|
Circular No. |
Date of Circular |
Effective Date |
Subject |
|
|
13/03/03 |
13/03/03 |
Comprehensive Package Policy - CPM Equipment
|
| |
|
17/03/03 |
17/03/03 |
MB Insurance rating of higher
capacity TG Sets |
| |
|
17/03/03 |
17/03/03 |
Machinery Insurance cover for “Thermo Vacuum
Chamber” |
| |
|
17/03/03 |
17/03/03 |
Time excess under MLOP Insurance |
| |
| Engg/Gen-10/2003-5 | 7/04/03 | 7/04/03 | Rating under MB Tariff : Group IV - Fertilizer plants/ Petrochemicals plants/Refineries | |
| Engg/Gen-10 & 17/2003-6 | 7/04/03 | 7/04/03 | Special Exclusion No. 2 of MB Policy | |
| Engg/Gen-10 /2003-7 | 7/04/03 | 7/04/03 | MB Policy - Extension of time span between successive overhauls for turbines and turbo generator sets | |
| Engg/Gen-4/2003-8 | 7/04/03 | 7/04/03 | Rating of plant manufacturing "Graphite Electrodes" under EAR Insurance | |
| Engg/Gen-24/2003-9 | 7/04/03 | 7/04/03 | (i) Volume Discount under CAR tariff | |
| Engg/Gen-17/2003-10 | 7/04/03 | 7/04/03 | Rating of ‘Merry go-round arrangement on rails’ under CPM insurance | |
| Engg/Gen-4 &24 /2003-11 | 7/04/03 | 7/04/03 | EAR and CAR Insurance: Projects with S.I. less than Rs.100 Crs.Higher Excess Discount for Additional Covers | |
| Engg/Gen-24/2003-12 | 7/04/03 | 7/04/03 |
CAR Insurance- Rating of Bridges on rivers/creeks, Dams/Coffer dams, Aqua ducts etc., |
|
| Engg/Gen- 4 /2003-13 | 7/04/03 | 7/04/03 | Rating of " Laying Fibre Optic Cables below Sea Bed "- under EAR Insurance | |
| Engg/Gen-4&24/2003-14 | 4/11/03 | 1/12/03 | Maintenance Visits Cover’ and ‘Extended Maintenance Cover’ | |
| Engg/Gen-10/2003-15 | 4/11/03 | 1/12/03 | MB Insurance - Rating of AC/DC Generators under Group I - ‘Rate Schedule’ | |
Comprehensive Package Policy - CPM Equipment
The Tariff Advisory Committee in its 4th meeting held on 25-8-99 had considered a proposal to allow the insurers to issue contingency policy on ‘FIRST LOSS BASIS’ on CPM equipment where there were difficulties experienced by the insureds in declaring values of the individual CPM equipment, particularly in the case of large projects and considering the multifarious covers like transit risks, internal breakdowns, etc., etc., required in such projects.
It was decided that the Insurance Companies may consider proposals for
contingency policy subject to adequate R.I. support including cover on First
Loss basis where there was difficulty in providing individual Sum Insured for
various machineries at different locations.
Arising out of representations from insurers for reviewing the above decision, the TAC in it’s 13th meeting held on 10th Feb. 2003, decided that the provision for issuing Contingency Cover could be continued subject to the following:
i) The rates and terms for tariff components should be as per tariff. For MB cover a minimum additional rate of 0.70% should apply over and above the applicable CPM Tariff rate. Premium for non-tariff covers should be in addition to the premium applicable for tariff covers.
ii) Sum Insured should be on ‘reinstatement value’ basis as in CPM/MB policies. In other words, First-loss Policies would not be allowed.
Secretary
________________________________________________________________________
Re: MB Insurance rating of higher capacity TG
Sets
Reference is drawn to the Item No. 2(b)- “Turbo Generator Sets with capacity upto 50 MW”, under Group-1, ‘Rate Schedule’ of MB tariff. The Tariff Advisory Committee has decided that the existing rate of 1.50% for sets upto 50 MW capacity shall also apply for sets upto 500 MW. Accordingly, the tariff entry is modified as under:
|
Group I - Electrical Machinery installed in Plants other than Cold Storages and Ice Plants | ||||
|
Risk Code |
Sl. No. |
Item |
Rate (%) |
Excess |
|
102416
|
2(b) |
Turbo Generator Sets with capacity upto 500 MW |
1.50 |
As per tariff |
|
N.B:For higher capacity sets beyond 500MW, reference shall be made to Committee | ||||
Insurers are requested to make a note of the change and advise the operating offices accordingly.
