ALL  ENGINEERING  CIRCULARS  IN  2001
Sl no	Circular No.	Date of    Circular	Effective     Date	Subject
1	Engg/Gen-4/55/ 2001/1	01/01/01	01/01/01	Rating of “Wind” Turbine Generator Sets under EAR/SCE Policy
2	Engg/Gen-10/ 2001/2	01/01/01	01/01/01	Amendment in MI Tariff pertaining to the equipment under Group IV “Fertilizer Plants/Petrochemical  Plants/Refineries”
3	Engg/Gen-4/ 2001/3	01/01/01	01/01/01	EAR insurance - tariff entry on ‘Precious metals --- Refining & Fabrication plants.
4	Engg/Gen-10/16/17/ 2001/4	01/01/01	01/01/01	Bonus Malus Scheme for Operational Policies in Engg. Insc.-MB/CPM/EEI Covers
5	Engg/Gen-4/30/ 2001/5	01/01/01	01/01/01	EAR Insurance:  “Combined Cycle Power Plants” - Rating of Gas Turbines while in open - Cycle mode, awaiting integrated testing with Steam Turbine.
6	Engg/Gen-62/ 2001/6	01/01/01	01/01/01	Excess under DOS Insurance Policy (Potatoes)
7	Engg/Gen-4/24/164/ 2001/7	01/01/01	01/01/01	Rating of Large Projects -’Guide Lines’
8	Engg/Gen-4/55/ 2001/8	12/01/01	01/01/01	Rating of “Wind” Turbine Generator Sets under EAR/SCE Policy-correction to Cir No. -1 dt. 1/1/01
9	Engg/Gen-6/ 2001-9	27/03/01	31/03/01	Rating of MLOP Proposals - Provisional rates
10	Engg/Gen-6 /2001-10	28/03/01	31/03/01	Rating of MLOP Proposals - Provisional rates
11	Engg/Gen-64/ 2001-11	04/04/01	---	Comprehensive Package Policy to provide Seamless Cover during project and  operational stages
12	Engg/Gen-6/ 2001-12	18/04/01	----	Rating of MLOP Proposals - Provisional rates
13	Engg/Gen-6/ 2001-13	26/04/01		Rating of MLOP Proposals by TAC
14	Engg/Gen-4/55/ 2001/ 14	04/05/01	04/05/01	Bonus Malus Scheme under MB/CPM/EEI and DOS Policies
15	Engg/Gen-4/24/164/ 2001/15	04/05/01	04/05/01	Rating of Large Projects - Design Defect Cover
16	Engg/Gen-4/24/164/ 2001/16	04/05/01	04/05/01	EEI Insurance  - Discount for covering Standard Fire & Special Perils
17	Engg/Gen-4/24/ 2001/ 17	04/05/01	04/05/01	Bonus Malus Clause under EAR/CAR Insurance for Policy Period Extensions
18	Engg/Gen-10/17/16/ 2001/18	04/05/01	04/05/01	‘Higher Excess Discount’ Scheme under MB, CPM, & EEI Policies at par with scheme under EAR, CAR Policies.
19	Engg/Gen-10/ 2001/19	04/05/01	04/05/01	Rating of “pumps handling water” and “all other pumps including Boiler Feed Water Pumps” under Group IV : Fertiliser Plants, Petrochemical Plants & Refineries” Section of MB Insurance Tariff
20	Engg/Gen-10/ 2001/20	04/05/01	04/05/01	MB Insurance - Extension of Time Span between Overhaul and/or open Inspection of Turbines & Turbo - Generators.
21	Engg/Gen-4/24/164/ 2001/21	04/05/01	----	Rating of Large Projects - ‘Wordings for Endorsements.
22	Engg/Gen-10/ 2001/22	13/06/01		Insurance of “Photo Copier Machines” under MB Insurance
23	Engg/Gen-17/2001/23	13/06/01	13/06/01	Rates applicable to “stringing equipment” consisting of hydraulic puller and hydraulic tensioner machines under CPM policy.
24	Engg/Gen-10&17/2001/24	13/06/01		MB Insurance for Asphalt Mixing & Recycling Plants
25	Engg/Gen-4/30/2001/25	13/06/01	01/01/01	Erection All Risks Insurances of “Combined Cycle Power Plants” - Rating of Gas Turbines while in Open Cycle Mode and awaiting integrated testing with Steam Turbines
26	Engg/Gen-16/2001/26	13/06/01	13/06/01	Electronic Equipment Insurance : A) Excess for Personal Computers B) Insurance of VSAT Eqpt. C) Insurance of Medical Eqpt.- Additional “Endorsement”
27	Engg/Gen-10/2001/27	13/06/01	13/06/01	Rating of ‘Passenger lift’ under MB tariff
28	Engg/Gen-16/2001/28	3/08/01		Additional covers under EEI/CPM/BPP policies
29	Engg/Gen-16/2001/29	3/08/01	3/08/01	Additional Customs Duty Cover as an extension to Erection All Risk/Contractor’s All Risk Policies
30	Engg/Gen-4/Gen-164/30	3/08/01	3/08/01	Rating of Large Projects    -  (1) Cover for ‘Valuable Documents’(2) Clarification on ‘Workstoppage’ Cover
31	Engg/Gen-17/2001/31	3/08/01	3/08/01	Contractor’s Plant and Machinery Insurance Rating of Thermoplastic Line Marking Machine -
32	Engg/Gen-16/2001/32	3/08/01	3/08/01	Insurance of System Software - EEI Policy
33	Engg/Gen-10/2001/33	3/08/01	3/08/01	"Third Party Liability" extension under Annual Engg.Insurances
34	Engg/Gen-16/2001/34	3/08/01	3/08/01	Excess under EEI Policy for "WINCHESTER DRIVES"
35	Engg/Gen-10/4/24/2001/35	3/08/01	3/08/01	Endorsement for expenses for foreign personnel under all Engineering Policies
36	Engg/Gen-4/2001/36	3/08/01	3/08/01	Additional Covers under Erection All Risks Policiess for projects with Sum Insured less than Rs.100 cr.
37	Engg/Gen-10/12/2001/37	3/08/01	3/08/01	Seasonal discount under Machinery Insurance Policy

 

ENGG/Gen-4/55/2001/1                                                1st January,2001

Re: Rating of "Wind" Turbine Generator Sets under EAR/SCE Policy.

Reference is drawn to the tariff item "Wind Turbine Generators" under Part-I:Rating Schedule for Erection All Risks Insurance for rating of Wind Mill Turbine Sets having individual capacity not exceeding 250KW.

The Tariff Advisory Committee has decided to introduce rates for higher capacity Wind Turbine Sets as under.

PART I : RATE SCHEDULE FOR ERECTION ALL RISK INSURANCE

(All Rates are in Rupees per mille)

Risk No.	Sl. No.	Description	Rate for 1st month + 1 month Testing	Rate for 1 month or part thereof ,for subsequent 10 months	Rate for 1 month or part thereof for period exceeding 12 months	Rate for 1 month or part thereof for testing period extension within policy period	Excess per claim is 5% of claim amount subject to minimum of Rs............ Normal/ Testing periods
1	2	3	4	5	6	7	8
	6	Wind Turbine Generators
210606	(i)	Individual capacity not exceeding 250KW	3.00	1.10	0.05	0.4	20000/ 50000
210608	(ii)	Above 250KW & upto 400KW	3.50	0.10	0.05	0.4	40000/ 100000
210610	(iii)	Above 400KW	4.00	0.10	0.05	0.4	80000/ 200000

This decision will be effective from 1st January , 2001.

