CAR- Contractor All Risk Policy

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Total Cover

100% Claim Settlement

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Reasonable

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Prakhar Srivastava
2 months ago
They guided me through the intricacies of various insurance options, ensuring I fully understood each policy's coverage and benefits. Their transparency and willingness to address all my concerns instilled a sense of trust and confidence in their services.
punitchibber chibber
2 weeks ago
Good service whenever we call to them they give positive response i have a claim they support and my claim got settled
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2 weeks ago
Brilliant place for all types of insurance. Always connected with every claim settlement.. Hassle free.. Kudos to beemawala..
rahul goyal
6 months ago
Beemawala and team is a best Company for take any type of insurance. They support and take care of your claim . Thanks a lot for your support of my claims many times .
Devyani Kharbanda
2 years ago
Shantanu is professional and very prompt in responding to my questions. I’m a repeated client and he’s been supportive throughout. I highly recommend his services. I wish him and his team good luck for future.

CAR- Contractor All Risk Policy: Buy/Renew EAR – Erection All Risk Policy Online Instantly

What is CAR or Contractor All Risk Policy?

The Contractor All Risk (CAR) Policy provides coverage for contractors against a wide range of risks and damages that may occur during the construction of a project. It includes protection for both the contractor’s property and third-party property at the construction site. The policy covers various perils, such as accidents, fire, theft, natural disasters, and damage caused by human errors. In the event of any covered losses, the insurance company will compensate the contractor or the affected third party, providing financial security and peace of mind during the construction phase.


⛦Example Scenario: Theft on Site –
A small business, Suppose Mayank, working on Site where the goods are stolen on-site by some theft. let us see How a CAR (Contractor All Risk) Policy Helps an Interior Decorator Company in Case of Theft on Site.

⛦ How the Policy Helps:

1. Theft Incident: During the construction of a luxurious residential project, a theft occurs at the construction site. Expensive materials, furniture, and fixtures worth thousands of rupees are stolen overnight.


2. Coverage under CAR Policy: Since the interior decorator company has a CAR policy in place, they are protected against unforeseen events like theft on the construction site.


3. Damage Compensation: The insurance company, upon receiving the claim, investigates the incident and assesses the value of the stolen items. The insured interior decorator company is eligible to receive compensation for the total value of the stolen materials, furniture, and fixtures as per the policy coverage.


4. Financial Protection: The CAR policy helps the interior decorator company in recovering the financial loss caused by the theft incident. It allows them to replace the stolen items and continue their project without significant financial setbacks.


5. Smooth Project Progress: With the insurance payout, the interior decorator company can promptly replace the stolen materials and maintain the project’s progress on schedule. This ensures that the project continues smoothly without delays or cost overruns.


6. Client Confidence: The interior decorator company can assure their client that despite the theft, the project will be completed on time and as planned, thanks to the protection offered by the CAR policy. This helps in maintaining client trust and satisfaction.


7. Legal Liabilities: If the theft caused any damage to neighbouring properties or resulted in third-party claims, the CAR policy might also provide coverage for legal liabilities, protecting the insured company from potential lawsuits.


8. No Additional Financial Burden: Since the interior decorator company had the foresight to secure a comprehensive CAR policy, they do not bear the burden of replacing the stolen items with their own funds, saving them from a financial strain.


9. Business Continuity: The CAR policy ensures the continuity of the interior decorator company’s business operations even in the face of unexpected incidents like theft. It safeguards their financial stability and reputation.


10. Peace of Mind: By having a CAR policy, the interior decorator company gains peace of mind, knowing that their investment in the project and their efforts are protected against various risks, including theft, during the construction phase.

Coverages of CAR or Contractor All Risk Policy

Property Damage Coverage

Property Damage Coverage

Provides protection for the contractor’s property, including materials and machinery, in case of accidental damage or loss.

Third-Party Property Coverage

Third-Party Property Coverage

Covers damages to neighbouring properties or buildings at the construction site.

Theft and Burglary Coverage

Theft and Burglary Coverage

Offers financial compensation in case of theft or burglary on the construction site.

Natural Disasters and Acts of God

Natural Disasters and Acts of God

Provides coverage for damages caused by natural disasters like floods, storms, and earthquakes.

