Contractor
All Risk Insurance (CAR),
Erection
All Risk Insurance (EAR)
Public
Liability Insurance (PL)
Workmens
Compensation Insurance (WC)
Foreign
Workers Compensation Scheme Insurance
Construction
& Engineering Insurance
Construction
Insurance
Arranged
by
ACPG
Management Sdn Bhd (Insurance Biz since year 1989)
+603-92863323,
+6011-12239838
Construction
Insurances Explained - Malaysia Contractors' All Risks (CAR) Insurance and
Malaysia Erection All Risk Insurance (EAR)
What is
'Contractors' All Risks (CAR) Insurance and Erection All Risk Insurance (EAR) ?
Contractors'
All Risks (CAR),Erection All Risk Insurance (EAR) insurance is an insurance
policy that provides coverage for both damage to a property and third-party
injury or damage claims. Contractors' all risk (CAR) ,Erection All Risk
Insurance (EAR) insurance policies are considered non-standard insurance
policies.
Construction
projects typically involve two primary types of risk: damage to the property,
and third-party claims of injury or damage.
Damage
to the property could include the structure not being properly constructed, or
receiving damage during a renovation. Third-parties, including subcontractors,
may become injured while working at the construction site.
Contractors'
all risk (CAR) insurance, Erection All Risk Insurance (EAR) bridges these two
risks into a common policy, and helps cover the gap between exclusions that
would otherwise exist when using separate policies.
BREAKING
DOWN 'Contractors' All Risks (CAR) Insurance, Erection All Risk Insurance (EAR)
CAR and
EAR insurance is typically taken out jointly by both the contractor and the
employer, with other parties such as financing companies having the option of
being named to the policy. Because multiple parties are included in the policy
they each retain the right to file a claim against the insurer, although all
parties also have the duty of informing the insurer of any injuries and damages
that may result in a claim.
The goal
of using a CAR & EAR insurance policy is to ensure that all parties are
covered on a project, regardless of the type of damage to the property or who
caused the damage. Insurers who underwrite this type of policy lose the right
to subrogation, meaning that if it pays out funds to one party in the contract
then it cannot seek to recover those funds from another party in the contract.
For
example, if the owner of a large building and the contractor working on the
building are on the same CAR & EAR policy, any costs of damage to the
building caused by the contractor can be recovered by the building owner when a
claim is filed. The insurer, however, cannot seek to recover funds from the
contractor.
Risks
often covered under a CAR & EAR policy include fire, flood, wind,
earthquakes, water damage and mold, construction faults, and negligence. They
typically do not cover normal wear and tear, willful negligence, or poor
workmanship.
Malaysia
Contractors' All Risks (CAR) Insurance, Malaysia Erection All Risk Insurance
(EAR) Definition
Construction
Insurances Explained – Contractors’ All Risks Insurance, Erection All Risk
Insurance (EAR)
Contractors’
All Risks Insurance (CAR), Erection All Risk Insurance (EAR)
There
are several terms used in the insurance world that mean different things to
different people and one of these is Contractors’ all risks (CAR) insurance and
Erection All Risk Insurance (EAR).
The term
is sometimes used to refer to both the material damage and liability covers
required by a Contractor.
Most
insurance practitioners would regard CAR and EAR as referring only to the
material damage cover on the contract works unless the real intention was
obvious from the rest of the text.
Anyone
using the term, whether verbally or in writing, should make their intention
clear, so as to avoid any ambiguity in interpretation.
CAR and
EAR covers what is stated within the actual insurance policy for which the
premium is paid. The Employer has the opportunity to specify his requirements
as to what is to be included within the CAR and EAR within the contract if the
Contractor is responsible for the provision of such insurance alternatively the
Employer specifies the cover within the policy he takes out where the
Contractor is not obligated to provide insurance under the Contract.
A CAR
& EAR policy provides insurance coverage when the Works being constructed,
as defined in the Contract, are damaged by an insured peril and require
replacing and/or repairing. It is normal for the Contract to stipulate who will
provide this cover.
If it
were the Contractor then it would be normal for them to take out a specific
policy to cover the project or alternatively if available to them add it to a
policy covering all their contracts up to a specific limit. In the event the
responsibility should fall upon the Employer then cover would normally be under
a policy arranged specifically for that project.
