VINCI - 2005 annual report

3.2 DAMAGE INSURANCE
Offi ce buildings and fi xed production facilities are covered for a contractual
rebuilding value, either value as new or an estimate of the maximum
insurable loss. Site equipment is covered on a case-by-case basis if fi nancially
worthwhile, depending on value, type and age. Road vehicles, which
are mostly pooled within fl eets by country, are only exceptionally covered
on a comprehensive basis.
4. INSURANCE IN CONCESSIONS AND SERVICES
4.1 DAMAGE INSURANCE
Concession operation involves a potential exposure of the Group to damage
to assets under concession, whether accidental or not, that could result in
an obligation to rebuild (bearing the related costs), in fi nancial consequences
due to the interruption of operations, and in obligations to
providers of fi nance relating to debt servicing.
4.2 CIVIL LIABILITY
Assets made available to VINCI subsidiaries in France and other countries
under concessions are also covered by specifi c civil liability insurance
arrangements, which are co-ordinated with complementary cover at
Group level. As in the Construction, Roads and Energy business lines, no
claim has been settled to date under these complementary lines. These
arrangements are specifi cally designed to meet local legal requirements
and those laid down in concession agreements. Concession operations in
4.3 BUSINESS INTERRUPTION INSURANCE
Business interruption insurance is intended to allow concession operators
to restore an income stream interrupted by an accidental event affecting
the normal operation of an asset, thus enabling the operator to meet any
fi nancial commitments towards lenders and cover ordinary operating
overheads during the reconstruction period.
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VINCI 2005 ANNUAL REPORT
All risks insurance is, as a general rule, 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 general rule, constructions presenting a concentration of risk, such
as bridges, tunnels and car parks, are insured from their entry into service
for their cost of reconstruction in the event of accidental destruction. This
is not, however, the case for constructions of a “linear” nature, such as
motorways, where complete destruction is not envisaged.
which VINCI is a minority shareholder do not automatically benefi t from
the Group’s complementary civil liability cover taken out on behalf of all
entities.
Airport activities are covered by a separate “aviation civil liability” policy,
applicable to all relevant operations (assistance services and airport
management).
Such operating losses are covered subject to various levels of uninsured
loss. These may be expressed as an amount or as a number of days of
interruption. Operations that have a low exposure to this risk, in particular
motorways, are not insured against such losses, as an extended or
complete halting of 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 of
traffi c. To date, no claims have been made under such policies.