Comprehensive project (CP) insurance
Policy No.
This policy of insurance is made
between
1. the insuring party
and
2. the insurer
The insuring party has submitted
to
the insurer a proposal requesting insurance cover to be provided
under one or more sections of this policy of
insurance and the proposal
has been
accepted by the insurer. The insurance cover provided by this policy of insurance
is only
in respect of and subject to the wording of those sections to which the schedule
has been completed and which
have been signed and dated by the insurer.
Subject to the insuring party having paid the agreed premium to the insurer
and subject to the terms, provisions, conditions, warranties and exclusions contained herein or endorsed hereon the insurer shall indemnify the insured in the manner and to the extent
stated in the following section(s) forming part
of this policy of insurance:
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Section 1a –
Project works (compulsory)
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� yes
|
|
|
Section 1b –
Plant, machinery and equipment
|
D yes
|
D no
|
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Section 2 –
Third party liability
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D yes
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D no
|
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Section 3 –
Delay in start-up
|
D yes
|
D no
|
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Section 4 –
Marine cargo
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D yes
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D no
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The insuring party acknowledges that it
has ensured and shall continue to ensure that all
parties named as insured in any section of this policy of
insurance disclose to it all
information required to be provided to the insurer and shall
at
all times comply with any obligations which are
placed upon the insured by any provision of this policy of insurance.
The due
observance and fulfilment of the
terms of this policy
of insurance insofar as they relate to anything to be done or complied
with by the insuring party and the insured and the truth of the
statements and answers given
by or on behalf of the insured in the proposal as well as any statements in the schedules to
any section of this policy of
insurance shall be a
condition precedent to any liability on the part of the insurer.
No alteration of the terms of
this policy of insurance which may
be agreed as between the insuring party
and the insurer shall
require the agreement or consent of any other party
constituting the insured under any section.
This policy of insurance shall
be construed in accordance with the laws of .
The language of communication under
this policy of insurance
shall be .
In witness whereof, the duly
authorized agent of the insurer signs this agreement
on its behalf.
Date Insurer
This policy of insurance shall not be effective unless signed above and dated by the insurer. No section
of this policy of insurance
shall be effective
unless the schedule is both signed and dated by the insurer.
Definitions applicable to all sections
The terms – written in italics – used in
this policy of insurance shall
have the following meanings unless they
are defined differently in any section hereof or
the context so requires.
Act of default means
a deliberate act regardless of whether the
actual consequences of such an act were anticipated or not or a
reckless failure to take the
reasonably necessary precautions which a prudent insured would take to prevent loss of or damage to the property insured or any deliberate act of material non-disclosure or breach of any
warranty or condition of this policy of
insurance.
Actual value means
the cost which in the event of loss of or damage
to any item or part of the property insured would be necessary
to replace it with one of
the same age and
capacity and similar
make and quality, inclusive of all materials,
wages, freight, customs, duties and dues.
Additional insurance cover
means any additional insurance
cover the insured may decide to take out in any
section of this policy of insurance.
Consequential loss means any
financial loss of any kind or
description whatsoever, including loss
of profit, loss of opportunity, losses due to delay,
lack of performance, loss of contract or penalties.
Deductible means the
amount to be deducted from any payment otherwise
to be made by the
insurer to the insured.
Insured means
all the parties named as the insured in a section of this policy
of insurance
and if the context so requires any one of them.
Insured contract(s) means the contract(s)
specified as such in the
schedule. Insurer means the party
named as such in this policy
of insurance.
Insurer’s agent means an individual, firm or company appointed by the insurer to act on its
behalf.
Insured party(ies) means an individual, firm,
company, corporation or joint venture specified as an
insured in this policy of insurance.
Insuring party means the individual, firm, company,
corporation, joint venture or
combination of the above named as such in this policy of insurance that has
entered into this policy of insurance
on behalf of itself
and any other party named as an insured
in any section of this policy of
insurance.
Language of communication
means the language in which communication
between the insured and
the insurer
under this policy of
insurance shall take place.
Material change in risk means any change in the nature,
exposure, location, execution and
maintenance of the insured contract(s)
that a reasonably prudent insurer
would consider material to the acceptance of the risk under the terms and conditions
of this policy of insurance.
New reinstatement value
means
the cost which in the
event of the total loss or destruction of the property insured would
be incurred to replace
it with new property of the
same capacity and quality or to re-construct, re-erect and
re-test the property
insured, including all materials,
freight, customs, duties and dues.
Period of insurance means the period during which cover is
provided by this policy
of insurance as specified in the schedules.
Policy of insurance means the proposal, the definitions, the conditions, the
exclusions, the schedules
and the section(s) of this policy of insurance.
Premium means the premium payable under this policy of insurance calculated in accordance with
its terms.
Premium rate means the rate referred to as such in
the schedules agreed between the insuring party
and the insurer.
Property insured means the property insured as specified in the schedules
of this policy
of insurance.
Proposal means the written information
submitted to the insurer by
the insuring party seeking insurance cover
under this policy of
insurance.
Representatives means the
directors, officers or any other individuals that have the authority to
exercise administrative or executive control over the execution of a contract or over an operation or business.
Schedule means the schedule to the section(s) of this policy of insurance in which reference is made to it.
Section means any section of
this policy of insurance including
the schedule thereto.
Site means the
places where the works are
to be executed and any other places that
may be specified in the insured contract(s) as forming part
of the site.
Sum(s)
insured means the amount of insurance cover specified
in the schedule(s) in
respect of any particular item of property insured or
interest insured or the total amount of insurance cover
specified
in a schedule as
the context may require.
Territorial limits Terrorism
means
the geographical area in respect
of which cover will be provided by this
policy of insurance as specified in any schedule.
means
an act, including but not limited to the use of force or
violence and/or the threat thereof,
of any person or group(s) of persons, whether acting alone or on behalf of or in connection with any organization(s) or
government(s), committed for political, religious, ideological,
or
ethnic purposes or reasons including the intention
to influence any government and/or to put the public, or
any section of the public, in fear.
Exclusions applicable to all sections
1.
Unless otherwise stated in any section of this
policy
of insurance, the insurer shall
not indemnify
the insured in respect
of any loss, damage
or liability resulting from or aggravated
by
1.1. war, invasion, act of foreign enemy, hostilities
(whether war be declared or
not), civil war, rebellion, revolution, insurrection, mutiny, conspiracy, strike, lock- out, riot,
civil commotion, military or usurped power, confiscation, nationalization, commandeering,
requisition or destruction or
damage by or under the order of any
government de jure or de facto or by
any public or local authority;
1.2. the acts of any
person or persons acting on behalf of
or in connection with any
organization with
activities directed towards
the overthrowing or influencing of any government de jure or de facto by force
or violence;
1.3. any act
of terrorism;
1.4. ionizing radiation or radioactive
contamination from any nuclear fuel or nuclear
waste or from the
combustion of nuclear fuel;
1.5. the radioactive, toxic, explosive or otherwise
hazardous or contaminating properties of any nuclear installation, reactor
or other nuclear assembly or nuclear
component thereof;
1.6. any weapon of war employing atomic or
nuclear fission and/or fusion or any other
similar reaction or
radioactive force or matter;
1.7. an act of default committed by the insured or its representatives;
1.8. any partial or total unscheduled cessation of work exceeding four
weeks of which the
insurer has not been notified.
