WHAT IS A CONTRACTOR'S ALL RISKS (CAR) INSURANCE?

Remarkable progress is being achieved in the field of industrialization in India. There is an on-going process to build the necessary infrastructure for speedy socio-economic development. The infrastructure comprises projects ranging from Airports to bridges, from dams/tunnels to Off-shore structures, from refineries to reservoirs, from pipelines to power stations, from factories to hospitals etc., Hence the need for insurance at the constructional phase.

Contractor's All Risks (CAR) Insurance is the construction phase policy and issued for the period of project or 'One time' policy. This is specially designed policy to protect the interest of contractors and principals in respect of civil engineering projects like construction of buildings, bridges, factories, power stations etc.,

The C.A.R. policy provides an "All Risk" cover. Every risk is covered which is not specifically excluded. This means that almost any sudden and unforeseen loss or damage occurring during the period of insurance to the property insured on the construction site is indemnified.

The more important causes of losses indemnifiable under C.A.R. insurance is:

• Fire, Lightning, Explosion
• Flood & Inundation
• Windstorm of any kind
• Earthquake, Landslide, Subsidence
• Theft & Burglary
• Accidental damage
• Bad workmanship, Lack of skill, negligence
• Malicious acts or human error
• Collapse, impact etc
• Act of terrorism etc