Contractors All Risk Insurance

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What is Insurance What is Contractor’s All Risk Insurance?

Contractor’s All Risk Insurance Policy provides comprehensive and optimum financial compensation against damage or loss with respect to construction plant, machinery, and equipment, contract work, third-party liabilities, etc.

This policy is not only suitable for contractors but also architects, construction engineers, and investors as it contributes to reducing the average cost of construction. This is because, in case of any mishaps, the insured will get financial compensation and the work will resume within a short period. This policy also takes into account that adequate financial coverage is offered to cover all the parties involved in the project.

Insurance Quotes In India How to get a Contractors All Risk Policy Quote on Mediclaim.net?

  • The process of getting a Contractor’s All Risk Policy insurance quote on mediclaim.net is very easy and quick.
  • You first find our web aggregator and fill out all the basic details such as the name of your company, your email id, your contact person, the city or location of the company, and your mobile number.
  • Then you go ahead and fill out the specific details and the kind of policy that you want. You can also select all the specific requirements you want in your policy.
  • After this, you will get the lowest quote and the best-suited policy for yourself. You can also compare the quotes, coverage’s, and terms of other companies to choose the best Contractors All Risk Insurance policy for you.

What is the need for Contractors All Risk Insurance in India? 

Contractors All Risks (CAR) Insurance India

It is very necessary to get a Contractors All Risk Insurance Policy in today’s world.

This insurance policy is specifically designed for civil contractors who construct buildings and structures such as offices, hospitals, tunnels, channels, dams, bridges, roads, airports, etc. All of these projects take place on a big scale and are prone to massive destruction and damages in case of any small mistake. Any accidental damage to third parties during the project, damage to the project as well as damage to the contractor’s assets like plant and machinery are covered under this policy. Given below are some of the benefits of this policy:

  • Most of the policies under a Contractors All Risk Insurance cover civil engineering projects where the civil work is more than 50% of the total contract value.
  • The plan starts during the storage, carries on throughout the construction and covers apply till the time the project is completed and handed over to the concerned party.

benefits of insurance India Benefits of Contractors All Risk Insurance

The common benefits that are offered by most insurance companies for a Contractors All Risk Insurance policy are:

  • Material Damage

Loss, damage, or destruction of the property and assets suffered due to any reasons except those excluded from the policy, will be covered under Contractors All Risk Policy. Most policies pay out the compensation in the same way i.e. the losses and damages will be paid for up to a certain amount that does not exceed the sum insured specified for each category and the total and does not exceed the total sum insured as well.

  • Third-party liability:

The following third-party liabilities will be covered under Contractors All Risk Policy:

  • Legal liability that arises due to the accidental damage or loss caused to the property of a third party.
  • Legal liability that arises due to fatal or nonfatal injuries to a third person due to the construction project on a property. It is to be noted that the contractor’s workmen and employees are not included in this benefit.

Key Features of Insurance India Features of Contractor’s All Risk Insurance Policy

  • The process of getting this policy is digital, simple, and quick by getting a Contractor all risk policy online using a web aggregator.
  • It offers a comprehensive cover value for all the perils of a civil construction project where the value of civil works is more than 50% of the value of the total contract.
  • The cover applies during the storage of assets, construction work, erection of the building/structure, and up till the completion and handing over of the project to the principal.

Inclusions Insurance Policy India Inclusions under Contractor’s All Risk Insurance Policy

As mentioned in the benefits, a Contractor’s All Risk Insurance Policy covers material damage as well as property damage and bodily injuries to third parties which may or may not result in the death of the third person.

The risks that are covered under Contractor’s All Risk Insurance are:

  • Fire and allied risks.
  • Earthquakes, explosions, and shocks.
  • Flood, tempest, cyclones, and storms.
  • Collapse
  • Faults in construction or erection of a structure.
  • Water damage in case of wet risks.
  • Human errors, negligence, and mistakes.

Add-on Covers Insurance Policy Add-on Covers

The following additional coverages can be added to the policy by paying an additional premium:

  • Damage incurred to the surrounding property of the contractor’s work.
  • Construction equipment like scaffolding and shuttering material.
  • Maintenance visits and maintenance cover.
  • Repairing the original defects or faults incurred during the process of construction.
  • Accidental damage or loss incurred while carrying out rectifications within the maintenance period.

Exclusions Insurance Policy India Exclusions under Contractor’s All Risk Insurance Policy

  • War and warlike situations.
  • Nuclear reaction or nuclear radiation or any other nuclear perils.
  • Total or partial termination of work.
  • The willful act of damage by the insured or any of his representatives/workmen.
  • Gross/willful negligence or intentional misuse of machinery or equipment.
  • Defective materials.
  • Bad workmanship.
  • Normal maintenance charges.
  • Normal wear and tear.
  • Loss or damage due to faulty design of the construction.
  • Manufacturing defects.
  • Disappearance or shortage of inventory.
  • Consequential losses.
  • Workmen or employees of the insured are not entitled to third-party benefits.
  • Any other exclusions that are specifically stated in the policy documents.

Need Insurance Policy Who Needs a Contractor’s All Risk Insurance Policy?

This policy can be taken by anyone who is involved in the construction business or the construction of a particular project, such as:

  • Owner or purchaser of the property.
  • Companies, banks, or financial institutions funding the project.
  • Subcontractors and firms commissioned to carry out the construction work.

All of the above-mentioned participants can be included in a single insurance policy for the whole project from start to finish to avoid any gaps in the cover.