Ideal Insurance Brokers Pvt Ltd

Engineering Risk Management Group

Erection All Risk Policy

Important Observations

Case Study :

BHUVEE PROFILES
STAINLESS PVT. LTD.

Strictly Confidential
Ideal Insurance Brokers Pvt Ltd
Engineering Risk Management Group

Standard Erection All Risk Policy (EAR)

Erection All Risks (EAR) policy is designed to cover Plant and Machinery under erection.
erection
Interest of Suppliers/Manufacturers, Contractors, Subcontractors can be recorded in the
policy.

What does this policy cover?

On a broad scale, the Erection All Risks Insurance Policy covers the following risks:

•Fire, lightning, explosion, aircraft damage

•Riot, strike, malicious act
•Flood, inundation, storm, cyclone and allied perils
•Landslide, subsidence and rockslide
•Burglary and theft
•Faults in erection
•Human errors
•Short
Short circuiting, arcing, excess voltage
•Collapse, damage due to foreign objects, impact damage
•Electrical
Electrical and mechanical breakdown
Ideal Insurance Brokers Pvt Ltd
Engineering Risk Management Group

Case Study : Bhuvee Profiles

A standard EAR policy covers New Plant & Machinery, however for refurbished (Second
Hand) machinery the covers are restricted.

Most of the Insurance Companies shy away for this Cover, as the Risk is very high. Even
the tariff speaks of special wordings for covering this risk.

The following coverage’s are restricted/excluded in case of Second Hand Machinery from
the standard Policy –

•Short
Short circuiting, arcing, excess voltage
•Electrical
Electrical and mechanical breakdown

To cover the same, the Insurance Companies can ask for some statutory reports which can
help them assess to cover the risk or not.
Ideal Insurance Brokers Pvt Ltd
Engineering Risk Management Group

Available Options
We have already provided 2 quotes covering the risk with some Riders. The Riders can be
removed by opting for high premium covers. For Example –
Hot Testing Period excluded can be covered by paying an additional 60% Premium.
Similarly, High excess can also be removed by paying high premiums.

In case the Machineries are declared as New, the premium can be reduced substantially.
However the same is not suggested as it would result in ambiguity in time of Claim.

The following comparative Premium chart on same Risk is self explanatory.

Premium Comparison
Machineries declared New Rs.15,13,867.00
Second Hand with Testing Period Rs.30,70,750.00
Testing Period Covered with Normal Excess Rs.32,62,675.00
Ideal Insurance Brokers Pvt Ltd
Engineering Risk Management Group

Your Risk With IDEAL

We at IDEAL would like to assure BRG Group a Seamless Service Experience with
a focus on building a Long Term Relationship.

Rahul Mohata, Director, COO. 98 30 10 60 60