Continuity cover under Project Insurance Policies


It is understood that many underwriters still do not have the clarity about the provision of continuity cover available under project insurance policies.  In view of the same I would  like to clarify that property underwriter should not remain under the impression that if continuity cover is opted for say 6 months, then the completed portion of the project will remain covered under project insurance policies indefinitely if the integral testing is completed within selected period of 6 months.

Please understand Continuity cover starts after completion of testing and commissioning of a particular unit or part of project which is required to wait for completion of remaining units of the project to participate in integral testing of whole plant.
If the period allowed for continuity cover is 6 months and integral testing commences after expiry of this period then the completed portion shall remain uncovered till commencement of integral testing.

Comments

  1. KISLAY KUMARJune 10, 2021 at 1:44 PM

    Thanks a lot for the clarity. However, I have a query sir.

    What is PG( performance guarantee test) anD can it be covered in EAR or not ? if not why?
    My Details.
    Kislay Kumar
    Property and Engg Underwriter

    ReplyDelete
    Replies
    1. KISLAY KUMARJune 10, 2021 at 2:00 PM

      Dear Sir,

      I am a good fan of you. I have gone through your youtube videos n Fire and Flop.

      Delete

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