Construction and Engineering Insurance

Construction and engineering insurance policy offers complete coverage for construction and engineering projects. Development and growth have led to construction happening at a large scale and the involvement of a lot of investment which poses certain risks. To protect against such risks and to overcome any monetary loss associated with any damage to these constructions, one can opt for this policy.
There are two types of insurance coverage available in construction projects.
One is the named risks coverage which entails coverage against any unforeseen damage or calamities which may be caused by storms, floods, earthquakes, terrorist activities, or even strikes.
The second coverage plan is the all risks plan which comprises of damages happening due to accidental, natural, or man-made error.

Contractor's All Risk Policy

This policy is specially designed to give financial protection to the Civil Engineering Contractors in the event of an accident to the civil engineering works under construction.
Highlights
This policy is specially designed to give financial protection to the Civil Engineering Contractors in the event of an accident to the civil engineering projects under construction. In case the policy period exceeds 12 months, the premium can be paid in quarterly instalments with the first instalment being more by 5% and the last instalment being paid 6 months before the expiry of the policy.
Scope
The policy comprises of 2 Sections:

This section covers physical loss, damage or destruction of the property insured by any cause, other than those specifically excluded in the policy.

It also covers the legal liability falling on the insured contractor as a result of bodily injury or property damage belonging to a third party.

Main Exclusions – For which no claim is payable, are loss or damage due to:

  • Faulty design rectification of aesthetic defects of structure not relating to any physical loss or damage to the structure due to any accident, or of material defector of workmanship defect
  • The exclusion of defective material/workmanship is limited to the parts of the structure immediately affected and does not apply to any consequential loss to correctly executed items, arising out of the accident due to defective material or workmanship
  • Loss or damage due to gradual deterioration, atmospheric condition, rusting, etc.
  • Loss discovered only at the time of taking inventory
  • Loss arising out of penalty for the delay, and/or non-fulfilment of terms of the contract

The policy can be extended to cover the following items:

  • Construction equipment like scaffolding, shuttering materials
  • Damage to surrounding property that does not form a part of the contract work
  • Maintenance visit / extended maintenance cover to cover accidental loss or damage whilst carrying out any rectification during the maintenance period and/or any amount incurred for rectification of such original defects or faults during construction
The policy can be taken by the principal, contractor or sub-contractor, either jointly or separately.
The sum insured selected under section I should represent the total contract value including the estimated cost of labour charges and cost of materials but excluding profit. The cost of materials supplied by the principal is to be declared separately. In the case of long-term contracts, there is bound to be an escalation in prices. The basic policy will pay only as per the original cost and prices. However,the escalation clause can be opted for, under which escalation upto 50%, can be selected to take care of such an increase in prices. The sum insured under section II should represent the per accident limit (the maximum legal liability that may fall on the insured as a result of an accident in the insured’s site). The limit per policy period should be fixed taking into account the maximum number of such accidents that one can reasonably expect that will occur.
Unlike other policies where the period of insurance is one year, in this policy the period of insurance should be equivalent to the period of the contract, commencing from the date of unloading of the first batch of material at the construction site and expiring on the date of handing over of the contract work to the principal. Although it is possible to extend the policy period in case of delay in completion of the contract, it is always advisable to choose a slightly longer period of insurance initially, to avoid paying the higher extension premium.

In case of filing a claim, please connect with us at insurance@suraksha.seahwk.com and provide all required documents so that a Competent Surveyor may be deputed immediately.

Erection All Risk Policy

The Erection All Risk Policy is a comprehensive policy that provides coverage for all physical risks which a project is exposed to.
Highlights

This is a comprehensive policy covering all physical risks which a project is exposed to right from the warehouse of the supplier of equipment – whether imported or indigenous – to its erection, testing, and commissioning at the site. In case the supplier has arranged transit insurance up to the site, a storage cum erection policy can be issued limiting coverage to risks that the project is exposed to at the site only. In case the policy period exceeds 12 months, the premium can be paid in quarterly instalments with the first instalment being more by 5% and the last instalment being paid 6 months before the expiry of the policy. For project value exceeding Rs. 1500 crores , specially designed policies are available.

Scope
The policy comprises of 2 Sections:
The section covers the physical loss, damage, or destruction of the property insured by any cause, other than those specifically excluded in the policy.

