Section 1– Material Damage: Under this Section, contract work (permanent and temporary work and material), contract price, material or items supplied by the Principal, construction plant, machinery and equipment (CPME), provision for clearance of debris etc. are covered. Values insured herein are based on the Contractor’s bill of quantities (BOQ) and an estimated amount for contingencies. Rate of inflation is also taken into account when setting of the Sum Insured. Sum Insured of CPME are set on the replacement value.
All items insured herein are covered against all risks, other than those specifically excluded.

Section 2– Third Party Liability: Covers liability to third parties, where the Insured becomes legally liable to pay damages consequent upon:
1) accidental bodily injury to or illness contracted by any person;
2) accidental loss of or damage to property.
Costs and expenses of litigation also will be paid within the Limit provided in the policy.

Section 3– Principal’s Advance Loss of Profits

General Exclusions
- War, invasion, martial law, strike, riot and civil commotion and acts of terrorism, confiscation,    nationalisation
- Nuclear reaction, nuclear radiation or radioactive contamination
- Willful negligence
- Cessation of work, partial or total

Special Exclusions applicable to Section 1
- Consequential losses (unless to the extent covered under Section 3)
- Loss or damage due to faulty design, defective material or bad workmanship
- Wear and tear
- Loss or damage to vehicles designed and licensed for general road use and mechanical and electrical   breakdown of machinery or its own explosion however this would not exclude damage to other property
- Loss or damage to currency notes, stamps, securities, deeds etc.
- Loss or damage discovered at the time of taking an inventory
- Buildings inferior to Class 1 construction

Special Exclusions applicable to Section 2
- Expenditure incurred in doing or re-doing or making good or repairing or replacing anything covered or   coverable under Section 1 of the Policy
- Loss or damage caused by vibration or removal or weakening of support
- Liability consequent upon death, illness or injury caused to Contractors’ or Principal’s own employees
- Loss or damage to property belonging to the Insured or held in care, custody or control of the Insured
- Loss or liability arising out of use of road vehicles, locomotives, air-borne or water-borne vessels or craft
- Liability assumed by agreement

Special Exclusions applicable to Section 3
Loss of gross profit and/or increased cost of working due to any delay caused by or resulting from:
- loss or damage covered under Section 1 by way of endorsement unless it has been specifically agreed in   writing
- earthquake, volcanism, tsunami, unless specifically agreed
- loss or damage to surrounding property, CPME
- loss or damage to feedstock, shortage, destruction, deterioration of or damage to any materials   necessary of insured’s business
- restrictions imposed by Public Authority
- non-availability of funds
- alteration, improvements, rectification of defects
- loss or damage to items taken over by the Insured or to which cover under Section 1 to the policy is   expired
- any loss due to fines, penalties, cancellation of license, imposition of restriction by Authority etc
- loss or damage to construction work of prototype nature unless specifically agreed