2.
In any
action, suit or other
proceeding in which
the insurer alleges that
by reason of the provisions of exclusions 1.1, 1.2
and 1.3 above any loss, damage
or liability
is not covered
by this policy of insurance,
the burden of proving that such loss,
damage or liability is covered shall be upon the insured.
Conditions applicable to all sections
1.
Payment of premium
1.1. Notwithstanding the provisions of clause 3 the
payment of the premium by
the insuring
party is a condition precedent to the insurer’s
liability towards any insured party under any section
of this policy of insurance.
1.2. The insurer shall
not be liable to indemnify the
insured or any insured party in respect of any occurrence happening
prior to the receipt of the premium.
2.
Reasonable precautions
2.1. The insured shall take at its own expense all reasonable precautions and comply with
all reasonable recommendations
made by the insurer, to prevent
loss of or damage to the property insured or any
liability arising under this policy of insurance and comply with all
relevant statutory requirements and manufacturers’ recommendations.
3.
Multiple
insured clause
3.1.
If in any section the insured comprises more than one
party each operating as a separate
and distinct entity,
this policy of insurance shall, unless otherwise provided for in this policy of insurance, apply as
if a separate policy had been issued to each of these
parties provided always that the insurer’s overall liability towards the parties that constitute the insured in any section shall not exceed the sum insured and any limits
of indemnity specified in the schedule
to that section.
3.2.
Any payment made by the insurer to any insured
party as a
result of an occurrence of loss
or damage shall reduce, by the amount
of that payment, the insurer’s liability towards all the insured parties that constitute the insured arising from that occurrence under this policy of insurance.
4. Act of default 4.1. In the event of an act of
default being committed by an insured party or its representatives
the insurer shall
not be liable to pay any amount to the insured party under this policy of insurance.
4.2. An act of default committed by one insured party or its
representatives shall not prejudice the
entitlement to
indemnity of any other insured party that has
not itself (and whose
representatives
have not) committed an act of default.
4.3.
In the event
of the insurer refusing to indemnify
an insured party as a
result of any act of default no other insured party shall
be entitled to indemnity in respect of the same
loss or damage by
assuming the rights or obligations of the insured party whose claim for indemnity the insurer has
refused or is entitled to refuse.
4.4.
In the event
of an act of default the insurer shall be entitled to claim from the insured
party any
loss or damage it may have suffered including, without limitation, any sums it may have
paid to any other
insured
party as a
result of any loss or damage caused or contributed to by the insured party or its representatives
committing an act of default.
5. Subrogation 5.1. The insurer shall waive its rights of subrogation against all insured parties provided no act
of default committed by any insured party or its representatives has caused any loss or
damage to any other insured party.
5.2. The insured shall at the insurer’s expense do and concur in doing and permit to be done all action
that may be necessary or required by the
insurer in the interest of
any rights or remedies or for
the purpose of obtaining relief or indemnity to which the insurer is or would
become entitled or which is or would be subrogated to him upon indemnification or rectification of any loss or damage under this policy of insurance,
regardless of whether such
action is or becomes necessary or required before or after the insured’s indemnification by the insurer.
6. Risk inspections 6.1. The insurer or the
insurer’s agent shall have the right to inspect and
examine the property insured at
any reasonable time and the insured shall provide the insurer or the insurer’s
agent with all relevant details and information.
7.
Material
change in risk
7.1.
As soon as is reasonably possible, any
party named as the insured in any section
of this
policy
of insurance shall notify the insuring
party of any material change in risk of which
it is aware or ought reasonably to be aware and
shall take or cause to be taken at its own
expense any additional precautions that may be necessary to prevent loss or
damage occurring to the property
insured as a result of such material
change in risk.
7.2.
The insuring
party shall
immediately notify the insurer in writing upon receipt of any notice from the insured.
7.3.
The insurer shall
not be liable for any loss of or
damage to property insured which would not have resulted had there not
been a material change in
risk unless the insurer has agreed to the material change in
risk in which case the scope of cover and premium shall, if necessary,
be adjusted by the insurer to reflect the material change in
risk.
8.
Claims
notification and the insured’s obligations following an occurrence of
loss or damage
8.1. In the event of
any occurrence which might give rise
to a claim under this
policy of insurance, the insured shall
8.1.1. notify the insurer in writing
as soon as reasonably possible, indicating the nature and
extent of the loss or damage;
8.1.2. take all such measures
as may be reasonable
for the purpose of minimizing loss or damage;
8.1.3. ensure that all rights against carriers, bailees or other third parties are
properly preserved and exercised;
8.1.4. do and concur in
doing and permit to be
done all such things as may be practicable to establish the cause
and extent of the loss or
damage;
8.1.5.
preserve all
parts affected and make them
available for inspection by the
insurer’s agent as long as the insurer may require;
8.1.6. inform the police authorities of
loss or damage due to fire, theft or
burglary or actions by
any malicious person and render
all reasonable assistance to the police authorities;
8.1.7. furnish any
information and documentary evidence that the insurer may
require together with, if required, a statutory declaration of the
truth of the claim.
8.2. If the insured
or anyone acting on its behalf hinders or obstructs the insurer in any way or does not comply with any
reasonable recommendations the insurer may make following the notification of any loss or damage, all benefits claimed
under any section of
this policy of insurance shall be forfeited.
8.3. The insurer shall
reimburse the insured for any charges
properly and reasonably incurred in pursuance of its duties in relation to clauses 8.1.2 and
8.1.3 above in addition to any loss recoverable
under any section of this
policy of insurance.
8.4. Upon notifying the insurer, the insured may repair any minor damage or replace any
parts of the property insured that have sustained minor damage; in all other cases the insurer’s agent shall be given the
opportunity to inspect the loss or damage before any repairs are effected and if
the insurer’s agent does not carry out the
inspection within a period of time which could be considered reasonable under the circumstances, the insured shall be entitled to proceed with the
repair or replacement.
8.5. The liability of the insurer under this policy of
insurance in respect of any lost
or damaged part or parts of
the property insured shall
cease if such part or parts
are not repaired or replaced in accordance with
the relevant technical
standards.
9. Fraudulent claims 9.1. If an insured party makes any claim that is fraudulent or any false declaration or statement in support thereof, this policy of
insurance between the insurer and the insured
party making such a
claim shall become
void and the insurer
shall not be liable to make any payment hereunder
to that party.
9.2. For the avoidance of doubt,
the insuring party shall not
be entitled to any return of premium in the
event that the policy
of insurance is
treated as void.
10.
Disclaimer
of liability
10.1. If the insurer disclaims liability in respect of any claim
and if conciliation is
not commenced within three months of such a disclaimer,
all benefits under this policy
of insurance in respect of that
claim shall be forfeited.
11. Other
insurances 11.1. If at the time any
claim is made under this policy of
insurance there is any
other insurance covering the same loss,
damage or liability, the insurer shall
not be liable to pay more than the rateable proportion of any claim for
such loss, damage or liability.
12. Entire agreement 12.1. This policy of insurance shall form the entire agreement
between the insurer and the insuring party and any party claiming as an insured and supersedes and replaces all prior communications, representations, undertakings and agreements between the parties
whether oral or written.
