Whereas the Insured
named in the Schedule(s) hereto has made to
the Insurers a written proposal which together with any other written
statements being the basis of and incorporated in this Policy, now subject
to the Insured having paid to the Insurers the
premium mentioned in the
Policy and subject
to the terms, exclusions and
conditions contained herein or endorsed hereon, the Insurers will indemnify the Insured in the manner and
to the extent hereinafter provided
against losses caused by the perils insured and described in the terms and
conditions printed, attached and or stated in this Policy.
CHAPTER I
PERILS INSURED
This policy covers loss
of or damage to property and or interest insured directly caused by:
1. FIRE
1.1. in
consequences of negligence or wrongdoing of the Insured or other party, or other unknown cause of fire not excluded
in this Policy,
1.2. in consequences of :
1.2.1. spreading of fire or heat caused by
self-combustion or due to inherent vice;
1.2.2. short-circuit;
1.2.3. fire
spreading from nearby objects provided that such fire is not caused by perils
excluded in this Policy;
including
loss or damage as a consequence of water and or other devices used to fight or
extinguish the fire and or destruction of all or part of the property and or
interest insured ordered by lawful authorities to prevent further spreading of
the fire.
2. LIGHTNING
Damage
directly caused by lightning.
In respect
of electrical machinery, electrical or electronic equipment and electrical
installations, such loss or damage will only be covered hereunder if the lightning ignites fire to such
property.
3. EXPLOSION
arising from property insured in this Policy or other
Policy which is running in conjunction with this Policy for the interest of the
same Insured.
Explosion in this Policy is deemed to mean any sudden
release of energy resulting from the expansion of gases or vapour.
The bursting of a container (boiler, pipe etc.) is
considered as an explosion if the walls of the container are torn open to such
extent that a sudden equilibrium of the pressure inside and outside the
container takes place.
If an
explosion occurs inside a container in consequence of a chemical reaction, any
damage to the container is indemnifiable even if the walls of the container are
not torn open.
Loss or damage caused by implosion is not
covered by this Policy.
Loss of or
damage to combustion engine resulting from the explosion taking place within
the combustion chambers or explosion of any part of electrical switches arising
from gas pressure is not covered.
If explosion
is also covered by more specific policy, the
Insurer shall only indemnify the remaining loss from the amount which should
be payable under such other policy as
if this Policy does not exist.
4. IMPACT OF FALLING AIRCRAFT
Impact of falling aircraft covered under this Policy is any physical
contact of an aircraft including helicopter or any object falling there from
with the property and or interest insured or with the building containing the
property and or interest insured.
5.
SMOKE
arising from the
burning of the property insured in this Policy or other Policy which is running
in conjunction with this Policy for the interest of the same Insured.
CHAPTER II
EXCLUSIONS
1. PERILS EXCLUDED
1.1. This
Policy does not cover any loss of or damage to property and or interest insured
directly or indirectly caused by or as a consequence of :
1.1.1.
theft and or loss during and after the
occurrence of an insured peril;
1.1.2.
willful act of the Insured, his
representatives or other party by the order of the Insured;
1.1.3.
willful act of other party acknowledged by the
Insured, unless it can be proved that it occurs beyond the control of the
Insured;
1.1.4.
willful wrongdoing or negligence by the
Insured or his representatives;
1.1.5.
forest, bush, wild grass and peat fires;
1.1.6.
any kind of explosives;
1.1.7.
nuclear reaction, including but not limited to
nuclear radiation, ionization, fusion, fission or pollution by radioactivity,
regardless of whether such processes occur inside or outside the buildings
where the property and or interest insured is contained;
1.1.8.
earthquake, volcanic eruption and tsunami;
1.1.9.
business interruption of any kind.
1.2.
This Policy
does not cover any loss of or damage to property and or interest insured
directly or indirectly caused by, arising from or as a consequence of the
following perils and or expenses, unless otherwise extended :
1.2.1.
Riots, Strikes, Locked-out Workers, Malicious
Acts, Civil Commotions, Insurrection/Popular Rising, Usurped
Power, Revolution, Rebellion, Military Power, Invasion,
Civil War, War and Hostilities, Subversive Acts, Terrorism,
Sabotage or Looting.
