Liga Asuransi – Dear readers, how are you? Yes, we are continuing to discuss the contents of the coverage of the construction erection of all risks insurance policy or CAR / EAR / TPL.
There are so many things you need to know about the coverage area of the CAR /EAR/TPL insurance policy so that you will not be disappointed if your insurance claim is rejected later.
Often people blame the insurance company because the claim is not paid, but after being explained by the insurance company the reason for the rejection, only then do they understand that they did not follow the provisions of the insurance policy.
But unfortunately, not many insurance buyers do understand very well the provisions and requirements of insurance policies, especially CAR / EAR / TPL insurance. Special education in insurance and experience for many years will be needed.
As you know that the contents of insurance policies are designed by the national and international insurance industry. The insurance policy is made based on a format compiled by institutions and insurance companies that have knowledge and experience in providing insurance coverage.
The names that are already known as the center of the world insurance industry are such as Lloyd’s of London, Munich Re, Swiss Re, and many other institutions and companies that provide insurance contract formats. They arrange it based on the development of world economic conditions, changes in technology, and lifestyle.
Therefore, it makes sense why insurance peoples are more familiar with the intricacies of insurance coverage. While you don’t. Well, maybe you’ll say that this is not fair!
Relax, it turns out that the insurance industry has also prepared a solution so that you as a buyer of insurance coverage get the maximum benefits with the availability of insurance consultants or better known as Insurance Brokers. The presence of insurance brokers is well accepted by the insurance industry.
Insurance brokers are insurance experts who have a broad education in the field of insurance. Extensive experience in handling and solving various cases in the field of insurance for the benefit of its customers.
Many also say that insurance brokers are Insurance Advocates who defend your interests as an insurance buyer.
Therefore, make sure you use the services of an insurance broker company for all your insurance needs, especially for your project.
Usually, the contract between the owner (owner) of the project with the contractor as the executor of the project has been stated guarantees and insurance. Ask for advice from the insurance broker on how to make the guarantee and insurance requested by the contract can be fulfilled.
Before we continue with the explanation of the provisions above let’s discuss first CAR / EAR / TPL insurance.
Contractor’s All Risks and Third-Party Liability (CAR/TPL) insurance is a type of insurance policy that provides reimbursement for damage, and loss of materials and project property and the risk of lawsuits due to injury, death, or damage to third party property as a result of project implementation.
Without CAR/TPL insurance, in the event of an accident with the project, you may not be able to complete it and cannot fulfill your obligations by the contract within the specified time. And you will be charged with penalties and fines.
All parties involved in the project have an interest in the CAR/EAR/TPL insurance policy. They are project owners, developers (developers), banks, main contractors, subcontractors (subcontractors), consultants (consultants), and suppliers or suppliers.
If you are interested in this article, please share it with your colleagues so that they also understand like you.
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As a consultant and senior insurance broker, we will discuss one of the requirements in the CAR /EAR/TPL insurance policy of the Munich Reinsurance policy standard, namely:
Original Conditions:
“In the event of any occurrence which might give rise to a claim under this Policy, the Insured shall: b. take all steps within his power to minimize the extent of the loss or damage;”
Explanation of The Terms of The Damage Termination Business
When an accident occurs, you as the project owner or contractor are to be asked to try your best to prevent and stop accidents that occur. Or also asked to try to reduce the extent of the damage that occurred to reduce the financial losses caused by the accident.
You need to know that every effort you make in overcoming prevention will be a consideration of the insurance company at the time of claim compensation.
If you as the insured, do not show maximum effort then the insurance company may suspect that the accident that occurred may not be purely an accident.
Or they will think that you do want the accident to happen because you expect to receive a claim.
Your attention is that when an accident occurs then your attitude is as if you do not have insurance, you will suffer losses as a result of the accident so that then you will try hard to extinguish the fire (if there is a fire) because you will bear the consequences yourself.
This is by one of the basic principles of insurance, namely “Utmost good faith”.
The doctrine of utmost good faith, also known by its Latin name uberrimae fidei, is a minimum standard, legally obliging all parties entering a contract to act honestly and not mislead or withhold critical information from one another. It applies to many everyday financial transactions and is one of the most fundamental doctrines in insurance law.
For further explanation, here we write additional information so that you understand it better. If you are interested in this article, please share it with your colleagues so that they also understand like you.
The Importance of Insurance Loss Control
Insurance loss control is a risk management activity designed to reduce the possibility of claims against insurance policies. Loss control includes efforts to identify the source of risk and is accompanied by voluntary or mandatory actions that you or the policyholder must take to reduce the risk.
Understanding Insurance Loss Control
Insurers in this case the insurance company may be able to provide incentives to policyholders for efforts made to avoid risk. For example, insurance companies can reduce premiums for policies if project management applies strict provisions on occupational safety (Health and Safety Environment).
In addition, the insurance company may ask you as a policyholder to take certain actions to reduce the risk. For example, they may need a special building to install a fire extinguishing system to reduce the chance of fire damage, or they may request the installation of a security system to reduce the threat of theft.
The insurance company may also ask you as a policyholder to complete a loss control program to reduce risk and reduce the likelihood of claims.
A loss control program benefits you as a policyholder and not just an insurance company. You can benefit from lower premiums, while insurance companies can reduce the costs associated with having to pay claims.
Special Considerations
Some insurance companies offer loss control that suits your business. By conducting a thorough examination of the company’s operations and operational history. The examination is designed to show what causes the risk, such as unsafe working conditions. The plan can then provide a step-by-step solution to reduce those risks.
For example, a project might use a loss control consultant to understand what causes workplace accidents. Consultants will probably find that in certain parts of the current construction process there is the placement of workers in situations that are too close to the machine. A potential solution in this scenario is to increase the distance between the worker and the moving part.
How to get the best CAR/EAR/TPL insurance in Indonesia?
From the explanation above, it is not easy to get CAR / EAR / TPL insurance. It takes extensive insurance knowledge and enough experience to be able to get the best insurance coverage.
It takes time for ordinary people to master the science of insurance, therefore the best way to get CAR / EAR / TPL insurance coverage is by using the services of an insurance broker company that is experienced in the field of construction risk or better known as risk engineering.
One of the advantages of insurance broker companies is that they are also the same time act as insurance advocates in the process of settling claims. With knowledge, experience, and extensive network in the insurance industry is very helpful for you in facilitating and speeding up the process of resolving insurance claims.
One of the insurance brokers companies in Indonesia that has a lot of experience in the field of CAR / TPL insurance is L&G Insurance Broker.
For all your insurance needs contact L&G right now?
Source:
https://www.investopedia.com/terms/i/insurance-loss-control.asp
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