General Exclusions
The
Insurers will not indemnify the Insured in respect of loss, damage or liability
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, lock-out, civil
commotion, military or usurped power, a group of malicious persons or person
acting on behalf of or in connection with any political organisation,
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) wilful act or wilful negligence of the Insured or of his representatives;
d)
cessation of work
whether total or partial.
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 insurance the burden of proving that such
loss, destruction, damage or liability is covered shall be upon the Insured.
Period
of Cover
The
liability of the Insurers shall commence, notwithstanding any date to the
contrary specified in the Schedule, directly upon commencement of work or after
the unloading of the items entered in the Schedule at the site. The Insurers'
liability expires for parts of the insured contract works taken over or put
into service.
At
the latest the insurance shall expire on the date specified in the Schedule.
Any extensions of the Period of Insurance are subject to the prior written
consent of the Insurers.
General
Conditions
1. The due
observance and fulfilment of the terms of this Policy in so far 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 and the Section(s) 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 and the Section(s). Any word
or expression to which a specific meaning has been attached in any part of this
Policy or of the Schedule or of the Section(s) 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, damage or
liability 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 insurance be 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 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 inspection by a representative or surveyor
of the Insurers;
d)
furnish all such
information and documentary evidence as the Insurers may require;
e)
inform the police
authorities in case of loss or damage due to theft or burglary.
The Insurers shall not in any case be liable for loss, damage or
liability 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 the repairs or replacement of 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 as adequate under the circumstances
the Insured is entitled to proceed with the repairs or replacement.
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 shall be or would become entitled or subrogated upon their paying
for or making good any loss or damage under this Policy, whether such acts and
things shall be or become necessary or required before or after the lnsured's
indemnification by the Insurers.
7. If any
difference shall arise 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 entering 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.
8 If a claim
is in any respect fraudulent, or if any false declaration is made or used in
support thereof, or if any fraudulent means or devices are used by the Insured
or anyone acting on his behalf to obtain any benefit under this Policy, or if a
claim is made and rejected and no action or suit is commenced within three
months after such rejection or, in case of arbitration taking place as provided
herein, within three months after the Arbitrator or Arbitrators or Umpire have
made their award. all benefit under this Policy shall be forfeited.
9. If at the
time any claim arises under the Policy there be any other insurance covering
the same loss, damage or liability the Insurers shall not be liable to pay or
contribute more than their rateable proportion of any claim for such loss,
damage or liability.
Section I - Material Damage
The
Insurers hereby agree with the Insured that if at any time during the period of
cover the items or any part thereof entered in the Schedule shall suffer any
unforeseen and sudden physical loss or damage from any cause, other than those
specifically excluded, in a manner necessitating repair or replacement, the
Insurers will indemnify the Insured in respect of such loss or damage as
hereinafter provided by payment in cash, replacement or repair (at their own
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 in all the total sum
expressed in the Schedule as insured hereby.
The
Insurers will also reimburse the Insured for the cost of clearance of debris
following upon any event giving rise to a claim under this Policy provided a
separate sum therefor has been entered in the Schedule.
Special Exclusions to Section I
The
Insurers shall not, however, be liable for
a) the
deductible stated in the Schedule to be borne by the Insured in any one occurrence;
b) consequential
loss of any kind or description whatsoever including penalties, losses due to
delay, lack of performance, loss of contract;
c) loss or
damage due to faulty design;
d) the cost of
replacement, repair or rectification of defective material and/or workmanship,
but this exclusion shall be limited to the items immediately affected and shall
not be deemend to exclude loss of or damage to correctly executed items
resulting from an accident due to such defective material and/or workmanship;
e) wear and
tear, corrosion, oxidation, deterioration due to lack of use and normal
atmospheric conditions;
f) mechanical
and/or electrical breakdown or derangement of construction plant, equipment and
construction machinery;
g) loss of or
damage to vehicles licensed for general road use or water borne vessels or
aircraft;
h) loss of or
damage to files, drawings, accounts, bills, currency stamps, deeds, evidences
of debt, notes, securities, cheques;
i) loss or
damage discovered only at the time of taking an inventory.
