Ref: A1 Q2/ KPCL/Insurance/Mega/2015-16/
February 18, 2015
To,
Dear Sir/Madam,
Re: Quotation for Mega Risk Cover for assets towards All
Risk including Machinery Breakdown, All Risk Business
Interruptions including Loss of profit as a result of Fire
and Machinery break down, the Add On Covers and the
Terrorism Cover on Floater basis for the Raichur
Thermal Power station (RTPS), Shaktinagar, Raichur
and Bellary Thermal Power Station (BTPS), Kudithini,
Bellary assets indexed to contemporary values. reg.
Karnataka Power Corporation Ltd., (KPCL) (Govt of Karnataka
Entrprise) Bengalore., having Thermal Power projects at Shakthinagar
(Raichur) and at Kuduthini, Bellary proposes to obtain Mega Risk
Cover for the RTPS, Raichur and BTPS, Bellary’s assets towards All
Risk including Machinery Breakdown, All Risk Business Interruptions
including Loss of profit as a result of Fire and Machinery break down
and the Add On Covers with Terrorism cover with effect from the 00:00
hrs of the 21st of March 2015 upto 20th of March, 2016 as per the
terms and conditions laid down here under:
You are required to quote your most competitive rates of premium for
the entire indicated range of perils as detailed in enclosed annexure (A)
to (D). IRDA registered General Insurance companies are also
encouraged to form a consortium of not more than 9 Insurance
Companies, through mutual interactions and are required:
1.
To submit as part of their tender bid, a common letter by the
members of the Consortium indicating the name of the member
Insurance Companies and a common financial bid, duly signed
and sealed by the members as per the attached-Annexure (E).
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2.
3.
Also to indicate in a separate individual letter addressed to KPCL
in their respective bid Envelopes, indicating their Company’s total
Underwriting Capacity (a) Underwriting Capacity as a result of Net
Retention i.e., the Company’s own strength and (b) Underwriting
Capacity bought through Treaties-Annexure(F) to be submitted in
Company’s letter head duly sealed and signed.
Insurance Companies are requested not to include the Inter Group
Treaty Capacity as all Insurance Companies are competing on
their individual capacity, even though they will be part of different
Consortiums.
4.
No Insurance Company can participate in more than one
Consortium.
5.
No Consortium can comprise of more than 9 Insurance
Companies and the consortium should ensure that the
summation of the Underwriting Capacities all the members of an
individual Consortium should be able to pick up the full risk
based on the PML assessment of the Risk , the PML assessment
being Rs 1767.30 Crore towards the highest location asset
accumulation of
Raichur Thermal Power Station
plus the
exposure towards RTPS’s Gross Profit and the Add on Cover
exposure of RTPS. In case the Underwriting capacities adds up to
the PML of the Mega Policy then all the members of the successful
tender/Consortium will get the Coinsurance in the policy as per
the guidelines indicated in the tender. If
however the
Underwriting capacities of the successful tender/consortium
members do not add up to the PML of the Mega Cover then it will
be the successful Tender/Consortium Leader’s responsibility to
place the residual risk beyond their Underwriting Capacity on a
facultative mode.
6.
The evaluation process will entail the award of the Contract going
to the lowest (L1) bidding Consortium ,with the Co-Insurance
percentage within the Consortium to be decided by their respective
underwriting Capacity and the written line (Percentage risk
participation chosen by the Insurer within the Consortium) in the
Annexure(F).
7.
Insurance Companies are required to give an affidavit about their
total Underwriting Capacity including their Net retention and
Capacity bought through treaty.
8.
Insurers are required to submit the certified copy of IRDA
registration Certificate as part of the tender.
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9.
