INDONESIAN STANDARD EARTHQUAKE POLICY
In consideration of the payment of the premium and on the
basis of written declaration made by the Insured which constitutes an
inseparable part of this Policy and the
current validity of a policy covering the peril of
fire on the same property and/or interests (excluding foundations
excavations and the like) as insured hereunder, the undersigned (hereinafter
called the "Insurer") insures property and/or interests specified in
the Schedule against loss or damage by perils described herein subject to the conditions and stipulations printed
on, attached to, endorsed hereon or
written in this Policy.
Provided always that this insurance shall not be extended
to cover any other perils.
CHAPTER 1
- PERILS INSURED
This Policy covers loss of or damage to the
insured property and/or interests caused by the named perils mentioned hereunder:
1. Earthquake, which for the purpose of this Policy is defined as a
shaking or trembling of the earth due to geological phenomena such as tectonic
movement and volcanic eruptions.
2. Fire and
Explosion following Earthquake, which
for the purpose of this Policy is defined as fire and explosion where the
proximate cause is earthquake.
3. Volcanic
Eruption, which
for the purpose of this Policy is defined as the issuance of molten or hot
rock or steam, gas or liquid from a vent or vents in the earth’s crush.
4. Tsunami, which for the purpose of this Policy is defined as a
great sea wave produced by submarine earth movement such as subduction of
crustal plates or by submarine volcanic eruption.
CHAPTER
II - EXCLUSIONS
1.
This insurance does not cover
loss of or damage to the insured property and/or interest caused by or arising
from or consequent upon the following perils :
1.1
riots, strikes, locked-out
workers, malicious acts, civil commotion , insurrection/popular rising, usurped
power, revolution, rebellion, military power, invasion, civil war, war and
hostilities, subversive acts, terrorism,
sabotage or looting as defined by Asosiasi Asuransi Umum
in
any action suit or other proceedings where the Insurer alleges that by reason of the provision of this Exclusion any
loss or damage is not covered by this
1.2
nuclear reactions including but
not limited to, nuclear radiation, ionization, fusion, fission or pollution by
radioactivity, regardless of whether such processes occur inside or outside the
premises or are controlled or uncontrolled whether such loss be directly or
indirectly, proximately or remotely or
be in whole or part caused by or contributed to or aggravated by
earthquake ;
1.3 impact by vehicle
;
1.4 windstorm and tempest, of any nature whether the same be
caused by or be attributable to any insured peril ;
1.5 flood and inundation. occurring more than 72 (seventy
two) hours after any insured peril ;
2. The
Policy does not cover:
2.1 the amount shown in the Schedule as Insured’s Coinsurance in
claim and the Deductible which shall be
deducted from any claim made hereunder
2.2 consequential loss of any kind whatsoever
2.3 unless otherwise expressly stated in this Policy as
specific sum insured :
2.3.1 removal of debris, cleaning costs ;
2.3.2 goods held in trust or on commission ;
2.3.2 bullion or unset precious stones ;
2.3.4 any curiosity or work of art ;
2.3.5 manuscripts, plans, drawings or designs,
patterns, models or moulds ;
2.3.6 securities, bonds, or documents of any kind,
stamps including duty and customs coined or
paper money, cheques, books of account or other business books and
computer system records ;
2.3.7 foundations, excavations and the like, plant
and machinery, stock, and other contents.
3. Notwithstanding anything contained in
article 291 of the Kitab Undang-Undang Hukum Dagang to the contrary, any loss
occurring as a result of theft following the operation of an insured peril
shall not be covered under this Policy.
CHAPTER
III - CONDITIONS
ARTICLE 1
PAYMENT OF PREMIUMS
1. Notwithstanding the provisions of article 257 of the
Kitab Undang-Undang Hukum Dagang and without prejudice to item 2 hereinafter
set out, it is a condition precedent to liability under this Policy, that any
premium due must be paid to and actually
received in full by the Insurer :
1.1 when the period of insurance is 45 (forty five) calendar
days or more, within 45 (forty five) calendar days from the inception date of
coverage under the Policy ;
1.2 when the period of insurance is less than or equal to 45
(forty five) calendar days, within the period of insurance specified in the
Policy.
2.
2. In the event any of the above mentioned premium is not
paid in the manner and within the time stipulated above, the cover under this
Policy shall be deemed to have terminated from the expiry of the said premium
grace period and the Insurer shall be discharged from all liability therefrom
but without prejudice to any liability incurred before that date and the
Insurer will be entitled to a time on risk premium of 25% (twenty five percent)
of the annual premium.
ARTICLE 2
OTHER INSURANCE
1. Prior to the attachment of this Insurance the Insured
shall give notice to the Insurer of any insurance or insurances already
effected on the property and/or interests.