Secretary
Re: Machinery Insurance
cover for “Thermo Vacuum Chamber”
The Tariff Advisory Committee has decided to introduce a tariff entry for “Thermo Vacuum Chamber” under MB insurance. The new tariff entry will be as under:
“ Group I : Mechanical items(Machines common
to all Industries)
Thermo Vacuum
Chamber
Rate
: Rs.
0.75%
Excess : As per tariff
N.B: 1) The equipment
as a whole is to be insured.
2) No MB cover can be given for refrigerants
”
Insurers are requested to make a note of the change and advise the
operating offices accordingly.
Secretary
GO TO INDEX _______________________________________________________________________
Re: Time excess under MLOP Insurance
This refers to the Circular No. Engg/Gen-6/Fire-Gen-102/2001-12 dtd. 18th April, 2001.
Arising out of a request from one
of the insurers, TAC has clarified
that the ‘Time-excess’, referred to in the above Circular shall apply on the
gross profit affected following the damage.
Insurers are requested to take note of the change and advise the
operating offices accordingly.
Secretary
Engg/Gen-10/2003-5 7th April, 2003
Re: Rating under MB Tariff : Group IV - Fertilizer plants/Petrochemicals plants/Refineries
Reference is drawn to rating of Item (e) - ‘Pumps and their drives’ under Group IV - "Fertiliser Plants/Petrochemical Plants/Refineries" Section of MB Tariff. Arising out of representation from an insurer, the Tariff Advisory Committee has modified the above tariff entry as under:-
|
(e) Pumps and their Drives | ||||
|
Types of Pumps |
Pump |
Drives | ||
|
Motor Driven |
Turbine/Engine Driven | |||
|
a) |
Boiler Feed Water Pump |
1.50 % |
1.50 %
|
1.75 % |
|
b) |
Pumps handling water (other than Boiler Feed Water Pumps) |
0.75 % |
||
|
c) |
Other pumps |
1.25 % |
||
|
N.B.: If a single value is given for the entire pump set, the higher rate of the ‘drive’ shall apply overall | ||||
The following tariff entries are deleted in view of the above modification.
|
Sr. No. |
Item No |
Rate % |
|
402,214 |
k |
Methanol Pump with Motor |
1.25 % |
|
402,314 |
l |
Ammonia Pump with Motor |
1.25 % |
|
402,414 |
m |
Carbomate Pump with Motor |
1.25 % |
|
402,714 |
o |
Liquid Oxygen Pump with Motor |
1.25 % |
|
402,814 |
p |
Fuel Oil Pumps with Motor |
1.25 % |
Insurers are requested to make a note of the change and advise the operating offices accordingly.
Secretary
_____________________________________________________________________________
Engg/Gen-10 & 17/2003-6 7th April, 2003
Re: Special Exclusion No. 2 of MB Policy
Reference is drawn to ‘Special Exclusion No.2’ of MB Policy reading as under :-
"Loss of or damage to belts, ropes, chains, rubber tyres, dies, moulds, blades, cutters, knives or exchangeable tools, engraved or impression cylinders or rolls; objects made of glass, porcelain, ceramics, all operating media (e.g. lubricating oil, fuel, catalyst, refrigerant, dowtherm) felts, endless conveyor belts or wires; sieves, fabrics, heat resisting and anti-corrosive lining and parts of similar nature, packing material, parts not made of metal (except insulating material) and non-metallic lining or coating of metal parts; unless loss or damage to the equipments/machinery is indemnifiable in terms of the policy."
Arising out of representations received from insurers, that universally loss or damage to the above items are excluded even if there is loss or damage to main equipment/machinery, it has been decided to delete the words ‘unless loss or damage to equipments/ machinery is indemnifiable in terms of the policy’ from special exclusion No.2’
The amended ‘Special Exclusion No.2’ will read as under :-
"Loss of or damage to belts, ropes, chains, rubber tyres, dies, moulds, blades, cutters, knives or exchangeable tools, engraved or impression cylinders or rolls; objects made of glass, porcelain, ceramics, all operating media (e.g. lubricating oil, fuel, catalyst, refrigerant, dowtherm) felts, endless conveyor belts or wires; sieves, fabrics, heat resisting and anti-corrosive lining and parts of similar nature, packing material, parts not made of metal (except insulating material) and non-metallic lining or coating of metal parts."
Insurers are requested to make a note of the change and advise the operating offices accordingly.
