What is Contractor’s All Risk Policy?

During the course of execution of project relating to construction of building and civil engineering works, certain unforeseen accidents could occur resulting in considerable financial loss to the contract works, construction / or the principals arising from damage to the contract works, construction of plant and machinery as well as Third Party Claims. The Contractors All Risks (CAR) Insurance has been designed to protect the interests of the Contractors /Principal against such losses.

Contractor’s All Risk Insurance
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Who needs it?

Although Contractors All Risk policy may be taken by the Principal or by the contractor, but usually, under the terms of the agreement between the contractor and the principal, it is obligatory on the part of the contractor to effect a CAR insurance in their joint names before the commencement of the project.

Why ICICI Lombard?

One of the leading General Insurance Company with following strengths:

1

One point contact for all requirements.

2

Better understanding of risk, effective underwriting of portfolio and better risk management.

3

Dedicated Risk engineers to cater construction sector clients.

4

Financial strength and supreme claims paying capacity.

Why do you need it?

Contractors All Risk is a comprehensive insurance cover to the client for any contingency from the moment the material is unloaded at the site of the project and continues during storage, physical construction/erection and till the test run is over and during maintenance, if covered.

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What is covered by ICICI Lombard Contractor’s All Risk Policy?

Below are the detailed inclusions and exclusions of Contractor’s All Risk Policy

  • War & Allied Perils.
  • Wilful act or wilful negligence of Insured/ his representatives.
  • Excess in respect of each claim as stated in the policy.
  • Normal wear and tear, gradual deterioration, lack of use, obsolescence, rust, etc.
  • Any damages/ penalties on account of the Insured of the terms of delivery/ completion under his contract of construction.
  • Nuclear & Allied Perils.
  • Cessation of work.
  • Losses discovered only at the time of taking an inventory.
  • Loss/ damage due to faulty design, defective material or casting other than faults in erection.
  • Consequential loss/ liability of any kind.
  • Location Risks: Fire, Lighting, Theft, Burglary & Housebreaking.
  • Testing and Commissioning Risks*: Failure of Safety Devices, Leakage of Electricity, Insulation failure, Short circuit, explosion.
  • Act of God: Storm, Tempest, Hurricane, Flood, Inundation, Subsidence, Landslide, Rockslide, earthquake.
  • Handling Risks: Impact from falling objects, Collision, Failure of Cranes or Tackles etc.
  • Risk of Human Element: Carelessness, Negligence, Faults in Erection/Construction, Strike & Riot, Malicious damage, Terrorism.
  • Testing Perils: Maximum value at risk. A specific request to be made to UW.

The insurance cover is subject a few exclusion listed in the policy which are applied internationally and are common to the insurance industry.

Get answers to common questions about Contractor’s All Risk Policy

What is Contractor’s all risk policy?

It’s an All Risk Policy.The Policy indemnifies the Insured in the event of unforeseen and sudden physical loss or physical damage to the Property Insured arising:
  • during the period of Insurance
  • whilst at the Project Site (or in storage)
Contractor’s All Risk Policy is basically for insuring projects which have more than 50% civil works
To insure all types of civil works ranging from small buildings to massive dams/structures are susceptible to damage by fire, water, storm, impact, landslide and the like and exposure to such damage commences right from the first delivery of materials at the contract site and site and continues during the entire period of contract.
  • Principal Or Owner
  • Contractor
  • Sub-contractor
After a fire, flood, burglary, earthquake or other such event, there is obvious destruction, loss or damage to buildings, plant and stock. This physical loss or damage is known as Material Damage.
Risk is evaluated on the basis of nature of work and exposure of natural hazard to the risk location.
You can visit our website sme.icicilombard.com

What is Third Party Liability under Contractor’s all risk?

  • Accidental loss or damage to property belonging to third parties (including consequential financial loss
  • Accidental bodily injury / illness to third parties
Theft is covered under the policy.
You can buy, Contractors Plant & Machinery for the plants and equipment involved in the construction.
Marine Insurance for the transit of construction material
Workmen's Compensation for your workers

Why is this policy required?

To insure all types of civil works ranging from small buildings to massive dams/ structures are susceptible to damage by fire, water, storm, impact, landslide and the like and exposure to such damage commences right from the first delivery of materials at the contract site and site and continues during the entire period of contract.
  • Principal Or Owner
  • Contractor
  • Sub-contractor
  • Detailed RFQ
  • Principal, Contractor, Sub-contractor details
  • Estimated Cost of project- contract cost, Other than Project BOQ material, Taxes etc
  • Projects Start date, End date, and Bar chart
  • Details towards Testing for EAR projects
  • Equipment details like Imported equipment, second-hand details for EAR projects
  • Sum Insured breakup towards different scope of works
  • Risk location details, in case of multiple locations- names of all locations. (Lat-long coordinates & Google maps required for road projects, transmission lines)
  • Complete/Detailed scope of works or contract copy
  • Wet works details and sum insured if involved
The policy has a maximum period of 84 months inclusive of Extended Maintenance Period.
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.
  • Claims experience under the policy as on date of cancellation should be less than 60% of reworked premium.
  • The unexpired period is not less than 3 months or 25% of the policy period, whichever is less.
  • Testing period should not have commenced.
Policy can be taken for a minimum period of 3 months.

How to notify any accident that has caused damage to the contract work?

Damage/Accident can be notified through any one of the below touch points.
  • Web page www.icicilombard.com
  • Homepage / Web claim tracker
  • Call 24 X 7 call centre number 1800 2666
Documentation is not required for claim intimation. You have to submit only the policy number.

UIN No. For Retail: IRDAN115RP0021200708 For Commercial: IRDAN115CP0050201920 Product Code: 5004