Engineering Insurance

In India, CAR is the “Bible” for civil projects (buildings, roads, dams). It covers the project’s physical assets and third-party liability. Crucial Tip: In India, for a policy to be called “CAR,” the civil work component must be more than 50% of the total contract value.

If you are setting up a factory, power plant, or even a simple elevator where the machinery cost is more than 50% of the project, you need EAR. It covers the risk from the moment the machinery is unloaded at the site until it is successfully commissioned (tested

No. This is a common confusion in India. Fire is covered under your standard “Fire & Special Perils” policy. MBD specifically covers internal mechanical or electrical failures—like a motor burning out or a gear breaking—which fire insurance excludes.

No. In India, EEI is used for all “low-voltage” systems. This includes medical equipment (MRI/X-rays), telecom towers, UPS systems, and even server rooms. It is an “All Risk” cover, meaning it even covers damage caused by “human error” or “lack of skill.”

Engineering projects in India are most vulnerable during the “trial run.” This cover protects the machinery if it explodes or fails during the initial testing phase before the project is officially handed over to the owner.

This is a vital extension for Indian developers. If a fire at the construction site delays the project completion by 6 months, you lose 6 months of rental or business income. ALOP pays for that lost income so you can keep paying your bank EMIs.

Yes, under the Contractor’s Plant & Machinery (CPM) policy. Unlike a truck (which needs motor insurance), construction equipment like cranes, loaders, and pavers need a CPM policy to cover them while they are working on-site.

In most Indian construction contracts, the contractor is responsible for defects for 12–24 months after finishing the work. This extension ensures the insurance covers any damage that happens when the contractor returns to the site to fix those defects.