HDFC Ergo Engineering & Industrial policies


2017-12-14 16:00:00 UTC


hdfc ergo engineering and industral policies

HDFC Ergo engineering and miscellaneous policies


This post deals with the various Engineering & Industrial policies of HDFC Ergo. Fire Insurance & Special Perils Insurance policies are discussed in another post, here.

Contractors Plant & Machinery Insurance Policy


The most crucial part of any construction site, apart from the workers, is tools & equipment. From hauling and moving materials to excavating earth and debris, generation of power round the clock – it’s all done by machinery. But what happens when the heavy machinery breaks down?

Contractor’s Plant and Machinery Insurance is the hassle-free way to protect your investment and minimise repair costs. HDFC Ergo’s product is detailed below:

Benefits
  • The policy broadly covers loss or damage to the contractor’s construction module equipment such as bulldozers, cranes, excavators, compressors, etc., due to an accident arising out of external perils.
  • The cover is operative while the insured property is at work or at rest, or being dismantled for the purpose of cleaning or overhauling, or during subsequent re-erection.
Add-ons
  • Express freight (excluding air freight), overtime and holiday rates of wages
  • Air freight
  • Owner’s surrounding property
  • Clearance and removal of debris
  • Additional customs duty
  • Escalation
  • Third party Liability
  • Earthquake
  • Act of terrorism

The Sum Insured shall be equal to the cost of replacement of the insured property by new property of the same kind and same capacity, which shall mean its replacement cost, including freight, dues and customs duties, if any, and erection costs.

Exclusions

The policy does not cover loss or damage due to:

  • Electrical or mechanical breakdown
  • Pre-existing defects
  • Defective lubrication or lack of oil or coolant
  • Any sort of damage for which the manufacturer or supplier is responsible
  • Any consequential loss
  • Loss or damage to vehicles used for general road use, unless working on the specified construction site

Contractors All Risk Insurance Policy


A construction site is susceptible to all sorts of Accidents. Losses can mount from pilferage, theft, damage, legal claims and more. Contractors are always under immense pressure to ensure completion within the deadlines. To this end HDFC ERGO has the Contractor’s All Risk Insurance policy that covers the risks during construction, comprehensively. It includes physical loss or damage to property, plant, machinery and tools, works brought on to the site and temporary works erected on-site, as well as third party Liability related to work conducted on the site.

Benefits
  • The policy is designed to cover civil engineering projects such as buildings, roads, airports, flyovers, water tanks, sewage treatment plants, etc.
  • Unless specifically excluded, this “all risk” insurance covers accidental physical loss or damage to contract works during the execution of a civil engineering project. Coverage begins from the commencement of work or after unloading of the first consignment at the project site, whichever is earlier, and terminates on handing over of the works to the principal or on expiry of the policy, whichever is earlier.
  • Coverage can be extended to include the interest of suppliers / manufacturers, contractors and Subcontractors.
Add-ons and extensions
  • Earthquake
  • Act of terrorism
  • Escalation
  • Limited maintenance cover
  • Extended maintenance cover
  • Clearance and removal of debris
  • Damage to owner’s surrounding property
  • Third party Liability
  • Cross Liability
  • Express freight, holiday and overtime rates of wages
  • Contractor’s plant and machinery
  • Inland Transit
  • Innocent Non Disclosure/Breach of Policy Conditions
  • Serial losses
  • Vibration, removal or weakening of support
  • Loss or damage due to strike, riot and civil commotion (SRCC)
  • Drilling work for water wells
  • Suspension of Testing
  • Fire Fighting
  • Automatic Increase Clause
  • Test Run Definition for Gas Turbine
  • Test Run Definition for Steam Turbine
  • Declaration Clause
  • Marine off Shore works
  • Coffer Dams

Sum insured depends on the type of project, duration of the project, and the voluntary excess opted for by the Insured. The premium can be paid in instalments, when the policy period is more than 12 months. Default policies are annual.

Exclusions:

The policy does not cover:

  • Loss or damage due to wilful misconduct
  • Cessation of work, whether total or partial, and delay
  • Damage due to faulty design
  • Rectification of defective material and/or workmanship, inventory losses, etc.
  • Deductible as stipulated in the tariff

Erection All Risk Insurance Policy


All projects involving storage of equipment, moving or expanding a facility, or dismantling and re-constructing it, leave your organisation open to significant risk.

