|
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 |
|
|
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 |
|
|
6 |
Engg/Gen-62/ 2001/6 |
01/01/01 |
01/01/01 |
|
|
7 |
Engg/Gen-4/24/164/ 2001/7 |
01/01/01 |
01/01/01 |
|
|
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 |
|
|
10 |
Engg/Gen-6 /2001-10 |
28/03/01 |
31/03/01 |
|
|
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 |
---- |
|
|
13 |
Engg/Gen-6/ 2001-13 |
26/04/01 |
|
|
|
14 |
Engg/Gen-4/55/ 2001/ 14 |
04/05/01 |
04/05/01 |
|
|
15 |
Engg/Gen-4/24/164/ 2001/15 |
04/05/01 |
04/05/01 |
|
|
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 |
|
|
19 |
Engg/Gen-10/ 2001/19 |
04/05/01 |
04/05/01 |
|
|
20 |
Engg/Gen-10/ 2001/20 |
04/05/01
|
04/05/01
|
|
|
21 |
Engg/Gen-4/24/164/ 2001/21 |
04/05/01 |
---- |
|
|
22 |
Engg/Gen-10/ 2001/22 |
13/06/01 |
|
|
|
23 |
Engg/Gen-17/2001/23 |
13/06/01 |
13/06/01 |
|
|
24 |
Engg/Gen-10&17/2001/24 |
13/06/01 |
|
|
|
25 |
Engg/Gen-4/30/2001/25 |
13/06/01 |
01/01/01 |
|
|
26 |
Engg/Gen-16/2001/26 |
13/06/01 |
13/06/01 |
Electronic
Equipment Insurance : |
|
27 |
Engg/Gen-10/2001/27 |
13/06/01 |
13/06/01 |
|
| 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
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
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
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
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
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
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 PROJECTSWITH 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 siteB) 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 |