The above decision is effective from 29th January,2002.

Secretary

Re: Insurance of Railway Track Testing Coach under CPM Insurance

The Tariff Advisory Committee has decided to rate 'Railway Track Testing Coach' under CPM policy in line with locomotives under Group II-Rating Schedule.

The Group II rate of Rs.0.80% shall however be loaded by 20% for insuring this item under CPM policy.

The applicable Earthquake-extra shall be Re.0.10% irrespective of the zones.

The above decision is effective from 29th January,2002.

Secretary

Re: Rating of 'Manufacture of Computer Disk (CDs)' under 'Erection All Risks Insurance'

The Tariff Advisory Committee has decided to rate 'Manufacture of Computer Disks (CDs)' under "Plastic Goods Mfg." of EAR Tariff.

The above decision is effective from 29th January,2002.

Secretary

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

The Tariff Advisory Committee has decided to amend the existing scheme of granting discount for deleting Fire & Allied perils from EEI policies (as introduced vide Circular dtd. 4-5-01) as under:-

S.No	COVER	DISCOUNT
1.	For equipment covered under EEI Policy as also under Standard Fire and Special Peril policy and Earthquake	10% of the applicable EEI rate
2.	For equipment covered under EEI Policy as also under Standard Fire and Special peril policy without any one or two of the additional covers such as STFI or RSMTD or EQ	7.50% of the applicable  EEI rate
3	For equipment covered under EEI Policy as also under Standard Fire and Special peril policy without STFI and RSMTD and EQ	5% of the applicable EEI rate

The above decision is effective from 29th January,2002.

Secretary

Re: Rating of MLOP proposals on  Mini Hydel Power plants (below 10 MW capacity) Bio-mass Based Power Plants. (below 10 MW capacity)

Reference is drawn to TAC Circular Engg/Gen-6/Fire-Gen-102/2001-12 dtd.18th April, 2001, prescribing provisional MLOP rates and time-excess for "Power Plants" among other various types of Plants/Risks. As per this circular, all power plants, with individual capacity upto 175 MW attract a provisional MLOP rate of 1.77% and a time excess of 21 days .

It has now been decided to revise the provisional 'Time Excess' from 21 days to 14 days in respect of Mini Hydel Plants with individual capacity less than 7 MW and Bio Mass Power Plants upto 10 MW capacity.

The above decision is effective from 29th January,2002.

Secretary

Re: Deterioration of Stocks (Potatoes), insurance Coverfor Cold Storage run by DG Sets only.

Arising out of a query as to whether DOS Cover could be granted on Cold storages run by DG Sets only, the Tariff Advisory Committee clarifies that cover could be granted under such circumstances.

The FOES (Failure of (Public) Electric Supply) extension is not relevant in such cases.

Secretary

Re: Rating of Aerial Ropeway Project under EAR Policy.

The Tariff Advisory Committee has decided to rate the works related to erection of an 'Aerial Ropeway project' under EAR policy at the rate applicable to the Tariff entry provided for laying of "transmission lines" under EAR policy as under:

Rs. 4.00 / 0.05 / 0.05 / 0.30 / 10,000 / 30,000

(Excess for theft and burglary claims shall be 25% of claim amount

subject to a minimum of Rs.15,000/-).

Accordingly, it has been decided to incorporate a new tariff entry on 'Aerial Ropeway project' under EAR Insurance Tariff.

Sl.No.	Description	Rate/Excess
A-10	Aerial Ropeway project	Rate/Excess as per Item -'transmission lines' (Item T-10 of Rating Schedule)

The above decision is efective from 29th January,2002.

ENGG/Gen-4/24/2002-11                                                        29th January,2002.

Re:Rating for Extension of period of cover under project policies (CAR/EAR/MCE) with sum insured more than Rs. 100 crores  after expiry of the original policy period (Rating of Large Projects)

Reference is drawn to GR No.25 under EAR insurance tariff and GR No.21 under CAR insurance tariff, prescribing "Rates for Extension beyond policy period" for projects with sum insured upto Rs.100 crs.

The Tariff Advisory Committee has now decided to adopt the same scale of rates for large projects with sum insured exceeding Rs.100 crs. and upto Rs.1500 crs. It was further decided that in the case of projects with sum insured between Rs. 100 Crores and 1500 Crores, the extension rates shall apply only on the sum insured (as defined under 'Norms for Rating of Large Projects') at the time of extension and not on the indemnity selected for various additional covers

The above decision is effective from 29th January,2002.