In
any action, suit or other proceedings, where the Insurer alleges that loss or
damage is directly or indirectly caused by one or more of the excluded perils
under this Section, the burden of proof that such loss or damage is covered
shall be upon the Insured;
1.2.2. vehicle
impact, industrial smoke, landslide, flood, inundation, windstorm or tempest.
1.2.3. debris removal expenses.
2. PROPERTY OR INTEREST EXCLUDED
2.1.
Unless
otherwise specifically extended, this Policy does not cover loss of or damage
to property insured which is the cause of :
2.1.1.
spreading of fire or heat caused by
self-combustion or due to inherent vice;
2.1.2.
short circuit occurred on any electrical or
electronic equipment unit, unless used for household purposes whether causing
fire or not
2.2. Unless specifically stated as property and
or interest insured in the Schedule, this Policy does not cover:
2.2.1.
goods held in trust and or on consignment or
on commission;
2.2.2.
motor vehicle, heavy equipment, railway
locomotive, aircraft, watercraft and the like;
2.2.3.
bullion, jewelry, precious stones;
2.2.4.
curiosity or work of art;
2.2.5.
plans, drawings or designs, patterns, models
or moulds and prints;
2.2.6.
effects, bonds, shares or all kinds of
negotiable certificates and documents, stamps and excise stamps, notes and
coins, cheques, business books and computer records;
2.2.7.
computer software, magnetic cards, chips;
2.2.8.
foundation, basement, fence;
2.2.9.
standing timber, growing crops, pets and or
animals;
2.2.10.
landscape, land (including topsoil, backfill,
drainage or culvert), channels, ways, runways, railway lines, dams, reservoirs,
canals, rigs, wells, underground pipelines, underground cables, tunnels,
bridges, docks, piers, wharves, mining property underground, offshore property.
CHAPTER III
DEFINITIONS
Notwithstanding
anything which may be defined in any laws or regulations to the contrary, for
the purpose of this Policy, all terminology printed in underlined italics shall
be defined as follows:
1.
Riots is an act
of a group of at least 12 (twelve) persons, who in the execution of their
common purpose cause public disturbance tumultuously with violence and damage
to the property of others, not amounting to Civil
Commotions.
2.
Strikes is a deliberate act of damage, by a group of workers of at least
12 (twelve) persons or one half of the entire workforce (if the total number of
workforce is less than 24 persons), refusing to work as usual in an attempt to
force the employer to accept their demands or to protest against any terms of
employment enforced by the employer.
3.
Locked-out
Workers
is a deliberate act of damage, by a group of workers of at least 12 (twelve) persons or one half of the entire
workforce (if the total number of workforce is less than twenty-four persons),
to protest against the termination or suspension of a fellow employee by the
employer.
4.
Malicious
Acts
is an act of any person(s) deliberately causing damage to the property of
others driven by
vengeance, hatred , anger or
vandalistic, except such
acts done by the employee(s) of the Insured, or any
person(s) on behalf of the Insured, or by person(s) entrusted by the Insured to
maintain or keep such property, or by thieves/robbers/looters.
5.
Preventive
Acts is an act of any lawfully constituted
authority or body in an attempt to prevent or suppress the occurrence of any
of insured perils or to minimize the
consequences of any such perils.
6.
Civil
Commotions is an act of a large number of people acting together
disrupting public peace and disturbance tumultuously with violence and a chain
of destruction of a large number of properties, indicated by the cessation of
more than one half of the normal activity of commercial/shopping or business
areas or schools or public transportation in one city for at least 24
(twenty-four ) hours consecutively commencing immediately before, during or
after the event.
7.
Insurrection/Popular
Rising
is an uprising of a majority of the people in the capital city of the country,
or in three or more capital cities of the provinces within 12 (twelve) days,
demanding a change in the government de jure or de facto, or open resistance
against the government de jure or de facto,
not amounting to a Rebellion.
8.
Usurped
Power
is a situation where the established order has been overthrown and replaced by
some illegal authority which is in a position to lay down rules of conduct and
also ensure that the rules are obeyed.
9.
Revolution is an
uprising of the people with force to make a radical change to the current
public administration system of the country or to overthrow the established
government de jure or de facto, not amounting to a Rebellion.
