/fire tube in case of
boilers), capacity etc.
GO TO INDEX
______________________________________________________________________________
Engg/Gen-4/55/2001/14 4th May,2001
Re: ‘Bonus Malus’ scheme under MB,CPM,EEI & DOS Policies
The Tariff Advisory Committee has decided to revise the present scheme of `Bonus-Malus’
under MB,CPM,EEI & DOS policies as under :-
BONUS/MALUS SCHEME UNDER MB, CPM, EEI & DOS POLICIES.
Average claims
ratio in % for 5 Discount Loading
years preceding the EXCESS
expiring policy % %
period
Upto 05 30 Normal
Above 05 and upto 15 25 Normal

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1-1-01
Above 50 and upto 60 Nil Nil Normal
Above 80 and upto

10 Normal
100
Above 100 and upto

15 Normal
125
Above 125 and upto

20 Normal
150
Above 150 and upto

35 Normal
200
Above 200 and upto

35 1.5 times tariff excess
300
Above 300 and upto

400
Above 400 and upto

500
Above 500 50 3 times tariff excess
1. In case of DOS policies coming under the scope of the scheme, the existing "Rate Table" for
DOS policies with or without FOES ; for policy period ranging from 7 to 12 months stands
replaced by the above Bonus-Malus Scheme, which discount should be applied on the rate for
with or without FOES extension for the corresponding period.
2. The claims ratio to be calculated on incurred basis.
3. In case of DOS policies, the claims ratio shall comprise of MB and DOS portions.
---------------------------------- 62
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This decision is effective from 4th May, 2001.
Secretary
GO TO INDEX
Engg/Gen-4/24/164/2001/15 4th May,2001

Re: Rating of Large Projects - Design Defect Cover
the TAC Circular Engg/164/99-6 dtd.26th Feb.99 and the clarification vide Cir.No.
Engg/Gen/4/24/164/2001/7 dtd.1-1-2001.
Representations have been received in general on providing `design defect’ cover, which is a
standard exclusion under CAR policy. It was decided to issue the ‘design defect’ cover as under
for both EAR and CAR proposals.
Design Defect
Additional Rate Excess Remarks
Cover as Per
Not applicable as it is Not applicable as the

DE-1 of Munich Re -
already excluded basic cover excludes
DE-2 of Munich Re 5% of basic SCE rate 5 times AOG excess -
DE-3 of Munich Re 10% of basic rate -do- -
To be restricted only
DE-4 of Munich Re 15% of basic rate -do-
to EAR proposals.
DE-5 of Munich Re To refer to Committee To refer to Committee -
It was also decided that the relevant provision for "Design Defect Cover" as per Munich Re DE
4" as appearing under the above referred circular Engg/Gen-4/24/164/2001/7 dtd.1-1-01 on
"Rating of Large Project is restricted to "Erection All Risks" only.
The above decision is effective from 4th May, 2001.
Secretary
GO TO INDEX
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ENGG/Gen-4/24/164/2001/16 4th May, 2001
Re: Electronic Equipment Insurance: Discount for covering Standard Fire & Special Perils
Reference is drawn to scheme under EEI tariff for granting discount on the premium rate for
electronic equipments that are covered under the EEI policy as well as Fire policy, as brought out
in the circular Engg/Gen-16/97-4 dtd.11-3-97.
Consequent upon the introduction of revised Fire tariff the Tariff Advisory Committee has
decided to revise the existing pattern of discount under EEI tariff, if the equipment that are
covered under EEI policy are also covered under Fire policy as under:-
S.No. COVER DISCOUNT
For equipments covered under EEI Policy as also 10% of the applicable EEI
1.
under Standard Fire and Special Peril policy rate
For equipments covered under EEI Policy as also

7.50% of the applicable
2. under Standard Fire and Special peril policy
EEI rate
without STFI or RSMTD
For equipments covered under EEI Policy as also

5% of the applicable EEI
3 under Standard Fire and Special peril policy
rate
without STFI and RSMTD
The above decision is effected from 4th May, 2001.

Secretary
GO TO INDEX
_________________________________________________________________________
Engg/Gen-4/24/2001-17 4th May, 2001
Re: Bonus Malus Clause under Erection All Risks/Contractors All Risk Insurance for Policy
Period Extensions.
-------------------------------------------------------------------------
Reference is drawn to the provision for "CLAIMS DISCOUNT/LOADING ON EAR/SCE
EXTENSION RATES" under General Rules & Regulations of Erection All Risks Insurance,
Contractors All Risk Insurance, prescribing discount/loading on rates for extension period, based
on claims experience as on the date of extension which provided a maximum loading of 30% for
adverse claims experience beyond 300% without any upper limit.
It was decided to introduce loading scheme for claims experience higher than 300%. The
modified scheme is as under:-
Claims Experience as Discount Loading Excess
on date of extension on on
---------------------------------- 64
1-1-01
in % extension extension
rate in % rate in
%
Upto 10 20 - As per tariff
Above 10 and upto 30 15 - - do -
Above 30 and upto 60 10 - - do -
Above 60 and upto 100 Nil - - do -
Above 100 and upto 200 - +10 - do -
Above 200 and upto 300 - +20 - do -
Above 300 and upto 400 - +40 1.5 times of normal and testing excess
Above 400 and upto 500 +50 2 times of normal and testing excess
Above 500 +50 3 times of normal and testing excess
This decision will be effective from 4th May, 2001.

Secretary

GO TO INDEX
___________________________________________________________________________

Engg/Gen-10/17/16/2001/18 4th May, 2001

Re: `Higher Excess Discount' Scheme under MB, CPM and EEI Policies at par with Scheme
under EAR, CAR Policies.

The Tariff Advisory Committee decided to adopt the present higher excess discount scheme
available under EAR/CAR policies for projects with Sum Insured less than Rs.100 cr., for MB,
CPM and EEI policies also as under:-
Excess opted Discount
2 times 5%
5 times 10%
10 times 20%
20 times 30 %
The scheme will also apply to earthquake premium alone if higher excess amounts are selected
for claims arising out of AOG Perils incase of CPM equipment.
This decision will be effective from 4th May, 2001.

Secretary

GO TO INDEX
___________________________________________________________________________

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Engg/Gen-10/2001/19 4th May, 2001

Re: Rating of "pumps handling water" and all "other pumps including `Boiler Feed Water
Pumps" under Group IV : "Fertiliser Plants, Petrochemical Plants & Refineries" Section of MB
Insurance Tariff

Reference is drawn to Rating of Item : (e) Pumps (handling water other than Boiler Feed Water)
under Group
IV - "Fertiliser Plants Petrochemical Plants Refineries" Section of MB Insurance Tariff.
The Tariff Advisory Committee has decided to rate all types of 'Pumps' as under:-

Group - IV : Fertilizer plants/Petrochemical plants/Refineries:
e) Pumps and their drives
Pumps handling water : 0.75%
All other pumps including ) : a) Turbine/Engine
Boiler Feed Water Pumps ) Driven : 1.75% b) Motor Driven : 1.50%
Drives for the above Pumps
Turbine : 1.75%
Engine : 1.75%
Motor : 1.50%
The decision will be effective from 4th May, 2001.
GO TO INDEX
___________________________________________________________________________
Engg/Gen-10/2001/20 4th May, 2001

Re: MB Insurance - Extension of Time Span between Overhaul and/or open Inspection.

Reference is drawn to the Provision No.3 in respect of "Inspection of Turbines & Turbo-
generators" of "Standard Policy Form - Machinery Breakdown Insurance Policy", calling for
overhauling in a completely opened up state not later than completion of 32000 hrs of operation
or four years whichever is earlier.
The Tariff Advisory Committee decided to introduce a tariff provision for extending the interval
between successive overhauls to 64,000 hrs/8 years as under. Requests for permission to increase
the period between successive overhauls beyond 64,000 hrs/8 years should be referred to
Committee, well in time.

Period between successive overhauls terms & conditions

Beyond 32,000 hrs/4 years and upto 48,000 Excess shall be 25% of claim subject to a
hrs/6 years minimum of 150% of tariff excess
Beyond 48,000 hrs/6 years and upto 56,000 Excess shall be 37.5% of claim subject to a
hrs/7 yrs minimum of 200% of tariff excess.
Beyond 56,000 hrs/7 yrs.and upto 64,000 Excess shall be 50% of claim subject to a
hrs/8 yrs. minimum of 300% of tariff excess
---------------------------------- 66
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Beyond 64,000 hrs/8 years To be referred to the Committee well in
advance

The decision is effective from 4th May, 2001.
GO TO INDEX
___________________________________________________________________________

ENGG/Gen-4/24/164/2001/21 4th May, 2001

Re: Rating of Large Projects
Reference is drawn to “Guidelines” introduced for “Rating of Large Projects” with Sum
Insured above Rs.100 crs. and below Rs.1500 crs. as brought out in the TAC Circular
Engg/164/99-6 dtd.26th Feb.99 and also the modified guidelines issued vide Cir.No. Engg/Gen-
4/24/164/2001/7 dtd. 1st Jan., 2001.

The “Wordings for endorsements” in respect of “additional covers” included in the
“guidelines” are given in the Annexure.

WORDINGS OF ENDORSEMENTS
1/m Cover of Extra Charges for Overtime, Night Work, Work on Public Holidays, Express Freight
including Air Freight

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in
the Policy or endorsed thereon and “Insured having paid the agreed premium” the Insurer shall indemnify the
insured, extra charges for Overtime, Night Work, Work on Public Holidays and Express freight (including Air
Freight).

Provided always that such extra charges are incurred in connection with any loss of or damage to the insured items
recoverable under the Policy.

If the sum(s) insured of the damaged item(s) is/are less than the amount(s) required to be insured, the amount
payable under this Endorsement for such extra charges shall be reduced in the same proportion.

Provided always that the amount payable shall not exceed -----------% of loss amount per any one occurrence
and that the indemnity in respect of Air Freight shall be subject to an additional excess of ------------% of the Air
Freight incurred per claim.

N.B.: To be deleted, where cover is up to 30% of net claims as it is without extra premium.
2/q Special Conditions Concerning Fire Fighting Facilities

the Policy or endorsed thereon, the Insurers shall only indemnify the Insured for loss or damage resulting directly or
indirectly from fire and/or explosion if the following requirements are fulfilled:-
·  Adequate fire-fighting equipment and extinguishing agents of sufficient capacity must always be available at
the site and ready for immediate use.
---------------------------------- 67
1-1-01
·  Sufficient number of workmen must be fully trained in the use of such equipment and must be available for
immediate intervention at all times.
·  If storage of material for the construction or erection of the contract works is necessary at site or any other
location within India, storage must be subdivided into storage units not exceeding the equivalent value of Rs.-------
per storage unit. The individual storage units must either be at least 10 meters apart or separated by fire-proof walls.
All inflammable materials (such as shuttering material not fitted for concreting, litter, etc.) and especially all
inflammable liquids and gases must be stored at a sufficiently large distance from the property under
construction or erection and any hot work like welding etc.
·  Provided further that in respect of storages of Indian sourced materials at locations other than the site, the
amount payable shall not exceed Rs.---------- at any one location.
·  Welding, soldering or the use of an open flame in the vicinity of combustible material is permitted only if at
least one workman suitably equipped with extinguishers and well trained in fire-fighting is present.
·  At the beginning of testing all fire-fighting facilities designed for the operation of the plant must be installed
and serviceable.

4/c 72 Hours Clause
It is agreed that any loss of or damage to the Insured Property arising during any one period of seventy two (72)
consecutive hours, caused by storm, tempest, flood or earthquake shall be deemed as a single event and therefore to
constitute one occurrence with regard to the Excesses provided for herein. For the purpose of the foregoing the
commencement of any such seventy two (72) hours period shall be decided at the discretion of the Insured it being
understood and agreed, however, that there shall be no overlapping in any two or more such seventy two (72) hours
periods in the event of damage occurring over a more extended period of time.

5/g Professional Fees Clause
The Indemnity provided by this Policy is extended to include Architects, Surveyors and Consulting Engineers or
other Professional Fees necessarily incurred in the reinstatement of the Insured Property consequent upon loss or
damage but not for preparing any claim, it being understood that the amount payable for such fees shall not exceed
those authorised under the scale of the appropriate Professional Body.
The liability of the insurers under this endorsement shall in no case exceed 10% of the loss amount per any one
occurrence and Rs.---------- in the aggregate.

6/k Escalation Clause
It is hereby declared and agreed that the insured having paid the agreed extra premium, Company shall provide
for escalation in Sum Insured under items of Section I of the Schedule attached to the policy upto --------% of the
original Site Value, the basis of claim settlement shall be the original site value of affected equipment/ property as
insured plus increase in cost of replacement/ reconstruction, if any provided that the increase in the value of such
equipment/ property does not exceed -------- % of the original site value as insured.
It is also hereby declared and agreed that in the event of a claim the Insured would be considered as fully insured
upto the Sum Insured inclusive of --------% increase as per selected escalation and underinsurance would apply only
in the event of the cost of replacement / reconstruction of the affected equipment/property exceeding the original
value as insured inclusive of selected ---------- % towards escalation.
It is however understood and agreed that the premium collected against escalation provision shall not be subject to
refund of premium as provided in the premium adjustment clause.
It is further understood and agreed that in case of additional premium chargeable during final adjustment, additional
escalation premium will be charged to the insured but in case of any premium refundable during final adjustment no
refund shall be allowed against the escalation premium already charged to the Insured.

