Contractor’s All Risk Insurance (C.A.R)

Askari Contractors’ All Risk offers a total package of protection against loss or damage with respect to contract works, construction plant and machinery, equipment employed etc. Third Party Claims in terms of property damage and/or bodily injury are also accounted for if arising out of the execution of civil engineering project. Building works of all type e.g. schools, factories, buildings bridges, highways, water treatment and civil works are just a few examples of where Askari C.A.R can be applied.

Following mentioned risks are covered

  • Fire,
  • Lightning & Explosion,
  • Storm,
  • Tempest,
  • Flood & Inundation,
  • Theft/burglary,    
  • Collapse,
  • Earthquake,
  • Accidental Damages not otherwise excluded

C.A.R insurance provides an “all risks” cover, which means

  • Every hazard is covered which is not specifically excluded.
  • Almost any sudden and unforeseen loss or damage occurring during the period of insurance to the property insured on the construction site will be indemnified.
  • Material Damage Cover is provided and Third Party Liability cover is available with additional premium
  • Maintenance period coverage is also provided

The policy can be taken jointly or separately by

  • the principal,
  • contractor or sub-contractor

The Sum Insured should represent the new replacement value of the works to be certain of complete indemnification in the event of its destruction in part or whole, Standard forms of contract often emphasizes this stipulating “insurance for full replacement value”

The policy can be extended to cover the following items:-

  • Clearing and removal of debris
  • Damage to surrounding property not forming part of the contract work.
  • Maintenance visit / extended maintenance cover to cover accidental loss or damage whilst carrying out any rectification during maintenance period and / or any amount incurred for rectification of such original defects or faults during construction.
  • Earthquake
  • Third Party liability
  • Terrorism
  • Escalation Sum
  • Faulty design
  • Rectification of aesthetic defects of structure not relating to any physical loss or         damage to the structure due to any accident, or of material defector of workmanship  defect.
  • Defective material / workmanship is limited to the parts of the structure immediately affected and does not apply to any consequential loss to     correctly executed items, arising out of the accident due to defective material or workmanship.
  • Loss or damage due to gradual deterioration, atmospheric condition, rusting etc.
  • Loss discovered only at the time of taking inventory.
  • Loss arising out of penalty for delay, non-fulfillment of terms of contract.
  • Mechanical and electrical breakdown of Construction Plant e.t.c.
  • War risk, civil commotion, riot and strikes.
  • Willful negligence on the part of the insured or his representative.
  • Fatal and Non-fatal injuries to the insured or his employees.
  • Nuclear risk
  • It is practice to apply a deductible to claims as neither the client nor the insurer wishes to be troubled with handling small losses. Minor mishaps are inevitable on an Insured site and are usually reckoned in the risk.
  • To comply with client wishes (e.g.  Contract conditions, financial policy or risk management programme), higher deductibles may be applied, with suitable reduction in premium.
  • Proposal Form dully filled, signed and stamped.
  • Site Survey report/Geo Technical report
  • Detailed Bar Chart/Work Schedule.
  • Soil Investigation.
  • Method Statement.
  • Drawings.
  • Bill of Quantity.
  • Contractors Profile