Our Engineering policies cover risks relating to machinery, erection, construction, turnkey projects, such as fertilizers, water pipelines, power projects etc. Some of the main policies under this type are:

   Erection All Risk Cover-(EAR)
   Contractor’s All Risk Cover-(CAR)
   Contractor’s Plant and Machinery-(CPM)
   Machinery Breakdown Policy
   Electronic Equipment Policy

Erection All Risk Cover (EAR)

EAR, also known as Storage cum Erection policy (SCE) is concerned with erection of electrical plant and machinery and equipment and structures involving nil or very little engineering work.

This is an all risk cover designed to protect the interests of Contractors and Principals in respect of erection of electrical plant and machinery and equipments.

What is covered

It covers physical loss or damage to the plant and machinery during

• Storage

• Shifting to erection site

• Erection

• Testing & Maintenance period

• Against act of God perils, Social perils, Handling risks, Human Failures and Operational risks.

What is not covered

Some normal exclusions are:

1. Nuclear perils, war perils

2. Normal wear & tear

3. Willful or gross negligence of Insured

4. Loss due to rust, atmospheric conditions

5. Breakage of glass, scratching of surfaces

6. Loss covered by manufacturers guarantee

7. Loss of documents/ drawings/ packing materials

8. Consequential losses

9. Loss discovered at the time of taking inventory

10. Loss due to faulty designs, defective materials
     

Basis of Sum Insured

Sum Insured should represent the cost of completely erected value. Other components are-

• Freight charges, Insurance charges

• Custom duty

• Port handling charges

• Escalation in cost of plant & machinery

• Salaries of foreign technicians

• Wages of skilled and unskilled labor

Contractor’s All Risk Cover - (CAR) 

CAR policy is concerned with contracts involving civil engineering works such as construction of buildings, bridges etc. The policy can be extended to insure the maintenance period in addition to the actual construction period.

There are two kinds of CAR policies, annual policies for contractors handling many small to medium contracts of a similar nature and a single contract policy for specific contracts.

What is covered

All losses, unless specifically excluded, to contract works, Construction Plant & Equipment, Machinery, Third Party Liability as well as cost of clearance of debris.

What is not covered

Some normal exclusions are:

1. Nuclear perils, war perils

2. Normal wear & tear

3. Willful or gross negligence of Insured

4. Loss due to rust, atmospheric conditions

5. Breakage of glass, scratching of surfaces

6. Loss covered by manufacturers guarantee

7. Loss of documents/ drawings/ packing materials

8. Consequential losses

9. Loss discovered at the time of taking inventory

10. Loss due to faulty designs, defective materials

Basis of sum Insured

Sum Insured is required to be equal to the estimated completely erected value of the contract works inclusive of materials, wages, construction cost, freight and customs duty.

Contractor’s Plant and Machinery (CPM) 

This policy insures contractor’s plant and machinery against damage or destruction within the site of construction. Machinery like road rollers, bull dozers, concrete mixers, stone crushers etc. are covered against all unforeseen, sudden damages, while working, or at rest, or while being shifted, or re-erected at the erection site.

What is covered

All unforeseen and sudden losses to the listed Plant and Machinery, including losses on account of Third Party Liability, Surrounding Property, Removal of debris, Inclusion of express freight, holiday wages, overtime pay, air freight charges etc.

What is not covered

• Loss due to electrical or mechanical breakdown and boiler explosion.

• Loss due to road vehicles, water borne vessels

• Damage to replaceable parts, damage due to wear & tear, corrosion, damage while in transit

• Damage while undergoing tests

• War perils, Nuclear perils

Basis of sum Insured-

Sum Insured is the current replacement value of the Plant and Machinery.

Machinery Breakdown Policy

Technology is advancing at a rapid pace and society as a whole is increasingly dependent on the machines to get through the activities of daily life. Organisations big or small make huge investments in machinery and rely on them to deliver the products. Any loss or damage to the machinery hampers quality and production and leads to financial loss and hardships.

AL AHLIA’s Machinery Breakdown policy covers unforeseen and sudden physical damage by any cause to the Insured property, which is mechanical in nature. It insures loss or damage to machinery caused by defects in casting and material, faulty design, bad workmanship, lack of skill, carelessness, short circuit etc.

Electronic Equipment Policy

In today’s world, computers dictate business processes covering the whole gamut of operations. Gadgets are highly sophisticated, versatile and sensitive to vagaries of daily usage. A small accident can result in loss / damage of the equipment leading to huge losses. You can cover such losses through our Electronic Equipment Insurance.

This policy covers damage to electronic equipment, damage to Insured's data and records and costs incurred to retrieve and recover lost data and records.

What is not covered

• Willful misconduct and /or negligence

• War and allied perils

• Nuclear perils

• Loss or damage falling under the terms of maintenance agreement

• Loss or damage due to wear and tear

• Loss or damage to bulbs, valves, tubes etc.

• Consequential losses

• Riots, strike, terrorism and civil commotion