Fire and Explosion Coverage

Fire and Explosion Coverage

Ensures protection against damages from fire or explosions on the construction site.

Accidental Damage Coverage

Accidental Damage Coverage

Covers damages due to accidents, collapses, or human errors during construction.

Construction Equipment Coverage

Construction Equipment Coverage

Provides protection for construction equipment, tools, and machinery.

Delay in Project Completion

Delay in Project Completion

Offers coverage for additional expenses due to project completion delays.

Legal Liabilities Coverage

Legal Liabilities Coverage

Covers legal liabilities for third-party injuries or property damage.

Additional Add-ons of CAR (Contractor All Risk) Policy in India

Terrorism Coverage

Terrorism Coverage

Extends coverage to protect against damages or losses caused by acts of terrorism during the construction project.

Professional Indemnity Coverage

Professional Indemnity Coverage

Offers protection against claims arising from errors or omissions in the contractor’s professional services.

Architects and Engineers Coverage

Architects and Engineers Coverage

Covers damages caused by design defects or errors made by architects or engineers involved in the project.

Maintenance Period Coverage

Maintenance Period Coverage

Extends coverage during the maintenance period after project completion, protecting against potential defects or issues that may arise.

Inland Transit Coverage

Inland Transit Coverage

Provides coverage for the transportation of materials and equipment to the construction site from external locations.

Owner Controlled Insurance Program (OCIP) Coverage

Owner Controlled Insurance Program (OCIP) Coverage

Consolidates insurance coverage for multiple projects under a single policy, streamlining the insurance process.

Environmental Liability Coverage

Environmental Liability Coverage

Protects against liabilities arising from environmental damages or pollution caused during the construction process.

Loss of Profit (Consequential Loss) Coverage

Loss of Profit (Consequential Loss) Coverage

Offers financial compensation for loss of profit resulting from project delays caused by covered perils.

Expediting Expenses Coverage

Expediting Expenses Coverage

Covers additional expenses incurred to expedite the repair or replacement of damaged materials or equipment.

Sue and Labor Clause

Sue and Labor Clause

Covers expenses incurred by the insured contractor to prevent or minimize potential losses during a covered event.

Machine Breakdown Cover

Machine Breakdown Cover

Provides coverage for sudden and unforeseen breakdown of machinery used during the construction, ensuring timely repair or replacement without significant financial burden on the contractor.

Design Defect Liability Cover

Design Defect Liability Cover

Protects against claims and losses arising from design defects in the construction project, providing financial security to the contractor against potential legal liabilities. “

Major Differences Between CAR (Contractor All Risk) and EAR (Erection All Risk) Policy

Aspect CAR Policy EAR Policy
Scope of Coverage
Covers construction projects, including material damage and third-party liabilities at the construction site.
Specifically designed for erection, installation, and commissioning of machinery or plants. Provides coverage for the risks involved in the installation process.
Nature of Projects Covered
Applicable to a wide range of civil construction projects, such as buildings, roads, bridges, etc.
Tailored for projects involving the assembly and installation of machinery, plants, or industrial equipment.
Coverage during Construction
Protects against damages during construction, including accidental damage, theft, fire, and natural disasters.
Provides coverage during the erection phase, safeguarding against risks during the installation and commissioning of machinery.
Third-Party Liability
Covers third-party property damage and bodily injury claims arising from construction activities.
Offers coverage for third-party liabilities related to the erection process, such as damages to surrounding properties during installation.
Machinery and Equipment
Typically includes coverage for construction machinery, tools, and equipment used in the project.
Focuses on machinery and equipment being installed or erected, providing coverage for any damage or breakdown during the process.
Project Duration
Offers coverage throughout the construction period until project completion.
Provides coverage from the start of erection until the machinery or plant is successfully commissioned.
Use of Policy
Suitable for civil contractors and builders involved in construction projects.
Designed for engineering contractors or companies specializing in machinery installation and commissioning.
Policy Premium
The premium is based on the project's size, scope, and risk factors associated with the construction.
The premium is calculated based on the complexity of the erection process, the type of machinery, and the duration of the project.

How to Settle CAR (Contractor All Risk) Claims?

