ENGINEERING CIRCULARS 2004
Circular No. Date of Circular Effective Date Subject
Engg/Gen-12/2004/1 25/3/2004   Boiler & Pressure Plant Insurance Tariff
Engg/Gen-4/2004/2 25/3/2004   EAR/SCE Insurance Tariff : Test Run Definition for Thermal Power Plants
Engg/Gen-4/2004/3 25/3/2004   Rating of Oil/Gas Pipeline under EAR Insurance
Engg/Gen-10/2004/4 7/5/2004   Rating under MB Tariff : Group IV - ‘Fertiliser Plant/ Petrochemical Plants/Refineries’
Engg/Gen-10/16/2004/5 7/5/2004   General Regulations under MB/EEI/CPM Tariffs -Sequence of Computation of Premium Rate
Engg/Gen-16/2004/6 7/5/2004  

Rating under MB Tariff : Group II - ‘Mechanical Items’

Engg/Gen-16/2004/7 7/5/2004   Higher Excess scheme under EEI Tariff
Engg/Gen 4/2004/8 16/6/2004  

 Rating of Gas Turbines/Combined Cycle Power Plants with Capacity above 200 MW    

Engg/Gen-10/17/16/62/2004/9           20/7/2004 General Regulations under MB/CPM/EEI & DOS (Potato) Tariffs - ‘Bonus Malus’ scheme.
Engg/Gen-5/2004/10  20/7/2004 Rating of Tunnels under CAR insurance Tariff

Engg/Gen-12/2004/1                                             25th March, 2004

Re: Boiler & Pressure Plant Insurance Tariff

Reference is drawn to General Regulations of Boiler & Pressure Plant Insurance Tariff.

Arising out of a representation from an insurer, it is clarified that the provisions appearing under G.R.27 - 'Rules for Cancellation' of M.B. Tariff are applicable to 'Boiler & Pressure Plant Insurance' also.

Insurers are requested to take note and advise their operating offices accordingly.

Secretary

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___________________________________________________________________________ Engg/Gen-4/2004/2                                                                         25th March, 2004

Re: EAR/SCE Insurance Tariff : Test Run Definition for Thermal Power Plants

Reference is drawn to the General Regulation No.27 under EAR/SCE Insurance Tariff reading as under:

'The entire Power Station machinery are deemed to have commenced their first test operation or test loading from the date of synchronisation of the Turbo Generator set with the grid system/bus bar provided the date of synchronisation is within 72 hours from the date of introduction of steam into turbine and shall continue till the Turbo Generator Set is operated at full load for a continuous period of 72 hours or until expiry of testing period granted under the policy whichever is earlier. If, however, the date of synchronisation exceeds 72 hours from the date of introduction of steam of the first trial operation test loading is deemed to have commenced from the date of introduction of steam into the turbine of the Turbo Generator set.'

Arising out of representation from an insurer, Tariff Advisory Committee has decided to charge an additional rate of Re.1.00%o per month or part thereof if the trial operation at full load is allowed to be conducted for periods in excess of 72 hours and upto 720 hrs..

Insurers are requested to take note and advise their operating offices accordingly.

Secretary

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Engg/Gen-4/2004/3                                                                     25th March, 2004

Re: Rating of Oil/Gas Pipeline under EAR Insurance

Reference is drawn to "Rate Schedule" under EAR Tariff .

For easy reference, the tariff entries 'Oil/Liquid Chemical/Liquid Petroleum products Pipelines' and 'Gas pipelines' are grouped together under a single heading 'Laying of Oil & Gas Pipelines' as under:
Risk Code

Sl

No

Description

Rate for 1st Month+ 1 month testing

(Rs.%o)

Rate for 1 month or part thereof, for subsequent 10 months

(Rs.%o)

Rate for 1 month or part thereof, for period exceeding 12 months

(Rs.%o)

Rate for 1 month or part thereof, for testing period extension within policy period

(Rs.%o)

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
'Laying of Oil & Gas Pipelines'

140308

a) Oil/Liquid Chemical/

Liquid Petroleum products Pipelines

3.50

0.15

0.20

0.50

100,000

500,000

070110

b) Gas Pipe lines 4.00 0.15 0.20 0.50 100,000 500,000

Insurers are requested to take note and advise their operating offices accordingly.

Secretary

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Engg/Gen-10/2004/4                                                             7th May, 2004.

Re: Rating under MB Tariff : Group IV - ‘Fertiliser Plant/

                                                Petrochemical Plants/Refineries’

Based on the rating of specific case/s in the past, a tariff entry has been introduced for Ammonia Converter under Group IV - ‘Fertiliser Plant/Petrochemical Plants/Refineries’ reading as under:

Risk Code

Item

Rate (%)

Excess

401616

Ammonia Converter

2.00

As per tariff

Insurers are requested to take note and advise their operating offices accordingly.

Secretary

                                                                                                GO TO INDEX

_________________________________________________________________________

Engg/Gen-10/16/17/2004/5                                                             7th May, 2004

Re: General Regulations under MB/EEI/CPM Tariffs -

Sequence of Computation of Premium Rate

Arising out of representation from an insurer, it is clarified that the following sequence should be adopted for computation of the final rate:

MB/EEI policies

CPM policy (other than EQ)

EQ extension under CPM policy

1

Basic Rate

1

Basic Rate

Basic rate *

2

Apply claims experience discount/loading on (1) above

2

Add 10% floater extra on rate as in (1) (if applicable)

Not applicable

3

Net rate after applying higher excess discount on (2) above

3

Add 50% extra on 1/1+2 as applicable for equipment working underground

Not applicable

   

4

Apply claims experience discount/loading on 1/1+2/1+2+3/1+3 above as applicable

As basic rate.

