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Contractors All Risk (CAR) policy is designed to cover all types of civil engineering projects like buildings, dams, flyovers, etc. It is possible to record the interest of principal, contractors and subcontractors in the policy.
Code: Engg 04
This policy broadly covers the risk of accidental physical loss or damage in respect of the contract works, during the execution of a civil project. CAR insurance provides an 'all risk' cover. All perils are covered unless specifically excluded.
Cover incepts from the commencement of work or after unloading of first consignment at project site, whichever is earlier. It terminates on handing over of works to the principal or expiry of policy, whichever is earlier.
The sum insured shall be the fully completed value of the contract works inclusive of all materials, wages, freights, and custom duty and materials or items supplied by the principal.
Premium depends on factors like type, value and duration of the project.
This policy does not cover loss or damage due to willful misconduct, cessation of work whether total or partial, delay, damage due to faulty design, rectification of defective material and/or workmanship inventory losses etc. Policy is subject to deductible excess as stipulated in the tariff.
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