Engineering

AXA Engineering Insurance

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AXA offers a range of innovative solutions to cater for the construction and erection projects as well as engineering risks such as plant all risks (contractor’s plant and machinery), electronic equipments, and machinery breakdown.

Why AXA Insurance

  • Instant cover

  • Tailored options and extensions

  • Fastest possible claims settlement

  • Present in the region for more than 65 years

We offer five different products

Why Contractors’ All Risk Insurance?

The Contractors’ All Risks (CAR) policy is specially designed to cover for loss or damage to predominantly civil engineering construction projects ranging from small villas to construction of bridges and high rise towers. This is an “All Risks” policy covering various activities of construction (except specific exclusions as mentioned in the policy). This policy can be taken out in the joint names of the contractor and the principal/employer. This policy enables the contractor or employer to comply with the insurance requirements of the contract. Cover can be extended to include constructional plant as part of the Contractors’ All Risks Cover.

Key benefits

  • Tailor-made products for the construction industry
  • Cover on all risks basis
  • Cover for legal liabilities to third parties arising out of the performance of the contract
  • Specialised team of engineers available to help in the implementation of risk management measures
  • Dedicated team of claims specialists
  • Our presence across the length and breadth of the GCC (except Kuwait)
  • It is also possible to have an annual policy issued for all work undertaken by a contractor

Product Details

Contractors’ All Risks Policy (section 1) covers the risk of accidental physical loss or damage in respect of the contract works during the execution of a civil project. CAR insurance provides an ‘All Risk ‘cover.

All perils are covered unless specifically excluded.

Section 2 of the policy covers legal liability of the insured contractor as a result of bodily injury or property damage belonging to a third party and arising out of the contract works.

Period of Insurance: the cover starts on the unloading of the first consignment at site or commencement of work and continues to be in force as stated in the policy. The policy ceases when the project is handed over to the principal or put into service.

Sum Insured: this should represent the full contract project value (inclusive of transport charges, customs duties, etc.) and supplemented as necessary by the value of constructional plant. On request the policy can be extended to cover various optional extensions such as: Transit to or from the site (excluding sea or air transit), Maintenance cover, Removal of debris costs, Architects, Surveyors Fees for the reinstatement of damage, etc.

Why Erection All Risk Insurance?

The Erection All Risks policy is specially designed to cover loss or damage to projects that involve erection/installation of plant, machinery and equipment ranging from erection of a single machine to a large power plant. This is an "All Risk" policy covering various activities of erection/installation, testing and commissioning of plant and equipments (except specific exclusions as mentioned in the policy). It protects a contractor or employer against physical loss or damage to the contract works, construction plant and equipment or machinery. It also includes cover for damage to property of third parties and bodily damage to third parties. The policy can be taken out in the joint names of the contractor and the principal/employer. This policy enables the contractor or principal/employer to comply with the insurance requirements of the contract.

Key benefits

  • Cover can be designed according to the specific needs of the project
  • Cover legal liabilities to third parties arising out of the performance of the contract
  • Optional extensions can be tailored to suit individual customer's needs
  • Specialised team of engineers available to help in the implementation of risk management measures
  • Dedicated team of claims specialists
  • Our presence across the length and breadth of the GCC (except Kuwait). It is also possible to have an annual policy issued for all work undertaken by a contractor

Product details

This policy (section 1) covers risks associated with storage, assembly/erection and testing of plant and machinery. EAR insurance provides comprehensive cover, all perils are covered unless specifically excluded.

Section 2 of the policy covers legal liability of the insured contractor as a result of bodily injury or property damage belonging to a third party and arising out of the erection works.

Sum Insured: should represent the completely erected value of the plant and machinery inclusive of freight, customs duties and cost of erection.

 

Period of Insurance: the cover starts on the unloading of the first consignment at site or commencement of work and continues to be in force as stated in the policy including the test run period. The policy ceases when the project is handed over to the principal or put into service. On request the policy can be extended to cover various optional extensions such as: transit to or from the site (excluding sea or air transit), testing and commissioning, maintenance cover, removal of debris costs, architects, surveyors fees for the reinstatement of damage, damage to surrounding property, etc.

Why Electronic Equipment Insurance?

This is a specially designed policy, which covers accidental loss or damage to electronic equipment such as the following:

  • Electronic data processing machine
  • Telecommunication equipment
  • Transmitting and receiving installations(including radio, TV, cinema sound reproduction and studio equipment)
  • Material testing and research equipment
  • Electro-medical installations
  • Signal and transmitting units

Key Benefits

  • Specifically designed for electronic equipments with additional options to cover external data media and increased costs of working
  • Suitable irrespective of trade and size of operations
  • Multi-locations can be covered under one policy
  • Risk management advice and risk management consultancy services
  • Reinstatement of sum insured following insured damage

Product Details

 

Scope of cover

This cover is arranged in three sections.

