STORAGE – CUM ERECTION POLICY

1. SUBJECT MATTER :- All  Kinds  of  Industrial machines / Raw material used for production purposes , with in India .

2. INSURED PARTY :-

           The Insured party can be manufacturer, supplier, contractor , subcontractor or owner of the machinery . The policy can be taken jointly by the owner covering interest of all other parties.

3. RISK COVERED :-

            The Policy cover accidental physical loss or damage due to any cause , as  under :-

1. Fire , riot & strike & allied perils, sabotage .
2. Natural calamities like Flood , Cyclone , Subsidence , landslide , Rock slide , Inundation , Storm , Collapse .

                     STFI , Earth quake & Terrorism under extension cover has Add on cover with extra premium 

1. c) Theft & Burglary
2. d) Faults during erection , lack of skill / carelessness of workers handling risks
3. e) Short circuit , explosions, tearing apart on account of Centrifugal forces.
4. f)  Electrical  and Mechanical  failure during trial & testing .

4. RISK NOT  COVERED
5. Wear and tear
6. Willful act or gross negligence of the insured
7. Consequential loss of any kind
8. Any contractual liability / under manufacturer’s guarantee .

5. SUM INSURED  ( on following basis)
6. Machinery / equipment’s  landed cost at site
7. Cost of Erection
8. Permanent Civil Engineering works

1. PERIOD OF COVER:

The period of cover is given according to the requirement of the client, from 1 month to 24 months as may be required and it includes usually 1 month testing period for each machine.

One can select more than 1month testing period upto a maximum of 3 to 12 months by paying additional premium.

Testing period available under the policy shall cease to operate with the commencement of the commercial production or with the handing over of the plant to the principal whichever is earlier. In no case the duration of the testing period shall exceed 12 months.

2. CONDITIONS FOR INSTALLMENT FACILITIES:
3. Policy period should be more than 12 months
4. 1^st instalment should be higher by 5 % of the total premium due under the policy then the rest of the instalments.
5. Gap for each instalment should not be more than 90 days.
6. Last instalment should be collected 6 month before the policy expires and each instalment should not have gap more than 90 days.

 ADD ON COVERS WITH EXTRA PREMIUM:

• STFI ( Storm, Tempest, Flood and Inundation) at the tariff rate Rs.0.225 per milli per annum.

• Earthquake :

Zone I  :   Rs.0.50 per milli per annum

Zone II :   Rs.0.25 per milli per annum

Zone III:   Rs.0.10 per milli per annum

Zone IV :  Rs.0.05 per milli per annum

• TERRORISM: Rate Rs.0.25 per milli per annum.

• Third Party Liability cover :

The term implies legal liability arising out of property damage or bodily injury suffered by Third parties and occurring in connection with the contract works on or near the building site

• CLEARANCE AND REMOVAL OF DEBRIS

In the Event of Accidental damage , there will be lot of debris of damaged plant , which will be required to be cleared before any repairing is carried out and this involves a substantial expenditure.

If Insured desires to cover this , he has to specify a limit of indemnity, in proposal form and the same to be mentioned in the policy

• CIVIL WORKS :-

The rate as applicable for SCE is to be charged on the limit of sum insured fixed for S.I. for civil works.

• ESCALATION:-

Sometimes additional sum insured is required for escalation in the values. However the escalation benefit will be limited to a maximum of 50 % of Sum insured of MCE and will be permitted only once at the time inception.

• SURROUNDING PROPOERTY OF THE INSURED:

For covering the specified surrounding property of the insured, the arte applicable will be 50 % of the EAR rate to be charged on the limit of sum insured fixed for the surrounding property.

• EXPRESS FREIGHT, HOLIDAY AND OVERTIME RATES OF WAGES ( AIR FREIGHT EXCLUDED):

Additional rate will be at the basic SCE rate to be applied on the amount selected.

• AIR FREIGHT:

The rate and excess as under shall be charged exclusively for items of Air Freight only on amount selected

Rate     :  5 % on the amount of indemnity selected.

Excess :  5% on the Air Freight incurred per claim

• CUSTOMS DUTY( ADDITIONAL):

The cover for additional Customs Duty will be subject to the following    rates, terms andconditions

1. The specific limit of additional customs duty either in % or in amount has to be selected by the insured at the inception of the policy and can be reinstated in the event of loss.

• CONSTRUCTION PLANT MACHNIERY AND EQUIPMENT :

Many times a separate Sum Insured is fixed for construction of plant / machinery and equipment used for such projects.

This term implies to Mobile cranes, Tower cranes, Hoists, Scrapers, Excavators, Loaders, Jumpers etc., When the sum insured on Contractor’s Plant, Machinery and Equipment under a project does not exceeds 5 % of Sum Insured subject to a maximum of Rs.25 lakhs, the same can be covered under the SCE policy at the applicable rates as per the CPM tariff.

Where the sum insured on Contractor’s Plant, Machinery and Equipment’s under a project exceeds 5% of sum insured the same should be covered under the CPM policy, as per tariff.

• DISMANTLING COVER:

The additional rate for dismantling cover will be 60 % of the total SCE rate, irrespective of period of dismantling.

• MAINTENANCE VISITS & EXTENDED MAINTANANCE COVER:

1. The policy can be extended to cover the Maintenance Visit and Extended Maintenance as per the Tariff rate.

1. The cover should be granted at the inception of the policy. It cannot be granted just prior to commencement of Maintenance period.

1. Extended Maintenance cover could be given for any period longer than 12 months, as required under the contract at the rates prescribed by the tariff.

• STORAGE RISKS:

At fabricators premises / workshop @ 0.30 per millie per month or part thereof to cover additional transit involve and for the storage at fabricator’s premises.

• INCREASE IN SUM INSURED:

If the sum insured is to be increased during the currency of the policy it can be done at short period rate.

• EXTENSION BEYOND POLICY PERIOD:

Extension Beyond Policy Period is allowed at the request of the insured and the premium will be charged according to the period required to be extended.

The standard SCE policy excludes loss or damage due to faulty design, defective material or casting, bad workmanship other than faults in erection specification, material or workmanship.

This Design Defect DE-4 [Defective Part] cover makes it explicit that this Exclusion shall not apply to other parts or items of Property Insured which are free from defect but are damaged in consequence of a component, part or individual item which is defective in design plan specification, material or workmanship.