The section covers the legal liability falling on the insured contractor as a result of bodily injury or property damage belonging to a third party.

The policy covers all risk of physical loss or damage of insured property other than those specifically excluded, including:

  • Marine voyage for imports
  • Offloading/storage at the port
  • Inland transit to site contractor as a result of bodily injury or property damage belonging to a third party.
  • Storage, handling, erection at site
  • Testing and commissioning at site
The main exclusions:
  • Loss or damage due to faulty design, defective material or casting, bad workmanship other than faults in erection. This exclusion is limited to the items immediately affected and does not apply to any consequential loss to correctly executed items.
  • The cost necessary for rectification or correction of any error during erection unless resulting in physical loss or damage.
  • Loss or damage occurred due to gradual deterioration, atmospheric condition, rusting, etc.
  • Loss discovered only at the time of taking inventory.
  • Loss arising out of the penalty for delay, non-fulfilment of terms of the contract.
  • Loss or damage due to faulty design, defective material or casting, bad workmanship other than faults in the erection. This exclusion is limited to the items immediately affected and does not apply to any consequential loss to correctly executed items.

The policy can be extended to cover the following on payment of additional premium.

  • Clearance and removal of debris
  • Maintenance visit / extended maintenance cover
  • Additional customs duty
  • Civil works
  • Express freight affected and does not apply to any consequential loss to correctly executed items.
  • Airfreight
  • Deletion of duration clause under marine
The policy can be taken by the principal, contractor or sub-contractor, either jointly or separately.

The sum insured selected under section I should not be less than the completely erected value of the property inclusive of estimated freights, customs duty, erection cost, etc. In the case of long-term contracts, there is bound to be an escalation in prices i.e.prime cost. The basic policy will pay only as per the original cost and prices. However, the escalation clause can be opted for, under which escalation up to 50%, can be selected to take care of such an increase in prices during the policy period. The sum insured shall be adjustable on completion of the erection, on the basis of actual values incurred by the insured in respect of freights, handling charges, customs dues, cost of erection, etc. and premium adjusted accordingly.

The sum insured under section II should represent the per accident limit (the maximum legal liability that may fall on the insured as a result of an accident in the insurer’s site). The limit per policy period should be fixed taking into account the maximum number of such accidents which can reasonably be expected to occur.

The period of insurance should not be less than the period of the contract and should commence from the date of unloading of the first consignment at the site of the erection and shall continue upto the conclusion of the first test operation or test loading subject to a maximum of 4 weeks from the date trial running is made and/or readiness for work is declared by the erectors. If a part of the plant or one or several machines istested and put into the operation, the coverage under the policy for that particular part of the plant or machine will cease, whereas the coverage will continue for the remaining parts which are not yet ready. In case approval of the plant or any part thereof is not given by the concerned authorities, even after the expiry of 4weeks of a test run, the policy can be extended and the extra premium would be required to be arranged beforehand.

In order to file a claim, please connect with us at insurance@suraksha.seahwk.com  and provide all the required documents so that a Competent Surveyor may be deputed immediately.