13. Dispute
resolution
13.1. If any dispute arises as to the insurer’s liability
under this policy of insurance, either the insured or the insurer may give notice
to the other that it wishes the dispute to be referred to conciliation in accordance with and subject to the International
Chamber of Commerce (I.C.C.) Rules
of Conciliation or any modification thereof that
is in force at that time.
13.2. If the matter
cannot be resolved by conciliation, either the insured or the
insurer
may, within 28 days of
either party deciding that the conciliation has failed, require that the matter finally be settled under the I.C.C.
Rules of Arbitration by a panel of 3 (three) arbitrators in
accordance with these rules.
13.3. Dispute resolution shall be conducted in the language of communication.
Section 1a – Project works
1. Indemnification 1.1. The insurer shall indemnify the insured for
any sudden physical loss of or damage to the property insured which the insured could not reasonably have foreseen and which
occurs within the territorial limits at any time during
the period of
insurance due to any cause not specifically
excluded and which results in property insured needing to be repaired or replaced.
1.2. The indemnity
for each item entered in the schedule shall not exceed the
specified sum insured
or limit of indemnity that may be applicable.
2.
Property insured 2.1. The property insured under this section is the permanent
and temporary works and any part thereof constructed, erected or tested in the performance of the insured contract(s) specified in the
schedule
including any free
issue material which is to be
incorporated therein.
3.
Additional insurance cover
If
specified in the schedule, the following additional insurance cover shall be provided subject to the terms contained herein:
3.1. Property
belonging to
or held in the care, custody or
control of the insured
3.1.1.
The insurer
shall indemnify the insured up
to the sum insured specified in the schedule
in respect of
physical loss of or damage to property other than the property insured belonging
to or held
in the care, custody or control of the insured which the insured could
not reasonably have
foreseen and which is caused by or arises
out of
the
execution of the insured contract(s).
3.2. Professional fees
3.2.1. The insurer
shall indemnify the insured in
respect of professional fees and related costs necessarily
incurred to rectify loss of or damage
to property
insured but not for
preparing claims.
3.2.2. The amount payable for such fees shall not exceed that authorized under the
scales of the respective institutions
or
bodies regulating such charges or the sum
insured specified in the schedule, whichever is the lower.
3.3. Plans, documents and data
3.3.1. The insurer
shall indemnify the insured up
to the sum insured specified in the schedule
in respect of the costs
and expenses necessarily incurred
to re-produce plans,
drawings, contract and account
documents and data lost or
damaged but not in respect of the value of the information contained therein.
3.4. Removal of debris
3.4.1. The insurer
shall indemnify the insured up
to the sum insured specified in the schedule
in respect of the costs
and expenses necessarily incurred
to remove and dispose of debris, to dismantle, demolish, shore or prop up property insured in any circumstances giving rise to
indemnifiable loss or damage under
this section.
3.5. Expediting expenses
3.5.1. The insurer
shall indemnify the insured up
to the limit of indemnity specified in
the schedule in
respect of reasonable extra costs
for overtime, night-work, work on public holidays, express freight (except airfreight) incurred to rectify
loss of or damage to
property insured.
3.6. Off-site storage
3.6.1.
The insurer shall
indemnify the
insured
up to the limit of indemnity specified in the schedule for loss
of or damage to property
insured whilst in off-site storage within the territorial
limits.
3.7. Inland transit
3.7.1.
The insurer shall
indemnify the
insured
up to the limit of indemnity specified in the schedule in
respect of loss of or damage to property insured whilst in transit within the territorial limits including
unloading at the site.
3.7.2. This cover
shall not extend to loss of or
damage to property insured whilst in
transit by sea
or by air.
4. Sum insured 4.1. It is a requirement of this policy of insurance that at the
inception date of this section
the sum insured
specified in the schedule in respect
of the property insured shall
not be
less than the new reinstatement value at the completion date of the insured contract(s), but excluding professional fees
and costs incurred for the reproduction of plans and documents, removal of debris and
expediting expenses.
4.2.
If during the period of insurance the sum insured
specified in the schedule in respect of property insured is exceeded by the new
reinstatement value, it shall be deemed to be increased by the amount
in excess but by not more
than the percentage for escalation specified in the schedule.
4.3.
If additional
insurance cover is agreed upon in the schedule, the sum(s)
insured
shall be increased
by the respective amount whenever applicable.
4.4. In the event of any indemnification
under this section the sum insured of the
property
insured shall automatically be reinstated.
5. Premium 5.1. A deposit premium
shall be paid at the inception of this section
and shall be calculated by multiplying
the total
sum insured by the premium rate.
5.2.
If during the period of insurance the sum insured is increased, reinstated or decreased, the premium shall be adjusted accordingly.
5.3. A final adjustment of the premium shall
be made at the completion of the
insured contract(s).
6.
Period of insurance 6.1. The period of insurance
of this section shall include
6.1.1. the construction and
erection period including
the testing period
6.1.2. the defects liability period
as specified in the schedule.
6.2. The insurance cover under this section shall begin upon commencement of physical work or storage on the site or the inception date of this section specified in the schedule, whichever is the later.
6.3. The testing
period shall commence for each item of property insured with
the application of the first test-load or the first introduction of fuel, feedstock
or process
materials and shall last
for the duration specified in the schedule or until the item has passed its tests, whichever is the earlier.
6.4.
The defects
liability period shall commence for each
item of property insured on the date it has
been taken into use or into occupation or on
the date a taking-over certificate has been issued or is deemed to
have been issued, whichever is the earlier.
6.5.
All insurance cover under this section shall
cease upon expiry of any defects liability
period or on the expiry date specified
in the schedule, whichever is
the earlier.
6.6.
Any extensions of the periods of insurance shall be
subject to the prior written consent of the insurer.
7. Territorial limits 7.1. The territorial limits of
this section shall include the
site and any
additional locations specified in the
schedule
for inland transit and off-site storage.
8. Deductibles 8.1. In respect of each and every occurrence of loss or damage
to items of property insurered the insurer shall
not be liable for the amount of the respective deductibles specified in the schedule,
provided that if more
than one item is lost or
damaged as a result of any one occurrence,
the insured shall
not be called upon to bear more than the highest
single deductible applicable to any lost or damaged item.
8.2. Any loss
of or damage to the property
insured under this section arising during any one period of 72 consecutive hours caused
by
acts
of God of the same
type
covered by this section shall
be deemed to have been caused by a single occurrence and shall therefore be subject to one deductible.
8.3. For the
purposes of the foregoing the commencement of any
such 72-hour period shall
be decided upon by
and at the discretion of the insured, it
being understood and agreed that there shall be no overlapping of any two or more such 72-hour periods in the
event of damage occurring
over a more extended period
of time.
9.
