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All India Tariff CAR

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ALL INDIA TARIFF

ON

CONTRACTORS ALL RISKS INSURANCE

The Tariff Advisory Committee (hereinafter called the committee) has laid down rules, regulations, rates, advantages, terms and conditions, as contained herein, for transaction of contractors all risks insurance business in india in accordance with the provisions of part ii b of the insurance act, 1938.

Any breach of tariff shall be dealt with as per the relevant provisions of the insurance act, 1938.

TARIFF ADVISORY COMMITTEE

ADOR HOUSE, MUMBAI

CONTRACTORS ALL RISKS INSURANCE POLICY

INDEX

ContentsPages

1.

2.

3.GENERAL RULES & REGULATIONS-

SCHEDULE

STANDARD POLICY FORM

3-15

16-17

18-26

4.PROPOSAL FOR CONTRACTORS ALL RISKS INSURANCE

27-31

5.RATE SCHEDULE

32-38

6.ENDORSEMENTS

39-43

7.

8.ANNEXURE I- NORMS FOR RATING OF LARGE PROJECTS WITH SUM INSURED ABOVE Rs. 100 Crs. AND UPTO Rs.1500 Crs.

CIRCULARS ON TERRORISM COVER44-55

56- 60

GENERAL REGULATIONS

1.JURISDICTION :

This applies to all Risks located in India, for which the value of the Civil Works involved is more than 50 % of the total contract value.

2.SCOPE :

This tariff applies to Contractors All Risk Insurance rating of risks with sum insured upto Rs. 100 crs. ( Risks with sum insured above Rs. 100 crs. shall be rated by Insurers as guidelines issued vide TACs circular 2001 / 7 dated 1st January 2001. See Annexures I )

3.SUM INSURED:

For the purpose of these regulations the Sums Insured on the following items are to be taken into account for arriving at total Sum Insured for CAR Insurance

Marine (Imports)- Landed cost at site

Marine (Indigenous)- Landed cost at site

Cost of Construction

Permanent Civil Engineering Works

Half the escalated value, if escalation is opted for.

N.B. Preoperative expenses should not be included in the sum insured. However, visits of specialists and experts and supervision charges may be included under the head Cost of Construction

4.MARINE/TRANSIT RISKS:

Where Marine/Transit Insurance connected with Contractors All Risks Insurance of any project is placed in India simultaneously or later on in one combined policy or under separate policies, in one department or in different departments, the matter relating to Contractors All Risks Cover is required to be underwritten, subject to these General Regulations.

5.SUB-CONTRACTS FORMING PART OF A PROJECT:

As regards Sub-Contracts forming part of a project, it is clarified that irrespective of whether the project value has been broken into various sections and orders/contracts are placed with different suppliers/contractors/Sub-Contractors OR the Insureds carry out the work themselves departmentally, the Insurances for all such Sub-Contracts are subject of these General Regulations.

6.COMPUTATION OF PREMIUM:

A) Premium shall be computed for the total period commencing from

Commencement of work OR

Date of arrival of the first consignment at the site of erection, whichever is earlier.

7.EXTRA FOR DELETION OF EXCLUSION ON BREAKAGE OF GLASS

The loss due to breakage of glass can, however, be covered by payment of additional premium as follows

CAR rates so worked out as per tariff provisions should be loaded by 25 %

Excess on glass items shall be 10 % of aggregate sum insured of all glass items.

8.STORAGE RATE AT FABRICATORS PREMISES/WORKSHOP:

This is an extension to CAR Policy and can be covered.

Storage Rate Re. 0.30 per mille per annum or part thereof

Excess Rs. 1500 each claim.

9.ADDITIONAL RATES FOR EARTHQUAKE (FIRE & SHOCK) PERILS :

Irrespective of the Sum Insured for CAR the following additional rates are to be charged over the CAR Rate for risks located in Earthquake Zone (as defined in the Fire Tariff).

ZoneApplicable rate (%o) per annum

Zone - I1.00

Zone II0.50

Zone IIINil

Zone IVNil

Notes

1) These additional rates take care of Earthquake (Fire and Shock) perils only.

2) These additional rates are to be charged on pro-rata basis for period shorter than one year.

3) All Acts of God perils other than Earthquake (Fire and shock) are taken care of in the CAR Rates prescribed. However no reduction in the rates can be allowed for excluding any of these perils.

