Bajaj Allianz Contractors All Risk Insurance: Inclusions
The Contractors' All Risk insurance provided by Bajaj Allianz General Insurance covers the following:
SECTION I - MATERIAL DAMAGE
The Company agrees with the Insured, as per the terms and conditions herein or endorsed, that if, during the insurance period specified in the Schedule, or any extended period, the property (excluding packing materials) described in the Schedule is lost, damaged or destroyed by any cause not specifically excluded, necessitating replacement or repair, the Company will compensate for such loss or damage. The payment is subject to limits specified in the Schedule for each item and an overall limit for the total sum insured.
The Company will also cover the cost of clearing and removing debris resulting from an admissible claim under this Policy, not exceeding the specified amount in the Schedule.
EXCLUSIONS TO SECTION I
The Company is not liable for::
- The initial amount of loss mentioned as Excess in the Schedule for each occurrence.:
- Loss discovered only during inventory.
- Normal wear and tear, deterioration due to atmospheric conditions, lack of use, obsolescence, rust, scratching of surfaces, or breakage of glass.
- Loss or damage due to faulty design.
- Costs for repairing defective material or workmanship, limited to the immediately affected items.
- Costs for correcting errors during construction unless resulting in physical loss or damage.
- Loss or damage to specific items like files, drawings, currency, deeds, packing materials, etc.
- Damages or penalties due to the Insured's non-fulfillment of contract terms or lack of performance, including consequential losses.
- Loss or damage to vehicles, water vessels, or machinery/equipment on floating vessels, craft, barges, or aircraft.
SECTION -I PROVISIONS
- Memo 1: SUM INSURED:
The insured property's sum of insurance, as stated in the schedule, must not fall below its fully erected value, inclusive of freights, custom duty, and erection cost. The insured agrees to adjust the insurance amount based on significant fluctuations in wages or prices, with changes taking effect only after being recorded on the policy by the Company.
- Memo 2: PREMIUM ADJUSTMENT:
The sum insured for contract works is adjustable upon construction completion, based on actual values declared by the insured for freight, handling charges, customs dues, and construction cost. Any change in the prime cost of materials doesn't affect premium adjustment.
- Memo 3: REINSTATEMENT OF SUM INSURED:
In case of loss or damage, the insurance remains in force, and the insured commits to paying a pro-rata additional premium on the claimed amount from the loss date to the policy's expiry.
- Memo 4: BASIS OF LOSS SETTLEMENT:
For damages that can be repaired, settlement is based on the repair cost minus salvage. For total loss, settlement is based on the actual value before the loss minus salvage, up to the extent claimed and included in the Sum Insured. Provisional repairs cost is covered if part of the final repairs, while alterations, additions, and improvements are not recoverable.
- Memo 5: EXTENSION OF COVER:
Extra charges for overtime, holiday work, and express freight (excluding air freight) are not covered unless agreed upon at an additional premium.
- Memo 6: CONSTRUCTION PLANT AND MACHINERY:
Loss or damage to Construction Plant and Machinery excludes damage caused by its own explosion, mechanical breakdown, or derangement.
- Memo 7: SURROUNDING PROPERTY:
Loss or damage to property adjacent to the site is covered only if directly due to the construction of insured items, with a separate sum specified in the schedule.
- Memo 8: MAJOR PERILS/AOG Perils:
Major peril/Acts of God claims include earthquake, landslide, flood, storm, collapse, and water damage for 'wet' risks.
- Memo 9: REINSTATEMENT OF THE INDEMNITY LIMIT:
Reinstatement of the indemnity limit after a claim is allowed for extensions like express freight, overtime, surrounding property, and air freight.
- Memo 10: THIRD PARTY LIABILITY:
Third party liability (TPL) cover is not granted during extended maintenance.
SECTION II - THIRD PARTY LIABILITY
The company will provide indemnity to the insured for:
- Legal liability due to accidental loss or damage to the property of other persons, excluding property used in connection with construction.:
- Legal liability for fatal or non-fatal injury to any persons, excluding the insured's employees, directly resulting from the construction described in the Schedule.
The total liability of the company during the insurance period for this coverage is limited to the indemnity limits specified in the Schedule. The company will also indemnify the insured for costs and expenses of litigation recovered by claimants and those incurred with the written consent of the company.
EXCLUSIONS TO SECTION II
The company will not indemnify the insured for:
- The excess stated in the Schedule for property damage in a single occurrence.
- Expenditure related to activities covered under Section I of this Policy.
- Liability for bodily injury to employees of the contractor, principal, or any other connected firm, or members of their families. It also excludes loss or damage to property under their care, custody, or control, and accidents involving vehicles, vessels, or aircraft.
CONDITIONS APPLYING TO SECTION II
No admission, offer, payment, or indemnity shall be made without the written consent of the company. The company can take over the defence or settlement of any claim, and the insured must provide all necessary information and assistance.
The company may pay the limit of indemnity for any accident/period, deducting any sums already paid, and thereafter has no further liability for that accident under this section.
Bajaj Allianz Contractors All Risk Insurance: FAQs
Ans: Material Damage coverage includes protection against loss, damage, or destruction of the insured property during the construction period. It covers risks such as fire, theft, natural disasters, and other unforeseen events that could disrupt construction projects.
Ans: The sum insured is based on the fully erected value of the property, including additional costs like freights, custom duty, and erection expenses. It's crucial to ensure that this value accurately reflects the potential costs of rebuilding or repairing the property in case of unexpected events.
Ans: Third-Party Liability coverage protects contractors against legal liabilities for accidental damage to third-party property or injuries to individuals not associated with the construction project. It is essential for mitigating financial risks associated with legal claims.
Ans: Yes, common exclusions include initial loss amounts (Excess), wear and tear, damage due to faulty design and costs related to repairing defective materials or workmanship. It's crucial to understand these exclusions for a clear understanding of coverage limitations.
Ans: In case of a claim, the company may pay the limit of indemnity for any accident/period, deducting any sums already paid. After such payment, the company has no further liability for that specific accident under Third-Party Liability coverage.
Ans: Yes, coverage for extra charges like overtime, work on holidays, and express freight (excluding air freight) can be included in the policy, provided they are agreed upon at an additional premium. This allows contractors to tailor coverage based on project-specific requirements.