Secretary

                                                                                     GO TO INDEX

---

ENGG/Gen-10/2001/2                                                1st January , 2001.

Re: Amendment in MI Tariff pertaining to the equipment under Group IV

"Fertilizer Plants/Petrochemical Plants/Refineries".

Reference is drawn to the provision under Machinery Insurance Tariff-Section 4.4- Group-IV related to Major Equipment in Fertilizer Plants/Petrochemical Plants/Refineries for rating of "Utility Compressors". It has been decided that the "drives" of Utility Compressors shall also be rated under the same section of the tariff, at par with those of "Utility Compressors" similar to those drives of "Process Compressors".

It was decided to reword the relevant tariff item as under:-

Risk Code	Item	Rate%	Remarks
	b) Utility Compressors including their drives.
400318	(i) Turbine Driven	1.75
400416	(ii) Motor Driven	1.50

The decision is effective from 1st January, 2001.

Secretary

                                                                                    GO TO INDEX

---

ENGG/Gen-4/2001/3                                                    1st January , 2001.

Re: EAR Insurance:Introduction of new Tariff entries

The Tariff Advisory Committee has decided to introduce a new Tariff entry for rating of "Precious Metals (Platinum, Gold, Silver etc.) Refining and Fabrication Projects" at the following rates and terms under Erection All Risks Insurance Tariff.

PART I : RATE SCHEDULE FOR ERECTION ALL RISK INSURANCE

(All Rates are in Rupees per mille)

Risk No.	Sl. No.	Description	Rate for 1st month + 1 month Testing	Rate for 1 month or part thereof ,for subsequent 10 months	Rate for 1 month or part thereof for period exceeding 12 months	Rate for 1 month or part thereof for testing period extension within policy period	Excess per claim is 5% of claim amount subject to minimum of Rs.......... Normal/ Testing periods
1	2	3	4	5	6	7	8
140102	18	Precious Metals, (Platinum, gold, Silver etc.)Refining & Fabrication Plants.	2.25	0.05	0.025	0.30	15000/ 40000

This decision will be effective from 1st January, 2001.

Secretary

                                                                                    GO TO INDEX

---

ENGG/Gen-10/16/17/2001/4                                        1st January , 2001.

Re: Bonus Malus Scheme for Operational Policies in Engg. Insc. - MB/CPM/EEI Covers.

Reference is drawn to our circular No. Engg/Gen-10/16/17/2000/6 dtd. 3rd May, 2000, informing the decidion to consider claims experience discount/loading on MB/CPM/EEI Policies, based on 2 years claims experience only including that of expired policy.

It has now been decided to revert back to the earlier provision of considering claims experience data for 5 years preceeding the expired policy, as was introduced vide circular No. Engg/Gen-10/Part III dtd.27-8-91.

Further it was also decided to revise the Bonus/Malus Scheme as under.

BONUS MALUS SCHEME IN ANNUAL ENGINEERING POLICIES-MB/CPM/EEI COVERS

Average claims Ratio in % for 5 years preceding the expiring policy period	Discount %	Loading %
up to 5	30
Above 5 & upto 15	25
15   30	20
30   40	15
40   45	10
45   50	5
50   60	Nil	Nil
60   80		5
80   100		10
100   125		15
125   150		20
150   200		35
Beyond 200		Committee to decide

This decision will be effective from 1st January, 2001.

Secretary

                                                                                 GO TO INDEX

---

ENGG/Gen-4/30/2001/5                                                1st January , 2001.

Re: Erection All Risks Insurance: "Combined Cycle Power Plants" - Rating of Gas

Turbines while in, Open - Cycle mode, awaiting integrated testing with Steam Turbine.

Reference is drawn to rating of "Gas Turbines/Combined Cycle Power Plants" under Erection All Risks Insurance.

Arising out of a query as to how to rate the "Open Cycle Mode" of an already erected Gas Turbine but awaiting integral testing with Steam Turbine which is under final stages of erection and awaiting testing for Combined Cycle Mode with the Gas Turbine, the Committee has decided to rate "Open Cycle Mode" as under:-

i) Gas Turbines which are covered under separate policies, have to be considered operational and the SCE/MCE cover cannot be extended to cover such Gas Turbines, during Open Cycle Mode.

ii)In those cases where both Gas Turbines and Steam Turbines Sets are covered under the same MCE/SCE policy for a common period of insurance, the policy can be extended to cover Open Cycle Mode of Gas Turbines at following rates:

Within Policy Period -------- 1.00 per mille per month or part thereof

This decision will be effective from 1st January, 2001.

Secretary

                                                                                    GO TO INDEX

---

ENGG/Gen-62/2001/6                                            1st January , 2001.

Re: Excess under DOS Insurance Policy (Potatoes).

The Tariff Advisory Committee decided to revise, the tariff provision in regard to ‘Excess’ under DOS Insurance as under:-

"The compulsory deductible franchise in each and every stock deterioration

policy for both new and old cold storage (Potatoes) shall be as under:-

 

(a) in respect of those cold storages who have opted for FOES extension -

20% of the claim amount subject to a minimum of Rs.20,000/-.

 

(b) in respect of those cold storages who have not opted for FOES extension -

10% of the claim amount subject to a minimum of Rs.20,000/-.

This decision will be effective from 1st January, 2001.

Secretary

                                                                                            GO TO INDEX

---

ENGG/Gen-4/24/164/2001/7                                  1st January , 2001.                              

Re: Rating of Large Projects

Reference is drawn to "Guidelines" issued by Tariff Advisory Committee relating to "Rating of Large Projects" with Sum Insured above Rs.100 crs. and below Rs.1500 crs. as brought out in the TAC Circular Engg/164/99-6 dated 26th Feb.99.

Representations have been received seeking clarifications and review of certain clauses in the ‘guidelines’. It was decided to clarify as under.

1. Sum Insured

As different practices are being followed in computing the Sum Insured for eligibility criteria, it is clarified that "Sum Insured" should be aggregate of the following items only, as is existing in the Committee’s EAR/CAR tariff.

A) Marine (Imports) - Landed cost at site

B) Marine (Indigenous) - Landed cost at site

C) Cost of Erection/Construction

D) Permanent Civil Engineering Works

E) Half the escalation value if escalation is opted for

Policy-wise Sum Insured should only be considered.

2. Deletion of Word ‘Guide’ appearing in the circular

It was decided to delete the word "guide" appearing in the circular, (referred above) as the "guide norms" referred to in the circular gave an impression that the norms were not binding and insurers could still deviate. These norms were mandatory to be followed as such the word ‘guide’ is being deleted.

3. Volume Discount

Following slabs of Sum Insured were to be deleted from the table showing Sum Insured and Volume Discount, as these were irrelevant.

Upto 100 cr.        NIL

Above 1500 cr.   25%

Above 2500 cr.  30%

4) DSU/ALOP Proposals

It was pointed out that the wordings as provided in Ruling 6 of `Annexure’ to the circular, gave an impression that any project policy having an additional cover of DSU/ALOP would go out of purview of the rating norms even if the Sum Insured was within the eligible criteria.

It was clarified that all proposals where the Sum Insured was above Rs.100 cr. and upto 1500 cr. should necessarily be rated as per the norms of the circular, irrespective of DSU/ALOP covers. Only the rating of DSU/ALOP covers were outside the purview of the tariff.

5. Additional Covers not listed in the Circular

It was decided that for additional covers not listed in the circular the insurers should refer the cases to the Committee.

