| Circular No. | Date of Circular | Effective Date | Subject |
| Engg/Gen-6-VI/2005/11 | 01/04/2005 | 01/04/2005 | Discount/Loading scheme for claim experience under MLOP tariff |
| 30/05/2005 | 30/05/2005 | Re : Rating of Storied Buildings under CAR tariff. | |
| Engg/Gen-24-III/2005/13 | 30/05/2005 | 30/05/2005 | Testing endorsement for EAR portion of CAR Policy. |
| Engg/Gen-4/2005/14 | 30/05/2005 | 30/05/2005 | Rating of Nuclear Power Plants under EAR/SCE tariff. |
| Engg/Gen-4/2005/15 | 14/11/2005 | Rating of Railway Bridges under CAR Tariff | |
| Engg/Gen-4/2005/16 | 14/11/2005 |
Revision of the notes under the tariff item “Roads – Sl. No. 5” of CAR Tariff. |
|
| Engg/Gen-4/2005/17 | 14/11/2005 |
Clarification on determination of Sum Insured and volume discount under EAR Tariff. |
|
| Engg/Gen-4/2005/18 | 14/11/2005 | Duration of testing period cover for Thermal Power Plant under EAR Tariff | |
| Engg/Gen-4/2005/19 | 14/11/2005 | Deterioration of stocks (Potatoes) insurance tariff – change in the wordings of Exclusions – 1 a (i) under DEFINITION. |
__________________________________________________________________________
Engg/Gen-6-VI/2005/11 1st April, 2005
Re: Discount/Loading scheme for claim experience under MLOP tariff
Arising out of references from insurers for fixing loading/ excess for cases where claim experience exceeds 300% , it has been decided to replace the existing table by the following table in Section 1.10 of the norms for rating of MLOP Proposals :
No. of Yrs of Experience |
Discount (-)/Loading (+) scheme with additional Excess for claims experience (in %) under MLOP tariff. | |||||||
| Upto 5% | >5% to <=10% |
>10 % to <=15 % |
>15 % to <=30 % |
>30 % to <=50 % |
>50 % to <=100 % |
>100 % to <=300 % | ||
| 1 Year | -5% | -2.5% | -1.5% | 0 | +2.5% | +5% | +7.5% | |
| 2 Years | -7.5% | -5% | -3% | 0 | +5% | +7.5% | +10% | |
| 3 Years & above | -10% | -7.5% | -5% | 0 | +7.5% | +10% | + 12.5% | |
| >300% to <=500% / Time Excess |
>500% to <=700% / Time Excess |
>700% to <=1000% / Time Excess |
>1000% / Time Excess | |||||
| 1 Year | +10% | Time excess specified in Circular dt. 18th April, 2001 is to be increased by 25%. | +12.5% | Time excess specified in Circular dt.18th April, 2001 is to be increased by 50%. | +15% | Time Excess specified in Circular dt. 18th April, 2001 is to be increased by 75%. | +17.5% | Time excess specified in Circular dt.18th April, 2001 is to be increased by 100%. |
| 2 Years | +15% | +17.5% | +20% | +25% | ||||
3 Years & above |
+20% |
+25% |
+30% |
+35% |
||||
| Note : Time excess is to be specified in number of days . Where the time excess increased as above results in fraction, the same is to be rounded off to the next higher number of days. | ||||||||
Insurers are requested to inform their operating offices suitably.
Secretary
Engg/Gen-24-III/2005/12 30th May 2005
Re : Rating of Storied Buildings under CAR tariff.
Arising out of a query received from an insurer, it is clarified that all the floors above the foundation level, i.e. all floors including basement floors, are to be considered for rating of Storied Buildings under CAR tariff.
Insurers are requested to advise their operating offices suitably.
Secretary
Engg/Gen-24-III/2005/13 30th May 2005
Re : Testing endorsement for EAR portion of CAR Policy.
Arising out of a representation from an insurer, it is clarified as under :
a ) No testing provision shall be available under CAR tariff for equipment/ machinery.
b) Where cover for testing is required, the concerned equipment/machinery will have to be covered separately under EAR tariff.
c) Where separate policies are issued in view of (b) above, clubbing of sum insured of the CAR and EAR policies shall not be allowed for the purpose of volume discount.
Insurers are requested to advise their operating offices suitably.
Secretary
Engg/Gen-4/2005/14 30th May 2005
Re : Rating of Nuclear Power Plants under EAR/SCE tariff.
Arising out of a representation from an insurer to provide rates for Nuclear Power Plants, the existing entry in the EAR Rate Schedule under Risk Code - 15400/Sl. No.-10(d) shall stand modified to read as under :
|
Risk Code |
Sr.No |
Description |
Rate for 1 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 |
|
15400 |
10 (d) Nuclear |
To be rated at par with Steam Power Plant (Risk Code 171106/Sl.no-11) subject to the following conditions: 1. Equipment in hot zone shall not be insured. 2. No testing is permitted using nuclear/Radioactive substances. 3. Cover may be granted upto pre-commissioning stage only. 4. No maintenance cover shall be granted. |
||||||
Insurers are requested to inform their operating offices suitably.
