Frequently Asked Questions

Commercial

• Are the contractor's plant and machinery covered in the Contractor's All Risk policy?

  Yes of course! The contractor's plant and machinery are covered under our Contractor's All Risk policy.

• Can I cancel a Contractor's All Risk or Erection All Risk policy at any time?

  No, sorry, these are non-cancellable policies.

• Can I get burglary insurance as a standalone policy?

  No, sorry, we can only issue a burglary cover policy if there is a fire policy covering the items.

• Can you cover my stock for burglary?

  Definitely! As long as you have an existing fire policy covering the stock. You have the option of extending the fire policy to cover the same stock against burglary as well.

• Do you accept insurance through freight forwarders?

  Yes, we do accept insurance through freight forwarders as long as the insurance is made in the name of the legitimate cargo owner.

• Do you charge excess for all kinds of risk consignments?

  No, not for all goods. It actually depends on the nature of goods (like glass items, vehicle, steel pipes, G.I. pipes, or bulk cargoes), the nature of conveyance, and the packing facility. Based on these factors an excess condition is imposed under the policy.

• Do you cover faulty design, defective material and workmanship?

  No, any loss or damage to items that are immediately affected by the above are not covered. However, your insurance can be extended to cover any loss or damage to the correctly executed items resulting from an accident that happened because of faulty design, defective material or workmanship.

• Do you insure plasma TVs? If yes, do you provide All Risk cover?

  Yes, we can provide All Risk cover for plasma TVs, as long as there is adequate packing.

• Do you insure pleasure craft?

  Yes, we do! We insure a variety of pleasure crafts ranging from small to luxury crafts worth tens of millions of dirhams.

• Do you provide protection and indemnity (P&I) cover with your hull insurance?

  Yes, we do provide a degree of protection and indemnity (P&I) cover in accordance with the terms of your hull & machinery insurance cover. In addition to this, we can also offer you full P&I insurance, with liability for cargo, crew & pollution, from one of the reputable P&I clubs in London.

• How do you charge excess? Is it based on the consignment value or the total sum insured?

  It depends. The excess charged can be a percentage of the shipment value or a percentage of claim amount or sometimes even a fixed amount.

• I am sending giraffes to Kuwait. Can you insure them?

  Sure. We can insure your giraffes under our livestock insurance clauses.

• I am sending my gold ornaments to my friend by courier. It is a gift. Can you provide insurance?

  Yes, of course, we can provide cover for your gift. Just remember that subject to the All Risks Parcel Post Clause, at least 25% of the value should be declared to the carrier (or on the air waybill).

• I have a printing press. Can you provide it with insurance coverage?

  Yes, we can cover your printing press under our Fire or Property All Risks policy.

• I want to insure my office/shop/warehouse. What kind of insurance can you provide?

  You can get our Fire or Property All Risks policy for your office/shop/warehouse.

• Is any damage to neighbouring property or any injury to third parties due to vibration or by the removal or weakening of support covered in Contractor's All Risks policy?

  No, these are exclusions under the policy. However, the policy can be extended to remove these exclusions and cover the mentioned damages and injuries, with some limitations.

• Is inland transit covered in Contractor's Plant and Machinery policy?

  No, inland transit is usually an exclusion. However, the policy can be extended to cover inland transit, at terms to be agreed.

• Is it possible to provide land transit cover from the port to the warehouse on export shipments?

  Normally, export/third country shipment cover terminates at the point of discharge of goods at the seaport/airport of arrival. But on a case-by-case basis, we do provide land transit cover from warehouse to warehouse. This usually depends on the nature of goods & the distance of the final warehouse from the port of discharge.

• Is loading/unloading covered in Contractor's All Risk policy?

  Yes. Loading/unloading is covered in the Contractor's All Risk policy.

• Is my travel insurance plan valid on any airline, including “cargo” flights?

  Yes, the insurance is valid on any airline as long as the passenger is assigned a proper seat.

• Is third-party liability covered under the Contractor's Plant and Machinery policy?

  Yes, third-party liability is covered while the equipment is being used as a tool-of-trade within contract sites.

• Is tsunami covered under your fire cover?

  Yes, tsunami should be covered as long as the provided policy covers earthquakes.

• Is war risk cover compulsory?

  No, it's not. It totally depends on you. But we would say that it is advisable.

• My consignment has been shipped and is on its way to the destination port. Can we get the insurance now?

  Yes, of course, you can insure the shipped goods with us as long as there have been no known or reported loss up to the date and time you contact us.

• Our stock rotates every month. How will you provide coverage for it?

  So, this is how it goes. You will need to estimate the maximum value of the stock that you may be holding at a particular point of time during the policy. This will be considered as the sum insured and the premium rate is charged based on this amount. 
  
  At the beginning of each month, you will need to declare the highest value of the stock that you were holding during the previous month. The same will be considered as the declaration for that month. At the end of the policy period, the premium is adjusted based on the average monthly declarations provided by the insured.

• Should I take insurance for a shop/building if I am not the owner?

  No, you don't need to. It is the responsibility of the owner of the building to buy insurance cover for it since he has got the insurable interest. 
  
  You can purchase insurance for the contents of your shop. However, to protect yourself in the event of any damage to the building, for which you are legally liable, you may also opt for the Tenant's Legal Liability extension under our Fire/Property All Risks policy.

• We are manufacturing plastics. Can you provide insurance for us?

  To be honest, we don't usually insure plastic factories. However, you can reach out to us and we can come to a decision based on your case.

• We want to insure our warehouse/stock/office. How much premium will we have to pay?

  There is no fixed tariff in such cases. The rate/premium is usually decided on a case-to-case basis, depending on your building, the kind of covers you are looking for, and other factors.

• What are incoterms?

