Contractors' Plant and Machinery
Policy No.
Whereas
the Insured
named in the Schedule hereto has made the
PT.
MNC ASURANSI
(hereinafter called
"the insurers") a written proposal by completing a questionnaire
which, together with any other statement made in writing by the Insured for the
purpose of this Policy, is deemed to be incorporated 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, conditions and provisions contained herein or endorsed
hereon,
The
Insurers hereby agree with the Insured that if 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 items (or any part thereof) entered in the
Schedule, whilst at the location or in the geographical area mentioned therein,
suffer any unforeseen and sudden physical loss or damage from any cause not
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 any one year of insurance in respect
of each of the items specified in the Schedule the sum set opposite thereto and
not exceeding in all the total sum expressed in the Schedule as insured hereby.
This policy shall apply
whether the insured items are at work or at rest, or being dismantled for the
purpose of cleaning or overhauling, or in the course of the aforesaid
operations themselves, or in the course of subsequent re-erection, but in any
case only after successful commissioning.
E
X C L U S I O N S
The Insurers shall not
be liable for
a)
the deductible stated in the
Schedule to be borne by the Insured in any one occurrence; if more than one
item is lost or damaged in one occurrence, the Insured shall not, however, be
called upon to bear more than the highest single deductible to such items;
b) loss or damage due to electrical or
mechanical breakdown, failure, breakage or derangement, freezing of coolant or
other fluid, defective lubrication or lack of oil or coolant, but if as a
consequence of such breakdown or derangement an accident occurs causing
external damage, such consequential damage shall be indemnifiable.
c) loss of or damage to replaceable
parts and attachments such as bits, drills, knives or other cutting edges, saw
blades, dies, moulds, patterns, pulverising and crushing surfaces, screens and
sieves, ropes, belts, chains, elevator and conveyor bands, batteries, tyres,
connecting wires and cables, flexible pipes, jointing and packing material
regularly replaced;
d) loss or damage due to explosion of
any boiler or pressure vessel subject to internal steam or fluid pressure or of
any internal steam or fluid pressure or of any internal combustion engine;
e) loss of or damage to vehicles
designed and licensed for general road use unless these vehicles are
exclusively used on construction sites;
f) loss of or damage to waterborne
vessels or craft;
g) loss or damage due to total or
partial immersion in tidal waters;
h) loss or damage whilst in transit
unless otherwise agreed by endorsement;
i) loss or damage as a direct
consequence of the continual influence of operation (e.g. wear and tear,
corrosion, rust, deterioration due to lack of use and normal atmospheric
conditions);
k) loss or damage occurring whilst any
insured item is undergoing a test of any kind or is being used in any manner or
for any purpose other than that for which it was designed;
l) loss of or damage to plant and/or
machinery working underground unless otherwise agreed by endorsement;
m) loss or damage directly or indirectly
caused by, or arising out of, or aggravated by 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 persons 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;
n) loss or damage directly or indirectly
caused by, or arising out of, or aggravated by nuclear reaction, nuclear
radiation or radioactive contamination;
o) loss or damage due to any faults or
defects existing at the time of commencement of this Policy within the
knowledge of the Insured or his representatives, whether such faults or defects
were known to the Insurers or not;
p) loss or damage directly or indirectly
caused by, or arising out of, or aggravated by the wilful act or wilful
negligence of the Insured or his representatives;
q) loss or damage for which the supplier
or manufacturer is responsible either by law or under contract;
r) consequential loss or liability of
any kind or description;
s) loss or damage discovered only at the
time of taking an inventory or during routine servicing.
In any
action, suit or other proceeding where the Insurers allege that by reason of
the provisions of exclusions m) - q) above any loss, destruction or damage is
not covered by this Policy, the onus of proving that such loss, destruction or
damage is covered shall be upon the Insured.
C O N D I T I O N S
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 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 he 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 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 reasonable steps within
his power to minimise 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
the case of loss or damage due to theft or burglary.
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 any minor damage or replace items which have sustained 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 adequate 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 at the respective
construction site.
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
right or remedies, or of abstaining 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. 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.
8. 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 three months after such disclaimer or (in the case of
arbitration taking place in pursuance of Condition 7 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.
9. 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 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 will be liable to repay on demand a
rateable proportion of the premium for the unexpired term from the date of
cancellation less any reasonable inspection charges the Insurers may have
incurred.
10. If at the time any claim arises under
this Policy there is any other insurance covering the same loss or damage, the
Insurers shall not be liable to pay or contribute more than their rateable
proportion of any claim for such loss or damage.
P R O V I S I O N S
Memo 1 - Sum Insured
It shall be a
requirement of this Policy that the sum insured is equal to the cost of
replacement of the insured items by new items of the same kind and capacity,
which means their cost of replacement including, e.g., freight, customs duties
and dues, if any, and cost of erection.
If the sum insured is
less that the amount required to be insured, the Insurers shall pay only in
such proportion as the sum insured bears to the amount required to be insured.
Every item if more than one shall be 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 as
follows:
a) In cases where damage to an insured
item can be repaired -item Insurers shall pay expenses necessarily incurred to
restore the damaged item to its former state of serviceability plus the cost of
dismantling and re-erection incurred for the purpose of effecting the repairs
as well as ordinary freight to and from a repair-shop, customs duties and dues,
if any, to the extent such expenses have been included in the sum insured. If
the repairs are executed at a workshop owned by the Insured, the Insurers shall
pay the cost of materials and wages incurred for the purpose of the repairs
plus a reasonable percentage to cover overhead charges.
No deduction
shall be made for depreciation in respect of parts replaced, but the value of
any salvage shall be taken into account.
If the cost of repairs as detailed hereinabove equals or
exceeds the actual value of the insured item immediately before the occurrence
of the damage, the item shall be regarded as destroyed and settlement shall be
made on the basis provided for in b) below.
b) In cases where an insured item is
destroyed‑ the Insurers shall pay the actual value of the item immediately
before the occurrence of the loss, including charges for ordinary freight, cost
of erection, customs duties, if any, provided such expenses have been included
in the sum insured, such actual value to be calculated be deducting proper
depreciation from the replacement value of the item. The value of any salvage
shall be taken into account.
Any extra
charges incurred for overtime, night work, work on public holidays, and express
freight shall be covered by this Policy only if especially agreed in writing.
The cost of
any alterations, additions, improvements or overhauls shall not be recoverable
under this Policy.
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 cost of
repair.
The amount
payable by the Insurers according to the above‑ mentioned provisions shall be
reduced by the deductible stated in the Schedule.
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.
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