Secretary
Engg/Gen-24/2005/15 Date : November 14, 2005
Sub :Rating of Railway Bridges under CAR Tariff
Arising out of a representation from an insurer, it has been decided to combine the existing entries “Flyovers on land (Sl. No. 8)” and “Road Bridges on land made of (Sl. No. 10)” in the CAR Rate Schedule and replace them with a new entry as under :
10. Bridges / flyover on land -
|
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 |
|
101096 |
a) |
Steel |
3.00 |
0.05 |
5,000/- |
20,000/- |
|
102116 |
b) |
RCC or pre-stressed concrete |
3.50 |
0.05 |
10,000/- |
40,000/- |
|
103136 |
c) |
Other materials |
5.00* |
0.10* |
20,000/- |
80,000/- |
|
*Provisional rates – reference to be made to TAC for final rate quotation. Notes : 1) Railway bridges are rateable under the above tariff item. 2) Refer item 5 – Roads, for Road bridges forming part of ‘Road Construction’. |
||||||
It
has also been decided to delete tariff entries “Flyovers on Land” and
“Road Bridges on Land made of”.
Asst. Gen. Manager & In-charge
Engg/Gen-24/2005/16 Date : November 14, 2005
Sub : Revision
of the notes under the tariff item
“Roads –
Sl. No. 5” of CAR Tariff.
It has been decided to
revise the wordings of the notes under the tariff entry “Roads – Sl. No.
5”. The existing entry “Road
– Sl. No.5” shall stand
modified to read as below in view of the above change :
5. Roads –
|
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 |
|
051042 |
a) |
In townships only |
2.00 |
0.025 |
5,000/- |
20,000/- |
|
052073 |
b) |
In Plain Areas |
2.50 |
0.03 |
5,000/- |
20,000/- |
|
053095 |
c) |
In Hilly / Ghat areas |
3.00 |
0.04 |
10,000/- |
40,000/- |
Notes :
1)
Where value of Culverts and Road bridges does not exceed 20% of the
contract value, the same may be deemed as covered at the above rates.
Where the value of Culverts and Road bridges exceeds 20% but does not
exceed 75%, the proposal shall be rated as per tariff item “Canals/Culverts
(not involving works under water)’ with Risk code 251087
2)
Where the value of Road bridges alone exceeds 75% of the total contract
value, the Road bridges shall be rateable ‘per se’ under the tariff item
“Bridges /Flyover on land (Sl. No.10)”.
3)
Where the tunnel value exceeds 10% of the contract value Tunnels shall be
rated under the tariff item “Tunnels and / or other civil construction therein
(Sl. No.13)”.
Asst. Gen. Manager & In-charge
Engg/Gen-4/2005/17 Date : November 14, 2005
Sub
:Clarification on determination of Sum Insured and
volume discount
under EAR Tariff.
Arising out of a representation from an insurer, it has been decided to clarify that since volume discount is allowed on the total sum insured (which is inclusive of value of mandatory spare parts) considered for premium calculation, the value of spare parts alone cannot be added back once again to the total sum insured for computing the volume discount.
Insurers
are requested to inform their operating offices accordingly.
Asst. Gen. Manager & In-charge
Engg/Gen-4/2005/18 Date : November 14, 2005
Sub : Duration
of testing period cover for Thermal Power Plant under EAR Tariff
In no case the duration of the testing period shall
exceed 12 months. The
excess applicable shall be as per EAR tariff risk codes 181204,
181206, 181207, & 181217
under tariff entry “Turbo Generator Sets (Sl. No. 12)”.
Insurers are to use Endorsement No. ENGG/END-107 suitably modified to take care of the above change.
Engg/Gen-62/2005/19 Date : November 14, 2005
Sub : Deterioration
of stocks (Potatoes) insurance tariff – change in the wordings of Exclusions
– 1 a (i) under DEFINITION.
Arising out of a reference from an insurer, it has been
decided to modify the existing wording for Exclusion No. 1 a (i) of DEFINITION
as below :
“1 The Term accident shall mean and be limited to
(a) Any sudden or unforeseen loss of or damage to the Refrigeration Machinery described in Schedule I of this policy due to any accidental cause covered by machinery Insurance Policy specified in Schedule I and not hereinafter excluded.
Exclusions
(i) Failure of any part or parts requiring
periodical renewal (such as failure of belts,
gaskets, packing material, insulation and joints of any kind except welded
joints)”
Insurers
are requested to inform their operating offices accordingly.
Asst. Gen. Manager & In-charge