6. Annexure - I - Details of Additional Covers

It was decided to agree to the suggestions for a few changes in the existing wordings of the additional covers as shown in Annexure - I for the sake of clarity.

7. Endorsements for additional covers

It was decided that ‘endorsement’ wordings should be reworded in line with those prevailing as per international practices.

8. The Modified/Revised Circular incorporating all the changes, that are agreed upon is as under.

Following provisions as listed out in TAC’s circular Engg/164/99-6 dtd.26th Feb.99 have been revised as under.

1. Proposals in respect of projects valued above Rs. 100 crs. and upto Rs. 1500 crs. will be rated as per the norms contained in Annexure I/II..

2. Projects valued in excess of Rs. 1500 crs. could be rated on the basis of Re-insurance quotes. In other words project valued in excess of Rs. 1500 crs. go out of Tariff.

3. As regards projects with Sum Insured Rs. 100 crs. and less. The provisions of the tariff shall continue to apply.Insurers will continue to rate such proposals as per tariff provisions.

The above provisions are effective from 1st January, 2001.

Secretary

---

ANNEXURE - 1

NORMS FOR RATING OF LARGE MCE/EAR/SCE/CAR PROJECTS

WITH SUM INSURED ABOVE Rs.100 CRS. AND UPTO 1,500 CRS.

1. Compute basic rate as per EAR/SCE/CAR tariffs without application of discounts.

2. Apply Volume Discount on the basic rate as per following Scale.

Sum Insured	Discount (%)
Above 100 crs. & upto 350 crs	10
Above 350 crs. & upto 700 crs	15
Above 700 crs. & upto 1500 crs	22½

‘Sum Insured’ should be the aggregate of the following items only as is existing in the Committee’s EAR/CAR Tariffs.

A) Marine (Imports) - Landed cost at site

B) Marine (Indigenous) - Landed cost at site

C) Cost of Erection/Construction

D) Permanent Civil Engineering Works

E) Half the escalation value if escalation is opted for

3. Apply Voluntary Excess Discount on the net rate arrived as in (2) above, as per the following Scale.

Voluntary Excess	Discount
2 times Compulsory excess	5%
5 times - do -	10%
10 times - do -	20%
20 times - do -	30%
30 times - do -	35%
40 times - do -	40%
50 times - do -	45%
100 times - do -	50%
More than 100 times Compulsory Excess	55%

N.B. : Net discounted SCE rate/CAR rate shall not be less than 30% of basic rate so arrived as in (1) above.

4. Adjust the net rate as arrived in (3) above, by addition/substraction of the following additional extras/reductions corresponding to various additional covers listed in the Annexure - 2 to arrive at the overall net rate.

5. For any additional cover, not listed in the Annexure-2 refer the matter to Committee.

6. Note :- Rating of DSU/ALOP Proposals:- All proposals where the Sum Insured is above Rs.100 cr and upto Rs. 1500 crs should necessarily be rated as per the norms of this circular, irrespective of DSU/ALOP Covers. Only the rating of DSU/ALOP covers was outside the purview of the Committee.

ANNEXURE - 2

	Additional Covers	Limits	Rating Group Code	Rate per mille
a)	Owners' surrounding property  N.B: If the cover is required during the maintenance period also the extras applicable for each group shall be loaded by 10%.	Upto 10% of policy SI without FLEXA risks ................ Upto 10% of policy SI with FLEXA risks................ Above 10% of Policy SI but without FLEXA Risks....  Above10% of policy SI but with FLEXA risks..........	A   B C   D	0.05   0.10 0.15   0.20
b)	50/50 clause		O	Nil
c)	72 hrs. clause		O	Nil
d)	Free automatic reinstatement clause	Upto 10% of SI .............................. Above 10% and upto 50% of SI.... Above 50% and upto Full SI.........	O A B	Nil 0.05 0.10
e)	Loss minimisation expenses		O	Nil
f)	Debris Removal limit per occurrence.	Upto Rs.50 lakhs .......................... Above Rs.50 lakhs and upto Rs.10 crs ... Above Rs.10 crores and upto Rs.25 crs ................ Above Rs.25 crs .......................	O A B   C	Nil 0.05 0.10   0.15
g)	Professional fees		O	Nil
h)	Cover for offsite storage/fabrication		A	0.05
i)	T.P.L. Cover With or without Cross Liability extension within geographical limits of India TPL Cover during Maintenance period	i)AOA limit upto Rs.10 cr............. ii)AOA limit above Rs.10 cr but upto Rs.25 cr ........................... iii)Above 25 cr .......seperate cover to be issued ............................. 25% loading on the above rates.	A B --	0.05 0.10 --
j)	Waiver of contribution clause	N.B.:This should be restricted between Principal and the contractor and should not be waived for others.	O	Nil
== k)	Additional Covers ================ Escalation costs	Limts   ========================= Upto 10% of policy SI ................. Above 10% of policy SI and upto 50% .....................	Rating Group Code ========== A B	Rate per mille ==== 0.05 0.10
l)	Waiver of Subrogation clause		A	0.05
m)	Expediting cost including Air Freight & Express Freight	Upto 30% of net claim Amount .... Beyond ........................	O A	Nil 0.05
n)	Extended maintenance cover	(for every 12 months or part thereof.)........................................	A	0.05
o)	Continuity of Cover during operational phase for Unit /Plant tested but awaiting integral testing. (Along with other Units/Plants)	(For every month or part thereof )	D	0.20
p)	Design Defect cover as per `D’4 wording of Munich Re		D	0.20
q)	Amendment in Fire fighting endorsement wordings		O	Nil
r)	Additional Custom duty	UptoRs.10 cr.................................. Rs.10 cr to Rs.30 cr............... Beyond Rs.30 cr ................	O A C	Nil 0.05 0.15
s)	Wilful negligence	Not to be covered at any cost	--	--

Extra Rates for additional covers

Group Code	Extras Rates
-O’ -	NIL
- ‘A’ -	0.05%o
- ‘B’ -	0.10%o
- ‘C’ -	0.15%o
- ‘D’ -	0.20%o

---

ENGG/Gen-4/55/2001/8                                                                     12th January , 2001.                        

Re: Rating of "Wind" Turbine Generator Sets under EAR/SCE Policy.

Reference is drawn to the TAC Circular Engg/Gen-4/55/2001/7 dtd.1st January, 2001 made effective from 1st January, 2001, introducing rates for "Wind Mills" having individual capacity exceeding 250KW under Erection All Risks Insurance.

The rate applicable for "1 month or part thereof, for subsequent 10 months" as appearing under Column no.-5 against Risk Code 210606 (i)for "Wind Generators" having individual capacity not exceeding 250KW has been wrongly mentioned as Rs.1.10 per mille instead of Rs.0.10 per mille.

The correction may be noted for your records. The corrected entries are as under:-

PART I : RATE SCHEDULE FOR ERECTION ALL RISK INSURANCE

(All Rates are in Rupees per mille)

Risk No.	Sl. No.	Description	Rate for 1st month + 1 month Testing	Rate for 1 month or part thereof ,for subsequent 10 months	Rate for 1 month or part thereof for period exceeding 12 months	Rate for 1 month or part thereof for testing period extension within policy period	Excess per claim is 5% of claim amount subject to minimum of Rs............ Normal/ Testing periods
1	2	3	4	5	6	7	8
	6	Wind Turbine Generators
210606	(i)	Individual capacity not exceeding 250KW	3.00	0.10	0.05	0.4	20000/ 50000
210608	(ii)	Above 250KW & upto 400KW	3.50	0.10	0.05	0.4	40000/ 100000
210610	(iii)	Above 400KW	4.00	0.10	0.05	0.4	80000/ 200000

This decision will be effective from 1st January , 2001.

