Insurance Clauses

Institute Cargo Clause "A"

2009-05-01T02:28:00.000-07:00

INSTITUTE CARGO CLAUSES (A)
(Revised CL 19)

RISKS COVERED
1 This insurance covers all risks of loss of or damage to the subject-matter insured except as provided in Clauses 4, 5, 6 and 7 below.

2 This insurance covers general average and salvage charges, adjusted or determined according to the contract of affreightment and/or the governing law and practice, incurred to avoid or in connection with the avoidance of loss from any cause except those excluded in Clauses 4, 5, 6 and 7 or elsewhere in this insurance.

3 This insurance is extended to indemnify the Assured against such proportion of liability under the contract of affreighment “Both to Blame Collision” Clause as is in respect of a loss recoverable hereunder. In the event of any claim by shipowners under the said Clause the Assured agree to notify the Underwriters who shall have the right, at their own cost and expense, to defend the Assured against such claim.

EXCLUSIONS
4 In no case shall this insurance cover
4.1 loss damage or expense attributable to willful misconduct of the Assured

4.2 ordinary leakage, ordinary loss in weight or volume, or ordinary wear and tear of the subject-matter insured

4.3 loss damage or expense caused by insufficiency or unsuitability of packing or preparation of the subject-matter insured (for the purpose of this Clause 4.3 “packing” shall be deemed to include stowage in a container or liftvan but only when such stowage is carried out prior to attachment of this insurance or by the Assured or their servants)

4.4 loss damage or expense caused by inherent vice or nature of the subject-matter insured

4.5 loss damage or expense proximately caused by delay, even though the delay be caused by a risk insured against (except expenses payable under Clause 2 above)

4.6 loss damage or expense arising from insolvency or financial default of the owners managers charterers or operators of the vessel

4.7 loss damage or expense arising from the use of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.

5 5.1 In no case shall this insurance cover loss damage or expense arising from
unseaworthiness of vessel or craft,
unfitness of vessel craft conveyance container or liftvan for the safe carriage of the subject-matter insured,
where the Assured or their servants are privy to such unseaworthiness or unfitness, at the time the subject-matter is loaded therein.

5.2 The Underwriters waive any breach of the implied warranties of seaworthiness of the ship and fitness of the ship to carry the subject-matter insured to destination, unless the Assured or their servants are privy to such unseaworthiness or unfitness.

6 In no case shall this insurance cover loss damage or expense caused by
6.1 war civil war revolution rebellion insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power

6.2 capture seizure arrest restraint or detainment (piracy excepted) and the consequences thereof or any attempt thereat

6.3 derelict mines torpedoes bombs or other derelict weapons of war.

7 In no case shall this insurance cover loss damage or expense

7.1 caused by strikers, locked-out workmen, or persons taking part in labour disturbances, riots or civil commotions

7.2 resulting from strikes, lock-outs, labour disturbances, riots or civil commotions

7.3 caused by any terrorist or any person acting from a political motive.

DURATION
8 8.1 This insurance attaches from the time the goods leave the warehouse or place of storage at the place named herein for the commencement of the transit, continues during the ordinary course of transit and terminates either

8.1.1 on delivery to the Consignees’ or other final warehouse or place of storage at the destination named herein,

8.1.2 on delivery to any other warehouse or place of storage, whether prior to or at the destination named herein, which the Assured elect to use either

8.1.2.1 for storage other than in the ordinary course of transit or

8.1.2.2 for allocation or distribution,

or

8.1.3 on the expiry of 60 days after completion of discharge overside of the goods hereby insured from the oversea vessel at the final port of discharge,

whichever shall first occur.

8.2. If, after discharge overside from the oversea vessel at the final port of discharge, but prior to termination of this insurance, the goods are to be forwarded to a destination other than that to which they are insured hereunder, this insurance, whilst remaining subject to termination as provided for above, shall not extend beyond the commencement of transit to such other destination.

8.3 This insurance shall remain in force (subject to termination as provided for above and to the provisions of Clause 9 below) during delay beyond the control of the Assured, any deviation, forced discharge, reshipment or transhipment and during any variation of the adventure arising from the exercise of a liberty granted to shipowners or charterers under the contract of affreightment.

9 If owing to circumstances beyond the control of the Assured either the contract of carriage is terminated at a port or place other than the destination named therein or the transit is otherwise terminated before delivery of the goods as provided for in Clause 8 above, then this insurance shall also terminate unless prompt notice is given to the underwriters and continuation of cover is requested when the insurance shall remain in force, subject to an additional premium if required by the Underwriters, either

9.1 until the goods are sold and delivered at such port or place, or, unless otherwise specially agreed, until the expiry of 60 days after arrival of the goods hereby insured at such port or place, whichever shall first occur, or

9.2 if the goods are forwarded within the said period of 60 days (or any agreed extension thereof) to the destination named herein or to any other destination, until terminated in accordance with the provisions of Clause 8 above.

10. Where, after attachment of this insurance, the destination is changed by the Assured, held covered at a premium and on conditions to be arranged subject to prompt notice being given to the Underwriters.

CLAIMS
11 11.1 In order to recover under this insurance the Assured must have an insurable interest in the subject-matter insured at the time of the loss.

11.2 Subject to 11.1 above, the Assured shall be entitled to recover for insured loss occurring during the period covered by this insurance, notwithstanding that the loss occurred before the contract of insurance was concluded, unless the Assured were aware of the loss and the Underwriters were not.

12 Where, as a result of the operation of a risk covered by this insurance, the insured transit is terminated at a port or place other than that to which the subject-matter is covered under this insurance, the Underwriters will reimburse the Assured for any extra charges properly and reasonably incurred in unloading storing and forwarding the subject-matter to the destination to which it is insured hereunder.

This Clause 12, which does not apply to general average or salvage charges, shall be subject to the exclusions contained in Clauses 4, 5, 6 and 7 above, and shall not include charges arising from the fault negligence insolvency or financial default of the Assured or their servants.

13 No claim for Constructive Total Loss shall be recoverable hereunder unless the subject-matter insured is reasonably abandoned either on account of its actual total loss appearing to be unavoidable or because the cost of recovering, reconditioning and forwarding the subject-matter to the destination to which it is insured would exceed its value on arrival.

14 14.1 If any Increased Value insurance is effected by the Assured on the cargo insured herein the agreed value of the cargo shall be deemed to be increased to the total amount insured under this insurance and all Increased Value insurances covering the loss, and liability under this insurance shall be in such proportion as the sum insured herein bears to such total amount insured.

In the event of claim the Assured shall provide the Underwriters with evidence of the amounts insured under all other insurances.

14.2 Where this insurance is on Increased Value the following clause shall apply:

The agreed value of the cargo shall be deemed to be equal to the total amount insured under the primary insurance and all Increased Value insurances covering the loss and affected on the cargo by the Assured, and liability under this insurance shall be in such proportion as the sum insured herein bears to such total amount insured.

In the event of claim the Assured shall provide the Underwriters with evidence of the amounts insured under all other insurances.

BENEFIT OF INSURANCE

15 This insurance shall not inure to the benefit of the carrier or other bailee.

MINIMISING LOSSES
16 It is the duty of the Assured and their servants and agents in respect of loss recoverable hereunder

16.1 to take such measures as may be reasonable for the purpose of averting or minimizing such loss, and

16.2 to ensure that all rights against carriers, bailees or other third parties are properly preserved and exercised

and the Underwriters will, in addition to any loss recoverable hereunder, reimburse the Assured for any charges properly and reasonably incurred in pursuance of these duties.

17 Measures taken by the Assured or the Underwriters with the object of saving, protecting or recovering the subject-matter insured shall not be considered as a waiver or acceptance of abandonment or otherwise prejudice the rights of either party.

AVOIDANCE OF DELAY
18 It is a condition of this insurance that the Assured shall act with reasonable despatch in all circumstances within their control.

LAW AND PRACTICE
19 This insurance is subject to English law and practice as far as not in contradiction with Indonesian coercive law.

Note :
It is necessary for the Assured when they become aware of an event which is “held covered” under this insurance to give prompt notice to the underwriters and the right to such cover is dependent upon compliance with this obligation.

Risks Clause

General Average Clause

“Both to Blame Collision” Clause

General Exclusions Clause

Unseaworthiness and Unfitness Exclusions Clause

War Exclusion Clause

Strikes Exclusion Clause

Transit Clause

Termination of Contract of Carriage Clause

Change of Voyage Clause

Insurable Interest Clause

Forwarding Charges Clause

Constructive Total Loss Clause

Increased Value Clause

Not to Inure Clause

Duty of Assured Clause

Waiver Clause

Reasonable Despatch Clause

English Law and Practice Clause INSTITUTE CARGO CLAUSES (A)
(Revisi KL 19)

RISIKO YANG DIJAMIN
1. Asuransi ini menjamin segala kerugian atau kerusakan pada obyek yang diasuransikan kecuali terhadap risiko-risiko yang diatur pada Klausul 4, 5, 6 dan 7 dibawah.

2. Asuransi ini menjamin kerugian umum dan biaya penyelamatan, yang perhitungannya didasarkan dan ditentukan sesuai kontrak pengangkutan dan/atau ketentuan hukum dan praktek yang berlaku, yang timbul untuk menghindari atau yang berhubungan dengan hal-hal untuk menghindari kerugian oleh sebab apapun, kecuali yang dikecualikan dalam klausul 4, 5, 6 an 7 atau dimanapun tertera pada asuransi ini.

3. Asuransi ini diperluas untuk memberi ganti rugi kepada Tertanggung terhadap kerugian yang menjadi tanggung jawabnya dalam kontrak pengangkutan dibawah klausul “Tabrakan Kapal Dimana Keduanya Bersalah” jika kerugiannya dijamin. Dalam hal timbul klaim dari pemilik kapal berdasarkan Klausul tersebut, Tertanggung setuju memberitahu Penanggung dimana Penanggung berhak untuk mempertahankan diri dengan biaya yang menjadi tanggungannya, untuk membela Tertanggung terhadap klaim demikian.