The other terms and conditions to be followed by Insurers while
submitting their tender documents are as follows:
a. The break up details for deriving the net premium, in the
Common Consortium document of the bid, should be exactly as
per annexure (E). All Columns should be filled up by the bidder
lest the bid shall be liable for rejection.
b. The net premium rate shall be CALCULATED AND ARRIVED AT
BY ROUNDING-OFF OF THE DECIMALS TO 3 (THREE)DIGITS,
If the fourth digit happens to be 5 or more, the third digit may
be rounded-off to the next higher digit. The final amount of
premium, discount and Service Tax shall be rounded-off to the
nearest rupee.
c. The quotes for insurance shall be on the basis of information
furnished by KPCL in the tender document. No extraneous
information is to be considered by the Insurance Company for
quoting the premium. Conditional tenders will be rejected.
d. Bid documents shall be submitted directly by the Insurance
Company. Involvement of agents / third party shall not be
entertained. The Insurance Company shall not depute any
third party for any enquiry/follow up on the bids. The above
shall be strictly adhered to by the Insurance Company.
e. Notwithstanding anything stated above, KPCL reserves the right
to assess the Insurer’s capacity and capability to perform the
Insurance business, should the circumstances so warrant.
Such an assessment will be in the overall interest of KPCL.
f. The bidder shall indicate the acceptance of Bank Guarantee in
lieu of Cash payment till the end of the succeeding month from
the date of coverage.
g. The bidders shall ascertain the details required in advance
before offering the bid. Clarifications, if any, shall be sought
by the intending bidder in writing on or before the 28th of
February, 2015, 4.00 PM.
h. KPCL reserves the right to award and distribute the Insurance
cover to one or more Insurers depending on their Underwriting
capacity within the L1 Consortium, complying all Tender
Conditions.
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i.
The successful Insurance Company should deliver the
Insurance Policy Document in the format of the Government
Insurance Companies duly conforming to the Regulatory rules
and regulations issued from time to time, within a period of 10
days from the date of payment of the premium.
j.
The amount of premium quoted will be for the coverage of all
the perils indicated in the Tender document for the full policy
period of one year.
k. Performance of existing Insurers and going forward, of the
future Insurers will be an important factor for general
evaluation of Insurers.
l.
The final premium should be quoted in both words and figures.
Any
correction/overwriting/scoring/cancellation
shall
be
countersigned. If there is any difference between final premium
amount mentioned in words and final premium amount
mentioned in figures, then the lower of the two will be
considered. In case of illegibility, the interpretation of KPCL
shall be final.
m. The value of Sum to be Insured given are only provisional and
KPCL reserves the right to increase or decrease it depending
upon requirement during the award of Insurance Business or
subsequently. Likewise, the PML arrived at is through
inspection and analysis of the current Lead Insurer and subject
to the approval by the National Re-Insurer and may reduce or
increase, post the National Reinsurer GIC’s review .
n. KPCL takes no responsibility for delays, loss or non-receipt of
tender documents or any letters sent by post/courier either way
and also reserves the right to reject any offer in part or full
without assigning any reasons thereof.
o. KPCL shall have the liberty to accept or reject any offer or offers
or part thereof at its sole discretion. Any such action will not be
called into question and the insurer shall have no claim, in that
regard against KPCL.
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p. The policy shall be governed by the law for the time being in
force in the Republic of India.
q. Insurers are however allowed to obtain Re-insurers quote on a
facultative mode from Overseas for the Terrorism segment of the
Cover only, with a floater Loss limit of Rs 1550 crores for any
one accident and aggregate across both Raichur and Bellary
locations of KPCL ,a sum insured chosen through considered
evaluation of Assets and Gross profit exposure KPCL in both
locations.
10. Disputes, if any, shall be settled in the jurisdictional
Courts at Bangalore only.
11. The Bidder shall sign on all the pages of the tender document
for
having accepted all the terms and conditions stipulated
above. This letter shall form part and parcel of the tender
document.
12. The Mega Policy wording has to be that of Munich Re’s and that
for the Terrorism Cover through the LMA 3030 amended wordings for
the property damage portion and likewise through LMA 5039 for the
Business Interruption portion.
Sealed and Signed Common Consortium quotation by all Consortium
members, along with the Annexure documents indicated above
addressed to KPCL by the Insurance Companies, along with the IRDA
valid registration certificate has to be delivered either in person or
through courier or through registered post. Quotation received
through fax or email will not be accepted.