Exclusions The following shall be excluded from the cover provided by this section:
9.1. any costs rendered necessary to replace, repair
or rectify property
insured which is defective as a result of any fault, defect, error or omission in design, plan,
specification, material or workmanship,
but should any part of
the property insured containing any such defect become
lost
or damaged, the costs excluded are those which the insured would have
incurred to replace, repair or rectify the original defect if such defect had been discovered before the occurrence of loss or damage;
9.2. loss or damage resulting from wear and tear,
corrosion, oxidation or
deterioration of property insured,
but this exclusion shall be limited to the parts immediately
affected and shall not
extend to liability for loss of or
damage to parts of the property
insured lost or damaged as a consequence thereof;
9.3. loss of or damage to bills, currency, stamps, deeds, evidences
of debt, notes, securities or cheques;
9.4. loss or disappearance which is discovered only at the time of
taking an inventory or which is not traceable
to a specific occurrence of loss or
damage
otherwise indemnifiable under this
section;
9.5. loss or
damage resulting from the
use or operation of property insured
occurring after the expiry of its testing period,
but this exclusion shall be limited to the parts in operation
or use and shall not extend to
liability for loss of or damage to other parts of the property insured as a
consequence thereof;
9.6. loss of
or damage to property insured or any
part thereof
9.6.1. which has been taken into use or operation, or
9.6.2.
for which a taking-over certificate has
been issued or is deemed to
have been issued,
unless such
loss or damage occurred
during the defects liability period specified
in the schedule and
9.6.2.1.
was caused
by an insured contractor in the course of any operations carried out
by him for the purpose of complying with his obligations under the
defects liability provisions of the insured
contract(s) or
9.6.2.2.
was caused on the site during the construction and
erection period or during the testing period;
9.7. loss of or damage to any part of the property insured which has previously been in use or operation and occurring after
the commencement of the testing
period of any such
property;
9.8. consequential loss.
10.
Conditions
for loss settlement
In the event of
any loss or damage the basis of
loss settlement under this section
shall be as follows:
10.1. In cases where damage can be repaired the
insurer
shall indemnify
the costs necessarily incurred to restore the damaged property to its
condition immediately before the occurrence of loss or damage.
10.2. If the costs
of repairs equal or exceed the actual value
of the damaged
property immediately before
the occurrence of loss or damage, that property
shall be deemed to be a total loss.
10.3.
In the
event of a total loss the insurer shall pay
the actual value of the property insured immediately before the occurrence, provided
all costs have been
included in the sum insured.
10.4. If, in the
event of loss or damage, it
is found that the sum insured
is less than the amount required to be insured, then the
amount recoverable by the insured under this section shall
be reduced in such proportion as the sum insured
bears to the amount required to be insured.
10.5. The cost of any provisional repairs shall be borne by the insurer
if such repairs constitute part of the final repairs and do not increase the total cost of repairs.
10.6. The amount payable by the insurer shall
be reduced by the value of any salvage.
11.
Definitions
Act(s) of God means an
occurrence due to
natural causes, directly and exclusively without human
intervention and which could not
have been foreseen or if foreseen,
could not have been resisted by any amount of human care or skill.
Construction and erection
period
means
a period during which construction and erection
work is carried out pursuant to the
provisions of the insured
contract(s).
Defects liability period means a period during which the insured contractor(s)
comply with their obligations to complete
outstanding work and remedy defects pursuant to the provisions of the insured contract(s).
Other causes means all causes other than acts of God or those
occurring during the testing period or the defects liability period.
Taking-over certificate means a certificate issued under the provisions
of the insured contract(s)
pursuant to which the employer may take over property
insured or any part thereof.
Testing period means a period within the construction and
erection period during which the
insured contractor(s) must test and commission
property insured pursuant to the provisions of the insured contract(s).
Schedule to
section 1a – Project works
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Type of cover
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Cover provided
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Sum insured
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Limit of indemnity
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Basic cover
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Property insured
(including wages,
freight,
custom duties,
dues and value of free issue material)
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———
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Additional insurance cover
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Property belonging to or held in
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———
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———
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the care, custody or control of the
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insured¹
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Professional
fees¹
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———
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Plans and documents¹
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———
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Removal
of debris²
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———
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Expediting expenses¹
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Off-site storage¹
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———
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Inland transit per conveyance
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———
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Total sum insured under section 1a
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¹Limit on first loss basis and in the aggregate. ²Sum insured or percentage of indemnifiable loss.
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Deductible in respect of
|
Deductible
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Percentage
of indemnifiable loss
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Minimum amount
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Acts of God
Other causes Occurrences during the
– testing period
–
defects
liability period
|
———
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———
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Escalation
factor
|
Territorial limits in respect of
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site(s)
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inland transit
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off-site storage
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►
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►
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►
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%
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Period of insurance
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Inception date of this section
|
Construction and
|
Defects liability period
|
Expiry date
of this section
|
|
erection period
|
including testing
period
|
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►
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months
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weeks
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months
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The
following endorsements are attached to and form part of this policy of insurance:
Premium rate (including rate for section 2 – TPL, if applicable): ‰
Deposit premium:
Date Insurer
This section of the policy of insurance
shall not be effective unless this schedule is both signed and dated by the insurer.
► Space for EDP field identifier.
Section 1b – Plant, machinery and equipment
1. Indemnification 1.1. The insurer shall
indemnify the insured for any
sudden physical loss of or damage to the property insured which the insured could not reasonably have foreseen and which
occurs within the territorial limits at any time during
the period of
insurance due to any cause not specifically
excluded and results in property insured needing to be repaired or replaced.
1.2. The indemnity
for each item entered in the schedule shall not exceed the
specified sum insured or limit of indemnity that
may be applicable.
2.
Property insured 2.1. The property insured under this section is the construction or
erection plant, machinery, equipment,
camps,
stores and offices not forming part of the permanent or temporary works and specified in the schedule.
3.
Additional insurance cover
If
specified in the schedule the following additional insurance cover
shall be provided subject to the terms contained herein:
3.1. Expediting expenses
3.1.1. The insurer shall
indemnify the insured up
to the limit of indemnity specified in
the schedule in
respect of reasonable extra costs for
overtime, night-work, work on public holidays, express freight (except airfreight) incurred to rectify
loss of or damage to
property insured.
3.2. Off-site storage
3.2.1.
The insurer shall
indemnify the
insured
up to the limit of indemnity specified in the schedule for loss
of or damage to property
insured whilst in off-site storage within the territorial
limits.
3.3. Inland transit
3.3.1.
The insurer shall
indemnify the
insured
up to the limit of indemnity specified in the schedule in
respect of loss of or damage to property insured whilst in transit within the territorial limits including
laoding and unloading.
3.3.2. This cover
shall not extend to loss of or
damage to property insured whilst in
transit by sea
or by air.
4. Sum insured 4.1. It is a requirement of this policy of insurance that at the
inception date of this section
the sums
insured specified
in the schedule
in respect
of the property insured shall not be
less than the respective new reinstatement value.
4.2. If during the period of
insurance additional property is
to be added to or deleted from this section, these items shall be declared and the sum insured shall then be deemed to
have been increased or decreased accordingly.
5.
Premium 5.1. A deposit premium shall be
paid at the inception date of this
section
and shall be calculated multiplying the sums insured
by the respective annual premium rates.
5.2. If during the period of
insurance the sum insured
is increased or decreased, the
premium shall be
adjusted accordingly.
6. Period of insurance 6.1. The period of insurance
for this section shall be either
the construction and erection period and the testing period specified in the schedule
to section 1a or the period specified in the schedule to this section.
6.2. Inception
and expiry shall both take effect as
of 12 noon on the dates specified
in the schedule.
6.3.
Any extension of the period of insurance shall be
subject to the
prior written consent of the insurer.
7. Territorial limits 7.1. The territorial limits of
this section shall include the
site and any
additional locations specified in the
schedule
for inland transit and off-site storage.