PENGECUALIAN
4. Dalam hal apapun asuransi ini tidak menjamin :
4.1 kerugian kerusakan atau biaya yang diakibatkan oleh kesalahan yang disengaja oleh Tertanggung

4.2 kebocoran yang wajar, berkurangnya berat atau volume yang wajar, atau keausan yang wajar dari obyek yang diasuransikan

4.3 kerugian kerusakan atau biaya yang disebabkan oleh tidak memadainya atau tidak sesuainya pembungkus atau penyiapan obyek yang diasuransikan (untuk keperluan Klausul 4.3 ini, “pembungkus” dianggap termasuk penyusunan barang didalam kontainer atau mobil box , tetapi hanya jika penyusunan tersebut dilakukan sebelum mulai berlakunya asuransi ini atau dilakukan oleh Tertanggung atau pegawainya)

4.4 kerugian kerusakan atau biaya yang disebabkan oleh kerusakan sendiri atau sifat alamiah obyek yang diasuransikan

4.5 kerugian kerusakan atau biaya yang secara proxima disebabkan oleh keterlambatan, walaupun keterlambatan itu disebabkan oleh risiko yang diasuransikan (kecuali biaya yang dapat dibayar berdasarkan Klausul 2 diatas)

4.6 kerugian kerusakan atau biaya yang timbul dari insolvensi atau kegagalan keuangan pemilik pengelola pencharter atau operator kapal

4.7 kerugian kerusakan atau biaya yang timbul dari pemakaian senjata perang apapun yang menggunakan tenaga atom atau fisi dan/atau fusi nuklir atau reaksi lain sejenisnya atau kekuatan atau bahan radio aktif

5 5.1 Dalam hal apapun asuransi ini tidak menjamin kerugian kerusakan atau biaya yang timbul dari
ketidak-laik lautan kapal atau perahu,
ketidak sempurnaan kapal perahu alat angkut kontainer atau mobil box untuk pengangkutan yang aman atas obyek yang diasuransikan,
dimana Tertanggung atau pegawainya mengetahui ketidak-laik lautan atau ketidak sempurnaan tersebut, pada saat obyek yang diasuransikan dimuat ke dalamnya

5.2 Penanggung mengabaikan setiap pelanggaran persyaratan yang tidak tertulis (implied warranty) mengenai kelaik-lautan kapal dan kesempurnaan kapal untuk mengangkut obyek yang diasuransikan ketempat tujuan, kecuali Tertanggung atau pegawainya mengetahui ketidak-laik lautan atau ketidak sempurnaan tersebut

6 Dalam hal apapun asuransi ini tidak menjamin kerugian kerusakan atau biaya yang disebabkan oleh :
6.1 perang perang saudara revolusi pemberontakan pembangkitan rakyat, atau kerusuhan sipil yang timbul daripadanya, atau tiap tindakan yang bersifat permusuhan oleh atau terhadap pihak yang berkuasa

6.2 perampasan penyitaan penangkapan pembatasan kebebasan atau penahanan (kecuali pembajakan) dan akibat dari padanya atau percobaan untuk melakukan hal tersebut

6.3 ranjau torpedo bom atau senjata perang lainnya yang tidak terurus lagi

7 Dalam hal apapun asuransi ini tidak menjamin kerugian kerusakan atau biaya

7.1 yang disebabkan oleh pemogok, pekerja yang terkena penghalangan bekerja, atau orang yang mengambil bagian dalam gangguan buruh, kerusuhan atau huru-hara

7.2 yang timbul dari pemogokan, penghalangan bekerja, gangguan buruh, kerusuhan atau huru-hara

7.3 yang disebabkan oleh teroris atau orang yang bertindak dengan motif politik.

BERLAKUNYA ASURANSI
8 8.1 Asuransi ini mulai berlaku sejak saat barang meninggalkan gudang atau tempat penyimpanan yang disebutkan dalam polis sebagai awal dimulainya perjalanan, berlaku terus selama perjalanan yang wajar dan berakhir pada

8.1.1 saat diserah-terimakan di gudang Penerima atau di gudang terakhir lain atau tempat penyimpanan ditempat tujuan yang telah disebutkan,

8.1.2 saat diserah terimakan di gudang atau tempat penyimpanan lain, baik sebelum atau di tempat tujuan yang telah disebutkan, yang dipilih Tertanggung baik digunakan

8.1.2.1 untuk penyimpanan diluar jalur perjalanan yang wajar, atau

8.1.2.2 untuk alokasi atau distribusi,

atau

8.1.3 saat berakhirnya waktu 60 hari setelah barang yang diasuransikan selesai dibongkar dari kapal di pelabuhan pembongkaran terakhir,

mana yang terlebih dahulu terjadi.

8.2 Jika, setelah dibongkar dari kapal di pelabuhan pembongkaran terakhir, tetapi sebelum berakhirnya asuransi ini, barang diteruskan ke tujuan lain dari yang telah diasuransikan, asuransi ini, dengan tetap tunduk pada ketentuan pengakhiran diatas, tidak akan diperluas selama perjalanan ketempat tujuan lain tersebut.

8.3 Asuransi ini tetap berlaku (dengan tunduk pada ketentuan pengakhiran tersebut diatas dan yang diatur pada Klausul 9 di bawah ini) selama terjadi keterlambatan di luar kontrol Tertanggung, setiap penyimpangan pelayaran, pembongkaran darurat, pengapalan kembali atau pemindahan ke kapal lain dan selama terjadi perubahan pelayaran yang timbul dari kebebasan pengangkut atau pencarter yang diatur dalam kontrak pengangkutan.

9 Jika dalam keadaan diluar kontrol Tertanggung baik kontrak pengangkutan diakhiri disuatu pelabuhan atau tempat lain selain tempat yang telah disebutkan atau pelayaran dihentikan sebelum barang diserah-terimakan sebagaimana diatur pada Klausul 8 diatas, maka asuransi ini juga berakhir kecuali pemberitahuan segera disampaikan kepada Penanggung dan kelanjutan jaminan diminta maka asuransi tetap berlaku, dengan ketentuan premi tambahan jika dikehendaki oleh Penanggung, baik

9.1 sampai barang dijual dan diserah-terimakan di pelabuhan atau tempat tersebut, atau, kecuali secara khusus disetujui lain, sampai berakhirnya jangka waktu 60 hari setelah barang yang diasuransikan tiba di pelabuhan atau tempat tersebut, mana yang terlebih dahulu terjadi, atau

9.2 jika barang diteruskan dalam jangka waktu 60 hari tersebut (atau perpanjangan yang disetujui) ke tempat tujuan yang telah disebutkan atau tempat tujuan lain, sampai berakhir sebagaimana diatur pada Klausul 8 diatas.

10 Bilamana, setelah berlakunya asuransi ini, tujuan dirubah oleh Tertanggung, jaminan tetap berlaku dengan premi dan persyaratan yang ditentukan, dengan ketentuan pemberitahuan segera disampaikan kepada Penanggung .

KLAIM
11 11.1 Agar dapat memperoleh ganti rugi dalam asuransi ini Tertanggung harus mempunyai kepentingan atas obyek yang diasuransikan pada saat terjadinya kerugian.

11.2 Dengan tunduk pada ketentuan 11.1 diatas, Tertanggung berhak mendapatkan ganti rugi atas kerugian yang diasuransikan yang terjadi selama jangka waktu yang diasuransikan, walaupun kerugian tersebut terjadi sebelum perjanjian asuransi disepakati, kecuali Tertanggung telah mengetahui adanya kerugian tersebut dan Penanggung tidak.

12 Bilamana, sebagai akibat dari risiko yang dijamin asuransi ini, perjalanan yang diasuransikan berakhir di suatu pelabuhan atau tempat lain selain dari tujuan dimana obyek bersangkutan diasuransikan, Penanggung akan mengganti kerugian Tertanggung atas setiap biaya tambahan yang layak dan wajar yang timbul dalam pembongkaran penimbunan dan penerusan obyek yang diasuransikan ke tempat tujuan yang diasuransikan.

Klausul 12 ini, yang tidak berlaku bagi kerugian umum dan biaya penyelamatan, tunduk pada pengecualian Klausul 4, 5, 6 dan 7 diatas, dan tidak termasuk biaya yang timbul dari kesalahan kelalaian insolvensi atau ketidak-mampuan keuangan Tertanggung atau pegawainya.

13 Tidak ada klaim untuk Kerugian Total Konstruktif akan dibayar kecuali obyek asuransi telah diabandon secara wajar baik dengan pertimbangan suatu Kerugian Total Nyata kelihatannya tidak dapat dihindarkan atau karena biaya memperoleh kembali, memperbaiki dan meneruskan obyek asuransi ke tempat tujuan yang diasuransikan akan melampaui nilainya di tempat tujuan.

14 14.1 Jika asuransi Kenaikan Harga diminta oleh Tertanggung atas barang yang diasuransikan harga barang yang disetujui dianggap dinaikkan ke total harga pertanggungan pada asuransi ini dan semua asuransi Kenaikan Harga yang menjamin kerugian, dan tanggung jawab pada asuransi ini akan sebanding antara harga pertanggungan terhadap total harga pertanggungan tersebut.

Dalam hal terjadi klaim, Tertanggung harus menyerahkan kepada Penanggung, bukti jumlah yang diasuransikan dari semua asuransi lainnya.

14.2 Bilamana asuransi ini atas Kenaikan Harga klausul berikut berlaku :

Harga barang yang telah disetujui dianggap sama dengan jumlah yang dipertanggungkan pada asuransi pokok dan semua asuransi kenaikan harga yang menutup kerugian dan yang diminta oleh Tertanggung atas barang, dan tanggung jawab pada asuransi ini akan sebanding antara harga pertanggungan terhadap total harga pertanggungan tersebut.

Dalam hal terjadi klaim Tertanggung harus menyerahkan kepada Penanggung, bukti jumlah yang diasuransikan dari semua asuransi lainnya.

MANFAAT ASURANSI

15 Asuransi ini tidak dapat dipakai untuk keuntungan pihak pengangkut atau pihak lain yang secara hukum bertanggung jawab atas barang.

MEMPERKECIL KERUGIAN
16 Merupakan kewajiban Tertanggung dan pegawainya dan agennya dalam hal terjadi kerugian yang dapat diganti

16.1 mengambil tindakan yang wajar dengan tujuan mencegah atau memperkecil kerugian, dan

16.2 menjamin bahwa semua hak tuntut terhadap pengangkut, pihak lain yang secara hukum bertanggung jawab atas barang atau pihak ketiga lainnya dilindungi dan dilaksanakan sebagaimana mestinya

dan Penanggung akan, sebagai tambahan atas suatu kerugian yang dapat dijamin dalam Polis ini, memberikan ganti rugi kepada Tertanggung atas biaya yang dikeluarkan secara layak dan wajar untuk memenuhi kewajiban tersebut.

17 Tindakan yang dilakukan Tertanggung atau Penanggung dengan tujuan mengamankan, melindungi atau memperoleh kembali obyek yang diasuransikan tidak dapat dianggap sebagai suatu penolakan atau penerimaan abandonmen atau hal lain yang merugikan hak dari masing-masing pihak.

PENCEGAHAN KETERLAMBATAN
18 Merupakan syarat dari asuransi ini bahwa Tertanggung harus bertindak dengan cepat dan wajar dalam setiap keadaan yang berada dalam kontrolnya.

HUKUM DAN PRAKTEK
19 Asuransi ini tunduk pada hukum dan praktek yang berlaku di Inggris sepanjang tidak bertentangan dengan hukum memaksa Indonesia.

Catatan :
Adalah penting bagi Tertanggung, bilamana ia mengetahui hal-hal yang termasuk sebagai “jaminan tetap berlaku” dibawah asuransi ini, memberikan laporan segera kepada Penanggung dan hak atas jaminan Penanggung tergantung pada pemenuhan kewajiban ini.

Terjemahan ini dibuat berdasarkan dokumen berbahasa Inggris.
Jika terdapat perbedaan penafsiran dalam versi Bahasa Indonesia ini, maka versi Bahasa Inggris yang akan dijadikan sebagai acuan.

Klausul Jaminan

Klausul Kerugian
Umum

Klausul Tabrakan Kapal Dimana Keduanya Bersalah

Klausul Pengecualian Umum

Klausul Pengecualian Ketidak-laikan dan Ketidak-sempurnaan

Klausul Pengecualian Perang

Klausul Pengecualian Pemogokan

Klausul
Perjalanan

Klausul Penghentian Kontrak Pengangkutan

Klausul Perubahan Perjalanan

Klausul Kepentingan Yang Dapat Diasuransikan

Klausul Biaya Meneruskan ke Tempat tujuan

Klausul Kerugian Total Konstruktif

Klausul Kenaikan Harga

Klausul Bukan Untuk Manfaat.

