PROJECT INSURANCE ?

Society Business and Career
1

At the award of Project by Clients to Contractors (Say Construction project) , the Contractor will Insure the Project.

I have only this idea , but donot know how much is Insurance value ratio to the whole Project value.

  1. Work manship
  2. CAR (Cost of All Risks)
  3. PMV (Plant , Mechinary and Vehicle)

are the Broad Insurance Types ,but how these terms apply to Project Insurance ?

Is any one here on GS can give me some hints or guide me to the right links if any.

Thanks

2

Re: PROJECT INSURANCE ?

I did Project finance.....however this is slightly different...but i may be able to relocate some of my stuff....let me check...il get back to you 2mrw...as its 3am here now..please pm me if i forget 2mrw...

thanks

3

Hope you remember today
I have sent PM to you too.

Regards,

4

Re: PROJECT INSURANCE ?

im looking at my old books, however as i said its project finance not insurance...theres hardly anything on insurance...and do you mean broad form insurance coverage.....

maybe you need to read up on insurance law and project finance seems the mix of the two.

what i do know, is that sometimes in fact, most of the time, the insurance on certain projects far outweighs the actual project value...

is it bascially asking you the ratio of insurance to project value?AND HOW this insurnace value would work out?

5

Ya, Exactly the same .

By the way i have gotton some rough idea regarding these terms and how do they work from internet search and some good matterial have come across.

Thanks

6

CAR stands for contractors all risk . The term normally used in CAR/EAR (contractors all risk / erection all risk ) . This is the risk when the plant in being set up. It covers for any damage that might occur during the erection or setting up of a plant. It is a non renewable insurance coverage and has a well defined and estimated period.

PMV - I never heard of but yes PM stands for Plant and Machinery. This is the cover after erection is complete. That is when the plant comes in functioning / operating state. It convers fire risk. Engineering cover is also provided for plant and machinery.

Workmanship I think must be of the workers working in the erection of the said plant. In order to provide them coverage for any physical mishappenings that may occure to them during the actual erection work of the project.

I don't specialise in project insurance but yes I am linked with insurance. Hope I provided some info to you.