During the course of a civil construction project there are various unforeseen events which can happen causing damage to the project, plant and machinery as well third parties and compromising the financial position of various entities involved viz. Property owner, Principal, Contractors etc.
CAR policy offers a comprehensive protection to ongoing civil contract works for damage to the project works & third-party bodily injury or third-party property damage arising due to the construction project.
WHO SHOULD BUY
Principals and/or contractors engaged in a civil engineering project like building construction, road construction, bridges, flyovers, water tanks, sewage treatment plants, airports etc.
Subcontractors can also be added as a named party in the policy.
KEY FEATURES OF THE POLICY
The policy covers damage to project works due to fire, lightning, theft, burglary & housebreaking, natural calamities like earthquake, flood, inundation, storm, tempest, hurricane, subsidence, landslide, rockslide, mold, construction faults and negligence, Strike & Riot, Malicious damage, Terrorism.
The policy starts right from the time the project materials arrive at the site and continues during storage, physical construction till the project is complete and handed over.
Third parties, including subcontractors might get injured while working at the site or while passing by the site. A building under construction can also damage a surrounding building or vehicles parked nearby in case it collapses or a portion of it collapses or the materials from the crane working at the site accidentally fall off on such vehicles, all these risks are covered under the Third-party liability section of a CAR Policy.
KEY EXCLUSIONS
• War & Allied perils
• Cessation of work
• Wilful acts or negligence of the insured
• Normal wear & tear and gradual deterioration
• Losses discovered at the time of stock-taking.
• Losses/damage due to faulty design, defective material or casting other than faults in erection.
• Consequential loss or liability of any kind