Klausul Kewajiban Tertanggung

Klausul Pengabaian

Klausul
Tindakan Cepat dan Wajar

Klausul Praktek dan Hukum Inggris

AVN 52G 17.10.01

2009-05-01T02:27:00.002-07:00

EXTENDED COVERAGE ENDORSEMENT (AVIATION LIABILITIES)

1. WHEREAS the Policy of which this Endorsement forms part includes the War, Hi-Jacking and Other Perils Exclusion Clause (Clause AVN 48B), IN CONSIDERATION of an Additional Premium of ……………………………, it is hereby understood and agreed that with effect from …………….., all sub-paragraphs other than ………………………… ……………………………of Clause AVN 48B forming part of this Policy are deleted SUBJECT TO all terms and conditions of this Endorsement.

2. EXCLUSION applicable only to any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B.

Cover shall not include liability for damage to any form of property on the ground situated outside Canada and the United States of America unless caused by or arising out of the use of aircraft.

3. LIMITATION OF LIABILITY

The limit of Insurers’ liability in respect of the coverage provided by this Endorsement shall be a sub-limit of ……………………… or the applicable Policy limit whichever the lesser any one Occurrence and in the annual aggregate. This sub-limit shall apply within the full Policy limit and not in addition thereto.

4. AUTOMATIC TERMINATION

To the extent provided below, cover extended by this Endorsement shall TERMINATE AUTOMATICALLY in the following circumstances:

(i) All cover
- upon the outbreak of war (whether there be a declaration of war or not) between any two or more of the following States, namely, France, the People’s Republic of China, the Russian Federation, the United Kingdom, the United States of America

(ii) Any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B
- upon the hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter wheresoever or whensoever such detonation may occur and whether or not the Insured Aircraft may be involved

(iii) All cover in respect of any of the Insured Aircraft requisitioned for either title or use
- upon such requisition

PROVIDED THAT if an Insured Aircraft is in the air when (i), (ii) or (iii) occurs, then the cover provided by this Endorsement (unless otherwise cancelled, terminated or suspended) shall continue in respect of such an Aircraft until completion of its first landing thereafter and any passengers have disembarked.

5. REVIEW AND CANCELLATION

(a) Review of Premium and/or Geographical Limits (7 days)
Insurers may give notice to review premium and/or geographical limits - such notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which notice is given.

(b) Limited Cancellation (48 hours)
Following a hostile detonation as specified in 4 (ii) above, Insurers may give notice of cancellation of one or more parts of the cover provided by paragraph 1 of this Endorsement by reference to sub-paragraphs (c), (d), (e), (f) and/or (g) of Clause AVN 48B - such notice to become effective on the expiry of forty-eight hours from 23.59 hours GMT on the day on which notice is given.

(c) Cancellation (7 days)
The cover provided by this Endorsement may be cancelled by either Insurers or the Insured giving notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which such notice is given.

(d) Notices
All notices referred to herein shall be in writing.

AVN 52G 17.10.01
(applicable to coverage provided to service providers)

AVN 52F 17.10.01

2009-05-01T02:27:00.001-07:00

EXTENDED COVERAGE ENDORSEMENT (AVIATION LIABILITIES)

1. WHEREAS the Policy of which this Endorsement forms part includes the War, Hi-Jacking and Other Perils Exclusion Clause (Clause AVN 48B), IN CONSIDERATION of an Additional Premium of ……………………………, it is hereby understood and agreed that with effect from …………….., all sub-paragraphs other than ………………………… ……………………………of Clause AVN 48B forming part of this Policy are deleted SUBJECT TO all terms and conditions of this Endorsement.

2. EXCLUSION applicable only to any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B.

Cover shall not include liability for damage to any form of property on the ground situated outside Canada and the United States of America unless caused by or arising out of the use of aircraft.

3. LIMITATION OF LIABILITY

The limit of Insurers’ liability in respect of the coverage provided by this Endorsement shall be a sub-limit of US$50,000,000 or the applicable Policy limit whichever the lesser any one Occurrence and in the annual aggregate. This sub-limit shall apply within the full Policy limit and not in addition thereto.

4. AUTOMATIC TERMINATION

To the extent provided below, cover extended by this Endorsement shall TERMINATE AUTOMATICALLY in the following circumstances:

(i) All cover
- upon the outbreak of war (whether there be a declaration of war or not) between any two or more of the following States, namely, France, the People’s Republic of China, the Russian Federation, the United Kingdom, the United States of America

(ii) Any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B
- upon the hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter wheresoever or whensoever such detonation may occur and whether or not the Insured Aircraft may be involved

(iii) All cover in respect of any of the Insured Aircraft requisitioned for either title or use
- upon such requisition

PROVIDED THAT if an Insured Aircraft is in the air when (i), (ii) or (iii) occurs, then the cover provided by this Endorsement (unless otherwise cancelled, terminated or suspended) shall continue in respect of such an Aircraft until completion of its first landing thereafter and any passengers have disembarked.

5. REVIEW AND CANCELLATION

(a) Review of Premium and/or Geographical Limits (7 days)
Insurers may give notice to review premium and/or geographical limits - such notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which notice is given.

(b) Limited Cancellation (48 hours)
Following a hostile detonation as specified in 4 (ii) above, Insurers may give notice of cancellation of one or more parts of the cover provided by paragraph 1 of this Endorsement by reference to sub-paragraphs (c), (d), (e), (f) and/or (g) of Clause AVN 48B - such notice to become effective on the expiry of forty-eight hours from 23.59 hours GMT on the day on which notice is given.

(c) Cancellation (7 days)
The cover provided by this Endorsement may be cancelled by either Insurers or the Insured giving notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which such notice is given.

(d) Notices
All notices referred to herein shall be in writing.

AVN 52F 17.10.01
(applicable to coverage provided to service providers)

AVN 52E 20.9.01

2009-05-01T02:26:00.000-07:00

EXTENDED COVERAGE ENDORSEMENT (AVIATION LIABILITIES)

1. WHEREAS the Policy of which this Endorsement forms part includes the War, Hi-Jacking and Other Perils Exclusion Clause (Clause AVN 48B), IN CONSIDERATION of an Additional Premium of ……………………………, it is hereby understood and agreed that with effect from …………….., all sub-paragraphs other than ……………………………of Clause AVN 48B forming part of this Policy are deleted SUBJECT TO all terms and conditions of this Endorsement.

2. EXCLUSION applicable only to any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B.

Cover shall not include liability for damage to any form of property on the ground situated outside Canada and the United States of America unless caused by or arising out of the use of aircraft.

3. LIMITATION OF LIABILITY

The limit of Insurers’ liability in respect of the coverage provided by this Endorsement shall be a sub-limit of …………………………. or the applicable Policy limit whichever the lesser any one Occurrence and in the annual aggregate except with respect to passengers to whom the full Policy limit(s) shall apply. This sub-limit shall apply within the full Policy limit and not in addition thereto.

4. AUTOMATIC TERMINATION

To the extent provided below, cover extended by this Endorsement shall TERMINATE AUTOMATICALLY in the following circumstances:

(i) All cover
- upon the outbreak of war (whether there be a declaration of war or not) between any two or more of the following States, namely, France, the People’s Republic of China, the Russian Federation, the United Kingdom, the United States of America

(ii) Any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B
- upon the hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter wheresoever or whensoever such detonation may occur and whether or not the Insured Aircraft may be involved

(iii) All cover in respect of any of the Insured Aircraft requisitioned for either title or use
- upon such requisition

PROVIDED THAT if an Insured Aircraft is in the air when (i), (ii) or (iii) occurs, then the cover provided by this Endorsement (unless otherwise cancelled, terminated or suspended) shall continue in respect of such an Aircraft until completion of its first landing thereafter and any passengers have disembarked.

5. REVIEW AND CANCELLATION

(a) Review of Premium and/or Geographical Limits (7 days)
Insurers may give notice to review premium and/or geographical limits - such notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which notice is given.

(b) Limited Cancellation (48 hours)
Following a hostile detonation as specified in 4 (ii) above, Insurers may give notice of cancellation of one or more parts of the cover provided by paragraph 1 of this Endorsement by reference to sub-paragraphs (c), (d), (e), (f) and/or (g) of Clause AVN 48B – such notice to become effective on the expiry of forty-eight hours from 23.59 hours GMT on the day on which notice is given.

(c) Cancellation (7 days)
The cover provided by this Endorsement may be cancelled by either Insurers or the Insured giving notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which such notice is given.

(d) Notices
All notices referred to herein shall be in writing.

AVN 52E 20.9.01

AVN 52E 12.12.01

2009-05-01T02:25:00.000-07:00

EXTENDED COVERAGE ENDORSEMENT (AVIATION LIABILITIES)

1. WHEREAS the Policy of which this Endorsement forms part includes the War, Hi-Jacking and Other Perils Exclusion Clause (Clause AVN 48B), IN CONSIDERATION of an Additional Premium of ……………………………, it is hereby understood and agreed that with effect from …………….., all sub-paragraphs other than ………………………… ……………………………of Clause AVN 48B forming part of this Policy are deleted SUBJECT TO all terms and conditions of this Endorsement.

2. EXCLUSION applicable only to any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B.

Cover shall not include liability for damage to any form of property on the ground situated outside Canada and the United States of America unless caused by or arising out of the use of aircraft.

3. LIMITATION OF LIABILITY

The limit of Insurers’ liability in respect of the coverage provided by this Endorsement shall be ………………………… or the applicable Policy limit whichever the lesser any one Occurrence and in the annual aggregate (the “sub-limit”). This sub-limit shall apply within the full Policy limit and not in addition thereto.

To the extent coverage is afforded to an Insured under the Policy, this sub-limit shall not apply to such Insured’s liability:

(a) to the passengers (and for their baggage and personal effects) of any aircraft operator to whom the Policy affords cover for liability to its passengers arising out of its operation of aircraft;

(b) for cargo and mail while it is on board the aircraft of any aircraft operator to whom the Policy affords cover for liability for such cargo and mail arising out of its operation of aircraft.

4. AUTOMATIC TERMINATION

To the extent provided below, cover extended by this Endorsement shall TERMINATE AUTOMATICALLY in the following circumstances:

(i) All cover
- upon the outbreak of war (whether there be a declaration of war or not) between any two or more of the following States, namely, France, the People’s Republic of China, the Russian Federation, the United Kingdom, the United States of America

(ii) Any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B
- upon the hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter wheresoever or whensoever such detonation may occur and whether or not the Insured Aircraft may be involved

(iii) All cover in respect of any of the Insured Aircraft requisitioned for either title or use
- upon such requisition

PROVIDED THAT if an Insured Aircraft is in the air when (i), (ii) or (iii) occurs, then the cover provided by this Endorsement (unless otherwise cancelled, terminated or suspended) shall continue in respect of such an Aircraft until completion of its first landing thereafter and any passengers have disembarked.

5. REVIEW AND CANCELLATION

(a) Review of Premium and/or Geographical Limits (7 days)
Insurers may give notice to review premium and/or geographical limits - such notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which notice is given.

(b) Limited Cancellation (48 hours)
Following a hostile detonation as specified in 4 (ii) above, Insurers may give notice of cancellation of one or more parts of the cover provided by paragraph 1 of this Endorsement by reference to sub-paragraphs (c), (d), (e), (f) and/or (g) of Clause AVN 48B - such notice to become effective on the expiry of forty-eight hours from 23.59 hours GMT on the day on which notice is given.

