ELECTRONIC EQUIPMENT INSURANCE
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.
This
policy applies whether the insured items are at work or at rest, or being
dismantled for the purpose of cleaning, overhauling or of being shifted within
the premises, or in the course of the aforesaid operations themselves, or
during subsequent re-erection, but in any case only after successful
commissioning.
GENERAL EXCLUSIONS
The
Insurers shall not indemnify the Insured in respect of loss or damage directly
or indirectly caused by, 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 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 or damage
is not covered by this Policy, the burden of proving that such loss,
destruction or damage is covered shall be upon the Insured.
GENERAL CONDITIONS
1.
The due observance
and fulfillment of the terms of this Policy, in so far as they relate to
anything to be done or complied with by the Insured, as 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 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, 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 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 to ensure safe operation of the insured items, 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 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 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 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 of 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.
The
liability of the Insurers under this Policy in respect of any insured item
shall cease if said item is kept in operation after a claim without being
repaired to the satisfaction of the Insurers, or if temporary repairs are
carried out without the Insurers' consent.
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. 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 commended
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.
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 ratable proportion of any claim for such loss or damage.
10. 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 day's notice
to that effect being given to the Insured, in which case the Insurers will be
liable to repay on demand a ratable proportion of the premium for the unexpired
term from the date of cancellation less
any reasonable inspection charges the Insurers may have incurred and less any
long-term discount on premiums granted.
11. Under
an insurance for a third party's account the Beneficiary shall be entitled to
exercise, in his own name, the rights of the Insured. Without obtaining the
Insured's approval the Beneficiary shall further have the right to receive any
indemnity paid under this Policy and to transfer the Insured's rights even if the Beneficiary
is not in possession of this Policy.
Upon payment of an indemnity the Insurers may require evidence of the
Beneficiary having given his consent to
the insurance and of the Insured having given his consent to the receipt of an
indemnity by the Beneficiary.
12.
The indemnity shall
be payable one month after determination by the Insurers of the full amount
due. Notwithstanding the above, the
Insured may, one month after the Insurers have been duly notified of the loss
and have acknowledged their liability, claim as an instalment the minimum
amount payable under the prevailing circumstances. The running of the periods shall be suspended
for the time during which the indemnity is unascertainable or not payable due
to reasons within the Insured's control.
The
Insurers shall be entitled to withhold indemnification
a) if
there are doubts regarding the Insured's right to receive the indemnity,
pending receipt by the Insurers of the necessary proof;
b) if
in connection with the claim an examination by the police or an inquiry under
criminal law has been instituted against the Insured, pending completion of
such examination or inquiry.
SECTION 1 - MATERIAL DAMAGE
Scope of Cover
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 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 the Insurers' 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.
Special Exclusion to Section 1
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; 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 applicable to such items;
b) loss or damage directly or indirectly
caused by or arising out of earthquake, volcanic eruption, tsunami, hurricane,
cyclone or typhoon;
c) loss or damage directly or indirectly
caused by theft ;
d) loss or damage caused by 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;
e) loss or damage directly or indirectly
caused by the failure or interruption of any gas, water or electricity service
or supply;
f) loss or damage as a direct consequence of the continual
influence of operation (e.g. wear and
tear, cavitation, erosion, corrosion, incrustation) or of gradual deterioration
due to atmospheric conditions;
g) any costs incurred in connection with the
elimination of functional failures, unless such failures were caused by an
indemnifiable loss of or damage to the insured items;
h) any costs
incurred in connection with the maintenance of the insured items, such
exclusion also applying to parts exchanged in the course of such maintenance operations;
i) loss or damage for which manufacturer or
supplier of the insured items is responsible either by law or under contract;
j) loss or damage to rented or hired
equipment for which the owner is responsible either by law or under a lease
and/or maintenance agreement;
k) consequential loss or liability of any
kind or description;
l) loss of or damage to bulbs, valves,
tubes, ribbons, fuses, seals, belts, wires, chains, rubber tyres, exchangeable
tools, engraved cylinders, objects made of glass, porcelain or ceramics, sieves
or fabrics, or any operating media (e.g. lubrication oil, fuel, chemicals);
m) aesthetic
defects, such as scratches on painted, polished or enamelled surfaces.
In
respect of the parts mentioned under l)
and m) above, the Insurers shall be liable to provide compensation in the event
that such parts are affected by an indemnifiable loss of or damage to the
insured items.
Provisions Applying to Section 1
Memo 1 - Sum Insured
It
shall be a requirement of this insurance 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 replacement cost including, e.g. freight, customs duties and
dues, if any, and erection costs. If the
sum insured is less than 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 Indemnity
a) In
cases where damage to an insured item can be repaired, the 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, by the value of any salvage
shall be taken into account.
If the costs of repairs as
detailed hereinabove equal or exceed the actual value of the insured items
immediately before the occurrence of the
damage, the 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
costs for ordinary freight, erection, customs duties and dues, if any, to the
extent such expenses have been included in the sum insured, such actual value
to be calculated by deducting proper depreciation from the replacement value of
the item. The Insurers shall also pay
any normal charges for the dismantling of the item destroyed, but the value of
any salvage shall be taken into account.