10.
Rebellion is a state
of organized resistance against the established authority with the object of
supplanting or overthrowing it with force
using fire arms which threatens the existence of such authority.
11.
Military
Power is an act by a group of home or foreign armed
forces personnel consisting of at least 30 (thirty) persons using force with
the intention to overthrow the established authority or to cause public
disorder and disturbance.
12.
Invasion is an act by the military power of one
country to penetrate or invade the territory of another with the object of
permanently or temporarily occupying and taking control over such territory.
13.
Civil War is an armed conflict between regions or
political factions within the territorial limits of a country with the object
of gaining legitimate power.
14.
War and Hostilities is a widespread armed conflict (whether or not
war has been declared) or a warlike situation between two or more countries,
including military exercises of a country or joint-military exercises between
countries.
15.
Subversive
Acts is an act by any person on behalf of or in
connection with any organization with activities directed towards the overthrow
by force of the government “de jure” or
“de facto”, or to the influencing of it by Terrorism
or Sabotage or violence.
16.
Terrorism is an act
including but not limited to the use of force or violence and or the threat
thereof , of any person or group of persons, whether acting alone or on behalf
of or in connection with any organization or government, committed for
political, religious, ideological or similar purposes including the intention
to influence any government and or to put the public in fear.
17.
Sabotage is a
destructive act against property or the obstruction of work process or causing
the reduction in value of work, by any person in an attempt to achieve a goal
which according to public opinion has a political background.
18.
Looting is the
appropriation of property belonging to another by any person (including those
employed by or under the control of the Insured), with the intention of
permanently depriving that other of it.
CHAPTER IV
CONDITIONS
ARTICLE 1
DUTY
OF DISCLOSURE
1.1.
The Insured is obliged to :
1.1.1.
disclose any material fact, being any
information, description, circumstances and fact which may influence the
Insurer’s decision in accepting or declining an insurance proposal and in
charging a premium rate on it should the proposal be accepted;
1.1.2.
make true statements regarding the matters
relating to insurance contract;
declared
whether at the time of entering into the Insurance contract or during the
insurance period.
1.2.
Should the Insured fail to fulfill his duties
as described in paragraph (1.1.) above, the
Insurer shall not be liable to indemnify any loss and shall be entitled to
terminate this insurance and shall not be liable to refund the premium.
1.3.
Provisions under Paragraph (1.2.) above shall
not be applied in regard to such material fact which is undisclosed or untruly
stated has already been known by the Insurer, but the Insurer does not exercise
his rights to terminate the insurance within 30 (thirty) calendar days after
the Insurer becomes aware of such breach.
ARTICLE 2
PREMIUM
PAYMENT
2.1. Notwithstanding anything to the contrary in the provision of Article 257
of the Commercial Code (Kitab Undang-undang Hukum Dagang) and subject to
provisions as stipulated in item (2.3) below, it is a condition precedent to
liability under this Policy, that any premium due must have been paid to and
actually received in full by the Insurer :
2.1.1. if the period of insurance is 30 (thirty) calendar days or more, payment
of premium must be made within the grace period of 30 (thirty) calendar days
starting from the inception date of the Policy ;
2.1.2. f the period of insurance is less than 30 (thirty) calendar days, payment
of premium must be made within the period of insurance specified in the Policy.
2.2. Premium payment may be made by cash, cheque, giro, transfer or other
means as agreed between the Insurer and the Insured.
The Insurer shall be deemed as having received the
premium payment at the time when :
2.2.1. cash payment is received, or
2.2.2. the said premium is credited into the bank account of the Insurer; or
2.2.3. the Insurer has agreed in writing on the settlement of the said premium.
2.3. In the event of the premium is not paid in the manner and within the time
stipulated above, this Policy shall be
automatically terminated without issuing cancellation endorsement starting
from the expiry of the grace period and the
Insurer shall be discharged from any liability there from. However the
Insured shall remain obliged to pay the time on risk premium for the insurance
period already lapsed amounting to 20% (twenty percent) of the annual premium.