Secretary
___________________________________________________________________________
Engg/Gen-10 /2003-7 7th April, 2003
Re:MB Policy - Extension of time span between successive overhauls for turbines and turbo generator sets
Reference is drawn to the General Regulation No. 12 under MB Tariff and Circular Engg/Gen-10/2001/20 dtd. 4th May, 2001, stipulating time span between successive overhauls for ‘turbines’ and ‘turbo generator sets’.
Arising out of representation from an insurer, the Tariff Advisory Committee has decided to introduce rates and terms for extending the interval between successive overhauls for the above equipment, beyond 64,000 hrs/8 years and upto 72,000 hrs/9 years.
The existing provision is amended to read as under:
|
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 years |
Excess shall be 37.5% of claim subject to a minimum of 200% of tariff excess |
|
Beyond 56,000 hrs/7 years and upto 64,000 hrs/8 years |
Excess shall be 50% of claim subject to a minimum of 300% of tariff excess |
|
Beyond 64,000 hrs/8 years and upto 72,000 hrs/9 years |
Excess shall be 50% of claim subject to a minimum of 500% of tariff excess and subject to compliance with manufacturer’s recomendations and satisfactory report by the insurance company’s engineer. |
Insurers are requested to make a note of the change and advise the operating offices accordingly.
Secretary
_____________________________________________________________________________
Engg/Gen-4/2003-8 7th April, 2003
Re: Rating of plant manufacturing "Graphite Electrodes" under EAR Insurance
Arising out of an insurer’s request to fix rates and terms on a proposal for erection of a plant manufacturing ‘Graphite Electrodes’, the Tariff Advisory Committee decided to rate the proposal as per rates and terms applicable for tariff item ‘Furnace (oil /gas fired)’ under EAR tariff as given below. Accordingly a new tariff entry has been introduced as under:
|
Risk Code
|
Sl No
|
Description
|
Rate for 1st Month+ 1 month testing
(Rs.%0) |
Rate for 1 month or part thereof, for subsequent 10 months
(Rs.%0) |
Rate for 1 month or part thereof, for period exceeding 12 months
(Rs.%0) |
Rate for 1 month or part thereof, for testing period extension within policy period (Rs.%0) |
Excess per claim is 5% of claim amount subject to minimum of Rs. | |
|
Normal |
Testing period | |||||||
|
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
|
70603 |
9 |
Graphite Electrodes Plant |
2.50 |
0.05 |
0.05 |
0.30 |
15,000 |
40,000 |
Insurers are requested to make a note of the change and advise the operating offices accordingly.
Secretary
_____________________________________________________________________________
Engg/Gen-24/2003-9 7th April, 2003
Re:(i) Volume Discount under CAR tariff
(ii) Earthquake Cover under CAR Tariff
Reference is drawn to the below mentioned ‘General Regulations’ appearing under the CAR tariff.
General Regulation No. 6 : "Computation of Premium"
General Regulation No. 9 : "Additional Rates for Earthquake"
Arising out of representations from insurers, Tariff Advisory Committee has amended the above regulations as under:
G.R. No. 6 : "Computation of Premium"
A) Premium shall be computed for the total period commencing from :-
i) Commencement of work OR
ii)Date of arrival of the first consignment at the site of erection
B) Volume discount:
i) No Volume discount should be granted for projects with Sum Insured upto Rs.100 crores.
ii) For projects with Sum Insured above Rs.100 Crs and upto Rs.1500 Crs, the applicable Volume Discount shall be as per ‘Annexure-1’ of CAR tariff (Norms for rating of Large projects)
iii) Volume Discount will not be applicable for the following extensions :
a) Additional Rate for risks situated in Earthquake zone I & II
b) Additional Rate for testing of second hand machinery
c) Policy Extension Rates
d) Maintenance Period Rate
e) Air freight
f) Additional Custom Duty
g) Fabricators premises extension
h) Intermediate Storage
Sheet ½ of C/R: ENGG/7/3/2003 cont’d on sheet 2/2
G.R.No. 9 : "Additional Rates for Earthquake(Fire & Shock) Perils"
Irrespective of the Sum Insured for CAR the following additional rates are to be charged over the CAR Rate for risks located in Earthquake Zones (as defined in the Fire Tariff).
|
Zone |
Applicable rate (%o) per annum |
|
Zone - I |
1.00 |
|
Zone – II |
0.50 |
|
Zone – III |
Nil |
|
Zone – IV |
Nil |
-Notes
a) These additional rates take care of Earthquake (Fire and Shock) perils only.
