CAR Policy "Merloni"

Technological Risks
Other Property Damage Products

CAR Policy "Merloni"
The single CAR policy issued in accordance with Law 109/1994 (Ministerial Scheme 2.3) covers material and direct damage to insured items located on the construction site for the execution of works, caused by any reason, except for the limitations indicated in the policy itself. However, damages resulting from design errors, actions by third parties, or force majeure are excluded. The policy must also provide liability coverage for damages to third parties during the execution of the work.

For the construction of public works, the law outlines a typical procedural pathway for identifying the contractor who will subsequently enter into the contract. The CAR policy covering the execution of such works must indemnify the contracting administration against all risks arising from the execution of the work that are not related to the contractual sphere (it must also include liability coverage for damages suffered by third parties during execution). In essence, the insurance must cover damages caused by the contractor both to the administration and to third parties while fully and correctly fulfilling their contractual obligations; therefore, the contractor is not liable in cases where damages are caused by reasons not attributable to them, such as design defects, force majeure, or actions by third parties.

However, requests for extensions by contracting authorities to cover design defects, force majeure, or actions by third parties are not excluded. Other extensions of coverage may also be requested, such as: damages caused by vessels or aircraft, damages to property due to vibrations, removal, landslides, or subsidence of the ground, bases, or supports in general, as well as damages to underground cables and pipes.

Type:
Contract guarantees.

Group:
Direct material damages, Civil liability damages.

Legal References:
D.M. 123 of March 12, 2004.
Legislative Decree 12.4.2006 No. 163 “Public Contracts Code,” Art. 75.
D.P.R. 554 of December 21, 1999 (Implementing Regulation)
Type policy scheme 2.3.
Art. 129, paragraph 1 of Legislative Decree 12 April 2006, No. 163 (Public Contracts Code for works, services, and supplies implementing directives 2004/17/EC and 2004/18/EC).
Art. 125 of D.P.R. October 5, 2010, No. 207 (Implementation and execution regulation).

Usual Policyholder:
Contractor.

Usual Beneficiary:
Client, Contractor, Subcontractors.

Duration:
From the start of work to the handover of the site.

Extensions:
Yes, if the work extends beyond the initially scheduled period.

Special Clauses:
Multiple. Currently provided under agency autonomy.

Specific Documentation to Acquire:
Extract of the Tender Specifications containing a description, amount, duration of the work, and insurance obligations.
Award letter.