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    Erection All Risk - Mce Insurance

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    Vaibhav Prajapati
    This document provides information about an Erection All Risk (EAR) insurance policy. It summarizes the various stages of coverage including storage, shifting, erection, and testing. Key details include what types of damages are covered at each stage, who can be insured, sections of the policy (material damage and third party liability), sums insured, period of insurance, and important exclusions. The policy aims to provide coverage for physical loss or damage that may occur to machinery and equipment from the time of delivery until completion of erection, testing and commissioning at a construction site.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Erection All Risk - Mce Insurance

    Uploaded by

    Vaibhav Prajapati
    91 views15 pages
    This document provides information about an Erection All Risk (EAR) insurance policy. It summarizes the various stages of coverage including storage, shifting, erection, and testing. Key details include what types of damages are covered at each stage, who can be insured, sections of the policy (material damage and third party liability), sums insured, period of insurance, and important exclusions. The policy aims to provide coverage for physical loss or damage that may occur to machinery and equipment from the time of delivery until completion of erection, testing and commissioning at a construction site.

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    EAR PPT

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    This document provides information about an Erection All Risk (EAR) insurance policy. It summarizes the various stages of coverage including storage, shifting, erection, and testing. Key details include what types of damages are covered at each stage, who can be insured, sections of the policy (material damage and third party liability), sums insured, period of insurance, and important exclusions. The policy aims to provide coverage for physical loss or damage that may occur to machinery and equipment from the time of delivery until completion of erection, testing and commissioning at a construction site.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    91 views15 pages

    Erection All Risk - Mce Insurance

    Uploaded by

    Vaibhav Prajapati
    This document provides information about an Erection All Risk (EAR) insurance policy. It summarizes the various stages of coverage including storage, shifting, erection, and testing. Key details include what types of damages are covered at each stage, who can be insured, sections of the policy (material damage and third party liability), sums insured, period of insurance, and important exclusions. The policy aims to provide coverage for physical loss or damage that may occur to machinery and equipment from the time of delivery until completion of erection, testing and commissioning at a construction site.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 15

    ERECTION ALL RISK –MCE INSURANCE

    By Beacon Insurance Brokers Pvt. Ltd.


    Coverage - under Erection All Risk
    policy.

    Storage Risk
    Cover will commence once the machines are
    unloaded at the site. While the machines
    are stored at site, if there is any damage
    due to Fire, Storm, Cyclone, Flood and
    Inundation we can get the claim for
    repairs/ replacements. Storage of machines
    may be in open or in closed space. Theft of
    parts from the machines will also be
    admissible.
    Coverage
    Shifting
    When machines are to be shifted for purpose of
    erection, these will be required to be shifted from
    storage site to erection site. When they are lifted
    with the help of chain pulley block or crane, chain
    or boom may give way causing impact damage to
    machines.
    If carried by Fork Lifts, operator may damage the
    machines due to his error/omissions or Fork Lift it
    self may suffer accident, resulting in damage to
    itself and Machines which are carried by it.
    Coverage
    During Erection

    When Machines are placed on foundations,


    they may topple over. There can be fire due
    to welding spark or gas cutting and
    Machines can be total loss. During assembly
    of components, there can be misalignment
    causing damage to machine, moment it is
    rotated. All these damages are covered under
    storage cum erection policy.
    Coverage
    During Testing

    50% of damages are occurring during testing due to


    reasons like short circuiting, unbalance,
    misalignment, over speeding, entry of foreign
    bodies, operator’s errors, falling objects on
    machines etc.
     
    We have narrated some of the likely damages
    envisaged at an erection site.
     
    Who can be insured under
    EAR or MCE
    The policy can be taken by the
    principal, contractor or sub
    contractor, jointly or
    separately.
    The policy comprises of 2
    Sections
     Section I-Material Damage-covering physical
    loss, damage or destruction of the property
    insured by any cause, other than those
    specifically excluded in the policy.

     Section II-Third Party Liability-covering the


    legal liability falling on the insured
    contractor as a result of bodily injury or
    property damage belonging to a third party.
    Sum Insured
     Section I – Material Damage
    A. landed cost of imported machinery as at Factory Site -
    i.e. @ Exchange rate
    B. machinery fabricated or manufactured in India
    C.Cost of Foundation relating to (a) & (b) above
    D. Cost of Erection, including salaries of all Foreign and Indian
    Technicians and wages of all skilled and unskilled labor employed
    at Factory Site during erection
    E. On Civil Works
    F.Free material issued by principal
    Sum Insured
    Section II – Third Party Liability
     The sum insured under section II should
    represent the per accident limit (the
    maximum legal liability that may fall on the
    insured as a result of an accident in the
    insured's site). The limit per policy period
    should be fixed taking into account the
    maximum number of such accidents which
    can reasonably be expected to occur –
    Period of Insurance
     Period of insurance should be equivalent
    to the period of contract, commencing
    from the date of unloading of the first
    batch of material at the site of erection
    and expiring on the date of handing over
    of the contract work to the principal.
     In case of delay in completion of work,
    policy can be extended by paying
    additional premium depends upon
    extension period.
    Important Exclusions under
    Section I
     Excess – First amt. of each & every loss to be born by
    insured.
     Faulty design
     The exclusion of defective material / workmanship is
    limited to the parts of the structure immediately
    affected and does not apply to any consequential loss
    to correctly executed items, arising out of the
    accident due to defective material or workmanship.
     loss discovered only at the time of taking inventory.
     loss arising out of penalty for delay, non-fulfillment of
    terms of contract.
     Consequential loss
    Coverage under Marine Cum
    Erection Policy
     Normally erection insurance cover starts
    after the Marine/Transit insurance cover
    ends. In India it has become the normal
    practice to issue composite insurance
    policy to cover marine/ Inland Transit
    risk and erection risk all under one
    policy.
    Coverage under Marine Cum
    Erection Policy
     Cover under a standard EAR policy commences with
    the delivery of the first consignment of plant and
    machinery at the site of erection. This would mean a
    separate Marine Transit policy for imported
    equipment and inland transit policy for indigenous
    equipment, both up to the project site.
     Under a composite Marine cum Erection policy cover
    starts from the moment the equipment leave the
    manufacturers warehouse within the country or
    overseas and continues during the voyage to the
    port of entry, inland transit to the site of erection
    including incidental storage and thereafter during
    erection, testing and commissioning.
    Other related things to be keep in mind while
    sending enquiry for quote

     Once you receive a contract, insurance clause and handing over


    protocol to be furnished to us.
     Erection insurance must be availed before commencement of any
    work or before reaching any consignment to the project site.
     Major Equipments
     Distance of nearest water body from the site to be provided.
     Nature of storage whether in open or in closed to be provided.
     Any fire fighting facility at site.
     Elevation of Erection Site above normal river or sea level
     Probable date of first shipment or dispatch.
     Expected date of first arrival at site.
     Expected date of last arrival at site
     Probable date of commencement of erection of Plant & machinery
     Duration of Testing Period
    Thank You

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