Secretary

                                                                            GO TO INDEX

---

Engg.-Gen-6/Fire-Gen-102/2001-9                                                     27th March , 2001.           

Rating of MLOP Proposals -- Provisional rates

As you are aware, the rating of MLOP proposals under Industrial All Risks and Engineering Insurance had been delegated to insurers effective from 31.12.99 , as communicated vide our Circular letter dated 18th Feb., 2000.

The TAC has now decided to fix following provisional rates for all MLOP proposals whose renewals / new business incept on or after 31.3.2001 pending finalisation of the rates by TAC.

RATES AND EXCESS FOR MLOP COVER ( PROVISIONAL RATES)

Sr.No.	Type of Plants/Risks	Rate %	Time Excess in No.of days
1	*Power Plants with Individual capacity of Generating sets upto 175 MW > 175 MW	1.77 1.77	21 40
2	* Petrochemical Plants Upto MB S.I.of Rs.700 crs > 700 crs.	1.60   1.60	14   21
3	Other Plants Upto MB S.I. of Rs.150 Crs. > Rs.150 crs.	1.00   1.40	7   14
* For first year of operation (new plant) the time excess shall be increased by 7 days * If claims experience for the expiring policy period exceeds 30% the time excess will increase by 7 days in all the cases.

All proposals in case of renewals / new business falling on OR after 31st March, 2001 should be referred to the Committee for rating , within one month from inception / renewals of MLOP cover .

    SECRETARY

                                                                            GO TO INDEX

---

Engg.-Gen-6/Fire-Gen-102/2001-10                28thMarch,2001

Re: Rating of MLOP Proposals -- Provisional rates

Further to the TAC Circular No.Engg/Gen-6/Fire-Gen-102/2001-10 dtd. 27-3-2001, issued in repsect of rating of MLOP proposals under ‘Industrial All Risks Insurance’ and ‘Engineering Insurance’ we are to clarify as below:-

1. The provisions of the said circular shall be applicable for all new business and renewals falling due on or after 31st March, 2001.

2. The claim experience referred to in the Circular for reviewing time excess shall comprise combined claims experience of MB and MLOP, for both ‘Industrial All Risks Insurance’ and ‘Engineering Insurance’ policies.

3. MLOP policies incepted prior to 31-3-2001 shall not be cancelled mid-term and renewed at the same rates and terms charged prior to 31-3-2001.

You are requested to advise your operating offices suitably in this regard.

Secretary

                                                                GO TO INDEX

---

Engg/Gen-64/2001-11                                         4th April, 2001

Sub: Comprehensive Package Policy to provide Seamless Cover during project and operational stages

Arising out of representations, the Tariff Advisory Committee has decided to consider issuance of seamless policy for Electric Power Generating Stations to provide `All Risks’ covers both during project and operational stages.

Insurers receiving request from Principals/Financial Institutions funding the projects for issuance of such policies may refer the proposals to TAC for its consideration.

Secretary

                                                                            GO TO INDEX

---

Engg.-Gen-6/Fire-Gen-102/12                                    18th April,2001

Re: Rating of MLOP Proposals -- Provisional rates

This refers to our Circular letter No. Engg/Gen-6/2001-9/Fire-gen-102 dated 27th March, 2001 communicating therewith provisional rates for MLOP proposals.

We have now been informed by GIC that a facility has been made for reinsurance of ferilizer risks and the same is available to Indian companies for use. As per this programme, a time excess of 7 days is acceptable for MLOP insurance of fertilizer risks. In view of this, the provisional rates and terms communicated vide our letter dated 27th March, 2001 are revised as under:

RATES AND EXCESS FOR MLOP COVER ( PROVISIONAL):

Sr.No.	Type of Plants/Risks	Rate %	Time Excess in No.of days
1	*Power Plants with Individual capacity of Generating sets upto 175 MW > 175 MW	1.77 1.77	21 40
2	* Petrochemical Plants Upto MB S.I.of Rs.700 crs > 700 crs.	1.60   1.60	14   21
3	Fertilizer plants Upto MB SI of Rs.700 crs. . Rs.700 crs.	1.00   1.60	7   14
4	Other Plants Upto MB S.I. of Rs.150 Crs. > Rs.150 crs.	1.00   1.40	7   14
* For first year of operation (new plant) the time excess shall be increased by 7 days ** If claims experience for the expiring policy period exceeds 30% the time excess will increase by 7 days in all the cases.

As communicated earlier, all proposals should be referred to the Committee within one month from inception/renewals.

This circular latter takes effect from today for all new business and renewals.

Insurers are requested to inform their operating offices suitably.

SECRETARY

                                                                            GO TO INDEX

---

Engg/Gen-6/Fire-Gen-102/2001-13         26th April,2001.

Re:Rating of MLOP Proposals by TAC

This has reference to our Circular letters Engg/Gen-6/Fire-Gen-102/ 2001-9/10 & 12 dt. 27th March,2001,28th March,2001 and 18th April,2001 on the captioned subject.

All proposals referred to TAC shall contain details as per enclosed format.

Secretary

MLOP - FORMAT FOR RATING

1) Name of the Insured :

2) Address :

3) Sum Insured :

4) Indemnity Period :

5) Policy Period :

6) Claims experience for 5 policy periods preceding the expiring policy period :

7) Expiring Rates and Terms :

8) Reinsurer’s quotes on rates and terms (pl. enclose copy of Reinsurer’s letter)

9) Technical Details as per the following format :

Item No.	Machine or Equipment to be Insured *	Details of Machines/Equipment
		Relative Importance	Reserve Capacity	Spare parts available	No. of Shifts	Age	Whether indeginous or imported	Details of Loss Minimisation measures	Special technical risks if any	Any other relevant information

* This column should contain details like voltage, KVA/KW rating, speed (RPM), No. of stages, type (reciprocating/rotary/axial/radial/screw type, AC/DC, CNC, water tube/fire tube in case of boilers), capacity etc.

                                                                                        GO TO INDEX

______________________________________________________________________________

Engg/Gen-4/55/2001/14                                                  4th May,2001

Re: ‘Bonus Malus’ scheme under MB,CPM,EEI & DOS Policies

The Tariff Advisory Committee has decided to revise the present scheme of `Bonus-Malus’ under MB,CPM,EEI & DOS policies as under :-

BONUS/MALUS SCHEME UNDER MB, CPM, EEI & DOS POLICIES.

Average claims ratio in % for 5 years preceding the expiring policy period	Discount %	Loading %	EXCESS
Upto 05	30		Normal
Above 05 and upto 15	25		Normal
Above 15 and upto 30	20		Normal
Above 30 and upto 40	15		Normal
Above 40 and upto 45	10		Normal
Above 45 and upto 50	5		Normal
Above 50 and upto 60	Nil	Nil	Normal
Above 60 and upto 80		5	Normal
Above 80 and upto 100		10	Normal
Above 100 and upto 125		15	Normal
Above 125 and upto 150		20	Normal
Above 150 and upto 200		35	Normal
Above 200 and upto 300		35	1.5 times tariff excess
Above 300 and upto 400		40	2.0 times tariff excess
Above 400 and upto 500		45	2.5 times tariff excess
Above 500		50	3 times tariff excess

1. In case of DOS policies coming under the scope of the scheme, the existing "Rate Table" for DOS policies with or without FOES ; for policy period ranging from 7 to 12 months stands replaced by the above Bonus-Malus Scheme, which discount should be applied on the rate for with or without FOES extension for the corresponding period.

