Bond

Historically, banks have usually provided bonds. A bond is not an insurance policy per se but essentially a form of financial guarantee. It is a guarantee by one party (the surety or guarantor) to another party (the person requesting for the bond) that a third party (the person/company applying for the bond) will meet its contractual obligations.

SONARWA can provide the following types of bonds (guarantees) :

• Performance Bond
• Advance Payment Bond
• Bid/Proposal Bond
• Shares Indemnification Bond
• Customs Bond

Prior to providing the guarantee, some basic documentation are usually required by the guarantor to enable assessment of the bond request.

These include but are not limited to the following :

• Completed Bond Proposal Form
• Certificate of Incorporation/Registration
• Letter of Contract Award
• Contract Agreement
• 3 Years Audited Statement of Account
• Evidence of previous Contract Performance (Certificate of Completed Jobs)
• Counter Indemnity by the Company
• Personal Indemnity by a Director of the Company
• In the case of Customs Bond, the Bond form provided by the Custom & Excise department must be made available
• Similarly, Shares Indemnification Forms from the Company should be provided in respect of shares indemnification bond
• Collateral Security up to a minimum value of the bond is required

Machinery Protection Insurance (Loss of profit)

• This insurance policy provides cover for loss of gross profit, wages and spoilage (if cover is extended to include the cost of replacing and/or recovering material spoiled in the course of processing and/or cost incurred in cleaning the affected machinery) if at any time during the period of insurance specified in the insurance schedule, the business carried on by the insured at the premises specified in the insurance schedule is interrupted or interfered with as a consequence of an accident to any insured machinery.

• An accident shall mean sudden, unforeseen, physical loss or damage to machinery specified in the insurance schedule of machinery whilst it is at work or at rest, or dismantled for the purpose of cleaning, overhauling or of being shifted within the premises, or in the course of subsequent re-erection on the premises specified in the insurance schedule.
• For the loss to be admissible, it has to be resultant from the perils covered under the machinery breakdown insurance policy.

• Invariably, the machinery breakdown loss of profit insurance cover can be provided when there is in existence a Machinery Breakdown insurance cover for the same machinery to be insured under machinery breakdown loss of profit cover.

Machinery Breakdown Insurance

The SONARWA Machinery Breakdown Insurance provides cover for insured machinery against sudden and unforeseen physical loss or damage, necessitating its repair or replacement resulting from fortuitous working accidents such as maladjustment, loosening of parts, failures or faults in protective devices, entry of foreign bodies, tearing apart due to centrifugal forces, shortage of water in steam boilers or pressure vessels, over-pressure (except when caused by excluded occurrences), short-circuit, overvoltage or overcurrent (except when caused by excluded occurrences) defects or faults in design, material or manufacturing and faults in erection, faulty operation, lack of skill, carelessness, malevolence of employees, storm and any other event that is not specifically excluded in the policy.

Circumstances

The cover applies whether the insured property is at work or at rest or dismantled for the purpose of cleaning, overhauling, or of being shifted within the premises, or in course of subsequent re-erection.

Premises/Location

The insured machinery is covered as long as it remains on the premises specified in the insurance schedule.

Computer/Electronics Equipment

SONARWA’s Electronic Equipment/Computer Insurance provides cover for insured equipment described in the insurance schedule when such equipment, used in the performance of its proper function, suffer any unforeseen or accidental loss or damage from any cause (other than those specifically excluded) necessitating repair or replacement.
Cover in this regard is limited to hardware and ancillary equipment.

SONARWA will also reimburse the insured for the cost of clearance of debris from and cleaning of insured property damaged by any peril covered by this policy.

Perils insured by this policy are incorrect operation ; negligent or malicious acts of employees or third parties ; burglary, theft, robbery and the events related to them ; faulty design and material ; short circuit, excessive voltage, induction ; fire, lightning and explosion of all kinds (including the damage caused by fire-fighting and rescue operations) ; scorching and charring, smoke, soot ; forces of nature such as storm, flood, hail, landslide except seismic perils ; any influence of water and moisture, and corrosion resulting from them ; any other accident not specifically excluded.

The SONARWA Computer/Electronic Equipment Insurance cover can however be extended to provide for :-

LOSS OF DATA & DATA MEDIA
In this regard, compensation will be provided to indemnify the insured for costs which the insured shall incur for replacement of data media, data and regeneration of data if such cost(s) arise in connection with indemnifiable loss or damage (occurring during the period of insurance) to hardware insured under the policy, provided the data media are at locations declared in the policy schedule or in transit between those locations

INCREASED COST OF WORKING
All additional cost(s) which the insured shall incur to ensure continued data processing on substitute equipment if such costs arise as an unavoidable consequence of indemnifiable loss or damage (occurring during the period of insurance) to insured hardware, shall be compensated by the policy under this extension

Contractor /Erection All-Risk Insurance

Contractor All-Risk Insurance

• Contractors’ All Risks (CAR) insurance is a property insurance by which any building or civil engineering project under construction is protected against accidents resulting in physical damage to or the destruction of works in progress, materials and other similar items brought to the site.

• This policy provides cover for those who have an immediate material interest in a project. These are the Principal (employer), the Contractor and usually all sub-contractors, often including suppliers of materials and equipment.

• However, professionals such as Consulting Engineers and Architects are excluded from cover because the CAR policy excludes losses or damages arising from defective workmanship or materials, design, plan and specifications.

• Construction All Risks insurance is essentially a combination of insurances covering the temporary and permanent works (of the project), tools, equipment and construction machinery of the insured against any unforeseen and sudden physical loss or damage from any cause whatsoever, other than those specifically excluded. The insurance also includes a Third Party Liability cover against legal liability for damages as a consequence of the performance of the contract.

Erection All Risk

• Erection All Risks Insurance provides cover for the installation and erection of plant, machinery and equipment. Cover is usually effective from the inception of work or off-loading of materials on site until successful testing and commissioning of the machinery, equipment or plant.

• It provides similar cover like Contractor’s All Risk (CAR) Insurance policy against unforeseen and sudden physical loss or damage from any cause whatsoever, other than those specifically excluded.

• The insurance also includes a Third Party Liability cover against legal liability for damages as a consequence of the performance of the contract.

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