2013-vinci-annual-report

5.2 Loss prevention and claims record
Loss prevention arrangements are systematically adopted on construction sites and operating sites. This policy, which gives a major role to
training, forms part of VINCI companies’ approach in the areas of quality assurance and prevention of workplace accidents.
The Group’s claims record in the area of civil liability is characterised, on the basis of available statistics and data and without prejudging any
actual responsibility, by a low number of incidents involving more than €1 million, by a few medium-sized incidents, ranging from €100,000
to €1 million, and by a high number of small incidents (some several thousand) of less than €100,000 each, which, to a great extent, are borne
directly by subsidiaries as uninsured losses or under self-insurance cover.
REPORT OF THE BOARD OF DIRECTORS 131
5.3 Insurance in the Construction, Roads and Energy business lines
Civil liability
Subsidiaries are exposed to their responsibility for bodily, physical or consequential damage caused to third parties, including Clients or
Employers.
The civil liability cover taken out by the Group comprises a first line that combines the cover in place at subsidiary level, intended to cover
current claims levels, and a set of complementary lines taken out for the common benefit by VINCI.
In addition to this basic cover, specific insurance is taken out as a result of legal or contractual requirements or management decisions,
particularly in areas such as:
ˇˇ10-year liability in France;
ˇˇmotor insurance.
Property insurance
Contractor’s All Risks (CAR) insurance is generally taken out in respect of major construction sites. In particular, this covers physical damage
arising from accidents or natural events up to the value of the project as a maximum.
Office buildings and fixed production facilities are covered for a contractual rebuilding value, either value as new or an estimate of the
maximum insurable loss. Site plant and equipment is covered on a case-by-case basis and, if financially worthwhile, depending on value,
type and age.
Road vehicles, which are mostly pooled within fleets by subsidiary, are not generally covered on a comprehensive basis.
5.4 Insurance in concessions and services business lines
Property and business interruption insurance
Concession operation involves potential Group damage exposure to assets under its responsibility, whether accidental or not, that could
result in an obligation to rebuild (bearing the related costs), and to financial consequences resulting from the interruption of operations and
debt service requirements to financing providers. Business interruption insurance is intended to allow concession operators to restore an
income stream interrupted or reduced by an accidental event affecting the normal operation of an asset, thus enabling the operator to meet
any financial commitments towards lenders and cover ordinary operating overheads during the reconstruction period.
As a general rule, bridges, tunnels and car parks are insured in the event of accidental destruction. Resulting losses may be expressed as an
amount or as a number of days of interruption. Motorways and rail lines, the complete destruction of which is deemed highly unlikely given
their length, are not systematically covered for losses from interruption to business, since the total and prolonged shutdown of their operations
is not taken into consideration. Uninsured amounts are determined on a case-by-case basis to ensure that the concession’s earnings
are not materially affected by an accidental interruption in traffic.
Civil liability
Assets operated under concession contracts by VINCI subsidiaries in France or abroad are also covered by specific civil liability insurance
arrangements, which are coordinated with the complementary cover at Group level. These arrangements are specifically designed to meet
local legal requirements and those laid down in concession agreements. Concession operations in which VINCI is a minority shareholder do
not generally benefit from the Group’s complementary civil liability cover taken out on behalf of all entities.
Specific insurance for airport activities
Following the acquisition of ANA, VINCI Airports created at 1 December 2013 its own insurance programme to cover (i) all 23 airports under
concession against property and business interruption losses and (ii) the Portuguese and Cambodian airports against the risks of civil liability.
French airports have civil liability protection from the civil liability insurance policy of the Union des Aéroports Français (UAF), of which VINCI
Airports is a member.