Page 14 - Engineering Insurance IC 77 Ebook

The Insurance Times
amount) and will be permitted only once at the hoists, scrapers, excavators, loaders, jumpers
time of inception of the CAR policy. etc.
Additional premium is to be charged for
For Sum Insured not exceeding 5% of the CAR
“Escalation Provision” at the rate prescribed for
insurance subject to Maximum of Rs. 25 lacs,
CAR but on the 50% of the amount of
the Construction Plant Machinery and
escalation. The method of premium calculation
equipments can be covered separately under
will be as under :
the contractors Plant and Machinery Insurance
a. Assume the Project Sum Insured
Policy. In both the situations, the rates and
Rs. 4 Crores
excesses applicable shall be as per the Tariff
b. Assume Escalation percentage is 10%
rating of CPM Insurances.
Rs. 40 Lakhs
7. Maintenance Visits and Extended
c. Additional premium to be charged at the
Maintenance Cover
prescribed rate for CAR cover will be on 50%
of the Escalation Provisional cover i.e. on The Policy can be extended to cover the
Rs. 20 Lakhs. Maintenance visits and Extended Maintenance.
5. Express Freight (air freight excluded) Holiday Rates to be charged for extended maintenance and
and Overtimes rates of Wages : limited maintenance visits cover for a period of 6
The additional premium for covering Express months.
Freight (air freight excluded), Holiday and Extended maintenance cover 0.05% for 12 months
Overtime Rates of Wages, will be at the basic Limited maintenance visit cover
CAR rate (excluding extras for Earthquake, 0.025% for 6 months
etc.) to be applied on the limit selected. Premium on prorata basis for periods other than 6/
6. Construction, Plants and Equipment : 12 months is not allowed.
The rates and excesses applicable for maintenance
This term implies mobile cranes, tower cranes,

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