2. If subsequent to the attachment of this Insurance other
insurance is effected on the same property and/or interests the Insured is
obliged to make full disclosure thereof to the Insurer.
ARTICLE 3
ALTERATION TO RISK
1. If changes or alterations are made to the insured
buildings or to the premises where the insured goods are stored, or goods
wholly or partly used for another purpose or if other goods are stored at the
premises which increases the risks insured under this Policy and the Insured
knows or should have known about this, then the Insured is obliged to notify
the Insurer within 7 (seven) calendar days of such changes or alterations.
2.
Upon the
receipt of such notification the Insurer shall have the right to determine
whether or not this Policy may be continued on the basis of the existing
premium or whether a higher premium should be charged or whether this Policy
should be terminated. In the event of such termination the Insured shall be
entitled to receive a pro-rata refund of premium for the unexpired period of
insurance.
ARTICLE 4
REMOVALS AND CHANGE OF
OWNERSHIP
1. This Insurance shall cease to attach to any items which
have been removed to rooms or
floors or locations or premises
other than those mentioned in this Policy unless the Insurer has agreed to such
removal by written endorsement to this Policy.
2. Notwithstanding the provisions of article 263 of the
Kitab Undang-Undang Hukum Dagang when there is a change of ownership of the
insured property and/or interests, whether on the basis of agreement or due to
the death of the Insured, this
ARTICLE 5
OBLIGATIONS
OF THE INSURED IN THE EVENT
OF LOSS OR
DAMAGE
1. The Insured, upon knowing or when it could be regarded
that he should have known about the occurrence of loss or damage to property or
interests insured by this Policy must :
1.1 immediately inform the Insurer ;
1.2 Within 30 (thirty) calendar days submit a written report
containing all known facts concerning the loss or damage including information
as to the cause or causes of the loss or damage to the best of his knowledge or
assumption; such report should contain in particular an account as may be
reasonably practicable of all the several articles or items of property lost,
damaged or destroyed as well as an account of all insured property which is not
affected by such loss or damage.
2. At the time of the loss or damage the Insured is obliged :
2.1 to the best of his ability, safeguard the insured
property and authorize other people to assist and safeguard the property ;
2.2 to provide full support to the Insurer or his
representative or any other party appointed by the Insurer to conduct an
investigation of the loss or damage ;
2.3 to safeguard all
salvageable property.
All
rights to indemnification under this Policy shall be forfeited if the Insured
fails to comply with the above requirements.
ARTICLE 6
LOSS REPORTING
When
filing a claim under this Policy the Insured must:
1. submit a completed copy of the insurers claim form to
the Insurer ;
2. submit the Policy together with an official report of the
incident from the Kepala Desa or Kepala Kelurahan or the local Kepala
Kepolisian Sector or other competent authority;
3. deliver a detailed report explaining as completely as
possible the circumstances that according to his knowledge have caused the
loss or damage ;
4.
supply any
other information and evidence as may be reasonably requested by the Insurer.
ARTICLE 7
INDEMNITY
1. In the event of loss or damage to the insured property
and/or interests, the maximum liability of the Insurer shall be limited to the
Sum Insured.
2. The basis of calculation of the indemnity shall be a
comparison of the value prior to and the value immediately after the loss or
damage.
3. The value of any salvage shall be taken into account in
calculating the indemnity.
ARTICLE 8
LOSS OF OR
DAMAGE TO MOVABLE ITEMS
1. In the event of loss or damage to movable items, the
Insured is obliged as soon as
practicable to:
1.1 for furniture
and/or household goods : prepare and submit a list containing the type of each
and every item and estimated values immediately prior to the loss or damage as
well as a list containing the salvage values ;
1.2 for raw materials and merchandise : prepare and submit a
list containing estimated values of each and every item immediately prior to
the loss or damage as well as a list containing the salvage values ;
1.3 submit books and relevant documents as may be requested
by the Insurer or if not available, invoices, notes, or any document that can
be used as proof of the loss or damage ;
2. 2.1. If the insured object is described by the
general terms general terms of
“furniture and household goods”, “machinery” or “goods , wares and
merchandise”, such furniture and
household goods, machinery or goods, wares and merchandise which are at the time of the loss
or damage at the place mentioned in this
Policy will be covered by this
Insurance, whether they were there at the time the Insurance was affected or not
; subject always to the provisions of
Article 10 of this Policy.
2.2 If the kind of each of the insured items is
specified, the previous paragraph will only be valid when those items are
present at the premises at the time of the loss or damage.
The preceding provisions shall not apply to
objects which owing to their description in this Policy or the valuation in
this Policy are to be considered as irreplaceable.