  Incoterms (or International Commercial Terms) are a series of terms published by the International Chamber of Commerce. These are used to communicate the obligations between the buyer & seller with respect to transport, costs & risks. The most common incoterms are:

   

  • EXW - Ex Works
  • FCA - Free Carrier
  • FAS - Free Alongside Ship
  • FOB - Free on Board
  • CFR - Cost & Freight
  • CIF - Cost, Insurance & Freight
  • CPT - Carriage Paid To
  • CIP - Carriage & Insurance Paid to
  • DAF - Delivered at Frontier
  • DES - Delivered Ex Ship
  • DEQ - Delivered Ex Quay
  • DDU - Delivered Duty Unpaid
  • DDP - Delivered Duty Paid

• What are the categories of Total Loss?

  Actual & Constructive Total Loss.

• What are the requirements for marine cargo insurance?

  We'll need the following details when providing marine cargo insurance:
  
  - Name and address of the insured
  - Details of the consignment
  - The packing condition
  - How the cargo is packed (pallets/carton/bales/bags/bundles etc.)
  - Conveyance, like steamer in container/non-container/on-deck/breakbulk/bulk &/or airfreight/land conveyance/air parcel post 
  - The value of the consignment
  - The basis of valuation 
  - The origin and destination of the voyage
  - Whether any transhipment is involved
  - Confirmation letter from the insured about the rate and terms agreed by them

• What are the requirements for the protection and indemnity (P&I) cover?

  For providing P&I cover, we will need the vessel’s complete details, including its trading area, class, type of cargo, the number of crew members, the nationality of the crew and a survey report.

• What constitutes the basis of sum insured in Contractor's All Risk policy?

  Item 1: Value of contract works at the completion of the construction inclusive of all materials, wages, freight, customs duties, dues and materials or items supplied by the principal.

   

  Item 2&3: The replacement value of construction plant, equipment and construction machinery which shall mean the cost of replacement of the insured item by new items of the same kind and capacity.

• What constitutes the sum insured in an Erection All Risks policy?

  The sum insured in an Erection All Risks policy is the total value of the erection works or civil engineering works at the completion of the erection, inclusive of the freight, customs, duties & dues, and erection cost.

• What do you mean by All Risk?

  All Risk covers the loss or damage to the insured subject matter by perils of the sea, general average sacrifice, salvage charges, jettison, overloading or derailment of land conveyance, collision or contact of the vessel with any external object other than water, breakage, water damage, non-delivery and partial losses, excluding certain perils which appear under the exclusion clause.

• What do you mean by an electrical clause?

  An electrical clause excludes any damage to the equipment directly caused by any fluctuations in electrical current or short circuit, which subsequently results in a fire. However, the policy covers damages subsequently caused to any other items by the said fire.

• What do you mean by hazardous goods?

  Hazardous goods are those that have a low flash point and can easily get damaged by fire.

• What do you mean by loss of rent or alternative accommodation insurance?

  Loss of rent or alternative accommodation insurance covers the insured for the amount of rent they might lose in the event of a loss or damage to the insured property.

• What do you mean by replacement value?

  The cost of replacing an insured property or asset in case of damage or loss.

• What else would you cover under a Fire Policy other than fire?

  In addition to the primary covers, our Fire Policy has extensions for earthquakes, storms, floods, tempest, the impact of vehicles and aircraft, bursting of pipes, riots and strikes, and malicious damage explosion.

• What is a Classification Society? Is it compulsory to register here?

  Classification societies are independent, non-profit, non-governmental committees representing ship owners, shipbuilders, engine builders & underwriters. They define the standards that ensure that ships are built & maintained in seaworthy and safe conditions.
  
  Classification is compulsory for ocean-going vessels and vessels above a certain size.

• What is C + ND?

  In addition to everything that's covered under the "C" clause of the institute cargo clauses, this one also covers damages in the event of non-delivery of an entire unit as per bill of lading &/or entire container (damages are not covered).

• What is covered under Contractor's All Risk/ Erection All Risk?

  • Material Damage
  • Third Party Liability

• What is covered under the normal Fire Policy?

  Fire and Lightning.

• What is the basis of calculating the sum insured in Contractor's Plant and Machinery (CPM) policies?

  In CPM policies, the sum insured is calculated based on the current new replacement value irrespective of the original purchase value.

• What is the difference between Property All Risks and Fire Insurance? Is there a difference in rate between the two?

  A Fire Insurance policy provides cover for risks of fire and other damages that occur due to fire. A Property All Risks policy provides cover for burglary and accidental damage in addition to covers for fire and its allied perils. Therefore, Property All Risks has a higher premium.

• What is the "mode of transport/transit"?

  In the case of insurance, the "mode of transport/transit' will be how the goods being insured are transported from one place to another. The mode of transit/transport could be a steamer in container/non-container/bulk/break bulk, and/or air freight, and/or land conveyance, and/or parcel post etc.

• What is the standard war rate?

  The standard war rate is 0.05% as per the war scale for non-war-prone areas.

• When should I buy an annual Contractor's Plant and Machinery policy?

  You should buy an annual policy for Contractor's Plant and Machinery if your machinery is going to be used in different locations throughout the year.

• Which items have maximum excess?

  Chandeliers, glassware items, sugar shipments & bulk shipments in general.

• Why should I insure my machinery for a new replacement value when the purchase value is much lower than that?

  The thing is, the value of machinery is likely to increase every year. At some point in time, the value of some of the parts may even exceed the purchase value. Hence, in order to bridge this gap, the machinery should be insured for its new replacement value.

• Will my existing property automatically be covered under Contractor's All Risk policy?

  No, the value of your existing property needs to be declared and will be covered under section I (material damage). You will be charged a premium will be charged for the same.