ICICI Lombard Construction All Risk Insurance

ICICI Lombard Contractors All Risk Insurance Inclusion

The inclusions under the ICICI Lombard Contractors All Risk policy are:

Material Damage

A Contractors' All Risk policy covers financial losses resulting from material damage or destruction of property, machinery, buildings, and goods. It includes the cost of repair or replacement, provided the damage occurs under conditions outlined in the policy.

Third-Party Liabilities

This policy also provides coverage for third-party liabilities, including:

• Damage to another person’s property.
• Legal liabilities due to accidental loss of goods or machinery on-site.
• Fatal or non-fatal injuries to individuals other than the insured's employees.

Categories of Covered Risks

The inclusions under a Contractors' All Risk policy are categorized based on the nature of risks, such as:

• Locational Risks – Damage or loss caused by fire, lightning, or theft at the construction site.
• Handling Risks – Losses due to impacts, falls, collisions, or equipment malfunctions (e.g., crane failures).
• Testing and Commissioning Risks – Damage arising from electrical faults, short circuits, or safety system failures.
• Human Error Risks – Losses due to negligence, sabotage, vandalism, riots, or terrorist acts.
• Disaster-Related Risks – Damage caused by natural calamities such as floods, earthquakes, or hurricanes. 

Exclusions in Contractors' All Risk Policy

A Contractors' All Risk policy does not cover certain situations where losses or damages occur. The exclusions, as outlined in the policy terms, include:

• War and Related Risks: Damage caused by war, invasion, or military action. 
• Nuclear Hazards: Losses resulting from nuclear explosions or radiation. 
• Excess Claim Amounts: Any claim exceeding the coverage limits specified in the policy. 
• Intentional Damage: Wilful destruction caused by the insured or their representatives. 
• Wear and Tear: Losses due to natural ageing, depreciation, or gradual deterioration of machinery. 
• Defective Design: Damage caused by inherent flaws or faults in machinery design. 
• Work Stoppage: Losses incurred due to halted or delayed construction activities. 
• Stock-taking Discrepancies: Losses identified only during inventory checks. 

Contractual Penalties: Fines or liabilities resulting from breaches of contract terms.

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