Date post: | 18-Dec-2014 |
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Sultan Al-Khomashi
September 2014
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September 2014
Sultan Al-Khomashi – GM P&C
Owner Controlled Insurance Program (OCIP) A missing advantage for project owners & developers
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Transport & Infrastructure
Fundamental to any society
Vital for society and economy development
Connects
people and takes the economy to whole new levels
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The Future of Modern economy
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Saudi Arabia 750bn SAR Infrastructure projects by 2020
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#1 Construction market in middle east
11th Globally in infrastructure potential investment
That brings new
Challenges to the market
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Mega Projects characteristics
• Very high cost projects
• Multi interdependent contracts
• High risk exposures
• Unique perils
• Multi-year execution programs
• Community vital projects
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Traditional insurance
Not enough
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The traditional insurance - Disadvantages
• Different insurance policies & providers
• Low quality of insurance coverage
• Insurance premiums are imbedded into the contractors cost structure
• Principal pays indirect costs
• Gaps or duplications of coverage
Project instability
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it’s time to think about …
OCIP
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What is OCIP?
The Owner Controlled Insurance Program is a
Tailor-made Policy held by the project owner
wrapping up different policies into a single program
to cover virtually all liability and loss arising from
construction project.
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OCIP covers all project phases
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Testing/handover phase
Construction phase
Operational phases
The design phase risk
OCIP is a wrapped-up package of
policies
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OCIP
Workmen’s Compensation
Operational liability
Construction All Risks
Plant and equipment coverage
Professional Indemnity
Delay in Startup
Marine Cargo
Advance Loss of profit
Who is covered under OCIP?
• Project Owner/ Principal
• Financial Parties
• Construction Contractors
• Sub-Contractors of all tiers
• Architects and Engineers
• Consultants
• Manufacturers or suppliers
• Anyone Who is "Enrolled"
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OCIP features
One Program
Control
Consistent Coverage
Dedicated Limits
No Cross Litigation
Consistent Services
Decreased Markups
High Liability limits for Small Contracts
Full cover for operation
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Peace of mind
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You will have
Additional benefits
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Risk & Loss Control
Claim Management
Better financial
arrangements
Traditional CAR/EAR insurance
Vs. OCIP
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Tra
d.
Ins
ura
nc
e
Purchased by Contractors
Limited liability
No workers’ compensations
Narrow Liability Limit
No completed operations coverage
Gaps on coverage
OC
IP
Purchased by Owner
Wide liability coverage
Can include workers compensation
Can include general liability with higher limits
Can include completed operational coverage
OCIP vs. Traditional insurance
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Potential saving in OCIP
New challenges needs..
New perspective
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New solutions
Final Slide
Tawuniya logo, contact information
Q&A
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Thank
you