POLICY NO. XXX
EQUIPMENT ALL RISKS INSURANCE
in respect of
_____________
POLICY NO. XXX
EQUIPMENT ALL RISKS INSURANCE
FOR
XXX
ITEM INDEX PAGE
SCOPE
TERMS CONDITIONS THE SCHEDULE
OIL AND GAS WELL DRILLING TOOLS FLOATER FORM (ALL RISKS)
1.
THIS POLICY
INSURES AGAINST 1
5.
DEDUCTIBLE 1
7.
THIS POLICY
DOES NOT INSURE
AGAINST 2
9.
BLOWOUT PREVENTOR WARRANTY 4
10.
BLOWOUT AND CRATERING CLAUSE 4
11.
SALVAGE EXPENSES OR SUE AND LABOUR 4
12.
WAIVER OF INVENTORY OR APPRAISEMENT 4
14.
BAILEE 5
15.
SUBROGATION 5
17.
NOTICE OF
LOSS 6
21.
ASSIGNMENT 6
23.
MISREPRESENTATION AND FRAUD 7
26.
CANCELLATION 8
POLICY NO. XXX
SCOPE
TERMS AND CONDITIONS
Whereas the Insured named in the Schedule
has applied to PT. ………..(hereinafter called the Insurer) for insurance
in the terms hereinafter stated.
Subject to the Terms, Exceptions, Conditions, and Provisions of the Policy
and in consideration of the payment
of the Premium by the Insured,
the Insurer agrees to indemnify the Insured
in respect of the Interests Insured as described
in the Policy.
PT. ...................
Authorized Signature
Signed in Jakarta,
KML/jim
SCHEDULE
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Policy Number : The Insured : |
XXX XXX |
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Period of Insurance : |
From to (Both days inclusive at 12.00 noon local
time) |
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Interest : |
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Territorial Limit : |
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|
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Sum Insured : |
XXX US$ |
- |
XXX US$ -
US$ -
Deductible : 10% from amount of loss to be claimed
with minimum of
US$ any one accident or occurrence.
Conditions : Oil and Gas Well Drilling
Tools Floater Form (All
Risks),
excluding War Strikes
Sabotage and Terrorism absolutely Institute Radioactive Contamination Exclusion Clause (CL370)
Institute Chemical Biological Bio-Chemical Electromagnetic Weapons and Cyber Attack Exclusion
Clause (CL380)
Excluding Stacked Credit
Rate : X% for Equipment (annually)
Premium : US$
OIL AND GAS WELL DRILLING TOOLS
FLOATER FORM (ALL RISKS)
1.
THIS POLICY INSURES
AGAINST
All Risks of physical
loss or physical damage from any external cause (including General Average
or Salvage Charges,
if any) except
as hereinafter excluded.
2.
PROPERTY INSURED
Except as hereinafter excluded,
this policy insures oil or gas well drilling, servicing, workover or specialty
equipment as scheduled herein,
the property of the Insured, or for which the Insured may be legally
liable including
but not limited to tools, portable buildings and their contents,
machinery, materials, appurtenances, derricks, substructures, drill pipes, drill collars and other equipment
constituting a part thereof while at locations as covered
hereunder. Each item or rig shall be deemed a separate insurance; however, permission is granted the Insured to interchange equipment between
items or units scheduled hereunder.
It is understood and agreed that this policy shall include
property as above described (except
as hereinafter excluded), being either the Insured's
own or property sold
but not removed, also, on their interest in or on their legal liability
for
similar property rented or leased
or held on joint account with others, or being repaired, all whilst located
as described above,
as scheduled herein.
3.
AUTOMATIC COVERAGE
This policy,
subject to its terms and conditions, is extended to cover additional drilling and/or workover
rigs which the Insured may acquire
subsequent to the effective date of this policy. In consideration of this extension, the Insured specifically agrees to report such acquisition to the Insurers within
45 days and pay pro rata additional premium from date acquired to expiration. This policy shall cease to cover any equipment
so acquired if not reported
within the required period.
In no event shall the Insurers
be liable for more than the maximum scheduled value any one rig or item under the terms of this extension.
4.
TERRITORIAL
LIMITS
The property covered hereunder is insured while
on the sea within
limit of .
5.
DEDUCTIBLE
It is hereby understood and agreed that each claim for loss of or damage
to
property insured hereunder
shall be reported and adjusted separately, and 10% from amount of loss to be claimed
with minimum of US$ any one accident or occurrence shall be deducted.
6.
