Institute Clauses for Builders Risks 01.06.1986 : Subject Matter of Insurance: The section has two sections (I) Section I-(i) Hull and Machinery etc under construction at the yard or other premises of the builders. (ii) Machinery etc while under construction by the sub-contractors. Section II-Machinery etc the insurance on which attaches from the time of delivery to builders. The subject matter is covered whilst at builders or sub-contractors yards within the port or place of construction and whilst in transit between such locations. Other transits are held covered at additional premium. Commencement of Insurance: A provisional period is stated under each section commencing from a particular date, but the insurance is terminated upon delivery of the vessel to the owners if prior to expiry of the provisional period. Delayed Delivery: Held covered for not more than 30 days from the completion of builders trials. Perils: All Risks of loss or damage. Insured Value: Provisional. Insurance to be based on the final contract price or total building cost plus an agreed percentage whichever is higher, subject further it should not be more than 125% of the provisional value.