7/f Clearance and Removal of Debris
This Policy extends to cover costs and expenses necessarily incurred by the Insured with the consent of the Insurers
in demolishing or removing debris of portions of the property insured by Section I destroyed or damaged by any
peril hereby insured against upto an amount not exceeding --------% of the claim amount Rs. ----------- lacs per any
one occurrence and Rs.---------- in the aggregate.

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N.B.: Not applicable if the cover is only for Rs.50 lacs.

8/b 50 : 50 Clause

In respect of the subject matter Insured hereunder consigned from outside India:
·  The Insured hereby undertakes to inspect each item of the subject matter Insured upon arrival at the contract
site for possible damage sustained during transit.
·  In the case of packed items which are to be left in their packaging until a later date the packaging is to be
visually inspected for signs of possible damage and where such damage is visible the items are to be unpacked and
inspected and any damage discovered reported to the Marine Insurers.
·  Where the packaging of an item shows no visible signs of damage to such item having been sustained during
transit any subsequent damage discovered upon unpacking will be dealt with by the Marine Insurers or the EAR
Insurers according to whether it can be clearly established that such damage was caused before or after arrival at the
contract site.
·  Where it is not possible to clearly establish whether the damage to an item was caused before or after arrival
at the contract site it is hereby agreed that the cost of such damage shall be shared equally between the Marine
Insurers and the EAR Insurers, provided such a clause is included in the Marine Policy also.

9/r Cover for Increased Customs Duty

the Policy or endorsed thereon and subject to the Insured having paid the agreed extra premium, this insurance shall
be extended to cover at the Insured exchange rate increased Customs Duty percentage payable on the replacement
supplies over and above the Customs Duty taken into account while arriving at the sum insured of the affected item.

Provided always that such additional duty is incurred in connection with any loss or damage to the insured items
recoverable under the policy and provided further that the amount payable hereunder shall not exceed Rs.----------
in the aggregate.
Each and every claim payable under this extension shall be subject to an excess of 5% of the Additional Customs
Duty incurred over and above the excess normally applicable.

N.B.: Not applicable if the cover sought is upto Rs.10 crores.

10/e Loss Minimisation Expenses

If upon the happening of any peril hereby insured resulting in actual damage to the Insured Property the Insured
shall take all steps to minimise further loss or damage arising from that occurrence or accident, expenses necessarily
and reasonably incurred by or on behalf of the Insured in an attempt to prevent or minimise such further loss or
damage will be Indemnified upto a limit of Rs.--------- in the aggregate.

11/a Owners Surrounding Property

It is hereby declared and agreed that the insured having paid the extra premium the policy extends to cover
loss of or damage to property located on or adjacent to the Project Site and belonging to or held in care, custody or
control of the Principal(s) or the Contractor (s) shall only be covered if occurring directly due to the erection,
construction or testing of the items insured under Section I and happening during the period of cover. This cover
does not apply to Construction / Erection Machinery, Plant and Equipment, Temporary Buildings and Temporary
site installations.

Limit of indemnity shall be ---------% of the policy Sum Insured.
The policy does not cover loss due to Fire, Lightning, Explosion and Aircraft damage
To be retained or deleted as per cover decided.
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12/d Automatic Reinstatement

Notwithstanding anything contained herein to the contrary it is hereby agreed and understood that the amounts
insured are always to remain at risk and shall not be reduced following loss or damage insured hereunder so long as
the aggregate of the sums paid and/or payable does not exceed 10% of the completely erected value - If restricted.

It is hereby declared and agreed that the insured having paid the extra premium the amount insured are always to
remain at risk and shall not be reduced, so long as the aggregate of the sum paid and/or payable does not
exceed------ % of sum insured.
13/i Cover for Cross Liability

the Policy or endorsed thereon and subject to the Insured having paid the agreed premium, the Third Party Liability
cover of the Policy shall apply to the insured parties named in the Schedule as if a separate policy had been issued to
each party, provided that the Insurers shall not indemnify the Insured under this Endorsement in respect of liability
for
·  Loss of or damage to items insured or insurable under Section I of the Policy, even if not
recoverable due to an excess or any limit.
·  Fatal or non-fatal injury or illness of employees or workmen who are or could have been insured
under Workmen's Compensation and/or Employers’ Liability Insurance
The Insurers total liability in respect of the insured parties shall not however exceed in the aggregate for any one
accident or series of accidents arising out of one event the limit of indemnity stated in the schedule.

14/l Waiver of Subrogation

It is hereby agreed and understood that otherwise subject to the terms exclusions, provisions and conditions
contained in the Policy or endorsed thereon, the Insurers shall waive all their rights of subrogation or action
which they may have or acquire against the assured and any person, firm or corporation having an association or
affiliation at the time of loss with the assured through ownership or management subject to having been insured
under this Policy.

15/p Cover of Manufacturers’ Risk

the Policy or endorsed thereon and Insured having paid the premium, Item "C" under "Special Exclusion to Section
I" shall be replaced by the following wording:

’This policy excludes the costs necessary to replace, repair or rectify any component part or individual item of the
Property Insured which is defective in design, plan, specification, materials, or workmanship, but this exclusion
shall not apply to other parts or items of the Property Insured unintentionally damaged as a consequence of such
defect.’

This endorsement does, however, not apply to parts and items of civil engineering sections.

16/n Extended Maintenance Cover

the Policy or endorsed thereon and Insured having paid the agreed extra premium this insurance shall be extended
for the maintenance period specified hereunder to cover loss of or damage to the contract works.
·  Caused by the insured contractor(s) in the course of the operations carried out for the purpose of complying
with the obligations under the maintenance provisions of the contract.
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·  Occurring during the maintenance period, provided such loss or damage was caused on the site during the
erection period before the certificate of completion for the lost or damaged section was issued.

Maintenance Period ------- months.

endt wordings--new
(Attached to Lar-Pro Circular 21 dated 4-5-01)

GO TO INDEX
___________________________________________________________________________
Engg/Gen-10/2001/22 13th June, 2001
Re: Insurance of “Photo Copier Machines” under MB Insurance.

Representations are being received in respect of “Photo Copier Machines” which are now
rateable under MB tariff, for bringing the same under the scope of EEI policy.

It has been decided to maintain status-quo i.e., the “photo copier machines” should
continue to be rated under MB policy.
GO TO INDEX
___________________________________________________________________________

Engg/Gen-17/2001/23 13th June, 2001

Re: Rates applicable to “stringing equipment” consisting of
hydraulic puller and hydraulic tensioner machines under CPM Policy.
The Tariff Advisory Committee has decided to rate the “stringing equipment” consisting
of hydraulic puller and tensioner machines, used for the purpose of stringing of transmission
lines under “Group II” of CPM equipment at a rate of Rs. 0.80% + earthquake extra.

This decision is effective from 13th June, 2001.
GO TO INDEX
___________________________________________________________________________

Engg/Gen-10&17/2001/24 13th June, 2001

Re: MB Insurance for Asphalt Mixing & Recycling Plants

Representations are being received for extending MB Cover for “asphalting, mixing and
recycling plants” while stationed at worksites.

As these equipment are mobile in nature and have to be shifted from site to site , Insurers
are prohibited from issuing any machinery break-down cover for these equipments.

GO TO INDEX
________________________________________________________________________
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Engg/Gen-4/30/2001/25 13th June, 2001

Re: Erection All Risks Insurances of “Combined Cycle Power
Plants” - Rating of Gas Turbines while in Open Cycle Mode
and awaiting integrated testing with Steam Turbines

Reference is drawn to TAC Circular No.Engg/Gen-4/2001/5 dtd.1-1-01 giving the rate for “Open-Cycle
Mode”falling within policy period of “Gas Turbines/Combined Cycle Power Plant”
awaiting integrated testing with steam turbines covered under ‘Erection All Risks Insurance’.

In order to take into account a situation, where the ‘open-cycle’ mode extends beyond the initial period of
cover, it is decided to rate such extension at Rs. 1.50%o per month or part thereof.

Accordingly, the circular Engg/Gen-4/2001/5 dtd. 1-1-01stands revised as under , taking into account both
the situations where the ‘open cycle mode’ falls ‘within’ and ‘beyond’ policy period.

i) Gas Turbines which are covered under separate policies, have to be considered operational and the
SCE/MCE cover cannot be extended to cover such Gas Turbines, during Open Cycle Mode.

ii)In those cases where both Gas Turbines and Steam Turbines Sets are covered under the
same MCE/SCE policy for a common period of insurance, the policy can be extended to cover
Open Cycle Mode of Gas Turbines at following rates:

“Within policy period - Rs. 1.00 per mille per month or part thereof
Beyond policy period - Rs. 1.50 per mille per month or part thereof

This decision will be effective from 01-1-2001.

GO TO INDEX
___________________________________________________________________________
Engg/Gen-16/2001/26 13th June, 2001

Re: Electronic Equipment Insurance :
A) Excess for Personal Computers
B) Insurance of VSAT Eqpt.
C) Insurance of Medical Eqpt.-Additional “Endorsement”

Tariff Advisory Committee decided to introduce the following amendments in “Electronic Equipment
Insurance”Tariff..

A) “Personal Computers”
It has been decided to revise the excess for “Personal Computers” to 5% of claim amount
subject to a minimum of Rs. 2500/-.

B) Insurance of VSAT equipment
It has been decided to introduce the following rates and terms for V-SAT Equipment

Rate - Rs.1.00% for all parts of VSAT Eqpt.

Excess for AOG claims - 10% of claim amount subject to a minimum of Rs.10,000/-
Excess for other claims - As per EEI tariff
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1-1-01

C) Medical Equipment using X-ray tubes
As regards depreciation for Medical Equipment using X-ray tubes , it has been decided
to adopt the following ‘Endorsement’s wordings’ for which are given in the “annexure”

i) Cover of x-ray valves & tubes
ii) Special condition Concerning Computer Tecnographs
iii) Warranty for Lightning and over-voltage Protection Divices
iv) Warranty concerning Air-conditioning Plant.

The decision is effective from 13th June, 2001.

Encl: “annexure”

ANNEXURE TO ITEM - 8(c) of 192 & Cir. No. 26 of 13/06/2001
_______________________________________________________________
Cover of Valves and Tubes

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and
conditions contained in the Policy or endorsed thereon, this insurance shall be extended to
include loss of or damage to valves and tubes. Indemnification shall be limited to the actual
value of such items (cf 1 - 7) immediately prior to the occurrence of the loss or damage,
including ordinary freight, erection costs and custom duties and dues, if any.

1. Actual values of

1.1. stationary anode X-ray tubes in single-tank setup and rotating anode X-ray tubes without
exposure counters for diagnostic equipment
1.2. surface and close-range radio-therapy X-ray tubes and valves
1.3. video amplifier tubes

Age Actual value in % of new
(months) replacement value
Less than 18 100
Less than 20 90
Less than 23 80
Less than 26 70
Less than 30 60
Less than 34 50
Less than 40 40
<td width="267" valign="top" style="width:200.05pt;border:solid
windowtext .75pt; border-top:
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ALL ENGINEERING CIRCULARS ISSUED DURING THE YEAR 2002 (till date)
Slno Circular Reference No. Date of Effective Subject

Circular Date
Engg/Gen-6/Fire-Gen-
1 29/01/02 clarification Rating of MLOP proposals by TAC
102/2002-1
Additional Customs Duty as an extension to

2 Engg/Gen-4/24/2002-2 29/01/02 29/01/02
MCE/SCE/CAR policies
Rating under CAR Insurance - Laying of

3 Engg/Gen-24/2002-3 29/01/02 29/01/02
Railway Track
4 Engg/Gen-28-II/2002-4 29/01/02 29/01/02 Inclusion of Roads under CECR policy
Insurance of Railway Track Testing Coach

5 Engg/Gen-17/2002-5 29/01/02 29/01/02
under CPM Insurance
Rating of Manufacture of Computer Discs

6 Engg/Gen-4/2002-6 29/01/02 29/01/02
(Cds) under EAR Insurance
EEI Insurance - Discount for deleting Standard

7 Engg/Gen-16/2002-7 29/01/02 29/01/02
Fire & Special Perils
Rating of MLOP proposals on Mini Hydel

8 Engg/Gen-6/2002-8 29/01/02 29/01/02 Power Plants (< 10 MW capacity ), Bio-mass
based Power Plants (< 10 MW capacity)
DOS Insurance(Potatoes) for Cold Storages

9 Engg/Gen-62-II/2002-9 29/01/02 clarification
run by DG sets only
Rating of Aerial Ropeway Project under EAR

10 Engg/Gen-4/2002-10 29/01/02 29/01/02
Policy
Rating of Extension of period of cover under

11 Engg/Gen-4/24/2002-11 29/01/02 29/01/02
EAR/CAR for large projects
MB Insurance Cover for Microline Wheel

12 Engg/Gen-10/16/2002-12 29/01/02 29/01/02
Alignment System
13 Engg/Gen-10/2002-13 29/01/02 29/01/02 Machinery Insurance - Indemnity Provisions
Rating of ‘Manufacture of Compact Disks

14 Engg/Gen-10/2002-14 05/02/02 clarification
(CDs)’under ‘Erection All Risks Insurance’
15 Engg/Gen-10/2002-15 11/03/02 01/04/02 Cover for terrorism under Engineering Policies
Cover for terrorism under Engineering

16 Engg/Gen-10/2002-16 15/03/02 01/04/02 Policies-CECR (Civil Engineering
Completed Risks)
---------------------------------- 74
1-1-01
Cover for Terrorism under Engineering
Policies
Volume Discount under EAR/SCE and CAR

insurances
Electronic Equipment Insurance Policy-Floater

19 Engg/Gen-16/2002-19 30/10/02 -
Policy
Clarification under MB Insurance Policy -

20 Engg/Gen-10/2002-20 30/12/02 clarification Coverage of
Imported Machinery
Discount for opting Higher Excess under

21 Engg/Gen-16/2002-21 30/12/02 - Electronic Equipment Policy for Equipment
with value upto Rs.1 lakh
CAR Insurance-’Refurbishment of existing

22 Engg/Gen-24/2002-22 30/12/02 -
Sewage System’
Discount for Higher Excess under CAR/EAR

23 Engg/Gen-4/24/2002-23 30/12/02 - Insurance of Projects with S.I. Less than
Rs.100crs.
Cover for CPM equipment as part of CAR and

24 Engg/Gen-17/2002-24 30/12/02 -
EAR/SCE Projects
MB Insurance : Rating of ‘Radio Frequency

25 Engg/Gen-10/2002-25 30/12/02 -
Dryer’
MB Cover for an electronic and computer

26 Engg/Gen-10/2002-26 30/12/02 -
related equipment manufacturing
Rating for Laying of CNG pipeline under CAR

27 Engg/Gen-24/2002-27 30/12/02 -
Policy
Engg/Gen-10/(2003-3)2002- Claims experience discount/loading - MB/IAR

28 30/12/02 -
28 Policies.

