Welcome to Law-Forums.org!   

Advertisments:




Sponsor Links:

Discount Legal Forms
Discounted Legal Texts


Commercial Insurance - Projects

Workers Compensation Law Discussion

Commercial Insurance - Projects

Postby Camero » Sat Nov 19, 2016 6:21 am

"This is about project Insurance of steel industry.

Explosion occured in PCI secton of pelletization plant during erection.

A fire loss was recorded & surveyed.

A fire Fighting endorsement was inserted in the policy without knowledge & concurrence of insured.

Also, some safety concerns regarding health & safety of workers were raised by authorities as well as  insurance company.

They say the claim is not payable.

Is it so or how can we counter the insurance company."

ANSWER: Debjani;

I really can't answer your question because I don't know what the endorsement says or, if that is the reason the claim was denied. Also, was the endorsement in the policy from the start or added after the effective date? Insurance policies generally have many endorsements and in general, it's the insured's responsibility to read their policy and if there are any concerns with endorsements or language, address them with the insurance company prior to purchasing the policy. The insurance company doesn't have to "ask" if they can add an endorsement, they have the right to. If the customer doesn't like the endorsement, you have the right to change insurance carriers. My only advice to you is this, IF the endorsement was added after the effective date of coverage and if that endorsement REDUCED or otherwise LIMITED coverage previously given in the policy, you may have legal action against the insurance company. In the US, carriers can't take coverage away once the policy has been issued. I hope this has helped. Good luck!

Kristen

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

Thanks Kirsten.It is definitely of help.

This is in India . But , I think insurance principles are same worldwide.In India policies are purchased in this mode.

Risk Assessment - Premium Quote - Cover Note(Held Cover Letter) - Policy. In this case the quotation & cover note did not carry the endorsement. But , the policy delivered about three months later did.The endorsement was not elaborated/explained at all. Just written as Fire Fighting Endorsement. Insured wrote to the insurance company after receiving the policy that it might be a mistake and hence remove it or ignore their request if it is a mistake.The insurance company did not write back.

Also, can you explain me the meaning of an exclusion - CESSATION OF WORKunder engineerig policy - erection all risk.

Awaiting your response.
Camero
 
Posts: 45
Joined: Mon Jan 06, 2014 3:46 am

Commercial Insurance - Projects

Postby Lloyd » Thu Nov 24, 2016 4:40 pm

"This is about project Insurance of steel industry.

Explosion occured in PCI secton of pelletization plant during erection.

A fire loss was recorded & surveyed.

A fire Fighting endorsement was inserted in the policy without knowledge & concurrence of insured.

Also, some safety concerns regarding health & safety of workers were raised by authorities as well as  insurance company.

They say the claim is not payable.

Is it so or how can we counter the insurance company."

ANSWER: Debjani;

I really can't answer your question because I don't know what the endorsement says or, if that is the reason the claim was denied. Also, was the endorsement in the policy from the start or added after the effective date? Insurance policies generally have many endorsements and in general, it's the insured's responsibility to read their policy and if there are any concerns with endorsements or language, address them with the insurance company prior to purchasing the policy. The insurance company doesn't have to "ask" if they can add an endorsement, they have the right to. If the customer doesn't like the endorsement, you have the right to change insurance carriers. My only advice to you is this, IF the endorsement was added after the effective date of coverage and if that endorsement REDUCED or otherwise LIMITED coverage previously given in the policy, you may have legal action against the insurance company. In the US, carriers can't take coverage away once the policy has been issued. I hope this has helped. Good luck!

Kristen

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

Thanks Kirsten.It is definitely of help.

This is in India . But , I think insurance principles are same worldwide.In India policies are purchased in this mode.

Risk Assessment - Premium Quote - Cover Note(Held Cover Letter) - Policy. In this case the quotation & cover note did not carry the endorsement. But , the policy delivered about three months later did.The endorsement was not elaborated/explained at all. Just written as Fire Fighting Endorsement. Insured wrote to the insurance company after receiving the policy that it might be a mistake and hence remove it or ignore their request if it is a mistake.The insurance company did not write back.

Also, can you explain me the meaning of an exclusion - CESSATION OF WORKunder engineerig policy - erection all risk.

Awaiting your response.
Lloyd
 
Posts: 46
Joined: Thu Jan 30, 2014 4:03 pm

Commercial Insurance - Projects

Postby Powell » Wed Nov 30, 2016 1:27 am

Debjani;

From what I've been able to discern, the Cessation of Work Exclusion is a standard exclusion in this type of policy and basically, if work on the project has stopped, there is no coverage regardless of whether the cessation is total or partial. I would assume that there may have been endorsements to counter act this exclusion and provide some coverage but of course, not after the fact. I hope that has answered your question. Good luck.

Kristen
Powell
 
Posts: 44
Joined: Fri Mar 07, 2014 4:58 am


Return to Workers Compensation

 


  • Related topics
    Replies
    Views
    Last post