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EAR insurance policy that is Erection All Risk insurance policy which comes under insurance class of engineering and deals with machinery and inherent risks in engineering related works like erection and commissioning of project and may also be extended for testing.
EAR which importantly cover the risks involved in the erection and installation of machinery, plant and equipments and steel structures of different types. Policy which protect project companies, suppliers, manufacturers of machinery, plant or contractors who carries erection work or is responsible for it.
EAR insurance policy is comprehensive cover. It covers all the risk unless specifically excluded. Policy cover which starts from the time of unloading of the first consignment at the project site and ends on the completion of testing or handling over of the project to the principal, or period chosen whichever is earlier.
Erection projects which are exposed to many different risks such as subsidence or collapse, theft or burglary, faulty workmanship, faults in erection, negligence, short circuiting, excess pressure or vacuum any other unforeseen or sudden event which will be covered by Erection All Risk policy.
Sum Insured:
Sum Insured in the EAR policy is the completely erected value of the plan and machinery inclusive of freight, custom duty and cost of erection.
Premium:
EAR premium which depends on various factors such as type, protection, experience of contractors, duration of the project period of testing etc.
Policy can be extended on payment of additional premium to cover:
Escalation, Clearance and Debris Removal, TP Liability, Damage to Owners surrounding property, Express Freight, Additional Custom, Overtime Rate and Wages etc.
EAR Insurance Requirements:
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Technical specification of project, values of items.
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Experience and expertise of erection firm.
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Information of production process.
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Supply and erection time schedule.
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Details of pre storage facilities and security arrangements.
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Availability of replacement parts or machinery and its price.
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Erection project are complex activity, where project companies, supplier, contractors exposed to lots of risk, therefore it is very important to get insure with Erection All Risk ( EAR) policy which will provide complete protection from different perils.
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Know more about EAR and CAR policies in India.
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