Contractor’s All Risks Insurance policy – Add ons

Sr. No. Add Ons Coverages
1 Breakage of Glass Add-On LOSS DUE TO BREAKAGE OF GLASS
It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the policy or endorsed thereon and Insured having paid the agreed extra premium, this Policy extends to cover loss due to breakage of glass and exclusion C of Material damage section stands altered to “Normal wear and tear, gradual deterioration due to atmospheric conditions or lack of use or obsolescence or otherwise, rust, scratching of painted or polished surfaces”.
2 TPL Cover for WITH OR WITHOUT cross liability extensions Add-On Cover for cross liability
It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon and subject to the Insured having paid the agreed premium, the Third Party Liability cover of the Policy shall apply to the Insured parties named in the Schedule as if a separate Policy had been issued to each party, provided that the Company shall not indemnify the Insured under this Endorsement in respect of liability for
• Loss of or damage to items Insured or insurable under Section I of the Policy, even if not recoverable due to an excess or any limit.
• Fatal or non-fatal injury or illness of employees or workmen who are or could have been Insured under Workmen’s Compensation and/or Employers’ Liability Insurance.
The Insurers total liability in respect of the Insured parties shall not however exceed in the aggregate for any one accident or series of accidents arising out of one event the limit of indemnity stated in the schedule.
3 Owners surrounding property Add-On Owners Surrounding Property
It is hereby declared and agreed that the Insured having paid the extra premium the Policy extends to cover loss of or damage to property located on or adjacent to the Project Site and belonging to or held in care, custody or control of the Principal(s) or the Contractor (s) shall only be covered if occurring directly due to the erection, construction or testing of the items Insured under Section I and happening during the period of cover. This cover does not apply to Construction / Erection Machinery, Plant and Equipment, Temporary Buildings and Temporary site installations. Limit of indemnity shall be ———% of the Policy Sum Insured.
The Policy does not cover loss due to Fire, Lightning, Explosion and Aircraft damage
4 Escalation Clause Add-On Escalation Clause
It is hereby declared and agreed that the Insured having paid the agreed extra premium, Company shall provide for escalation in Sum Insured under items of Section I of the Schedule attached to the Policy up to ——–% of the original Site Value, the basis of claim settlement shall be the original site value of affected equipment/ property as Insured plus increase in cost of replacement/ reconstruction, if any provided that the increase in the value of such equipment/ property does not exceed ——– % of the original site value as Insured. It is also hereby declared and agreed that in the event of a claim the Insured would be considered as fully Insured up to the Sum Insured inclusive of ——–% increase as per selected escalation and underinsurance would apply only in the event of the cost of replacement / reconstruction of the affected equipment/property exceeding the original value as Insured inclusive of selected ———- % towards escalation.
It is however understood and agreed that the premium collected against escalation provision shall not be subject to refund of premium as provided in the premium adjustment clause. It is further understood and agreed that in case of additional premium chargeable during final adjustment, additional escalation premium will be charged to the Insured but in case of any premium refundable during final adjustment no refund shall be allowed against the escalation premium already charged to the Insured.
5 Extra Charges Express Freight etc., Excluding Air Freight Add-On Cover of Extra Charges for Overtime, Night Work, Work on Public Holidays, Express Freight excluding Air Freight
It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon and “Insured having paid the agreed premium” the Company shall indemnify the Insured, extra charges for Overtime, Night Work, Work on Public Holidays and Express freight (including Air Freight). Provided always that such extra charges are incurred in connection with any loss of or damage to the insured items recoverable under the Policy. If the sum(s) Insured of the damaged item(s) is/are less than the amount(s) required to be Insured,the amount payable under this Endorsement for such extra charges shall be reduced in the same proportion. Provided always that the amount payable shall not exceed ———–% of loss amount per any one occurrence and that the indemnity in respect of Air Freight shall be subject to an additional excess of————% of the Air Freight incurred per claim.
6 Limited defective condition exclusion (DE 3) Add-On Limited defective condition exclusion (DE 3)
It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon and Insured having paid the agreed extra premium, This Policy excludes loss of or damage to and the cost necessary to replace repair or rectify. a) Property Insured which is in a defective condition due to a defect in design plan specification material or workmanship of such Property Insured or any part thereof.
b) Property Insured lost or damaged to enable the replacement repair or rectifications of Property Insured excluded by (a) above.