Engg/Gen-6/Fire-Gen-102/2002-1 29th January,2002.
Re: Rating of MLOP Proposals by TAC
This has reference to TAC Circulars listed below on the captioned subject.
Circular/letter Engg/Gen-6/Fire-Gen-102/2001- 9 dtd.27-3-01
- do - - do - 10 dtd.28-3-01
- do - - do - 12 dtd.18-4-01
- do - - do - 13 dtd.26-4-01
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1-1-01
It is clarified as under:
1. No discount shall be allowed by the insurers on MLOP rates advised by TAC. However, in
respect of IAR policies, portfolio claims experience discount only may be allowed as per
relevant provision.
2. No insurer shall offer insurance in respect of the deductibles stated in the schedule.
Secretary
GO TO INDEX
ENGG/Gen-4/24/2002-2 29th January,2002.

Re: Additional Customs Duty Cover as an extension to Marine cum
Erection/Erection/Contractor's All Risks Policies.
Reference is drawn to TAC Circular Engg/Gen-16/2001-29 dtd. 3rd August, 2001 modifying the
3rd para of "endorsement for additional cusom duty" as appearing under EAR & CAR tariffs as
under.
"The indemnity for such additional custom duty will stand reduced after occurrence of claim
unless reinstated by payment of an additional premium prescribed by the Companies at the time
of settlement of the claims."
The above decision stands ammended as under:-
"The limit of indemnity against Additional Customs Duty could be reinstated at the time of
settlement of claims and that such an approach could be extended even in respect of marine
claims, in case, a combined MCE All Risks Policy had been issued".
Accordingly, the G.R. No.23 (under EAR tariff) and G.R. No.19 (under CAR tariff) stand
revised, as above.
The above decision is effective from 29th January,2002.
Secretary
GO TO INDEX
ENGG/Gen-24/2002-3 29th January,2002.

Re: Rating under CAR Insurance -Laying of Railway Track
The Tariff Advisory Committee has decided to rate "Laying of Railway Track" under CAR
Insurance inline with the rates/terms for "Railway Gauge Conversion", and accordingly the
existing tariff entry is revised as "Railway Gauge Conversion, Laying of Railway Track".
Risk Sl. Risk Premium Rates (%o) Excess - 5% of claim amount

No. subject to minimum of Rs.
---------------------------------- 76
1-1-01
Minimum rate Additional rate per Normal AOG/ Major
Code upto first month beyond 3 perils collapse
months
3 months
260,000 25 Railway 3.00 0.03 10,000 40,000

Gauge
Conversion,
Laying of
Railway
Track

Secretary
GO TO INDEX
ENGG/Gen-28-II/2002-4 29th January,2002.

Re: Inclusion of Roads under CECR Policy
The Tariff Advisory Committee has decided to include 'Roads' also along with 'Bridges, Dry
docks, Harbours, Jetties, Railway lines, Rock filled dams' of the CECR rate schedule. The
revised tariff entry is as under:
Rate - Rupees per mille
Risks Zone I Zone II Zone III Zone IV
Bridges
Dry docks
Harbours
Jetties 7.83 6.09 5.07 4.53
Railway lines
Rock filled dams
Roads

Secretary
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1-1-01
GO TO INDEX
ENGG/Gen-17/2002-5 29th January, 2002

Re: Insurance of Railway Track Testing Coach under CPM Insurance
The Tariff Advisory Committee has decided to rate 'Railway Track Testing Coach' under CPM
policy in line with locomotives under Group II-Rating Schedule.
The Group II rate of Rs.0.80% shall however be loaded by 20% for insuring this item under
CPM policy.
The applicable Earthquake-extra shall be Re.0.10% irrespective of the zones.
Secretary
GO TO INDEX

Re: Rating of 'Manufacture of Computer Disk (CDs)' under 'Erection All Risks Insurance'
The Tariff Advisory Committee has decided to rate 'Manufacture of Computer Disks (CDs)'
under "Plastic Goods Mfg." of EAR Tariff.
Secretary
GO TO INDEX

Re: Electronic Equipment Insurance -Discount for deleting Standard Fire & Special Perils
The Tariff Advisory Committee has decided to amend the existing scheme of granting discount
for deleting Fire & Allied perils from EEI policies (as introduced vide Circular dtd. 4-5-01) as
under:-
S.No COVER DISCOUNT
1. For equipment covered under EEI Policy as also under Standard Fire and Special 10% of the applicable
Peril policy and Earthquake EEI rate
2. For equipment covered under EEI Policy as also under Standard Fire and Special 7.50% of the
peril policy without any one or two of the additional covers such as STFI or applicable
RSMTD or EQ
EEI rate
3 For equipment covered under EEI Policy as also under Standard Fire and Special 5% of the applicable
peril policy without STFI and RSMTD and EQ EEI rate
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1-1-01
Secretary
GO TO INDEX

Re: Rating of MLOP proposals on Mini Hydel Power plants (below 10 MW capacity) Bio-mass
Based Power Plants. (below 10 MW capacity)
Reference is drawn to TAC Circular Engg/Gen-6/Fire-Gen-102/2001-12 dtd.18th April, 2001,
prescribing provisional MLOP rates and time-excess for "Power Plants" among other various
types of Plants/Risks. As per this circular, all power plants, with individual capacity upto 175
MW attract a provisional MLOP rate of 1.77% and a time excess of 21 days .
It has now been decided to revise the provisional 'Time Excess' from 21 days to 14 days in
respect of Mini Hydel Plants with individual capacity less than 7 MW and Bio Mass Power
Plants upto 10 MW capacity.
Secretary
GO TO INDEX
ENGG/Gen-62-II/2002-9 29th January,2002

Re: Deterioration of Stocks (Potatoes), insurance Coverfor Cold Storage run by DG Sets only.
Arising out of a query as to whether DOS Cover could be granted on Cold storages run by DG
Sets only, the Tariff Advisory Committee clarifies that cover could be granted under such
circumstances.
The FOES (Failure of (Public) Electric Supply) extension is not relevant in such cases.
Secretary
GO TO INDEX

Re: Rating of Aerial Ropeway Project under EAR Policy.
The Tariff Advisory Committee has decided to rate the works related to erection of an 'Aerial
Ropeway project' under EAR policy at the rate applicable to the Tariff entry provided for laying
of "transmission lines" under EAR policy as under:
Rs. 4.00 / 0.05 / 0.05 / 0.30 / 10,000 / 30,000
(Excess for theft and burglary claims shall be 25% of claim amount
subject to a minimum of Rs.15,000/-).
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1-1-01
Accordingly, it has been decided to incorporate a new tariff entry on 'Aerial Ropeway project'
under EAR Insurance Tariff.
Sl.No. Description Rate/Excess
A-10 Aerial Ropeway project Rate/Excess as per Item -'transmission lines' (Item T-10 of Rating
Schedule)
The above decision is efective from 29th January,2002.
Secretary
GO TO INDEX

Re:Rating for Extension of period of cover under project policies (CAR/EAR/MCE) with sum
insured more than Rs. 100 crores after expiry of the original policy period (Rating of Large
Projects)
Reference is drawn to GR No.25 under EAR insurance tariff and GR No.21 under CAR
insurance tariff, prescribing "Rates for Extension beyond policy period" for projects with sum
insured upto Rs.100 crs.
The Tariff Advisory Committee has now decided to adopt the same scale of rates for large
projects with sum insured exceeding Rs.100 crs. and upto Rs.1500 crs. It was further decided
that in the case of projects with sum insured between Rs. 100 Crores and 1500 Crores, the
extension rates shall apply only on the sum insured (as defined under 'Norms for Rating of Large
Projects') at the time of extension and not on the indemnity selected for various additional covers
Secretary
GO TO INDEX

Re: Breakdown Insurance cover for Microline Wheel Alignment System
The Tariff Advisory Committee has decided to cover "Microline Wheel Alignment System (for
alignment of car tyres )" under the EEI Policy.
Accordingly, a cross reference is made under MB insurance Rating Schedule - Group II (Rates
for Mechanical Items - Machines common to all Industries) as under :
M
---------------------------------- 80
1-1-01
Microline Wheel Alignment System To be rated under EEI Policy
Secretary
GO TO INDEX

Re: Machinery Insurance Policy - Indemnity provisions
Reference is drawn to Para No. 2 relating to "depreciation" under Provision No.-2: Basis of
Indemnity - Standard Policy Form - Machinery Breakdown Insurance Policy reading as under.
" No deduction shall be made for depreciation in respect of parts
replaced except for ( a) wear and tear parts and (b) parts for which
the manufacturers have specified a fixed life for use and the like".
It is now clarified that parts which are not supposed to last the full life of the machine will
have to be treated as wear and tear parts.
Secretary
GO TO INDEX
ENGG/Gen-4/2002-14 5th February, 2002

Re: Rating of ‘Manufacture of Compact Disks (CDs)’under ‘Erection All Risks
Insurance’
Reference is drawn to TAC Circular Engg/Gen-4/2002-6 dtd.25th January, 2002, conveying that
“Manufacture of Computer Discs (CDs)” shall be rated under “Plastic Goods Mfrg.” of EAR Tariff.
The word “Computer Discs (CDs)” should be corrected as “ Compact Discs (CDs) ”.
Secretary
GO TO INDEX
Engg/Gen-4/24/16/17/2002-15 11th March, 2002

Reg: Cover for terrorism under Engineering PoliciesEffective from 1st April 2002
Erection all Risks Insurance (EAR/MCE/SCE)
Contractors all Risks Insurance (CAR)
Contractor’s Plant and Equipment Insurance (CPM)
Electronic Equipment Insurance (EEI)
will be subject to the following revised provisions
1. Terrorism Damage Exclusion warranty as per the following wordings shall be made applicable to all the
above-mentioned types of policies.
Terrorism Damage Exclusion Warranty:
“Notwithstanding any provision to the contrary within this insurance it is agreed that this insurance excludes loss,
damage cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with
any act of terrorism regardless of any other cause or event contributing concurrently or in any other sequence to the
loss.
For the purpose of this warranty an act of terrorism means an act, including but not limited to the
use of force or violence and /or the threat thereof, of any person or group(s) of persons whether
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1-1-01
acting alone or on behalf of or in connection with any organisation(s) or government(s)
committed for political, religious, ideological or similar purpose including the intention to
influence any government and/or to put the public, or any section of the public in fear.
The warranty also excludes loss, damage, cost or expenses of whatsoever nature directly or
indirectly caused by, resulting from or in connection with any action taken in controlling,
preventing, suppressing or to in any way relating to action taken in respect of an act of terrorism.
If the Company alleges that by reason of this exclusion, any loss, damage, cost or expenses is not
covered by this insurance the burden of proving the contrary shall be upon the Assured.”
In the event any portion of this endorsement is found to be invalid or unenforceable, the
remainder shall remain in full force and effect.
2. Terrorism Damage Exclusion Warranty shall be incorporated under relevant sections
ofEAR, CAR, CPM and EEI policies as under:
EAR policy—as ‘exclusion-e’ under ‘General Exclusions’
CAR policy—as ‘exclusion-e’ under ‘General Exclusions’
CPM policy—as ‘exception-s’
EEI policy—as ‘exclusion-i’
3. Coverage for Terrorism Damage:
Terrorism Damage Exclusion Warrantycan be deleted by companies by charging additional
premium as per the following schedule.
i)0.05% for the annual Engineering policies i.e EEI & CPM policies
ii)0.5%0 per annum for the EAR & CAR policies to be charged on pro-rata basis for policy
period in excess of 12 months. For shorter policies i.e for a period up-to 6 months the rate shall
be 50%of annual rate and that for a period exceeding 6 months and up-to 12 months the rate shall
be the full annual rate. The coverage in respect ofterrorism will be subject to limits as in item 5
below.
4. Mid-term cover. No mid-term cover shall be granted for terrorism risk.
5.Limits of Insurance
The maximum loss limit under Terrorism cover shall be Rs.200 crores for any one risk.For this
purpose one risk shall be defined as one compound or one location.In respect of several
insurances within the same compound /location with all Indian insurers, the maximum aggregate
loss payable by all Indian insurers per compound/location shall be Rs.200 crores.If the actual
aggregate loss suffered at one location is more than Rs.200 crores, the amounts payable under
individual policies shall be reduced in the same proportion as Rs. 200 crores bears to the
aggregate of all losses in that location.
Premium rates shall apply on Total Sum Insured as detailed under:

Total Sum Insured Premium on TSI Overall liability

Upto 200 crs Full rate 200crs
Over 200crs to 250crs 97.5% of Full rate 200crs
Over 250crs to 500crs 95% of Full rate 200crs
Over 2000crs 75% of Full rate 200crs
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1-1-01
For loss liability limits in excess of Rs. 200 crores, insurers can obtain rates from reinsurers and
handle its reinsurance, subject to their chargingpremium as per item 3 for the coverage up to
Rs.200 crores .
6. Deductibles:
Every claim under terrorism cover will be subject to a deductible of 0.50% of TSI and subject to
aminimum of Rs. 1 lakh.
7. Deletion of Terrorism Damage Exclusion Warranty:
If the ‘Terrorism Damage Exclusion’ is deleted by payment of premium as per item 3 above, the
policy will be endorsed as per the wordings given below.
Terrorism Damage Coverage Endorsement
It is hereby declared and agreed that in consideration of payment of additional premium of
Rs._______, the ‘TerrorismDamage Exclusion Warranty attached to and forming part
of the within mentioned policy, stands deleted. The expression/s“terrorism and/or act of
terrorism” shall have the same meaning/s as contained in TerrorismDamage Exclusion
Warranty.
This endorsement does not cover loss of or damage to property caused by
A)
I.total or partial cessation of work or the retardation or interruption orcessation of any process or
operations or omissions of any kind.
II.Permanent or temporary dispossession resulting from confiscation, commandeering,
requisition or destruction by order of the Government or any lawfully constituted Authority.
III.Permanent or temporary dispossession of any building or plant or unit or machinery resulting
from the unlawful occupation by any person of such building or plant or unit or machinery or
prevention of access to the same.
IV.Burglary, housebreaking, theft, larceny or any such attempt or any omission of any kind of
any person (whether or not such act is committed in the course of a disturbance of public peace)
in any action taken in respect of an act of terrorism.
B)
loss or damage, cost or expenses of whatsoever nature directly or indirectly caused by, resulting
from or in connection with any action taken in controlling , preventing , suppressing or in any
way relating to action taken in respect ofany act of terrorism.
covered by this insurance the burden of proving the contrary shall be upon the insured.
The limit of coverage under this endorsement shall not exceed Rs. _______ (inserthere the
overall liability limit).
In the event of several insurances within the same location with all Indian insurers, the maximum
aggregate loss payable per compound/location by all Indian insurers shall be Rs.200 crores.If the
actual aggregate loss suffered at one location in respect of all Indian insurers is more than Rs.200
crores, the amounts payable under individual policies shall be reduced in the same proportion as
Rs. 200 crores bears to the aggregate of all losses with all Indian insurers in that location.
The coverage under this endorsement is subject to an excess of 0.5% of the total sum insured
subject to a minimum of Rs. One lakh for each and every claim in respect of both material
damage and loss of profits combined.”
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8. Treatment of Surcharge applied from 01.10.2001
A 10% surcharge on account of terrorism was applicable w.e.f 1.10.2001. All such insurance will
be cancelled on pro-rata basis as on 31.3.2002 and fresh insurance will be effected w.e.f 1.4.2002
for the un-expired period with the revised rates for terrorism risks on pro-rata basis.
In the case of insurance of risks where insurers may have already concluded reinsurance
arrangements and such cancellation is not required by reinsurance arrangements, insurers will
have the option to continue the present insurance (where 10% surcharge has been collected) till
expiry.
Insurers may advise their operating offices suitably.
Secretary
GO TO INDEX
Engg/Gen-4/24/16/17/2002-16 15th March, 2002

Reg: Cover for terrorism under Engineering Policies-CECR (Civil Engineering
Completed Risks)
This refers to the TAC Circular Engg/Gen-4/24/16/17/2002-14 dated 15th March, 2002 on the
above subject.Effective from 1-4-2002 the following revisedprovisions will be applicablefor
terrorism coverin respect of CECR policies.
1) Terrorism cover will be a separate coverwhich can be granted only in conjunction with Riot,
Strike and Malicious Damage cover (RSMD).Terrorism cover will not be given in isolation
without RSMD cover.
2)The Riot, Strike, Malicious and Terrorism Damage endorsementunder the Standard CECR
Policy will be renamed as Riot, Strike, Malicious Damage endorsement and will exclude
terrorism damage and the relevant provision will stand amended to read as under:
Riot, Strike and Malicious Damage
Loss of or visible physical damage or destruction by external violent means to the property
insured directly caused by
a)The act of any person taking part together with others in any disturbance of the public peace (whether in connection with a
strike or lockout or not) not being an occurrence mentioned in exclusion 6(a) and (b) of the CECR policy.
b)The action of any lawfully constituted authority in suppressing or attempting to suppress any such disturbance or in
minimising the consequences of any such disturbance.
c)The willful act of any striker or locked-out worker done in furtherance of strike or in resistance to a lock-out resulting in
visible physical damage by external violent means.
d)The action of any lawfully constituted authority in preventing or attempting to prevent any such act or in minimising the
consequences of any such act.
e)Any malicious act but excluding any omission of any kind of any person (whether or not such act is committed in the
course of a disturbance of public peace) provided that the Company shall not be liable for anyloss or damage arising
out of or in course of burglary, housebreaking, theft or larceny or any attempt by any person taking part therein.
This insurance does not cover –
a)Loss or earnings, loss of delay, loss of market or other consequential or indirect loss or damage of any kind or description
whatsoever.
b)Loss or damage resulting from total or partial cessation of work or the retarding or interruption or cessation of any process or
operation or omission of any kind.
c)Loss or damage occasioned by permanent or temporary dispossession resulting from confiscation, commandeering or
requisition by any lawfully constituted authority.
d)Loss or damage occasioned by permanent or temporary dispossession of any building or plant or unit or machinery resulting
from theunlawful occupation by any person of such building or plant or unit or machinery on prevention of access to the same.
PROVIDED nevertheless that the Company is not relieved under (c) or (d) above of any liability to the Insured in respect of
physical damage to the property insured occurring before dispossession or during temporary dispossession.
If the Company alleges that loss/damage is not caused by any malicious act, the burden of proving the contrary shall be upon the
insured.
3) Terrorism Damage Exclusion Warranty :
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Notwithstanding any provision to the contrary within this insurance it is agreed that this
insurance excludes loss, damage cost or expense of whatsoever nature directly or indirectly
caused by, resulting from or in connection with any act of terrorism regardless of any other cause
or event contributing concurrently or in any other sequence to the loss.
For the purpose of this endorsement an act of terrorism means an act, including but not limited to
the use of force or violence and / or the threat thereof, of any person or group(s) of persons
whether acting alone or on behalf of or in connection with any organisation(s) or government(s),
committed for political, religious, ideological or similar purpose including the intention to
influence any government and/or to put the public, or any section of the public in fear.
The warranty also excludes loss, damage, cost or expenses of whatsoever nature directly or
indirectly caused by, resulting from or in connection with any action taken in controlling,
preventing, suppressing or in any way relating to action taken in respect of any act of terrorism.
In the event any portion of this endorsement is found to be invalid or unenforceable, the
remainder shall remain in full force and effect.
4)Mid-term Cover : No mid-term cover shall be granted for RSMD and Terrorism.
5) Rate for Terrorism Cover :
Premium will be charged separately for covering terrorism risk atRe.0.50 per mille.
The above rate will be charged separately on the total sum insured for Material Damage and Loss
of Profit.
6) Limit of Insurance for terrorism :
The maximum loss limit under Terrorism cover shall be Rs.200 crores for any one risk
(MD+LOP).For this purpose one risk shall be defined as one compound or one location.In
respect of several insurances within the same compound / location with all Indian insurers, the
maximum aggregate loss (MD+LOP) payable per compound / location shall be Rs.200 crores.If
the actual aggregate loss suffered at one compound / location is more than Rs.200 crores, the
amounts payable under individual policies shall be reduced on pro rata basis.
Premium rates shall apply on Total Sum Insured as detailed under:

TotalSum Insured (MD+LOP) Premium on Total Sum Overall Liability

(Rs) Insured (MD+LOP)Cap
(TSI)
Upto 200 crores Full rate 200 crores
Over 200 crs to 250 crs 97.5 % of full rate 200 crores
Over 250 crs to 500 crs 95 % of full rate 200 crores
Over 500 crs to 1000 crs 90 % of full rate 200 crores
Over 1000 crs to 1500 crs 85 %of full rate 200 crores
Over 1500 crs to 2000 crs 80 %of full rate 200 crores
Over 2000 crs 75 %of full rate 200 crores
For loss liability limits in excess of Rs. 200 crores, insurers can obtain rates from reinsurers and
handle its reinsurance, subject to their charging premium as per item 6 for the coverage up to
Rs.200 crores.
7) Deductibles : Every claim under terrorism cover will be subject to a deductible of0.5 % of
TSI subject to a minimum of Rs. 1 lakh
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8) Terrorism Damage Cover Endorsement : When the insured opts for Terrorism Damage
cover by paying additional premium as provided under item no (5) above, cover will be granted
by attaching the following endorsement:
“It is hereby declared and agreed that in consideration ofpayment of additional premium of
Rs._______, the TerrorismDamage Exclusion Warranty of the Riot, Strike, Malicious
Damage provision forming part of the within mentioned policy stands deleted. The
expression/s“terrorism and/or act of terrorism” shall have the same meaning/s as contained in
TerrorismDamage Exclusion Warranty.
This endorsement does not cover loss of or damage caused by
A)
a)Loss or earnings, loss of delay, loss of market or other consequential or indirect loss or damage
of any kind or description whatsoever.
b)Loss or damage resulting from total or partial cessation of work or the retarding or interruption or cessation of any process or
operation or omission of any kind.
c)Loss or damage occasioned by permanent or temporary dispossession resulting from confiscation, commandeering or
requisition by any lawfully constituted authority.
d)Loss or damage occasioned by permanent or temporary dispossession of any building or plant or unit or machinery resulting
from theunlawful occupation by any person of such building or plant or unit or machinery on prevention of access to the same.
PROVIDED nevertheless that the Company is not relieved under (c) or (d) above of any liability to the Insured in respect of
physical damage to the property insured occurring before dispossession or during temporary dispossession.
B)
loss or damage, cost or expenses of whatsoever nature directly or indirectly caused by, resulting
from or in connection with any action taken in controlling , preventing , suppressing or in any
way relating to action taken in respect ofany act of terrorism.
The limit of coverage under this endorsement shall not exceed Rs. _______ (inserthere the
overall liability limit for Material Damage + Loss of Profit). In respect of several insurances
within the same compound / location with all the Indian insurers, the maximum aggregate loss
(MD+LOP) payable per compound /location shall be Rs.200 crores.If the actual aggregate loss
suffered at one compound / location is more than Rs.200 crores, the amounts payable under
individual policies shall be reduced on pro rata basis.
The coverage under this endorsement is subject to an excess of Re. 0.5% of the total sum insured
subject to a minimum of Rs. 1 lakhfor each and every claim in respect of both material damage
and loss of profits combined.”
9) Treatment of surcharge applied from 1-10-2001 :
10% surcharge on account of terrorism was applicable w.e.f 1-10-2001.All such insurance will
be cancelled on pro rata basis as on 31-3-2002 and fresh insurance will be effected w.e.f 1-4-
2002 for the unexpired period with the revised rates for terrorism risks on pro-rata basis.
In the case of insurance of risks where the insurers may have already concluded reinsurance
arrangements and such cancellation is not required by reinsurance arrangements, insurers will
have the option to continue the present insurance (where 10% surcharge has been collected ) till
expiry.
Insurers areadvisedto informtheir operating offices suitably.
Secretary

GO TO INDEX
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Engg/Gen-4/24/16/17/2002-17 26th April, 2002
Re: Cover for Terrorism under Engineering Policies
Reference is drawn to Circulars :
i)Engg/Gen-4/24/16/17-14 dtd. 11-3-2002
ii) Engg/Gen-4/24/16/17-15 dtd. 15-3-2002
giving details of rates/terms to beadopted for coverage of ‘terrorism’.
Further reference is also drawn to Circular :
FT/3/2002 dtd. 8-4-02
revising the rates, terms for coverage of ‘terrorism’ :
Arising out of representations seeking clarifications on the Circular dtd. 8-4-02 referred
to above, it is clarified that all “Engineering Policies” viz. EAR, CAR, CPM, EEI & CECR will
be treated at par with industrial risks.
Secretary

GO TO INDEX
Engg/Gen-4/24/2002-18 29th October, 2002.

