EAR – Erection All Risk Policy
Total Cover
100% Claim Settlement
No
Documentation
Reasonable
Premium
Total Cover
100% Claim Settlement
No
Documentation
Reasonable
Premium
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EAR – Erection All Risk Policy: Buy/Renew EAR – Erection All Risk Policy Online Instantly
What is EAR – Erection All Risk Policy
The Erection All Risk (EAR) Policy is an insurance policy that provides comprehensive coverage for projects involving the installation, assembly, and commissioning of machinery, plants, or industrial equipment. It protects against various risks during the erection process, ensuring financial security for the parties involved.
⛦ Example Scenario: Construction damage due to Heavy rain –
In the case of a small business having the Erection All Risk (EAR) insurance and an accident occurring during construction due to heavy rain causing damage, the policy would come into effect to provide coverage. The insurance would help the small business by compensating for the repair and replacement costs of the damaged machinery, plants, or equipment used in the construction. This financial support ensures that small business can resume construction without facing significant financial burdens, minimizing the impact of the accident on their operations and overall profitability.
Coverages: of EAR – Erection All Risk Policy
Material Damage Coverage
Provides protection for the insured against accidental physical loss or damage to machinery, plants, or equipment during the erection process.
Third-Party Liability Coverage
Covers legal liabilities for third-party property damage or bodily injury arising from the erection activities.
Fire and Explosion Coverage
Protects against damages caused by fire or explosion during the installation and commissioning of machinery or equipment.
Natural Perils Coverage
Provides coverage for damages resulting from natural disasters like floods, storms, earthquakes, or lightning.
Faults in Design, Assembly, or Erection
Covers damages caused by design defects, faulty assembly, or errors during the erection process.
Testing and Commissioning Coverage
Includes protection during the testing and commissioning phase of machinery or equipment.
Transportation Coverage
Offers protection against damages occurring during the transportation of machinery or equipment to the construction site.
Maintenance Period Coverage
Extends protection beyond project completion during the maintenance period against defects or issues that may arise.
Accidental Damage Coverage
Covers damages due to accidents, human errors, or unforeseen events during erection.
Additional Add-ons OF EAR – Erection All Risk Policy
Terrorism Coverage
Protects against damages or losses caused by acts of terrorism during the construction project.
Professional Indemnity Coverage
Offers protection against claims arising from errors or omissions in the contractor’s professional services.
Architects and Engineers Coverage
Covers damages caused by design defects or errors made by architects or engineers involved in the project.
Maintenance Period Coverage
Extends coverage during the maintenance period after project completion, protecting against potential defects or issues that may arise.
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
Consolidates insurance coverage for multiple projects under a single policy, streamlining the insurance process.
Environmental Liability Coverage
Protects against liabilities arising from environmental damages or pollution caused during the construction process.
Loss of Profit (Consequential Loss) Coverage
Offers financial compensation for loss of profit resulting from project delays caused by covered perils.
Expediting Expenses Coverage
Covers additional expenses incurred to expedite the repair or replacement of damaged materials or equipment.
Sue and Labor Clause
Covers expenses incurred by the insured contractor to prevent or minimize potential losses during a covered event.
Machine Breakdown Cover
Provides coverage for a 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
Protects against claims and losses arising from design defects in the construction project, providing financial security to the contractor against potential legal liabilities.
Factors Determining the Premium of EAR - Erection All Risk Policy
Project Type and Scope
The nature and complexity of the construction project influence the premium calculation.
Construction Materials
The type, quality, and value of materials used in the project affect the risk profile and, consequently, the premium.
Construction Location
The geographical location of the construction site is considered, as it may be prone to specific risks.
Project Duration
The estimated duration of the construction project is taken into account while determining the premium.
Past Experience and Claims History
The contractor’s previous experience and claims history can impact the premium amount.
Coverage Limits
Higher coverage limits result in increased premiums to provide adequate protection.
Contractor's Expertise
The contractor’s expertise and track record in handling similar projects are evaluated.
Risk Assessment
The insurer assesses potential risks associated with the project and adjusts the premium accordingly.
Add-On Coverages
Opting for additional coverages, such as terrorism or professional indemnity, may affect the premium.
Deductibles and Excesses
The chosen deductible or excess amount can influence the premium value.
Policy Inclusions and Exclusions
The scope of coverage, including any specific inclusions or exclusions, plays a role in determining the premium.
Market Conditions
The prevailing market conditions and competition among insurers can also impact the premium rates.
