Civil Engineering Completed
Risks Insurance Policy
Whereas
the Insured named in the schedule hereto has made to the (hereinafter called
“the Insurers”) a written proposal by completing a questionnaire which,
together with any other statements made in writing by the Insured for the
purpose of this Policy, is deemed to being corporate herein,
Now
this Policy of insurance witnesses that, subject to the Insured having paid to
the Insurers the premium mentioned in the schedule and subject to the terms,
exclusions, provisions and conditions contained herein or endorsed hereon, the
Insurers will indemnify the Insured in the manner and to the extent hereinafter
provided.
The
Insurers hereby agree with the Insured that if the items or any part thereof
entered in the schedule suffer any unforeseen and sudden physical loss or
damage caused by
a.
fire,
lightning, explosion, impact of land borne or waterborne vehicles,
b.
impact
of aircraft and other aerial devices or articles dropped therefrom,
c.
earthquake,
volcanism, tsunami,
d.
storm
(air movements stronger than grade 8 on the Beaufort Scale),
e.
flood
or inundation, wave action or water,
f.
subsidence,
landslide, rockslide or any other earth movement,
g.
frost,
avalanche, ice,
h.
vandalism
of single persons,
in a
manner necessitating repair or replacement and occurring at any
time during the period of insurance stated in the schedule or during
any subsequent period for which the Insured pays and the Insurers may accept
the premium for the renewal of this Policy, the Insurers will indemnify the
Insured for such loss or damage by payment in cash, replacement or repair (at
the Insurers’ option) up to an amount not exceeding in respect of each of the
items specified in the schedule the sum set opposite thereto and not exceeding
in any one event the limit of indemnity, where applicable, and not exceeding
Exclusions
The
insurers shall not indemnify the Insured in respect of
1 the deductible stated in the schedule
to be borne by the Insured in any one event;
2 loss or damage directly or indirectly
caused by, or arising out of, or aggravated By
a war, invasion, act of foreign enemy, hostilities
(whether war be declared or not), civil war, rebellion, revolution,
insurrection, mutiny, riot, strike, lockout, civil commotion, military or
usurped power, a group of malicious persons or persons acting on behalf of or
in connection with any political organization, conspiracy, confiscation,
commandeering, requisition or destruction or damage by order of any government
de jure or de facto or by any public authority;
b nuclear
reaction, nuclear radiation or radioactive contamination;
c willful act or
willful negligence of the Insured or his representatives;
in any action, suit or other
proceeding where the Insurers allege that, by reason of the
provisions of Exclusion a above, any loss, destruction, damage or liability is
not covered by this Policy, the burden of proving that such loss,
destruction, damage or liability is covered shall be upon the
Insured;
3 loss or damage or expense
caused by, or arising out of, or substantially aggravated by
inherent defects, wear and tear, gradual deterioration, expansion or
contraction of insured items due to changes of temperature;
4 loss or damage caused by, or
arising out of, or aggravated by failure of the Insured to keep and
maintain the insured items in a thorough state of repair;
5 consequential loss or damage of any
kind or description.
General
Conditions
1 The due observance and fulfillment of
the terms of this Policy, insofar as they relate to anything to be done or
complied with by the Insured, and the truth of the statements and answers in
the questionnaire and proposal made by the Insured shall be a condition
precedent to any liability of the Insurers.
2 The schedule shall be deemed to be
incorporated in and form part of this Policy and the expression “this Policy”,
wherever used in this contract, shall be read as including the schedule. Any
word or expression to which a specific meaning has been attached in any part of
this Policy or of the schedule shall bear such meaning wherever it may appear.
3 The Insured shall at his own expense
take all reasonable precautions and comply with all reasonable recommendations of
the insurers to prevent loss or damage and comply with statutory requirements
and manufacturers’ recommendations.
4 a
Representatives of the Insurers shall at any reasonable time have the right to
inspect and examine the risk and the Insured shall provide the representatives
of the Insurers with all details and information necessary for the assessment
of the risk.
b The Insured shall immediately notify
the Insurers by telegram and in writing of any material change in the risk
and cause at his own expense such additional precautions
to be taken as circumstances may require, and the scope of cover
and/or premium shall, if necessary, be adjusted accordingly. No material alteration
shall be made or admitted by the Insured whereby the risk is increased, unless
the continuance of the cover provided under this Policy is confirmed
in writing by the Insurers.
5 In the event of any occurrence which
might give rise to a claim under this
Policy, the Insured shall
a immediately notify the Insurers by
telephone or telegram as well as in writing, giving an indication as to the
nature and extent of the loss or damage;
b take all steps
within his power to minimize the extent of the loss or damage;
c preserve the parts affected and
make them available for inspections by a representative or surveyor
of the Insurers;
d furnish all
such information and documentary evidence as the
Insurers may require.
The Insurers shall on no account
be liable for loss or damage of which no notice has been received by the
Insurers within 14 days of its occurrence.
Upon notification being given to
the Insurers under this condition, the Insured may carry out repairs of or make
good any minor damage; in all other cases a representative of the Insurers
shall have the opportunity of inspecting the loss or damage before any repairs
or alterations are effected.
If a representative of the
Insurers 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 repairs or replacement.
