Company: Cholamandalam MS, Chennai
S S Gopalarathnam, Managing Director - Cholamandalam MS General Insurance
BE: What different innovative schemes and policies your organization has evolved to indemnify a professional related to construction industry in general? In specific related to Engineers, Service Consultants and Architects?
SSG: We have been extending comprehensive coverage for project material and to workmen due to accidental death and injury and also to equipment used in construction site. Apart from this we provide coverage to Architects and design engineer against legal liability. In a Project the entire value chain i.e. material /workmen/professionals can be covered against unforeseen accidents for material damage and liability. Materials and equipments transit can also be covered till they are brought to the site.
BE: Can you elaborate the advantages of schemes like Professional Indemnity Policy, Professional Liability insurance policy and any other similar schemes?
SSG: Professional indemnity policy seeks to protect the liability of professionals against damages Caused to project material. It also pays compensation to victims due to accidents caused by negligence of the professionals like defective design. The liability of the professional is covered herein. If there is willful negligence then the same is excluded.
BE: Do these policies cover structural failures due to faulty designs? If yes, what is the basis on which limit is fixed?
SSG: The failure to structures due to faulty design is not covered in the basic policy. However consequential damage to structure because of design defect can be covered by an extension of the policy.
BE: What role an expert witness plays in finalizing the claim?
SSG: Contractors All Risk (CAR) policy covers all accidental damages to project material. So for a claim it is necessary to prove that the damages have been caused by an accident and this is not due to any of the causes excluded in the policy. So the expert witness would be able to identify the cause and also the items affected. Especially when there is a series of triggers insurers look for the entire chain of events and the exact trigger which caused the accident has to be identified to settle the claim. An expert witness can be of immense help in such scenarios.
BE: Can you explain about the insurance policies catering to engineering / construction arena?
SSG: The various policies that are popularly offered are hereunder.
- Contractors All Risk Insurance for Civil engineering construction
- Erection All Risk insurance for Equipment
- Contractors’ Plant and Machinery for equipments like bulldozers, excavators etc
- Workmen’s Compensation insurance to cover the liability of employer
- Advance loss of profit insurance covering the loss of interest/ profits
- Office package insurance for contract site office covering the assets of the office including money
- Policies covering Guarantees’/Liquidated damages cover. This is however offered restrictively.