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Contractors' All Risks (CAR) insurance is an all inclusive insurance cover used in construction contracts. This research evaluated the efficiency of use of this insurance policy for civil engineering projects in Sri Lanka. It identified in addition, the factors affecting the efficiency of use of CAR policy. Data collected through a survey was used to identify the above factors and appraise the level of efficiency. Using secondary data, it was found that, Third Party damages were high as 85%,doi:10.4038/besl.v8i2.1909 fatcat:7qgly2flbvcm3obobbjzuktdqa