8. Deductibles 8.1. In
respect of each and every occurrence of loss of or damage to items of property insured the insurer
shall not be liable for the respective
deductible specified
in the schedule provided that if more than one item is lost or damaged as a result of any one occurrence, the
insured
shall not be called upon to bear more than the
highest single deductible applicable to any lost or damaged item.
8.2. Any loss
of or damage to the property
insured under this section arising during any one period of 72 consecutive hours caused
by
acts
of God of the same
type
covered by this section shall
be deemed to have been caused by a single occurrence and shall therefore be subject to one deductible.
8.3. For the
purposes of the foregoing the commencement of any
such 72-hour period shall
be decided upon by
and at the discretion of the insured, it
being understood and agreed that there shall be no overlapping
of any two or more such 72-hour periods in the
event of damage occurring over
a more extended period of time.
9. Exclusions The following shall be excluded from the cover provided by this section:
9.1. loss or damage resulting from the electrical or mechanical breakdown of
property
insured,
but this
exclusion shall
be limited to the items
immediately affected and shall not extend to liability for loss of or
damage to other parts of the property
insured as a consequence thereof;
9.2. loss of or damage to vehicles licensed for general road use other than when
being used as a tool
of trade on site;
9.3. loss or damage resulting from the wear and tear, corrosion, oxidation or
deterioration of property insured,
but this exclusion shall be limited to the parts immediately
affected and shall not
extend to liability for loss of or
damage to other parts of the property
insured as a consequence thereof;
9.4. loss or damage due to any faults or
defects that the insured knew or
ought to have known existed at the inception date of
this section;
9.5. loss or damage for which suppliers or
manufacturers are liable either by law or
ordinance or under any contract or agreement;
9.6. loss or disappearance which is discovered only at the time of
taking an inventory or which is not traceable
to a specific occurrence otherwise
indemnifiable
under this section;
9.7. consequential loss.
10.
Conditions
for loss settlement
In the event of any loss
or damage the basis of loss settlement under this section
shall be as follows:
10.1. In cases where damage can be repaired the
insurer
shall indemnify
the costs necessarily incurred to restore the damaged property to its
condition immediately before the occurrence of loss or damage, including charges for ordinary freight,
customs, duties and dues and the
cost of erection provided such
expenses have
been included in the sum insured.
10.1.1. With the
exception of parts which
are subject to wear and
tear and require
routine replacement, no deduction shall be made for depreciation.
10.2. If the
cost of repairs equals
or exceeds the actual
value of the damaged
property immediately before
the occurrence of loss or damage, that property
shall be deemed to be a
total loss and settlement shall be
made on the basis provided
for in clause 10.3.
10.3. In the event of a total loss the insurer shall pay
the actual value of the property insured immediately before
the occurrence of the loss or damage, provided all costs have been included in the sum insured.
10.4. If, in the
event of loss or damage, it
is found that the sum insured
is less than the amount required to be insured, then the
amount recoverable by the insured under this section shall
be reduced in such proportion as the sum insured
bears to the amount required to be insured.
10.5. The cost of any
provisional repairs shall be borne by the insurer if
such repairs constitute part of the final
repairs and do not increase
the total cost of repairs.
10.6. The amount payable by the insurer in
accordance with the above-mentioned provisions
shall be reduced by the value of any salvage.
Schedule to
section 1b – Plant, machinery and
equipment
|
Line of business
|
Policy No.
|
Currency
|
|
►
|
►
|
►
|
|
|
|
|
► Space for EDP field identifier.
|
Specification of property insured (serial number, type,
manufacturer, capacity)
|
Quantity
|
Year of manu- facture
|
Sum insured
|
Deductible
|
Period on risk
|
Annual premium rate ‰
|
|
►
|
►
|
►
|
►
|
►
|
►
|
►
|
|
|
|
|
|
|
|
|
|
Total sum insured
under section 1b
|
|
|
|
Additional insurance cover
|
Limit of indemnity
|
|
►
|
►
|
|
Expediting
expenses Off-site storage¹ Inland transit¹
|
|
¹Limit on first loss basis and in the aggregate.
|
Period of insurance
|
|
Inception date of this section
|
Expiry date of this section
|
|
►
|
►
|
|
|
|
|
Territorial limits in respect of
|
|
site(s)
|
inland transit
|
off-site storage
|
|
►
|
►
|
►
|
|
|
|
|
The following endorsements are attached to and form part of this policy of insurance:
Deposit premium:
Date Insurer
This section of the policy of insurance
shall not be effective unless this schedule is both signed and dated by the insurer.
► Space for EDP field identifier.
Section 2 – Third party liability
1. Indemnification 1.1. The insurer shall
indemnify the insured up to the
limits of indemnity specified in the schedule in
respect of any sums the
insured shall become
legally liable to pay as damages as a
result of
1.1.1.
accidental death of or bodily injury to or illness of
third parties or
1.1.2.
accidental loss of or
damage to property belonging to third
parties
1.2. caused by the
construction, erection and testing of
the property insured or
an insured contractor’s
operation necessary to
comply with the provisions of an insured contract and occurring within the territorial limits during
the period
of insurance.
2. Limit of indemnity 2.1. The
insurer’s total liability
under this section for any one occurrence or
series of occurrences arising
from one event or attributable to a single cause shall
not exceed in the aggregate the total limit of indemnity entered in the schedule.
3. Cross liability 3.1. The insurance under this section shall apply to the insured named
in the schedule
of section 1a as
if
a separate policy had been issued to each party, provided that the insurer shall not
indemnify the insured under
this section in respect of any liability
for
3.1.1.
loss of or
damage to property insured under sections
1a or 1b of
this policy of insurance;
3.1.2. death
of, bodily
injury to or illness of any employee of any insured party ;
3.1.3.
consequential
loss resulting from loss of or damage to property belonging to or held in the care,
custody or control of any insured
party .
4. Cost of litigation 4.1. In respect of a claim for compensation to which the
indemnity provided herein applies, the insurer shall in addition indemnify the insured for
4.1.1.
all costs and
expenses of litigation recovered from the
insured by any claimant and
4.1.2. all costs and expenses incurred with the
insurer’s written consent,
4.2. always provided that the insurer’s liability under this section shall not exceed the limits of indemnity specified in the
schedule.
5.
Period of insurance 5.1. The period of insurance
of this section shall be either the period
of insurance of section 1a or the
period specified in the schedule.
5.2. Any extension of the period of insurance shall be
subject to the prior written consent of the insurer.
6. Deductible 6.1. In
respect of each and every occurrence of loss of or damage to items of property belonging to third parties
the insurer shall not be liable for the amount of the deductible specified in the schedule.
7. Exclusions The following shall be excluded from the cover provided by this section:
7.1. any liability resulting from any
loss of or damage to
any property or land or
building caused
by vibration or by the
removal or weakening of any
support;
7.2. any liability resulting from the
ownership or possession of or
use by or on behalf of the insured of any waterborne
vessel or any aircraft or any vehicle licensed for general road use other than when being used
as a tool of trade on
site;
7.3. any liability resulting from the death
of, bodily injury to or illness of employees
or workmen of any insured party;
7.4. any liability resulting from loss
of or damage
to property held in the care,
custody or control
by an insured party or any
property on which an insured party is
working;
7.5. any liability resulting from any contract
or any agreement entered into by the
insured to pay
any sum by way of indemnification or otherwise unless such liability
would also have attached in the absence of such agreement;
7.6. any liability resulting from pollution or contamination other
than that caused by a sudden identifiable unintended and unexpected occurrence, other than those
excluded by clauses 1.4 and
1.5 of the exclusions applicable
to all sections, which takes place in its entirety at a
specific time and place;
7.7. any liability for fines, penalties,
liquidated damages or damages
for breach or non-performance of contract of whatever nature;
7.8. any liability for any occurrence which is inevitable having regard to the
circumstances and nature
of the work undertaken;
7.9. any liability arising during the defects
liability period specified in the schedule to section 1a other than that which arises solely out of an
insured contractor’s operations carried out for the purpose
of complying with his obligations
under the defects liability provisions of
an insured contract.
