This policy (ALOP) is issued to projects under construction in conjunction with a 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 the 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 the indemnity period chosen and the projections of the detailed project report (DPR)
Irrespective of the number of covered incidents and number of claims under CAR/EAR claims, there can be only one claim under these policies