Engineering

Insurance
Iffco - Tokio
General Insurance Co. Ltd.
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ENGINEERING INSURANCE

Engineering Insurance

Project Normal Consequential

Insurance Insurance Insurance

1.Contractors’ 1.Machinery 1. Machinery

All Risk Break Down Loss of Profit

2. Erection 2. Boiler 2. Advance

All Risk &Pressure Loss of Profit
Plant
3. Marine Cum 3. Deterioration
3. Contractors’ of Stock
Erection Plant & Machinery

&
Electronic Equipment Policy
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ENGINEERING INSURANCE

1. CONTRACTORS ALL RISK INSURANCE ( CAR )

For Civil Engineering Projects ( Building, Bridges, Tunnels etc.)
To Contractors & Principals
Provides “All Risk” Cover (All Risks, if not specifically excluded)
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1. CONTRACTORS ALL RISK INSURANCE ( CAR )

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ENGINEERING INSURANCE

1. CONTRACTORS ALL RISK INSURANCE ( CAR )

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ENGINEERING INSURANCE

1. CONTRACTORS ALL RISK INSURANCE ( CAR )

For Civil Engineering Projects ( Building, Bridges, Tunnels etc.)
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ENGINEERING INSURANCE

1. CONTRACTORS ALL RISK INSURANCE ( CAR )

For Civil Engineering Projects ( Building, Bridges, Tunnels etc.)
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ENGINEERING INSURANCE

1. CONTRACTORS ALL RISK INSURANCE ( CAR )

For Civil Engineering Projects ( Building, Bridges, Tunnels etc.)
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ENGINEERING INSURANCE

1. CONTRACTORS ALL RISK INSURANCE ( CAR )

For Civil Engineering Projects ( Building, Bridges, Tunnels etc.)
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ENGINEERING INSURANCE

1. CONTRACTORS ALL RISK INSURANCE ( CAR )

For Civil Engineering Projects ( Building, Bridges, Tunnels etc.)
To Contractors & Principals
Provides “All Risk” Cover (All Risks, if not specifically excluded)
Generally Following Perils are Covered
- Fire, Lightning, Explosion
- Flood, Inundation
- Windstorm of any kind
- Earthquake, Landslide, Subsidence
- Theft & Burglary
- Accidental Damage, Bad Workmanship, Lack of Skill,
Negligence, Malicious Acts or Human Error
- Collapse, Impact etc.
- Act of Terrorism.

+ Third Party Liability & Other Exposures, if required

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ENGINEERING INSURANCE

( CAR contd.)
Sum Insured :
Equal to the Estimated Complete Erected Value
Which Includes
Material, wages, Construction Costs, Freight, Custom Duties
& Items supplied by the Principal.
If Under Insurance
Average Clause is applied.

Cover Commences
from the commencement of work or
after the unloading of the property at the site.

Cover Expires
When the completed work is taken over or put into service or, on
the date specified in the Policy.
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ENGINEERING INSURANCE

2. ERECTION ALL RISK INSURANCE ( EAR )

Also Known as “ Storage Cum Erection”

- Issued for Erection of Electrical Plant and Machinery & Equipment
( Involving no or very little Civil Engineering work )
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2. ERECTION ALL RISK INSURANCE ( EAR )

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ENGINEERING INSURANCE

2. ERECTION ALL RISK INSURANCE ( EAR )

Also Known as “ Storage Cum Erection”

- Issued for Erection of Electrical Plant and Machinery & Equipment

( Involving no or very little Civil Engineering work )

Coverage
Same as CAR Policy + 3rd Party Cover if required.

Sum Insured :
Equal to the Estimated Complete Erected Value
Which Includes
Material, wages, Construction Costs, Freight, Custom Duties
& Items supplied by the Principal.
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ENGINEERING INSURANCE

( EAR contd.)
If Under Insurance
Average Clause is applied.
( The Insured has to declare changes in the Sum Insured due
to market fluctuations in Wages and/or Prices )

Cover Commences
from the commencement of work or
after the unloading of the property at the site.
Cover Expires
until immediately after the first Test Operation or Test Loading
is concluded,
But in no case beyond four weeks from the date on which
After completion of Erection, a trial running is made,
and/or
readiness of the work is declared by the Erector / Contractor,
Whichever is earlier.
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ENGINEERING INSURANCE

3. MARINE CUM ERECTION ( MCE )

- Marine + Erection Cover
Means Marine ( Import/Export and/or Inland Transit
Insurance Cover with Erection All Risk.
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ENGINEERING INSURANCE

3. MARINE CUM ERECTION ( MCE )

- Cover Starts
from the moment when the equipment leaves the warehouse
and continues during the voyage to the Port of Entry,
Unloading at the Port,
Inland Transit to the Site
including Incidental Storage
and there after during Erection, Testing and Commissioning.