HDFC ERGO’s Erection All Risk Insurance assures protection to you against this kind of scenario. The comprehensive nature of its coverage makes it the ideal solution for diverse needs, whatever the risk you want to insure.

Benefits

This policy is typical “all risk” insurance for storage, assembly/erection, testing and commissioning of the following types of activities. Unless specifically excluded, it provides comprehensive cover for:

  • Setting up a new project/individual machines
  • Expansion of an existing project
  • Dismantling and re-erection of an existing facility
  • The interests of suppliers, manufacturers, contractors as well as Subcontractors can be included in the policy.
  • Cover begins from the time of unloading of the first consignment at the project site and terminates on completion of testing or handing over of the project to the principal, or the period chosen, whichever is earlier.
Add-ons & Extensions:
  • Earthquake
  • Act of terrorism
  • Escalation
  • Limited maintenance cover
  • Extended maintenance cover
  • Clearance and removal of debris
  • Damage to owner’s surrounding property
  • Third party Liability
  • Cross Liability
  • Additional customs duty
  • Express freight, holiday and overtime rates of wages
  • Contractor’s plant and machinery
  • Inland Transit
  • Innocent Non Disclosure/Breach of Policy Conditions
  • Structures in earthquake zones
  • Serial losses
  • Manufacturer’s Risk
  • Decontamination
  • Horizontal Directional Drilling of Pipeline Routes
  • Loss or damage due to strike, riot and civil commotion (SRCC)
  • Exclusion of Horizontal Directional Drilling
  • Suspension of Testing
  • Fire Fighting
  • Public Authorities Clause
  • Work Stoppage
  • Test Run Definition for Gas Turbine
  • Test Run Definition for Steam Turbine
  • Declaration Clause
  • Marine off Shore works
  • Coffer Dams
  • When this policy is combined with transit insurance (either inland or overseas) for project materials, the same is referred to as Marine-cum-Erection policy.

The Sum Insured is the completely erected value of the plant and machinery, inclusive of freight, customs duty and cost of erection.

Exclusions

This policy does not cover loss or damage arising from:

  • Faulty design, defective material, bad workmanship
  • Consequential loss, inventory loss
  • Normal wear and tear, etc.
  • Excess as mentioned in policy

Industrial All Risk Insurance Policy


This is a Comprehensive Package Policy which provides cover against unforeseen circumstances including accidental damage to the property, which a large industry may face during its operation.

Minor accidents and breakdowns (or theft) may lead to major shutdown or huge expenses. Electronic equipment and machineries are expensive and often involve large sums invested in and across vast areas. Any major shutdown may lead to potential loss of market share and this would have long term repercussions.

In such a scenario the all-encompassing cover provided by HDFC ERGO's Industrial All Risk Insurance, gives you the reassurance you need. Perilwise will work with you to ensure timely help in issuing policy, deciding limits of cover, and claims support if needed.reach out to us here

All industrial risks (other than risks rateable under the Petrochemical Tariff) with an overall Sum Insured of Rs. 100 Crores and above in one or more locations in India shall be eligible for the Industrial All Risk Policy.

The policy covers all risks/perils other than those which are specifically excluded. The cover in its widest form, referred to as “all risk“ includes the following benefits:

Section I (Material Damage)
  • Fire and all special perils
  • Burglary
  • Machinery Breakdown/Boiler Explosion/Electronic Equipment Insurance
Section II (Business Interruption)
  • FLOP (Fire Loss of Profit): Business interruption due to fire and all special perils
  • MLOP (Machinery Loss of Profit): Business interruption due to machinery breakdown. This is an optional cover, but recommended as delay in replacing machinery can have far reaching consequences.
Extensions(add-ons):
  • Architects’, surveyors’ and consulting engineers’ fees
  • Omissions to insure additions/alterations
  • Temporary removal of stock Clause
  • Debris Removal Clause
  • Escalation Clause
  • Earthquake
  • Act of terrorism
  • Other extensions are available under relevant sections

The Sum Insured for Section I (Material Damage) relating to buildings, machinery, furniture, fixtures, fittings and electrical installations shall be on Reinstatement Value basis only, while stocks shall be covered on Market Value basis.

