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Contractor All Risk Policy

Contractor All Risk (CAR) Insurance is a type of insurance policy that provides coverage against loss or damage to a construction project, including materials, machinery, equipment, and third-party liability arising from the construction project.


Compulsion in India

There is no legal requirement for contractors to have a CAR insurance policy in India. However, it is recommended that all contractors have a CAR policy to protect themselves from potential risks and losses.


Benefits of Contractor All Risk Policy

This policy covers all types of civil works ranging from -

Small buildings to massive civil constructions like dams and such structures

It covers both man made and natural perils

The coverage starts from the point the 1st material is delivered at the construction site and continues for the entire duration of the contract for construction


Inclusions in Contractor All Risk Policy

Loss or damage to the construction project, including materials, machinery, and equipment

Third-party liability coverage arising from the construction project

Damage or loss due to natural calamities such as earthquakes, floods, and storms

Accidental damage to property during the construction period

Theft, burglary, and other criminal acts

Customizable coverage as per the project requirements

Testing & Commissioning risk, like failure of Safety Devices, Electrical Leakage, Short Circuit, Insulation failure etc.

Risks of impacts from falling objects, Collision, Failure of cranes or tackles, etc.

Human negligence related risks

Risks related to testing (with specific inclusions in the proposal and to be verified by Underwriters)


List of General Exclusions from Contractor All Risk Policy

Loss or damage due to wear and tear or normal usage

Loss or damage due to wilful negligence or intentional acts

Loss or damage due to war, terrorism, or political unrest

Loss or damage due to faulty design, defective material or casting

Consequential loss/liability of any nature

Loss or damage due to radioactive contamination or nuclear weapons

Damage or loss to property outside the project site

Claim excess per the policy


Cost of Contractor All Risk Policy

The cost of a CAR insurance policy depends on various factors, such as the type of construction project, the coverage required, and the project's location.


Pre-conditions to buy Contractor All Risk Policy

The contractor must provide accurate information about the construction project and its requirements

The contractor must follow all safety regulations and guidelines during the construction process

The contractor must have a valid license to carry out the construction project

The contractor must comply with all legal and statutory requirements


Documents Required for Filing a Claim

  • The contractor must inform the insurance company immediately in case of any loss or damage.
  • The contractor must provide all relevant documents, such as proof of loss, police report, and other supporting documents.
  • The insurance company will investigate to verify the claim and assess the damage.
  • The insurance company will settle the claim after completing the investigation and assessment process.

Compare & Save upto 85%*

On Other Insurance

*Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB.

Payment Methods
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