Q: We got a contract to build a hospital building. The contract specifies us to provide insurance for the project and the automobiles. How can we obtain this insurance as the value of the site is zero because presently there is no building there? A: Most of the professional companies insist on the contractor to obtain insurance for the project to avoid the default of the contractor due to financial loss whilst the contract is in progress. This type of risk can be covered under contract work insurance also known as contractor all risk insurance. The coverage is based on the completed value of your contract. You can also get the extensions for your marine insurance and public liability. If the owners have surrounding property, it can also be covered under this policy along with the constructional plant and equipments. If you are a regular contractor, you can also explore an annual policy which will help you in getting a competitive rate from the Insurer. These policies can also be extended to cover testing and maintenance period. Once the project is handed over to the client, the coverage comes to an end and the completed property can be covered under standard property or fire policy. On automobile insurance, your vehicles may already have the basic Third Party Insurance policies, which is mandatory as per the current regulation. You have to obtain a certificate of insurance from your Automobile Insurer. Q: One of our sales staff while on duty met with an accident. He was admitted to the hospital with a fractured knee cup. We contacted the insurers and they refused to entertain the claim by saying that it is work-related? A: The standard medical insurance policies issued in Saudi Arabia exclude any work-related accident and/or disease. Under normal circumstances, work-related injuries are not covered by medical policies. However, certain insurers provide extension to the work-related injuries under medical coverage, or cover medical expenses under separate Workmen Compensation Policy. The current mandatory CCHI medical Insurance cover also excludes work related injuries and/or diseases. You may have a re-look at your policies. Most of the establishments are paying Government Organization of Social Insurance (GOSI), a fees at a fixed rate to cover the employees against work related injuries and diseases. There is a time limit for lodging claims with GOSI. If your company is a member of GOSI and is regularly paying their premiums, then you can recover your claim from GOSI. Some major hospitals have very good setup to handle GOSI cases. * Shujaath Ahmed Khan, an MBA, General Manager, Creative Associates is also a consultant and an expert in Insurance, Investments and Real Estate. He can be contacted at [email protected], website-www.creativeassociates.blogspot.com. __