Secretary

Re: Breakdown Insurance cover for Microline Wheel Alignment System

The Tariff Advisory Committee has decided to cover "Microline Wheel Alignment System (for alignment of car tyres )" under the EEI Policy.

Accordingly, a cross reference is made under MB insurance Rating Schedule - Group II (Rates for Mechanical Items - Machines common to all Industries) as under :

M
Microline Wheel Alignment System	To be rated under EEI Policy

The above decision is effective from 29th January,2002.

Secretary

Re: Machinery Insurance Policy - Indemnity provisions

Reference is drawn to Para No. 2 relating to "depreciation" under Provision No.-2: Basis of Indemnity - Standard Policy Form - Machinery Breakdown Insurance Policy reading as under.

" No deduction shall be made for depreciation in respect of parts

replaced except for ( a) wear and tear parts and (b) parts for which

the manufacturers have specified a fixed life for use and the like".

It is now clarified that parts which are not supposed to last the full life of the machine will have to be treated as wear and tear parts.

Secretary

For the purpose of this warranty an act of terrorism means an act, including but not limited to the use of force or violence and /or the threat thereof, of any person or group(s) of persons whether acting alone or on behalf of or in connection with any organisation(s) or government(s) committed for political, religious, ideological or similar purpose including the intention to influence any government and/or to put the public, or any section of the public in fear.

The warranty also excludes loss, damage, cost or expenses of whatsoever nature directly or indirectly caused by, resulting from or in connection with any action taken in controlling, preventing, suppressing or to in any way relating to action taken in respect of an act of terrorism.

If the Company alleges that by reason of this exclusion, any loss, damage, cost or expenses is not covered by this insurance the burden of proving the contrary shall be upon the Assured.”

In the event any portion of this endorsement is found to be invalid or unenforceable, the remainder shall remain in full force and effect.

2. Terrorism Damage Exclusion Warranty shall be incorporated under relevant sections ofEAR, CAR, CPM and EEI policies as under:

EAR policy—as ‘exclusion-e’ under ‘General Exclusions’

CAR policy—as ‘exclusion-e’ under ‘General Exclusions’ 

CPM policy—as ‘exception-s’

EEI policy—as ‘exclusion-i’ 

3. Coverage for Terrorism Damage: 

Terrorism Damage Exclusion Warrantycan be deleted by companies by charging additional premium as per the following schedule.

i)0.05% for the annual Engineering policies i.e EEI & CPM policies 

ii)0.5%0 per annum for the EAR & CAR policies to be charged on pro-rata basis for policy period in excess of 12 months. For shorter policies i.e for a period up-to 6 months the rate shall be 50%of annual rate and that for a period exceeding 6 months and up-to 12 months the rate shall be the full annual rate. The coverage in respect ofterrorism will be subject to limits as in item 5 below.

4. Mid-term cover. No mid-term cover shall be granted for terrorism risk.

5.Limits of Insurance

The maximum loss limit under Terrorism cover shall be Rs.200 crores for any one risk.For this purpose one risk shall be defined as one compound or one location.In respect of several insurances within the same compound /location with all Indian insurers, the maximum aggregate loss payable by all Indian insurers per compound/location shall be Rs.200 crores.If the actual aggregate loss suffered at one location is more than Rs.200 crores, the amounts payable under individual policies shall be reduced in the same proportion as Rs. 200 crores bears to the aggregate of all losses in that location. 

Premium rates shall apply on Total Sum Insured as detailed under:
 

Total Sum Insured	Premium on TSI	Overall liability
Upto 200 crs	Full rate	200crs
Over 200crs to 250crs	97.5% of Full rate	200crs
Over 250crs to 500crs	95% of Full rate	200crs
Over 500crs to 1000crs	90% of Full rate	200crs
Over 1000crs to 1500crs	85% of Full rate	200crs
Over 1500crs to 2000crs	80% of Full rate	200crs
Over 2000crs	75% of Full rate	200crs

For loss liability limits in excess of Rs. 200 crores, insurers can obtain rates from reinsurers and handle its reinsurance, subject to their chargingpremium as per item 3 for the coverage up to Rs.200 crores .

6. Deductibles:

Every claim under terrorism cover will be subject to a deductible of 0.50% of TSI and subject to aminimum of Rs. 1 lakh.

7. Deletion of Terrorism Damage Exclusion Warranty:

If the ‘Terrorism Damage Exclusion’ is deleted by payment of premium as per item 3 above, the policy will be endorsed as per the wordings given below.

