2. Objectives
The training is supposed to equip us with an understanding of the
following;
•Definition of CAR
•Scope of cover
•Cover Extensions provided
•Period of cover
•Projects Insurable under C.A.R/Markets
•Information required for quotation purposes
•Commission Rate
3. •Contractor’s All Risks;
CAR insurance is a property insurance
for any building or civil engineering
project undergoing construction.
It Covers on site work, materials, tools
and machinery during construction
period and, if required, during
maintenance period
Legal liability to third parties can be
included
Definition: C.A.R Insurance
4. •Contractor’s All Risks;
Contractors' all risks (CAR) insurance is a non-standard insurance policy
that provides coverage for the two primary types of risks on construction
projects namely;
property damage
Third-party injury or damage claims
Definition: C.A.R Insurance
5. Scope of Cover
• CAR Covers the following broad areas;
I) Material Damage - Section A
ii)Third Party liabilities – Section B
Third Party Liability
Surrounding Property
In particular, the cover comprises the following :
Contract Works
Construction Plant And Equipment
Construction materials on site
Construction Machinery
Costs For Clearance Of Debris
6. Scope of Cover cont…
• Policy Extensions provided under the policy Include;
Political violence and Terrorism
Delayed start up
Maintenance period
• Insurable Interest lies with the following;
Principal
Contractor
Subcontractor
7. Scope of Cover Cont...
C.A.R provides Cover for loss or damage
of insured property on the construction
site caused by any sudden and unforeseen
accidental cause not specifically excluded.
Some types of losses/damages may
include:-
Fire , lightning, crashing of aircraft,
Fire extinguishing water or other
fighting measures
Earthquakes, subsidence, landslide,
rockslide.
8. Scope of Cover Cont...
Flood, inundation, windstorm,
avalanches/tsunami etc
Burglary/Theft of materials on site
windstorm, typhoon, hurricane
Collapse ,damage due to foreign objects
(impact damages)
The basic concept of CAR insurance is to offer
comprehensive and adequate protection against all the
site risks involved in the construction of all types of
civil engineering works.
9. Period of Cover
• Cover comes into effect from the time of Commencement of Work or
immediately after the unloading of the items to be insured including
construction materials at the site (whichever is earlier) and continues until
the construction work has been completed and the project handed over to
the principal subject to the dates specified in the policy
•Cover can be extended in two situations;
To include maintenance period to cover maintenance risks
To allow completion of delayed project but subject to approval of insurer
and payment of additional premium
10. Markets (Some Projects Insurable Under C.A.R
Policy)
Construction of buildings for industries, office blocks, residential and
non residential houses, halls and stadiums
Construction of roads ,bridges, tunnels etc
Construction of dams, reservoirs, canals, dock piers, pipelines, silos etc
Water-Sewer lines, irrigation systems etc
Construction of towers, chimneys etc
11. INFORMATION REQUIRED FOR QUOTATION PROCESSING
The Insurer would wish to know the kind of risk he is going into and what
premiums to charge and thus the below should be considered;
What is being built: (single storey house, maisonettes, row of houses, multi
storeys, no. of basement, no. of storeys, etc, hospitals, schools, industrial
buildings, roads,( what type ; single, double carriageway etc)
Where is it being built:
How is it being built: Erection methods (New and unusual techniques or
normal techniques)
Who is the contractor:
When is it being built: (Period, Time factor(seasons to be covered by
contract period)
Sum Insured.