2.4. Should there be any loss covered by this Policy during the grace period
as stated in items (2.1.1.) and (2.1.2.) above, the Insurer shall only be liable for such loss if the Insured pays the
premium within that grace period.
ARTICLE 3
ALTERATION TO RISK
3.1. The Insured is obliged to
notify the Insurer of any circumstances which increases the risks insured under
this Policy, at the latest within 7 (seven) calendar days in case of :
3.1.1. any alteration to the property insured;
3.1.2. any alteration to the location where the insured property is stored;
3.1.3. any alteration to occupation and or construction of part of or whole
building stated in the Schedule;
3.1.4. there are other goods stored in the building stated in the Schedule.
3.2. In respect of the risk alterations mentioned in item (3.1.) above, the
Insurer is entitled to :
3.2.1.
determine that this
insurance be continued at the existing or a higher premium rate, or
3.2.2.
terminate this insurance at once
with a refund premium as stipulated in item (22.2) of article 22
ARTICLE 4
REMOVAL
AND CHANGE OF OWNERSHIP
4.1. This insurance shall not apply
to any insured property which has been
removed to room or floor or location or premises other than those
mentioned in this Policy, unless the Insurer has agreed to such removal
beforehand and stated it in Policy Endorsement.
4.2. In
the event of a change of ownership of the property and or interest insured,
whether on the basis of agreement or due to the death of the Insured, then
notwithstanding the provisions of Article 263 of the Commercial Code (Kitab
Undang-Undang Hukum Dagang), this Insurance shall automatically become void 10 (ten) calendar days after such change of ownership, unless
the Insurer has given his consent in writing
to continue this Insurance.
ARTICLE 5
OBLIGATION OF THE INSURED IN THE EVENT OF LOSS
OR DAMAGE
5.1.
The Insured, upon knowing or when it could be
deemed that the Insured should have known about the occurrence of loss or
damage to the property and or interest insured in this Policy, is obliged to :
5.1.1.
immediately notify it to the Insurer;
5.1.2.
within 7 (seven) calendar days after
notification as stated in paragraph (5.1.1.) above, submit written notice containing circumstances of
loss or damage known to him. Such written notice shall describe any item burnt,
destroyed, lost, damaged and saved as well as the cause of loss or damage
occurred;
5.1.3.
at the latest within 12 (twelve) months from
the occurrence of any loss and or damage, lodge a claim to the Insurer
regarding the amount of loss incurred.
5.2.
Upon the occurrence of the loss or damage, the
Insured is obliged to :
5.2.1.
as far as possible save the property and or
interest insured and allow other party to save such property and or interest;
5.2.2.
safeguard the property and or interest insured
which still has salvage value;
5.2.3.
provide full assistance to the Insurer or
other party appointed by the Insurer to conduct investigation of the loss or
damage occurred.
All rights to indemnification shall be forfeited if the provisions of this article are not
fulfilled by the Insured.
ARTICLE 6
SALVAGE
6.1.
In the event of loss or damage, the Insured
shall be responsible, including to safeguard and keep the salvage, if any.
6.2.
Provisions under paragraph (6.1.) above shall not be meant as an admission of
liability of the Insurer under this Policy.
ARTICLE 7
CLAIM PROCEDURES
In
the event the Insured lodges a claim under this Policy, the Insured is obliged to :
7.1.
complete the claim form provided by the
Insurer and submit it to the Insurer;
7.2.
submit the copy of the Policy and an Official
Report of the incident from the Kepala Desa or Kepala Kelurahan or local Kepala
Kepolisian;
7.3.
submit a detailed and complete report
regarding the circumstances which according to his knowledge have caused the
loss or damage;
7.4.
provide any other relevant information and
evidence, which is reasonably and properly requested by the Insurer.
ARTICLE 8
FRAUDULENT REPORT
The
Insured with the intention of taking benefit from this Policy shall not be entitled to get indemnification if the Insured
deliberately:
8.1.
discloses facts and or makes statements which
are untrue regarding circumstances relating to the proposal submitted at the
time of effecting this Policy and relating to the loss and or damage occurred;
8.2.
exaggerates the amount of loss suffered;
8.3.
hides or does not disclose the value of items
which supposed to be part of the property or interest insured at the time of
the occurrence of loss with the intention to avoid under insurance;
8.4.
declares items which did not exist as being
existent at the time of incident and states such items as had been destroyed;
8.5.
hides saved items or their salvage and
declares those items as had been destroyed;
8.6.
uses any letter or evidence which is fake,
falsehood or deceit.