(c) Cancellation (7 days)
The cover provided by this Endorsement may be cancelled by either Insurers or the Insured giving notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which such notice is given.

(d) Notices
All notices referred to herein shall be in writing.

AVN 52E 12.12.01

AVN 52E 12.12.01

2009-05-01T02:24:00.002-07:00

EXTENDED COVERAGE ENDORSEMENT (AVIATION LIABILITIES)

1. WHEREAS the Policy of which this Endorsement forms part includes the War, Hi-Jacking and Other Perils Exclusion Clause (Clause AVN 48B), IN CONSIDERATION of an Additional Premium of ……………………………, it is hereby understood and agreed that with effect from …………….., all sub-paragraphs other than ………………………… ……………………………of Clause AVN 48B forming part of this Policy are deleted SUBJECT TO all terms and conditions of this Endorsement.

2. EXCLUSION applicable only to any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B.

Cover shall not include liability for damage to any form of property on the ground situated outside Canada and the United States of America unless caused by or arising out of the use of aircraft.

3. LIMITATION OF LIABILITY

The limit of Insurers’ liability in respect of the coverage provided by this Endorsement shall be ………………………… or the applicable Policy limit whichever the lesser any one Occurrence and in the annual aggregate (the “sub-limit”). This sub-limit shall apply within the full Policy limit and not in addition thereto.

To the extent coverage is afforded to an Insured under the Policy, this sub-limit shall not apply to such Insured’s liability:

(a) to the passengers (and for their baggage and personal effects) of any aircraft operator to whom the Policy affords cover for liability to its passengers arising out of its operation of aircraft;

(b) for cargo and mail while it is on board the aircraft of any aircraft operator to whom the Policy affords cover for liability for such cargo and mail arising out of its operation of aircraft.

4. AUTOMATIC TERMINATION

To the extent provided below, cover extended by this Endorsement shall TERMINATE AUTOMATICALLY in the following circumstances:

(i) All cover
- upon the outbreak of war (whether there be a declaration of war or not) between any two or more of the following States, namely, France, the People’s Republic of China, the Russian Federation, the United Kingdom, the United States of America

(ii) Any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B
- upon the hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter wheresoever or whensoever such detonation may occur and whether or not the Insured Aircraft may be involved

(iii) All cover in respect of any of the Insured Aircraft requisitioned for either title or use
- upon such requisition

PROVIDED THAT if an Insured Aircraft is in the air when (i), (ii) or (iii) occurs, then the cover provided by this Endorsement (unless otherwise cancelled, terminated or suspended) shall continue in respect of such an Aircraft until completion of its first landing thereafter and any passengers have disembarked.

5. REVIEW AND CANCELLATION

(a) Review of Premium and/or Geographical Limits (7 days)
Insurers may give notice to review premium and/or geographical limits - such notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which notice is given.

(b) Limited Cancellation (48 hours)
Following a hostile detonation as specified in 4 (ii) above, Insurers may give notice of cancellation of one or more parts of the cover provided by paragraph 1 of this Endorsement by reference to sub-paragraphs (c), (d), (e), (f) and/or (g) of Clause AVN 48B - such notice to become effective on the expiry of forty-eight hours from 23.59 hours GMT on the day on which notice is given.

(c) Cancellation (7 days)
The cover provided by this Endorsement may be cancelled by either Insurers or the Insured giving notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which such notice is given.

(d) Notices
All notices referred to herein shall be in writing.

AVN 52E 12.12.01

AVN 52E 12.12.01

2009-05-01T02:24:00.001-07:00

EXTENDED COVERAGE ENDORSEMENT (AVIATION LIABILITIES)

1. WHEREAS the Policy of which this Endorsement forms part includes the War, Hi-Jacking and Other Perils Exclusion Clause (Clause AVN 48B), IN CONSIDERATION of an Additional Premium of ……………………………, it is hereby understood and agreed that with effect from …………….., all sub-paragraphs other than ………………………… ……………………………of Clause AVN 48B forming part of this Policy are deleted SUBJECT TO all terms and conditions of this Endorsement.

2. EXCLUSION applicable only to any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B.

Cover shall not include liability for damage to any form of property on the ground situated outside Canada and the United States of America unless caused by or arising out of the use of aircraft.

3. LIMITATION OF LIABILITY

The limit of Insurers’ liability in respect of the coverage provided by this Endorsement shall be ………………………… or the applicable Policy limit whichever the lesser any one Occurrence and in the annual aggregate (the “sub-limit”). This sub-limit shall apply within the full Policy limit and not in addition thereto.

To the extent coverage is afforded to an Insured under the Policy, this sub-limit shall not apply to such Insured’s liability:

(a) to the passengers (and for their baggage and personal effects) of any aircraft operator to whom the Policy affords cover for liability to its passengers arising out of its operation of aircraft;

(b) for cargo and mail while it is on board the aircraft of any aircraft operator to whom the Policy affords cover for liability for such cargo and mail arising out of its operation of aircraft.

4. AUTOMATIC TERMINATION

To the extent provided below, cover extended by this Endorsement shall TERMINATE AUTOMATICALLY in the following circumstances:

(i) All cover
- upon the outbreak of war (whether there be a declaration of war or not) between any two or more of the following States, namely, France, the People’s Republic of China, the Russian Federation, the United Kingdom, the United States of America

(ii) Any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B
- upon the hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter wheresoever or whensoever such detonation may occur and whether or not the Insured Aircraft may be involved

(iii) All cover in respect of any of the Insured Aircraft requisitioned for either title or use
- upon such requisition

PROVIDED THAT if an Insured Aircraft is in the air when (i), (ii) or (iii) occurs, then the cover provided by this Endorsement (unless otherwise cancelled, terminated or suspended) shall continue in respect of such an Aircraft until completion of its first landing thereafter and any passengers have disembarked.

5. REVIEW AND CANCELLATION

(a) Review of Premium and/or Geographical Limits (7 days)
Insurers may give notice to review premium and/or geographical limits - such notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which notice is given.

(b) Limited Cancellation (48 hours)
Following a hostile detonation as specified in 4 (ii) above, Insurers may give notice of cancellation of one or more parts of the cover provided by paragraph 1 of this Endorsement by reference to sub-paragraphs (c), (d), (e), (f) and/or (g) of Clause AVN 48B - such notice to become effective on the expiry of forty-eight hours from 23.59 hours GMT on the day on which notice is given.

(c) Cancellation (7 days)
The cover provided by this Endorsement may be cancelled by either Insurers or the Insured giving notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which such notice is given.

(d) Notices
All notices referred to herein shall be in writing.

AVN 52E 12.12.01

AVN 52 D 19.9.01

2009-05-01T02:23:00.001-07:00

EXTENDED COVERAGE ENDORSEMENT (AVIATION LIABILITIES)

1. WHEREAS the Policy of which this Endorsement forms part includes the War, Hi-Jacking and Other Perils Exclusion Clause (Clause AVN 48B), IN CONSIDERATION of an Additional Premium of ……………………………, it is hereby understood and agreed that with effect from …………….., all sub-paragraphs other than………………………….. ……………………………of Clause AVN 48B forming part of this Policy are deleted SUBJECT TO all terms and conditions of this Endorsement.

2. EXCLUSION applicable only to any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B.

Cover shall not include liability for damage to any form of property on the ground situated outside Canada and the United States of America unless caused by or arising out of the use of aircraft.

3. LIMITATION OF LIABILITY

The limit of Insurers’ liability in respect of the coverage provided by this Endorsement shall be a sub-limit of US$ 50,000,000 or the applicable Policy limit whichever the lesser any one Occurrence and in the annual aggregate except with respect to passengers to whom the full Policy limit(s) shall apply. This sub-limit shall apply within the full Policy limit and not in addition thereto.

4. AUTOMATIC TERMINATION

To the extent provided below, cover extended by this Endorsement shall TERMINATE AUTOMATICALLY in the following circumstances:

(i) All cover
- upon the outbreak of war (whether there be a declaration of war or not) between any two or more of the following States, namely, France, the People’s Republic of China, the Russian Federation, the United Kingdom, the United States of America

(ii) Any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B
- upon the hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter wheresoever or whensoever such detonation may occur and whether or not the Insured Aircraft may be involved

(iii) All cover in respect of any of the Insured Aircraft requisitioned for either title or use
- upon such requisition

PROVIDED THAT if an Insured Aircraft is in the air when (i), (ii) or (iii) occurs, then the cover provided by this Endorsement (unless otherwise cancelled, terminated or suspended) shall continue in respect of such an Aircraft until completion of its first landing thereafter and any passengers have disembarked.

5. REVIEW AND CANCELLATION

(a) Review of Premium and/or Geographical Limits (7 days)
Insurers may give notice to review premium and/or geographical limits - such notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which notice is given.

(b) Limited Cancellation (48 hours)
Following a hostile detonation as specified in 4 (ii) above, Insurers may give notice of cancellation of one or more parts of the cover provided by paragraph 1 of this Endorsement by reference to sub-paragraphs (c), (d), (e), (f) and/or (g) of Clause AVN 48B – such notice to become effective on the expiry of forty-eight hours from 23.59 hours GMT on the day on which notice is given.

(c) Cancellation (7 days)
The cover provided by this Endorsement may be cancelled by either Insurers or the Insured giving notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which such notice is given.

(d) Notices
All notices referred to herein shall be in writing.

AVN 52D 19.9.01

AVN 52D

2009-05-01T02:22:00.002-07:00

EXTENDED COVERAGE ENDORSEMENT (AVIATION LIABILITIES)

1. WHEREAS the Policy of which this Endorsement forms part includes the War, Hi-Jacking and Other Perils Exclusion Clause (Clause AVN 48B), IN CONSIDERATION of an Additional Premium of ……………………………, it is hereby understood and agreed that with effect from …………….., all sub-paragraphs other than ………………………of Clause AVN 48B forming part of this Policy are deleted SUBJECT TO all terms and conditions of this Endorsement.

2. EXCLUSION applicable only to any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B.

Cover shall not include liability for damage to any form of property on the ground situated outside Canada and the United States of America unless caused by or arising out of the use of aircraft.

3. LIMITATION OF LIABILITY

The limit of Insurers’ liability in respect of the coverage provided by this Endorsement shall be US$ 50,000,000 or the applicable Policy limit whichever the lesser any one Occurrence and in the annual aggregate (the ‘sub-limit’). This sub-limit shall apply within the full Policy limit and not in addition thereto.

To the extent coverage is afforded to an Insured under the Policy, this sub-limit shall not apply to such Insured’s liability:

(a) to the passengers (and for their baggage and personal effects) of any aircraft operator to whom the Policy affords cover for liability to its passengers arising out of its operation of aircraft;

(b) for cargo and mail while it is on board the aircraft of any aircraft operator to whom the Policy affords cover for liability for such cargo and mail arising out of its operation of aircraft.

4. AUTOMATIC TERMINATION

To the extent provided below, cover extended by this Endorsement shall TERMINATE AUTOMATICALLY in the following circumstances:

(i) All cover
- upon the outbreak of war (whether there be a declaration of war or not) between any two or more of the following States, namely, France, the People’s Republic of China, the Russian Federation, the United Kingdom, the United States of America

(ii) Any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B
- upon the hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter wheresoever or whensoever such detonation may occur and whether or not the Insured Aircraft may be involved

(iii) All cover in respect of any of the Insured Aircraft requisitioned for either title or use
- upon such requisition

PROVIDED THAT if an Insured Aircraft is in the air when (i), (ii) or (iii) occurs, then the cover provided by this Endorsement (unless otherwise cancelled, terminated or suspended) shall continue in respect of such an Aircraft until completion of its first landing thereafter and any passengers have disembarked.