No query or clarification on the insurance requirement will be
entertained after the closing hours of Monday, the 28th February,
2015, 16:00 hrs. The sealed Envelope super scribed with the phrase
“Quotation for KPCL (RTPS & BTPS) Mega Risk Cover for 20152016” containing annexures ‘A’ to ‘F’ along with the IRDA certified
copy of the registration certificate and affidavit towards total
underwriting capacity, should reach the office of the Deputy General
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Manager (Finance), KPCL, Shakti Bhavan, No. 82, Race Course Road,
Bangalore – 560 001 on or before the 11th of March, 2015, latest
by 15:00 hrs. Quotation received after 15:00 hrs shall not be
entertained.
The tender will be opened in presence of available Insurers on the
same day i.e., on the 11th March, 2015 at 16:00 hrs.
Thanking you,
Yours faithfully,
For Karnataka Power Corporation Limited
S. Raghavendra
DGM (Finance)
Contact No.080 22202956
Mobile No. +91 9480630139
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Quotation for Mega Risk Cover for assets towards All Risk
including Machinery Breakdown, All Risk Business Interruptions
including Loss of profit as a result of Fire and Machinery break
down, the Add On Covers and the Terrorism Cover on Floater
basis for the Raichur Thermal Power station (RTPS), Shaktinagar,
Raichur and Bellary Thermal Power Station (BTPS), Kudithini,
Bellary.
RTPS, RAICHUR UNIT 1 TO 7- 210 MW EACH & UNIT 8 OF 250
MW.
and
BTPS, BELLARY UNIT 1 & 2 OF 500 MW EACH.
POLICY PERIOD
FROM 00.00 HRS. 21stMARCH, 2015
UPTO 20thMARCH, 2016 MIDNIGHT.
Tender Document Issued by:
KARNATAKA POWER CORPORATION LIMITED
SHAKTI BHAVAN, NO. 82,
RACE COURSE ROAD,
BANGALORE – 560 001.
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ANNEXURE - A
The Insured
Type
Location and
Description of Risk
Specification of insurance
M/s. Karnataka Power Corporation Limited,
Shakti Bhavan, No. 82, Race Course Road,
Bangalore – 560 001
Mega Risk Policy of KPCL covering
RTPS, Raichur &
BTPS, Bellary Assets against All Risk including
Machinery Breakdown and Loss of Profit as a result of
All Risk perils including Machinery Breakdown, the Add
On Covers and the Terrorism Cover on a Floater basis.
RTPS, Raichur Unit 1 TO 7 210 MW each & Unit 8 of
250 MW, in Shaktinagar, Raichur - 584 170.
and
BTPS, Bellary Unit 1 & 2 of 500 MW each, in
Kudithini, Bellary - 583152
Section-I : Part A & B :Property Damage including
Machinery Breakdown
All real and personal property other than what is
excluded under the policy belonging to the insured or
property held in trust for which he is legally responsible
comprising or consisting of Building, Plant & Machinery
and Accessories of RTPS, Raichur UNIT 1 to 7 of 210 MW
each & UNIT 8 of 250 MW and BTPS, Bellary Unit 1 & 2
of 500 MW Each.
Section-II : Business Interruption (All Risk and MLOP)
“To indemnify the insured in respect of loss of gross
INTERESTS INSURED profits, the loss actually sustained during the indemnity
period resulting from a reduction in turnover including
any increased cost of working due to an interruption of
the insured’s business following loss or damage to any
property and/or assets insured and recoverable under
this contract of insurance.
Section-III –Terrorism Cover on a Floater basis for RTPS
and BTPS for a loss limit of Rs.1550 Cr (including PD as
per LMA 3030 amended and BI as per LMA5039) for 12
months, with Locational PD and BI Sum Insured as per
the Tender document.