8. Special
conditions 8.1. No admission,
offer, promise, payment or indemnity shall be
made or given by or on behalf of the insured without the express written consent of the insurer.
8.2. If it so desires
the insurer shall
be entitled at
its own expense to take over
and conduct in the
name of the insured the
defence or settlement
of any claim or to
prosecute for its
own benefit in the name of
the insured any claim for indemnity or damages or contribution.
8.3. The insurer shall
also have full discretion
in the conduct of any proceedings
or
in the settlement of any claim and the insured shall give any information and
assistance the insurer may
require.
8.4. Insofar as an
accident is involved, the insurer may pay to the insured the limit of indemnity for any one accident less any compensation already paid in respect of the accident or any sum below the limit of
indemnity from which
claims arising from the accident may be settled.
8.4.1.Thereafter, the insurer shall in either
case be under no further obligation in respect of the accident under this section.
9.
Definitions
Employees means
–
anyone directly
employed by the insured
–
labour
masters or suppliers and persons
supplied by them
–
persons employed
by labour-only subcontractors
–
self-employed
persons, drivers and/or operators of plant hired by any insured
party including drivers and/or operators supplied by any plant hire company who
are stated to be or deemed
to be employees of the insured
pursuant to any terms
of any plant hire agreement
–
persons
gaining work experience or undergoing training
– any
other person
hired or borrowed by an insured
party
–
voluntary
workers
who are working under the direction
or control of the insured in connection with the performance of an insured
contract under section 1a.
Schedule to
section 2 – Third
party liability
|
Line of business
|
Policy No.
|
Currency
|
|
►
|
►
|
►
|
|
|
|
|
► Space for EDP field identifier.
|
Cover provided
|
Limit of indemnity1
|
Deductible
|
|
►
|
►
|
►
|
|
Accidental
death of
or bodily injury to or illness of third parties
Accidental
loss of
or damage to property belonging to third parties
|
|
|
|
Total limit
of indemnity1 under section 2
|
|
|
1Limit of indemnity in respect of any one accident or series of accidents
arising out of one event.
|
Period of insurance
|
|
Inception date of this section
|
Expiry date
of this section
|
Territorial limits in respect of
|
|
site(s)
|
inland transit
|
off-site storage
|
|
►
|
►
|
►
|
►
|
►
|
|
|
|
|
|
|
The
following endorsements are attached to and form part of this policy of insurance:
Premium rate: Included in the premium rate under section 1a.
Date Insurer
This section of the policy of insurance
shall not be effective unless this schedule is both signed and dated by the insurer.
► Space for EDP field identifier.
Section 3 – Delay in start-up
1. Indemnification 1.1. The insurer shall indemnify the insured for
a loss of the interest insured unless specifically excluded if at any time
during the period of
insurance the property insured under section 1a suffers loss or damage
indemnifiable under section 1a or which would have been indemnifiable
under section 1a
but for the application of a deductible,
thereby causing
an interference in the
construction, erection or testing time schedule resulting in a
delay
in start-up of the business insured.
1.2.
The indemnity for the loss of interest insured shall be in
respect of:
1.2.1.
gross
profit, the
loss actually sustained during the indemnity period resulting from a reduction in turnover including any increased cost of working or
1.2.2.
specified
standing charges, the amount actually not
earned during the indemnity period resulting from a
reduction in turnover including any increased cost of
working.
1.3.
The indemnity shall not exceed the sum insured for the maximum
indemnity period.
2. Sum insured 2.1. The sum insured shall be
2.1.1. the annual gross profit specified in the schedule or
2.1.2. the annual specified standing
charges.
2.2. Should the maximum indemnity period exceed twelve months,
the gross profit
or the specified standing charges
shall be the pro rata
amount for that period.
3. Period of insurance 3.1. The insurance cover under this section shall begin upon commencement
of physical work or storage on the site or the inception date specified in the schedule, whichever is the later.
3.2. All insurance cover under this section shall cease
on the scheduled date of commencement
of the business
insured or on the
date
of commencement of the business
insured, whichever is the
earlier.
3.3. No extension
of the period of
insurance under section 1a shall automatically extend the period of insurance for this
section.
3.4. Any
anticipated change
in the scheduled date of commencement
of the business insured shall be reported to the insurer and be effective
for this section only if
specifically
agreed upon by the insurer in writing.
3.5. If as a result of a delay in start-up
the period of insurance under this section is to be
extended, the time excess and the indemnity period shall be renegotiated and agreed upon in writing.
4. Indemnity period 4.1. The indemnity period shall be the
period during which the interest
insured is affected
as a result of the delay in start-up, beginning
on the scheduled date of
commencement of the business
insured and not exceeding the maximum indemnity period specified in the schedule.
5.
Premium
5.1.
A deposit
premium
shall be paid at the inception of this
section and shall be calculated by multiplying
the sum insured
by the premium rate.
5.2.
If
the
insured declares and his auditors have certified
that the amount of the gross
profit during the accounting period of twelve months following
the date of commencement
of the business insured or the date on which but for
the delay in start-up
the business
insured would have commenced was less than
the annual sum insured, a pro rata return of premium not
exceeding one third of
the premium paid shall be made in respect of the difference.
5.3. If any loss or damage has occurred giving rise
to any payment in respect of a loss of the gross profit then the amount calculated
before application of the time excess shall be added
to the amount certified by the insured’s auditors under clause 5.2 and any
return of premium shall be based on
the difference between such sum
and the sum insured.
6. Time excess 6.1. In respect of a loss of interest
insured the insurer
shall not be liable for the amount obtained by multiplying
the average daily value of the loss of interest insured sustained during the indemnity period by the number
of days specified in the schedule as
the time
excess.
7. Exclusions The following shall be excluded from the cover provided by this section:
7.1. loss of
interest insured
due
to any delay in start-up
resulting from
7.1.1.
loss or damage
covered under section 1a by way of endorsement unless
expressly specified as covered in the schedule;
7.1.2.
earthquake,
volcanic eruption or tsunami,
unless expressly specified
as
covered in the schedule;
7.1.3. loss of
or damage to the employer’s
property;
7.1.4.
loss of or
damage to fuel or feedstock or any materials necessary for
the business insured unless expressly agreed to form
part of the property
insured under section 1a;
7.1.5.
redesigning,
altering, adding to or improving the property insured or rectifying defects or faults;
7.1.6.
loss of or
damage to the property insured under
section 1a or any part thereof
7.1.6.1. which has been taken into use or
occupation or
7.1.6.2.
for which a
taking-over certificate has
been issued or is deemed to
have been issued;
7.1.7. loss of
or damage to items of a prototype nature, unless expressly specified
as covered in the schedule;
7.1.8.
any
restrictions imposed by a public authority;
7.1.9.
non-availability
of funds;
7.2. the amounts of any fines or damages for
breach of contract, for late
or non- completion of orders
or for penalties of whatever
nature;
7.3.
loss of interest
insured resulting from
suspension, lapse or cancellation
of a lease, licence, order, contract or agreement
other than the loss of interest
insured incurred during the delay in start-up.
