Advance Loss of Profit (ALOP) and Delay in Start Up (DSU) insurance policies
- This policy (ALOP) is issued to projects under construction in conjunction with material damaged policy such as EAR or CAR
- Any Loss of expected profit owing to delay in commencement of commercial operations as planned in the project report, is covered
- The delay in commencement of commercial operation must have been caused by any physical loss or damage to the project under construction.
- A claim under this policy is payable only when a claim under the material damage policy viz. EAR or CAR is admissible.
- The loss of profit due to delay in commencement of commercial production caused by a marine transit accident, the same can be covered under a Delay in Start Up (DSU) policy. This policy is similar to ALOP policy in all other respects.
- The delay is measured basis the date given in the Bar Chart
- The delays caused due to any other reasons than by a physical loss or damage covered by material damage policy, to the project have to be adjusted to the overall delay in COD of the policy
- The sum insured depends on indemnity period chosen and the projections of the detailed project report (DPR)
- Irrespective of number of covered incidents and number of claims under CAR/EAR claims, there can be only one claim under these policies