ARTICLE 9
LOSS
OF MOVABLE ITEMS
9.1. In respect of loss of movable items, the Insured is obliged within 14 (fourteen) calendar days to submit :
9.1.1.
regarding household goods
:
a list containing
detailed type of each and every item and its estimated value immediately before
the loss or damage as well as a list containing the salvage value;
9.1.2. regarding raw materials
and merchandise :
a list containing
estimated value of each and every item immediately before the loss or damage as
well as a list containing the salvage value;
9.1.3. books, administration
records and relevant documents as may be requested by the Insurer; if not
available, invoices, notes, or any
document which can be used to prove the loss;
9.2. General items
9.2.1. In respect of items insured under this Policy described as general
terms, such as “household goods”, “machinery”, “property”, “materials” or “merchandise” hereinafter
meant as household goods, machinery, property,
materials or merchandise which at the time of the loss or damage were at
the place mentioned in this Policy, regardless whether they were there or not
at the time this insurance was effected; subject always to the provisions of
Article 10 of this Policy.
This provision shall
not be applicable to irreplaceable items for which special provisions agreed by
the Insurer and the Insured will be applied.
9.2.2. If the kind of the insured items is specified in this Policy, the
provision under paragraph (9.2.1.) above
will only be applied if those items were existent at the premises at the time
of the loss or damage.
2.
ARTICLE
10
ASSESSMENT OF VALUE IN THE EVENT OF LOSS
Unless otherwise agreed in this Policy :
10.1. The assessment of value shall be
based on the actual value of the property insured immediately before the loss
or damage, by taking into account technical depreciation factor without adding
any profit.
10.2. Goods, materials or merchandise
shall be calculated by its cost price immediately before the loss or damage by
taking into account obsolete factor.
ARTICLE 11
ASSESMENT
AND SETTLEMENT OF CLAIM
11.1. In the event of loss or damage to the property and or interest insured, the Insurer shall be entitled to take their
option to indemnify by:
11.1.1. cash payment;
11.1.2. repair of the damage, where
the amount of loss is equal to the cost
of repair of damage occurred to the same condition as immediately before the
loss or damage;
11.1.3. replacement of the damage, where the
amount of loss is equal to cost of replacement by similar items with the
same condition as immediately before the loss or damage;
11.1.4. reinstatement, where the amount
of loss is equal to cost of reinstatement to the same condition as immediately
before the loss or damage.
The costs mentioned above
are after taking into account technical depreciation factor.
11.2. The liability of the Insurer for loss of or damage to the property
insured shall not exceed the Sum
Insured.
11.3. The extent of loss shall not
exceed the difference between actual value immediately before and
immediately after the loss or damage occurred.
11.4. The value of any salvage shall be taken into account to reduce the amount of loss payable.
ARTICLE 12
UNDER INSURANCE
12.1. If at the
time of the loss or damage caused by perils covered by this Policy, where the
total sum insured is less than actual value of all the property insured
immediately before the loss or damage, then the
Insured shall be considered as being his own insurer for the difference and
shall bear a rateable proportion of the loss accordingly.
12.2. If this
Policy covers more than one item, this
provision shall be applied to each item separately.
These
conditions shall be applied before the application of deductible as stated in
this Policy.
ARTICLE 13
REIMBURSEMENT
13.1. In case of loss, service fees and honoraria for the loss adjuster and
other experts appointed by the Insurer,
shall be borne by the Insurer.
13.2. Reasonable expenses disbursed by the Insured to prevent or reduce loss
or damage in accordance with Article 5 paragraph (5.2.1.) and (5.2.2.) shall be
reimbursed by the Insurer even though such effort was not successful.
ARTICLE
14
OTHER INSURANCE
14.1. At the time of the
attachment of this insurance, the Insured is
obliged to notify the Insurer of any other insurances already effected on
the same property and or interest, if any.