8.
Claims
notification and the insured’s special obligations following an occurrence of loss or damage
8.1. In the event of
any occurrence of
loss or damage which might cause a delay in start-up
8.1.1.
the insured
employer shall immediately notify the insurer and send it
written confirmation thereof within forty-eight hours
of the occurrence;
8.1.2.
the insurer or the
insurer’s agent shall have
unlimited access to the site to establish the possible cause
and extent of the loss or damage, its effect on the interest insured, to examine the possibilities for minimizing the delay in start-up and if necessary to make reasonable
recommendations for the avoidance or minimization of such delay.
8.2. In the
event of a claim being
made under this section, the insured shall at his own expense deliver to the insurer not
later than thirty days after the delay in
start- up or within such further periods as the insurer may allow in writing
a written statement setting forth particulars of the claim.
8.3. The insured shall
at his own expense produce and furnish to the
insurer such books of account and other business books or
other evidence as may reasonably be required
by the insurer for the purpose of
investigating or verifying the claim
together with, if required,
a statutory declaration of
the truth of the claim and of any matters
connected therewith.
9.
Conditions
for loss settlement
In the event of
a loss of interest insured the
basis of loss settlement under this
section shall be as follows:
9.1.
Loss of gross profit
9.1.1.
In respect of loss of gross
profit, the insurer shall pay
the amount obtained by multiplying the rate of gross profit by the amount by
which the actual turnover during the indemnity period falls short of the turnover which would have been
achieved had the delay in
start-up not occurred.
9.1.2.
If the annual sum insured hereunder is
less than the amount
obtained by multiplying the rate of gross profit by the
annual
turnover or, if the maximum indemnity
period exceeds
twelve months, the turnover calculated for the equivalent period, the amount payable shall
be reduced proportionately.
9.2.
Specified standing
charges
9.2.1.
In respect of specified standing charges, the insurer shall
pay the amount obtained by multiplying the
percentage by which the actual turnover during the indemnity period falls short of the
turnover which would have
been achieved had the delay in
start-up not occurred by the amount
of specified standing
charges incurred during the indemnity period.
9.2.2.
If the sum insured hereunder is less than the amount
obtained by multiplying the rate of
gross profit by the annual turnover
or, if the maximum indemnity
period exceeds twelve months, the pro rata turnover for that period,
the amount payable shall be
reduced proportionately.
9.3. Increased cost of working
9.3.1. In respect of increased cost of working, the insurer shall
pay the additional
expenditure necessarily and reasonably incurred for the
sole purpose of avoiding or
diminishing the reduction in turnover
which, without such expenditure, would have occurred during the indemnity period after the time excess.
9.3.2. The indemnity shall not exceed the amount
of loss of interest insured thereby
avoided.
9.4. Calculation
of rate of
gross profit and annual turnover
9.4.1.
In calculating the rate of gross profit and annual turnover,
the
following aspects shall be taken into consideration:
9.4.1.1.
the results of the business insured
for the 12-month period after the date of commencement
of the business insured;
9.4.1.2. any
circumstances which
would have affected
the business insured had the
delay in start-up not occurred;
9.4.1.3.
any circumstances affecting the business insured after the actual date of commencement
of the business
insured.
9.4.2. The final figures shall represent as closely as may be deemed reasonable the results which the business insured would have
achieved after the scheduled
date of commencement
of the business insured had the delay in
start-up not occurred.
9.4.3. If through
measures undertaken to avoid or minimize the delay in
start-up a
financial advantage accrues
to the benefit of the insured during
the period of the
time excess
or up to six months beyond
the indemnity period, this financial
advantage shall be taken into account in determining the
indemnity.
9.4.4.
Liquidated
damage for which any contractor is obliged to indemnify the
insured shall be
deducted from the loss of interest insured.
11. Progress reports 11.1. The insured shall provide the insurer with
updated progress reports at the intervals stated in the schedule.
11.2. The progress
report shall show the
progress of the work on
the insured contract(s) in relation to any contractual programme
of work prepared by any contractor.
11.3.
The progress report
shall identify any delays or potential delays in
the progress of work and the effect of such
delays in terms of a potential claim
under
this section and any measures
taken or intended to be taken
to minimize the effect
of any such delays.
12.
Definitions
Annual turnover means the turnover which, had the delay in
start-up not occurred, would have been achieved during the twelve months after the scheduled date of commencement of the
business insured.
Business insured means the commercial operation of the property insured
specified in the schedule to this section.
Date of commencement of the business insured
means the actual date on which the business insured commenced.
Debt service charges means the amount of the
annual payment(s) of interest and if specified the principal on borrowings due by the insured employer.
Delay in start-up means a delay in the scheduled date of commencement of the business insured.
Gross profit means the amount by which the value of the turnover and the value
of the closing stock exceeds
the value of the
opening stock and the amount of the specified working expenses. The value of the opening and closing stocks shall be
calculated in accordance with the insured’s normal accounting
methods, due provision being made for
depreciation.
Increased
cost of working
means
the additional expenditure necessarily and reasonably incurred for the sole
purpose of avoiding or diminishing the loss of gross
profit which, without such expenditure, would have taken place.
Interest insured means
either
the gross profit including any increased cost of working or the
specified standing
charges including any increased cost of working.
Maximum indemnity period
means the maximum period specified
in the schedule in respect
of which cover is afforded for the interest insured by this
section.
Rate of gross
profit means the percentage of gross profit which,
had the delay in start-up
not occurred, would have been earned on the annual
turnover.
Scheduled
date of commencement
of the business insured
means the date specified as such in the schedule or any
revised date upon which the business
insured would have commenced
had the delay in start-up
not occurred.
Specified standing charges
means
any fixed costs specified in the schedule
which continue to be payable in full during the indemnity period.
Specified working expenses
means
any costs incurred for the
acquisition of goods, raw materials or auxiliaries as well as
for supplies
unless required for the upkeep of operations and any costs
of packaging, carriage,
freight, intermediate storage,
turnover tax, purchase, tax,
licence fees and royalties, insofar as such
costs are dependent on turnover.
Time excess means the period specified in the schedule
for which the insurer is not
liable.
Turnover means the
amount of money (less discounts) paid or payable to the insured for goods, products or services sold, delivered or rendered in
the course of the business
insured.
Schedule to
section 3 – Delay in
start-up
|
Line of business
|
Policy No.
|
Currency
|
|
►
|
►
|
►
|
|
|
|
|
► Space for EDP field identifier.
|
Interest insured in respect of loss or damage insured under
section 1a
|
Annual
sum insured
|
Sum insured for
maximum indemnity period
|
Premium rate
‰
|
|
►
|
►
|
►
|
|
|
Gross profit including increased cost of working or
Specified
standing charges
including increased cost of working
– Debt
service charges
– Other charges
|
|
|
|
|
Period of insurance
|
|
Inception date of this section
|
Expiry date of this section
(scheduled date of commencement of the business insured)
|
|
►
|
►
|
|
|
|
|
Maximum indemnity period
|
Time excess
|
Progress report interval
|
|
►
|
►
|
►
|
|
months
|
days
|
month(s)
|
The
following endorsements are attached to and form part of this policy of insurance:
Deposit premium:
Date Insurer
This section of the policy of insurance
shall not be effective unless this schedule is both signed and dated by the insurer.