When
arranging the CAR and EAR coverage for a project it is essential that care be
taken in identifying the correct Contract Value, Construction Period, Defects
Liability Period and Description of the Works.
The
policy will normally cover any physical loss or damage unless the cause is
specifically excluded, thus the term ‘All-Risks’ whilst commonly used, is to
some extent, misleading. Nevertheless the cover is very wide and embraces
protection against fire, aircraft, explosion, earthquake, riot, malicious
damage, storm, flood, burst pipes, impact and other accidental damage.
However,
CAR and EAR policies can be issued covering loss or damage by particular and
specified perils, e.g. fire, flood, storm. In both cases the policy should
generally be extended to provide protection in respect of damage by terrorists
where such is commercially available.
In
addition material damage to the Works or the machinery being erected CAR and
EAR generally includes coverage for third-party liability for bodily injury and
property damage to the surrounding properties.
The
policy can in some circumstances be extended to include consequential losses or
losses due to delay in start-up following loss or damage under material damage
section.
This
cover is also called advanced loss of profit.
Either
way it is imperative that the parties fully understand what exclusions apply or
which perils are listed to ensure that the cover gives sufficient protection to
the Employer and the Contractor.
The Sum
to be insured under CAR and EAR should be adequately calculated and must
include at least the Contract Value, value of Contractors’ plant and machinery,
value of Employers existing property, estimated cost of debris removal, value
of all temporary facilities, tax and an allowance for inflation.
In
addition it is wise to make sure that on site as well as offsite storage
facilities are included under the policy together with the value of any free
issue materials where the Employer transfers the risk to the Contractor under
the Contract.
The
policy should always be in the joint names of the Employer and Contractor
although the Contract may stipulate that the Bank or Financing institutions are
also named in the policy, depending upon their specific requirements for
providing project financing.
Joint
names insurance is where two or more parties (for example the Employer and the
Contractor) are jointly insured under a single policy.
Each
party has legal rights under the policy and can claim against the insurer, but
the insurer has no right of subrogation against the other insured party.
It is
important to remember that each party is bound by the normal rules, and to
avoid any difficulties each should individually comply with the duties of
disclosure and notification.
Having
an interest noted on a policy is very different and is rarely an acceptable
substitute for a joint names policy.
A
third-party is not a party to the contract of insurance, and thus cannot claim
against the insurer. Similarly, it does not prevent the insurer from exercising
rights of subrogation against the third-party.
PAM,
IEM, FIDIC and generally most standard forms of contract contain fairly
detailed provisions for property and liability insurance. Generic amendments to
these insurance provisions are not normally essential, however, discreet
changes may be required depending on the nature of a specific project (for
example, amending the definition of joint names insurance policy to include the
project funders, or to reconcile the standard provisions with a project
insurance policy taken out by the Employer).
All CAR
adn EAR policies will have an excess that will be deducted from any claim
settlement. On occasions insurers will apply more than one excess under a
policy for specific losses where a certain risk warrants such and additional
excess being imposed.
In
addition generally most policies include exclusions for which extensions of CAR
and EAR coverage maybe granted or included within the CAR and EAE coverage of
the CAR and EAR policy may be extended to cover such as:
(A)
professional fees;
(B)
automatic reinstatement of the policy limit following a loss;
(C)
debris removal;
(D) free
issue materials;
(E)
discovery of munitions of war;
(F)
inflation clause;
(G)
plans and documents;
(H)
others.
Individual
insurance providers specialising in this class of insurance will also have
their own list of extensions that they will negotiate with insurers. As an
example you may refer to the example provided which is so provided as an
example and these will vary depending upon the general insurance market at the
time the CAR and EAR insurance is taken out by the insuring party.
In
addition the parties need to consider if the CAR and EAR policy is to cover the
respective party’s to the Contract for:
Additional
cost of construction of un-built works in the event of
(A)
Inflationary Costs
(B) Out
of sequence working
(C)
Defective design, materials and workmanship
(D)
Extended defective condition exclusion
(E)
Limited defective condition exclusion
(F)
Design improvement exclusion
It is
understood that various legal challenges are currently on-going as to the
validity of these clauses and therefore whilst the description of coverage
above may not reflect the current or future legal interpretation. As with all
contractual documentation it is recommended that all parties seek professional
advice in respect of these risks.