Notification

Notification

Promptly inform the insurance provider about the incident that caused the claim.

Document Collection

Document Collection

Gather all relevant documents, including the insurance policy, project details, and evidence of damage or loss.

Contact Insurance Provider

Contact Insurance Provider

Initiate the claim process by contacting the insurance company’s claims department and providing the necessary details.

Survey and Inspection

Survey and Inspection

An appointed surveyor will assess the damages on-site to evaluate the claim.

Claim Evaluation

Claim Evaluation

The surveyor will assess the claim’s validity based on policy terms and conditions.

Claim Settlement

Claim Settlement

The insurance company will notify the insured contractor of the settlement amount.

Negotiation (if required)

Negotiation (if required)

Negotiate if there are discrepancies in the claim amount.

Claim Payment

Claim Payment

The insurer will issue the agreed claim payment.

Closure

Closure

Ensure all necessary documentation is completed, and the claim file is closed.

Exclusions of CAR (Contractor All Risk) Policy

Pre-Existing Damages

Pre-Existing Damages

Damages or defects that existed before the policy’s inception are not covered.

Willful Negligence

Willful Negligence

Damages resulting from deliberate actions or intentional negligence by the insured are excluded.

Contractual Liability

Contractual Liability

Any liability assumed by the contract but not related to the project’s scope is not covered.

War and Nuclear Risks

War and Nuclear Risks

Damages arising from war, nuclear events, or acts of terrorism are excluded.

Normal Wear and Tear

Normal Wear and Tear

Damage caused by regular wear and tear or deterioration over time is not covered.

Consequential Loss

Consequential Loss

Loss of profit or indirect financial losses resulting from project delays are excluded.

Loss of Documents

Loss of Documents

Loss or damage to important documents and records is not covered.

Mechanical and Electrical Breakdown

Mechanical and Electrical Breakdown

Breakdown of machinery or equipment due to mechanical or electrical issues is excluded.

Environmental Pollution

Environmental Pollution

Damages arising from environmental pollution or contamination are not covered.

Unapproved Design Changes

Unapproved Design Changes

Damages caused by unauthorized design changes during the construction process are excluded.

Losses Beyond Policy Period

Losses Beyond Policy Period

Damages occurring after the policy expiration date are not covered.

Intentional Damage

Intentional Damage

Any damages caused intentionally, by fraud, or by illegal activities are excluded. Understanding the exclusions is vital to ensure appropriate risk management and avoid any disputes during claims settlement.

Documents Required for Claim Settlement under CAR (Contractor All Risk) Policy

Aadhaar Card

Aadhaar Card

Copy of the insured party’s Aadhaar card for identification purposes.

GST Registration Certificate

GST Registration Certificate

If applicable, provide a copy of the Goods and Services Tax (GST) registration certificate.

PAN Card

PAN Card

Copy of the insured party’s Permanent Account Number (PAN) card for taxation purposes.

Claim Form

Claim Form

A duly filled and signed claim form providing essential details about the incident and the claimant.

Insurance Policy Copy

Insurance Policy Copy

A copy of the CAR policy, indicating the coverage period and terms and conditions.

Construction Contract

Construction Contract

A copy of the construction contract or agreement between the contractor and the project owner.

Incident Report

A detailed report of the incident that led to the claim, including the date, time, location, and description of the damages or losses.

Photographic Evidence

Photographic Evidence

Photographs or videos showing the extent of the damage or loss.

Police Report

Police Report

In case of theft, burglary, or vandalism, a copy of the police report is filed for the incident.

Surveyor's Report

Surveyor's Report

If a surveyor was appointed by the insurance company, the surveyor’s assessment and report on the damages.

Estimate of Repairs

Estimate of Repairs

An estimate of the cost of repairs or replacement for the damaged property or equipment.

Invoices and Bills

Invoices and Bills

Original invoices and bills related to the repairs or replacement expenses.

Witness Statements

Witness Statements

Statements from witnesses, if available, support the claim.

Proof of Ownership

Proof of Ownership

Documents proving the damaged property or equipment ownership.

Proof of Payment

Proof of Payment

Receipts or bank statements as proof of payment for the insurance premium.

