Re: Extended maintenance cover in EAR policy
Prem Chandra Shukla
Dear Mr. Amit
The definition of Extended Maintenance Cover – you are referring to is not the complete definition/coverage it in fact part of the warranty concerning to Extended Maintenance Cover Ends.-113.
In simple terms two types of cover are available under Maintenance Extension (a) & (b).
(a) ‘Limited Maintenance’ (visits) shall cover solely loss or damage to the Contract Works caused by the insured contractor(s) in the course of the operations carried out for the purpose of complying with the obligations under the maintenance provisions of the contract.
(b) ‘Extended Maintenance’ shall cover loss or damage to contact works:
- Caused by the insured (contactors) in the course of the operations carried out for the purpose of complying with the obligations under maintenance provisions of the contract.
- Occurring during the maintenance period provided such loss or damage was caused on the site during the erection period.
The cover granted under (b) is wider than (a)
The understanding of the extended maintenance covers is quite misleading among the contractor, underwriter and agent.
This cover is nothing but an extension of the basic CAR/EAR policy for the contractor after the project is handed over to the principal. The cover remains dormant once the project is handed over to the principal and only active on two occasions:-
a) When the property is damaged by the contractor during the work carried out by him as per contract obligation. e.g if a project is handed over to principal on 1.3.2016 and as per contract the contractor is liable to make good any defect in any part or specified nature till 31.3.2017. Now the defect /discrepancies is triggered on 20.7.2016. The contractor is asked to make rectification as per contract. The contractor started rectification work on 21.7.2016 with his team.. After few days while the work was still underway a loss payable under the policy is caused by the contractor. This claim is admissible under this extension.
b) Any loss caused during maintenance period due to reasons/defects existed before handing over.
So in nut sale this cover only operates in the course of compliance with the obligation under maintenance provision of the contract and not for entire period.
In your case the loss though occurred during the extended maintenance period but not during the period and reasons as specified in a) and b) above hence not tenable under this extension.
Regards,
P.C. Shukla| Surveyors & Loss Adjusters|Surveyors India
| 117/H-1/125| Pandu Nagar| Kanpur| Uttar Pradesh - 208005| INDIA
| Tel: +91-512-2216416 | Tel/Fax: +91-512-2231409| Mobile: +91 9415044156
----Dear Friends,The extended maintenance cover is" occurring during the maintenance period. provided such loss or damage was caused on the site during the erection period before the certificate of completion for the lost or damaged section was issued."If a loss occurred during the extended maintenance period i.e., after the completion of erection period, what would be your opinion on liability. Kindly explain above coverage.Thanks,Amit Kumar ShrivastavaAmit Kumar Shrivastava(Insurance Surveyor & Loss Assessor)1st Floor,126,Furniture Market,Shopping Centre,Kota-324 007Rajasthan.Mobile No.: 098280 81525e-mail: shrivastava.amitk...@gmail.com
Note:
This is purely a private group of Insurance Surveyors in India strictly for their own internal circulation & consumption. The messages posted and opinions expressed on the forum are that of the individual members. The group owner/moderators are in no way responsible for any opinions expressed and/or offending messages that are posted on the message board.
No message posted on this message board shall be used against the member who posted the information and/or against the moderators as evidence in any court of law.
---
You received this message because you are subscribed to the Google Groups "Insurance Surveyors India" group.
To unsubscribe from this group and stop receiving emails from it, send an email to insurance-surveyors-india+unsub...@googlegroups.com.
To post to this group, send email to insurance-surveyors-india@googlegroups.com.
Visit this group at https://groups.google.com/group/insurance-surveyors-india.
For more options, visit https://groups.google.com/d/optout.
Sanjay Shrivastava
--
e-mail: shrivastava.amitkumaar@gmail.com
--
Note:
This is purely a private group of Insurance Surveyors in India strictly for their own internal circulation & consumption. The messages posted and opinions expressed on the forum are that of the individual members. The group owner/moderators are in no way responsible for any opinions expressed and/or offending messages that are posted on the message board.
No message posted on this message board shall be used against the member who posted the information and/or against the moderators as evidence in any court of law.
---
You received this message because you are subscribed to the Google Groups "Insurance Surveyors India" group.
To unsubscribe from this group and stop receiving emails from it, send an email to insurance-surveyors-india+unsubsc...@googlegroups.com.
To post to this group, send email to insurance-surveyors-india@googlegroups.com.
Visit this group at https://groups.google.com/group/insurance-surveyors-india.
For more options, visit https://groups.google.com/d/optout.
--
You received this message because you are subscribed to the Google Groups "Insurance Adjusters" group.
To unsubscribe from this group and stop receiving emails from it, send an email to insurance-adjusters+unsub...@googlegroups.com.
To post to this group, send email to insurance-adjusters@googlegroups.com.
Visit this group at https://groups.google.com/group/insurance-adjusters.