4) The Additional rates mentioned above (namely Rs.1.00 % per annum for risks located in Earthquake Zone I and 0.50 % per annum for risks located in Earthquake Zone II) are to be charged for the total CAR period (Including all extensions).

5) Earthquake cover is optional in both the Zones I & II but this cannot be opted mid-term or for part of the total CAR period. Thus these extras (viz Rs.1.00 per mille per annum for Risks in Zone I and Rs. 0.50 per mille per annum for risks in Zone II) are to be charged for total CAR period (including all extensions).

6) Earthquake cover can be granted, on first loss basis with Sum Insured limits of 20% (OR 10%) of the total sum insured at the rates of 50% ( 40%) of the tariff rate calculated on the total SI. Engg/Gen-24/2003-97th April, 2003

10.MID-TERM INCREASE IN SUM INSURED DURING POLICY PERIOD -

In cases where the Sum Insured for CAR is required to be increased during the policy period, the premium should be collected on the additional Sum insured at applicable CAR rates. It is not permissible to charge pro-rata premium on such increased sum insured.

Mid-term increase in SI shall be affected only after the same has been recorded in the policy by the Company before the occurrence of any claim.

In such cases no Volume Discount shall be applicable.

11.EXCESS FOR CLAIMS ARISING OUT OF ACTS OF GOD PERILS

Column No. 7 of the Part- I - Rate Schedule prescribes minimum excess amount for Collapse Claims and Claims arising out of AOG Perils (viz. Earthquake/Fire and Shock/Landslide/Rock-slide/Subsidence, Flood/ Inundation/ Storm/ Tempest/ Hurricane/ Typhoon /cyclone).

For risks situated in Earthquake Zone I and II the minimum excess for claims arising out of AOG perils shall be as under during the entire policy period (including all extensions)

Zone I Rs. 25,000/- per claim

Zone II Rs. 10,000/- per claim

For risks situated in Earthquake Zone III and IV the minimum excess for claims arising out of AOG perils shall be the excess prescribed in Column No. 7 of Rate Schedule.

The excess amounts shall apply separately to each incident giving rise to loss or damage and for this purpose a incident shall not be considered to have terminated until there have been seven consecutive days freedom from the perils concerned and only thereafter will this excess amount apply afresh.

In respect of those CAR Risks located in Earthquake Zone I or II where clients do not require the cover for Earthquake Perils, the excess amount applicable for all AOG perils other than Earthquake (Fire and Shock) will be the same as prescribed in Column No. 7 of the Rate Schedule.

In respect of those CAR Risks where the excess prescribed in Column No. 7 of the Rate Schedule is higher than excess amounts prescribed above for Zone I and II (viz. Rs. 25,000/- per claim for Zone I and Rs. 10,000/- per claim for Zone II) the higher of the two excesses should be applied in respect of AOG Claims.

12.DISCOUNT FOR HIGHER EXCESS & VOLUME DISCOUNT -

All rates for Contractors All Risks Insurance are subject to minimum Excess per claim and separately for (a) Normal (b) AOG/Collapse Claims as prescribed.

Discounts for opting Higher Excesses (both for Normal and AOG/Collapse Claims at the same time) can be allowed in the CAR rate (as per Rate Schedule) as per the following Scale

Excess Discount in Premium

2 times the minimum Excess 5 %

5 times the minimum Excess 10 %

10 times the minimum Excess 20 %

20 times the minimum Excess

30 %

30 times the minimum Excess35%

40 times the minimum Excess40%

50 times the minimum Excess45%

100 times the minimum Excess50%

> 100 times the minimum Excess55%

Engg/Gen-4/24/2002-23 .30th December, 2002

Earthquake rates and premiums for risks located in Earthquake Zones I and II are distinct from the Rates and Premiums applicable to 'All Risks portions of the CAR Cover, it is permissible to grant discount as per following scale in the Earthquake premium alone.

Earthquake Excess increased to -Discount in Earthquake premium

2 times the minimum Excess 5 %

5 times the minimum Excess 10 %

10 times the minimum Excess 20 %

20 times the minimum Excess

30 %

30 times the minimum Excess35%

40 times the minimum Excess40%

50 times the minimum Excess45%

100 times the minimum Excess50%

> 100 times the minimum Excess55%

Notes

1. These discounts in the Earthquake premium only, can be allowed irrespective of whether the increased Excesses for Normal/Collapse Claims are opted or not for the CAR Cover.

2. The higher Earthquake Excess will qualify for discounts in the Earthquake premium on