Any Other Supporting Documents

Any Other Supporting Documents

Any additional documents requested by the insurance company to validate the claim.

Contact Information for Claim Settlement: related to CAR (Contractor All Risk) Policy

If Policy Obtained through Agent/Broker

Claims are the reason we get a car insurance in the first place! Therefore, ensure the claim process of your desired car insurance is smooth and doesn’t take too long. When you’re in trouble, the last thing you want is, to spend all your time and energy in just filing a claim!

If Policy Obtained Directly from Insurance Company

Claim Settlements are basically getting your compensations done right. Claims being such an important part of a car insurance, check for your desired insurer’s claim settlement ratio so that you’re assured that no matter what, your claims will be settled!

Claim Contact Information for Policy from Beemawala.com

If you have taken the policy from Beemawala.com, please use the following contact details to register your claim.

Frequently Asked Questions: CAR
(Contractor All Risk) Policy

A Contractor All Risk (CAR) Policy is an insurance policy designed to provide comprehensive coverage to contractors and builders during construction projects. It offers protection against various risks, including property damage, third-party liabilities, and other unforeseen events that may occur at the construction site.
Contractor All Risk Insurance is the same as the Contractor All Risk Policy. It is an insurance product that safeguards contractors and builders against potential financial losses arising from construction-related risks and damages.
To obtain Contractor All Risk Insurance, you can approach insurance providers or insurance brokers specializing in construction-related policies. Discuss your project’s details, scope, and risks to receive customized insurance quotes and choose the most suitable policy.
Contractor All Risk Insurance covers a wide range of risks encountered during construction projects, including damages to property, machinery, and equipment, as well as third-party liabilities arising from construction activities. It typically includes protection against fire, theft, natural disasters, accidental damage, and more.
The CAR policy provides coverage for damages or losses to the contractor’s property, third-party property, and liability during construction projects.
Any individual or company involved in construction projects, such as civil contractors, builders, or engineering firms, can purchase a CAR policy.
CAR insurance covers a wide range of civil construction projects, including residential buildings, commercial complexes, roads, bridges, and more.
Yes, the CAR policy includes coverage for third-party property damage and bodily injury claims arising from construction activities.
Yes, the CAR policy typically covers damages caused by natural disasters, including earthquakes, floods, storms, and other perils, subject to policy terms.
Yes, the CAR policy includes coverage for construction equipment, machinery, and tools used during the construction project.
Exclusions may vary, but typical exclusions include pre-existing damages, willful negligence, war, nuclear risks, and environmental pollution.
Yes, the CAR policy can be customized with add-ons to cover specific risks like terrorism, professional indemnity, or delay in project completion.
In the event of a claim, notify the insurance provider, submit relevant documents, undergo an assessment by a surveyor, and receive the claim settlement amount.
While it may not be mandatory by law, having a CAR policy is highly recommended to protect against unforeseen risks and potential financial losses during construction projects.
The Contractor All Risk Policy is an insurance policy that provides comprehensive coverage for construction projects, including damages to the contractor’s property, third-party liabilities, and machinery or equipment used during the project.
The premium for the Contractor All Risk Policy is determined based on factors like the project’s size, scope, location, construction materials, and the level of risk associated with the project.
The wording of the Contractor All Risk Policy includes the terms and conditions, coverage details, and exclusions of the insurance contract.
Yes, many insurance providers offer the option to purchase Contractor All Risk Policy online for ease and convenience.
While not mandatory by law, having a Contractor All Risk Policy is highly advisable to protect against unforeseen risks and potential financial losses during construction.
The Contractor All Risk Policy typically covers damages to property, construction equipment, machinery, and liabilities arising from third-party injuries or property damage at the construction site.
To compare coverage options, consider the policy’s inclusions, exclusions, add-ons, and premium rates from different insurance providers.
In case of a claim, notify the insurance provider, submit the required documents, undergo a survey and assessment, and receive the claim settlement amount.
Maintenance period coverage extends protection beyond the project completion, safeguarding against defects or issues that may arise during the maintenance phase.
The main benefits of the policy include comprehensive coverage for construction-related risks, financial protection against damages, and safeguarding the contractor’s interests during the project.

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