Machinery Breakdown Policy

This policy covers financial loss incurred by the insured owing to the loss or damage to machinery due to accidental electrical and mechanical breakdown.
Highlights
This is a policy that covers financial loss incurred by the insured due to loss or damage to machinery as a result of sudden accidental electrical and mechanical breakdown. It reimburses the insured for the cost of repairs or replacement of machinery of like nature.
This insurance can be taken by the individual owner of the machine or a person or company having a financial interest in the machine.
All types of industrial machinery like compressors, pumps, turbines, etc. along with electrical machines like transformers, electrical motor, generator, etc. can be covered under this policy.
It is a requirement of this policy that the sum insured or value for which the particular machine is insured should represent the present-day purchase value of a similar new machine including all incidental expenses like custom duties, taxes, excise, freight, insurance charges, handling charges, etc. In case the sum insured under the policy is less than as per the above requirement the claim will be paid only in such proportion as the sum insured bears to the current replacement cost of similar new machinery.
Scope
The policy covers all kinds of electrical and mechanical breakdown resulting from the following incidents:
  • Faulty material/workmanship of the machine
  • Action of centrifugal forces contributing to the disruption of the rotating parts
  • Failure of lubrication due to malfunctioning of lubricating oil pumps or its breakdown
  • Malfunctioning or failure of safety devices
  • Electrical short-circuiting including electrical fire originating from failure of insulation and or over voltage or under voltage conditions
  • Abrupt and sudden stoppage of other connected machinery
  • Entry of foreign bodies into operational machines
  • Inexperienced operations causing damage due to error of judgment or error in operation
Add on covers
The policy can be extended to include the following risks upon payment of additional premium.
  • Damage to the foundation of machinery
  • Damage to oil in electrical apparatus
  • Express freight (excluding air freight), holiday rates, overtime charges
  • Air freight
  • Additional custom duty i.e. the additional percentage of duty payable at the time of reimport for replacement over and above the percentage of duty included in the original sum insured
  • Own surrounding property i.e. damage to the insured’s own existing property or property in his custody or control (not included in the sum insured of the policy) due to any damage to the insured machines which is covered under the policy
  • Thirdparty liability i.e. liability falling on the insured for bodily injury to any other party other than those covered by the policy or for property damage belonging to such other party
How to claim?

In order to file a claim, please connect with us at insurance@suraksha.seahwk.com and provide all required documents so that a Competent Surveyor may be deputed immediately.

Electronic Equipment All Risk Policy

This is a specially designed policy which covers accidental loss or damage to electronic equipment.
Highlights
The policy covers the following types of equipment:
  • Electronic data processing machine
  • Telecommunication equipment
  • Transmitting and receiving installations (includes Radio, TV, Cinema Sound Reproduction and Studio Equipment)
  • Material testing and research equipment
  • Electro-Medical Installations
  • Signal and Transmitting units
  • Office calculators, duplicating machines, and Reproduction machines
  • Control and supervisory units

Note: The above items should not be portable and mobile

Who can take this policy?
This policy can be taken by the owner, lessor or hirer of electronic equipment
Scope

The policy covers sudden and unforeseen physical damage that can occur including breakdown to the electronic equipment covered under the policy due to any reason which is otherwise not specifically excluded.

Thus, it covers damage caused by the following perils:
  • Smoke, soot, dust, corrosive gases etc
  • Water and Humidity
  • Short circuit and Electrical fire risk
  • Faulty operations, lack of skill
  • Falling object and entry of foreign bodies
  • Fire, lightning, explosion
  • Riot and strike and malicious damage and terrorism
  • Theft and burglary
  • Natural calamities – flood, inundation, storm, cyclone and earthquake
  • Subsidence, landslide, rockslide
Exclusions
Loss of damage caused by the following perils is specifically excluded from the scope of the policy.
  • Normal wear and tear and corrosion of parts arising from the use and continuous operation (limited to parts immediately affected, subsequent damage to other parts of the unit covered)
  • War, wilful acts, and gross negligence
  • Faults for which a third party is responsible by law or contract
  • Failure due to interruption of gas, water or power supply
  • Aesthetic defects
  • Consequential loss of any kind
  • Loss to consumables and operating media etc
What is the sum insured or value for which policy is to be taken?
The sum insured or value of the policy should be equivalent to the present-day purchase price of similar new electronic equipment including all incidental expenses like the cost of installation, duty, freight, taxes, etc. If the sum insured is less than required as stated above, then the claim will only be paid in such proportion as the sum insured bears to the amount required to be insured.
Add on covers

The building should be insured on a market value basis i.e.depreciated value basis.The contents should be insured on a cost price basis. The sum insured for contents under Section I&II should be identical. The sum insured under Sections III,V,VI,VII,IX,X&XI is limited to the specified percentage of the sum insured for contents.

The policy can be extended to include the following risks on payment of additional premium.
  • Damage to external data media for example punch cards, tapes, discs etc. as also the cost of reconstruction of data on this external media caused by a peril covered under the policy
  • The additional expenditure incurred due to the use of a substitute computer system as a result of accidental damage to the computer insured under the policy and which is covered by the policy
How to claim?

In order to file a claim, please connect with us at insurance@suraksha.seahwk.com and provide all the required documents so that a Competent Surveyor may be deputed immediately.

