• Insurance for loss or damage to the Works, Plant and Materials.
• Insurance for loss or damage to (Contractor’s) Equipment
• Insurance for loss or damage to property (except the insurance provided to cover the above items), and
• personal injury or death.

The Contractor is required to provide evidence both that (i) the insurances have been effected and (ii) copies of the policies and certificates have been delivered to the Project Manager, for approval, before the Start Date.

No work of any kind can start on Site until the Contract insurances are effective.

As far as the Employer is concerned, it is not necessary for any Subcontractor to provide insurance. The Contractor may wish any Subcontractor to provide insurance as part of his subcontract agreement, but this is not a concern of the Employer.

Insurance for loss or damage to the Works, Plant and Materials
Reference Particular Conditions of Contract, the minimum cover shall be in the amount of 110% of the Contract Amount, with a maximum deductible of NRs 500,000

Insurance for loss or damage to the Works, Plant and Materials
Reference Particular Conditions of Contract, the minimum cover shall be in the amount of NRs 5,000,000 with a maximum deductible of NRs 100,000.

The insurance shall provide cover from the contract Start Date until the end of the Defects Liability Period – it would be usual for the insurance after the issuance of the Certificate of Insurance only to cover loss or damage caused by the Contractor in the course of other operations during the Defects Liability Period.

This insurance is to be in the joint names of the Employer and Contractor, ie the Employer is to be a named insured. It is not sufficient for the Contractor to submit his blanket policy.

Insurance for loss or damage to (other) property
Reference Particular Conditions of Contract, the minimum cover shall be in the amount of NRs 1,000,000 per occurrence – with the number of occurrences unlimited - with a maximum deductible of NRs 100,000.

Insurance for personal injury or death
The minimum cover for personal injury or death is:

• for Contractor’s employees – as specified in the Labour act of Nepal (usually for a minimum of 50 labour, and
• for other people is NRs 1,000,000 with an unlimited number of occurrences

For a Subcontractor’s employees, the insurance may be effected by the Subcontractor, but the Contractor shall be responsible for compliance with this.