Construction businesses are laden with variety of risks that can take a heavy toll on finances and also halt projects. An insurance company can pick up most of insurable risks. It has become a practice of insisting on insurance cover for most of construction projects through tender conditions, work order, purchase order, financers obligation, etc.
Participants in an event titled ‘Insurance for Construction Industry’ organised by Builders’ Association of India (BA), Mumbai Centre on Saturday October 17, 2020 were briefed on the above and more by the cluster head with reputed private general insurance company, who has a nearly two decade experience in the insurance industry.
The participants were briefed about Contractors All Risk Insurance Policy (CAR Policy) & WC policy (Employers Compensation Policy) Policy, which has been is made mandatory in most of civil construction projects, work orders, tender conditions, etc. of PWD, MMRDA, BMC, CIDCO, most of Metro Projects, Mono Rail, BPCL, HPCL, etc.
Further MahaRERA also mentions about insurance policies (us 16 1,2,3) to be taken. Even private work orders/ tenders also warrants contractors / various parties to buy CAR policy, Employers Compensation Policy. CAR policy has widest cover under one policy. It covers from the moment the material is unloaded at the site of the project and continues during storage, construction, and during maintenance period as extension.
Participants were also briefed about Third Party Liability – also made mandatory under The Maharashtra Lifts, Excalators, Moving Walks Act, 2017 as existing on 1 Jan 2019. Ref Page 13, Point 23, which says “The Owner Shall, after the completion of the erecting of such lift or escalator or moving Walk, ensure Third party Insurance so as to cover the risk of passengers using such lift or escalator or moving walk.”
Considering the ongoing pandemic and lockdown, participants were advised to take extension of the their incomplete projects.
Earlier while welcome the dignitaries and participants, Mohinder Rijhwani, Chairman, BAI Mumbai Centre informed that all the videos of BAI Mumbai Centres Monthly Lecture Meeting Series are on the YouTube channel of BAI Mumbai Centre.
Delivering his inaugural address the Chief Guest, Baburao Shakkarwar, Vice-President, BAI requested the keynote speaker to brief the participants more on as to what happens to those companies who are at present insured and whether the clauses of the various construction industry insurance policies will provide relief to the insured companies due to COVID-19.
Guest of Honour, Bharat Wagh, State Chairman of BAI Maharashtra was keen to know about ‘Title Insurance’ being made mandatory by MahaRERA.