Contractor Plant and Machinery

This policy covers all different types of machinery used for handing material or construction.
Highlights
This policy covers all different types of machinery used for handing material or construction projects.
Scope
The policy covers sudden, accidental, and external damage to the insured machinery due to any cause other than those specifically excluded. The policy covers the machinery whilst they are in operation or at rest or whilst being dismantled for the purpose of cleaning or overhauling or whilst being shifted within the premises or during subsequent re-erection, but in any case, only after successful commissioning.
  • Loss or damage due to any internal electrical or mechanical breakdown, defective lubrication, lack of oil or coolant although any consequent external damage is payable
  • Loss or damage to replaceable parts or attachments such as bits, drills, knives, dies, molds, etc
  • Loss or damage while the machinery is in transit from one location to another
  • Loss due to wear and tear, corrosion, rust, deterioration, atmospheric conditions
  • Loss or damage during testing operating or whilst being used for a purpose other than designed for
  • Loss or damage to machinery working underground
  • Loss or damage for which the supplier or manufacturer is responsible either by law or under contract

The policy can be extended to cover the following:

  • Third party liability which might include personal injury and property damage
  • Damage to the owner’s surrounding property

The policy can be taken by one of the following parties, either individually or jointly:

  • The owner of the machine
  • The contractor / user of the construction machinery
  • The financial institutes who have an interest in the construction machinery
The sum insured of each item of machinery should represent the current purchase cost of a similar new machine including all incidental expenses like freight, duty, taxes, cost of machinery etc.

In orderto file a claim, please connect with us at insurance@suraksha.seahwk.com and provide all the required documents so that a Competent Surveyor may be deputed immediately.

Portable Equipment All Risk Policy

This policy helps farmers/Land Owners to identify and mitigate the risks associated with Portable Equipment.
Scope
Covers the Loss or damage due to:
Fire
Riot or Strike
Theft
Accident
From any fortuitous cause
Theft
Major Exclusions
The policy shall not provide coverage for:
  • Damage caused by any process of cleaning, dyeing or bleaching, restoring, repairing or renovating or deterioration that may arise from wear and tear, moth, vermin, insects or mildew or any other such cause
  • Breakage, Cracking or Scratching of Crockery, Glass, Cameras, Binoculars, Lenses, Sculptures, Curios, Pictures, Musical Instruments, Sports Gear, and similar articles of brittle or fragile nature, unless caused by fire or accident to the means of conveyance.
  • Loss or damage caused by mechanical or electrical derangement/breakdown of any article unless caused by accidental external means.
  • Over-winding, denting or internal damage of watches and clocks.
  • Loss or damage to Money, Securities, Manuscripts, Deeds, Bonds, Bills of Exchange, Promissory Notes, Stocks or Share Certificates, Stamps and Travel Tickers or Travellers Cheques, Business books or documents.
  • Theft from any car except car of fully enclosed (saloon type) that has all the doors, windows and other openings securely locked and properly fastened.
  • Loss or damage whether direct or indirect arising from War, War-like operations, Act of Foreign Enemy, Hostilities (whether war be declared or not) Civil War, Rebellion, Insurrection, Civil Commotion, Military or Usurped Power, Seizure, Capture, Confiscation, Arrests, Restraint and Detainment by the order of any Government or any other authority.
  • Any loss or damage arising through delay, detention or confiscation by Customs or other authorities.
  • Any loss, destruction or damage to any property whatsoever or any loss or expense whatsoever, resulting from or arising therefrom or any consequential loss and any legal liability of whatsoever nature, directly or indirectly caused by or contributed by or arising from Ionising, radiation or contamination by radioactivity from any source whatsoever.
  • Any loss, destruction, damage or Legal Liability directly or indirectly caused by or contributed by or arising from Nuclear Weapons material.
  • Consequential losses or legal liability of any kind.
  • Loss or damage due to or contributed to by the Insured having caused or suffered anything to be done whereby the risks hereby insured against were unnecessarily increased.
  • Loss or damage due to or contributed to by Terrorism and Sabotage activities.
How to claim?

To file a claim, please connect with us at insurance@suraksha.seahwk.com and provide all the required documents so that a Competent Surveyor may be deputed immediately.

CIN- U67190WB2003PTC095855, IRDA LICENSE NO - 177