ATTENTION :
To avoid misinterpretation, the assured must read
carefully the condition of this policy.
Erection All Risks Policy
Policy # H.80
XXX
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 be incorporated herein,
Now this Policy of
Insurance witnesseth 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.
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 and shall continue until immediately after taking over or
after the first test operation or test loading is completed whatever is the
earlier, but not beyond four weeks (unless otherwise agreed in writing from the
date of commencement of the test. If, however, a part of a plant or one or
several machine(s) is/are tested and/or put into operation or taken over, the
cover for that particular part of the plant or machine(s) and any liability
resulting therefrom ceases whereas the cover continues for the remaining parts.
In the case of second-hand items, the insurance
hereunder shall, however, cease immediately on the commencement of the test.
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 terse 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 Policy No.
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 therefore 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, defective material or casting, bad
workmanship other than faults in erection;
d)
wear and tear, corrosion, oxidation, incrustation;
e)
loss of or damage to files, drawings, accounts, bills, currency, stamps,
deeds, evidences of debt, notes, securities, cheques, packing materials such as
cases, boxes, crates;
f)
loss 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 (under items 1 and 2) shall not be less than the
full value of each item at the completion of the erection, inclusive of
freight, customs duties, dues, erection cost, and the insured undertakes to
increase or decrease the amounts of insurance in the event of any material
fluctuation in the level of 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, nightwork, work on public holidays, express freight are covered
by this insurance only if previously and specially agreed upon in writing.
Memo 4 - Surrounding
Property : Loss of or
damage to property located on or adjacent to the site and belonging to or held
in care, custody or control of the Principals(s) or the Contractor(s) shall
only be covered if occurring in direct connection with the erection,
construction or testing of the items insured under Section I and happening
during the Period of Cover, and provided that a separate sum therefor has been
entered in the Schedule under Section I, item 4. This cover does not apply to
construction/erection machinery and construction/erection plant and equipment.
Section II -Third
Party Liability Policy No.
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 erection,
construction or testing 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.
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 I, or members
of their families;
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
in ability in respect of such accident under this section.
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