Policy Period
Business
From 00.00 Hrs of 21stMarch, 2015 Upto 20thMarch,
2016 Midnight
Generation and Sale of Electricity
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ANNEXURE -B
Sum Insured
Section
Sum Insured in Rs. In Crore
Section-I Part A – All Risk
RTPS, Raichur
6472.18
BTPS, Bellary
3853.77
Total
10,325.95
Section-I Part B – MB
RTPS, Raichur
6472.18
BTPS, Bellary
3853.77
Total
10,325.95
Section-II – Business Interruption for
Indemnity period 12 months
LOP RTPS, Raichur( Unit 1 to Unit 7 ,INR 97
Cr each and Unit 8 INR 306.21 Cr )
985.21
LOP BTPS, Bellary( Unit 1 = INR 373 Cr and
Unit 2 = INR 544 Cr).
917.00
Total
1902.21
Section-III –Terrorism Cover on a Floater
Basis for RTPS and BTPS for a loss limit of
Rs.1550 Cr ( including PD as per LMA3030 Property damage
amended and BI as per LMA5039) for 12 Business Interruption
months ,with Locational PD and BI Sum
Insured as indicated above.
Total
10,325.95
1902.21
12228.16
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Premium
Sl No
Sum Insured
(Rs in crore)
Particulars
1
Assets
2
Business Interruption
3
Sub-total (1+2)
12228.16
4
Terrorism Cover with
loss limit of Rs 1550
crores on a Floater
basis for both
locations
12228.16
5
Service tax @ 12.36%
6
Total Premium
(3+4+5)
Rate %
Premium
(Rs.)
10,325.95
1902.21
Deductible applicable for the coverage
Section I (A & B)
Property Damage
5% of claim amount
subject to a minimum of
Rs. 50 lakhs for each and
every loss
All Risk
14days of affected Unit
Gross profit for each and
every loss.
MLOP
21 days of affected Unit
Gross profit for each and
every loss.
Section II (Business
Interruption)
Property Damage(as per
LMA3030 amended)
Section III (Terrorism
cover)
Business Interruption
Loss (as per LMA5039)
10
Rs. 25 Lakhs
3 days
ANNEXURE- C
EXTENSIONS APPLICABLE TO SECTION : AR(All Risk)
SUB-LIMITS (In Rs.)
1
2
3
4
Property in Course of
Construction
Public Authorities
25 Cr EEL & 100 Crs policy
aggregate
10 Cr EEL and no aggregate limit
Temporary removal of Capital
Goods
Leakage, overflowing & flaring
25 Cr EEL & 50 Crs policy aggregate
10 Cr EEL
Contamination and Co-mingling 10 Cr EEL & 20 Crs policy aggregate
of stocks
Refractories & Consumables
6
Actuals
interests in storage or in
process
7
Spontaneous Combustion
Up to 25 Cr
EXTENSIONS APPLICABLE TO PART A ( SECTIONS : AR & MB)
10% of the claim amount – max of 5
8
Expediting Expenses
Cr
9
Escalation Clause
Up to 15% OF Sum Insured.
10
Interim Payment Clause
Agreed
5
11
Inadvertent omission
20 Cr EEL & 80 Cr policy aggregate
12
Agreed Bank Clause
To be incorporated as per Insured
request.
13
Architects` surveyors &
consulting engineers` fees
5% of claim amount and max of 5
Cr aggregate
14
Capital additions
15
Reinstatement of sum insured
following a loss
10% of the Sum Insured location
wise No premium to be charged upto
25 Crs
16
Waiver Of Subrogation
Agreed
17
Rs. 5 Cr
18
Loss minimizing expenses/ Loss
prevention
Shut down/ Startup costs
19
Removal of debris
10% of claim amount; 10 Cr eel and
policy aggregate of 20 Cr
5 Cr EEL
20
Obsolete Parts
Rs 5 Crs. EEL
11
Agreed
21
EXTENSIONS APPLICABLE TO PART B ( Business Interruption)
Alternate basis clause
Agreed
22
72 Hour Clause
Agreed
23
Auditors Fees/Professional Clause
Actuals
24
Customers and Utilities Extension
Damages as per Flexa Perils only. 3
months I.P./ Rs 25 Crs. OR 17% of BI,
whichever is higher.