2. The claims ratio to be calculated on incurred basis.

3. In case of DOS policies, the claims ratio shall comprise of MB and DOS portions.

This decision is effective from 4th May, 2001.

Secretary

                                                                                        GO TO INDEX

---

Engg/Gen-4/24/164/2001/15                                                 4th May,2001

Re: Rating of Large Projects - Design Defect Cover

Reference is drawn to "Guidelines" issued by Tariff Advisory Committee relating to "Rating of Large Projects" with Sum Insured above Rs.100 crs. and below Rs.1500 crs. as brought out in the TAC Circular Engg/164/99-6 dtd.26th Feb.99 and the clarification vide Cir.No. Engg/Gen/4/24/164/2001/7 dtd.1-1-2001.

Representations have been received in general on providing `design defect’ cover, which is a standard exclusion under CAR policy. It was decided to issue the ‘design defect’ cover as under for both EAR and CAR proposals.

Design Defect Cover as Per	Additional Rate	Excess	Remarks
DE-1 of Munich Re	Not applicable as it is already excluded	Not applicable as the basic cover excludes	-
DE-2 of Munich Re	5% of basic SCE rate	5 times AOG excess	-
DE-3 of Munich Re	10% of basic rate	-do-	-
DE-4 of Munich Re	15% of basic rate	-do-	To be restricted only to EAR proposals.
DE-5 of Munich Re	To refer to Committee	To refer to Committee	-

It was also decided that the relevant provision for "Design Defect Cover" as per Munich Re DE 4" as appearing under the above referred circular Engg/Gen-4/24/164/2001/7 dtd.1-1-01 on "Rating of Large Project is restricted to "Erection All Risks" only.

The above decision is effective from 4th May, 2001.

Secretary

                                                                                    GO TO INDEX

---

ENGG/Gen-4/24/164/2001/16                                     4th May, 2001

Re: Electronic Equipment Insurance: Discount for covering Standard Fire & Special Perils

Reference is drawn to scheme under EEI tariff for granting discount on the premium rate for electronic equipments that are covered under the EEI policy as well as Fire policy, as brought out in the circular Engg/Gen-16/97-4 dtd.11-3-97.

Consequent upon the introduction of revised Fire tariff the Tariff Advisory Committee has decided to revise the existing pattern of discount under EEI tariff, if the equipment that are covered under EEI policy are also covered under Fire policy as under:-

S.No.	COVER	DISCOUNT
1.	For equipments covered under EEI Policy as also under Standard Fire and Special Peril policy	10% of the applicable EEI rate
2.	For equipments covered under EEI Policy as also under Standard Fire and Special peril policy without STFI or RSMTD	7.50% of the applicable EEI rate
3	For equipments covered under EEI Policy as also under Standard Fire and Special peril policy without STFI and RSMTD	5% of the applicable EEI rate

The above decision is effected from 4th May, 2001.

Secretary

                                                                                            GO TO INDEX

_________________________________________________________________________

Engg/Gen-4/24/2001-17                                                              4th May, 2001

Re: Bonus Malus Clause under Erection All Risks/Contractors All Risk Insurance for Policy Period Extensions.

-------------------------------------------------------------------------

Reference is drawn to the provision for "CLAIMS DISCOUNT/LOADING ON EAR/SCE EXTENSION RATES" under General Rules & Regulations of Erection All Risks Insurance, Contractors All Risk Insurance, prescribing discount/loading on rates for extension period, based on claims experience as on the date of extension which provided a maximum loading of 30% for adverse claims experience beyond 300% without any upper limit.

It was decided to introduce loading scheme for claims experience higher than 300%. The modified scheme is as under:-

Claims Experience as on date of extension in %	Discount on extension rate in %	Loading on extension rate in %	Excess
Upto 10	20	-	As per tariff
Above 10 and upto 30	15	-	- do -
Above 30 and upto 60	10	-	- do -
Above 60 and upto 100	Nil	-	- do -
Above 100 and upto 200	-	+10	- do -
Above 200 and upto 300	-	+20	- do -
Above 300 and upto 400	-	+40	1.5 times of normal and testing excess
Above 400 and upto 500		+50	2 times of normal and testing excess
Above 500		+50	3 times of normal and testing excess

This decision will be effective from 4th May, 2001.

 

Secretary

 

                                                                                                        GO TO INDEX

___________________________________________________________________________

 

Engg/Gen-10/17/16/2001/18                                                     4th May, 2001

 

Re: `Higher Excess Discount' Scheme under MB, CPM and EEI Policies at par with Scheme

under EAR, CAR Policies.  

 

The Tariff Advisory Committee decided to adopt the present higher excess discount scheme available under EAR/CAR policies for projects with Sum Insured less than Rs.100 cr., for MB, CPM and EEI policies also as under:-

Excess opted	Discount
2 times	5%
5 times	10%
10 times	20%
20 times	30 %

The scheme will also apply to earthquake premium alone if higher excess amounts are selected for claims arising out of AOG Perils incase of CPM equipment.

This decision will be effective from 4th May, 2001.

 

Secretary

 

                                                                                            GO TO INDEX

___________________________________________________________________________

 

Engg/Gen-10/2001/19                                                              4th May, 2001

 

Re: Rating of "pumps handling water" and all "other pumps including `Boiler Feed Water Pumps" under Group IV : "Fertiliser Plants, Petrochemical Plants & Refineries" Section of MB Insurance Tariff

 

Reference is drawn to Rating of Item : (e) Pumps (handling water other than Boiler Feed Water) under Group 

IV - "Fertiliser Plants Petrochemical Plants Refineries" Section of MB Insurance Tariff.

The Tariff Advisory Committee has decided to rate all types of 'Pumps' as under:-

 

Group - IV : Fertilizer plants/Petrochemical plants/Refineries:

e) Pumps and their drives

Pumps handling water : 0.75%

All other pumps including ) : a) Turbine/Engine

Boiler Feed Water Pumps ) Driven : 1.75% b) Motor Driven : 1.50%

Drives for the above Pumps  

Turbine : 1.75%

Engine : 1.75%

Motor : 1.50%

The decision will be effective from 4th May, 2001.

                                                                                                GO TO INDEX

___________________________________________________________________________

Engg/Gen-10/2001/20                                                                  4th May, 2001

 

Re: MB Insurance - Extension of Time Span between Overhaul and/or open Inspection.

 

Reference is drawn to the Provision No.3 in respect of "Inspection of Turbines & Turbo-generators" of "Standard Policy Form - Machinery Breakdown Insurance Policy", calling for overhauling in a completely opened up state not later than completion of 32000 hrs of operation or four years  whichever is earlier.

The Tariff Advisory Committee decided to introduce a tariff provision for extending the interval between successive overhauls to 64,000 hrs/8 years as under. Requests for permission to increase the period between successive overhauls beyond 64,000 hrs/8 years should be referred to Committee, well in time.

 

Period between successive overhauls	terms & conditions
Beyond 32,000 hrs/4 years and upto 48,000 hrs/6 years	Excess shall be 25% of claim subject to a minimum of 150% of tariff excess
Beyond 48,000 hrs/6 years and upto 56,000 hrs/7 yrs	Excess shall be 37.5% of claim subject to a minimum of 200% of tariff excess.
Beyond 56,000 hrs/7 yrs.and upto 64,000 hrs/8 yrs.	Excess shall be 50% of claim subject to a minimum of 300% of tariff excess
Beyond 64,000 hrs/8 years	To be referred to the Committee well in advance

 

The decision is effective from 4th May, 2001.