It
should be noted here that if the Contractor arranges CAR and EAR cover it may
restrict or even remove the ability of the Employer to purchase any
consequential loss coverage.
Construction
Insurances Explained – Public Liability Insurance
Malaysia
Public Liability Insurance
Public
Liability Insurance
Typical
public liability insurance will provide indemnity in respect of liability at
law for damages arising from accidental injury to third parties (not employees)
or accidental damage to third-party property arising in connection with the
project. It may also cover liability for damages arising out of any nuisance or
trespass committed by the insured and any rights (such as a right of way) with
which the insured may accidentally interfere in the course of the development.
Other elements of cover normally provided include defence of claims costs, the
use of plant on the site and legal defence costs in respect of prosecutions
brought under the Health and Safety legislation.
Many
insurance providers now exclude claims arising from sources they regard as
particularly hazardous, such as terrorism, asbestos, gradual pollution, mould,
e-commerce transactions and, potentially, financial loss where there has been
no ‘injury or damage’ as defined in the policy. Insurers may restrict their
liability for particular risks by imposing inner limits much smaller than the
overall policy limit.
Public
liability insurance coverage may be arranged on an annual basis with a specific
limit being the maximum amount payable in the event of any one claim or series
of claims arising from one occurrence. It is normal for this limit to apply in
respect of any one claim but some limits do apply to all claims in the period
of insurance.
There
may be a limit on any one claim and then a separate aggregate limit. Sometimes
there are elements of cover that insurers may be particularly concerned about,
e.g. sudden and accidental pollution may be subject to lower limits of
liability and/or separate aggregates.
Whatever
type is issued, it is the insured party or parties that decide on the level of
cover to be purchased dependent upon the risk exposure arising from the work
being undertaken. When deciding upon the limits to be purchased it is best not
to rely on any figure requested within a contract document, as this is normally
the minimum amount required.
The
policy will normally be subject to an excess that will be deducted from the
total amount claimed and may apply only in respect of claims for property
damage or in respect of all claims.
Every
party on site with a potential liability to the public will require an
insurance policy. Additional responsibilities for each party will also be set
out in the contract. It is traditional and still common for the Contractor to
arrange a cover on behalf of the Employer.
However,
it has to be asked if this is in the best interests of everyone, whether the
Employer who may find he has only nominal cover or a claimant who may find they
are passed from one insurer to another if there are different policies in
different names. One option is to effect a project policy arranged by the
Employer.
The
parties protected by the policy will vary according to the Employer’s
requirements and the nature of the contract forms being adopted. The indemnity
can apply to the Employer only or together with the Contractor, his
subcontractors and tradesmen. In addition there may be freeholders, superior
landlords, financiers plus professional consultants and suppliers (on site
exposures only) to be added to the list of insured. The policy should set out
the names of all insured and specify in which policy covers they have an
insurable interest.
Public
liability insurance is not a cheap insurance and if one party does arrange
cover in two or more names the cost of this and the potential savings to the
other names should to be reflected in tender prices.
It is
important for the Employer to decide responsibilities for placing public
liability insurance before contracts are signed, rather than just follow the
provisions of the basic contract conditions.
Whoever
is making the decision as to who must arrange the cover must consider all those
who may need to be protected.
Malaysia
Workmens Compensation Insurance
Workmen
Compensation Insurance
Innovative
and cost-effective solutions for your business
No
matter what type of business your company is involved in or how much care your
employees take in the workplace, accidents can still happen.
ACPG
Insurers is a leading provider of financial protection against liability for
workplace injuries.
Our
international experience enables us to provide innovative and cost-effective
solutions to our clients. Benefits for our clients include:
fully
integrated approach to claims management ability to remain nimble and flexible
to the emerging needs of customers online solutions that provide you with the
tools to act faster
self-insurance
services.