Provisions Applying to Section I
Memo 1 - Sums Insured :
It is a requirement of this insurance that the sums insured stated in the
Schedule shall not be less than
for item 1 : the full value of
the contract works at the completion of the construction, inclusive of all
materials, wages, freight, customs duties, dues, and materials or items
supplied by the Principal;
for items 2 and 3 : the
replacement value of construction plant, equipment and construction machinery;
which shall mean the cost of replacement of the insured items by new items of
the same kind and same capacity;
and
the Insured undertakes 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 shall take effect only after the same has been recorded on
the Policy by the Insurers.
If,
in the event of loss or damage, it is found that the sums insured are less than
the amounts required to be insured, then 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 object and cost item is subject to
this condition separately.
Memo 2 - Basis of Loss Settlement : In the event of any 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, or
b) in the case
of a total loss - the actual value of the items immediately before the
occurrence of the loss less salvage,
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 will 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 in b) above.
The
cost of any provisional repairs will 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 : Extra charges for overtime, night-work, work on public holidays, express
freight are covered by this insurance only if previously and specially agreed
upon in writing.
Section II -Third Party Liability
The
Insurers will indemnify the Insured up to but not exceeding the amounts
specified in the Schedule against such sums which the Insured shall become
legally liable to pay as damages consequent upon
a)
accidental bodily
injury to or illness of third parties (whether fatal or not)
b)
accidental loss of or
damage to property belonging to third parties
occurring
in direct connection with the construction or erection of the items insured
under Section I and happening on or in the immediate vicinity of the site
during the Period of Cover.
In
respect of a claim for compensation to which the indemnity provided herein
applies, the Insurers will in addition indemnify the Insured against
a)
all costs and
expenses of litigation recovered by any claimant from the Insured, and
b)
all costs and
expenses incurred with the written consent of the Insurers,
provided always that the liability of the Insurers under this section
shall not exceed the limits of indemnity stated in the Schedule.
Special Exclusions to Section II
The
Insurers will not indemnify the Insured in respect of
1. the
deductible stated in the Schedule to be borne by the Insured in any one
occurrence;
2. the
expenditure incurred in doing or redoing or making good or repairing or
replacing anything covered or coverable under Section I of this Policy;
3. damage to
any property or land or building caused by vibration or by the removal or
weakening of support or injury or damage to any person or property occasioned
by or resulting from any such damage (unless especially agreed upon by
endorsements;
4. liability
consequent upon
a) bodily
injury to or illness of employees or workmen of the Contractor(s) or the
Principal(s) or any other firm connected with the project which or part of
which is insured under Section
b) loss of or
damage to property belonging to or held in care, custody or control of the
Contractor(s). the Principal(s) or any other firm connected with the project
which or part of which is insured under Section I, or an employee or workman of
one of the aforesaid;
c) any
accident caused by vehicles licensed for general road use or by waterborne
vessels or aircraft;
d) any
agreement by the Insured to pay any sum by way of indemnity or otherwise unless
such liability would have attached also in the absence of such agreement.
Special Conditions Applying to Section II
1 . No
admission, offer, promise, payment or indemnity shall be made or given by or on
behalf of the Insured without the written consent of the Insurers who shall be
entitled, if they so desire, to take over and conduct in the name of the
Insured the defence or settlement of any claim or to prosecute for their own
benefit in the name of the Insured any claim for indemnity or damages or otherwise
and shall have full discretion in the conduct of any proceedings or in the
settlement of any claim and the Insured shall give all such information and
assistance as the Insurers may require.
2. The
Insurers may so far as any accident is concerned pay to the Insured the limit
of indemnity for any one accident (but deducting therefrom in such case any sum
or sums already paid as compensation in respect thereof) or any lesser sum for
which the claim or claims arising from such accident can be settled and the
Insurers shall thereafter be under no further liability in respect of such
accident under this section.
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