Terrorism Damage Coverage Endorsement

It is hereby declared and agreed that in consideration of payment of additional premium of Rs._______, the ‘TerrorismDamage Exclusion Warranty attached to and forming part of the within mentioned policy, stands deleted. The expression/s“terrorism and/or act of terrorism” shall have the same meaning/s as contained in TerrorismDamage Exclusion Warranty.

This endorsement does not cover loss of or damage to property caused by

A)

I.total or partial cessation of work or the retardation or interruption orcessation of any process or operations or omissions of any kind.

II.Permanent or temporary dispossession resulting from confiscation, commandeering, requisition or destruction by order of the Government or any lawfully constituted Authority.

III.Permanent or temporary dispossession of any building or plant or unit or machinery resulting from the unlawful occupation by any person of such building or plant or unit or machinery or prevention of access to the same.

IV.Burglary, housebreaking, theft, larceny or any such attempt or any omission of any kind of any person (whether or not such act is committed in the course of a disturbance of public peace) in any action taken in respect of an act of terrorism.

B)

loss or damage, cost or expenses of whatsoever nature directly or indirectly caused by, resulting from or in connection with any action taken in controlling , preventing , suppressing or in any way relating to action taken in respect ofany act of terrorism.

If the Company alleges that by reason of this exclusion, any loss, damage, cost or expenses is not covered by this insurance the burden of proving the contrary shall be upon the insured.

The limit of coverage under this endorsement shall not exceed Rs. _______ (inserthere the overall liability limit).

In the event of several insurances within the same location with all Indian insurers, the maximum aggregate loss payable per compound/location by all Indian insurers shall be Rs.200 crores.If the actual aggregate loss suffered at one location in respect of all Indian insurers is more than Rs.200 crores, the amounts payable under individual policies shall be reduced in the same proportion as Rs. 200 crores bears to the aggregate of all losses with all Indian insurers in that location. 

The coverage under this endorsement is subject to an excess of 0.5% of the total sum insured subject to a minimum of Rs. One lakh for each and every claim in respect of both material damage and loss of profits combined.”

8. Treatment of Surcharge applied from 01.10.2001

A 10% surcharge on account of terrorism was applicable w.e.f 1.10.2001. All such insurance will be cancelled on pro-rata basis as on 31.3.2002 and fresh insurance will be effected w.e.f 1.4.2002 for the un-expired period with the revised rates for terrorism risks on pro-rata basis. 

In the case of insurance of risks where insurers may have already concluded reinsurance arrangements and such cancellation is not required by reinsurance arrangements, insurers will have the option to continue the present insurance (where 10% surcharge has been collected) till expiry.

Insurers may advise their operating offices suitably.

Engg/Gen-4/24/16/17/2002-1615^th March, 2002

Reg: Cover for terrorism under Engineering Policies-CECR(Civil Engineering Completed Risks)

This refers to the TAC Circular Engg/Gen-4/24/16/17/2002-14 dated 15^th March, 2002 on the above subject.Effective from 1-4-2002 the following revisedprovisions will be applicablefor terrorism coverin respect of CECR policies.

1) Terrorism cover will be a separate coverwhich can be granted only in conjunction with Riot, Strike and Malicious Damage cover (RSMD).Terrorism cover will not be given in isolation without RSMD cover.

2)The Riot, Strike, Malicious and Terrorism Damage endorsementunder the Standard CECR Policy will be renamed as Riot, Strike, Malicious Damage endorsement and will exclude terrorism damage and the relevant provision will stand amended to read as under:

Riot, Strike and Malicious Damage 

Loss of or visible physical damage or destruction by external violent means to the property insured directly caused by

a)The act of any person taking part together with others in any disturbance of the public peace (whether in connection with a strike or lockout or not) not being an occurrence mentioned in exclusion 6(a) and (b) of the CECR policy.

b)The action of any lawfully constituted authority in suppressing or attempting to suppress any such disturbance or in minimising the consequences of any such disturbance.

c)The willful act of any striker or locked-out worker done in furtherance of strike or in resistance to a lock-out resulting in visible physical damage by external violent means.

 d)The action of any lawfully constituted authority in preventing or attempting to prevent any such act or in minimising the consequences of any such act.

e)Any malicious act but excluding any omission of any kind of any person (whether or not such act is committed in the course of a disturbance of public peace) provided that the Company shall not be liable for anyloss or damage arising out of or in course of burglary, housebreaking, theft or larceny or any attempt by any person taking part therein.