The Sum Insured for machinery breakdown risk should be the same as the Sum Insured of plant and machinery declared under fire, minus the value towards piping and cabling.

The Sum Insured for Section II (Business Interruption) based on Annual Gross Profit and Indemnity Period selected. Indemnity Period i.e. the maximum period during which the business may remain interrupted, can be chosen by the insured depending on the activities involved.

Exclusions
Causes excluded
  • Inherent vice, normal wear and tear
  • Collapse or cracking of building
  • Faulty or defective design, material or workmanship
  • Pollution, contamination
  • Inventory losses
  • Fraud, larceny
  • Interruption of the water supply, gas, electricity or fuel systems or failure of the effluent disposal systems, etc
Property excluded
  • Money, cheques, stamps, bonds, credit cards, bullion, precious stones, works of art, unless specifically mentioned in the policy
  • Goods held in trust or commission, business books, computer records, manuscripts, unless specifically mentioned in the policy
  • Vehicles licensed for road use
  • Property in transit other than within the premises specified in the policy
  • Livestock, growing crops or trees

Civil Engineering Completed Risks Insurance Policy


Engineering projects involve enormous amount of cost, man power and resources. Under This policy, HDFC Ergo covers your civil engineering projects against fire and natural hazards after construction is completed. Civil Engineering Completed Risks Insurance Policy is annual named peril policy for civil engineering structures like Bridge, Dam, Jetties, Canal, Tunnel, Water Reservoirs, Runways, Water Pipelines etc. In event of loss, the policy indemnifies to repair/ reinstate the structure subject to policy conditions. Perilwise specialises in custom made policies for specfic risks, and can advise you on the best cover to get in any case.

Benefits:
  • Fire.
  • Lightning.
  • Explosion/Implosion.
  • Riot, Strike, Malicious Damage and Terrorism as per Riot, Strike and Malicious damage clause printed hereon.
  • Impact by any Rail/Road or water borne vehicle or animal.
  • Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood and Inundation, Wave action of water.
  • Subsidence and Landslide (Including Rockslide) damage.
  • Earthquake Fire and Shock (Including flood due to earthquake), Tsunami
  • Frost, avalanche, ice
  • Removal of debris(offered as an add-on)
Exclusions
  • The policy does not cover loss or damage due to:
  • Nuclear reactions, Nuclear radiation or radioactive contamination
  • Political risks
  • Wilful act or wilful negligence
  • Wear and tear
  • Inherent defects
  • Inherent defects, wear and tear, gradual deterioration, expansion or contraction of insured items due to changes of temperature
  • Consequential loss
  • Lack of maintenance

Boiler & Pressure Plant Insurance Policy


In this Industrial era manufacturing units are exposed to Boiler explosion risk within premises. HDFC Ergo Boiler and Pressure Plant Insurance covers damage to boilers & pressure plant with damage to surrounding property, as well as Third Party legal liability arising due to explosion and collapse of the boiler/ pressure plant during its normal course of working. This policy is also a requirement in certain projects, as consequences can be high.

Benefits

Policy covers physical loss or damage to boilers and/or other pressure plant against unforeseen and sudden physical loss of or damage due to explosion or collapse of the insured items. Coverage includes:

  • Damage (other than Fire) to the boilers & pressure vessels;
  • Damage to surrounding property - Upto Limit agreed and
  • Third party legal liability due to Explosion/ Collapse/ Implosion - Upto Limit agreed
Addons & Extensions
  • Express freight (excluding airfreight), Overtime and Holiday rates of wages.
  • Airfreight
  • Owner’s Surrounding Property
  • Third Party Liability
  • Additional Customs Duty
Exclusions

The policy does not cover any losses or damage due to:

  • Fire, smoke, soot, aggressive substance lightning, theft, collapse of buildings, subsidence, landslide, rockslide, water
  • Accident loss damage and/or liability resulting from overload experiments or tests requiring the imposition of abnormal conditions
  • Loss or damage for which the manufacturer or supplier or repairer of the property is responsible either by law or under contracts
  • Political risks;
  • Nuclear reactions, Nuclear radiation or radioactive contamination;
  • Wilful act or wilful negligence;
  • Wear and tear,
  • Inherent defects;
  • Lack of maintenance;
  • Consequential loss

For any quote requests, claims assistance or any other queries contact us here.