Compare and Buy Marine / Storage cum Erection Insurance
This is a comprehensive policy covering all physical risks which a project is exposed to right from the warehouse of the supplier of equipments - whether imported or indigenous - to its erection, testing and commissioning at the site.
In case the supplier has arranged transit insurance upto the site, a Storage cum erection policy can be issued limiting coverage to risks that the project is exposed to at the site only.
Who can take the policy?
The policy can be taken by the principal, contractor or sub contractor, jointly or separately.
Scope
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.
The policy covers all risk of physical loss or damage of insured property other than those specifically excluded , including :-
- marine voyage for imports
- offloading / storage at port
- inland transit to site
- storage, handling, erection at site
- testing and commissioning at site
Major Exclusions
- Loss or damage due to faulty design, defective material or casting, bad workmanship other than faults in erection. This exclusion is limited to the items immediately affected and does not apply to any consequential loss to correctly executed items.
- Cost necessary for rectification or correction of any error during erection unless resulting in physical loss or damage.
- Loss or damage due to gradual deterioration, atmospheric condition, rusting etc.
- Loss discovered only at the time of taking inventory.
- Loss arising out of penalty for delay, non-fulfillment of terms of contract.