The field of Engineering Insurance finds its roots in the mid nineteenth century when machines started to change and dictate ways of life as a result of the great Industrial revolution in Britain, Germany and the other European countries.
From the early days of insuring steam boilers, this field has grown in leaps and bounds in direct proportion to development and mechanization. As public and private spending experienced a steady upward movement in infrastructure projects, economic losses to project owners and executors due to fires and other accidents spiraled, thus necessitating risk financing methods like insurance.
Today, UAE is experiencing a massive construction boom with a $350 billion worth of active construction projects. There is a visible surge in Real Estate, touristic projects and infrastructure developments in the country. And these projects, small or big, are faced with various risks which can have large economic impact on governments, financers, owners and contractors. This makes Engineering Insurance a growing sector in the country.
Following are some of the popular insurance products in the Engineering Insurance segment.
Contractor’s All Risk (CAR) / Erection All Risk (EAR) insurance
This policy is taken up by principals or contractors engaged in construction projects. The policy covers accidental loss or damage to the project including damage to tools and equipments used. Additionally, it can cover third party liabilities arising out of the project. It can also cover existing properties of the principal. CAR Insurance covers civil projects whereas EAR covers projects involving installation of plants and machinery. Insurance can be affected for the complete project period that can sometimes extend to many years.
Some of the types of projects that can be covered are Road projects, bridges and flyovers, construction of buildings and villas, extension of buildings, fit out works in existing premises, electromechanical projects, construction of warehouses, installation and extension of plants and machineries etc.
Contractor’s Plant and Machinery Insurance
This insurance protects contractors against financial losses due to accidental loss or damage to their equipments. Equipments can include forklifts, cranes, excavators etc.
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