14.2. If subsequent to the attachment of this Insurance, the Insured effected
other insurance on the same property and or interest, it is obliged to be notified to the Insurer.
ARTICLE 15
INDEMNIFICATION OF
MULTIPLE INSURANCES
15.1.
Notwithstanding anything to the contrary in
the provision of article 277 paragraph 1 of the Commercial Code (Kitab
Undang-Undang Hukum Dagang), in the event of loss of or damage to the property
and or interest insured by this Policy, where such property and or interest has
also been insured by one or more other policies and the sum of the total sum
insured under all policies (in force) is higher than the actual value of the
property and or interest immediately before the occurrence of loss, the maximum
amount recoverable under this Policy shall
be reduced proportionately based on the
proportion of the total sum insured of this Policy to the sum of the total
sum insured of all policies (in force), but the premium shall not be reduced or
refunded.
15.2.
The above provision will be put into effect,
even though said insurances are made up of multiple policies effected on
various days, notwithstanding the stipulation of article 277 of the Commercial
Code (Kitab Undang-Undang Hukum Dagang), i.e. if the date of the policy or all
policies precede the date of this Policy and do not contain provision as
stipulated in paragraph (15.1.) above.
15.3.
In the event of loss or damage, the Insured is
obliged to notify in writing of any
other insurance in force covering the same property and or interest at the time
of loss or damage.
Should
the Insured fails to comply with these requirements then his rights to
indemnification shall be forfeited.
ARTICLE 16
SUBROGATION
16.1. In accordance with Article 284 of the Commercial Code (Kitab Undang -
Undang Hukum Dagang), upon payment of indemnity on the property and or interest
insured by this Policy, the Insurer will replace the Insured as regard to any
rights that the Insured has against third party concerning the loss. The right
of subrogation set out above shall be in force automatically without requiring
any Power of attorney from the Insured.
16.2. The Insured remains responsible for any action that could possibly
prejudice the rights of the Insurer against third party.
16.3. The failure of the Insured to carry out his responsibilities under
paragraph (16.2.) above will remove or reduce the rights of the Insured to
indemnification under this Policy.
ARTICLE
17
DEDUCTIBLE
For
each and every loss, the Insured shall bear the amount of the deductible as
stated in the Policy.
In case of under
insurance as stated in Article 12, the calculation of the deductible will be
applied after the calculation of under insurance.
ARTICLE 18
INDEMNIFICATION
The Insurer is obliged to settle the payment of indemnity within 30 (thirty)
calendar days after a written agreement between the Insurer and the Insured has
been reached or after the confirmation on the amount of the indemnity.
ARTICLE 19
REINSTATEMENT OF THE SUM INSURED
After the occurrence of loss of or damage to
property and or interest insured, the Sum
Insured will be reduced by the amount of such loss or damage.
After the reinstatement of the damage, the Insured may request
reinstatement of the Sum Insured by paying additional premium on prorate basis
for the unexpired period of insurance. However, the Insurer has the rights to decline such request.
ARTICLE
20
FORFEITURE
OF RIGHTS TO INDEMNIFICATION
20.1.
The rights of the Insured to indemnification
will be automatically forfeited if
the Insured:
20.1.1.
fails to submit claim according to provisions
of article 5 paragraph (5.1.3);
20.1.2.
fails to file an objection nor request for
settlement by arbitration or other legal proceeding within 6 (six) months from
the time the Insurer declares in writing that the Insured does not have any
rights for indemnification;
20.1.3.
fails to comply with obligations under this
Policy;
20.2.
The rights of the Insured to claim for an
indemnification which is greater than that has been agreed by the Insurer will
be forfeited if within 3 (three) months from the time the Insurer notifies in
writing, the Insured does not submit any written objection or does not take
settlement by arbitration or other legal proceeding.
ARTICLE 21
CURRENCY
In case of premium and
or claim under this Policy is denominated in foreign currency but the payment
will be settled in Rupiah currency, such payment shall be executed based on the
selling rate of Bank Indonesia at the time of payment.
ARTICLE
22
TERMINATION
OF INSURANCE
22.1.
Other than those
stipulated in article 1 paragraph (1.2.), the Insurer and the Insured are
respectively entitled to terminate this Insurance at any time by giving the
reason.