Volume Discount under EAR/SCE and CAR insurances
Reference is invited to Item 2 under Annexure - I - “Norms for Rating of Large ProjectswithSum
Insured above Rs.100 crs and upto Rs.1500 crs.” underEAR/SCE and CAR insurance tariffs,
prescribing scheme of Volume Discount .
TAC has been receiving queries as to whether volume discount could begranted on the basis of
total Sum Insured of a project where each of its units/sections are rated ‘per-se’ based on
individual sums insured and periods of erection or construction as the case may be.
It is clarified that volume discount in such cases shall be based on the sum insured of the
respective units/sections and not on the total sum insured of the project.
It is further clarified that as per the tariff it is not permissible to issue a single policy with
different periods of insurance for different units/sections of the project.
Secretary
GO TO INDEX
Engg/Gen-16/2002- 19 30th December, 2002

Re : Electronic Equipment Insurance Policy - Floater Policy.
Arising out of a representation, Tariff Advisory Committee has agreed for issuance of ‘floater
policy’ covering electronic equipment anywhere in India subject to the following :
i) to restrict the floater to named locations only .
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ii) EEI Policy shall not be extended to cover transit risks from one location to the other
iii) floater extra of 10% to be charged
Insurers may suitably incorporate a questionnaire in the "proposal form" to provide cover at
multi locations.
Secretary

GO TO INDEX
__________________________________________________________________
Engg/Gen-10 /2002-20 30th December,
2002
Re: Clarification under MB Insurance Policy - Coverage of Imported Machinery.
Reference is drawn to the ‘declined list’ of machines which are excluded under MB tariff.
Tariff Advisory Committee has decided to delete the entry ‘any imported machinery which
cannot be repaired in the country’ from the ‘declined list’.
GO TO INDEX
________________________________________________________________________
Engg/Gen-16/2002-21 30th December,
2002
Re: Discount for opting Higher Excess under Electronic Equipment Policy for Equipment with
value upto Rs. 1 lakh
Tariff Advisory Committee has decided to amend the ‘Higher Excess Amounts’ under the
scheme for ‘Discount for opting Higher Excess’ (Sr.No.4)of ‘Electronic Equipment Insurance’
Tariff as below for Equipment with value upto Rs. 1 lakh :
Discount for opting Higher Excess :

S.No. HIGHER EXCESS DISCOUNT
a) Equipment with value upto Rs. 1 lakh
i) Equipment & External Data Media
1 7.5% of the claim amount subject to a minimum of Rs. 3,000/- 10%
2 10% of the claim amount subject to a minimum of Rs. 5,000/- 20%
3 12.5% of the claim amount subject to a minimum of Rs.10,000/- 30%
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4 15% of the claim amount subject to a minimum of Rs. 20,000/- 42.5%
ii) For Winchester Drive (Hard Disc)
1 12.5% of the claim amount subject to a minimum of Rs. 5,000/- 10%
2 15 % of the claim amount subject to a minimum of Rs. 12,500/- 20%
3 17.5% of the claim amount subject to a minimum of Rs.25,000/- 30%
4 20 % of the claim amount subject to a minimum of Rs. 50,000/- 42.5%

GO TO INDEX
_______________________________________________________________________
Engg/Gen-24/VII/2002-22 3 0th December,
2002
Re: CAR Insurance - ‘Refurbishment of existing Sewage System’
Tariff Advisory Committee has decided to introduce a tariff entry under CAR Insurance as
under:

Sl Risk Premium Rates (%o) Excess - 5% of claim

No amount subject to
Minimum of Rs.
Risk
Code
Minimum Rate Addl.Rate Normal AOG/Major

upto first 3 per month Perils/
months beyond 3
months Collapse
1 2 3 4 5 6 7
- 16 B Refurbishment of 2.50 0.05 100,000 200,000

existing Sewage
Systems

GO TO INDEX
Engg/Gen-4/24/2002-23 . 30th December, 2002
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Re: Discount for higher excess under CAR/EAR Insurance of Projects
with S.I. less than Rs.100 crs.
Tariff Advisory Committee has revised the scheme for ‘Higher Excess Discount’ under
CAR/EAR Insurances as under.

Excess Discount in premium
2 times Normal Excess 5%
5" " 10%
10 " " 20%
20 " " 30%
30 " " 35%
40 " " 40%
50 " " 45%
100 " " 50%
>100 " " 55%

The above scale shall also apply for opting ‘higher excess’ for Earthquake cover.
GO
TO INDEX
_______________________________________________________________
Engg/Gen-17/2002-24 30th
December, 2002
Re: Cover for CPM equipment as part of CAR and EAR/SCE Projects
Reference is drawn to G.R No.24 (under EAR tariff) and G.R.No.20 (under CAR tariff)
prescribing rates for CPM equipment forming part of the EAR or CAR projects.
Tariff Advisory Committee has decided to modify the relevant sections as under :
" CONSTRUCTION MACHINERY PLANTS AND EQUIPMENTS
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A separate Sum Insured is to be fixed for Construction Plant, Machinery and Equipments used
for projects Insured under CAR or EAR policies.
a) Sum Insured of CPM equipment not exceeding 5% of EAR/SCE OR CAR Sum Insured or
Rs 25 lakhs whichever is lower
Where the Sum Insured for Construction Plant, Machinery and Equipment does not exceed 5%
of the Sum Insured for EAR/SCE (OR CAR) Insurances, or Rs.25 lakhs whichever is lower, the
same can be covered under the EAR/SCE (OR CAR) Policy, but at rates, terms and excesses, as
per tariff on ‘Contractor’s Plant and Machinery Insurance’.
b) Sum Insured for CPM equipment exceeding 5% of EAR/SCE OR CAR Sum Insured or Rs
25 lakhs whichever is lower
Where the Sum Insured for Construction Plant, Machinery and Equipment exceeds 5% of Sum
Insured for EAR/SCE (OR CAR) Insurance or Rs. 25 lakhs whichever is lower, the same should
be separately covered under the Contractor’s Plant and Machinery Policy at rates and excesses as
per Tariff on ‘Contractor’s Plant and Machinery Insurance".
GO
TO INDEX
___________________________________________________________________________
Engg/Gen-10/2002-25 30th December, 2002
Re:MB Insurance : Rating of ‘Radio Frequency Dryer’
Tariff Advisory Committee has decided to introduce a tariff entry for " Radio Frequency Drier"
under MB Insurance as under:
Group I : Electrical Machinery installed in Plants other than cold storages and ice plants
Radio Frequency Drier
Rate : Rs. 1.25%
Excess : As per tariff
The Valve Oscillator/Triode Tube Oscillator of the "Radio Frequency Dryer" shall be subject to
depreciation endorsement as per the wordings given below.
"It is agreed and understood that otherwise subject to the terms, exclusions, provisions and
conditions contained in the policy or endorsed thereon, the indemnification for loss or damage to
Valve Oscillator and/or Triode Tube Oscillator shall be limited to the actual value of such items
immediately prior to the occurrence of the loss or damage, including ordinary freight, erection
costs and custom duties and dues if any. Actual value of Valve Oscillator/Triode Tube Oscillator
shall be as under":
Age Actual value in %
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(months) of new replacement value
< 18 100
< 20 90
< 23 80
< 26 70
< 30 60
< 34 50
< 40 40
< 46 30
< 52 20
< 60 10
> 60 0

GO TO INDEX
Engg/Gen-10/2002-26 30th December, 2002

Re: MB Cover for an electronic and computer related equipment manufacturing
Tariff Advisory Committee has decided to rate an ‘Electronic and Computer related equipment
manufacturing facility’, comprising a Surface Mount Technology machine for placing /soldering
components on the printed circuit boards, a screen printer, a reflow oven, and in-circuit testor
etc., at Rs.1.00% subject to normal tariff excess.

GO TO INDEX
___________________________________________________________________
Engg/Gen10/2002-27 30th December, 2002
Re: Rating for Laying of CNG pipeline under CAR policy
Reference is drawn to Item No.14 of "Rate Schedule" under CAR tariff, indicating rates/terms
for "Laying of Oil & Gas Pipelines" as given below:

14. Laying of Oil & Gas Pipelines
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Risk Sl. Risk Premium Rates (%o) Excess - 5% of claim amount subject
Code No to Minimum of Rs

Minimum Addl.Rate per Normal AOG/Major Perils/

Rate upto first month beyond 3 Collapse
3 months months
140001 a) On Land Provisional rate Rs.15 per mille. Reference to be made to TAC for final
rate quotation.
140002 b) Under Sea or Provisional rate Rs.15 per mille. Reference to be made to TAC for final
River rate quotation
Tariff Advisory Committee has decided to delete the above entry from CAR tariff and decided,
to rate such proposals under following item of EAR tariff:

Risk Code Sl Description Rate for Rate for 1 Rate for 1 Rate for 1 Excess per claim is 5% of
1st month or month or month or part claim amount subject to
No Month+ 1 part thereof, part thereof, thereof, for minimum of Rs.
month for for period testing period
testing subsequent exceeding extension
10 months 12 months within policy

period
(Rs.%0)
(Rs.%0)
(Rs.%0)
(Rs.%0)
Normal Testing
period
1 2 3 4 5 6 7 8 9
140308 3 Oil/Liquid 3.50 0.15 0.20 0.50 100,000 500,000

Chemical/Liquid
Petroleum products
Pipelines
GO
TO INDEX
_____________________________________________________________________
Engg/Gen10/2003-3 (28 of 2002) 30th December, 2002
Re: Claims experience discount/loading - MB/IAR Policies.
This referes to the provision pertaining to ‘claims experience discount/loading’ under MB tariff.
Arising out of a query, TAC has clarified that in cases where an insured had availed MB policy
followed by IAR policy or vice versa without any gap between the renewals, claims experience
---------------------------------- 93
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discount/loading under MB policy could be allowed based on the experience of MB policies and
MB portion under IAR policies.
GO TO INDEX
******************************************************************************
************************************
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ENGINEERING CIRCULARS 2003
Circular No. Date of Effective Subject
Circular Date
Engg/Gen-17/ 13/03/03 13/03/03 Comprehensive Package Policy - CPM
2003-1 Equipment

Engg/Gen-10/ 17/03/03 17/03/03 MB Insurance rating of higher capacity TG
2003-2 Sets

Engg/Gen-10/ 17/03/03 17/03/03 Machinery Insurance cover for “Thermo
2003-3 Vacuum Chamber”

Engg/Gen-6/ 17/03/03 17/03/03 Time excess under MLOP Insurance
2003-4
Engg/Gen- 7/04/03 7/04/03 Rating under MB Tariff : Group IV -
10/2003-5 Fertilizer plants/ Petrochemicals
plants/Refineries
Engg/Gen-10 7/04/03 7/04/03 Special Exclusion No. 2 of MB Policy
& 17/2003-
6
Engg/Gen- 7/04/03 7/04/03 MB Policy - Extension of time span
10 /2003-7 between successive overhauls for turbines
and turbo generator sets
Engg/Gen- 7/04/03 7/04/03 Rating of plant manufacturing "Graphite
4/2003-8 Electrodes" under EAR Insurance
Engg/Gen- 7/04/03 7/04/03 (i) Volume Discount under CAR tariff
24/2003-9
Engg/Gen- 7/04/03 7/04/03 Rating of ‘Merry go-round arrangement on
17/2003-10 rails’ under CPM insurance
Engg/Gen-4 7/04/03 7/04/03 EAR and CAR Insurance: Projects with S.I.
&24 /2003-11 less than Rs.100 Crs.Higher Excess
Engg/Gen- 7/04/03 7/04/03 CAR Insurance- Rating of Bridges on
24/2003-12 rivers/creeks, Dams/Coffer dams, Aqua
ducts etc.,
Engg/Gen- 7/04/03 7/04/03 Rating of " Laying Fibre Optic Cables
4 /2003-13 below Sea Bed "- under EAR Insurance
Engg/Gen- 4/11/03 1/12/03 Maintenance Visits Cover’ and ‘Extended
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4&24/2003-14 Maintenance Cover’
Engg/Gen- 4/11/03 1/12/03 MB Insurance - Rating of AC/DC
10/2003-15 Generators under Group I - ‘Rate Schedule’

Engg/Gen-17/2003-1 13-3-03

Comprehensive Package Policy - CPM Equipment

The Tariff Advisory Committee in its 4th meeting held on 25-8-99 had
considered a proposal to allow the insurers to issue contingency policy on ‘FIRST
LOSS BASIS’ on CPM equipment where there were difficulties experienced by the
insureds in declaring values of the individual CPM equipment, particularly in the case
of large projects and considering the multifarious covers like transit risks, internal
breakdowns, etc., etc., required in such projects.

It was decided that the Insurance Companies may consider proposals for
contingency policy subject to adequate R.I. support including cover on First Loss
basis where there was difficulty in providing individual Sum Insured for various
machineries at different locations.
Arising out of representations from insurers for reviewing the above decision,
the TAC in it’s 13th meeting held on 10th Feb. 2003, decided that the provision for
issuing Contingency Cover could be continued subject to the following:

i) The rates and terms for tariff components should be as per tariff. For MB
cover a minimum additional rate of 0.70% should apply over and above the applicable
CPM Tariff rate. Premium for non-tariff covers should be in addition to the premium
applicable for tariff covers.

ii) Sum Insured should be on ‘reinstatement value’ basis as in CPM/MB
policies. In other words, First-loss Policies would not be allowed.