This insurance does not cover –

a)Loss or earnings, loss of delay, loss of market or other consequential or indirect loss or damage of any kind or description whatsoever.

b)Loss or damage resulting from total or partial cessation of work or the retarding or interruption or cessation of any process or operation or omission of any kind.

c)Loss or damage occasioned by permanent or temporary dispossession resulting from confiscation, commandeering or requisition by any lawfully constituted authority. 

d)Loss or damage occasioned by permanent or temporary dispossession of any building or plant or unit or machinery resulting from theunlawful occupation by any person of such building or plant or unit or machinery on prevention of access to the same.

PROVIDED nevertheless that the Company is not relieved under (c) or (d) above of any liability to the Insured in respect of physical damage to the property insured occurring before dispossession or during temporary dispossession.

If the Company alleges that loss/damage is not caused by any malicious act, the burden of proving the contrary shall be upon the insured.

3) Terrorism Damage Exclusion Warranty :

Notwithstanding any provision to the contrary within this insurance it is agreed that this insurance excludes loss, damage cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any act of terrorism regardless of any other cause or event contributing concurrently or in any other sequence to the loss.

For the purpose of this endorsement an act of terrorism means an act, including but not limited to the use of force or violence and / or the threat thereof, of any person or group(s) of persons whether acting alone or on behalf of or in connection with any organisation(s) or government(s), committed for political, religious, ideological or similar purpose including the intention to influence any government and/or to put the public, or any section of the public in fear.

The warranty also excludes loss, damage, cost or expenses of whatsoever nature directly or indirectly caused by, resulting from or in connection with any action taken in controlling, preventing, suppressing or in any way relating to action taken in respect of any act of terrorism.

If the Company alleges that by reason of this exclusion, any loss, damage, cost or expenses is not covered by this insurance the burden of proving the contrary shall be upon the insured.

In the event any portion of this endorsement is found to be invalid or unenforceable, the remainder shall remain in full force and effect.

4)Mid-term Cover :No mid-term cover shall be granted for RSMD and Terrorism. 

5) Rate for Terrorism Cover :

Premium will be charged separately for covering terrorism risk atRe.0.50 per mille.

The above rate will be charged separately on the total sum insured for Material Damage and Loss of Profit.

6) Limit of Insurance for terrorism :

The maximum loss limit under Terrorism cover shall be Rs.200 crores for any one risk (MD+LOP).For this purpose one risk shall be defined as one compound or one location.In respect of several insurances within the same compound / location with all Indian insurers, the maximum aggregate loss (MD+LOP) payable per compound / location shall be Rs.200 crores.If the actual aggregate loss suffered at one compound / location is more than Rs.200 crores, the amounts payable under individual policies shall be reduced on pro rata basis. 

Premium rates shall apply on Total Sum Insured as detailed under:
 

TotalSum Insured (MD+LOP)(Rs) (TSI)	Premium on Total Sum Insured	Overall Liability (MD+LOP)Cap
Upto 200 crores	Full rate	200 crores
Over 200 crs to 250 crs	97.5 % of full rate	200 crores
Over 250 crs to 500 crs	95 % of full rate	200 crores
Over 500 crs to 1000 crs	90 % of full rate	200 crores
Over 1000 crs to 1500 crs	85 %of full rate	200 crores
Over 1500 crs to 2000 crs	80 %of full rate	200 crores
Over 2000 crs	75 %of full rate	200 crores

For loss liability limits in excess of Rs. 200 crores, insurers can obtain rates from reinsurers and handle its reinsurance, subject to their charging premium as per item 6 for the coverage up to Rs.200 crores.

7) Deductibles : Every claim under terrorism cover will be subject to a deductible of0.5 % of TSI subject to a minimum of Rs. 1 lakh

 8) Terrorism Damage Cover Endorsement : When the insured opts for Terrorism Damage cover by paying additional premium as provided under item no (5) above, cover will be granted by attaching the following endorsement:

“It is hereby declared and agreed that in consideration ofpayment of additional premium of Rs._______, the TerrorismDamage Exclusion Warranty of the Riot, Strike, Malicious Damage provision forming part of the within mentioned policy stands deleted. The expression/s“terrorism and/or act of terrorism” shall have the same meaning/s as contained in TerrorismDamage Exclusion Warranty.

This endorsement does not cover loss of or damage caused by

A)

a)Loss or earnings, loss of delay, loss of market or other consequential or indirect loss or damage of any kind or description whatsoever.

b)Loss or damage resulting from total or partial cessation of work or the retarding or interruption or cessation of any process or operation or omission of any kind.

c)Loss or damage occasioned by permanent or temporary dispossession resulting from confiscation, commandeering or requisition by any lawfully constituted authority. 

d)Loss or damage occasioned by permanent or temporary dispossession of any building or plant or unit or machinery resulting from theunlawful occupation by any person of such building or plant or unit or machinery on prevention of access to the same.