ACPG
Insurers Workmen’s Compensation Insurance provides cover against all sums for
which the Insured shall be liable to pay in compensation to any employee for
personal injury sustained either by accident or disease arising out of and in
the course of their employment under Common Law. Or under the following
legislation (including all subsequent amendments to these enactments and
ordinances):
LAWS
Workmen's
Compensation Ordinance 1952
Workmen's
Compensation (Amendment) Ordinance 1956
Workmen's
Compensation (Amendment) Ordinance 1976
Modification
of Laws (Workmen's Compensation) Extension and Modification Ordinance 1981
Employers’
Liability
The
Employers’ Liability Insurance policy provides cover for an employer against
liability for the damages and claimant’s costs and expenses in respect of
bodily injury or disease sustained by any person under a contract of service or
apprenticeship.
Foreign
Workers Compensation Scheme Insurance
The
benefit of this cover is that it insures death and bodily injury as a result of
work place accident or occupational disease arising out of and in the course of
employment, inclusive of journey to and from work such as:
Death
Permanent
disablement
Permanent
total disablement
Permanent
partial disablement
Temporary
total disablement
Medical
expenses
Repatriation
expenses
Personal
accident
Malaysia
Construction & Engineering Insurance
Essential
cover against sudden or unforeseen losses
Engineering
and construction projects often involve huge capital investments and therefore
required specialised risk mitigation.
ACPG
Insurers Construction & Engineering Insurance will help protect your
investments against loss or damage to your engineering or construction
projects. We have the specialist expertise to provide comprehensive financial
protection against many areas of risks, including work in progress or material
damage of your project and also liability from third-party claims resulting
from engineering and construction works.
Our
flexible approach allows policies to be tailored to your specific needs. Our
competitive terms appeal to customers of all sizes, from owner builders to
principals of major civil engineering projects.
ACPG
Insurers provides cover for:
Contractors’
All Risks
Civil
Engineering Completed Risks
Erection
All Risks
Boiler
and pressure vessel
Electronic
equipment
Machinery
breakdown
Machinery
breakdown loss of profit
Storage
tank
Special
perils
Contractor
All Risk Insurance in Malaysia (CAR)
AIG
Malaysia Contractor All Risk Insurance
Allianz
Malaysia Contractor All Risk Insurance
Ace
Jerneh Malaysia Contractor All Risk Insurance
AXA
Malaysia Contractor All Risk Insurance
AMGeneral
Malaysia Contractor All Risk Insurance
Berjaya
Sampo Malaysia Contractor All Risk Insurance
CHUBB
Malaysia Contractor All Risk Insurance
Danajamin
Malaysia Contractor All Risk Insurance
Etiqa
Malaysia Contractor All Risk Insurance
Kurnia
Malaysia Contractor All Risk Insurance
Liberty
Malaysia Contractor All Risk Insurance
Lonpac
Malaysia Contractor All Risk Insurance
MSIG
Malaysia Contractor All Risk Insurance
MPI
Malaysia Contractor All Risk Insurance
P&O
Malaysia Contractor All Risk Insurance
OAC
Malaysia Contractor All Risk Insurance
RHB
Malaysia Contractor All Risk Insurance
QBE
Malaysia Contractor All Risk Insurance
Takaful
Malaysia Contractor All Risk Insurance
Tokio
Marine Malaysia Contractor All Risk Insurance
The
Pacific Malaysia Contractor All Risk Insurance
Tune
Malaysia Contractor All Risk Insurance
Zurich
Malaysia Contractor All Risk Insurance
Erection
All Risk Insurance in Malaysia (EAR)
AIG
Malaysia Erection All Risk Insurance
