This is an insurance designed to provide indemnity under Section I in respect of material damage to the contract works which happened during the period of construction. Cover is effective from the date of commencement of the contract works until the expiry of the Construction Period or when the works are completed and taken into use, whichever shall first occur. Cover during the Maintainance Period is in respectof loss, destruction or damage arising from a cause occurring during the Construction Period but prior to the commencement of the Maintainance Period and occasioned by the Contractor in the course of any operations carried out by him for the purpose of complying with the obligations under the Conditions of the Contract.

The policy also provides indemnity under Section II in respect of the Insured's legal liability to pay compensation to third parties for bodily injury or illness and for loss or damage to property occuring as a result of an accident at the situation of the Contract and arising out of the performance of the Contract by the Insured . The cover is inclusive of all costs and expenses of litigation recovered by the claimants and also those incurred by the Insured with the written consent of the Underwriter.

• War and kindred risks, civil war, mutiny, civil commotion assuming the proportion of or amounting to popular rising, military rising, insurrecction, rebellion, revolution, conspiracy, military or usurped power, martial law etc and atcs of terrorism.
• Permanent or temporary dispossession resulting from confiscation, nationalisation, commandeering or requisition by any lawfully constituted aauthority or permanent or temporary dispossession of any building resulting from unlawful occupation of such building by any person.
• Ionizing radiations or contamination by radioactivity from nuclear fuel or nuclear waste from the combustion of nuclear fuel.
• Nuclear weapons material.

• Loss or damage to locomotive, waterborne vessels or craft, aircraft or any mechanically propelled vehicle other than vehicles at the Situation which have been included as Property Insured.
• Cash, bank notes, treasury notes, cheques, postal orders, money orders, stamps, securities, deeds and other financial instruments etc.
• Plant, machinery or equipment due to its own explosion, mechanical oe electrical breakddown, failure, breakage or derangement but consequential damage to surrounding property insured will be coverd.
• Wear and tear, rust, mildew or deterioration, insects, larvae or vermin of any kind, defective design, acts of the Insured contrary to reconised rules of engineering or any regulation issued by the authority, cessation of work whether total or partial, all unless where loss by fire or explosion.
• Replacement or rectification necessary due to detective material or workmanship or normal upkeep or normal making good.
• Damage to tyres unless vehicle or plant is damaged at the same time.
• Disappearance or shortage revealed purely by stocktaking.
• Destruction or damage by lawfully constituted authority.
• Consequential loss of any kind including penalties, fines, loss of contracts or loss arising from delays in completing or negotiating contract.
• Loss of or damage or non-recovery of drilling accessories below ground.

• Liability assumed by the Insured by agreement such as under a contract.
• Liability arising out of contract of employment.
• Insured's own property or those under care custody or control of the Insured.
• Bursting of any boiler, economizer, pressure vessel or apparatus.
• Damage due to vibbration, removal or weakening of support.
• Liability in relation to the ownership, possession or use of machines or vehicle licensed for road use.
• Vessel or craft or aircraft including loading or unloading there of.
• Liability out of technical or professional advice given by the Insured or any person acting on behalf of the Insured.

Extensions are possible on some of the exceptions under Section I through endorsements and subject to additional premiums. Deductibles are generally provided under two headings for Section I, one for natural perils losses which is normally higher and another one for other losses. In the case of Section II, the deductible is usually applicable to Third Parties' property damage.

Note: This information is for briefing purpose only. Full detail and conditions of policy cover are contained in VIA's official policy wording.