The destroyed items shall no longer be covered under this Policy, and
all necessary data on the relevant substitute item shall be indicated for its
inclusion in the schedule.
(The
Insurers may agree - by application of the relevant endorsement - to extend
this insurance to cover reimbursement of the full replacement value.)
As
from the date of an indemnifiable occurrence the sum insured shall be reduced
for the remaining period of insurance by the amount of indemnity paid, unless
the sum insured is reinstated.
Any
extra charges incurred for overtime, night work, work on public holidays or
express freight shall be covered by this
insurance only if especially agreed in writing.
The
costs of any alterations, additions, improvements or overhauls shall not be
recoverable under this Policy.
The
costs 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
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.
SECTION 2 - EXTERNAL DATA MEDIA
Scope of Cover
The
Insurers hereby agree with the Insured that if the external data media entered
in the schedule inclusive of the information stored thereon, which can be
directly processed in EDP systems, suffer any material damage indemnifiable
under Section 1 of this Policy, the Insurers will indemnify the Insured, as
hereinafter provided, in respect of such loss or damage up to an amount not
exceeding in any one year of insurance in respect of each of the data media
specified in the schedule the sum set opposite thereto and not exceeding in all
the total sum insured hereby, provided always that such loss or damage occurs
during the period of insurance stated in the schedule or during any subsequent
period for which the Insured pays the Insurers may accept the premium for the renewal of this
Policy. This cover applies while the
insured data media are kept on the premises.
Special Exclusions to Section 2
The
Insurers shall, however, not be liable for
a) the
deductible stated in the schedule to be borne by the Insured in any one
occurrence;
b) any
costs arising from false programming, punching, labelling or inserting,
inadvertent cancelling of information or discarding of data media, and from
loss of information caused by magnetic fields;
c) consequential
loss of any kind or description whatsoever.
Provisions Applying to Section 2
Memo 1 - Sum Insured
It
shall be a requirement of this insurance that the sum insured is the amount
required for restoring the insured external data media by replacing lost or
damaged data media by new material and reproducing lost information.
Memo 2 - Basis of Indemnity
The
Insurers shall indemnify any expenses that can be proved to have been
incurred by the Insured within a period of 12 months as from the date of the
occurrence strictly for the purpose of restoring the insured external data
media to a condition equivalent to that existing prior to the occurrence and
necessary for permitting data processing operations be continued in the normal
manner.
If
it is not necessary to reproduce lost data or information, or if such reproduction is not effected within 12
months after the occurrence, the Insurers shall only be liable to indemnify the
expenses incurred for replacing the lost or damaged data media
themselves by new material.
As
from the date of an indemnifiable occurrence the sum insured shall be reduced
for the remaining period of insurance by the amount of indemnity paid, unless
the sum insured is reinstated.
SECTION 3 - INCREASED COST OF WORKING
Scope of Cover
The
Insurers hereby agree with the Insured that if material damage indemnifiable
under Section 1 of this Policy gives rise to a total or partial interruption of
operation of the EDP equipment entered in the schedule, the Insurers will
indemnify the Insured, as hereinafter provided, for any additional expenditure
incurred for the use of substitute EDP equipment not covered under this Policy
up to an amount not exceeding the agreed indemnification per day and not
exceeding in all the sum insured in any one year of insurance, provided always
that such interruption occurs 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.
Special Exclusions to Section 3
The
Insurers shall, however, not be liable for any additional expenditure incurred
as a result of
a)
restrictions imposed by public
authorities concerning the
reconstruction or operation of the EDP equipment insured;
b) the
necessary funds not being available to the Insured in time for repairing or replacing damaged or
destroyed equipment.
Provisions Applying to Section 3
Memo 1 - Sum Insured
It shall be a
requirement of this insurance that the sum insured stated in the schedule is the amount which
the insured would have to pay as
additional expenditure for 12 months' use of substitute EDP equipment of
similar performance to the EDP equipment insured. The sum insured shall be based on the amounts
agreed per day and per month as specified in the schedule.
The
Insurers shall also reimburse the
Insured for personnel expenses and costs for transportation of materials
following upon any event giving rise to a claim under this section, provided
separate sum therefore have been entered in the schedule.
Memo 2 - Basis of Indemnity
In
the event of failure of the EDP equipment insured the Insurers shall be liable
for the additional expenditure that can be proved to have been incurred for the
period during which the use of substitute EDP equipment is essential, but at
the most for the indemnity period agreed.
The indemnity
period shall commence as soon as the substitute equipment is put into use.
The
Insured shall bear that proportion of each claim which corresponds to the time
excess agreed.
If
it is found following an interruption of the operation of the EDP equipment
insured that the additional expenditure incurred during the period of interruption is higher than the
proportionate share of the annual sum
insured which is applicable to this period, the Insurers shall only be liable
to indemnify the Insured in respect of the proportion of the agreed annual sum
insured which is applicable to the period of interruption, duly taking into
account the indemnity period agreed.
Any
savings in costs shall be taken into account when calculating the indemnity
amount to be paid by the Insurers.
As
from the date of an indemnifiable occurrence the sum insured shall be reduced
for the remaining period of insurance by the amount of indemnity paid, unless
the sum insured is reinstated.
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