ARTICLE 9
INDEMNIFICATION OF MULTIPLE INSURANCE
1. Notwithstanding anything contained to the contrary in the
provisions of Article 277 section 1 of the Kitab Undang-Undang Hukum
Dagang, in the event of loss or damage
to property or interests insured by this Policy where such property or
interests are also insured by any other policy or policies and the total sum
insured under all policies exceeds the actual value of the property or
interests, the Sum Insured under this Policy will be reduced in proportion to
the total sum insured against the actual value of the property or interests and
the Insured shall not be entitled to a reduction or refund of premium.
2. The provisions of paragraph 1 above shall apply,
notwithstanding other insurances are affected under one or more policies on
different dates, and without prejudice to the provisions of Article 277 of the
Kitab Undang-undang Hukum Dagang, in the
event of the dates of any or all of the above-mentioned insurances proceeded
the date of this Policy and do not contain a similar provision.
3. In the event of loss or damage the Insured is obliged at
the request of the Insurer to submit a written declaration of any other insurance
covering the same property or interests at the time of the occurrence of loss
or damage. Should the insured fail to provide such a declaration then he shall
forfeit his right to indemnification.
The application of this condition shall apply prior to the
application of Exclusion 2.1.
ARTICLE 10
UNDER INSURANCE
If
the property or interests hereby insured shall at the time of the loss or
damage be collectively of greater value than the Sum Insured thereon then the
Insured shall be considered as being his own insurer for the difference and
shall bear a rate able proportion of the loss accordingly. Every item, if more
than one, of this Policy shall be separately subject to this condition.
ARTICLE 11
FRAUDULENT REPORT
If the Insured with the intention of taking benefit from
the cover afforded by this policy, deliberately:
1. increases the amount of the loss allegedly suffered ;
2. includes items that did not exist at the time of loss or
damage and declares the same as being destroyed ;
3. retains items or part of the salvageable items and
reports those items had been destroyed ;
4. uses false documents/evidence, makes fraudulent
statements to support his claim ;
5. causes or instructs
others to cause loss or damage covered under this policy ;
6. by serious mistake or negligence beyond reason damages or
destroys or gives order to damage or destroy or causes damage or destruction ;
then he
shall lose the right for indemnification.
ARTICLE 12
ASSESSMENT OF VALUE IN THE EVENT
OF A CLAIM
1. The estimated value shall be based on the real value of
the property insured at the time of loss or damage without adding any profit.
2. In the assessment of the value of buildings no account
shall be taken of their location or occupation.
3. Goods, materials and merchandise will be assessed on the
basis of their cost price immediately prior to the occurrence of the loss or
damage.
ARTICLE 13
72 HOURS
CLAUSE
1. Each loss by any insured perils shall constitute a single
claim hereunder, provided that if more
than one event shall occur within a period of 72 (seventy two) hours during the
term of this Policy, such event shall be deemed to be a single event within the
meaning hereof.
2. The Insurer shall not be liable for any loss caused by
any insured perils occurring before the effective date and time of this Policy,
nor for any loss occurring after the expiry date and time of this Policy.
ARTICLE 14
REIMBURSEMENT
1. In case of loss, service fees and honoraria for the
assessors and other experts who are appointed by the Insurer, will be paid by
the Insurer.
2. Reasonable expenses incurred to prevent or reduce losses,
whether successful or not, disbursed by the Insured in accordance with
Condition Article 5 paragraph 2 and Condition Article 15 paragraph 2 shall be
reimbursed by the Insurer.
ARTICLE
15
SALVAGE
1. In the event of loss or damage, the salvage, if any, is
the responsibility of the Insured.
2. The Insurer is entitled to request the Insured to store
all or part of the salvage.
3. It is stipulated that any action on the part of the
Insurer including a request to store the salvage as mentioned above can by no
means be considered as an acknowledgment of any responsibility whatsoever.
ARTICLE 16
INDEMNIFICATION
The Insurer is obliged to pay the Indemnity
within 30 (thirty) calendar days after an agreement on the amount of the
indemnity has been reached.
ARTICLE 17
SUBROGATION
1. In accordance with Article 284 of the Kitab Undang -
Undang Hukum Dagang upon payment of
Indemnity on the property and/or interests insured by this Policy, the Insurer
will replace the Insured as regard any rights that he has against third party
concerning the loss. The Insurer’s right of subrogation set out above shall
operate automatically without the need for written approval from the Insured.
2. The Insured remains responsible for any action that could
possibly affect the rights of the Insurer against third party.
3. The failure of the Insured to carry out his
responsibilities under paragraph 2 above will reduce or remove the right to
Indemnification under this Policy.
