The Sum Insured is the completely erected value of the plant and machinery, inclusive of freight, customs duty and cost of erection.

The premium under this policy depends on the type of activity, Sum Insured, duration of the project, period of testing and voluntary excess opted for by the Insured. The premium can be paid in installments, when the policy period is more than 12 months.

The policy is subject to a compulsory excess and Excesses under the policy depend on the type of project to be erected.

● Earthquake
● Act of terrorism
● Escalation
● Limited maintenance cover
● Extended maintenance cover
● Clearance and removal of debris
● Damage to owner’s surrounding property
● Third party Liability
● Cross Liability
● Additional customs duty
● Express freight, holiday and overtime rates of wages
● Contractor’s plant and machinery
● Inland Transit
● Innocent Non Disclosure/Breach of Policy Conditions
● Structures in earthquake zones
● Serial losses
● Manufacturer’s Risk
● Decontamination
● Horizontal Directional Drilling of Pipeline Routes
● Loss or damage due to strike, riot and civil commotion (SRCC)
● Exclusion of Horizontal Directional Drilling
● Suspension of Testing
● Fire Fighting
● Public Authorities Clause
● Work Stoppage
● Test Run Definition for Gas Turbine
● Test Run Definition for Steam Turbine
● Declaration Clause
● Marine off Shore works
● Coffer Dam
When this policy is combined with transit insurance (either inland or overseas) for project materials, the same is referred to as Marine-cum-Erection policy.

Applicability or non applicability of excess will depend on case to case basis.