Secretary

GO TO
INDEX
_____________________________________________________________________
___
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Engg/Gen-10/2003-2 17-3-03

Re: MB Insurance rating of higher capacity TG Sets
Reference is drawn to the Item No. 2(b)- “Turbo Generator Sets with capacity
upto 50 MW”, under Group-1, ‘Rate Schedule’ of MB tariff. The Tariff Advisory
Committee has decided that the existing rate of 1.50% for sets upto 50 MW
capacity shall also apply for sets upto 500 MW. Accordingly, the tariff entry is
modified as under:

Group I - Electrical Machinery installed in Plants other than Cold Storages and
Ice Plants
Risk Sl. Item Rate (%) Excess
Code No.
102416 2(b) Turbo Generator Sets with 1.50 As per tariff
capacity upto 500 MW
N.B:For higher capacity sets beyond 500MW, reference shall be
made to Committee

Insurers are requested to make a note of the change and advise the operating
offices accordingly.

Secretary
GO TO
INDEX

Engg/Gen-10/2003-3 17-3-03

Re: Machinery Insurance cover for “Thermo Vacuum Chamber”

The Tariff Advisory Committee has decided to introduce a tariff entry for
“Thermo Vacuum Chamber” under MB insurance. The new tariff entry will be as
under:

“ Group I : Mechanical items(Machines common to all Industries)
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Thermo Vacuum Chamber
Rate : Rs. 0.75%

Excess : As per tariff
N.B: 1) The equipment as a whole is to be insured.

2) No MB cover can be given for refrigerants ”
Insurers are requested to make a note of the change and advise the operating

Secretary

GO
TO INDEX
_______________________________________________________________________

Engg/Gen-6/2003-4 17-3-03

Re: Time excess under MLOP Insurance

This refers to the Circular No. Engg/Gen-6/Fire-Gen-102/2001-12 dtd. 18th
April, 2001.

Arising out of a request from one of the insurers, TAC has clarified that the ‘Time-
excess’, referred to in the above Circular shall apply on the gross profit affected
following the damage.

Insurers are requested to take note of the change and advise the operating

Secretary

GO TO
INDEX
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Re: Rating under MB Tariff : Group IV - Fertilizer plants/Petrochemicals
plants/Refineries
Reference is drawn to rating of Item (e) - ‘Pumps and their drives’ under Group IV -
"Fertiliser Plants/Petrochemical Plants/Refineries" Section of MB Tariff. Arising out
of representation from an insurer, the Tariff Advisory Committee has modified the
above tariff entry as under:-

(e) Pumps and their Drives
Drives
Types of Pumps Pump

Motor Turbine/Engine
Driven Driven
a) Boiler Feed Water Pump 1.50 1.50 % 1.75 %

%

b) Pumps handling water 0.75
%
(other than Boiler Feed Water
Pumps)

c) Other pumps 1.25
%
N.B.: If a single value is given for the entire pump set, the higher rate of the ‘drive’
shall apply overall
The following tariff entries are deleted in view of the above modification.
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Risk Sr. Item No Rate %
Code No.
402,214 k Methanol Pump with 1.25 %

Motor
402,314 l Ammonia Pump with 1.25 %

Motor
402,414 m Carbomate Pump with 1.25 %

Motor
402,714 o Liquid Oxygen Pump with 1.25 %

Motor
402,814 p Fuel Oil Pumps with 1.25 %

Motor
accordingly.
Secretary
GO TO INDEX
_____________________________________________________________________
________

Engg/Gen-10 & 17/2003-6 7th April, 2003

Re: Special Exclusion No. 2 of MB Policy
Reference is drawn to ‘Special Exclusion No.2’ of MB Policy reading as under :-
"Loss of or damage to belts, ropes, chains, rubber tyres, dies, moulds, blades, cutters,
knives or exchangeable tools, engraved or impression cylinders or rolls; objects made
of glass, porcelain, ceramics, all operating media (e.g. lubricating oil, fuel, catalyst,
refrigerant, dowtherm) felts, endless conveyor belts or wires; sieves, fabrics, heat
---------------------------------- 100
1-1-01
resisting and anti-corrosive lining and parts of similar nature, packing material, parts
not made of metal (except insulating material) and non-metallic lining or coating of
metal parts; unless loss or damage to the equipments/machinery is indemnifiable in
terms of the policy."
Arising out of representations received from insurers, that universally loss or damage
to the above items are excluded even if there is loss or damage to main
equipment/machinery, it has been decided to delete the words ‘unless loss or damage
to equipments/ machinery is indemnifiable in terms of the policy’ from special
exclusion No.2’
The amended ‘Special Exclusion No.2’ will read as under :-
"Loss of or damage to belts, ropes, chains, rubber tyres, dies, moulds, blades, cutters,
knives or exchangeable tools, engraved or impression cylinders or rolls; objects made
of glass, porcelain, ceramics, all operating media (e.g. lubricating oil, fuel, catalyst,
refrigerant, dowtherm) felts, endless conveyor belts or wires; sieves, fabrics, heat
resisting and anti-corrosive lining and parts of similar nature, packing material, parts
not made of metal (except insulating material) and non-metallic lining or coating of
metal parts."
accordingly.
Secretary
GO TO INDEX
___________________________________________________________________________
Engg/Gen-10 /2003-7 7th April, 2003

Re:MB Policy - Extension of time span between successive overhauls for turbines and
turbo generator sets
Reference is drawn to the General Regulation No. 12 under MB Tariff and Circular
Engg/Gen-10/2001/20 dtd. 4th May, 2001, stipulating time span between successive
overhauls for ‘turbines’ and ‘turbo generator sets’.
Arising out of representation from an insurer, the Tariff Advisory Committee has
decided to introduce rates and terms for extending the interval between successive
overhauls for the above equipment, beyond 64,000 hrs/8 years and upto 72,000 hrs/9
years.
---------------------------------- 101
1-1-01
Period between successive terms & conditions
overhauls
Beyond 32,000 hrs/4 years and upto Excess shall be 25% of claim subject to a minimum
48,000 hrs/6 years of 150% of tariff excess
Beyond 48,000 hrs/6 years and upto Excess shall be 37.5% of claim subject to a minimum
72,000 hrs/9 years of 500% of tariff excess and subject to compliance
with manufacturer’s recomendations and satisfactory
report by the insurance company’s engineer.
accordingly.
GO TO INDEX
Secretary
_____________________________________________________________________________

Re: Rating of plant manufacturing "Graphite Electrodes" under EAR Insurance
Arising out of an insurer’s request to fix rates and terms on a proposal for erection of a plant
manufacturing ‘Graphite Electrodes’, the Tariff Advisory Committee decided to rate the proposal
as per rates and terms applicable for tariff item ‘Furnace (oil /gas fired)’ under EAR tariff as
given below. Accordingly a new tariff entry has been introduced as under:
Risk Sl Description Rate for Rate for 1 Rate for 1 Rate for 1 Excess per claim is 5% of claim am
Code 1st month or month or month or minimum of Rs.
No Month+ part part part
1 month thereof, for thereof, thereof,

testing subsequent for period
10 months exceeding for
testing
---------------------------------- 102
1-1-01
12 months period
extension
within
policy
(Rs.%0)
period
(Rs.%0)
(Rs.%0)
(Rs.%0)
Normal Testing period
1 2 3 4 5 6 7 8 9
70603 9 Graphite 2.50 0.05 0.05 0.30 15,000

Electrodes
Plant
accordingly.
Secretary
GO TO INDEX
_____________________________________________________________________________

Re:(i) Volume Discount under CAR tariff
(ii) Earthquake Cover under CAR Tariff
Reference is drawn to the below mentioned ‘General Regulations’ appearing under
the CAR tariff.
General Regulation No. 6 : "Computation of Premium"
General Regulation No. 9 : "Additional Rates for Earthquake"
Arising out of representations from insurers, Tariff Advisory Committee has amended
the above regulations as under:
G.R. No. 6 : "Computation of Premium"
---------------------------------- 103
1-1-01
A) Premium shall be computed for the total period commencing from :-
i) Commencement of work OR
ii)Date of arrival of the first consignment at the site of
erection
B) Volume discount:
i) No Volume discount should be granted for projects with Sum Insured upto Rs.100
crores.
ii) For projects with Sum Insured above Rs.100 Crs and upto Rs.1500 Crs, the
applicable Volume Discount shall be as per ‘Annexure-1’ of CAR tariff (Norms for
rating of Large projects)
iii) Volume Discount will not be applicable for the following extensions :
a) Additional Rate for risks situated in Earthquake zone I & II
b) Additional Rate for testing of second hand machinery
c) Policy Extension Rates
d) Maintenance Period Rate
e) Air freight
f) Additional Custom Duty
g) Fabricators premises extension
h) Intermediate Storage
Sheet ½ of C/R: ENGG/7/3/2003 cont’d on sheet 2/2
G.R.No. 9 : "Additional Rates for Earthquake(Fire & Shock) Perils"
Irrespective of the Sum Insured for CAR the following additional rates are to be
charged over the CAR Rate for risks located in Earthquake Zones (as defined in the
Fire Tariff).
Zone Applicable rate (%o) per annum
Zone - I 1.00
---------------------------------- 104
1-1-01
Zone – II 0.50
Zone – III Nil
Zone – IV Nil
Notes -

a) These additional rates take care of Earthquake (Fire and

Shock) perils only.
b) These additional rates are to be charged on pro-rata basis
for period shorter than one year.
c) All Acts of God perils other than Earthquake (Fire
and shock) are taken care of in the CAR Rates prescribed.
However no reduction in the rates can be allowed for
excluding any of these perils.
d) Earthquake cover is optional in both the Zones I & II ,
but this cannot be opted mid-term or for part of the total
CAR period. Thus these extras (viz Rs.1.00 per mille per
annum for Risks in Zone I and Rs. 0.50 per mille per
annum for risks in Zone II) are to be charged for total CAR
period (including all extensions).
e) Earthquake cover can be granted on first loss basis with
Sum Insured limits of 20% (OR 10%) of the total Sum
Insured at the rates of 50% (OR 40%) of the tariff rate
calculated on the total SI.
accordingly.
Secretary
GO TO INDEX <![endif]>
_____________________________________________________________________________
---------------------------------- 105
1-1-01
Re: Rating of ‘Merry go-round arrangement on rails’ under CPM insurance
Reference is drawn to the ‘rate schedule’ under CPM insurance tariff.
Arising out of representations from insurers, the Tariff Advisory Committee has
decided to rate ‘Merry go-round arrangement on rails’ under CPM tariff at Rs.1.25%
with applicable tariff excess.
Accordingly the present tariff entry is amended to read as under:
"Rating of General Items:
2. Merry Go Round Systems on Rails
Contractors Plant and Machinery Insurance cover for
‘Merry-go-Round arrangement on Rails’ (in respect of
locomotives and wagons only) may be granted as an
extension of CPM Policy. The applicable rate shall be
Rs.1.25% with applicable tariff excess.

The limit for TPL extension under such cover should not
exceed Rs. 1 crore for any one accident as well as the entire
policy period. Also, re-instatement of sum insured after a
loss shall not be allowed."

accordingly.
Secretary
_____________________________________________________________________________
Engg/Gen-4 &24 /2003-11 7th April, 2003

Re: EAR and CAR Insurance: Projects with S.I. less than Rs.100 Crs.Higher Excess
---------------------------------- 106
1-1-01
Reference is drawn to the ‘higher excess discount’ scheme as brought out in the
Committee’s Circular Engg/Gen-4/24/2002-23 dtd 30-12-2002, for projects with SI
less than Rs.100 Crs., under EAR and CAR insurance.
Arising out of an insurer’s request, the Tariff Advisory Committee has decided to
extend ‘higher excess discount’ as per the existing scheme on additional covers also.
Gen.Reg. 12-A: Higher Excess Discount Scheme for Projects with S.I. less than
Rs.100 cr.
Higher Discount Higher Discount

Excess Excess
opted opted
2 times 5% 40 40 %
times
5" 10 % 50 " 45 %
10 " 20 % 100 " 50 %
20 " 30 % >100 " 55 %

30 " 35 %

NB: The scale of discounts shall apply for all additional covers when"higher excess" is
opted.
accordingly.
Secretary
---------------------------------- 107
1-1-01
_____________________________________________________________________________
Engg/Gen-24/2003-12 7th April,

2003
Re: CAR Insurance- Rating of Bridges on rivers/creeks, Dams/Coffer dams, Aqua
ducts etc.,
Reference is drawn to the present CAR tariff entry- Risk Code-111127, Sl. No. 11-
"Bridges on rivers/creeks, dams/coffer dams, aqua ducts, via ducts, barrages, weir
cum cause way, structures/works in water".
Arising out of a representation from an insurer for rating of only the‘sub-structure’ of
a bridge, the Tariff Advisory Committee has amended the above tariff entry as under:
Excess - 5% of claim
amount subject to
Premium Rates (%o)
Minimum of Rs.
Risk Sl Risk
Code No

