Optima Insurance Brokers Pvt. Ltd.

INSURANCE POLICIES

Financial Risks

With increasing complexity in operations and transaction, businesses face new and more complex risks every day. As margin for error reduces and smallest of errors produces enormous financial consequences, managers are asked to peer into the future and ensure that each decision taken by them produces exactly the same result as thought by them. But there are times when decisions do not pan out the way they should.

Advance Loss of Profit (ALOP) Insurance

This policy is particularly important for large greenfield projects where delay in project completion could have a substantial impact on the expected revenue of the Company, potentially impacting the sponsors’ ability to service debt and other fixed expenses.

The policy pays for Anticipated Net Profit plus Standing Charges (Fixed Expenses) during the period of delay, from the scheduled date of commencement of commercial operation up to the actual date of commencement of commercial operation, subject to a time excess and the Indemnity Period.

The delay must have occurred due to a loss during construction, and payable under the Construction/Erection All Risks policy.

The policy does not cover delay due to:

  • Inventory losses
  • Delay in shipment of supplies
  • Normal project schedule slippages
  • Non -availability of funds for repairs/replacement to damaged items
  • Cancellation of license or Govt. restrictions etc.

Some ALOP basics are:

  • The insured person in ALOP is the owner only. A contractor cannot be the insured.
  • Concurrent Material Damage (MD) insurance (EAR / CAR)  is a prerequisite 

  • Insurance period is identical to MD erection period




Optima’s core group has more than 100 man-years of experience in insurance. Our experience has trained us in reading the fine print of insurance policies, understanding it and applying it for the benefit of our clients.

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Corporate Office

M6, M Block Market, Greater Kailash-II, New Delhi-110 048
+91-11-40 50 51 52, +91-11-40 50 51 53

Registered Office

M4, Greater Kailash-II, New Delhi-100 048
+91-11-40505159
info@optima.co.in

IRDA Registration Number 326  |  CIN : U66030DL2000PTC103603  |  Category : Direct Broker (Life and Non-Life)  |  License period : 22-03-2018 to 21-03-2021
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