Remarkable progress is being achieved in the field of industrialization in India. There is an on-going process to build the necessary infrastructure for speedy socio-economic development. The infrastructure comprises projects ranging from Airports to bridges, from dams/tunnels to Off-shore structures, from refineries to reservoirs, from pipelines to power stations, from factories to hospitals etc., Hence the need for insurance at the constructional phase.
Contractor's All Risks (CAR) Insurance is the construction phase policy and issued for the period of project or 'One time' policy. This is specially designed policy to protect the interest of contractors and principals in respect of civil engineering projects like construction of buildings, bridges, factories, power stations etc.,
The C.A.R. policy provides an "All Risk" cover. Every risk is covered which is not specifically excluded. This means that almost any sudden and unforeseen loss or damage occurring during the period of insurance to the property insured on the construction site is indemnified.
The more important causes of losses indemnifiable under C.A.R. insurance is:
Maintenance Visits Cover:
During the said period this insurance shall cover solely loss of or damage to the contract works caused by the insured contractors (s) in the course of the operations carried out for the purpose of complying with the obligations under the maintenance provisions of the contract.
Extended Maintenance Cover:
During the maintenance period this insurance shall cover loss or damage to the contract works:
No Liability under the policy in respect of;
THIRD PARTY LIABILITY:
This cover is at the option of the insured, indemnity applies to legal liability of the insured to pay compensation for accidental loss of or damage to property of other persons and/or fatal or non-fatal injury to any person, subject to the limit of indemnity specified in the schedule.
In addition, indemnity applies to legal costs recovered by a claimant and also costs incurred by the insured with the written consent of insurers.
No indemnity is applicable in respect of loss, damage or liability arising out of