- Marine Cover
All Risk ( Institute Cargo Clauses ‘A’ attached )
+ War & SRCC if required.
( War Risk only up to Ocean Voyage )
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4. MACHINERY BREAKDOWN POLICY ( MBD )

- Insurance of
Electrical, Mechanical, and Lifting Equipments.
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ENGINEERING INSURANCE

4. MACHINERY BREAKDOWN POLICY ( MBD )

- Insurance of
Electrical, Mechanical, and Lifting Equipments.
- Covers
unforeseen and sudden physical damage by any cause. (subject to
the exclusions)
- Sum Insured
Current Replacement Value.
- Covers the Property
1. While it is at work or at rest ,
2. While being dismantled for cleaning or overhauling,
3. During cleaning or overhauling operations,
4. When being shifted within premises,
5. During subsequent erection.
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ENGINEERING INSURANCE

5. CONTRACTORS’ PLANT & MACHINERY (CPM) POLICY

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5. CONTRACTORS’ PLANT & MACHINERY (CPM) POLICY

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5. CONTRACTORS’ PLANT & MACHINERY (CPM) POLICY

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ENGINEERING INSURANCE

5. CONTRACTORS’ PLANT & MACHINERY (CPM) POLICY

- Can be Insured as an additional Item under CAR / EAR
If Sum Insured is relatively small
- either up to 5% of total sum insured under CAR /
EAR,
- or up to Rs. 25 Lac.
- If Sum Insured exceeds this limit,
a separate annual Policy can be issued
for use of Plant & Machinery at different Projects
during the year.
- The Cover is operative
as per MBD Policy,
and at separate locations ( to be informed to the Insurer )
and even at the Contractors’ own premises while at rest.
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ENGINEERING INSURANCE

(CPM Contd.)
Covers unforeseen and sudden physical loss or damage from any cause
including –
- Burglary, theft, riot and strike, and malicious damage
- Fire and Lightening, external explosion,
- Earthquake, flood, inundation, subsidence, landslide and
rockslide,
- Storm, tempest, hurricane, typhoon and tornado,
- Accidental damage at work due to faulty manhandling,
dropping or falling, collapse, collision and impact.
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ENGINEERING INSURANCE

6. BOILER & PRESSURE PLANT POLICY

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ENGINEERING INSURANCE

6. BOILER & PRESSURE PLANT POLICY

- Provide Insurance Coverage for Boilers & Pressure Vessels
Against damage other than by Fire.

- Also provide cover to

the surrounding Property of Insured
( As specified in the schedule of the Policy ).

- Also provide cover to

The Legal Liability of the Insured for
- Bodily injury ( fatal and / or non fatal ) to a person,
- Damage to the Property of third party
caused by the explosion or collapse of the Boiler during normal
working.

- Sum Insured
the current replacement value.
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ENGINEERING INSURANCE

7. MACHINERY LOSS OF PROFIT ( MLOP ) POLICY

- Provide Insurance Cover for –

Loss of Profit ( Business Interruption ) due to machinery
breakdown.

- It Covers
1. The profit which the insurer has hitherto been making.
2. The standing charges.
3. Additional charges incurred to reduce the degree of
interruption. ( for alternative measures at increased cost ).

The claim is admissible only when it is admitted under the

concurrent material damage policy. ( Machinery, Boiler policy).
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ENGINEERING INSURANCE

8. ADVANCE LOSS OF PROFITS (ALOP) POLICY

- Also known as Delay in Startup Policy (D.S.U.).

- It covers
financial consequences of a project being delayed
because of accidental damage to the project materials.

- Though it follows in principle

the characteristics MLOP Policy,
but is issued in advance of the actual commencement.

- It is a highly specialized type policy.

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ENGINEERING INSURANCE

(ALOP Contd.)
- It indemnifies
the Principal or the Project Owner
for the actual loss sustained
due to delay
in commencement of commercial operations of a new
Project under installation.

- This delay must be caused by

direct physical loss or damage
admissible under
the Material Damage CAR / EAR insurance covering
the contract works.
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ENGINEERING INSURANCE

9. THE DETERIORATION OF STOCK POLICY

- Also known as Stock Spoilage Insurance.

- A form of consequential loss cover

for stocks contained in large cold storage.

- Cover is granted
against the risk of
deterioration/putrefaction and contamination
which follows
the breakdown of the
refrigeration plant and machinery.
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(Det. of Stock Contd.)

- The claim must be admissible first
in the MBD Policy.

- Two different form of policy are issued –

1. In respect of stock of
fish, prawns, frog legs and other sea foods
and
fruits, cheese, provisions and other Dairy products.
2. In respect of
the contents of Potato Cold Storage.
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ENGINEERING INSURANCE

10. Electronic Equipment Policy

- The Policy is divided in 3 Sections -

Section 1. Equipment
The Cover applies for any unforeseen and sudden Physical Loss or
Damage from any Cause (other than those specifically excluded) in a
manner necessitating repair or replacement.

- Some Examples of Exclusions are :

Loss or Damage caused by failure or interruption of any Gas, Water
or electric supply.
Loss or damage due to wear and tear, etc.
A maintenance Contract with the Computer Maker is warranted in the
Policy.
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ENGINEERING INSURANCE

10. Electronic Equipment Policy

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ENGINEERING INSURANCE

10. Electronic Equipment Policy

Section 2. External Data Media

The Coverage applies if the External Data Media, specified in the
Schedule (Type and Quantity) inclusive of information stored,
which can be directly processed in EDP Systems, suffers material
damage by a peril covered under Section 1 of the Policy.

- Sum Insured :
Shall be the amount required for replacing lost or damaged Data
Media by new material and for reproducing lost information.

Special Exclusion related to the Section 2 –

Any Cost arising from false programming, punching or inadvertent
cancelling of Information etc.
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ENGINEERING INSURANCE

10. Electronic Equipment Policy

Section 3. Increased Cost of Working

The Section indemnifies the Insured
for all additional costs incurred
to ensure continued Data Processing
on Substitute Equipment
if such Costs are incurred as
an unavoidable consequences of Loss or Damage
identifiable under Material Damage Section of the Policy.

- The Indemnity Period:

It commences with the putting into use of the substitute equipments
may be up to 12 weeks, 26 weeks, 40 weeks or 52 weeks.
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ENGINEERING INSURANCE

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