Exclusion (a) above shall not apply to other Property Insured which is free of the defective condition but is damaged in consequence thereof.
For the purpose of the Policy and not merely this Exclusion the Property Insured shall not be regarded as lost or damaged solely by virtue of the existence of any defect in design plan specification materials or workmanship in the Property Insured or any part thereof.
7 Automatic reinstatement Add-On Automatic Reinstatement
Notwithstanding anything contained herein to the contrary it is hereby agreed and understood that the amounts Insured are always to remain at risk and shall not be reduced following loss or damage Insured hereunder so long as the aggregate of the sums paid and/or payable does not exceed 10% of the completely erected value – If restricted. It is hereby declared and agreed that the Insured having paid the extra premium the amount Insured are always to remain at risk and shall not be reduced, so long as the aggregate of the sum paid and/or payable does not exceed—— % of Sum Insured.
8 Endorsement For Air Freight Add-on ENDORSEMENT FOR AIR FREIGHT
‘It is hereby declared and agreed that the policy shall also indemnify towards Air freight incurred by the Insured in connection with the indemnifiable loss under the policy. In consideration thereof an additional premium of Rs. is charged hereby. Limit of indemnity shall be Rs. during currency of the policy. Each and every claim shall be subject to a minimum Excess of 5% of the Air freight incurred overand above the excess as applicable under the policy Subject otherwise to terms, conditions and exceptions of the policy.
9 Construction Machineries Plant and Equipment’s Extension Add-on cover Construction Machineries Plant and Equipment Extension
In consideration of payment of an additional premium of Rs. …….. , and notwithstanding anything to the contrary contained in this Policy, It is agreed and understood that the cover under Section I of the Policy shall be extended to include loss of or damage to the construction machinery mentioned in the
attached list of machines, excluding however – loss or damage due to electrical or mechanical breakdown, failure, breakage or derangement, freezing of coolant or other fluid, defective lubrication or lack of oil or coolant, but if as a consequence of such breakdown or derangement an accident occurs causing external damage, such consequential damage shall be indemnifiable, – loss of or damage to vehicles licensed for general road use or waterborne vessels or aircraft. The Sums Insured on construction machines shall be their replacement values, which shall mean the cost of replacement of each insured item by a new item of the same kind and the same capacity. Subject otherwise to the terms, exclusions, conditions and limitations of this Policy
10 Endorsement For Air Freight Add-On Cover of Extra Charges for Overtime, Night Work, Work on Public Holidays, Express Freight including Air Freight
It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon and “Insured having paid the agreed premium” the Company shall indemnify the Insured, extra charges for Overtime, Night Work, Work on Public Holidays and Express freight (including Air Freight). Provided always that such extra charges are incurred in connection with any loss of or damage to the insured items recoverable under the Policy. If the sum(s) Insured of the damaged item(s) is/are less than the amount(s) required to be Insured, the amount payable under this Endorsement for such extra charges shall be reduced in the same proportion. Provided always that the amount payable shall not exceed ———–% of loss amount per any one occurrence and that the indemnity in respect of Air Freight shall be subject to an additional excess of ————% of the Air Freight incurred per claim. It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon and “Insured having paid the agreed premium” the Company shall indemnify the Insured, extra charges for Overtime, Night Work, Work on Public Holidays and Express freight (including Air Freight). Provided always that such extra charges are incurred in connection with any loss of or damage to the insured items recoverable under the Policy. If the sum(s) Insured of the damaged item(s) is/are less than the amount(s) required to be Insured, the amount payable under this Endorsement for such extra charges shall be reduced in the same proportion. Provided always that the amount payable shall not exceed ———–% of loss amount per any one occurrence and that the indemnity in respect of Air Freight shall be subject to an additional excess of ————% of the Air Freight incurred per claim.
11 Cover for Increased Customs Duty Add-On Cover for Increased Customs Duty
It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon and subject to the Insured having paid the agreed extra premium, this insurance shall be extended to cover at the Insured exchange rate increased Customs Duty percentage payable on the replacement supplies over and above the Customs Duty taken into account while arriving at the Sum Insured of the affected item.