► Space for EDP field identifier.
Section 4 – Marine cargo
1. Indemnification 1.1. The insurer shall indemnify the insured for
loss of or damage
to the property insured under sections 1a and 1b during the time
in which it is the subject
of a
contract of affreightment or other contract
of carriage in accordance with and subject to the Institute Cargo
Clauses listed below:
Institute Cargo Clauses (A) 1/1/82
Institute Cargo Clause (Air) 1/1/82
Institute Replacement Clause 1/1/34 Institute Classification Clause 1/8/97
Institute War Clause (Cargo) 1/1/82
Institute War Clauses (Air Cargo) 1/82
Institute War Cancellation Clause (Cargo) 1/12/82 Institute Strikes
Clauses (Cargo) 1/1/82
Institute Strikes Clauses (Air Cargo) 1/1/82
Institute Radioactive Contamination
Exclusion Clause 1/10/90 Cargo Termination of Transit Clause (Terrorism)
2002
1.2. The indemnity
for the loss of or damage to
the property
insured shall not
exceed the amount of
the actual value of the
insured items specified in
the schedule
or any limit of indemnity
that may be applicable.
2. Additional
insurance conditions
2.1.
Transshipments
2.1.1. This section also
covers the risk of transshipment
if and as applicable whether customary or not.
2.2. Rejected
or returned shipments
2.2.1. In the event of
any item of property
insured under this section being rejected or returned for any reason, such items shall
continue to be covered,
including any time spent
in a warehouse or elsewhere until
they are finally disposed of.
2.2.2. The insured shall
report to the insurer any such detentions
and/or return of such items at the earliest possible time after gaining knowledge of such instances.
2.2.3. These risks shall
be held covered at premium rates to be
agreed, subject to
the details of each individual
case.
2.3. Removal of debris
2.3.1. The insurer
shall indemnify the insured up
to the sum insured specified in the schedule
in respect of the costs
and expenses necessarily incurred
to remove and dispose of debris, to dismantle, demolish, shore or prop up property insured in any circumstances giving rise to
indemnifiable loss or damage under
this section, but
excluding
2.3.1.1. any expenses incurred as a
consequence of or for
the prevention or miti- gation of pollution or contamination, or any threat or liability for
such expenses and
2.3.1.2. the cost of
removing cargo from any vessel or craft.
2.3.2. In no case shall the insurer be
liable under this clause
for more than 5% (per cent) of the proportionate
actual value of the damaged property insured
removed under this section.
2.4. Time limits
2.4.1. The time
limits in clauses 8.1.3 and 9.1 and 9.2 of the Institute Cargo
Clauses (A) 1/1/82 referred to above shall be extended to 90 days.
2.4.2. Notwithstanding the specific periods of insurance cover specified in the
Institute of London Underwriters Clauses or in the
schedule, the property
insured under this section shall
be covered until the
insurance cover under sections 1a
and
1b attaches to the respective items of the property insured subject to the payment of an additional premium in
the
event that the time
limits stated under clause 2.4.1 are exceeded.
2.5. General average and salvage
charges
2.5.1. For the purpose of
claims for general average
contributions and salvage charges recoverable hereunder, the property insured
shall be deemed to be insured
for its full contributory value.
2.6. War risks premium adjustment
2.6.1.
The premium rates charged under this section may
be adjusted at any time following the
outbreak of hostilities or civil disturbances or any similar
occurrence anywhere in the world.
2.6.2. The premium rates
to be applied shall be those that
apply at the time of
shipment as circulated
by the War Risks Rating Committee in
London.
2.6.3.
In the event
of any change in the premium rates pursuant to this clause,
the premium payable
under this section
shall be recalculated and any increase
shall be paid by
the insured to the
insurer.
2.7. Goods on deck
2.7.1.
Property
insured shipped
on deck shall be covered by
this section subject
to seaworthy packing and rust-proofing.
2.8. Conveyance
2.8.1. All means of conveyance are insured.
2.8.2. The marine
cargo premium rate
agreed for this section
shall apply only to cargoes carried
by mechanically self-propelled
vessels, which must be of steel construction, must not be older than 15 years, must not be
sailing under a flag of
convenience or
problem flag, must not have single vessel status, and must have
an impeccable management.
2.8.3. The vessel must have the highest class of
one of the classification societies
listed in the Institute Classification
Clause 1/8/97.
2.9. Insolvency
2.9.1. The exclusion 4.6 “loss, damage or expense
arising from insolvency or financial default of the owners, managers, charterers or operators of
the vessel” of the Institute Cargo Clauses
(A) 1/1/82 shall be amended
to read as follows:
“In no case shall this section cover loss, damage or expenses arising
from insolvency or financial default of the owners,
managers, charterers or
operators of the vessel if
the insured is unable to show that, prior to the
loading of the property insured on board of the vessel, all reasonable and prudent measures were taken by the insured, its servants and agents, to establish the financial
reliability of the party in default.”
2.10. Time limitation
2.10.1.
Without
prejudice to matters under arbitration any
right arising from this section shall be
limited to a period of three years commencing at the end of the year in which the right of action accrued.
2.11. Strike cancellation
2.11.1.
The cover against strikes as defined in the relevant Institute Strike Clauses may be cancelled by either the insurer or the insuring
party except in respect
of any cover which
has attached in accordance with the conditions of the Institute Strike
Clauses before the cancellation becomes effective.
2.11.2.
The
cancellation shall become
effective upon the expiry of 7
days from midnight of the
day on which the notice of cancellation is issued by or to the
insurer.
2.12. Declaration
2.12.1.
The insured shall
declare all items of property insured
with a value
greater than the amount specified
in the schedule prior to
shipment to enable the insurer to conduct
loading or
discharge surveys.
Schedule to
section 4 – Marine cargo
|
Line of business
|
Policy No.
|
Currency
|
|
►
|
►
|
►
|
|
|
|
|
1whilst engaged in delivering material
and equipment for the insured
contract(s).
► Space for EDP field identifier.
|
Sum insured1
|
Limit of liability per means of conveyance
|
Limit of liability for fire-protected separated
storage place
|
|
►
|
►
|
►
|
|
|
|
|
1The sum insured
shall not be less than the replacement value equivalent to 110% of the CIF value of the insured
property subject to appropriate
per conveyance limits.
|
Territorial limits
|
Deductible any one occurence
|
Declaration limit in accordance with clause 2.12.1
|
Premium rate ‰
|
|
Voyage ex works
|
to project site at
|
|
►
|
►
|
►
|
►
|
►
|
|
|
|
|
|
|
|
Period of insurance
|
|
Inception date
of this section²
|
Expiry date
of this section
|
|
►
|
►
|
|
|
|
²Insurance cover shall become
effective as from the first shipment and remain in force until the final shipment of the insured property.
The
following endorsements are attached to and form part of this policy of insurance:
Deposit premium:
Date Insurer
This section of the policy of insurance
shall not be effective unless this schedule is both signed and dated by the insurer.
► Space for EDP field identifier.