   

5

Net rate after applying higher excess discount on (4) above

Net rate after applying higher excess discount on (3) above

N.B.: 1.The net rate shall not be less than 50% of the basic rate.

* In case of Floater Policy, the basic rate shall be the rate applicable for the highest zone (E.Q.)

Insurers are requested to take note and advise their operating offices accordingly.

Secretary

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_______________________________________________________________________

Engg/Gen-16/2004/6                                                                     7th May, 2004.

Re: Rating under MB Tariff : Group II - ‘Mechanical Items’

A tariff entry for ‘Electrostatic Precipitators’ under Group II - ‘Mechanical Items’ of MB tariff reading as under has been introduced.

 

Risk Code

Item

Rate ( % ).

Excess

205708

Electrostatic Precipitators

0.60

As per Tariff

Insurers are requested to take note and advise their operating offices accordingly.

Secretary

                                                                                                GO TO INDEX

___________________________________________________________________________

Engg/Gen-16/2004/7                                                                                             7th May, 2004

Re: Higher Excess scheme under EEI Tariff

It is clarified that Circular No.Engg/Gen-16/2002/21 dated 30.12.2002 would supercede the provisions of earlier Circular No.Engg/Gen-10/16/17/2001/18 dated 4th May, 2001.

Insurers are requested to take note and advise their operating offices suitably

Secretary

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Engg/Gen-4/2004/8                                                                                                            16th June, 2004.

                                 Re: Rating of Gas Turbines/Combined Cycle Power Plants with Capacity above 200 MW             

               

                Reference is drawn to items (iv), (v) & (vi) of tariff entry ‘Gas Turbine/Combined Cycle Power Plants’ under “Rate Schedule” of EAR Tariff. With immediate effect, these items stand replaced by the following table:

Gas Turbines/Combined Cycle Power Plants: (GT/CCPP)

Risk code

Sr. No.

 Description

Rate for 1st Month + 1 month testing        (Rs. %o)    

 

Rate for 1 month or part thereof, for subsequent 10 months      (Rs. %o)

Rate for 1 month or part thereof, for   period   exceeding 12 months   (Rs. %o)

Rate for 1 month or part thereof, for testing period  extension within policy  period      (Rs. %o)

Excess per claim is 5% of claim amount subject to minimum of  Rs.

Normal/ Testing period.

073310

---

iv) Above 100 MW & upto 150 MW.

3.75

0.10

0.10

0.50

200000/

600000.

073310 A

--

v) Above 150 MW & upto 200 MW

4.00

0.10

0.15

0.50

400000/

1200000.

073310  B

----

vi) Above 200  MW & upto 300        MW

4.50

0.10

0.15

0.50

2000000/

6000000.

073310  C

----

vii) Above 300  MW & upto 500 MW

4.50

0.10

0.15

0.50

4000000/

12000000.

073310  D

----

viii) Above 500  MW

 

 To be referred to TAC

EXCESS / ENDORSEMENT-

a)  For a gas Turbine Powers Station the excess prescribed will apply to all items.

b) For a Combined Cycle Power Plant, excess applicable for the Gas Turbine section will be the existing excesses prescribed under ‘Gas turbine/CCPP’ items. However, for Steam section, the excesses applicable will be as per tariff item (Steam Power Plant).

c) For test run definition of Gas turbines in CCPP, please refer Endt. No. 108.  

                Insurers are requested to take note and advise their operating offices suitably.

                                                                                                                                                                               Secretary                                                                                                  GO TO INDEX


Engg/Gen-10/17/16/62/2004/9                                                 20th July, 2004

Re: General Regulations under MB/CPM/EEI & DOS (Potato) Tariffs - ‘Bonus Malus’ scheme.

This refers to TAC’s Circular No - ENGG/GEN-4/55/2001/14 dated 4th May, 2001. The ‘Bonus-Malus’ table referred to therein stands revised as under:

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

Average claims ratio in % for 5 years policy preceeding 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 and upto 1000

 

50

3 times tariff excess

Above 1000

 

100

5 times tariff excess

The above decision is effective from 16 th August, 2004.

Secretary

                                                                                                    GO TO INDEX ___________________________________________________________________________

Engg/Gen-5/2004/10                                                         20 th July, 2004

Re : Rating of Tunnels under CAR insurance Tariff

Reference is drawn to tariff entry under the heading of "Tunnels"of the Rate Schedule of CAR Tariff.

For the sake of greater clarity the above tariff entry stands modified as under with immediate effect:

Risk code

Sl. No.

Risk

Premium Rates (%0)

Excess - 5% of claims amount subject to Minium of Rs.

     

Minium Rate up to first 3 months

Addl. Rate per month beyond 3 months

Normal

AOG/Major Perils/Collapse

13 Tunnels and/or other civil constructions therein

132167

i

Below water

10

0.10

400000

800000

131157

ii

Others

7

0.10

200000

500000

Insurers are requested to take note and advise their oprating offices suitably.

Secretary

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