Allianz
Malaysia Erection All Risk Insurance
Ace
Jerneh Malaysia Erection All Risk Insurance
AXA
Malaysia Erection All Risk Insurance
AMGeneral
Malaysia Erection All Risk Insurance
Berjaya
Sampo Malaysia Erection All Risk Insurance
CHUBB
Malaysia Erection All Risk Insurance
Danajamin
Malaysia Erection All Risk Insurance
Etiqa
Malaysia Erection All Risk Insurance
Kurnia
Malaysia Erection All Risk Insurance
Liberty
Malaysia Erection All Risk Insurance
Lonpac
Malaysia Erection All Risk Insurance
MSIG
Malaysia Erection All Risk Insurance
MPI
Malaysia Erection All Risk Insurance
P&O
Malaysia Erection All Risk Insurance
OAC
Malaysia Erection All Risk Insurance
RHB
Malaysia Erection All Risk Insurance
QBE
Malaysia Erection All Risk Insurance
Takaful
Malaysia Erection All Risk Insurance
Tokio
Marine Malaysia Erection All Risk Insurance
The
Pacific Malaysia Erection All Risk Insurance
Tune
Malaysia Erection All Risk Insurance
Zurich
Malaysia Erection All Risk Insurance
Public
Liability Insurance in Malaysia (PL)
AIG
Malaysia Public liability Insurance
Allianz
Malaysia Public liability Insurance
Ace
Jerneh Malaysia Public liability Insurance
AXA
Malaysia Public liability Insurance
AMGeneral
Malaysia Public liability Insurance
Berjaya
Sampo Malaysia Public liability Insurance
CHUBB
Malaysia Public liability Insurance
Danajamin
Malaysia Public liability Insurance
Etiqa
Malaysia Public liability Insurance
Kurnia
Malaysia Public liability Insurance
Liberty
Malaysia Public liability Insurance
Lonpac
Malaysia Public liability Insurance
MSIG
Malaysia Public liability Insurance
MPI
Malaysia Public liability Insurance
P&O
Malaysia Public liability Insurance
OAC
Malaysia Public liability Insurance
RHB
Malaysia Public liability Insurance
QBE
Malaysia Public liability Insurance
Takaful
Malaysia Public liability Insurance
Tokio
Marine Malaysia Public liability Insurance
The
Pacific Malaysia Public liability Insurance
Tune
Malaysia Public liability Insurance
Zurich
Malaysia Public liability Insurance
Workmens
Compensation Insurance in Malaysia (WC)
AIG
Malaysia Workmens Compensation Insurance
Allianz
Malaysia Workmens Compensation Insurance
Ace
Jerneh Malaysia Workmens Compensation Insurance
AXA
Malaysia Workmens Compensation Insurance
AMGeneral
Malaysia Workmens Compensation Insurance
Berjaya
Sampo Malaysia Workmens Compensation Insurance
CHUBB
Malaysia Workmens Compensation Insurance
Danajamin
Malaysia Workmens Compensation Insurance
Etiqa
Malaysia Workmens Compensation Insurance
Kurnia
Malaysia Workmens Compensation Insurance
Liberty
Malaysia Workmens Compensation Insurance
Lonpac
Malaysia Workmens Compensation Insurance
MSIG
Malaysia Workmens Compensation Insurance
MPI
Malaysia Workmens Compensation Insurance
P&O
Malaysia Workmens Compensation Insurance
OAC
Malaysia Workmens Compensation Insurance
RHB
Malaysia Workmens Compensation Insurance
QBE
Malaysia Workmens Compensation Insurance
Takaful
Malaysia Workmens Compensation Insurance
Tokio
Marine Malaysia Workmens Compensation Insurance
The
Pacific Malaysia Workmens Compensation Insurance
Tune
Malaysia Workmens Compensation Insurance
Zurich
Malaysia Workmens Compensation Insurance
Construction
& Engineering Insurance in Malaysia
AIG
Malaysia Construction & Engineering Insurance
Allianz
Malaysia Construction & Engineering Insurance
Ace
Jerneh Malaysia Construction & Engineering Insurance
AXA
Malaysia Construction & Engineering Insurance
AMGeneral
Malaysia Construction & Engineering Insurance
Berjaya
Sampo Malaysia Construction & Engineering Insurance
CHUBB
Malaysia Construction & Engineering Insurance
Danajamin