Such notification of termination shall be made in writing by registered
letter by the party who wants the termination to the other party at their
latest known address. The Insurer is released from all liabilities under this
Policy within 5 (five) calendar days from the dispatch date of the
notification.
22.2.
Should there be any
termination of insurance as stated in paragraph (22.1.) above, a refund premium
shall be made on pro rata basis for the unexpired insurance period, after being
deducted by the Insurer’s acquisition cost. However, in case this insurance
terminated by the Insured whereas during the insurance period already lapsed
there be a claim exceeding the premium stated in the Schedule, the Insured shall not be entitled to any refund premium
for the unexpired insurance period.
ARTICLE 23
REFUND OF PREMIUM
The Insured shall not be entitled
to any refund of premium
other than as stipulated in Articles 3, 4 and 22.
ARTICLE
24
DISPUTE
In the event of any
dispute arising between the Insurer and the Insured as consequence of the
interpretation of liability or amount of indemnity of this Policy, the dispute
shall be settled amicably within 60 (sixty) calendar days from the dispute
arose. The dispute arises since the Insured or the Insurer has expressed in
writing his disagreement on the subject matter of the dispute. If the dispute
could not be settled amicably, the Insurer shall give the option to the Insured
to elect either one of the following dispute clauses as stated below, and such
choice could not be withdrawn or revoked. The Insured must notify his choice in writing to the Insurer within 30 (thirty)
calendar days from the disagreement. If the Insured fails to notify his choice
within such period, the Insurer shall have the rights to elect either one of
the following dispute clauses.
A. Settlement of Dispute through Arbitration
Clause
It is hereby
declared and agreed that the Insured and the Insurer shall settle the dispute
through Arbitration Ad Hoc as follows :
1.
The Arbitration Ad Hoc consists of 3 (three)
Arbitrators. The Insured and the Insurer shall each appoint one Arbitrator
within 30 (thirty) calendar days from the date of the receipt of the written
notification, then the two Arbitrators shall choose and appoint the third
Arbitrator within 14 (fourteen) calendar days from the date of appointment of
the second Arbitrator. The third Arbitrator shall act as Umpire of the
Arbitration Ad Hoc.
2.
Should there be any failure as to the
appointment of the third Arbitrator, the Insured and or the Insurer could
request the Chairman of the court (Ketua Pengadilan Negeri) where the defendant
domiciles to appoint the Arbitrators and or the Umpire.
3.
The examination of the dispute shall be
settled within 180 (one hundred and eighty) calendar days from the date of the
formation of the Arbitration Ad Hoc. The period of examination of the case
could be extended. Upon the agreement of both parties and if it is deemed
necessary by the Arbitration Ad Hoc, the period of examination of the dispute
could be extended.
4.
The Arbitration award is final and enforceable
at law and binding the Insured and the Insurer. Should the Insured and or the
Insurer fail to comply with the arbitration award, then the award shall be
executed under the order of the Chairman of the court (Ketua Pengadilan Negeri)
where the defendant domiciles at the request of the other party in dispute.
5.
Other matters which are not provided under
this clause shall be subject to the provisions of laws on arbitration, which
currently be the Act of the Republic of Indonesia Nr. 30 year 1999 dated
B. Settlement of Dispute through Court
Clause
It is hereby declared and agreed that the Insured and the Insurer shall
settle the dispute through the Court (Pengadilan Negeri) where the defendant
domiciles.
ARTICLE 25
CONCLUSION
25.1.
Should there be any
difference in the wordings contained in this Policy and that circulated under a
decree of the Board of Executives of General Insurance Association of Indonesia
to all members of the General Insurance Association of Indonesia (AAUI), the
original of which is filed at the Secretariat of AAUI, then the valid version
shall be the latter.
25.2.
Other matters which may
not be sufficiently stipulated in this Policy shall be subject to the
provisions of the Commercial Code (Kitab Undang-Undang Hukum Dagang) and or prevailing
Laws and Regulations.
(This wording is a translation of the original version in
Bahasa Indonesia; in the event of any dispute arising from the interpretation
of any meaning herein, the terms and conditions shall be interpreted according
to the original Bahasa Indonesia version)
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