DEBRIS REMOVAL EXTENSION
This policy also covers expenses incurred in the removal of debris of the property covered hereunder which
may be destroyed or damaged by a peril insured against. In no event shall the Insurers'
liability exceed an additional 10% over the amount scheduled
herein for that item. The cost of removal of debris shall not be considered in determination of the valuation of the property
covered.
7.
THIS POLICY DOES NOT INSURE AGAINST
(a)
Wear and tear and/or gradual deterioration
(b)
Loss or damage caused by or resulting from:
(1)
War, hostile or warlike
action in time of peace or war, including action in hindering, combating or defending against an actual, impending or expected attack, (a) by any government or sovereign
power (de jure or de facto), or by any authority maintaining or using military, naval or air forces; or (b) by military, naval or air forces; or (c) by an agent of any such government, power, authority
or forces;
(2)
Any weapon of war employing
atomic fission
or radioactive force whether in time of peace or war;
(3)
Insurrection,
rebellion, revolution, civil war, usurped
power, or action taken by government authority
in hindering, combating or defending against such an occurrence, seizure or destruction under quarantine or customs regulations, confiscation by order of any government or public authority, or risks of contraband or illegal transportation or trade.
(c)
Loss or damage occasioned by or resulting from the explosion of steam engines, steam or hot water boilers, steam
pipes, water heaters,
or their connection caused by internal steam or water pressure; nor for loss occasioned by the explosion of internal
combustion engines, flywheels, pulleys, abrasive wheels or moving or
rotating parts of machines; unless fire ensues and then for loss or damage by fire only.
(d)
Loss or damage caused by the neglect of the Insured to use all reasonable means to save and preserve
the property at and after any disaster insured against; or when the property is endangered by fire in neighboring premises.
(e)
Loss of or damage to electrical appliances or devices
of any kind, including wiring, arising
from electrical injury, disturbance to said electrical appliances or devices
or wiring from artificial causes, unless fire ensues and then only for direct
loss or damage caused by such ensuing
fire.
(f)
Loss or damage while the property is situated
or installed on vessels or barges (except
while being transported on a regular ferry
line) or on
artificial island(s) above water, or during any operation offshore except when agreed by Insurers
in advance at additional premium
to be charged.
(g)
Loss of or damage
to servicing or workover rigs or derricks while being moved by skidding
while in a fully or partially
assembled state, other than the state in which they are intended to be moved.
(h) Loss or damage
to drill bits, drilling mud, acid, cement or chemicals.
(i)
Loss or damage caused
by open flame methods
used to preheat engine combustion chambers or thaw fuel lines and the like.
(j)
Loss or damage to foam solutions or other fire extinguishing materials lost, expended or destroyed
in fire fighting, or for any other expenses incidental to fighting fire, controlling or attempting to control blowout
or cratering.
(k)
Delay or loss of use, whether resulting from a peril insured
against or otherwise.
(l)
Theft if due to infidelity of employees or the conversion, embezzlement or secretion by any person
in lawful possession of the property
or failure of such persons to return
property loaned, rented
or used by them.
(m) Unexplained loss, mysterious disappearance, nor loss or shortage
disclosed upon taking inventory.
(n)
Any repairing, adjusting, servicing or maintenance operation
unless fire or explosion ensues and then only for loss or damage by such ensuing
fire or explosion.
8.
PROPERTY NOT INSURED
(a)
This Policy does not insure motor vehicles (except such trucks, carriers
or
trailers on which equipment is permanently attached as part of an item or unit herein
described, or trailers used as quarters
for crews or the motor vehicles described
herein), aircraft, railroad
rolling stock,
cement, mud, drilling compounds, chemicals, casing roadways, causeways, earthen pits, blueprints,
plans, specifications, record or property
while in permanent storage in any warehouse or storage yard owned unless stored at premises of the Insured.
(b)
Insured property
situated below the earth's surface for which the well
owner
or operator has contractually or legally
assumed liability.
(c)
Insured property
situated below the earth's
surface unless loss or damage is caused by:
(1)
Fire, lightning, tornado, windstorm, flood, theft, vandalism, malicious mischief, sabotage,
strikes, riots,
civil commotion or aircraft.
(2)
Explosion above the surface of the ground, blowout
or cratering as defined herein.
(3)
Raising, lowering, pull-in or collapse
of derricks or masts.
(4)
Total loss of the Rig.
(d)
Insured property used to drill a relief well to control
or to attempt to control blowout, cratering
or fire in any oil or gas well, unless approval
is obtained from Insurers,
or held covered.
