NEW ZEALAND TRANSPORT AGENCY

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1 October 2014 NEW ZEALAND TRANSPORT AGENCY PRINCIPAL ARRANGED INSURANCE (PAI) CONTRACTORS CLAIMS MANUAL Marsh Insurance Manual 1

2 CONFIDENTIALITY This Claims Manual contains information which is confidential to New Zealand Transport Agency and Marsh Ltd (Marsh). Accordingly, we trust you will understand this Claims Manual is provided to New Zealand Transport Agency and its Contractors in confidence and may not be reproduced in any form or communicated to any other person, firm or company without the prior approval of Marsh Ltd. Marsh Insurance Manual 2

3 TABLE OF CONTENTS SECTION ONE... 1 INTRODUCTION... 1 SECTION TWO... 3 COVERAGE EXPLANATION... 3 THE PAI INSURANCE PROGRAMME... 3 SECTION THREE... 4 CLAIM PROCEDURES... 4 CONTRACT WORKS CLAIMS... 4 GENERAL (PUBLIC) LIABILITY CLAIMS... 5 Marsh NZTA Principal Arranged Insurance Contractors Claims Manual i

4 Marsh NZTA Principal Arranged Insurance Contractors Claims Manual ii

5 SECTION ONE INTRODUCTION The Transport Agency s (NZTA) Principal Arranged insurance (PAI) program is designed to protect and deliver benefits to all participants involved with crown funded road construction contracts. The Principal Arranged Insurance policies provide the following benefits to Contractors:- Comprehensive insurance coverage Contract certainty Consistent insurance policy form Strong international insurers with expertise in construction risks Competitive terms and conditions These factors all assist in effectively managing construction and liability risks for NZTA s infrastructure developments. This manual provides information contractors will need to make a claim against NZTA s PAI Policies. Following the procedures detailed in this manual will ensure that a contractor's claim is actioned and resolved as soon as possible. Marsh Client Executives NEIL COOK MARSH CONSTRUCTION PRACTICE Phone: Phone (mobile): Fax: neil.cook@marsh.com MARK RANKIN MARSH WELLINGTON Phone: Phone (mobile): Fax: mark.rankin@marsh.com Marsh NZTA Principal Arranged Insurance Contractors Claims Manual 1

6 Marsh Claims Consultant Contract Works & Public Liability RAO KANDARPA Phone: Marsh Limited PricewaterhouseCoopers Building The Terrace PO Box 699 Wellington Telephone: Marsh NZTA Principal Arranged Insurance Contractors Claims Manual 2

7 SECTION TWO COVERAGE EXPLANATION The PAI Insurance Programme Two separate insurance policies make up the PAl programme. A brief summary of these two policies follows: CONTRACT WORKS INSURANCE MATERIAL DAMAGE This is an annual Contract Works policy that provides cover against physical loss, destruction or damage to the contract works including while in transit, in storage, under erection, construction, installation, testing and commissioning unless caused by a policy exclusion (refer to policy document). PUBLIC & PRODUCTS LIABILITY INSURANCE Third party legal liability cover for personal injury or property damage. The full policy wordings are available for review and download at Marsh NZTA Principal Arranged Insurance Contractors Claims Manual 3

8 SECTION THREE CLAIM PROCEDURES Contract Works Claims Advise us promptly of any incident that might give rise to a claim. We will be able to tell you about any specific policy claims condition that may need to be complied with. The following procedures are generally relevant to all events: You must take immediate steps to limit damage and minimise the loss. Take necessary steps to prevent further loss or damage. Secure the site. Promptly notify Marsh Ltd who will arrange for the nominated loss adjuster to be appointed. NZTA s Principal Representative to the contract should also be notified of the loss or damage. If loss or damage has been incurred to the contract works during transit to site then a written demand should be made against the carrier immediately upon discovery of the loss or damage. Arrange for photographs of the damage. Full details of the incident and claim must be supplied as soon as practicable. The Incident Notification Form can be completed on-line at Damaged property and other relevant evidence or information must be preserved for the nominated loss adjuster. Arrange for statements from witnesses, employees and contractors. Initiate accounting procedures to record all costs associated with the repair or restoration. Arrangements are to be made for this work to be supervised by the Principal's Representative Project Manager, their representative or the nominated loss adjuster. Daily Work Sheets are to be countersigned at the end of each day's work or as soon as possible the following day Notes 1. These procedures apply regardless of whether the initial loss estimate exceeds the relevant policy deductible. 2. Policy deductibles apply to the contract and/or works values in total for each occurrence. Marsh NZTA Principal Arranged Insurance Contractors Claims Manual 4

9 General (Public) Liability Claims In the event of a Public Liability incident: You must provide the right response to incidents on or around the worksite be they minor or serious Provide a high standard of care and response and if requested by the injured person, locate a person experienced in first aid and call an ambulance or doctor for serious injuries. Immediate verbal advice should be given to Rao Kandarpa, the Claims Consultant for NZTA and the NZTA supervisor relevant to the Contract. The immediate advice should be followed by written confirmation by completing the on-line Incident Notification Form at Do not disclose to any third party that there is insurance in force and forward any demands or correspondence unanswered to Rao Kandarpa at Marsh. Dependent on circumstances and/or quantum, an insurance loss adjuster may be appointed by Insurers or their representative to investigate the matter. Instructions and/or procedures will be provided by the adjuster but under no circumstances (without the consent of underwriters or their representative) is an admission, offer or agreement to settle any claim to be made to any third party. FAILURE TO COMPLY WITH THIS REQUIREMENT COULD INVALIDATE THE CLAIM FOR INDEMNITY UNDER THE POLICY. If in any doubt as to the necessity to notify an incident or as to the action you should take, please do not hesitate to contact Rao Kandarpa, the Claims Consultant for NZTA for advice and assistance. The Insured is required to provide all reasonable information and assistance to underwriters to aid the conduct of the claim. Underwriters are entitled to take over and conduct, in the Insured's name, the defence, settlement or recovery proceedings in respect of any event for which indemnity is provided under the insurance policy. Do Not In any way admit liability even if pressed Comment on the incident Offer any explanation Do Use the following draft Claims Acknowledgement letter if a claim is lodged and you are pressed to acknowledge the claim by the claimant. Complete the on-line Incident Notification Form at Send all future correspondence from the claimant to Marsh. Marsh NZTA Principal Arranged Insurance Contractors Claims Manual 5

10 (your letterhead) Legal Liability Claims Acknowledgement letter Without Prejudice Dear We refer to your recent complaint against the company dated in respect of.. At present we are carrying out a detailed investigation of the circumstances and contact will be made with you as soon as these investigations are completed. Yours faithfully Marsh NZTA Principal Arranged Insurance Contractors Claims Manual 6

11 Marsh NZTA Principal Arranged Insurance Contractors Claims Manual 7

12 Marsh NZTA Principal Arranged Insurance Contractors Claims Manual 8

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