Minimum Addl.Rate Normal AOG/Major
Rate upto per month Perils/
first 3 beyond 3
months months Collapse
1 2 3 4 5 6 7
111127 11 Bridges on 6.00 0.10 150,000 500,000

rivers/creeks,
Dams/Coffer
dams, Aqua
ducts, Via ducts,
Barrages, Weir
cum cause way,
Structures/works
in water
Note:- In respect of bridges, the above rates will be applicable only when both sub-
---------------------------------- 108
1-1-01
structure and super-structure are covered. Otherwise 50% loading shall be applicable
on the CAR rate and excess shall be 1.5 times the tariff excess.
accordingly.
Engg/Gen- 4 /2003-13 7th April,

2003
Re: Rating of " Laying Fibre Optic Cables below Sea Bed "- under EAR Insurance

The Tariff Advisory Committee has decided to introduce a tariff entry for " Laying of
Optical Fibre Cables below sea bed " under EAR Insurance as under:

Risk Sl Description Rate for Rate for 1 Rate for 1 Rate for Excess per claim is
Code 1st month or month or 1 month 5% of claim amount
No Month+ part part or part subject to minimum

1 month thereof, for thereof, thereof, of Rs.
testing subsequent for period for
10 months exceeding testing
(Rs.%0) 12 months period
(Rs.%0) extension
(Rs.%0) within
policy
period
(Rs.%0)

Normal Testing
period
1 2 3 4 5 6 7 8 9
---------------------------------- 109
1-1-01
110800 L Laying of
Optical 6.00 0.15 0.20 0.50 400,000 12,00,000
8 Fibre
Cables
below the
sea bed
accordingly.
Secretary
GO TO INDEX
Engg/Gen-4 & 24/2003-14 4th November,

2003
Re: ‘Maintenance Visits Cover’ and ‘Extended Maintenance Cover’
under EAR/CAR Insurance Tariffs
Reference is drawn to rates prescribed for ‘Maintenance Visits Cover’ and ‘Extended
Maintenance Cover’ under EAR/CAR insurance tariffs.
Arising out of a representation from an insurer, it has been decided to amend the General
Regulation No. 26 of EAR insurance tariff & General Regulation No. 22 of CAR insurance
tariff, to read as under:

‘Maintenance Visits Cover’ & ‘Extended Maintenance Cover’

Details of cover Rate (in Rupees per mille)
Excess
upto 6 > 6 & upto 12 > 12 months
---------------------------------- 110
1-1-01
months months
As applicable
i) Maintenance Visits 0.50 per
0.25 0.50 for testing
Cover annum
period
ii) Extended 1.00 per

0.50 1.00
Maintenance Cover annum

a) Charging premium on pro-rata basis for periods less than 6 months, or 6 to 12 months
shall not be allowed. For periods exceeding 12 months, the rate chargeable will be on pro-
rata basis.
b) In case of deletion of maintenance visits/extended maintenance cover (availed at
inception of a policy) before attachment of risk, refund of premium may be given by
retaining 25% of the premium under this extension.
c) In case the risk is attached, no refund shall be allowed for deletion of maintenance
visits/extended maintenance cover.

The change will be effective for all new business incepting on or after 1st December, 2003.

Insurers are requested to make a note of the change and advise the operating offices accordingly.
Secretary
GO TO INDEX
_______________________________________________________
Engg/Gen-10/2003-15 4th November, 2003

Re: MB Insurance - Rating of AC/DC Generators under Group I - ‘Rate Schedule’
---------------------------------- 111
1-1-01
It has been decided to amend the tariff entry "AC/DC Generator other than those covered by
item ------------------" under Sl No.: IV(3) of Group-1, ‘Rate Schedule’ on ‘Electrical Machinery
installed in Plants other than Cold Storages and Ice Plants’ of MB Tariff to read as under:

Sl. No. Item Rate (%)
3 AC/DC Generators As applicable to the ‘drives’
The change will be effective for all new business/renewals incepting/falling due on or after 1st
December, 2003.

Insurers are requested to make a note of the change and advise the operating offices accordingly.

Secretary
GO TO INDEX

Circular No. Date of Circular Effective Date Subject
Engg/Gen-12/2004/1 25/3/2004 Boiler & Pressure Plant Insurance Tariff
Engg/Gen-4/2004/2 25/3/2004 EAR/SCE Insurance Tariff : Test Run

Definition for Thermal Power Plants
Engg/Gen-4/2004/3 25/3/2004 Rating of Oil/Gas Pipeline under EAR

Insurance
Engg/Gen-10/2004/4 7/5/2004 Rating under MB Tariff : Group IV -

‘Fertiliser Plant/ Petrochemical
Plants/Refineries’
Engg/Gen-10/16/2004/5 7/5/2004 General Regulations under

MB/EEI/CPM Tariffs -Sequence of
Computation of Premium Rate
---------------------------------- 112
1-1-01
Engg/Gen-16/2004/6 7/5/2004
Rating under MB Tariff : Group

II - ‘Mechanical Items’
Engg/Gen-16/2004/7 7/5/2004 Higher Excess scheme under EEI Tariff
Engg/Gen 4/2004/8 16/6/2004 Rating of Gas Turbines/Combined

Cycle Power Plants with Capacity above
200 MW
Engg/Gen-10/17/16/62/2004/9 20/7/2004 General Regulations under

MB/CPM/EEI & DOS (Potato) Tariffs -
‘Bonus Malus’ scheme.
Engg/Gen-5/2004/10 20/7/2004 Rating of Tunnels under CAR insurance

Tariff
Engg/Gen-12/2004/1 25th March, 2004

Re: Boiler & Pressure Plant Insurance Tariff
Reference is drawn to General Regulations of Boiler & Pressure Plant Insurance Tariff.
Arising out of a representation from an insurer, it is clarified that the provisions appearing under
G.R.27 - 'Rules for Cancellation' of M.B. Tariff are applicable to 'Boiler & Pressure Plant
Insurance' also.
Insurers are requested to take note and advise their operating offices accordingly.
Secretary
GO TO INDEX
___________________________________________________________________________
Re: EAR/SCE Insurance Tariff : Test Run Definition for Thermal Power Plants
Reference is drawn to the General Regulation No.27 under EAR/SCE Insurance Tariff reading as
under:
'The entire Power Station machinery are deemed to have commenced their first test operation or
test loading from the date of synchronisation of the Turbo Generator set with the grid system/bus
bar provided the date of synchronisation is within 72 hours from the date of introduction of
steam into turbine and shall continue till the Turbo Generator Set is operated at full load for a
continuous period of 72 hours or until expiry of testing period granted under the policy
whichever is earlier. If, however, the date of synchronisation exceeds 72 hours from the date of
introduction of steam of the first trial operation test loading is deemed to have commenced from
the date of introduction of steam into the turbine of the Turbo Generator set.'
---------------------------------- 113
1-1-01
Arising out of representation from an insurer, Tariff Advisory Committee has decided to charge
an additional rate of Re.1.00%o per month or part thereof if the trial operation at full load is
allowed to be conducted for periods in excess of 72 hours and upto 720 hrs..
Secretary
GO TO INDEX

Re: Rating of Oil/Gas Pipeline under EAR Insurance
Reference is drawn to "Rate Schedule" under EAR Tariff .
For easy reference, the tariff entries 'Oil/Liquid Chemical/Liquid Petroleum products Pipelines'
and 'Gas pipelines' are grouped together under a single heading 'Laying of Oil & Gas Pipelines'
as under:
Risk Sl Description Rate for Rate for 1 Rate for 1 Rate for 1 Excess per claim is 5%
Code 1st month or part month or month or of claim amount subject
No Month+ 1 thereof, for part part to minimum of Rs.
month subsequent thereof, for thereof, for
testing 10 months period testing Normal Testing
exceeding period period
(Rs.%o) (Rs.%o) 12 months extension
within
(Rs.%o) policy
period
(Rs.%o)
1 2 3 4 5 6 7 8 9
'Laying of Oil & Gas Pipelines'
a) Oil/Liquid
140308 Chemical/ 3.50 0.15 0.20 0.50 100,000 500,000
Liquid
Petroleum
products
Pipelines
b) Gas Pipe 4.00 0.15 0.20 0.50 100,000 500,000

070110 lines
Secretary
---------------------------------- 114
1-1-01
GO TO INDEX
Engg/Gen-10/2004/4 7th May, 2004.

Re: Rating under MB Tariff : Group IV - ‘Fertiliser Plant/
Petrochemical Plants/Refineries’
Based on the rating of specific case/s in the past, a tariff entry has been introduced for Ammonia
Converter under Group IV - ‘Fertiliser Plant/Petrochemical Plants/Refineries’ reading as under:
Risk Code Item Rate (%) Excess
401616 Ammonia Converter 2.00 As per tariff
Secretary
GO TO INDEX
_________________________________________________________________________
Engg/Gen-10/16/17/2004/5 7th May, 2004
Re: General Regulations under MB/EEI/CPM Tariffs -
Sequence of Computation of Premium Rate
Arising out of representation from an insurer, it is clarified that the following sequence should be
adopted for computation of the final rate:
EQ extension
MB/EEI policies CPM policy (other than EQ) under CPM
policy
1 Basic Rate 1 Basic Rate Basic rate *
Apply claims
Add 10% floater
experience
2 2 extra on rate as in Not applicable
discount/loading
(1) (if applicable)
on (1) above
---------------------------------- 115
1-1-01
Add 50% extra
Net rate after on 1/1+2 as
applying higher applicable for
3 3 Not applicable
excess discount equipment
on (2) above working
underground
Apply claims
experience
discount/loading
4 on As basic rate.
1/1+2/1+2+3/1+3
above as
applicable
Net rate after Net rate after

applying higher applying higher
5
excess discount excess discount
on (4) above on (3) above
N.B.: 1.The net rate shall not be less than 50% of the basic rate.
* In case of Floater Policy, the basic rate shall be the rate applicable for the highest zone (E.Q.)
Secretary
GO TO INDEX
_______________________________________________________________________
Engg/Gen-16/2004/6 7th May, 2004.
Re: Rating under MB Tariff : Group II - ‘Mechanical Items’
A tariff entry for ‘Electrostatic Precipitators’ under Group II - ‘Mechanical Items’ of MB tariff
reading as under has been introduced.

Risk Code Item Rate ( % ). Excess
---------------------------------- 116
1-1-01
Electrostatic
205708 0.60 As per Tariff
Precipitators
Secretary
GO TO INDEX
___________________________________________________________________________
Engg/Gen-16/2004/7 7th May, 2004
Re: Higher Excess scheme under EEI Tariff
It is clarified that Circular No.Engg/Gen-16/2002/21 dated 30.12.2002 would supercede the
provisions of earlier Circular No.Engg/Gen-10/16/17/2001/18 dated 4th May, 2001.
Insurers are requested to take note and advise their operating offices suitably
Secretary
GO TO INDEX
Engg/Gen-4/2004/8 16th June, 2004.

MW Re: Rating of Gas Turbines/Combined Cycle Power Plants with Capacity above 200

Reference is drawn to items (iv), (v) & (vi) of tariff entry ‘Gas Turbine/Combined Cycle Power Plants’
under “Rate Schedule” of EAR Tariff. With immediate effect, these items stand replaced by the following table:
Gas Turbines/Combined Cycle Power Plants: (GT/CCPP)

Risk code Sr. Rate for 1st Rate for 1 Rate for 1 Rate for 1 Excess per
Description
No. Month + 1 month or month or part month or part claim is 5% of
month part thereof, for thereof, for claim amount
testing thereof, for period testing period subject to
(Rs. %o) subsequent exceeding 12 extension minimum of
10 months (Rs. within policy Rs.
months %o) period (Rs. Normal/
(Rs. %o) %o) Testing period.
073310 --- iv) Above 3.75 0.10 0.10 0.50 200000/
100 MW & 600000.
upto 150
MW.
073310 A -- v) Above 4.00 0.10 0.15 0.50 400000/
150 MW & 1200000.
upto 200
MW
073310 B ---- vi) Above 4.50 0.10 0.15 0.50 2000000/
---------------------------------- 117
1-1-01
200 MW & 6000000.
upto
300
MW
073310 C ---- vii) Above 4.50 0.10 0.15 0.50 4000000/
300 MW & 12000000.
upto 500
MW
073310 D ---- viii) Above
500 MW To be referred to TAC
EXCESS / ENDORSEMENT-
a) For a gas Turbine Powers Station the excess prescribed will apply to all items.
b) For a Combined Cycle Power Plant, excess applicable for the Gas Turbine section will be the existing
excesses prescribed under ‘Gas turbine/CCPP’ items. However, for Steam section, the excesses applicable
will be as per tariff item (Steam Power Plant).
c) For test run definition of Gas turbines in CCPP, please refer Endt. No. 108.
Insurers are requested to take note and advise their operating offices suitably.

Secretary GO TO INDEX
Engg/Gen-10/17/16/62/2004/9 20th July, 2004

Re: General Regulations under MB/CPM/EEI & DOS (Potato) Tariffs - ‘Bonus Malus’
scheme.
This refers to TAC’s Circular No - ENGG/GEN-4/55/2001/14 dated 4th May, 2001. The ‘Bonus-
Malus’ table referred to therein stands revised as under:
BONUS/MALUS SCHEME UNDER MB, CPM, EEI & DOS POLICIES.
Average claims ratio in % for 5

years policy preceeding the Discount % Loading % Excess
expiring policy period
Upto 05 30 Normal
---------------------------------- 118
1-1-01
Above 50 and upto 60 Nil Nil Normal
Above 200 and upto 300 35 1.5 times tariff excess
Above 500 and upto 1000 50 3 times tariff excess
Above 1000 100 5 times tariff excess
The above decision is effective from 16 th August, 2004.

