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Bajaj Allianz General Insurance Co. Ltd.

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INTERESTS INVOLVED IN A PROJECT

MAIN

CONTRACTOR

FINANCIAL

INSTITUTIONS

SUB

CONTRACTORS PROJECT

PRINCIPAL

FINANCE

CHARGES

LOANS

GROSS

PROFIT

MATERIAL

LABOUR

INVESTMENT

MANAGEMENT

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OBJECT OF ALOP INSURANCE

TO INDEMNIFY THE PRINCIPAL OR OWNER

OF A PROJECT

FOR THE ACTUAL LOSS SUSTAINED

DUE TO A DELAY IN COMPLETION OF THE

INSURED WORKS

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ONLY THE PRINCIPAL.

LENDERS SHOULD NEVER

BE AN INSURED OR CO-INSURED.

IT IS POSSIBLE TO GRANT A LOSS PAYEE

CLAUSE.

CONTRACTORS, SUBCONTRACTORS

CANNOT BE ACCEPTED AS INSUREDS

UNDER ANY ALOP EXTENSION.

WHO CAN BE INSURED ?

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S.I. HAS TO BE ARRIVED CONSIDERINGREVENUE GENERATION PROJECTION FROM

SCHEDULED COMMENCEMENT DATE OF

1st UNIT.

S.I. IS ANTICIPATED GROSS PROFIT

THE DECISION TO INSURE OR NOT TO

INSURE THE FULL GROSS PROFIT IS

WITH THE INSURED

INSURED CAN OPT TO INSURE :

STANDING CHARGES ONLY

INTERESTS ONLY

EXPRESSED AS PERCENTAGE OF G.P.

SUM INSUREDSUM INSURED

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PROJECT PERIODSPROJECT PERIODS

PLANNING

TRANSIT

ON SITE STORAGEHANDLING

CONSTRUCTION

ERECTION

COMMERCIAL

OPERATION

COLD /

PRE -

TEST

HOT

TEST

SCHEDULED DATE OF

COMMENCEMENT OF

INSURED BUSINESS

MAXIMUM

INDEMNITY

PERIOD

( ALOP )

INSURANCE PERIOD

CAR / EAR - ALOP

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WHAT IS CLAIMABLE ?

LOSS OF NET PROFIT

STANDING CHARGES PAYABLE

DESPITE THE LACK OF INCOME

INCREASE IN EXPENDITURE TO REDUCEOR AVOID THE DELAY TO START-UP

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What we mean by LOSS OF GROSS PROFIT

STANDING CHARGES

AND

NET PROFIT

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INCREASE IN COST OF WORKING

THE EXPENDITURE NECESSARILY AND

REASONABLY INCURRED TO DIMINISHOR AVOID A REDUCTION IN TURNOVER

DURING THE INDEMNITY PERIOD.

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INDEMNITY PERIOD

THE PERIOD OF INDEMNITY COMMENCES

WITH THE DATE UPON WHICH, HAD THE

INSURED PHYSICAL LOSS OR DAMAGE NOT

OCCURED, THE INSURED WOULD HAVE

COMMENCED COMMERCIAL OPERATION,

BUT NOT PRIOR TO THE PLANNED DATE

INDICATED IN THE SCHEDULE.

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WITH THE ACTUAL DATE UPON

WHICH

THE INSURED WORKS ARE COMPLETED

OR

THE FULL OPERATIONAL TESTING OF

THE INSURED WORKS IS COMPLETED.

THE PERIOD OF INDEMNITY ENDS

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ONLY ONE CLAIM PER POLICY

Indemnifiable Accident

Non-Indemnifiable Accident

Indemnifiable Accident

Indemnifiable Accident

Build upBuild up

of theof the

sum insuredsum insured

Indemnifiable Delay to be adjusted for time excessIndemnifiable Delay to be adjusted for time excessfor reinstatement with same designfor reinstatement with same design

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INSURED AND UNINSURED DELAYS

SCHEDULED BUSINESS

COMMENCEMENT

FIRE, NEGLIGENCE

STRIKE, SHORTAGE OF MATERIALS

UNINSURED

DELAY

INSURED DELAY

INDEMNITY PERIOD

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ALoP Insurance In a Nutshell

The Insured in ALoP is the PRINCIPAL ONLY

Concurrent material damage (MD) insurance

Same Insurer(s) for ALoP and MD

Extremely good co-operation between all parties

Insurance period identical to MD erection period

Accident not immediately followed by indemnityperiod

Only one claim per policy

Only one time excess per policy

Max. indemnity period sufficiently long

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Thank You