                                                                              GO TO INDEX

___________________________________________________________________________

 

ENGG/Gen-4/24/164/2001/21                                                   4th May, 2001

 

 

                                   Re: Rating of Large Projects

            Reference is drawn to “Guidelines” introduced for  “Rating of Large Projects” with Sum Insured above Rs.100 crs. and below Rs.1500 crs. as brought out in the TAC Circular Engg/164/99-6 dtd.26th Feb.99 and also the modified guidelines issued  vide Cir.No. Engg/Gen-4/24/164/2001/7 dtd. 1st Jan., 2001.

 

            The “Wordings for endorsements”  in respect of  “additional covers” included in the “guidelines” are given in the Annexure.

                                                                                                 

1/m     Cover of Extra Charges for Overtime, Night Work, Work on Public Holidays, Express Freight including Air Freight

 

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon and “Insured having paid the agreed premium” the Insurer shall indemnify the insured, extra charges for Overtime, Night Work, Work on Public Holidays and Express freight (including Air Freight).

 

Provided always that such extra charges are incurred in connection with any loss of or damage to the insured items recoverable under the Policy.

 

If the sum(s) insured of the damaged item(s) is/are less than the amount(s) required to be insured, the amount payable under this Endorsement for such extra charges shall be reduced in the same proportion.

 

Provided  always  that  the  amount  payable  shall  not  exceed -----------% of  loss amount per any one occurrence and that the indemnity in respect of  Air Freight shall be subject to an additional excess  of ------------% of the Air Freight incurred per claim.

 

N.B.: To be deleted, where cover is up to 30% of net claims as it is without extra premium.

 

2/q       Special Conditions Concerning Fire Fighting Facilities

 

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon, the Insurers shall only indemnify the Insured for loss or damage resulting directly or indirectly from fire and/or explosion if the following requirements are fulfilled:-

·      Adequate fire-fighting equipment and extinguishing agents of sufficient capacity must always  be available at the site and ready for immediate use.

·      Sufficient number of workmen must be fully trained in the use of such equipment and must be available for immediate intervention at all times.

·      If storage of material for the construction or erection of the contract works is necessary at site or any other location within India, storage must be subdivided into storage units not exceeding the equivalent value of Rs.------- per storage unit.  The individual storage units must either be at least 10 meters apart or separated by fire-proof walls.

  All inflammable materials (such as shuttering material not fitted for concreting, litter, etc.) and especially all inflammable liquids and gases must be stored at a sufficiently large distance from the property under construction or erection and any hot work like welding etc.

·      Provided further that in respect of storages of Indian sourced materials at locations other than the site, the amount payable shall not exceed Rs.---------- at any one location.

·      Welding, soldering or the use of an open flame in the vicinity of combustible material is permitted only if at least one workman suitably equipped with extinguishers and well trained in fire-fighting is present.

·      At the beginning of testing all fire-fighting facilities designed for the operation of the plant must be installed and serviceable.

 

4/c       72 Hours Clause

It is agreed that any loss of or damage to the Insured Property arising during any one period of seventy two (72) consecutive hours, caused by storm, tempest, flood or earthquake shall be deemed as a single event and therefore to constitute one occurrence with regard to the Excesses provided for herein.  For the purpose of the foregoing the commencement of any such seventy two (72) hours period shall be decided at the discretion of the Insured it being understood and agreed, however, that there shall be no overlapping in any two or more such seventy two (72) hours periods in the event of damage occurring over a more extended period of time.

 

5/g            Professional Fees Clause

The Indemnity provided by this Policy is extended to include Architects, Surveyors and Consulting Engineers or other Professional Fees necessarily incurred in the reinstatement of the Insured Property consequent upon loss or damage but not for preparing any claim, it being understood that the amount payable for such fees shall not exceed those authorised under the scale of the appropriate Professional Body.

The liability of the insurers under this endorsement shall in no case exceed 10% of the loss amount per any one occurrence and Rs.---------- in the aggregate.

 

6/k            Escalation Clause

It is hereby declared and agreed that the insured having paid the agreed extra premium, Company shall provide for escalation in Sum Insured under items of Section I of the Schedule attached to the policy upto --------% of the original Site Value, the basis of claim settlement shall be the original site value of affected equipment/ property as insured plus increase in cost of replacement/ reconstruction, if any provided that the increase in the value of such equipment/ property does not exceed  --------     % of the original site value as insured.

It is also hereby declared and agreed that in the event of a claim the Insured would be considered as fully insured upto the Sum Insured inclusive of  --------% increase as per selected escalation and underinsurance would apply only in the event of the cost of replacement / reconstruction of the affected equipment/property  exceeding the original value as insured inclusive of selected  ---------- % towards escalation.

It is however understood and agreed that the premium collected against escalation provision shall not be subject to refund of premium as provided in the premium adjustment clause.

It is further understood and agreed that in case of additional premium chargeable during final adjustment, additional escalation premium will be charged to the insured but in case of any premium refundable during final adjustment no refund shall be allowed against the escalation premium already charged to the Insured.

 

7/f            Clearance and Removal of Debris

This Policy extends to cover costs and expenses necessarily incurred by the Insured with the consent of the Insurers in demolishing or removing debris of portions of the property insured by Section I destroyed or damaged by any peril hereby insured against upto an amount  not  exceeding --------% of the claim amount Rs. ----------- lacs per any one occurrence and Rs.---------- in the aggregate.

 

N.B.: Not applicable if the cover is only for Rs.50 lacs.    

 

8/b       50 : 50 Clause

 

In respect of the subject matter Insured hereunder consigned from outside India:

·      The Insured hereby undertakes to inspect each item of the subject matter Insured upon arrival at the contract site for possible damage sustained during transit.

·      In the case of packed items which are to be left in their packaging until a later date the packaging is to be visually inspected for signs of possible damage and where such damage is visible the items are to be unpacked and inspected and any damage discovered reported to the Marine Insurers.

·      Where the packaging of an item shows no visible signs of damage to such item having been sustained during transit any subsequent damage discovered upon unpacking will be dealt with by the Marine Insurers or the EAR Insurers according to whether it can be clearly established that such damage was caused before or after arrival at the contract site.

·      Where it is not possible to clearly establish whether the damage to an item was caused before or after arrival at the contract site it is hereby agreed that the cost of such damage      shall be shared equally between the Marine Insurers and the EAR Insurers, provided such a clause is included in the Marine Policy also.

 

9/r        Cover for Increased Customs Duty

 

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon and subject to the Insured having paid the agreed extra premium, this insurance shall be extended to cover at the Insured exchange rate increased Customs Duty percentage payable on the replacement supplies over and above the Customs Duty taken into account while arriving at the sum insured of the affected item.

 

Provided always that such additional duty is incurred in connection with any loss or damage to the insured items recoverable under the policy and provided further that the amount payable hereunder shall not exceed  Rs.---------- in the aggregate. 

Each and every claim payable under this extension shall be subject to an excess of 5% of the Additional Customs Duty incurred over and above the excess normally applicable.

 

N.B.: Not applicable if the cover sought is upto Rs.10 crores.

