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Car Insurance

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Car Insurance

Postby Cleary » Wed Dec 07, 2016 4:40 pm

Sir

We have a lump sum contract under FIDIC 1999. The Client has taken out CAR insurance for the whole works. In the preamble BOQ, Contractor has priced approx 10 million Dhs as per Clause 18 of Contract - including CAR insurance. Contractor has issued 3 quotations for the same CAR insurance as taken out by Client. However, client has refused to adjust the variation for CAR insurance and insists on deducting the full 10 million. Quotations for the CAR insurance are approx 450000Dhs. , how could this issue be resolved?

ANSWER: Dear Mr. Clive Jones,

The insurance clauses or provisions in a contract will often state the employer’s requirements as to the types of insurance and the required minimum amounts. Sometimes the amount of insurance is linked to the limit of liability under the contract – and, while there is no objection to this in principal, the required amount of insurance should not be more. Moreover, one must take care to ensure that the insurance provisions do not allow for liability which is separate or in excess of the overall limited liability under the contract.

A contract will state who is responsible for arranging the various required forms of insurance. It may also state that the contractor provides evidence of the insurance being in place or a copy of the insurance policy. Where there are global policies, production of a copy of the policy may give information to the employer to which he is not entitled; therefore evidence of insurance by way of a broker’s certificate, which will set out the required information as to cover, will be sufficient.

In addition that, the CAR insurance are under contractor risk, employer only the approval authority. The contractor or Insurer to cover all the employer requirements stated in the contract appendix. But, no need to match the same amount. You can ask for the clarification to the client and resubmit your claims against CAR Insurance.

Thanks and regards,

Senthil Kumar

---------- FOLLOW-UP ----------

Mr Kumar

Many thanks for your prompt response. The Client took out the CAR insurance after the Contract was signed. As per Clause 13.3. we have submitted 3 quotations for this CAR insurance(as taken out by the Client. However, Client still insists in deducting the full insurances although Contractor still coves workmens Compensation, Plant and machinery insurances, etc.
is can this be resolved as per FIDIC 99 with reference to clause 13.3? I am saying that Client can deduct the amount for CAR insurance only - as per submitted quotations.
Cleary
 
Posts: 50
Joined: Wed Feb 19, 2014 8:46 pm

Car Insurance

Postby Gren » Wed Dec 07, 2016 6:51 pm

Sir

We have a lump sum contract under FIDIC 1999. The Client has taken out CAR insurance for the whole works. In the preamble BOQ, Contractor has priced approx 10 million Dhs as per Clause 18 of Contract - including CAR insurance. Contractor has issued 3 quotations for the same CAR insurance as taken out by Client. However, client has refused to adjust the variation for CAR insurance and insists on deducting the full 10 million. Quotations for the CAR insurance are approx 450000Dhs. , how could this issue be resolved?

ANSWER: Dear Mr. Clive Jones,

The insurance clauses or provisions in a contract will often state the employer’s requirements as to the types of insurance and the required minimum amounts. Sometimes the amount of insurance is linked to the limit of liability under the contract – and, while there is no objection to this in principal, the required amount of insurance should not be more. Moreover, one must take care to ensure that the insurance provisions do not allow for liability which is separate or in excess of the overall limited liability under the contract.

A contract will state who is responsible for arranging the various required forms of insurance. It may also state that the contractor provides evidence of the insurance being in place or a copy of the insurance policy. Where there are global policies, production of a copy of the policy may give information to the employer to which he is not entitled; therefore evidence of insurance by way of a broker’s certificate, which will set out the required information as to cover, will be sufficient.

In addition that, the CAR insurance are under contractor risk, employer only the approval authority. The contractor or Insurer to cover all the employer requirements stated in the contract appendix. But, no need to match the same amount. You can ask for the clarification to the client and resubmit your claims against CAR Insurance.

Thanks and regards,

Senthil Kumar

---------- FOLLOW-UP ----------

Mr Kumar

Many thanks for your prompt response. The Client took out the CAR insurance after the Contract was signed. As per Clause 13.3. we have submitted 3 quotations for this CAR insurance(as taken out by the Client. However, Client still insists in deducting the full insurances although Contractor still coves workmens Compensation, Plant and machinery insurances, etc.
is can this be resolved as per FIDIC 99 with reference to clause 13.3? I am saying that Client can deduct the amount for CAR insurance only - as per submitted quotations.
Gren
 
Posts: 30
Joined: Sat Apr 05, 2014 10:04 am

Car Insurance

Postby Mardel » Sat Dec 10, 2016 2:46 am

Dear Mr. Clive Jones,

I did not understand your situation. Why the client deleted that item after signing the contract. As I understood, As per Cl. 18.1 - In your project The Client is the insuring party and you are joint insurer. If, its yes you can not claim as a Variations.

Thanks and regards,

Senthil Kumar  
Mardel
 
Posts: 40
Joined: Sat Mar 15, 2014 4:24 am


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