What is this product about?

This policy is designed to meet the insurance obligations placed upon Contractors under the contract conditions. The policy covers all the works to be performed under the contract whether they are preparatory, provisional or final together with all the materials and equipment constituting them.

With additional premium, the cover may include Construction Plant and Equipment, Construction Machinery, Removal of Debris, Professional Fees and Surrounding Property.

What are the covers / benefits provided?

Section I – Material Damage

It covers almost any sudden and unforeseen physical loss or damage occurring (except as specifically, excluded in the policy) to the contract works/property/items insured, during the period of insurance.

Section II – Third Party Liability

This section in respect of third-party liability of which we shall become legally liable to pay as damages consequent upon:

1. Accidental bodily injury to or illness of third party
2. Accidental loss or damage to property belonging to third party.

What is the insured property?

Section I – Material Damage

• Contract works (the full value of the contract works at the completion of the contract)

With additional premium, the cover may include:

• Surrounding Property
• Construction Plant, Machinery and Equipment
• Removal of Debris
• Professional Fees

Section II – Third Party Liability

• Accidental bodily injury to or illness of third party
• Accidental loss or damage to property belonging to third party

Period of Insurance

Duration of cover corresponds with the contract period stipulated in the Letter of Award. It also includes the Maintenance Period following the expiry of contract period. The Period of Insurance is one year but shall automatically renew every year to correspond with the contract period as stipulated in the Letter of Award.

How much premium do I have to pay?

The premium and terms are set by the respective insurance company based on:

• Total contract value / sum insured
• The type of project and the risk exposure entails
• The location of the project
• The duration of the contract (construction period including maintenance period)
• The surrounding properties details
• The 3rd party liability limit required
• The extension(s) required
• Reinsurance support
• Past loss history
• Other underwriting requirements (if any)

What is the payment mode and how do I pay the premium?

You may pay your premium in full either by cash or cheque or bank transfer.

What are some of the key terms and conditions that I should be aware of?

• Duty of disclosure
  - You must give all the facts which you know or ought to know.
  - You must ensure that the proposal form is completed accurately as it forms the basis of the insurance contract.
• Sum insured
  You must ensure that your sum insured stated in the Schedule shall not be less than:
  (a) the full value of the contract works at the completion of the contract
  (b) the replacement value of construction, plant and machinery (if any)
  If the sum insured stated in the Schedule less than the amount required to be insured at the time of loss (i.e. underinsurance), you are deemed to be self-insuring the difference. The average condition will apply in the event of claim.
• Under-insurance
  If the sum insured in your policy is less than the actual value at the time of loss, you are deemed to have underinsured and have self-insured the difference. This average condition will apply in the event of a claim. You shall be considered as being Your own Insurer for the difference, and shall bear a rateable proportion of the loss accordingly.
• Contribution condition
  If at the time of any loss destruction or damage happening to any subject matter insured there be any other subsisting insurances whether by You or by any other person or persons covering the same subject matter, We shall not be liable to pay or contribute more than their rateable proportion of such loss destruction or damage.
• Claims Notification
  - In the event of a claim, you must notify us as soon as reasonably possible, but no later than 14 days from the date of the accident.
  - You must submit the claim documents to us within 30 days from the date of the loss or such further time as we may in writing allow.
• Deductible/Excess
  This is the amount you have bear before we indemnify you of a loss.
• Premium Warranty
  Premium must be paid in full and received by us within 30 days from the inception date of the cover, otherwise the cover is automatically cancelled and you will still be responsible to pay the proportion of premium for the period we have been on risk.

What are the major exclusions under this policy?

The policy shall not be liable for:

Exclusions: Section I – Material Damage

1. The deductible stated in the Schedule to be borne by the Insured in any one occurrence;
2. Loss or damage due to faulty design;
3. The cost of replacement, repair or rectification of defective material and/or workmanship, but this exclusion shall be limited to the items immediately affected and shall not be deemed to exclude loss of or damage to correctly executed items resulting from an accident due to such defective material and/or workmanship;
4. Consequential loss of any kind or description whatsoever including penalties, losses due to delay, lack of performance, loss of contract;
5. Mechanical and/or electrical breakdown or derangement of construction plant, equipment and construction machinery;
6. Wear and tear, corrosion, oxidation, deterioration due to lack of use and normal atmospheric conditions;
7. Loss of or damage to vehicles licensed for general road use or water borne vessels or aircraft;
8. Loss of or damage to files, drawings, accounts, bills, currency, stamps, deeds, evidence of debt, notes, securities, cheques;
9. Loss discovered only at the time of taking an inventory.

Exclusions: Section II – Third Party Liability

1. The deductible stated in the Schedule to be borne by the Insured in any one occurrence;
2. The expenditure incurred in doing or redoing or making good or repairing or replacing anything covered or coverable under Section I of this Policy;
3. Liability consequent upon:
   1. Bodily injury to or dead or illness of employees or workmen of the Contractor(s) or the Principal(s) or any firm connected with the project which or part of which is insured under Section I, or members of their families;
   2. Loss of or damage to property belonging to or held in care, custody or control of the Contractor(s), the Principal(s) or any other firm connected with the project which or part of which is insured under Section I, or an employee or workman of one of the aforesaid;
   3. Any accident caused by vehicles licensed for general road use or by waterborne vessels or aircraft;
   4. Any agreement by the Insured to pay any sum by way of indemnify or otherwise unless such liability would have attached also in the absence of such agreement.
4. Damage to any property or land or building caused by vibration or by the removal or weakening of support or injury or damage to any person or property occasioned by or resulting from any such damage (unless especially agreed upon by endorsement).
5. 1. Compensation for damages in respect of judgment not delivered or obtained from a court of competent jurisdiction within the Kingdom of Cambodia.
   2. Costs and expenses of litigation recovered by any claimant from the Insured which are not incurred in and recovered in the Kingdom of Cambodia.

General Exclusions (Whole Policy)

1. Cessation of work whether total or partial;
2. Willful act or willful negligence of the Insured or of his representatives;
3. Nuclear reaction, nuclear radiation or radioactive contamination;
4. War, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, mutiny, riot, strike, lock-out, civil commotion, military or usurped power, a group of malicious persons or persons acting on behalf of or in connection with any political organization, conspiracy, confiscation, commandeering, requisition or destruction or damage by order of any government de jure or de facto or by any public authority.

Note: This list is not exhaustive. Please refer to the policy contract for the full list of terms and conditions under this policy.

What are the pre-acceptance conditions for this product?

Submission of the following documents/information for our assessment of risk:-

• Letter or Award
• Summary of the Scope of Works with Breakdown in Values
• Location map with details of surrounding Third Party properties
• Site layout plan
• General Plan and Elevation Views of the buildings and other major structures to be constructed
• The Construction Programme (Bar chart)
• Method of construction employed
• Your company profiles
• No claims for the past 3 years
• Insured has never been declined, cancelled or refused coverage previously

Can I cancel my policy?

This Policy is non-cancellable except for the following reasons which cancellation is by mutual consent between the Insured and the Insurer:

• Major material changes in the insured risk; and
• Abandonment of project, i.e. withdrawal of the principal or any key contractor(s) from the works contract for political, financial, technical or other reasons.