ARTICLE 18
REINSTATEMENT OF THE SUM INSURED
In the event of loss or damage to insured property and/or
interests, the amount of the loss or damage will be deducted from the Sum
Insured.
After restoration of the damage the Insured may request
reinstatement of the Sum Insured by paying additional premium on pro rata
basis, however agreement to such reinstatement is solely at the option of the
Insurer.
ARTICLE 19
FORFEITURE OF RIGHT TO
INDEMNIFICATION
1. The right of the Insured to Indemnification
for loss or damage will be automatically forfeited :
1.1 if the Insured
fails to follow his obligations as stated within this Policy ;
1.2 if no claim
has been submitted within 12 (twelve) calendar months from the date of
occurrence of the loss or damage ;
1.3 if no protest
or request for settlement by arbitration or other legal effort is made by the
Insured within a period of 6 (six) calendar months from the date of receipt of
a written repudiation of liability from the Insurer, either the first and/or
the latest notice.
2. The right of
the Insured for Indemnification greater than agreed by the Insurer will be lost
if the Insured takes no action or makes no response within a period of 3
(three) calendar months from the receipt of such written offer from the
Insurer.
ARTICLE 20
TERMINATION OF THE INSURANCE
1. Both the Insured and the Insurer are entitled to
terminate this Insurance at any time without giving reason therefor. Such
termination shall be effected by registered letter to the last recorded address
of the party concerned. The Insurer is relieved from all liability under this
Policy 7 (seven) calendar days from the date of dispatch of the registered
letter effective
2. In the event the Insurer terminates this Insurance, he is
obliged to return prorata premium for the unexpired period of insurance.
3. In the event the Insured terminates this Insurance,
premium will be calculated on the short term rate laid down in the current
Earthquake Insurance Tariff of Indonesia for the completed period of insurance.
ARTICLE 21
RETURN OF
PREMIUM
The Insured shall have no right to any return of premium
except as described in Conditions Article 3, 4 and 20.
ARTICLE 22
DISPUTES
In the event of any dispute arising between the Insurer and the
Insured in respect of the implementation and/or interpretation of this Policy,
the dispute shall be settled amicably within 60 (sixty) calendar days since the
dispute arises. 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, the Insurer shall give the option to the
Insured to elect either one of the following dispute clauses to settle the
dispute and such choice could not be revoked.
The Insured must notify his choice to the Insurer by registered letter,
telegrams, telex, facsimile, e-mail or by courier.
Settlement
of Dispute (Arbitration) Clause
It is hereby noted agreed that the Insured and the
Insurer shall settle the dispute through Arbitration Ad Hoc as follows :
1. The Arbitration Ad Hoc consists of three arbitrators. The
Insured and the Insurer each shall appoint an arbitrator within 30 (thirty)
calendar days from the date of receipt of the written notification, then the
two arbitrators shall appoint the third arbitrator within 14 ( fourteen)
calendar days from the date of appoint of the second arbitrator. The third
arbitrator shall as umpire of the Arbitration Ad Hoc.
2. Should there be any disagreement as to the appointment of
arbitrator (s) and or the two arbitrators fail to appoint the third arbitrator,
then the Insured and or the Insurer could request the Competent Ketua
Pengadilan Negeri to appoint the arbitrator (s) and or the umpire.
3. The arbitrators shall examine the case and make an award
within 180 (one hundred and eighty) days form the date of the formation of the
Arbitration Ad Hoc. The period of examination of the case could be
extended upon the consent of both
parties and if it is deemed necessary by the Arbitration Ad Hoc.
4. The Arbitration award is final, binding and enforceable
for both parties, the Insured and the Insurer. Should the Insured and or the
Insurer fail to comply with the arbitration award,
then at the request
of the other party, the award shall be executed under the order of the Competent Ketua Pengadilan Negeri.
5. Matters which are not
provided and or not sufficiently
provided under this clause shall be subject to the provisions of the Act of the Republic Indonesia Nr. 30 dated
Settlement
of Dispute (Court of Law) Clause
It is hereby noted and agreed that the Insured and the
Insurer shall settle the dispute through Indonesian Court of Law where the
defendant resides.
ARTICLE 23
CONCLUSION
1. Should there be a difference in the wording contained in
this Policy and that circulated by the Board of Asosiasi Asuransi Umum
2. Matters which may not be sufficiently provided for in
this Policy shall be subject to the provisions of the Kitab Undang-Undang Hukum
Dagang.
3. It is noted and and agreed that in the event of any
difference in opinion arising from the interpretation of policy coverage in
respect of original policies which have been issued in English, then all terms
and conditions shall be interpreted according to the original Bahasa Indonesia
Version.
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