Reinsurance Coverage of Saman Re for Engineering and Energy Insurance
Engineering Insurance
Any substructure, construction, or industrial project can be exposed to a wide range of risks throughout the entire construction process, from the very beginning of the project all the way through the start-up period and temporary delivery. Under engineering insurance policies, it is the responsibility of the insurer to cover damages or losses that arise from the design, construction, installation, and maintenance of structures and machines. This coverage is based on the terms of the insurance policy and is intended to protect engineers from liability. Furthermore, this type of insurance also covers losses resulting from machinery breakdowns (MB). Computer and electronic equipment (EE), as well as hidden building defects, are also covered by this type of insurance.
Types of Engineering Insurance
Coverages in construction period includes:
- Contractors All risk Policy (CAR)
- Erection All Risk Policy (EAR)
Coverages in operation period includes:
- Contractor’s Plant and Machinery Policy (CPM)
- Civil Engineering Completed Risks Policy (CECR)
- Machinery Breakdowns Policy (MB)
- Machinery Loss of Profits Insurance Policy (MLOP)
- Electronic Equipment Policy (EE)
- Deterioration of stock Policy (DOS)
- Latent Defect Building Policy (LDB)
Clauses of Engineering Insurance
When it comes to insurance policies, the clauses are the conditions that define the extent of the coverage. In the case of engineering insurance policies, each field has its own set of clauses, which the policyholder can adjust to increase or decrease their coverage. However, it’s important to keep in mind that any changes to the clauses will also impact the premium amount. There are four main types of clauses in engineering insurance policies, which include clauses that increase coverage, clauses that reduce coverage, clauses that limit coverage, and Conditional clauses for coverages. It’s important to carefully review each policy’s clauses to ensure that you have the coverage you need in case of any unforeseen events.
Oil and Energy Insurance
The oil, gas, and petrochemical industries in our country make a significant contribution to GDP, but they come with a lot of risks and require huge investments. Insurance plays a vital role in managing these risks and creating peace of mind for the industry. However, insurance in this industry is quite different from others due to the various risks involved in the exploration, exploitation, transfer, and sale processes. Insurance in this industry comes with special complexities, and the potential damage can be so large that one or more insurance companies may not be able to compensate for it. Therefore, cooperation and coordination among companies are essential for risk distribution through consortia and reinsurance.
Division of Oil, Gas and Petrochemical Insurance
As per the guidelines stated in Note 2 of Article 10 of Regulation No. 76 of the Central Insurance of the Islamic Republic of Iran, it can be observed that oil, gas, and petrochemical insurances are linked to the following aspects:
Onshore Insurance Policies
These policies typically cover a range of activities related to oil and gas exploration and extraction, including wells, facilities, drilling operations and devices. In addition, they may cover oil and gas refineries and their development, petrochemical facilities in operation, construction and installation of oil, gas and petrochemical facilities, factories, motor oil production, and oil tanks and pipelines in the dry sector.
Offshore Insurance Policies
Insurance policies for the offshore sector cover a range of activities related to oil and gas exploration and extraction. This includes operations such as well drilling, offshore drilling, facility construction, and device deployment. It also covers the loading of equipment like jackets and decks onto barges and their transportation to the installation site. Additionally, policies cover construction and reconstruction of offshore drilling platforms, as well as maintenance and operation of pipelines and other equipment involved in oil and gas exploration and extraction activities in the sea.
The types of insurance coverage provided in the energy sector are:
- Erection All Risk (EAR)
- Property All Risk (PAR)
- Contractors All Risk (CAR)
- Comprehensive Machinery Insurance (CMI)
- Operators Extra Expense (OEE)
- Offshore Drilling Units
- Industrial All Risk (IAR)
- WELCAR
- Advance Loss of Profit (ALOP)
- Machinery Breakdown (MB)
- Comprehensive General Liability (CGL)
- Energy Package and…
Saman Reinsurance Co. collaborates with direct insurance companies by accepting a range of engineering and energy sector risks in an optional and contractual format. Having expertise and technical knowledge, Saman Reinsurance Co. provides reinsurance coverage for all types of risks, including standard CAR, EAR, and PAR coverages, as well as customized coverages.
