Whether EAR or CAR policy?
There are many queries is whether the insurance of any new project will be covered under EAR or CAR policy especially when Plant and Machineries are also part of the project. To identify the same, if the cost of civil work is more than 50% of the total project cost then CAR policy will be issued not EAR. The difference between these two policies is that the minimum period of insurance under EAR policy is 2 months including one month testing while under CAR it is 3 months without testing provision. Under CAR policy pre-operative expenses of the project cost are covered but not under EAR. The mini Hydro Projects should be covered under CAR for civil work and Plant & Machinery should be covered under EAR to cover the Testing of plants and machinery.