5. REVIEW AND CANCELLATION

(a) Review of Premium and/or Geographical Limits (7 days)
Insurers may give notice to review premium and/or geographical limits - such notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which notice is given.

(b) Limited Cancellation (48 hours)
Following a hostile detonation as specified in 4 (ii) above, Insurers may give notice of cancellation of one or more parts of the cover provided by paragraph 1 of this Endorsement by reference to sub-paragraphs (c), (d), (e), (f) and/or (g) of Clause AVN 48B - such notice to become effective on the expiry of forty-eight hours from 23.59 hours GMT on the day on which notice is given.

(c) Cancellation (7 days)
The cover provided by this Endorsement may be cancelled by either Insurers or the Insured giving notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which such notice is given.

(d) Notices
All notices referred to herein shall be in writing.

AVN 52D 12.12.01

AVN 52C

2009-05-01T02:22:00.001-07:00

EXTENDED COVERAGE ENDORSEMENT (AVIATION LIABILITIES)

1. WHEREAS the Policy of which this Endorsement forms part includes the War, Hi-Jacking and Other Perils Exclusion Clause (Clause AVN 48B), IN CONSIDERATION of an Additional Premium of .............................................., it is hereby understood and agreed that with effect from ............................ , all sub-paragraphs other than .................... ....................... of Clause AVN 48B forming part of this Policy are deleted SUBJECT TO all terms and conditions of this Endorsement.

2. EXCLUSION applicable only to any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B.

Cover shall not include liability for damage to any form of property on the ground situated outside Canada and the United States of America unless caused by or arising out of the use of aircraft.

3. AUTOMATIC TERMINATION

To the extent provided below, cover extended by this Endorsement shall TERMINATE AUTOMATICALLY in the following circumstances:

(i) All cover
- upon the outbreak of war (whether there be a declaration of war or not) between any two or more of the following States, namely, France, the People’s Republic of China, the Russian Federation, the United Kingdom, the United States of America

(ii) Any cover extended in respect of the deletion of sub-paragraph (a) of Clause AVN 48B
- upon the hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter wheresoever or whensoever such detonation may occur and whether or not the Insured Aircraft may be involved

(iii) All cover in respect of any of the Insured Aircraft requisitioned for either title or use
- upon such requisition

PROVIDED THAT if an Insured Aircraft is in the air when (i), (ii) or (iii) occurs, then the cover provided by this Endorsement (unless otherwise cancelled, terminated or suspended) shall continue in respect of such an Aircraft until completion of its first landing thereafter and any passengers have disembarked.

4. REVIEW AND CANCELLATION

(a) Review of Premium and/or Geographical Limits (7 days)
Insurers may give notice to review premium and/or geographical limits - such notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which notice is given.

(b) Limited Cancellation (48 hours)
Following a hostile detonation as specified in 3 (ii) above, Insurers may give notice of cancellation of one or more parts of the cover provided by paragraph 1 of this Endorsement by reference to sub-paragraphs (c), (d), (e), (f) and/ or (g) of Clause AVN 48B - such notice to become effective on the expiry of forty-eight hours from 23.59 hours GMT on the day on which notice is given.

(c) Cancellation (7 days)
The cover provided by this Endorsement may be cancelled by either Insurers or the Insured giving notice to become effective on the expiry of seven days from 23.59 hours GMT on the day on which such notice is given.

(d) Notices
All notices referred to herein shall be in writing.

AVN 52C 1.10.96

AVN 51

2009-05-01T02:21:00.001-07:00

EXTENDED COVERAGE ENDORSEMENT (AIRCRAFT HULLS)

Notwithstanding the contents of the War, Hi-jacking and Other Perils Exclusion Clause forming part of this Policy, IT IS HEREBY UNDERSTOOD AND AGREED that this Policy is extended to cover claims caused by the following risks:-

(i) Strikes, riots, civil commotions or labour disturbances;

(ii) Any malicious act or act of sabotage;

(iii) Hi-jacking or any unlawful seizure or wrongful exercise of control of the Aircraft or crew in Flight (including any attempt at such seizure or control) made by any person or persons on board the Aircraft acting without the consent of the Insured

PROVIDED ALWAYS THAT

1. The above extension shall only apply to the extent that the loss or damage is not otherwise excluded by (a), (b), (d) and (f) of the War, Hi-jacking and Other Perils Exclusion Clause

2. the limits of Insurers’ liability in respect of any or all of the risks covered under this endorsement shall not exceed the sum of........................................... (in the aggregate during the Policy period)

3. the Insured has paid or has agreed to pay the additional premium of ............................................required by the Insurers in respect of this extension

4. the insurance provided by this endorsement may be cancelled by the Insurers giving notice effective on the expiry of seven days from midnight GMT on the day on which notice is issued.

AVN 51 1.10.96

AVN 48B

2009-05-01T02:20:00.000-07:00

WAR, HI-JACKING AND OTHER PERILS EXCLUSION CLAUSE (AVIATION)

This Policy does not cover claims caused by

(a) War, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, martial law, military or usurped power or attempts at usurpation of power.

(b) Any hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.

(c) Strikes, riots, civil commotions or labour disturbances.

(d) Any act of one or more persons, whether or not agents of a sovereign Power, for political or terrorist purposes and whether the loss or damage resulting therefrom is accidental or intentional.

(e) Any malicious act or act of sabotage.

(f) Confiscation, nationalisation, seizure, restraint, detention, appropriation, requisition for title or use by or under the order of any Government (whether civil military or de facto) or public or local authority.

(g) Hi-jacking or any unlawful seizure or wrongful exercise of control of the Aircraft or crew in Flight (including any attempt at such seizure or control) made by any person or persons on board the Aircraft acting without the consent of the Insured.

Furthermore this Policy does not cover claims arising whilst the Aircraft is outside the control of the Insured by reason of any of the above perils. The Aircraft shall be deemed to have been restored to the control of the Insured on the safe return of the Aircraft to the Insured at an airfield not excluded by the geographical limits of this Policy, and entirely suitable for the operation of the Aircraft (such safe return shall require that the Aircraft be parked with engines shut down and under no duress).

AVN 48B 1.10.96

AVN 47

2009-05-01T02:19:00.002-07:00

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.

4. The Insured shall contribute ten per cent (10%) towards all claims paid under this Policy, including the allocated claims expense therefor under paragraphs 2(a) and 3. The Insurers may pay any part or all of the named Insured’s contribution in order to effect settlement of any claim or suit and upon notice to the named Insured, the named Insured shall reimburse the Insurers for such part of the Insured’s contribution as has been paid by the Insurers.
Insured’s Contribution
5. THIS POLICY DOES NOT APPLY
Exclusions
(a) to claims arising out of or in any way connected with nuisance and/or compensation for the taking, use of or acquisition of rights to property or airspace and/or any other direct or indirect consequences of Aircraft Noise except to the extent provided by Paragraph 1

(b) to any liability which arises solely by reason of any contract or agreement entered into by or on behalf of the Insured even if such contract or agreement has been noted by Insurers

(c) to claims by or in respect of any person or property on board the Aircraft, or any property owned, rented, occupied or used by or in the care, custody or control of the Insured

(d) while the Aircraft is being used for any unlawful purpose, or any purpose not specified in Item 4 of the Schedule hereto

(e) while outside the geographical limits specified in Item 5 of the Schedule hereto unless due to force majeure

(f) while the Aircraft is operated by anyone other than the Pilot(s) specified in Item 6 of the Schedule hereto.

6.

This Policy does not cover claims directly or indirectly occasioned by happening through or in consequence of:-

(a) War, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, martial law, military or usurped power or attempts at usurpation of power.
War, hi-jacking and other perils exclusions
(b) Any hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.

(c) Strikes, riots, civil commotions or labour disturbances.

(d) Any act of one or more persons, whether or not agents of a sovereign Power, for political or terrorist purposes and whether the loss or damage resulting therefrom is accidental or intentional.

(e)

Any malicious act or act of sabotage.

(f) Confiscation, nationalisation, seizure, restraint, detention, appropriation, requisition for title or use by or under the order of any Government (whether civil military or de facto) or public or local authority.

(g) Hi-jacking or any unlawful seizure or wrongful exercise of control of the Aircraft or crew in flight (including any attempt at such seizure or control) made by any person or persons on board the Aircraft acting without the consent of the Insured.

(h) The Aircraft being outside the control of the Insured by reason of a peril excluded by paragraphs (f) or (g).

7. (a) The Insured shall give immediate Notice to Insurers (as specified in Item 9 of the Schedule hereto) of the following:
Claims Procedure
(i) any claims covered by this Policy

(ii) any events, documents or communications likely to give rise to such claims

and, without any admission of liability, shall forthwith take such steps as may be reasonable and necessary to investigate, mitigate and defend claims and, unless Insurers exercise their Option, shall thereafter send to Insurers regular reports of progress in the aforesaid matters.

(b) The Insured shall not, without the consent of Insurers, compromise or settle any claim covered by Paragraph 1 or any such claim when combined with any uninsured claim.

(c) The Insured shall be responsible for

(i) The maintenance, and production for inspection by Insurers, of comprehensive and accurate records and accounts of all matters relevant to this Policy; in particular, if Insurers do not exercise their Option, the Insured shall maintain and produce such records and accounts as will enable Insurers to determine that part of any sums paid as compensation which is covered by Paragraph 1 and that proportion of the Insured’s costs and expenses which is covered by Paragraph 3.

(ii) Ensuring that employees, lawyers, adjusters and other agents of the Insured are given suitable instructions in relation to the maintenance and production of records and accounts as aforesaid.

8. WARRANTED that in relation to Warranty
(i) the control and minimisation of Noise and
(ii) airworthiness, operation, maintenance and repair of aircraft

The Insured will take all reasonable steps to ensure that the Aircraft and all those engaged in its operation and maintenance will

(a) comply with any applicable Laws and Regulations (including any rules and instructions of airport, Air Traffic Control and airworthiness authorities) and

(b) follow any applicable instructions or recommendations of Aircraft, Engine and Operational Equipment designers and manufacturers.

9. (i) Insurers’ liability shall not exceed the limits specified in Item 8 of the Schedule hereto. General
Conditions

(ii) Notwithstanding the inclusion herein of more than one Insured whether by endorsement or otherwise, the total liability of Insurers in respect of any or all Insureds shall not exceed the amounts specified in Item 8 of the Schedule hereto.

(iii) If the risk covered herein is insured by, or would, but for the existence of this Policy, be insured by any other policy or policies, then this Policy shall only pay in excess of any amount which is or would have been payable under such other policy or policies.

(iv) The due observance and fulfilment of the terms provisions, conditions and endorsements of this Policy shall be conditions precedent to any liability of the Insurers to make any payment under this Policy.

(v) If the Insured shall make any claim knowing the same to be false or fraudulent as regards amount or otherwise this Policy shall become void and all claims thereunder shall be forfeited.

(vi) Should there be any change in the circumstances or nature of the risks which are the basis of this contract the Insured shall give immediate notice thereof to the Insurers and no claim arising subsequent to such change shall be recoverable hereunder unless such change has been accepted by the Insurers.