Provided always that such additional duty is incurred in connection with any loss or damage to the Insured items recoverable under the Policy and provided further that the amount payable hereunder shall not exceed Rs. ———- in the aggregate. Each and every claim payable under this extension shall be subject to an excess of 5% of the Additional Customs Duty incurred over and above the excess normally applicable.
12 Endorsement for Maintenance visit cover Add-On Limited Maintenance Visits Cover
In consideration of the payment of additional premium by the insured (which is included in the total premium set forth in the schedule) it is hereby declared and agreed that the indemnity provided by this policy is extended to include Maintenance Cover for the period of months to be reckoned from the date of completion or handing over provided the policy period has been extended till completion or handing over. However, during Maintenance Period this Insurance
shall cover solely loss of or damage to the contract works caused by the insured contractor(s) in the course of the operations carried out for the purpose of complying with the obligations under the maintenance provisions of the contract.
13 Endorsement for Extended Maintenance Cover Add-On Extended Maintenance Cover
In consideration of the payment of an additional premium by the insured (which is included in the Total Premium set forth in the Schedule), it is hereby declared and agreed that the indemnity provided by the policy is extended to include Maintenance Cover for the period of months to be reckoned from the date of completion or handing over, provided the policy period has been extended till completion or handing over. However, during the Maintenance Period this insurance shall cover loss or damage to the contract works –
• caused by the Insured contractor(s) in the course of the operations carried out for the purpose of complying with the obligations under the maintenance provisions of the contract.
• occurring during the maintenance period provided such loss or damage was caused on the site during the erection period.
14 Clearance and Removal of Debris Add-On Clearance and Removal of Debris

This Policy extends to cover costs and expenses necessarily incurred by the Company with the consent of the Insurers in demolishing or removing debris of portions of the property Insured by Section I destroyed or damaged by any peril hereby Insured against up to an amount not exceeding ——–% of the claim amount Rs. ———– lacs per any one occurrence and Rs. ———- in the aggregate.

15 Waiver of subrogation clause Add-On Waiver of Subrogation
It is hereby agreed and understood that otherwise subject to the terms exclusions, provisions and conditions contained in the Policy or endorsed thereon, the Company shall waive all their rights of subrogation or action which they may have or acquire against the assured and any person, firm or corporation having an association or affiliation at the time of loss with the assured through ownership or management subject to having been Insured under this Policy.
16 Continuity of Cover Add-On Continuity of Cover
It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon and subject to the Insured having paid the agreed extra premium, the insurance shall be extended to cover – loss of or damage to parts of the insured contract works taken over or put into service if such loss or damage emanates from the construction of the items insured under Section 1 and happens during the period of cover. Excess applicable for this extension would be the applicable AOG Perils excess.
17 Valuable documents Cover Add-On Valuable documents cover
“Subject otherwise to the terms, exclusions, provisions and conditions contained in the Policy, the Indemnity granted by Section 1 of this Policy shall, in addition extend to indemnify the Insured in respect of costs necessarily and reasonably incurred in rewriting or redrawing Plans or Specifications of the contract works Insured hereunder, when such Plans or Specifications are lost or damaged by any cause not excluded by this Section and the Insured needs to have them redrawn or rewritten in order to complete the project or to enable payment to be made for works already carried out. The liability of the Company shall not exceed in the aggregate during the Policy period the Sum Insured set forth in the Schedule.
18 Limited defective condition exclusion (DE 2) Add-On Limited defective condition exclusion
It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon and Insured having paid the agreed extra premium, This Policy excludes loss of or damage to and the cost necessary to replace repair or rectify:
a) Property Insured which is in a defective condition due to a defect in design plan specification material or workmanship of such Property Insured or any part thereof.
b) Property Insured which reliesfor its support or stability on (a) above
c) Property Insured lost or damaged to enable the replacement repair or rectification of Property Insured excluded by (a) and (b) above Exclusion (a) and (b) above shall not apply to other Property Insured which is free of the
defective condition but is damaged in consequence thereof.