Engineering Insurance - Astra Insurance Indonesian Company

Understanding from Engineering Insurance

Engineering Insurance give protection financial to consumer of machine / equipments of electronic and owners / executor an installation project also construction project.

There is 2 kinds of Engineering Insurance:
1. Engineering Project

• Contractor’s All Risk (CAR)


• Erection All Risk (EAR)

2. Engineering non-Project

• Machinery Breakdown


• Electronic Equipment


• Deterioration of Stock


• Civil Engineering Completes Risk


• Contractor’s Plan Machinery/Equipment

In this discussion, available discussion is for Engineering Project Insurance.

Contractor's All Risk (CAR) Insurance

Which become responsibility object in CAR Insurance:

• House building remain, office, hospital, school, hotel, marketplace


• Factory


• Power Station


• Roadway and bridge


• Airport


• Dock, accumulating basin, irrigation system


• Reclamation, work of land

The responsibility condition be available in CAR Insurance is 2 kinds of:
1. Section 1 - Material Damage

• Work contract


• Construction plant and machinery / equipment (CPM/CPE)


• Clearance of debris


• Existing / surrounding property

2. Section 2 - Third Parties Liabilities (TPL)

The matters included in the risks guaranteed in CAR Insurance:

• Burning, explosion, thunder pouncing movement, downfall of plane


• Floods, pond, rain, and damage by other water


• Hurricane, ground slide, earthquake, volcano eruption, tsunami


• Theft, unloading


• Incompetence, carelessness, mistake of worker, the mistake having the character of humanity (human error)

The risks is not guaranteed in CAR Insurance divided become 2 kinds of:
1. Exemption of Public

• war, riot, and a kind of that


• Nuclear reaction


• Action intend


• Stop of work either partly or entirely

2. Special Exemption
a. Section I – Material Damage

• Own Risk


• Penalty and indirect loss


• Faulty design


• Rust and timeworn


• Loss / damage of documents, files and others


• Loss which is just known at the time of stock analyst

b. Section II – Third Parties Liabilities (TPL)

• Own Risk


• Expense arising out to repair well guarantied damage in section I


• Damage in third party effect of vibration or weaken it a prop


• Responsibility to the:
  -Pain or hurt contractor employees / owner of project / other related party
  -Accident of the vehicle where the effect that the permission is use for public street
  -The agreement done without approval of underwriter

The data required in course of closing of CAR Insurance:

• Breakdown value


• Time schedule / bar chart


• Iconography and or cutting picture


• Scope of work and work order


• Soil test


• Used foundation

Erection All Risk (EAR) Insurance

Which become responsibility object in EAR Insurance:

• Power plants


• Chemical industry


• Transport and traffic systems


• Electrical industry


• Textile industry


• Metal working industry


• Wood and paper industry


• Semiconductor plants

The responsibility condition be available in EAR Insurance is 2 kinds of:
1. Section 1 - Material Damage

• Object insured


• Freight


• Custom duties


• Cost of erection

2. Section 2 - Third Parties Liabilities (TPL)

The matters included in the risks guaranteed in EAR Insurance:

• Burning, explosion, thunder pouncing movement, downfall of plane


• Floods, pond, rain, and damage by other water


• Hurricane, ground slide, earthquake, volcano eruption, tsunami


• Theft, unloading


• Incompetence, carelessness, mistake of worker, the mistake having the character of humanity (human error)

The risks is not guaranteed in CAR Insurance divided become 2 kinds of:
1. Exemption of Public

• war, riot, and a kind of that


• Nuclear reaction


• Action intend

2. Special Exemption
a. Section I – Material Damage

• Own Risk


• Indirect loss


• Faulty design


• Wear and tear


• Defective material


• Loss / damage of documents, files and others

b. Section II – Third Parties Liabilities (TPL)

• Own Risk


• Expense arising out to improve well guarantied damage in section I


• Damage in third party effect of vibration or weaken it a prop


• The hurt body the insured employees


• Accident of the vehicle effect that the permission is use for common road

The data required in course of closing of EAR Insurance:

• Breakdown sum insured


• Time schedule / bar chart


• Iconography and or cutting picture


• Work detail / execution


• Condition around the work


• The foundation used (if used)


• Experience of contractor