Major Differences Between CAR (Contractor All Risk)
and EAR (Erection All Risk) Policy
| Aspect | Erection All Risk Policy | Contractor All Risk Policy |
|---|---|---|
Scope of Coverage | Specifically designed for the erection, installation, and commissioning of machinery or plants. Provides coverage for the risks involved in the installation process. | Covers construction projects, including material damage and third-party liabilities at the construction site. |
Nature of Projects Covered
| Tailored for projects involving the assembly and installation of machinery, plants, or industrial equipment. | Applicable to a wide range of civil construction projects, such as buildings, roads, bridges, etc. |
Coverage during Construction
| Provides coverage during the erection phase, safeguarding against risks during the installation and commissioning of machinery. | Protects against damages during construction, including accidental damage, theft, fire, and natural disasters. |
Third-Party Liability | Offers coverage for third-party liabilities related to the erection process, such as damages to surrounding properties during installation. | Covers third-party property damage and bodily injury claims arising from construction activities. |
Machinery and Equipment
| Focuses on machinery and equipment being installed or erected, providing coverage for any damage or breakdown during the process. | Typically includes coverage for construction machinery, tools, and equipment used in the project. |
Project Duration | Provides coverage from the start of erection until the machinery or plant is successfully commissioned. | Offers coverage throughout the construction period until project completion. |
Use of Policy | Designed for engineering contractors or companies specializing in machinery installation and commissioning. | Suitable for civil contractors and builders involved in construction projects. |
Policy Premium | The premium is calculated based on the complexity of the erection process, the type of machinery, and the duration of the project. | The premium is based on the project's size, scope, and risk factors associated with the construction. |
How to Settle EAR – Erection All Risk Policy Claims?
Notification
Promptly inform the insurance company about the loss or damage during transit.
Cooperate with Surveyor
The insurer may appoint a surveyor to assess the extent of the loss. The insured should cooperate fully with the surveyor and provide all required information.
Submit Claim Documents
The insured must submit all necessary claim documents, including the claim form, policy details, and any relevant evidence or proof of loss.
Claim Assessment
The insurance company evaluates the claim based on the policy terms and conditions, coverage limits, and exclusions.
Claim Settlement Offer
After the assessment, the insurer will make a claim settlement offer based on the approved amount of the loss or damage.
Acceptance of Settlement
If the insured agrees with the settlement offer, they can provide their acceptance to the insurer.
Payment of Claim
Upon acceptance, the insurer will proceed with the payment of the approved claim amount to the insured.
Dispute Resolution
In case of any disagreement on the claim settlement, the insured can engage in dispute resolution processes, such as negotiation or mediation.
Legal Action
If necessary, the insured can seek legal recourse through the courts if there are disputes regarding the claim settlement.
Close the Claim
Once the claim is settled, and the insured receives the claim amount, the claim is considered closed.
Exclusions of EAR – Erection All Risk Policy
Pre-existing Conditions
Damages or losses arising from defects or conditions existing before the policy inception are not covered.
Willful Negligence
Any damages caused by willful negligence, intentional acts, or deliberate disregard of safety protocols are excluded.
War and Terrorism
Damages resulting from war, acts of war, terrorism, or related activities are not covered.
Nuclear or Radioactive Hazards
Damages caused by nuclear radiation or radioactive materials are excluded from the policy.
Wear and Tear
Normal wear and tear, gradual deterioration, or depreciation of machinery or equipment are not covered.
Consequential Loss
Loss of profit, business interruption, or any indirect or consequential losses are not included.
Design Defects
Damages caused by inherent design defects in the machinery or equipment are excluded.
Contractual Liability
Any liability assumed under a contract or agreement is not covered by the policy.
Government Actions
Damages due to government actions, such as confiscation, expropriation, or requisition, are excluded.
Loss of Data
Damages resulting from loss of data, records, or software are not covered.
Pollution and Contamination
Damages arising from pollution, contamination, or environmental hazards are excluded.
Delay Penalties
Penalties or liquidated damages imposed due to project delays are not covered.
Documents Required for Claim Settlement under CAR (Contractor All Risk) Policy
Aadhaar Card
Copy of the insured party’s Aadhaar card for identification purposes.
GST Registration Certificate
If applicable, provide a copy of the Goods and Services Tax (GST) registration certificate.
PAN Card
Copy of the insured party’s Permanent Account Number (PAN) card for taxation purposes.
Claim Form
A duly filled and signed claim form providing essential details about the incident and the claimant.
Policy Document
A copy of the valid and active Erection All Risk (EAR) Policy should be submitted.
Proof of Loss or Damage
Any evidence or documentation supporting the occurrence and extent of the loss or damage, such as photographs, videos, or eyewitness accounts.
Project Details
Details of the construction project, including its scope, location, and duration.
Contract Document
Copies of relevant construction contracts or agreements related to the insured project.
Incident Report
A detailed report describing the circumstances of the incident that caused the loss or damage.
Police Report
In case of theft or burglary, a copy of the FIR (First Information Report) is filed with the police.
Repair or Replacement Estimates
Quotations or estimates from repairers or suppliers for the cost of repairing or replacing the damaged property.
Surveyor's Report
If a surveyor is appointed by the insurance company, their assessment report on the extent of the loss or damage.
Invoices and Receipts
Original bills, invoices, or receipts for materials, equipment, or machinery purchased for the project.
Maintenance Records
Records of maintenance activities performed on machinery or equipment involved in the incident.
Any other Supporting Documents
Any other relevant documents requested by the insurance company to support the claim.
Contact Information for Claim Settlement: related to EAR – Erection 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.
- Phone: +91-9654259715
- Email: services@beemawala.com
Frequently Asked Questions: EAR – Erection All Risk Policy
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!
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