Nothing contained herein shall
prevent the Insured from taking such steps as are absolutely
necessary for the upkeep of operations.
The liability of the Insurers
under this Policy in respect of any item sustaining damage shall cease if said
item is not repaired properly without delay.
6 The Insured shall at the expense of
the Insurers do and concur in doing and permit to be done all such acts and things
as may be necessary or required by the Insurers in the interest of
any rights or remedies, or of obtaining relief or indemnity from parties (other
than those insured under this Policy) to which the Insurers are or would become
entitled or which is or would be subrogated to them upon their
paying for or making good any loss or damage under this Policy, whether such
acts and things are or become necessary or required before or after the
Insured’s indemnification by the Insurers.
7 a If
the proposal or declaration of the Insured is untrue in any material respect,
or if any claim made is fraudulent or substantially exaggerated, or if
any false declaration or statement is made in support
thereof, then this Policy shall be void and the Insurers shall not
be liable to make any payment hereunder.
b In the event of the Insurers
disclaiming liability in respect of any claim and if an action or
suit is not commenced within six months after such disclaimer or, in the case
of arbitration taking place in pursuance of Condition 9 of this
Policy), within three months after the arbitrators or umpire have made their
award, all benefit under this Policy in respect of such claim shall be
forfeited.
8 This Policy may be terminated at the
request of the Insured at any time, in which case the Insurers will retain the customary
short-period rate for the time this Policy has been in force. This
Policy may equally be terminated at the option of the Insurers by
seven days’ notice to that effect being given to the Insured, in
which case the Insurers shall be liable to repay on demand a rate able
proportion of the premium for the unexpired term from the date of cancellationless
any reasonable inspection charges the Insurers may have incurred.
9 If any difference arises as to the
amount to be paid under this Policy (liability being otherwise admitted), such difference
shall be referred to the decision of an arbitrator to be appointed in writing
by the parties in difference or, if they cannot agree upon a single arbitrator,
to the decision of two arbitrators, one to be appointed in writing by each of
the parties within one calendar month after having been required in writing so
to do by either of the parties, or, in case the arbitrators do not agree, of an
umpire to be appointed in writing by the arbitrators before the latter enter upon
the reference. The umpire shall sit with the arbitrators and preside
at their meetings. The making of an award shall be a condition precedent to any
right of action against the Insurers.
10 If at the time any claim arises under
this Policy there is any other insurance covering the same loss, damage or liability,
the Insurers shall not be liable to pay or contribute more than their rate able
proportion of any claim for such loss, damage or liability.
Provisions
Memo
1 - Sum insured
It
shall be a requirement of this Policy that the sums insured stated in the
schedule are not less than the cost of replacement of the insured items by new
items of the same kind and capacity, inclusive of all materials, wages, freight,
customs duties and dues.
The
Insured shall undertake to increase or decrease the amounts of insurance in the
event of any material fluctuation in wages or prices, provided always that such
increase or decrease takes effect only after the same has been recorded in this
Policy by the Insurers.
If in
the event of loss or damage it is found that the sums insured are less than the
amount required to be insured, the amount recoverable by the Insured under this
Policy shall be reduced in such proportion as the sums insured bear to the amounts
required to be insured. Every item entered in the schedule shall be subject to
this condition separately.
Memo
2 - Basis of loss settlement
In
the event of loss or damage the basis of any settlement under
this Policy shall be a in the case of damage which can be
repaired - the cost of repairs necessary to restore the items to their
condition immediately before the occurrence of the damage less salvage
(excluding the cost of clearance of
debris),
b in the case of a total loss
- the replacement costs of the insured
items if the loss occurs within the period stated in the schedule,
- the actual value of the items
immediately before the occurrence of the loss less salvage, such actual value
to be calculated by deducting proper depreciation from the replacement
value of the items, however, only to the extent the costs claimed had to
be borne by the Insured and to the extent they are included in the sums insured
and provided always that the provisions and conditions have been complied
with.
The
Insurers shall make payments only after being satisfied by production of the
necessary bills and documents that the repairs have been effected or
replacement has taken place, as the case may be. All damage which can be
repaired shall be repaired, but if the cost of repairing any
damage equals or exceeds the value of the items immediately before
the occurrence of the damage, the settlement shall be made on the basis provided
for under b above.
The
Insurers shall also reimburse the Insured for the cost of clearance of debris
following upon any event giving rise to a claim under this Policy in accordance
with Memo 3, provided a separate sum therefor has been entered in the schedule.
The
cost of any provisional repairs shall be borne by the Insurers if such repairs
constitute part of the final repairs and do not increase the total repair
expenses. The cost of any alterations, additions and/or improvements shall
not be recoverable under this Policy.
Memo
3 - Extension of cover
In
consideration of the Insured having paid the additional premium agreed upon
with the Insurers, indemnification for loss or damage otherwise covered under
this Policy shall be extended to include the cost of clearance of debris
forming part of the insured items including the cost of removal or demolition
of any portion of the insured items no longer useful for the purpose for which
it was intended, but only if a valid law or ordinance requires the
Insured to effect such removal or demolition and only up to an
amount not exceeding in any one event the limit of indemnity specified therefor
in the schedule.
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