25
Denial of Access
Prevention of access with maximum
limit of 4 weeks (over & above the policy
time excess) and with maximum radius
of 5 meters from insured premises &
only inland.
26
Department Clause
Agreed
27
Public Utility Extension
2 months of BI Cover
BASIS OF VALUATION: RE-INSTATEMENT VALUE.
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ANNEXURE -D
Sum Insured (SI) details of RTPS and BTPS Unit wise for Property Damage:
Station
Raichur Thermal Power Station
Bellary Thermal Power Station
Unit No
S.I. Material Damage
(Rs. In Crore)
Unit I
755.82
Unit II
755.82
Unit III
755.82
Unit IV
755.82
Unit V
755.82
Unit VI
755.82
Unit VII
755.82
Unit VIII
899.79
Ware house Stock & Fuel
281.65
Total
6472.18
Unit I
2001.35
Unit II
1737.21
Ware house Stock & Fuel
Total
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115,21
3853.77
Annexure-E
The Deputy General Manager (Finance),
M/s KPCL, ShaktiBhavan,
82 Race Course Road,
Bangalore-56001.
Dated:
Dear Sir,
Re: Common Financial Bid of the Consortium Insurance Companies
bidding for the Mega Risk Cover of KPCL’s Thermal Power plants at
Raichur( RTPS ) and Bellary( BTPS) as per the tender document
along with the signature/seal of the authorised signatories of
Member Insurance Companies of the Consortium.
We refer to the aforestated and are happy to inform that we have formed
a consortium of_________Nos of Companies to bid for the tender for the
Mega risk Policy based on our Individual Underwriting Capacities
(without any facultative arrangement), that is the summation of our own
underwriting capacity through Net Retention and Underwriting capacity
through Treaty arrangement, without including the Inter Group capacity
as we are aware that all Insurers of the Consortium are bidding jointly
on price but independently on underwriting capacity.
Financial Bid of the Consortium:
Sl No
Particulars
Sum Insured
(Rs in crore)
1
Assets
2
3
Business Interruption
Sub-total (1+2)
Terrorism Cover
i. Property damage Rs 10,325.95
Crores (as per LMA3030
amended)
ii. Business Interruption Rs 1902.21
crores (as per LMA 5039)
iii.
With loss Limit of Rs 1550
crores on a Floater Basis for both
RTPS/BTPS locations
Sub-total (of 4)
Service Tax @ 12.36%
Total Premium (3+5+6)
4
5
6
7
10,325.95
14
1902.21
12228.16
12228.16
12228.16
Rate %
Premium
(Rs.)
Consortium Members along with their details:
Sl Insurance Company
No
1
Signatory’s
name
signature
2
3
4
5
6
7
8
9
15
Mobile
No.
Company
Seal
Annexure-F
To be given by All Insurers of the Consortium separately.
The Deputy General Manager (Finance),
M/s KPCL, ShaktiBhavan,
Dated:
82 Race Course Road,
Bangalore-56001.
Dear Sir,
Re: Details of our Company’s Underwriting capacity for the purpose
of bidding for the Mega Risk Cover of KPCL’s Thermal Power plants
at Raichur ( RTPS ) and Bellary ( BTPS) and the Terrorism Floater
Cover as detailed in the tender and the line we can write.
With reference to the above, we indicate below our Companies
Underwriting Capacity without including the Inter Group Capacity ,as
we are aware that all Insurers are bidding independently, as follows:
Under writing Capacity
Rs in Crore
a) Underwriting Capacity through Net
Retention
b) Underwriting Capacity through Treaty
arrangement( with all options relating to
various slabs of Coinsurance)
c)Obligatory Cession
Total
Underwriting
Company
Capacity
of
the
Based on entirely our own Underwriting Capacity, we would be able
and keen to pickup ______% of the Mega Policy of M/s KPCL’s assets at
RTPS and BTPS as part of the consortium, towards Property damage,
their Business Interruption, Add on Covers and the Terrorism Floater
Cover, as per the tender.
Thanking you,
Yours Sincerely,
Name, Signature,
Contact Coordinates.
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