 

10/e     Loss Minimisation Expenses

 

If upon the happening of any peril hereby insured resulting in actual damage to the Insured Property the Insured shall take all steps to minimise further loss or damage arising from that occurrence or accident, expenses necessarily and reasonably incurred by or on behalf of the Insured in an attempt to prevent or minimise such further loss or damage will be Indemnified upto a limit of Rs.--------- in the aggregate.

 

11/a            Owners Surrounding Property

 

It is hereby declared and agreed that the insured having paid the extra premium the policy extends to cover loss of or damage to property located on or adjacent to the Project Site and belonging to or held in care, custody or control of the Principal(s) or the Contractor (s) shall only be covered if occurring directly due to the erection, construction or testing of the items insured under Section I and happening during the period of cover.  This cover does not apply to Construction / Erection Machinery, Plant and Equipment, Temporary Buildings and Temporary site installations.

 

Limit of indemnity shall be ---------%  of the policy Sum Insured.

            The policy does not cover loss due to Fire, Lightning, Explosion and                         Aircraft damage

            To be retained or deleted as per cover decided.

 

12/d            Automatic Reinstatement

 

Notwithstanding anything contained herein to the contrary it is hereby agreed and understood that the amounts insured are always to remain at risk and shall not be reduced following loss or damage insured hereunder so long as the aggregate of the sums paid and/or payable does not exceed 10% of the  completely erected value - If restricted.

 

It is hereby declared and agreed that the insured having paid the extra premium the amount insured are always to remain at risk and shall not be reduced, so long as the aggregate of the sum paid and/or payable does not exceed------ % of sum insured.

 

13/i          Cover for Cross Liability

 

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon and subject to the Insured having paid the agreed premium, the Third Party Liability cover of the Policy shall apply to the insured parties named in the Schedule as if a separate policy had been issued to each party, provided that the Insurers shall not indemnify the Insured under this Endorsement in respect of liability for

·                    Loss of or damage to items insured or insurable under Section I of the Policy, even if not recoverable due to an excess or any limit.

·                    Fatal or non-fatal injury or illness of employees or workmen who are or could have been insured under Workmen's Compensation and/or Employers’ Liability Insurance

The Insurers total liability in respect of the insured parties shall not however exceed in the aggregate for any one accident or series of accidents arising out of one event the limit of indemnity stated in the schedule.

 

14/l            Waiver of Subrogation

 

It is hereby agreed and understood that otherwise subject to the terms exclusions, provisions and conditions contained in the Policy or endorsed thereon,  the  Insurers  shall  waive  all  their  rights of subrogation or action which they may have or acquire against the assured and any person, firm or corporation having an association or affiliation at the time of loss with the assured through ownership or management subject to having been insured under this Policy.

 

15/p     Cover of Manufacturers’  Risk

 

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon and Insured having paid the premium, Item "C" under "Special Exclusion to Section I" shall be replaced by the following wording:

 

’This policy excludes the costs necessary to replace, repair or rectify any component part or individual item of the  Property Insured which is defective in design, plan, specification, materials, or workmanship, but this exclusion shall not apply to other parts or items of the Property Insured unintentionally damaged as a consequence of such defect.’  

 

This endorsement does, however, not apply to parts and items of civil engineering sections.

 

16/n            Extended Maintenance Cover

 

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon and Insured having paid the agreed extra premium this insurance shall be extended for the maintenance period specified hereunder to cover loss of or damage to the contract works.

·      Caused by the insured contractor(s) in the course of the operations carried out for the purpose of complying with the obligations under the maintenance provisions of the contract.

·      Occurring during the maintenance period, provided such loss or damage was caused on the site during the erection period before the certificate of completion for the lost or damaged section was issued.

 

Maintenance Period  -------  months.

 

endt wordings--new

   (Attached to Lar-Pro Circular 21 dated 4-5-01)

 

                                                                                     GO TO INDEX

___________________________________________________________________________

Engg/Gen-10/2001/22                                                        13th June, 2001                                                                                                      

           

            Re: Insurance of “Photo Copier Machines” under MB Insurance.

 

            Representations are being received in respect of “Photo Copier Machines” which are now rateable under MB tariff, for bringing the same  under the scope of EEI policy.

 

            It has  been decided to maintain status-quo i.e., the “photo copier machines” should continue to be rated under MB policy.

                                                                                      GO TO INDEX

___________________________________________________________________________

 

Engg/Gen-17/2001/23                                           13th June, 2001                                       

  

            Re: Rates applicable to “stringing equipment” consisting of

                  hydraulic puller and hydraulic tensioner machines  under CPM Policy.

            The Tariff Advisory Committee has decided to rate the “stringing equipment” consisting of hydraulic puller and tensioner machines, used for the purpose of stringing of transmission lines under “Group II” of CPM equipment at a rate of Rs. 0.80% + earthquake extra.

 

            This decision is effective from 13th June, 2001.

                                                                                        GO TO INDEX

___________________________________________________________________________

 

Engg/Gen-10&17/2001/24                                         13th June, 2001                           

 

 

                        Re: MB Insurance for Asphalt Mixing & Recycling Plants

 

            Representations are being received for extending MB Cover for “asphalting, mixing and recycling plants” while stationed at worksites.

 

            As these equipment are mobile in nature and have to be shifted from site to site , Insurers are prohibited from issuing any machinery break-down cover for these equipments.

 

                                                                                        GO TO INDEX        ________________________________________________________________________

Engg/Gen-4/30/2001/25                                              13th June, 2001                           

 

 

                        Re: Erection All Risks Insurances of “Combined Cycle Power

                               Plants” - Rating of Gas Turbines while in Open Cycle Mode

                               and awaiting integrated testing with Steam Turbines

 

            Reference is drawn to TAC Circular No.Engg/Gen-4/2001/5 dtd.1-1-01 giving the rate for “Open-Cycle Mode”falling within policy period of “Gas Turbines/Combined Cycle Power Plant”

awaiting integrated testing with steam turbines covered  under ‘Erection All Risks Insurance’.

 

            In order to take into account a situation, where the ‘open-cycle’ mode extends beyond the initial period of cover, it is decided to rate such extension at Rs. 1.50%o per month or part thereof.

 

            Accordingly, the circular Engg/Gen-4/2001/5 dtd. 1-1-01stands revised as under , taking into account both the situations  where  the ‘open cycle mode’ falls ‘within’ and ‘beyond’ policy period.

 

            i) Gas Turbines which are covered under separate policies, have to be considered operational and the SCE/MCE cover cannot be extended to cover such Gas Turbines, during Open Cycle Mode.

 

            ii)In those cases where both Gas Turbines and Steam Turbines Sets are covered under the same MCE/SCE policy for a common period of insurance, the policy can be extended to cover Open Cycle Mode of Gas Turbines at following rates:

 

            “Within policy period   -   Rs. 1.00 per mille per month or part thereof

            Beyond policy period    -   Rs. 1.50 per mille per month or part thereof

 

            This decision will be effective from 01-1-2001.

 

                                                                                      GO TO INDEX

___________________________________________________________________________

Engg/Gen-16/2001/26                                                                13th June, 2001

 

                        Re: Electronic Equipment Insurance :

                              A) Excess for Personal Computers

                              B) Insurance of VSAT Eqpt.

                              C) Insurance of Medical Eqpt.-Additional “Endorsement”

 

            Tariff Advisory Committee decided to introduce the following amendments  in “Electronic Equipment Insurance”Tariff..

 

A)            “Personal Computers”

            It has been decided to revise the excess for “Personal Computers” to 5% of claim amount                       subject to a minimum of Rs. 2500/-.

