Erection All Risk

By: SIMON POON AGENCY  27-12-2010
Keywords: Insurance Agents and Brokers, Insurance Agency

Erection All Risk


Scope of Cover
Provides protection against all the risks involved in the erection of machinery, plant and steel structures of any kind as well as third party claims arising in connection with the installation works of the project. The coverage commences from the unloading of items insured to erection work and until test operation has been completed excluding used/second-hand machines where cover ceases upon commencement of testing/commissioning.

Insured
The Principal, Contractor and manufacturer/supplier of the machinery or plant if they carry out the erection work.
Note: Third party means any person other than those related to or working for the contract/project.

Property Insured
All kinds of erection and testing on individual machine, industrial machinery, industrial plants, steel works and/or structure.

In addition, the cover may include Third Party Liability, Civil Engineering Works, Equipment for Erection, Clearance & Removal of Debris, Professional Fees and Surrounding Property, Escalation, Maintenance Cover,Contractor's Plant and Machinery.

Sum Insured
The sum insured similar with the value of the machinery or plant to be erected, and should includes freight, customs duties, dues and erection costs. The Insured undertakes to inform the Company on the increase of sum insured and an additional premium will be charged.

Premium
The premium is calculated at a rate applied to the sum insured and is charged for the full period of the contract and inclusive of testing period. Should there be any extension on period of insurance an additional premium calculated on pro-rata basis is chargeable.
Premium on equipment for erection is charged on an annual basis.

Information required for Quotation
Letter of Award (compulsory)
Breakdown of sum insured
Scope of Works
List of machines with respective value
Layout Plans
Time schedule/Bar Chart
Limit of third party liability
third party surrounding property and distance
machinery origin and supplier

Referred Risks
Energy
Heavy Industries
High Technology Industries

Declined Risk
Off-shore
 

Workmen Compensation Insurance (Project)

Introduction
This insurance is designed to cover death or injuries suffered by employees arising out of their employment.It also indemnifies the Employer (Insured) if sued by employees for negligence, if this is extended.

Coverage is not compulsory in respect of worker, subscribing to the SOCSO scheme although it may be taken up by the Employer (insured) if desired. Principal Compensations Available under Workmen's Compensation Ordinance

Sum Insured
i) Based on the estimated annual earnings of the employees.
ii)Contract work, to take at least 10% of the contract value as wages for all workers

Death And Nature of Disability
Lump Sum Compensation(whichever is less)

1. Death 60 month earnings or RM 18,000.00
2. If the deceased workman has no dependents Funeral
    expenses or RM 1,000.00
3. Permanent total disablement adult who has completed
    his/her 18th year of age. 60 month earnings or
    RM 
23,000.00
4. Other adults 84 months earning or RM23,000.00
5. Minor 108 months earnings or RM23,000.00
6. Death following a period of total or partial temporary
    disablement
    Total of all half-monthly payments under (7) and lump sum
    payable for such death should not exceed RM
23,000.00
7. Half-monthly payments for temporary disablement         
    RM
165.00
or one third of monthly earnings.


Rating
i) Premium rate is computed on the estimated anual salary of
    each employee
ii)The Workmen's Compensation Tariff Rating table (as
    attached) currently serves as a guide
iii)Agents are advised to refer to the company for
    guidance where lower rates are accepted to secure
    risks.


Common Law Extension in a Workmen's Compensation Policy.
A loading of 10% to 25% if the Comon Law is extended in a Workmen's Compensations Policy.
If the job is hazardous, the Common law limit should be restricted to a lower
limit e.g. RM
250,000.00

Underwriting Consideration
i)   The proposal form must be properly completedgiving 
     detail description of the work done by various employees
ii)  Previous claim experience
iii) To ensure that they are no moral hazards involved.
    e.g. :
Employers with unsafe or hazardous place and
    system of
work Safety

Refer/Decline Risk
Refer Risks
i. Cleaning / painting works on outer buildings exceeding 30 ft. in height
ii. Divers
iii. Timber loggers
iv. Acid and gas works
v. Service and maintenance work on board vessels

Decline Risks
i. Aircraft crews
ii. Asbestos related risks
iii. All claims and losses resulting from work carried out to produce latex based
    products

iv. Construction and maintenance of dams
v. Contractors engaged exclusively in wrecking and demolition
vi. Fire brigades
vii. Manufacture and/or production, storage, filing, breaking down transport of:
a. fireworks, fuse(s), cartridges, ammunition, powder, nitroglycerine or any
    explosives

b. gases and/or air under pressure in containers
c. Butane, Methane, Propane, and other liquefied gases
d. toxic substances and toxic waste (It is understood and agreed, however,                 that the storage and transport of any of the substances above mentioned
which is merely incidental to the operations and/or
trade of the company’s
insured not otherwise excluded, is hereby covered)

viii. Offshore rigs
ix. Petroleum and gas exploration, production, drilling, producing, refining and distributing (other than general distributors and petrol stations). This exclusion also applied togeneral maintenance / repairs carried out by general contractors and incidental contracts directly related to (Petroleum and gas explosion)
x. Quarries, if explosives are used, unless merely incidental to the operations and/or
trade of the company’s insured not otherwise excluded.
xi. Service in any kind of armed forces (military, police, security services)
xii. Shipbuilding, ship repairing and shipbreaking
xiii. Ships crews
xiv. Subaqueous/Underwater works and laying of marine cables
xv. The construction, maintenance and demolition of towers, steeples, bridges
      longer than
30 metres and chimney shaft unless merely incidental to the
      operations and / or trade
of the company’s insured not otherwise excluded
xvi. Tunnelling exceeding 100 metres in length
xvii. Underground and underwater mines and all underground services in
       connection
therewith CHAPTER I(d): UNDERWRITING GUIDELINE - 
       NON-MOTOR - FOREIGN WORKERS COMPENSATION SCHEME
177


Link to us at www.simonpoonagency.net/spa-accident-casualty-fire-health-motor-marine-property-liability-insurance-malaysia-kuala-lumpur-oug/Home/contractors-risk-malaysia-kuala-lumpur-kl-oug-1

Keywords: Insurance Agency, Insurance Agents and Brokers