AVN 47 1.10.96 NOISE COVERAGE POLICY

 

AVN 47  1.10.96 NOISE COVERAGE POLICY

 

WE, the Insurers, agree with the Insured named in the Schedule hereto, in consideration of the payment of the premium, and in reliance upon the statements in the Schedule hereto:-

 

1.	Subject to the terms, conditions, exclusions and limits hereof Insurers will indemnify the Insured in respect of all sums which the Insured shall become legally liable to pay as compensation (including costs awarded against the Insured) in respect of accidental bodily injury (fatal or non-fatal) or accidental physical damage to or destruction of property (including animals) caused by the Noise of an identified Aircraft as specified in the Schedule hereto.					Coverage
As used herein:
	‘‘Noise’’ includes vibration, sonic boom and any phenomena associated therewith.
2. (a)	Insurers shall not be required to defend claims made against the Insured but may at their own Option and expense (in addition to any amounts paid in accordance with Paragraph 1) investigate, defend, compromise and settle in the name of and on behalf of the Insured any claims covered by Paragraph 1 and, to the extent hereby provided, may also act as aforesaid in relation to any uninsured claims when combined with any claims covered by Paragraph 1. Notwithstanding any exercise of their Option as aforesaid, Insurers shall only be responsible for that part of any sums paid as compensation which is in accordance with Paragraph 1.					Insurers’ Option to Defend
(b)	As soon as practicable following the receipt of Notice from the Insured in accordance with Paragraph 7 Insurers shall advise the Insured whether they wish to exercise their Option, and in any event not later than 60 days after Insurers have received a copy of any Writ, Summons or Complaint or other document commencing legal proceedings against the Insured in respect of Aircraft Noise. If Insurers advise the Insured that they do not wish to exercise their Option as aforesaid thereafter Insurers may only exercise the said Option with the consent of the Insured.
3.	If Insurers do not exercise their Option, they shall contribute in the proportion specified below to the Insured’s costs and expenses necessarily incurred for the purposes of investigation, defence, settlement, trial or appeal in relation to Aircraft Noise claims:					Contribution to Insured’s costs and expenses
Insurers’ Contribution		=	The total paid by Insurers as compensation in Accordance with paragraph 1   The total paid by or on behalf of the Insured as compensation howsoever arising in respect of Aircraft Noise	x	The Insured’s costs and expenses as aforesaid
The Insured’s costs and expenses as aforesaid shall not include wages or salary of directors, partners or employees of the Insured.     AVN 47  1.10.96   Any contribution by Insurers as aforesaid shall be in addition to any sums paid in accordance with Paragraph 1 subject to an aggregate annual limit as shown in Item 8 of the Schedule.