(vii) This Policy may be cancelled at any time by the Insurers giving 10 days’ notice in writing of such cancellation. In such event the Insurers will return in respect of the unexpired period a pro rata portion of the premium.

(viii) This Policy shall not be assigned in whole or in part except with the consent of the Insurers verified by endorsement hereon.

(ix) All differences arising out of this Policy 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 appointed in writing by the Arbitrators before entering upon the reference. The Umpire shall sit with the Arbitrators and preside at their meetings and the making of an Award shall be a condition precedent to any right of action against the Insurers. If the Insurers shall disclaim liability to the Insured for any claim hereunder and such claim shall not within twelve calendar months from the date of such disclaimer have been referred to arbitration under the provisions herein contained then the claim shall for all purposes be deemed to have been abandoned and shall not thereafter be recoverable hereunder. Unless otherwise mutually agreed between the parties such arbitration shall take place in London.

THE SCHEDULE

PREMIUM.......................................................... POLICY NO. ..........................................

1. Name of Insured

2. Address

3. Period of Insurance

4. Purposes for which Aircraft may be used

5. Geographical Limits

6. Pilots

7. Aircraft Insured hereby:-

(a) Manufacturer

(b) Model designation

(c) Registration Marks

8. Limits of Insurers’ Liability

The Liability of Insurers shall not exceed the following amounts:-

...................................... any one Aircraft any one occurrence but not exceeding

...................................... in the aggregate during any one Policy year

9. Notice to Insurers

Notice to Insurers in accordance with Paragraph 7 shall be given to:-

....................................................................................

....................................................................................

....................................................................................

AVN 47 1.10.96

AVN 46B

2009-05-01T02:19:00.001-07:00

NOISE AND POLLUTION AND OTHER PERILS EXCLUSION CLAUSE

1. This Policy does not cover claims directly or indirectly occasioned by, happening through or in consequence of:-

(a) noise (whether audible to the human ear or not), vibration, sonic boom and any phenomena associated therewith,

(b) pollution and contamination of any kind whatsoever,

(c) electrical and electromagnetic interference,

(d) interference with the use of property;

unless caused by or resulting in a crash fire explosion or collision or a recorded in-flight emergency causing abnormal aircraft operation.

2. With respect to any provision in the Policy concerning any duty of Insurers to investigate or defend claims, such provision shall not apply and Insurers shall not be required to defend

(a) claims excluded by Paragraph 1 or

(b) a claim or claims covered by the Policy when combined with any claims excluded by Paragraph 1 (referred to below as ‘‘Combined Claims’’).

3. In respect of any Combined Claims, Insurers shall (subject to proof of loss and the limits of the Policy) reimburse the Insured for that portion of the following items which may be allocated to the claims covered by the Policy:

(i) damages awarded against the Insured and

(ii) defence fees and expenses incurred by the Insured.

4. Nothing herein shall override any radioactive contamination or other exclusion clause attached to or forming part of this Policy.

AVN 46B 1.10.96

AVN 44

2009-05-01T02:18:00.002-07:00

MUTUAL REVISION CLAUSE (AVIATION LIABILITY)

1. As used herein ‘‘Warsaw Convention’’ means the Convention for the Unification of Certain Rules relating to International Carriage by Air signed at Warsaw, October 12th 1929 or any amendment or supplement to that Convention whether by means of Protocol, additional, new or supplemental Convention or otherwise.

2. If at any time during the currency of this Policy the Insured’s legal liability may be affected by any one or any combination of the following events:

(a) Any ratification or denunciation of, or accession or adherence to, the Warsaw Convention or if the Warsaw Convention ceases to apply in respect of any State or Territory where it was previously in force

(b) Any alteration of liability in conformity with any Government or other official requirement or commercial agreement or by means of a Special Contract or Tariff provision in accordance with the Warsaw Convention

THEN notwithstanding any other provisions of the Policy, and in contemplation of any of the above events, either the Insured or the Insurers shall have the right to request a revision of terms and conditions. Revised terms and conditions agreed by the parties hereto shall, unless otherwise agreed, become operative if and when the events (or event) relevant to the aforesaid revision become(s) effective.

3. If no agreement is reached on revised terms and conditions on the expiry of 60 days from the date of a written request for the aforesaid revision, then either party shall have the right to give 30 days notice of cancellation of the Policy.

AVN 44 1.10.96

AVN 42

2009-05-01T02:18:00.001-07:00

DOCUMENTS OF CARRIAGE CLAUSE

1. It is a condition of this Policy that the Insured will take all reasonable steps to ensure that

(a) before a passenger boards the Aircraft, or when the Insured takes charge of registered/checked baggage and/or cargo, the appropriate Document of Carriage (correctly completed so as to identify the contract of carriage and to exclude or limit the Insured’s legal liability) is delivered to the passenger or consignor/shipper as the case may be

(b) suitable evidence of compliance with the foregoing is preserved and made available to Insurers upon request.

2. In the event of failure by the Insured to comply with the foregoing condition, the amount of Insurers’ liability shall not exceed the sum for which the Insured would have been legally liable if the aforesaid failure had not occurred, subject always to the Policy limits.

3. As used herein:

‘‘Document of Carriage’’ means a passenger ticket, baggage ticket/check or an air consignment note/air waybill (whichever is relevant to liability covered by this Policy) of which the form, the Conditions of Contract (including any applicable Tariff or Conditions of Carriage) and the usage thereof are either

(i) in accordance with current and relevant Resolutions adopted by members of the International Air Transport Association

or (ii) approved in writing by Insurers in any other case.

AVN 42 1.10.96

AVN 41A

2009-05-01T02:17:00.002-07:00

REINSURANCE UNDERWRITING AND CLAIMS CONTROL CLAUSE

1. This Policy is a reinsurance of………………………….., and it is warranted to be at the same gross rate, terms and conditions as those applying to the Reinsured(s) as agreed at inception.

2. It is further warranted that the Reinsured(s) will retain during the currency of this Policy the amount as agreed by the Reinsurers at inception.

3. Subject to the foregoing, it is a condition precedent to any liability under this Reinsurance that:

(a) no amendment to the terms or conditions of, or additions to or deletions from the original policy shall be binding upon the Reinsurers unless prior agreement has been obtained from the said Reinsurers;

(b) the Reinsured(s) shall upon knowledge of any loss or losses which may give rise to a claim under this Reinsurance, advise the Reinsurers within 72 hours;

(c) the Reinsured(s) shall furnish the Reinsurers with all information available respecting such loss or losses, and the Reinsurers shall have the sole right to appoint adjusters, assessors, surveyors and/or lawyers and to control all negotiations, adjustments and settlements in connection with such loss or losses.

AVN 41A 4.2.02

AVN 38B

2009-05-01T02:17:00.001-07:00

NUCLEAR RISKS EXCLUSION CLAUSE

(1) This Policy does not cover:

(i) loss of or destruction of or damage to any property whatsoever or any loss or expense whatsoever resulting or arising therefrom or any consequential loss

(ii) any legal liability of whatsoever nature

directly or indirectly caused by or contributed to by or arising from:

(a) the radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof;

(b) the radioactive properties of, or a combination of radioactive properties with toxic, explosive or other hazardous properties of, any other radioactive material in the course of carriage as cargo, including storage or handling incidental thereto;

(c) ionizing radiations or contamination by radioactivity from, or the toxic, explosive or other hazardous properties of, any other radioactive source whatsoever.

(2) It is understood and agreed that such radioactive material or other radioactive source in paragraph (1) (b) and (c) above shall not include:

(i) depleted uranium and natural uranium in any form;

(ii) radioisotopes which have reached the final stage of fabrication so as to be usable for any scientific, medical, agricultural, commercial, educational or industrial purpose.

(3) This Policy, however, does not cover loss of or destruction of or damage to any property or any consequential loss or any legal liability of whatsoever nature with respect to which:

(i) the Insured under this Policy is also an insured or an additional insured under any other insurance policy, including any nuclear energy liability policy; or

(ii) any person or organization is required to maintain financial protection pursuant to legislation in any country; or

(iii) the Insured under this Policy is, or had this Policy not been issued would be, entitled to indemnification from any government or agency thereof.

(4) Loss, destruction, damage, expense or legal liability in respect of the nuclear risks not excluded by reason of paragraph (2) shall (subject to all other terms, conditions, limitations, warranties and exclusions of this Policy) be covered, provided that:

(i) in the case of any claim in respect of radioactive material in the course of carriage as cargo, including storage or handling incidental thereto, such carriage shall in all respects have complied with the full International Civil Aviation Organization ‘‘Technical Instructions for the Safe Transport of Dangerous Goods by Air’’, unless the carriage shall have been subject to any more restrictive legislation, when it shall in all respects have complied with such legislation;

(ii) this Policy shall only apply to an incident happening during the period of this Policy and where any claim by the Insured against the Insurers or by any claimant against the Insured arising out of such incident shall have been made within three years after the date thereof;

(iii) in the case of any claim for the loss of or destruction of or damage to or loss of use of an aircraft caused by or contributed to by radioactive contamination, the level of such contamination shall have exceeded the maximum permissible level set out in the following scale:

Emitter

(IAEA Health and Safety Regulations)

Beta, gamma and low toxicity alpha emitters

All other emitters
Maximum permissible level of non-fixed radioactive surface contamination
(Averaged over 300 cm2)

Not exceeding 4 Becquerels/cm2
(10-4 microcuries/cm2)

Not exceeding 0.4 Becquerels/cm2
(10-5 microcuries/cm2)

(iv) the cover afforded hereby may be cancelled at any time by the Insurers giving seven days’ notice of cancellation.

AVN 38B 22.7.96

AVN 37B

2009-05-01T02:16:00.000-07:00

EXCESS AVIATION LIABILITY POLICY

Policy Schedule

Item 1. Name and Address of the Insured

Item 2. Policy Period

From

To

Item 3. Hazards Covered

The Insured’s legal liability arising out of

as covered by and as more fully set forth in the Primary Policy

Item 4. Limits of Liability

(a) Combined Primary and Underlying Excess Limit(s)

(b) Total limit of liability under this Policy and the Primary and Underlying Excess Policies combined

(c) Excess Limit

Item 5. Primary and Underlying Excess Policy Details and Limits

Primary Insurers

Policy Number

Limit

Underlying Excess Insurers

Policy Number

Limit

Item 6. Premium

Item 7. Address for Notices

All notices required to be given by the terms and conditions of this Policy shall be given to

We the Insurers agree, to the extent and in the manner hereinafter provided, and in consideration of the payment of the Premium, to pay on behalf of the Insured all sums which the Insured shall become legally obligated to pay as damages in respect of bodily injury and/or property damage caused by an Occurrence during the Policy Period, and arising out of the Hazards Covered set forth in Item 3 of the Policy Schedule.

PROVIDED ALWAYS THAT:

1. Liability attaches to the Insurers only after the Primary and Underlying Excess Insurers have paid or have been held liable to pay the full amount set forth in Item 4 (a) of the Policy Schedule in respect of the Ultimate Net Loss and then

(a) the limit of liability under this Policy will be such amount of the Ultimate Net Loss as will provide the Insured with a total limit under the Primary and Underlying Excess Policies and this Policy combined as set forth in Item 4 (b) of the Policy Schedule; or

(b) if no amount is set forth in Item 4 (b) of the Policy Schedule the limit of liability under this Policy shall be such amount of the Ultimate Net Loss as set forth in Item 4 (c) of the Policy Schedule excess of the limit set forth in Item 4 (a) of the Policy Schedule.