(e)
Property consisting of a complete unit or parts thereof, leased, loaned
or
rented to others or operated by
others unless prior notice has been given to Insurers and the policy is extended
to cover such property in use by others.
(f)
Nuclear reaction or nuclear
radiation or radioactive contamination, all whether controlled or uncontrolled, and whether such loss be direct
or indirect, proximate or remote,
or be in whole or in part caused
by,
contributed to or aggravated by the perils(s) insured against
in this policy. Direct loss by fire resulting from nuclear
reaction or nuclear radiation or radioactive contamination is insured
against by this policy.
9.
BLOWOUT PREVENTOR WARRANTY
The Insured warrants and agrees that a blowout preventor of standard
make will be set on the surface casing,
same to be installed and tested in accordance with the usual practice
(this warranty not applicable to cable tool rigs and spudders) but this warranty
shall not apply at such times when the fitting
of said blowout preventor interferes with or prevents the Insured from carrying out his servicing or workover programme in accordance with normal practice.
10.
BLOWOUT AND CRATERING CLAUSE
The term "Blowout" shall be defined as a sudden expulsion of drilling fluid (mud, water and sometimes oil) above the surface
of the ground (above earth's surface) followed by a continuous uncontrolled flow of Oil, Gas or Water from the well that occurs when the pressure
of Oil, Gas or Water entering
the well at some depth below the surface is greater than the pressure
exerted by the column of drilling fluid in the well and resulting
in the well becoming
completely out of control.
The term "Crater" shall be defined as a basinlike opening in the earth's surface surrounding a well caused by the erosion and eruptive action of a Gas and/or Oil and/or Water well flowing
without restriction.
11.
SALVAGE EXPENSES
OR SUE AND LABOUR
It is agreed that in the event of salvaging
expenses or Sue and Labour charges (not herein
excluded) being incurred in consequence of a peril insured against, then Insurers shall be liable for no greater proportion of such expense then the value of the drill stem below the surface
of the ground at the time the loss occurs bears to the aggregate value of the hole (at the time of the loss) plus the value of said drill stem, but in no event shall the liability
of Insurers for Salvage Expense and/or Sue and Labour charges
exceed that cash value of the drill stem below the surface of the ground
at the time of the loss.
12.
WAIVER OF INVENTORY OR APPRAISEMENT
In the event that the aggregate
for loss does not exceed five percent (5%) of the total amount
of insurance for each item upon property
damaged and insured hereunder at the time such loss occurs, no special inventory or appraisement of the undamaged property shall be required. If this policy
is applicable to two or more items, the foregoing
condition shall apply to each item separately.
13.
OTHER INSURANCE
If, at the
happening of any casualty,
the Insured has any other insurance
identical with or similar to the terms of this policy, whether prior or subsequent in date, or simultaneous with this insurance, then the Insurers
shall not be liable under this policy for a greater proportion of any loss on the property insured hereunder than the amount
hereby insured shall bear to the whole insurance effected, whether valid or not.
14.
BAILEE
This insurance shall in no way inure directly
or indirectly to the benefit of any carrier or other bailee.
15.
SUBROGATION
In the event of any payment under this policy the Insurers shall be subrogated
to
all
the Insured's rights of recovery
therefor against any person or organisation and the Insureds shall execute and deliver
instruments and papers and do whatever else is necessary to secure such rights. The Insured shall do nothing after loss to prejudice such rights.
16.
WAIVER OF SUBROGATION
The
Insured may, without
prejudice to this insurance, enter into agreements or contracts for work involving the use of the property insured
hereunder which contain provisions relieving
the other party to such agreements or contracts of liability for loss or damage
to such property while in
use in the performance of the work under
such agreements or contracts. This waiver
of subrogation shall not apply to Sub-Contractors of the Insured.
17.
NOTICE OF LOSS
The
Insured shall give to PT. ................... as soon as practicable, notice of any occurrence which may result in a claim hereunder, stating the time, place, cause and circumstances of each occurrence.
The Insured shall also file with PT. ................... as soon as practicable, a detailed sworn Proof of Loss and Payment Order.
The Insured shall, if requested, make available to the Insurers or their representatives all records, agreements, contracts or other documents
needed to determine or substantiate
a
claim.
Failure by the Insured to report the said loss or damage and to file such sworn proof of loss as hereinbefore provided shall invalidate any claim under this policy for such loss.
18.
