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Life InsuranceCan You Have Multiple Life Insurance Plans? Everything You Need to Know
Yes, you can hold more than one life insurance policy in India. Here's how it works, when it makes sense, and what to keep in mind before you buy.
Engineering All-Risk Insurance
If you are in the construction business, you might be aware that the construction business is highly linked to risks and accidents; thus, getting insurance is one of the most important things. Consider this example – once there was Mr. Adam, who got a contract to lay out gas pipelines in Noida from Indira Gas Limited. The former company advised Mr. Adams to buy an engineering all-risk (EAR) policy equal to the project value so that they could safeguard themselves in the future. Mr. Adam didn't listen, and while testing the pipeline, they found out that there was a crack in one of the pipes. Due to this, Mr. Adam faced a huge financial loss. If Mr. Adam had brought the EAR policy, he could have gotten paid for all the losses. Don't be Mr. Adam, and read on to learn about EAR policy.
Types of Engineering All-Risk (EAR) Insurance
The types of Engineering All-risk insurance plans offered are as follows:
Machinery Breakdown Insurance
Covers all types of plants and machinery units. Pays for the cost of repairs and replacement of damaged parts. Applies to breakdowns due to unforeseen circumstances.
Machinery Loss of Profit Insurance
Covers losses from sudden accidents, breakdowns, or failures of vital machinery. Protects manufacturing units against restricted operations and revenue loss.
Electronic Equipment Insurance
Provides comprehensive coverage for all electronic equipment in industrial operations. Covers physical loss or damage to electronic equipment and data media. Includes increased cost of operations resulting from equipment damage.
Erection All-Risk Insurance
Covers storage of equipment, moving of facilities, and dismantling or re-constructing. Offers extensive coverage ideal for businesses with diverse project needs.
Contractor All-Risk Insurance
Covers all risks occurring on a civil construction site. Helps contractors ensure project completion within the deadline.
Advance Loss of Profit Insurance
Covers losses from delays in factory operations due to damaged machinery. Designed to protect against profit loss from operational disruptions.
Contractor's Plant and Machinery Insurance
Provides protection for machinery used in day-to-day construction operations. Minimizes repair costs for essential construction equipment.
Why Do You Need Engineering All-risk Insurance?
- Engineering all-risk insurance can save you from possible threats and bankruptcy that might occur due to the following scenarios:
- Engineering all-risk insurance gives protection against the credit risk of engineering a new building, loading/unloading at a construction site, storage, trials, maintenance, and some other costs of the necessary repairs.
- The policy gives peace of mind knowing that there is insurance to cover the costs if the project derails from its goal during the process.
- It will also protect you against any legal allegations that have been raised during the construction process.
- The engineering all-risk insurance even covers the cost of demolishing a faulty structure.
- For businesses, engineering all-risk insurance can offer protection against all kinds of financial losses related to project delays.
- Engineering all-risk insurance gives coverage for the cost of repairs if a property is damaged during the construction process.
- The insurance policy also covers the cost of alternative accommodation if families are forced to temporarily move out of their homes for construction.
Who Can Purchase Engineering All-Risk (EAR) Insurance?
- An engineering all-risk insurance policy can be an ideal purchase for specific businesses. Businesses that involve developmental risks that can lead to devastating financial consequences.
- For example- power plants, manufacturing and fabricating set-ups, wastewater treatment plants, and telecommunication centers.
- The engineering all-risk insurance policy gives coverage at various stages of an engineering project. This can be storage, testing, handling, or commissioning at a plant or at a machinery engineering site. In addition to that, it also covers liability for injuries to third parties or damage to property during construction. So, general contractors, subcontractors, engineers, architects, and people who are funding a construction project can buy EAR insurance.
What Will an Engineering All-Risk Policy Cover?
- The EAR insurance cover begins at the time of the first consignment at the project site until the testing or handing over of the project to the principal employer or at the deadline, whichever is earlier.The eventualities against which you are covered by an EAR policy are:
- Material Damage : Under this policy, you get coverage for damages occurring at the insured construction site, such as human errors, negligence, short-circuiting, impact damage, collapse of buildings, bridges, etc.
- Plant and Machinery : Any loss or damage to projects that are currently under construction, like electrical plants and machinery, equipment, and structures, with no civil engineerings work like short-circuiting, burglary, or theft.
- Construction Equipment : Any damage to a contractor's construction equipment is also covered under the EAR insurance policy.
- Third-Party Liability : The occurrence of any third-party liability at the time of construction and the operational phase of the project also gets coverage under this policy.
What is Not Covered in the Policy?
- The eventualities that are not covered under an engineering all-risk policy are:
- War, invasion, riot, strike, civil commotion, etc.
- Nuclear attacks and nuclear contamination
- Wilful negligence of the insured
- Cessation of work
- Defective material/bad workmanship
- Wear-tear, corrosion, oxidation, and deterioration
- Inventory losses
- Design defects
- Loss of files, cash, cheques, etc.
- Other consequential losses
How to File a Claim for Engineering All-Risks Insurance?
- To file a claim under the EAR insurance policy, you must follow the below-mentioned steps:
- Contact the insurer and inform them about the incident/accident.
- Give details of the incident and the policy number
- Your claim will be registered and you will be given a claim registration number.
- A survey of the damage that occurred is conducted.
- Once the surveyor gives a thumbs up, the insurer confirms the financial and legal liabilities before settling the claim.
To Sum Up!
- However, there are still a few things that you need to keep in mind while choosing engineering all-risk insurance. For example, to ensure you are getting the right coverage as per your needs, compare quotes from several different insurers to get the best price and ensure that you understand the terms and conditions of your policy before you sign the paper.
- But what if, you could do all this and much more by right-clicking only once? Policywings is the platform for all your insurance-related problems. Visit the website today.
EAR Insurance Tip from Policywings
Engineering projects involving heavy machinery installation should always have both EAR and machinery breakdown insurance. EAR covers risks during installation while machinery breakdown covers post-installation failures. Make sure the sum insured includes the full value of machinery, installation costs, and civil works involved in the project.
Engineering all risk insurance provides coverage against accidental loss or damage to machinery, equipment, and engineering projects during installation, erection, and testing phases.
