ABSTRACT
India has experienced a huge influx of infrastructure projects in order to bring economic and social development. In the present scenario, where constructing infrastructure projects for commercial establishments is demand of the time, insurance has been aiding traditionally in the infrastructure business by combining risk. Project contracts have become complex and there is now a need for coverage plan from revenue loss to launch slowdowns.
Risk management or allocation in infrastructure building projects is recognised as a vital management procedure for achieving project objectives in terms of effort, money, reliability, and scope. All through the project’s life cycle, large infrastructure projects suffer from severe risk undermanagement at practically each step of value chain. Moreover, there are natural calamities other than man made casualties which contributes to risk of the destruction of the infrastructure. Hence, it can be said that these projects need specialised insurance coverage as, the provision of several insurance options may contribute to project developers and investors satisfaction.
A heated debate persists amidst the engineers and contractors regarding the liability after disaster happens, as most of the times engineers are prosecuted or questioned in such situations. There is a need to establish a legal relationship in order to make a person liable or make some group of people jointly and severally liable.
Moreover, while allocating risks for the large infrastructure, it is to ponder upon, whose liability would it be if some disaster (natural/man made) takes place or how one can incur the loss from the destruction of the large infrastructure project, would the companies or government be a party to get such insurance amount or there would be some categorization laid down by the insurer.
This research paper is written with a legal perspective by highlighting the importance of risk allocation in order to take insurance and how one can get benefits by insuring the infrastructure in order to incur the loss after the disaster. This paper would also draw lines between risk allocation decide liability by applying legal jurisprudence. This research work is presented in form of chapters which includes discussions and methods followed by conclusion for a better understanding for the readers.