Malaysia Construction & Engineering Insurance
Etiqa
Malaysia Construction & Engineering Insurance
Kurnia
Malaysia Construction & Engineering Insurance
Liberty
Malaysia Construction & Engineering Insurance
Lonpac
Malaysia Construction & Engineering Insurance
MSIG
Malaysia Construction & Engineering Insurance
MPI
Malaysia Construction & Engineering Insurance
P&O
Malaysia Construction & Engineering Insurance
OAC
Malaysia Construction & Engineering Insurance
RHB
Malaysia Construction & Engineering Insurance
QBE
Malaysia Construction & Engineering Insurance
Takaful
Malaysia Construction & Engineering Insurance
Tokio
Marine Malaysia Construction & Engineering Insurance
The
Pacific Malaysia Construction & Engineering Insurance
Tune
Malaysia Construction & Engineering Insurance
Zurich
Malaysia Construction & Engineering Insurance
Construction
Insurance in Malaysia
AIG
Malaysia Construction Insurance
Allianz
Malaysia Construction Insurance
Ace
Jerneh Malaysia Construction Insurance
AXA
Malaysia Construction Insurance
AMGeneral
Malaysia Construction Insurance
Berjaya
Sampo Malaysia Construction Insurance
CHUBB
Malaysia Construction Insurance
Danajamin
Malaysia Construction Insurance
Etiqa
Malaysia Construction Insurance
Kurnia
Malaysia Construction Insurance
Liberty
Malaysia Construction Insurance
Lonpac
Malaysia Construction Insurance
MSIG
Malaysia Construction Insurance
MPI
Malaysia Construction Insurance
P&O
Malaysia Construction Insurance
OAC
Malaysia Construction Insurance
RHB
Malaysia Construction Insurance
QBE
Malaysia Construction Insurance
Takaful
Malaysia Construction Insurance
Tokio
Marine Malaysia Construction Insurance
The
Pacific Malaysia Construction Insurance
Tune
Malaysia Construction Insurance
Zurich
Malaysia Construction Insurance
Foreign
Worker Insurance in Malaysia
AIG
Malaysia Foreign worker Insurance
Allianz
Malaysia Foreign worker Insurance
Ace
Jerneh Malaysia Foreign worker Insurance
AXA
Malaysia Foreign worker Insurance
AMGeneral
Malaysia Foreign worker Insurance
Berjaya
Sampo Malaysia Foreign worker Insurance
CHUBB
Malaysia Foreign worker Insurance
Danajamin
Malaysia Foreign worker Insurance
Etiqa
Malaysia Foreign worker Insurance
Kurnia
Malaysia Foreign worker Insurance
Liberty
Malaysia Foreign worker Insurance
Lonpac
Malaysia Foreign worker Insurance
MSIG
Malaysia Foreign worker Insurance
MPI
Malaysia Foreign worker Insurance
P&O
Malaysia Foreign worker Insurance
OAC
Malaysia Foreign worker Insurance
RHB
Malaysia Foreign worker Insurance
QBE
Malaysia Foreign worker Insurance
Takaful
Malaysia Foreign worker Insurance
Tokio
Marine Malaysia Foreign worker Insurance
The
Pacific Malaysia Foreign worker Insurance
Tune
Malaysia Foreign worker Insurance
Zurich
Malaysia Foreign worker Insurance
Malaysia
General Insurance Company Listing
AIG
Malaysia Insurance Berhad
AXA
Affin General Insurance Berhad
Allianz
General Insurance Company (Malaysia) Berhad
AmGeneral
Insurance Berhad
Berjaya
Sompo Insurance Berhad
Chubb
Insurance Malaysia Berhad
Danajamin
Nasional Berhad
Liberty
Insurance Berhad
Lonpac
Insurance Berhad
MPI
Generali Insurans Berhad
MSIG
Insurance (Malaysia) Bhd
Overseas
Assurance Corporation (Malaysia) Berhad
Pacific
& Orient Insurance Co. Berhad
Pacific
Insurance Berhad, The
Progressive
Insurance Berhad
QBE
Insurance (Malaysia) Berhad
RHB
Insurance Berhad
Tokio
Marine Insurans (Malaysia) Berhad
Tune
Insurance Malaysia Berhad
Malaysia
Insurance Corporate Agency
ACPG
Management Sdn Bhd (Insurance Biz since Year 1989)
Head
Office
158-3-7,
Blok 158, Kompleks Maluri,
Jalan
Jejaka, Taman Maluri, Cheras,
55100
Kuala Lumpur, Malaysia.
+603-92863323,
+6011-12239838
