1. Contractor’s All Risk Insurance (CAR)
It gives coverage for both damage of property and third party liability insurance from the time of collecting construction material to the construction site to the time of handover after the contract works. The design fault is not allowed to claim. The sum insured is contract value. The value of machines and equipments at the site can also be added to sum insured. The period of insurance is minimum 3 months and maximum 5 years. The premium rate ranges from 0.15% to 0.518%.
2. Erection All Risk Insurance (EAR)
The EAR covers starts form the time of the arrival of construction materials to the site to the time of testing and commissioning after the installation and erection. The design fault is not allowed to claim. The testing period is allowed to 2 weeks. The period of insurance is minimum 3 months and maximum 5 years. The premium rate ranges from 0.15% to 0.518%.
3. Machinery Insurance
Machinery and equipment’s break down, non standardization, design fault, damages due to the unskillful workers, malicious damage, and electrical breakdown, natural disasters are covered. The premium rate ranges from 0.3 % to 0.4%.
CPM insurance covers all physical damage to a contractor’s machinery and plant-like, forklift trucks, compressors, bulldozers, drilling machines, etc which are used at the project site. It covers unforeseen and sudden physical loss of and damage to the insured items. The insurance period can be a range of minimum three months to maximum five years and the premium rate is from at least 0.15% to at most 0.518%.