PROVIDED nevertheless that the Company is not relieved under (c) or (d) above of any liability to the Insured in respect of physical damage to the property insured occurring before dispossession or during temporary dispossession.

B)

loss or damage, cost or expenses of whatsoever nature directly or indirectly caused by, resulting from or in connection with any action taken in controlling , preventing , suppressing or in any way relating to action taken in respect ofany act of terrorism.

If the Company alleges that by reason of this exclusion, any loss, damage, cost or expenses is not covered by this insurance the burden of proving the contrary shall be upon the insured.

The limit of coverage under this endorsement shall not exceed Rs. _______ (inserthere the overall liability limit for Material Damage + Loss of Profit). In respect of several insurances within the same compound / location with all the Indian insurers, the maximum aggregate loss (MD+LOP) payable per compound /location shall be Rs.200 crores.If the actual aggregate loss suffered at one compound / location is more than Rs.200 crores, the amounts payable under individual policies shall be reduced on pro rata basis. 

The coverage under this endorsement is subject to an excess of Re. 0.5% of the total sum insured subject to a minimum of Rs. 1 lakhfor each and every claim in respect of both material damage and loss of profits combined.”

9) Treatment of surcharge applied from 1-10-2001 :

10% surcharge on account of terrorism was applicable w.e.f 1-10-2001.All such insurance will be cancelled on pro rata basis as on 31-3-2002 and fresh insurance will be effected w.e.f 1-4-2002 for the unexpired period with the revised rates for terrorism risks on pro-rata basis.

In the case of insurance of risks where the insurers may have already concluded reinsurance arrangements and such cancellation is not required by reinsurance arrangements, insurers will have the option to continue the present insurance (where 10% surcharge has been collected ) till expiry.

Insurers areadvisedto informtheir operating offices suitably. 

Secretary
                                                                                                                                                                                                                 GO TO INDEX

Engg/Gen-4/24/16/17/2002-1726th April, 2002

Re: Cover for Terrorism under Engineering Policies

Reference is drawn to Circulars :

i)Engg/Gen-4/24/16/17-14 dtd. 11-3-2002

ii) Engg/Gen-4/24/16/17-15 dtd. 15-3-2002

giving details of rates/terms to beadopted for coverage of ‘terrorism’.

Further reference is also drawn to Circular :

FT/3/2002 dtd. 8-4-02

revising the rates, terms for coverage of ‘terrorism’ :

Arising out of representations seeking clarifications on the Circular dtd. 8-4-02 referred to above, it is clarified that all “Engineering Policies” viz. EAR, CAR, CPM, EEI & CECR will be treated at par with industrial risks.

Secretary
                                                                                                                                                                                                          GO TO INDEX

Engg/Gen-4/24/2002-1829th October, 2002.

Volume Discount under EAR/SCE and CAR insurances

Reference is invited to Item 2 under Annexure - I - “Norms for Rating of Large ProjectswithSum Insured above Rs.100 crs and upto Rs.1500 crs.” underEAR/SCE and CAR insurance tariffs, prescribing scheme of Volume Discount .

TAC has been receiving queries as to whether volume discount could begranted on the basis of total Sum Insured of a project where each of its units/sections are rated ‘per-se’ based on individual sums insured and periods of erection or construction as the case may be. 

It is clarified that volume discount in such cases shall be based on the sum insured of the respective units/sections and not on the total sum insured of the project.

It is further clarified that as per the tariff it is not permissible to issue a single policy with different periods of insurance for different units/sections of the project. 

Secretary

Re : Electronic Equipment Insurance Policy - Floater Policy.

Arising out of a representation, Tariff Advisory Committee has agreed for issuance of ‘floater policy’ covering electronic equipment anywhere in India subject to the following :

i) to restrict the floater to named locations only .

ii) EEI Policy shall not be extended to cover transit risks from one location to the other

iii) floater extra of 10% to be charged

Insurers may suitably incorporate a questionnaire in the "proposal form" to provide cover at multi locations.

Secretary
                                                                                                                                                                 GO TO INDEX __________________________________________________________________

Engg/Gen-10 /2002-20                                                                                             30th December, 2002

Re: Clarification under MB Insurance Policy - Coverage of Imported Machinery.

