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Ethiopian Insurance Corporation: EAR Overview

The document outlines the Ethiopian Insurance Corporation's Erection All Risks (EAR) insurance, which provides coverage during the construction and erection of machinery and steel structures. It details the differences between Construction All Risks (CAR) and EAR, the scope of coverage, potential hazards, and policy structure including exclusions and conditions. Additionally, it highlights the importance of insurance for unforeseen damages and third-party liabilities during construction activities.

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yobs9589
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3 views37 pages

Ethiopian Insurance Corporation: EAR Overview

The document outlines the Ethiopian Insurance Corporation's Erection All Risks (EAR) insurance, which provides coverage during the construction and erection of machinery and steel structures. It details the differences between Construction All Risks (CAR) and EAR, the scope of coverage, potential hazards, and policy structure including exclusions and conditions. Additionally, it highlights the importance of insurance for unforeseen damages and third-party liabilities during construction activities.

Uploaded by

yobs9589
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

EIC

Ethiopian Insurance
Corporation
Your Reliable Partner ! 1
1
EIC

Your Reliable Partner ! 2


EIC

E Erection

A All

R Risks

Your Reliable Partner ! 3


EIC
Topics to be
covered

Your Reliable Partner ! 4


EIC
Intention of EAR
Insurance
Provide broad insurance
coverage
during construction / erection
of machinery, plant and steel
structures
involving little civil engineering
work
Your Reliable Partner ! 5
EIC
Difference
s
CAR EAR
Civil eng. Mainly steel, metal
projects/units Machinery/equipment
mainly constructed manufactured in
on site factory and assembled
Material mainly on site
concrete, stone,
sand
Your Reliable Partner ! 6
EIC
Contn’
CAR EAR
Manufacturer`s risk Manufacturer`s risk
with the contractor with the producer
 (low) concentration (manufacturer)
of value High concentration of
 (no) test value
test important, high
risk
Your Reliable Partner ! 7
EIC
100% 20% 50% 50% 20% 100%
EAR/CAR CAR EAR EAR CAR CAR EAR
Mixed 80% 50% 50% 80%
Projects CAR CAR EAR EAR

CAR CAR CAR/EAR


EAR EAR
Rate Rate Combined Rate Rate
Rate
CAR Policy EAR Policy

Your Reliable Partner ! 8


EIC
Examples of EAR
Projects

Your Reliable Partner ! 9


EIC
Scope of EAR cover
any unforeseen and sudden physical
loss or damage resulting from insured
perils (Section I), except those
specifically excluded

liability to Third Parties for bodily injury


and property damage resulting from
erection/construction activities on the site
(Section II Your Reliable Partner ! 10
EIC

Value at
risk

Your Reliable Partner ! 11


EIC

Your Reliable Partner ! 12


EIC
Hazards
Natural
forces
Earthquake
Inundation
Flood
Storm
Typhoon, Hurricane, Cyclone
Landslide, Subsidence, Rockslide

Your Reliable Partner ! 13


EIC
Hazards
Exposure resulting from human
activities at site
Lack of skill / experience
Theft and burglary
Negligence
Material handling

Your Reliable Partner ! 14


EIC
Operational Hazards
Excessive pressure (physical explosion)
Vacuum (implosion)
Temperature (overheating, embrittlement at low
temp)
Excessive voltage
Short circuit
Centrifugal forces

Your Reliable Partner ! 15


EIC
Operational Hazards
Cont.
 Out of control chemical reaction (pressure,
temp.)
Failure of controlling/monitoring equipment
Material failure
Faulty operation
Fire

Your Reliable Partner ! 16


EIC

Your Reliable Partner ! 17


EIC

Policy structure
• General exclusions
• Policy period
• General conditions
• Section I - Material damage
-Special exclusions
-Sum insured
-Basis of loss settlement
• Section II - Third party liability
• Section III - ALoP

Your Reliable Partner ! 18


EIC
General exclusions
War, invasion, SRCC, etc.

Nuclear reaction, nuclear radiation or


radioactive contamination

Willful act or gross negligence

Cessation of work

Your Reliable Partner ! 19


EIC
General conditions
Definitions
Obligations of the insured
Insurer`s rights
Arbitration

Your Reliable Partner ! 20


EIC
Section I - Material Damage
(MD)
Special exclusions to Section I

Deductibles
Consequential loss (ALOP), penalties, losses due to
delay, lack of performance, loss of contract
Faulty design, defective material or casting, bad
workmanship other than faults in erection

Your Reliable Partner ! 21


EIC

Special exclusions to Section I (cont.)

Wear and tear, corrosion, oxidation, incrustation

Files, drawings, accounts, currency, stamps etc.

Loss discovered at the time of an inventory

Your Reliable Partner ! 22


EIC

Period of Cover
War

Your Reliable Partner ! 23


EIC
Major Material Damage Properties
Covered
 The Contract Works
Construction Plant and Machinery (CPM):
Construction Materials and Items for
Incorporation
Temporary Structures / Works

Your Reliable Partner ! 24


EIC
Contn’
Existing Properties
Surrounding Property
Debris Removal

Your Reliable Partner ! 25


EIC

Section I : Material Damage (MD)


 Exclusions
 Loss settelment

Your Reliable Partner ! 26


EIC

Exclusions-(MD)
 Exclusions

Your Reliable Partner ! 27


EIC

Loss setellment-(MD)

Your Reliable Partner ! 28


EIC

Section II : Third Party Liability (TPL)


 Exclusions (TPL)
 Loss settelment
(TPL)

Your Reliable Partner ! 29


EIC

Exclusions (TPL)
cnn

Your Reliable Partner ! 30


EIC

Loss setellment (TPL)


cnn

Your Reliable Partner ! 31


EIC

General Conditions
cnn

Your Reliable Partner ! 32


EIC

Endorsements
cnn

Your Reliable Partner ! 33


EIC

Loss setellment (TPL)


cnn

Your Reliable Partner ! 34


EIC

Your Reliable Partner ! 35


EIC Period of Insurance -
Maintenance Period

Your Reliable Partner ! 36


EIC

Thank You

37

Your Reliable Partner ! 37

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