{"id":4605,"date":"2022-12-07T10:23:50","date_gmt":"2022-12-07T03:23:50","guid":{"rendered":"http:\/\/ligaasuransi.com\/?p=4605"},"modified":"2024-08-09T12:21:32","modified_gmt":"2024-08-09T05:21:32","slug":"rahasia-di-balik-extended-maintenance-period-polis-asuransi-car-ear","status":"publish","type":"post","link":"https:\/\/ligaasuransi.com\/en\/rahasia-di-balik-extended-maintenance-period-polis-asuransi-car-ear\/","title":{"rendered":"What are the secrets behind the Extended Maintenance Period of CAR\/EAR insurance?"},"content":{"rendered":"

Liga Asuransi<\/a> – Dear readers, how are you? I hope your business is doing well this year and will continue to advance in the next year.\u00a0<\/span><\/p>\n

Let’s continue our discussion about risk management and insurance. This time I will discuss the Construction Erection All Risks insurance policy, often abbreviated CAR \/ EAR.<\/span><\/p>\n

Last week I was asked by one of our clients about the issue they are currently facing. They need help in handling their insurance claim. After months of claim processing, there has not yet been a positive sign from the insurer regarding the settlement of the claim.<\/span><\/p>\n

For your information, this insurance policy was arranged directly with the insurance company because they fully understand the CAR \/ EAR insurance coverage. They have experienced handling this type of insurance for years and have never had problems with insurance claims.<\/span><\/p>\n

After obtaining information, including the insurance policy coverage and the explanation of the causes of the claims, we can conclude that the accident is difficult to claim to the EAR insurance policy they have purchased.<\/span><\/p>\n

The accident occurred after the machine was handed over and was already operated by the owner after a few months of the engine running properly.\u00a0<\/span><\/p>\n

We found out that the damage occurred due to the failure of one of the turbine components causing the engine to shut down suddenly.\u00a0<\/span><\/p>\n

Our client assumes that this accident can be covered by Erection All Risks because the damage occurred during maintenance.\u00a0<\/span><\/p>\n

Even though it was still in the Maintenance Period, the risks that occurred were operational risks, not erection risks.<\/span><\/p>\n

We will elaborate in more detail to discuss this issue so that fellow contractors can understand it.<\/span><\/p>\n

If you are interested in this article, please share it with your colleagues so that they also understand like you.<\/span><\/p>\n

Definitions of Maintenance\u00a0<\/b><\/p>\n

In general, maintenance functions can be defined as maintenance, repair, and overhaul (MRO), and MRO is also used for maintenance, repair, and operations. Over time, the terminology of maintenance and MRO has become standardized.<\/span><\/p>\n

The maintenance works include any activity\u2014such as tests, measurements, replacements, adjustments, and repairs\u2014intended to retain or restore a functional unit in or to a specified state where the unit can perform its required functions.<\/span><\/p>\n

Maintenance also includes tests, adjustments, parts replacement, and cleaning is performed specifically to prevent faults from occurring.<\/span><\/p>\n

All actions are taken to retain material in a serviceable condition or to restore it to serviceability. It includes inspections, testing, servicing, classification as to serviceability, repair, rebuilding, and reclamation.<\/span><\/p>\n

The routine recurring work required to keep a facility (plant, building, structure, ground facility, utility system, or other real property) in such condition that it may be continuously used, at its original or designed capacity and efficiency for its intended purpose.<\/span><\/p>\n

Maintenance Works Definition in The Construction and Erection of Insurance\u00a0<\/b><\/p>\n

From an insurance point of view, the Construction and Erection Works means the works and things necessary for achieving Construction & Erection Completion and Commercial Operations following the provisions of the Agreement.<\/span><\/p>\n

Maintenance is strictly connected to the utilization stage of the product or technical system, in which the concept of maintainability must be included.<\/span><\/p>\n

Maintainability is considered the ability of an item, under stated conditions of use, to be retained in or restored to a state in which it can perform its required functions, using prescribed procedures and resources.<\/span><\/p>\n

Extended Maintenance Cover Endorsement MIR 004\u00a0<\/b><\/p>\n

It is agreed and understood that otherwise subject to the terms, exclusions, provisions, and conditions contained in the Policy or endorsed thereon and subject to the Insured having paid the agreed extra premium, this insurance shall be extended for the maintenance period specified hereunder to cover loss of or damage to the contract works<\/span><\/p>\n

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  1. caused by the insured Contractor (s) during the operation carried out to comply with the obligations under the maintenance provisions of the Contract,<\/span><\/li>\n
  2. occurring during the maintenance period, provided such loss or damage was caused on the site during the construction period before the certificate of completion for the lost or damaged section was issued.<\/span><\/li>\n<\/ol>\n

    Types of Maintenance\u00a0<\/b><\/h4>\n