b) These additional rates are to be charged on pro-rata basis for period shorter than one year.
c) All Acts of God perils other than Earthquake (Fire and shock) are taken care of in the CAR Rates prescribed. However no reduction in the rates can be allowed for excluding any of these perils.
d) Earthquake cover is optional in both the Zones I & II , but this cannot be opted mid-term or for part of the total CAR period. Thus these extras (viz Rs.1.00 per mille per annum for Risks in Zone I and Rs. 0.50 per mille per annum for risks in Zone II) are to be charged for total CAR period (including all extensions).
e) Earthquake cover can be granted on first loss basis with Sum Insured limits of 20% (OR 10%) of the total Sum Insured at the rates of 50% (OR 40%) of the tariff rate calculated on the total SI.
Insurers are requested to make a note of the change and advise the operating offices accordingly.
Secretary
GO TO
INDEX <![endif]>
_____________________________________________________________________________
Engg/Gen-17/2003-10 7th April, 2003
Re: Rating of ‘Merry go-round arrangement on rails’ under CPM insurance
Reference is drawn to the ‘rate schedule’ under CPM insurance tariff.
Arising out of representations from insurers, the Tariff Advisory Committee has decided to rate ‘Merry go-round arrangement on rails’ under CPM tariff at Rs.1.25% with applicable tariff excess.
Accordingly the present tariff entry is amended to read as under:
"Rating of General Items:
2. Merry Go Round Systems on Rails
Contractors Plant and Machinery Insurance cover for ‘Merry-go-Round arrangement on Rails’ (in respect of locomotives and wagons only) may be granted as an extension of CPM Policy. The applicable rate shall be Rs.1.25% with applicable tariff excess.
The limit for TPL extension under such cover should not exceed Rs. 1 crore for any one accident as well as the entire policy period. Also, re-instatement of sum insured after a loss shall not be allowed."
Insurers are requested to make a note of the change and advise the operating offices accordingly.
Secretary
GO TO
INDEX <![endif]>
_____________________________________________________________________________
Engg/Gen-4 &24 /2003-11 7th April, 2003
Re: EAR and CAR Insurance: Projects with S.I. less than Rs.100 Crs.Higher Excess Discount for Additional Covers
Reference is drawn to the ‘higher excess discount’ scheme as brought out in the Committee’s Circular Engg/Gen-4/24/2002-23 dtd 30-12-2002, for projects with SI less than Rs.100 Crs., under EAR and CAR insurance.
Arising out of an insurer’s request, the Tariff Advisory Committee has decided to extend ‘higher excess discount’ as per the existing scheme on additional covers also.
The existing provision is amended to read as under:
|
Gen.Reg. 12-A: Higher Excess Discount Scheme for Projects with S.I. less than Rs.100 cr. | |||
|
Higher Excess opted |
Discount |
Higher Excess opted |
Discount |
|
2 times |
5 % |
40 times |
40 % |
|
5 " |
10 % |
50 " |
45 % |
|
10 " |
20 % |
100 " |
50 % |
|
20 " |
30 % |
>100 " |
55 % |
|
30 " |
35 %
|
||
|
NB: The scale of discounts shall apply for all additional covers when"higher excess" is opted. | |||
Insurers are requested to make a note of the change and advise the operating offices accordingly.
Secretary
GO TO
INDEX <![endif]>
_____________________________________________________________________________
Engg/Gen-24/2003-12 7th April, 2003
Re: CAR Insurance- Rating of Bridges on rivers/creeks, Dams/Coffer dams, Aqua ducts etc.,
Reference is drawn to the present CAR tariff entry- Risk Code-111127, Sl. No. 11- "Bridges on rivers/creeks, dams/coffer dams, aqua ducts, via ducts, barrages, weir cum cause way, structures/works in water".
Arising out of a representation from an insurer for rating of only the‘sub-structure’ of a bridge, the Tariff Advisory Committee has amended the above tariff entry 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 |
|
111127 |
11 |
Bridges on rivers/creeks, Dams/Coffer dams, Aqua ducts, Via ducts, Barrages, Weir cum cause way, Structures/works in water |
6.00 |
0.10 |
150,000 |
500,000 |
|
Note:- In respect of bridges, the above rates will be applicable only when both sub-structure and super-structure are covered. Otherwise 50% loading shall be applicable on the CAR rate and excess shall be 1.5 times the tariff excess. | ||||||
Insurers are requested to make a note of the change and advise th