Secretary
GO TO INDEX
___________________________________________________________________________
Engg/Gen-5/2004/10 20 th July, 2004
Re : Rating of Tunnels under CAR insurance Tariff
Reference is drawn to tariff entry under the heading of "Tunnels"of the Rate Schedule of CAR
Tariff.
For the sake of greater clarity the above tariff entry stands modified as under with immediate
effect:
Excess - 5% of claims
Risk code Sl. No. Risk Premium Rates (%0) amount subject to Minium
of Rs.
---------------------------------- 119
1-1-01
Minium Addl. Rate
Rate up to per month AOG/Major
Normal
first 3 beyond 3 Perils/Collapse
months months
13 Tunnels and/or other civil constructions therein
Below
132167 i 10 0.10 400000 800000
water
131157 ii Others 7 0.10 200000 500000
Insurers are requested to take note and advise their oprating offices suitably.
Secretary
GO TO INDEX
---------------------------------- 120
1-1-01


Circular No. Date of Circular Effective Date Subject
Discount/Loading scheme for claim
Engg/Gen-6-VI/2005/11 01/04/2005 01/04/2005
experience under MLOP tariff
Engg/Gen-24-III/ Re : Rating of Storied Buildings

30/05/2005 30/05/2005
2005/12 under CAR tariff.
Engg/Gen-24-III/2005/13 Testing endorsement for EAR

30/05/2005 30/05/2005
portion of CAR Policy.
Engg/Gen-4/2005/14 Rating of Nuclear Power Plants
30/05/2005 30/05/2005
under EAR/SCE tariff.
Rating of Railway Bridges under
Engg/Gen-4/2005/15 14/11/2005
CAR Tariff
Revision of the notes under the tariff

Engg/Gen-4/2005/16 14/11/2005 item “Roads – Sl. No. 5” of CAR
Tariff.
Clarification on determination of
Engg/Gen-4/2005/17 14/11/2005 Sum Insured and volume discount
under EAR Tariff.
Duration of testing period cover for

Engg/Gen-4/2005/18 14/11/2005 Thermal Power Plant under EAR
Tariff
Deterioration of stocks (Potatoes)
insurance tariff – change in the
Engg/Gen-4/2005/19 14/11/2005
wordings of Exclusions – 1 a (i) under
DEFINITION.
__________________________________________________________________________
Engg/Gen-6-VI/2005/11 1st April, 2005
Re: Discount/Loading scheme for claim experience under MLOP tariff
Arising out of references from insurers for fixing loading/ excess for cases where claim
experience exceeds 300% , it has been decided to replace the existing table by the following
table in Section 1.10 of the norms for rating of MLOP Proposals :
No. of Yrs Discount (-)/Loading (+) scheme with additional Excess for claims
of experience (in %) under MLOP tariff.
Experience
Upto >5% >10 % >15 % >30 % >50 % >100 %
---------------------------------- 121
1-1-01
5% to
to to to to to
<=15
<=10% % <=30 % <=50 <=100 % <=300 %
%
1 Year -5% -2.5% -1.5% 0 +2.5% +5% +7.5%

2 Years -7.5% -5% -3% 0 +5% +7.5% +10%
3 Years & -10% -7.5% -5% 0 +7.5% +10% + 12.5%
above
>300% to <=500% >500% to <=700% >700% to <=1000% >1000%
/ Time Excess / Time Excess / Time Excess / Time Excess
1 Year +10% Time excess +12.5% Time excess +15% Time Excess +17.5% Time
specified in specified in specified in excess
Circular dt. 18th Circular dt.18th Circular dt. 18th specified
April, 2001 is to April, 2001 is to April, 2001 is to in
be increased by be increased by be increased by Circular
25%. 50%. 75%. dt.18th
April,
2001 is to
be
increased
by 100%.
2 Years +15% +17.5% +20% +25%
3 Years & +20% +25% +30% +35%

above
Note : Time excess is to be specified in number of days . Where the time excess increased as above results in
fraction, the same is to be rounded off to the next higher number of days.

Secretary
GO TO INDEX
Engg/Gen-24-III/2005/12 30th May 2005

Re : Rating of Storied Buildings under CAR tariff.
Arising out of a query received from an insurer, it is clarified that all the floors above the
foundation level, i.e. all floors including basement floors, are to be considered for rating of
Storied Buildings under CAR tariff.
Insurers are requested to advise their operating offices suitably.

Secretary
---------------------------------- 122
1-1-01
GO TO INDEX
Engg/Gen-24-III/2005/13 30th May 2005

Re : Testing endorsement for EAR portion of CAR Policy.
Arising out of a representation from an insurer, it is clarified as under :
a ) No testing provision shall be available under CAR tariff for equipment/ machinery.
b) Where cover for testing is required, the concerned equipment/machinery will have to be
covered separately under EAR tariff.
c) Where separate policies are issued in view of (b) above, clubbing of sum insured of the CAR
and EAR policies shall not be allowed for the purpose of volume discount.
Insurers are requested to advise their operating offices suitably.
Secretary
GO TO INDEX
Engg/Gen-4/2005/14 30th May 2005

Re : Rating of Nuclear Power Plants under EAR/SCE tariff.
Arising out of a representation from an insurer to provide rates for Nuclear Power Plants, the
existing entry in the EAR Rate Schedule under Risk Code - 15400/Sl. No.-10(d) shall stand
modified to read as under :
Rate for 1
month +1 Rate for 1
month Rate for 1
month or part Rate for 1
testing month or part
thereof, for month or part
thereof, for
period thereof, for Excess per claim is
subsequent 10
Risk exceeding 12 testing period 5% of claim amount
Sr.No Description months
Code months extension within subject to minimum of
policy period Rs.

(Rs.%o)
(Rs.%o)
(Rs.%o)
(Rs.%o)
Testing
Normal
Period
1 2 3 4 5 6 7 8 9
15400 10 (d) To be rated at par with Steam Power Plant (Risk Code 171106/Sl.no-11) subject to the following conditions:
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1-1-01
1. Equipment in hot zone shall not be insured.
2. No testing is permitted using nuclear/Radioactive substances.

Nuclear
3. Cover may be granted upto pre-commissioning stage only.
4. No maintenance cover shall be granted.

Secretary
GO TO INDEX

Sub :Rating of Railway Bridges under CAR Tariff

Arising out of a representation from an insurer, it has been decided to combine the existing entries “Flyovers on land (Sl. No. 8)”
and “Road Bridges on land made of (Sl. No. 10)” in the CAR Rate Schedule and replace them with a new entry as under :

10. Bridges / flyover on land -
Risk Sl.
Code No.
minimum of Rs.
Minimum Addl. Rate

Rate upto per month AOG/Major
Normal
first 3 beyond 3 Perils/Collapse
months months
101096 a) Steel 3.00 0.05 5,000/- 20,000/-
102116 b) RCC or pre-stressed 3.50 0.05 10,000/- 40,000/-

concrete
103136 c) Other materials 5.00* 0.10* 20,000/- 80,000/-

*Provisional rates – reference to be made to TAC for final rate quotation.
Notes : 1) Railway bridges are rateable under the above tariff item.
2) Refer item 5 – Roads, for Road bridges forming part of ‘Road Construction’.
It has also been decided to delete tariff entries “Flyovers on Land” and “Road Bridges on Land made of”.
GO TO INDEX
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1-1-01
Sub : Revision of the notes under the tariff item
“Roads – Sl. No. 5” of CAR Tariff.

It has been decided to revise the wordings of the notes under the tariff entry “Roads – Sl. No. 5”. The existing entry “Road – Sl. No.5” shall stand modified to read as below in view of the above
change :

5. Roads –
Risk Sl.
Code No.
minimum of Rs.
Minimum Addl. Rate

Rate upto per month AOG/Major

first 3 beyond 3
Normal Perils/Collapse
months months
052073 b) In Plain Areas 2.50 0.03 5,000/- 20,000/-
053095 c) In Hilly / Ghat areas 3.00 0.04 10,000/- 40,000/-

Notes :
1) Where value of Culverts and Road bridges does not exceed 20% of the contract value, the same may be deemed as covered at the above rates. Where the value of Culverts and Road
bridges exceeds 20% but does not exceed 75%, the proposal shall be rated as per tariff item “Canals/Culverts (not involving works under water)’ with Risk code 251087
2) Where the value of Road bridges alone exceeds 75% of the total contract value, the Road bridges shall be rateable ‘per se’ under the tariff item “Bridges /Flyover on land (Sl. No.10)”.
3) Where the tunnel value exceeds 10% of the contract value Tunnels shall be rated under the tariff item “Tunnels and / or other civil construction therein (Sl. No.13)”.

GO TO INDEX
Sub :Clarification on determination of Sum Insured and
volume discount under EAR Tariff.

Arising out of a representation from an insurer, it has been decided to clarify that since volume discount is allowed on the total
sum insured (which is inclusive of value of mandatory spare parts) considered for premium calculation, the value of spare parts
alone cannot be added back once again to the total sum insured for computing the volume discount.
GO TO INDEX
---------------------------------- 125
1-1-01

Sub : Duration of testing period cover for Thermal Power Plant under EAR Tariff
Arising out of a reference from an insurer, it has been decided that for extension of testing period upto 12
months within the policy period, normal testing period rate of Re.0.50%o shall apply.
In no case the duration of the testing period shall exceed 12 months. The excess applicable shall be as per EAR
tariff risk codes 181204, 181206, 181207, & 181217 under tariff entry “Turbo Generator Sets (Sl. No. 12)”.
Insurers are to use Endorsement No. ENGG/END-107 suitably modified to take care of the above change.
GO TO INDEX

Sub : Deterioration of stocks (Potatoes) insurance tariff – change in the wordings of Exclusions – 1 a (i) under
DEFINITION.
Arising out of a reference from an insurer, it has been decided to modify the existing wording for Exclusion No. 1 a (i) of
DEFINITION as below :
“1 The Term accident shall mean and be limited to
(a) Any sudden or unforeseen loss of or damage to the Refrigeration Machinery described in Schedule I of this policy due to
any accidental cause covered by machinery Insurance Policy specified in Schedule I and not hereinafter excluded.
Exclusions
(i) Failure of any part or parts requiring periodical renewal (such as failure of belts, gaskets, packing material, insulation and
joints of any kind except welded joints)”
GO TO INDEX
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All India Contractor's All Risks Insurance Tariff

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All India Contractor's All Risks Insurance Tariff

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ALL INDIA TARIFF

CONTRACTOR’S ALL RISKS INSURANCE

TARIFF ADVISORY COMMITTEE

ANY BREACH OF TARIFF SHALL BE DEALT WITH AS

PROPOSAL AND QUESTIONNAIRE FOR CONTRACTOR'S ALL RISKS INSURANCE

Information given herein will be treated in strict Confidence.

Put a ( ) mark wherever applicable.

S. No. Details Answer

1. a) Name & Address of the Principal Trade or a)

b) Name & Address of the Contractor Trade or b)

c) Name & Address of the Sub Cont- ractor, if c)

THE INSURED INTERESTS -

3. THE CONTRACT WORKS -

a) Full description of the Contract

b) Please give details -

i) Building (type of construction, number of

Note - A site plan of contract works may be

ii) If yes, give name of the Project

5. a) Will the construction be carried out by your

c) Past experience of the Contractor c)

6. a) Will any sub-contractors be taking part in the Yes No.

b) If yes, what is their position as regards this b)

THE CONTRACT SITE -

7. a) Location of Contract site a)

b) Nearest port and/or Railway Station and b)

Note - A complete lay out of the site may be

8. a) Are any Special Risks of one or more of the a)

i) Earthquake-Fire & Shock

b) Distance from nearest river, lake, reservoir or

c) Elevation of construction site above normal c)

9. Give full details regarding geological condition

10. a) Brief description of the arrangements made for a)

b) i) Will there be a watch and ward round the b) (i)

11. THE INSURANCE -

a) Estimated construction period excluding a) ... Months

b) Cover required during maintenance period, if a) . . . . months,

c) Probable date on which construction is c)

d) Period of Insurance required d). . . . months,

12. a) Have you approached any other Insurance Co.

b) If yes, please state name of the Insurance b)

13. Has any such proposal been -

c) accepted subject to an increased rate or special

14. i) Contract works -

a) Contract Price Rs. . . . . . . . . .

b) Materials or items supplied by the

c) Any additional items not included in (a)

d) Landed cost of imported items as at

TOTAL VALUE OF CONSTRUCTION . . . Rs………………

ii) Construction Plant & Machinery to be used at

iii) Clearance & Removal of Debris Rs. . . . . . . . . .

iv) Insured's own surrounding property. Rs. . . . . . . . . .

v) Extra charges for Express Freight (excluding

vi) On increased Replacement value for item i

vii) Third Party liability -

a) for any one accident Rs. . . . . . . . . .

b) for all Accidents during the period Rs. . . . . . . . . .

If yes, whether i) 2 times ii) 5 times Iii ) 10 times iv) 20 times

CONTRACTOR'S ALL RISKS INSURANCE POLICY

The Company ____________________________________INSURANCE COMPANY LIMITED

b) Name & Address of the Contractor(s)

c) Location of contract site

Premium (Subject to adjustment on completion of the project)