EXAMINATION UNDER OATH
The Insured shall submit and, so far as is within his or her power, shall cause all other persons
interested in the property and members of the household and employees to submit to examinations under oath by any person named by the Insurers relative to any and all matters in connection with a claim and subscribe the same; and shall produce for examination all books of account,
bills, invoices and other vouchers
or certificated copies thereof, if originals be lost, at such reasonable time and place as may be designated by the Insurers or their representatives, and shall permit extracts
and copies thereof to be made.
19 PAYMENT OF LOSS
All adjusted claims shall be paid or made good to the Insured or any mortgagee stated in the schedule attaching hereto within thirty (30) days after presentation and acceptance of satisfactory proof of interest and loss at the office of Insurers
or
their
authorised representatives. No loss shall be paid hereunder if the Insured has collected the same from others.
20.
BASIS OF SETTLEMENT
Insurers' liability shall be limited
to the replacement value of the property at the time of loss and shall not exceed the values scheduled herein.
Insurers shall have the option to take all, or any part, of the property destroyed or damaged and replace same with other of like kind and quality, within a reasonable time, on giving notice of their intention to so do within thirty (30) days after receipt of the proof of loss herein required.
There can be no abandonment to Insurers
of any property without the consent
of Insurers.
21.
ASSIGNMENT
Assignment of interest under this policy shall not be made by the Insured
without the written consent of Insurers.
22.
AUTOMATIC REINSTATEMENT
It is a condition
of this Insurance
that the amount of any insured loss shall
be
automatically reinstated for the value of repairs and replacements made as they are made, but such reinstatement shall not exceed the amount of loss or damage paid under this policy. Said reinstatement is made without further
premium charge.
23.
MISREPRESENTATION
AND FRAUD
This
policy shall be void if the Insured
has concealed or misrepresented any material fact or circumstance concerning this insurance or the subject thereof or, in case of any fraud, attempted fraud or false swearing by the Insured, touching any matter relating to this insurance
or the subject
thereof, whether before or after a loss.
24. TERRORIST CLAUSE
Notwithstanding exclusion 7(b), the perils insured
hereunder specifically cover
within the United
States of America, loss or
damage to the subject matter insured
or
expense resulting therefrom caused by or resulting from, or incurred directly or indirectly as a consequence of any act for political
or terrorist purposes of any person or persons, whether or not Agents of a sovereign
power, and whether or not the loss, damage or expenses
resulting therefrom
is accidental or intentional. Coverage provided by this clause is subject to 30 days notice of cancellation by Insurers.
25.
POLLUTION HAZARD
In consideration of the premium charged and subject to the terms and conditions of this policy,
it is understood and agreed that this insurance covers
loss of or damage to the Property Insured directly
caused by any governmental authority acting under the powers vested in them to prevent or mitigate
a pollution hazard or threat thereof, resulting directly from damage to the Property
Insured for which the Insurers are liable under this policy, provided such act of governmental authority has not resulted from want of due diligence
by the Insured, the Owners
or
Managers of the Property Insured
or any of them to prevent
or mitigate such hazard or threats.
26.
CANCELLATION
This
policy may be cancelled by the Insured by mailing
to the Insurers written notice stating when thereafter such cancellation shall be effective. This Policy may be cancelled by the Insurers by mailing
to the Insured at the address shown
in the Policy or last known address written notice stating when, not less than thirty (30) days thereafter, such cancellation shall be effective. The mailing of notice
as
aforesaid shall be sufficient proof of notice and the effective
date of cancellation stated in the notice shall become the end of the policy period.
Delivery of such written notice either by the Insured
or by Insurers shall be equivalent to mailing.
In
the
event, however, of non-payment of premium
on the part of the Insured, the Insurers may cancel by giving 10 days written
notice to the Insured.
If the Insured cancels, earned
premiums shall be computed in accordance with the customary short rate table and procedure. If the Insurers cancel, earned
premiums shall be computed pro rata. Premium
adjustment may be made at the time cancellation
is effected and, if not then made, shall be made as soon as practicable
after
cancellation becomes
effective. The Insurers' cheque
or the cheque of their representatives mailed or delivered as aforesaid shall be sufficient tender of any refund
of premium due to the Insured.
Policy Number : XXX
The Insured : XXX
Period of Insurance : From to
(Both days inclusive at 12.00 noon local
time)
Endorsement Number : 1 (one)
Effective Date :
It is noted and agreed
with effect from the effective
date:
Notwithstanding anything to the contrary
contained in the Policy to which this Endorsement attaches, coverage for War Strikes Sabotage
and Terrorism is excluded absolutely.
Subject otherwise to the Terms Conditions and Exceptions of the Policy.
PT. ...................
Authorized Signature
Signed in Jakarta,
jim
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