Section 1

Material damage of the equipment on a comprehensive basis including both accidental damage and electrical and mechanical breakdown

Section 2

External Data Media, following damage to EDP system and loss indemnifiable under section 1, the cost incurred in restoring the data

Section 3

Increased cost of working is the additional expense incurred to restart the operation following a material damage loss.

How to select sum insured?

Section 1

The sum insured shall be equal to the cost of replacement of the insured items by new and of the same kind and capacity which will include freight dues customs duties and erection cost

Section 2
The sum insured shall be equal to the cost required for restoring the insured external data media

Section 3
The sum insured shall be equal to the amount which the insured would have to pay as additional expenditure for 12 months use of substitute EDP equipment . 

 

Why Machinery Breakdown Insurance?

Machinery insurance is important for anyone operating technical plant or machinery, whether they are large industrial enterprises or small firms. Unexpected damage to machinery and equipment can pose a threat to a company’s very existence. Machinery Insurance covers diverse spectrum of machines and equipment in commercial and production facilities, such as power generating units (boilers, turbines, generators, gas turbines, etc), power distribution plant (transformers, high- and low-voltage switchgear, etc) production machinery, plant and equipment (electric motors, compressors, pumps, gear boxes vessels, reactors, etc). Machinery Insurance is a supplementary cover for the machinery/equipment which is otherwise required to be insured along with building, stock etc. on the premises under the standard fire/property policy.

Key Benefits

  • Comprehensive cover for operational machinery whilst working or at rest and/or during overhauling, relocation within the premises
  • Specially designed policy to cover accidental damage to plants, equipments and machineries for operational failure, unforeseen conditions, operational negligence, etc.
  • Suitable irrespective of trade and size of operations
  • Option to cover machinery loss of profits along with machinery breakdown cover can be adapted to the specific features of a risk by means of a series of other optional extensions
  • Reinstatement of sum insured is done following loss or damage and a pro-rata premium is deducted from the payable amount

Product Details

Machinery insurance is “accident” insurance for machinery and provides protection against any sudden and unforeseen physical loss or damage that limits the operability of the insured item and necessitates its repair or replacement.

Such accidents can be caused by entry of foreign particle, momentary overloading, abnormal vibration, defective lubrication, stress, self heating, centrifugal forces, short circuiting, arcing, etc. 
Premium rates are calculated separately for each type of machine. The rates are applied to the machines’ value when new (replacement value). The sum insured should always be the new replacement value of the insured machinery. This includes the value of the new item, customs duties, transportation and installation costs. 
The current market value is not a suitable value, as it constantly changes, and different valuation criteria and methods are possible. Upon request the policy can be extended to cover various optional extensions namely claim preparation costs, debris removal expenses, expediting expenses, etc .

Why Contractor's Plant & Machinery Insurance?

Contractor's Plant & Machinery insurance is useful for contractors who have equipmentowned / hired / leased employed on construction sites. This policy will cover those machineries and or equipment against all risks except mechanical and electrical derangement while at work orat rest in designated locations within given territory or while in transit between site to site, site to yard, yard to yard and vice versa.

Key Benefits

  • Cover for plant and equipments whilst working or at rest and/or during overhauling, relocation, re-erection anywhere within the given territory
  • Specially designed policy to cover accidental damage to plant, equipments and machineries for all accidental / fortuitous eventualities including negligence except mechanical / electrical failures (see under our Electronic Equipment section for a dedicated cover)
  • Suitable irrespective of trade and size of operations
  • Optional  extensions like SRCC, NAT CAT perils, Claims preparation costs, 72 hours clause, On account payment, Errors & omissions, Theft by hirer, Waiver of subrogation, Loss payee

Product Details

Contractors’ Plant All Risk Insurance is “accident” insurance for construction equipment / machineries and provides protection against any sudden and unforeseen physical loss or damage (except mechanical / electrical derangement and other perils excluded specifically) that limits the operability of the insured item and necessitates its repair or replacement. Premium rates are calculated separately for each type of machinery and equipment.
The rates are applied to the Equipment's SI (deemed to be current new replacement value). This includes the value of the new item, customs duties, transportation and installation costs. 
On request the policy can be extended to cover various optional extensions such as: claim preparation costs, debris removal expenses, expediting expenses, SRCC, NATCAT, 72 hours clause, On account payment, Errors & omissions, Theft by hirer, Waiver of subrogation, Loss payee etc.

Policy is subject to standard exclusions such as war or terrorism, nuclear or radioactive contamination, willful misconduct, gross negligence, sanction & embargo.