2. The limit of liability under this Policy as stated in Item 4 of the Policy Schedule shall not be increased by the inclusion hereon of more than one Insured whether by endorsement or otherwise.

3. If any of the Hazards Covered by this Policy is subject to an aggregate limit of liability in the Primary Policy then the limit of liability under this Policy shall, as respects such hazard, apply in the aggregate for the Policy Period.

4. If the Hazards Covered by this Policy include liability arising out of the ownership, operation or use of aircraft by the Insured and if the Primary Policy provides that its terms apply separately to each such aircraft, then the terms of this Policy shall also, as respects that hazard, apply separately to each such aircraft.

EXCLUSIONS

This Policy does not apply:

1. To any loss suffered by the Insured as a result of the inability, refusal or failure to pay of the Primary and/or Underlying Excess Insurers for any reason whatsoever including, without limitation, any financial impairment, insolvency or liquidation.

2. To claims excluded by the attached Noise and Pollution and Other Perils Exclusion Clause.

3. To claims excluded by the attached Nuclear Risks Exclusion Clause.

4. To claims excluded by the attached War, Hi-Jacking and Other Perils Exclusion Clause.

5. To claims excluded by the attached Date Recognition Exclusion Clause.

6. To claims excluded by the attached Contracts (Rights of Third Parties) Act 1999 Exclusion Clause.

DEFINITIONS

1. “Ultimate Net Loss” means the amount payable in settlement of the liability of the Insured after making deductions for all recoveries and other valid and collectible insurances, excepting however the Primary and Underlying Excess Policies, and shall exclude all Excluded Costs and Permitted Costs.

2. “Excluded Costs” means all office expenses of the Insured, all expenses for salaried employees of the Insured and general retainer fees for Counsel normally paid by the Insured.

3. “Permitted Costs” means interest accruing after entry of judgement, investigation, adjustment and legal expenses (excluding however all expenses for salaried employees of the Insured and general retainer fees for Counsel normally paid by the Insured).

4. “Occurrence” shall be deemed to have the same meaning in this Policy as is attributed to it in the Primary Policy but, notwithstanding the foregoing, for the purposes of this Policy all legal obligations of the Insured to pay damages arising out of exposure to substantially the same general conditions shall be deemed to arise out of one Occurrence.

CONDITIONS PRECEDENT

It is necessary that the Insured observes and fulfils the following condition before the Insurers have any liability to make any payments under this Policy.

1. Maintenance of Primary and Underlying Excess Insurance

The Insured shall maintain the Primary and Underlying Excess Policies in full effect during the currency of this Policy except for any reduction of any aggregate limits contained therein solely by payment of claims in respect of Occurrences during the Policy Period stated in Item 2 of the Policy Schedule. If the Primary and Underlying Excess Policies are not so maintained in full effect at all times during the currency of this Policy, coverage under this Policy shall immediately cease.

GENERAL CONDITIONS

1. In respect of the Hazards Covered set forth in Item 3 of the Policy Schedule, this Policy is subject (except as regards the Premium, the obligation to investigate and defend, the renewal agreement, if any, the amount and limit of liability other than the deductible or self-insurance provision where applicable, and except as otherwise provided herein), to the same warranties, terms, conditions, definitions and exclusions as are contained in or may be added to the Primary Policy prior to the happening of an Occurrence for which claim is made hereunder. Should any alteration be made in the premium for the Primary Policy during the currency of this Policy, the Insured shall give notice within thirty (30) days thereof to the Insurers who shall have the right to amend the Premium hereon accordingly.

2. Attachment of Liability

Liability to pay under this Policy shall not attach unless and until the Primary and Underlying Excess Insurers have paid or have been held liable to pay the full amount of the Primary and Underlying Excess Limit(s) as set forth in Item 4 (a) of the Policy Schedule.

3. Incurring of Permitted Costs

In the event of a claim or claims arising which appear likely to exceed the Primary and Underlying Excess Limit(s), no Permitted Costs shall be incurred by the Insured without the consent of the Insurers.

4. Apportionment of Costs

Permitted Costs incurred by or on behalf of the Insured with the written consent of the Insurers, and for which the Insured is not covered by the Primary and Underlying Excess Insurers, shall be apportioned as follows:

(a) Should any claim or claims be resolved prior to the commencement of trial for not more than the Primary and Underlying Excess Limit(s), then no Permitted Costs shall be payable by the Insurers.

(b) Should, however, the amount for which the said claim or claims may be resolved exceed the Primary and Underlying Excess Limit(s), then the Insurers, if they consent to the proceedings continuing, shall contribute to the Permitted Costs incurred by or on behalf of the Insured in the ratio that the amount they are liable to pay in respect of the Ultimate Net Loss bears to the whole amount of the Ultimate Net Loss.

In the event that the Insured elects not to appeal a judgement in excess of the Primary and Underlying Excess Limit(s) the Insurers may elect to conduct such appeal at their own cost and expense and shall be liable for the taxable or assessable court costs and interest incidental thereto, but in no event shall the total liability of the Insurers exceed the limit of liability under this Policy as provided for herein, plus the expenses of such appeal.

5. Application of Recoveries

All recoveries or payments recovered or received subsequent to a loss settlement under this Policy shall be applied as if recovered or received prior to such settlement and all necessary adjustments shall then be made between the Insured and the Insurers, provided always that nothing in this Policy shall be construed to mean that losses under this Policy are not payable until the Insured’s Ultimate Net Loss has been finally ascertained.

6. Notification of Claims

In the event of an Occurrence likely to give rise to a claim hereunder notice shall be given by the Insured to the Insurers as soon as reasonably possible, in accordance with Item 7 of the Policy Schedule.

7. Fraudulent Claims

If the Insured shall make any claim knowing the same to be false or fraudulent as regards amount or otherwise, this Policy shall become void and all claims hereunder shall be forfeited.

8. Law and Jurisdiction

This Policy shall be governed by the laws of England and Wales whose courts shall have exclusive jurisdiction in any dispute arising hereunder between the parties to this contract.

9. Variation in Risk

The Insured, upon being aware of any material change in the circumstances or nature of the risks covered by this Policy, shall give immediate notice thereof to the Insurers who shall have the right to amend the Premium hereon accordingly.

10. Cancellation

This Policy may be cancelled at any time at the written request of the Insured or may be cancelled by or on behalf of the Insurers provided not less than thirty (30) days notice in writing be given.

The premium to be retained by the Insurers in the event of cancellation by the Insured shall be calculated as follows:

(a) If the premium is on an adjustable basis: the earned premium hereon for the period that this Policy has been in force or the short rate proportion of any minimum premium calculated in accordance with the attached scale, whichever is the greater.

(b) If the premium is on a non-adjustable basis: the short rate proportion thereof calculated in accordance with the attached scale.

In the event of cancellation by the Insurers the premium due to the Insurers shall be calculated as in (a) and (b) above except that pro rata proportion shall be substituted for short rate proportion. Notice of cancellation by the Insurers shall be effective even though the Insurers make no payment or tender of return premium.

If the period of limitation relating to the giving of notice is prohibited or made void by any law controlling the construction hereof, such notice shall be deemed to be amended so as to be equal to the minimum period of limitation permitted by such law.

11. Other Insurance

To the extent that there is other insurance providing coverage to the subject claim (other than underlying insurance or insurance that is specifically intended to be excess of this Policy), the liability of the Insurers under this Policy shall be limited to their rateable proportion of the claim.

AVN 37B 10.10.02

AVIATION CANCELLATION SCALE
(applicable to Annual Policies)

1 month on risk ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... .. 20% annual premium
2 months on risk ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...30% annual premium
3 months on risk ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...40% annual premium
4 months on risk ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...50% annual premium
5 months on risk ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...60% annual premium
6 months on risk ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...70% annual premium
7 months on risk ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...75% annual premium
8 months on risk ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...80% annual premium
9 months on risk ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ...85% annual premium

Over 9 months equivalent to Annual.

AVN 37B 10.10.02

AVN 36

2009-05-01T02:15:00.002-07:00

SPREADER CLAUSE ‘‘B’’
(FOR ATTACHMENT TO PASSENGER VOLUNTARY SETTLEMENT ENDORSEMENT)

Notwithstanding anything contained herein to the contrary, it is understood and agreed that if in any Accident resulting in a claim under this insurance the number of passengers in the Aircraft exceeds the number stated in the Schedule forming part of the Passenger Voluntary Settlement Endorsement, then provided there is no violation of the limitations imposed by the Civil Aeronautics Authority and/or the Airworthiness Certificate as to seating capacity or maximum allowable gross weight, this insurance shall nevertheless remain effective, but the Limit of Settlement to be offered under the said Endorsement for death or loss of two limbs or loss of sight of two eyes or loss of one limb and loss of sight of one eye or permanent total disablement in respect of any passenger shall be calculated by dividing the ‘‘each Accident’’ limit stated in the said Endorsement by the total number of passengers in the Aircraft. The Limit of Settlement to be offered for loss of one limb or loss of sight of one eye shall also be reduced pro rata. Nevertheless this insurance shall be null and void in the event that the number of passengers carried in the Aircraft at the time of the accident exceeds that declared in the Policy.

It is further understood and agreed that except as specifically provided in the foregoing to the contrary, this Clause is subject to the terms, exclusions, conditions and limitations of the Policy to which it is attached.

AVN 36 5.12.61

AVN 35

2009-05-01T02:15:00.001-07:00

SPREADER CLAUSE ‘‘A’’
(FOR ATTACHMENT TO PASSENGER VOLUNTARY SETTLEMENT ENDORSEMENT)

Notwithstanding anything contained herein to the contrary, it is understood and agreed that if in any Accident resulting in a claim under this insurance the number of passengers in the Aircraft exceeds the number stated in either the Schedule forming part of the Passenger Voluntary Settlement Endorsement or the Declarations in the main Policy, then provided there is no violation of the limitations imposed by the Civil Aeronautics Authority and/or the Airworthiness Certificate as to seating capacity or maximum allowable gross weight, this insurance shall nevertheless remain effective, but the Limit of Settlement to be offered under the said Endorsement for death or loss of two limbs or loss of sight of two eyes or loss of one limb and loss of sight of one eye or permanent total disablement in respect of any passenger shall be calculated by dividing the ‘‘each Accident’’ limit stated in the said Endorsement by the total number of passengers in the Aircraft. The Limit of Settlement to be offered for loss of one limb or loss of sight of one eye shall also be reduced pro rata.

It is further understood and agreed that except as specifically provided in the foregoing to the contrary, this Clause is subject to the terms, exclusions, conditions and limitations of the Policy to which it is attached.

AVN 35 5.12.61

AVN 34A

2009-05-01T02:14:00.002-07:00

PASSENGER VOLUNTARY SETTLEMENT ENDORSEMENT

1. In consideration of an additional premium of ………………… , it is agreed that the Insurers will at the request of and regardless of legal liability of the Named Insured offer settlement on the basis of the benefits hereinafter set forth in respect of bodily injury sustained by any passenger caused by an Accident provided that at the time of such Accident causing such bodily injury the Passenger Liability Section of the Policy is effective in respect of such Accident.

2. LIMITS OF SETTLEMENT

For death or for total loss of two limbs or total loss of sight of two eyes or total loss of one limb and total loss of sight of one eye (or any combination thereof) the amount offered shall not exceed the amount expressed as the limit of settlement for “each passenger” shown below; or

For total loss of one limb or total loss of sight of one eye the amount offered shall not exceed one half of the amount expressed as the limit of settlement for “each passenger” shown below.