Reference is drawn to the ‘declined list’ of machines which are excluded under MB tariff.

Tariff Advisory Committee has decided to delete the entry ‘any imported machinery which cannot be repaired in the country’ from the ‘declined list’.

GO TO INDEX

________________________________________________________________________

Engg/Gen-16/2002-21                                                                                          30th December, 2002

Re: Discount for opting Higher Excess under Electronic Equipment Policy for Equipment with value upto Rs. 1 lakh

Tariff Advisory Committee has decided to amend the ‘Higher Excess Amounts’ under the scheme for ‘Discount for opting Higher Excess’ (Sr.No.4)of ‘Electronic Equipment Insurance’ Tariff as below for Equipment with value upto Rs. 1 lakh :

Discount for opting Higher Excess :
 

S.No.	HIGHER EXCESS	DISCOUNT
	a) Equipment with value upto Rs. 1 lakh
	i) Equipment & External Data Media
1	7.5% of the claim amount subject to a minimum of Rs. 3,000/-	10%
2	10% of the claim amount subject to a minimum of Rs. 5,000/-	20%
3	12.5% of the claim amount subject to a minimum of Rs.10,000/-	30%
4	15% of the claim amount subject to a minimum of Rs. 20,000/-	42.5%
ii) For Winchester Drive (Hard Disc)
1	12.5% of the claim amount subject to a minimum of Rs. 5,000/-	10%
2	15 % of the claim amount subject to a minimum of Rs. 12,500/-	20%
3	17.5% of the claim amount subject to a minimum of Rs.25,000/-	30%
4	20 % of the claim amount subject to a minimum of Rs. 50,000/-	42.5%

                                                                                                                                                                                                  GO TO INDEX

_______________________________________________________________________

Engg/Gen-24/VII/2002-22 3                                                                                0th December, 2002

Re: CAR Insurance - ‘Refurbishment of existing Sewage System’

Tariff Advisory Committee has decided to introduce a tariff entry under CAR Insurance as under:
 

Risk Code	Sl No	Risk	Premium Rates (%o)		Excess - 5% of claim amount subject to Minimum of Rs.
			Minimum Rate upto first 3 months	Addl.Rate per month beyond 3 months	Normal	AOG/Major Perils/ Collapse
1	2	3	4	5	6	7
-	16 B	Refurbishment of existing Sewage Systems	2.50	0.05	100,000	200,000

                                                                                                                                                              GO TO INDEX

Re: Discount for higher excess under CAR/EAR Insurance of Projects

with S.I. less than Rs.100 crs.

Tariff Advisory Committee has revised the scheme for ‘Higher Excess Discount’ under CAR/EAR Insurances as under.
 
 

Excess		Discount in premium
2 times Normal Excess		5%
5 "	"	10%
10 "	"	20%
20 "	"	30%
30 "	"	35%
40 "	"	40%
50 "	"	45%
100 "	"	50%
>100 "	"	55%

 

Re: Cover for CPM equipment as part of CAR and EAR/SCE Projects

Reference is drawn to G.R No.24 (under EAR tariff) and G.R.No.20 (under CAR tariff) prescribing rates for CPM equipment forming part of the EAR or CAR projects.

Tariff Advisory Committee has decided to modify the relevant sections as under :

" CONSTRUCTION MACHINERY PLANTS AND EQUIPMENTS

A separate Sum Insured is to be fixed for Construction Plant, Machinery and Equipments used for projects Insured under CAR or EAR policies.

a) Sum Insured of CPM equipment not exceeding 5% of EAR/SCE OR CAR Sum Insured or Rs 25 lakhs whichever is lower

Where the Sum Insured for Construction Plant, Machinery and Equipment does not exceed 5% of the Sum Insured for EAR/SCE (OR CAR) Insurances, or Rs.25 lakhs whichever is lower, the same can be covered under the EAR/SCE (OR CAR) Policy, but at rates, terms and excesses, as per tariff on ‘Contractor’s Plant and Machinery Insurance’.

b) Sum Insured for CPM equipment exceeding 5% of EAR/SCE OR CAR Sum Insured or Rs 25 lakhs whichever is lower

Where the Sum Insured for Construction Plant, Machinery and Equipment exceeds 5% of Sum Insured for EAR/SCE (OR CAR) Insurance or Rs. 25 lakhs whichever is lower, the same should be separately covered under the Contractor’s Plant and Machinery Policy at rates and excesses as per Tariff on ‘Contractor’s Plant and Machinery Insurance".

                                            &nbs