 

B)        Insurance of VSAT equipment

            It has been decided to introduce the following rates and terms for V-SAT Equipment

 

            Rate                                 -  Rs.1.00% for all parts of VSAT Eqpt.

 

            Excess for AOG claims  -  10% of claim amount subject to a minimum  of  Rs.10,000/-

            Excess for other claims   -  As per EEI tariff

 

C)        Medical Equipment using X-ray tubes

           As regards depreciation for  Medical  Equipment using X-ray tubes , it has been decided to            adopt the following ‘Endorsement’s wordings’ for which are given in  the “annexure”

 

            i) Cover of x-ray valves & tubes

           ii) Special condition Concerning Computer Tecnographs

          iii) Warranty for Lightning and over-voltage Protection Divices

           iv) Warranty concerning Air-conditioning Plant.

 

          The decision is effective from 13th June, 2001.

 

Encl: “annexure”                                                                                        

 

           

 

            ANNEXURE  TO  ITEM - 8(c) of 192 & Cir. No. 26 of 13/06/2001

_______________________________________________________________

Cover of Valves and Tubes

 

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon, this insurance shall be extended to include loss of or damage to valves and tubes. Indemnification shall be limited to the actual value of such items (cf 1 - 7) immediately prior to the occurrence of the loss or damage, including ordinary freight, erection costs and custom duties and dues, if any.

 

1.  Actual values of

 

1.1.  stationary anode X-ray tubes in single-tank setup and rotating anode X-ray tubes without exposure counters for diagnostic equipment

1.2.  surface and close-range radio-therapy X-ray tubes and valves

1.3.  video amplifier tubes

 

Age      (months)	Actual value in % of new replacement value
Less than   18	100
Less than   20	90
Less than   23	80
Less than   26	70
Less than   30	60
Less than   34	50
Less than   40	40
Less than   46	30
Less than   52	20
Less than   60	10
More than   60	0

 

2.  Actual values of valves for diagnostic equipment

Age      (months)	Actual value in % of  new replacement value
Less than   33	100
Less than   36	90
Less than   39	80
Less than   42	70
Less than   45	60
Less than   48	50
Less than   51	40
Less than   54	30
Less than   57	20
Less than   60	10
More than   60	0

3.  Actual value of rotating anode X-ray tubes with lead-sealed exposure counters         for diagnostic equipment

Number of  exposures	Actual value in % of new replacement value
Less than    10,000	100
Less than    12,000	90
Less than    14,000	80
Less than    16,000	70
Less than    19,000	60
Less than    22,000	50
Less than    26,000	40
Less than    30,000	30
Less than    35,000	20
Less than    40,000	10
More than    40,000	0

 

4.  Actual values of deep therapy X-ray tubes and valves

Period of operation (hours)OR Age (months) (whichever results in the lower actual value)		Actual value in % of       new replacement value
Period of operation (hours)	Age (months)
Less than  400	Less than  18	100
Less than  500	Less than  22	90
Less than  600	Less than  26	80
Less than  700	Less than  30	70
Less than  800	Less than  35	60
Less than  900	Less than  40	50
Less than 1000	Less than  45	40
Less than 1100	Less than  50	30
Less than 1200	Less than  55	20
Less than 1300	Less than  60	10
More than 1300	More than  60	0

                       

5.  Actual values of X-ray tubes and valves for material testing equipment

Period of operation (hours) OR  Age(months)    (whichever results in the lower actual value)		Actual value in % of       new replacement value
Period of operation or’     (hours)	Age      (months)
Less than  300	Less than  6	100
Less than  380	Less than  8	90
Less than  460	Less than  10	80
Less than  540	Less than  12	70
Less than  620	Less than  14	60
Less than  700	Less than  16	50
Less than  780	Less than  18	40
Less than  860	Less than  20	30
More than  860	More than  20	20

 

 

 

6.  Actual values of picture and pick-up tubes for TV equipment

 

After 12 months’ use, the actual values of picture and pick-up tubes shall be reduced by 3% per month down to a minimum of 20% of the new replacement values.

 

7.  Actual values of other types of tubes and valves

 

For other types of tubes and valves the actual values on the date of an occurrence shall be determined on the basis of data furnished by the supplier.

 

________________________________________________________________

 

Special condition concerning Computer Tomographs

 

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon, the Insurers shall not be liable for any demage consisting in the failure of individual construction elements or components, unless it can be proved that such damage has been caused by an external event acting on the system or by a fire generated within the system.

 

In contrast to the indemnity scales of Endorsement on “Cover for valves and tubes” incorporated in medical equipment, the following scales shall apply to the tubes indicated below built into computer tomographs:

 

1.  X-ray tubes

 

with high-voltage time meter (stationary-anode tubes): (operating hours up to)	with exposure counter (rotating-anode tubes):      (No. of exposures up to)	indemnity:                                                                     ( % )
400	10,000	100
440	11,000	90
480	12,000	80
520	13,000	70
600	15,000	60
720	18,000	50
840	21,000	40
960	24,000	30
1,080	27,000	20
1,200	30,000	10

 

 

 

2.  Tubes for voltage stabilization and regulation

 

Period of use   (months)	Indemnity                        %
36	100
39	90
41	80
44	70
47	60
49	50
52	40
55	30
57	20
60	10

 

______________________________________________________________________________

Warranty for Lightning and Overvoltage Protection Devices

 

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon, the Insurers shall only indemnify the Insured in respect of loss of or damage to electronic equipment or data media or increased cost of working as a result of lightning or overvoltage if the electronic equipment is fitted with lightning and overvoltage protection devices and alarm system and these have been installed and maintained in accordance with the recommendations of the manufacturers of the electronic equipment and the lightning and overvoltage protection devices.

 

This means that the lightning and overvoltage protection devices and alarm system

 

--- are regularly serviced by qualified personnel of the manufacturer or supplier,

 

--- are kept under supervision by trained personnel,

 

--- are provided with an automatic switch-off device complying with the latest requirements for electronic equipment and the manufactur’s recommendations.

 

______________________________________________________________________________

Warranty Concerning Air-Conditioning Plant

 

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon, the Insurers shall not indemnify the Insured in respect of any loss or damage in regard to electronic equipment, data media and increased cost of working due to the failure of the air-conditioning plant, if this air-conditioning plant is not covered against material damage and has been equipped, installed or maintained in accordance with the recommendations of the manufacturers of the electronic equipment and air-conditioning plant.

 

This means that the insured air-conditioning plant

 

---- and the alarm and switch-off devices are maintained by qualified personnel of the manufacturer or supplier at least every six months;

---- is equipped with independent sensors to monitor temperature and humidity, to detect smoke and to release visual and acoustical alarms;

---- is kept under supervision by trained personnel who are able to take all loss prevention measures necessary in the event of an alarm;

---- is provided with an automatic emergency switch-off device complying with the requirements stipulated by the manufacturers of the electronic equipment.

 

                                                                                         GO TO INDEX

______________________________________________________________________________

Engg/Gen-10/2001/27                                                             13th June, 2001

 

                        Re: Rating of ‘Passenger lift’ under MB tariff

 

            The Tariff Advisory Committee has decided to introduce tariff  item “Passenger lift” and to rate it as per tariff item “Lift for Goods” at Re. 0.50% under Group - II : Rates for Mechanical Items (Machines common to all Industries) of MB tariff.

 

            This tariff item be incorporated under Sub-heading “Lifts/Lifting Tackles” of the tariff.

 

             The decision is effective from  13th June, 2001.

Asstt.Gen.Manager                                                                                           GO TO INDEX

___________________________________________________________________________