For permanent total disablement other than by loss of limbs or sight the amount offered shall not exceed the amount expressed as the limit of settlement for “each passenger” shown below.

Subject to the limit for “each passenger” the total of the amounts which the Insurers shall offer on account of bodily injury sustained by two or more passengers in any one Accident shall not exceed the amount expressed as the limit of settlement for “each Accident” shown below.

3. DEFINITIONS

“ACCIDENT” means any one accident or series of accidents arising out of one event.

“LOSS OF A LIMB” means loss by physical separation of a hand at or above the wrist or of a foot at or above the ankle.

“TOTAL LOSS OF SIGHT” means loss of sight which is certified as being entire and irrecoverable by a licensed ophthalmologist.

“PERMANENT TOTAL DISABLEMENT” means disablement which has for twelve months from the date of the Accident necessarily and continuously disabled the passenger from attending to business or occupation of any and every kind or if he has no business or occupation confined him immediately and continuously to the house and prevented him from attending to any of his usual duties (if any) and at the expiry of that twelve months period being beyond hope of improvement.

4. ADDITIONAL EXCLUSIONS

The Insurers shall not be liable under the terms of this Endorsement
(a) for any payment which may be used to satisfy that obligation for which the Insured or any Company as his insurer may be held liable under workers compensation, employers liability, unemployment compensation or disability benefits law or any similar law;

(b) for bodily injury to any passenger caused by his suicide or attempted suicide or intentional self-injury or own criminal or felonious act or by his own act whilst in a state of insanity or intoxication;

(c)` for bodily injury to any passenger caused by disease or natural causes, or medical or surgical treatment (except where such treatment is rendered necessary by bodily injury caused by Accident within the scope of this Endorsement);

(d) for bodily injury to any passenger carried for hire or reward;

(e) for bodily injury to any member of the flight or cabin crew.

5. ADDITIONAL CONDITIONS

(a) The Insured shall furnish, as soon as practicable after each request from the Insurers, reasonably obtainable information pertaining to bodily injury sustained by passengers. In the event of death immediate notice must be sent to the Insurers.

(b) In consideration of any settlement under the provisions of this Endorsement and as a condition precedent thereto, the Insurers shall be provided with a full legal release for all claims for damages against the Insured and/or any other party(ies) protected by this Policy from the injured passenger and/or any person having a cause of action for such bodily injury. If the injured passenger or any person claiming by, through or under him shall fail to accept in writing within thirty (30) days from the date of offering the voluntary settlement under the provisions of this Endorsement or to execute the necessary release then the Insurers may, at their option, withdraw the offered voluntary settlement, without notice, in which circumstances the Insurers will no longer be bound by the undertakings expressed in the preceding paragraphs. If subsequent to an offer of voluntary settlement being made in respect of any passenger any claim suit or demand is made or prosecuted against the Insured for damages on account of such bodily injury, such claim suit or demand shall be considered as refusal to accept such voluntary settlement and the obligations of the Insurers as expressed in the Passenger Liability Section of the Policy to which this Endorsement is attached, shall be available as fully and completely as if this Endorsement had not been issued.

Limits of Settlement

Each passenger Each Accident

________________________________________

It is understood and agreed that, except as specifically provided in the foregoing to the contrary, this Endorsement is subject to the terms, exclusions, conditions and limitations of the Policy to which it is attached.

AVN 34A 30.4.02

AVN 32

2009-05-01T02:14:00.001-07:00

GLIDERS (LAUNCHING SITES) CLAUSE

It is hereby understood and agreed that this Policy shall not apply whilst the insured Glider is being prepared for launching or actually being launched on or from a site other than a recognised aerodrome or a suitable site habitually used for the purpose of launching gliders and recognised and/or authorised for this purpose by the appropriate authorities.

AVN 32 1.10.96

AVN 29

2009-05-01T02:13:00.000-07:00

MANUFACTURER AS ADDITIONAL INSURED

Agreed to include ..................................................... as an Additional Insured but only in so far as their interests arise as owners (in whole or in part) of the insured Aircraft.

This agreement shall not operate to prejudice Insurers’ rights of recourse against .............…....................... as manufacturers, repairers, suppliers or servicing agents where such rights of recourse would have existed had this endorsement not been effected under this Policy.

AVN 29 1.10.96

AVN 28B

2009-05-01T02:12:00.002-07:00

AIRCRAFT FINANCIAL INTEREST ENDORSEMENT

It is noted that the Party named in the Schedule hereto has a financial interest in the Aircraft under the Agreement. Accordingly, with respect to losses occurring during the period from the Effective Date of this Endorsement until the expiry of the Insurance or until the satisfaction of the obligations under the Agreement, whichever shall first occur, in respect of the interest of the Party and in consideration of an Additional Premium IT IS UNDERSTOOD AND AGREED THAT:

1. The insurance afforded by this Policy for loss of or physical damage to the insured Aircraft shall not be invalidated as regards the interest of the Party by any act or omission by the Insured which results in a breach of any term, condition or warranty of the Policy PROVIDED THAT the Party has not caused, contributed to or knowingly condoned the said act or omission. Nevertheless any change in title or ownership of the Aircraft, conversion, embezzlement or secretion by the Insured in possession of the Aircraft is not covered hereunder.

2. The protection afforded to the Party by the terms of this Endorsement shall be limited to loss of or physical damage to the insured Aircraft and shall not exceed the Original Amount under the Agreement less any relevant Policy Deductible and less all matured Instalments paid or due prior to the accident giving rise to a loss hereunder.

3. The Party shall notify the Insurers of any increase in hazard which comes to the Party’s attention and if agreed by the Insurers it shall be endorsed on the Policy, the Party agreeing to pay any additional required premium if the Insured fails to do so on demand of the Insurers.

4. If the Insured fails to notify the Insurers as specified in the Policy Conditions of any event likely to give rise to a claim under the Policy, the Party shall do so immediately he becomes aware of the event in form and manner as prescribed by the Policy.

5. Upon payment of any loss or claim to the Party, Insurers shall to the extent and in respect of such payment be subrogated to all legal and equitable rights of the Party. At the expense of Insurers the Party shall do whatever is necessary to assist the Insurers to exercise such rights.

6. Except in respect of any provision for Cancellation or Automatic Termination specified in the Policy or any endorsement thereof, cover provided by this Endorsement may only be cancelled by Insurers giving not less than Thirty (30) days notice in writing to the Appointed Broker. Notice shall be deemed to commence from the date such notice is given by the Insurers. In the event of cancellation for non-payment of premium, the Party shall have the option to pay all outstanding premiums in respect of the Aircraft within the notice period.

EXCEPT AS SPECIFICALLY VARIED OR PROVIDED BY THE TERMS OF THIS ENDORSEMENT THE FINANCIAL INTEREST OF THE PARTY IS COVERED BY THE POLICY FOR LOSS OF OR PHYSICAL DAMAGE TO THE INSURED AIRCRAFT ONLY SUBJECT TO ALL TERMS, CONDITIONS, LIMITATIONS, WARRANTIES, EXCLUSIONS AND CANCELLATION PROVISIONS THEREOF.

SCHEDULE IDENTIFYING TERMS USED IN THIS ENDORSEMENT

1. Aircraft: Registration:

2. Party (enter the name of the Party having a financial interest):

3. Agreement (enter identifying details and date):

4. The Original Amount under the Agreement:

Payable in Instalments of

the last Instalment being due

The amount outstanding at the Effective Date of this Endorsement:

5. Policy Deductible:

6. Effective Date of this Endorsement:

7. Additional Premium:

8. Appointed Broker:

AVN 28B 17.10.96

AVN 26A

2009-05-01T02:12:00.001-07:00

AIRCRAFT LAYING-UP RETURNS CLAUSE

In the event of the Aircraft hereby insured being laid up, the Flight and Taxiing cover under all Sections of this Policy shall be suspended during the period of lay-up and credit under the Aircraft loss or physical damage Section of the Policy will be adjusted on expiry of the Policy subject to the following conditions:-

1. Notice must be given to Insurers by the Insured prior to and upon termination of the lay-up.

2. No return of premium shall be made

(a) in respect of any period during which the Aircraft is laid up for maintenance, overhaul or repair;

(b) unless the period of lay-up is of at least 30 consecutive days, but should the period defined in (a) occur during lay-up then the Insured shall be entitled to add the lay-up days prior to and subsequent to the period defined in (a) in computing the period of 30 days or more for which a return may be made;

(c) if a claim in respect of the Aircraft concerned has been made on this Policy.

Subject always to the foregoing conditions the return shall be 75 per cent of pro rata of the difference between the annual Flight risk premium and the annual Ground risk premium (as agreed by the Insurers) for the actual period of lay-up as defined above.

In the event of the Aircraft being laid up for a period of 30 days or more, a part only of which attaches to this Policy and part to the renewal Policy, then this Policy shall return premium proportionately.

AVN 26A 4.2.02

AVN 25

2009-05-01T02:11:00.002-07:00

CLAIMS CONTROL CLAUSE

Notwithstanding anything herein contained to the contrary, it is a condition precedent to any liability under this Policy that

(a) the Reinsured shall, upon knowledge of any loss or losses which may give rise to a claim under this Policy, advise the Reinsurers thereof within 72 hours;

(b) the Reinsured shall furnish the Reinsurers with all information available respecting such loss or losses, and the Reinsurers shall have the right to appoint adjusters, assessors and/or surveyors and to control all negotiations, adjustments and settlements in connection with such loss or losses.

AVN 25 1.10.96

AVN 24

2009-05-01T02:11:00.001-07:00

BURNING COSTS CLAUSE

The Premium to be paid to Insurers hereon shall be calculated at a provisional Rate of 0000% per annum on the insured value of the Aircraft. As soon as practicable after the total claims (including claims expenses less salvages and/or refunds and/or recoveries) payable under this Policy are ascertained, the above mentioned Rate of % shall be adjusted so that the total gross Premium under this Policy is equal to % of the total claims (including claims expenses less salvages and/or refunds and/or recoveries) subject however to a minimum annual Rate of % and a maximum annual Rate of %.

AVN 24 1.10.96

AVN 23A

2009-05-01T02:10:00.004-07:00

UNLICENSED LANDING GROUND SUITABILITY CLAUSE

It is understood and agreed that the landing and taking off of the insured Aircraft by day on landing grounds other than licensed airfields are covered under this Policy.

Provided always that

(a) the Insured and/or the pilot conducting the flight has obtained the permission of the owner or tenant of the land,

(b) the Insured and/or the pilot conducting the flight has ascertained the suitability of the landing ground and has enquired from the landowner/tenant or from their authorised representative the condition of the landing ground at the expected time of arrival,

(c) the pilot conducting the flight has surveyed the landing ground by flypast or overflight immediately prior to landing.

In the event of a claim being made under this Policy in respect of an Accident occurring during the use of such landing ground the onus of proving that (a) (b) and (c) above had been complied with shall rest entirely on the Insured.

AVN 23A 4.2.02

AVN 22

2009-05-01T02:10:00.003-07:00

DEFICIT CLAUSE (THREE YEARS)

It is agreed that in the event of this contract showing a loss on the result of any one year, the total amount of such loss shall be debited to the Profit Account for the ensuing year or years, but no Profit Commission shall be considered as earned on any ensuing year or years until the previous loss has been balanced and a credit balance again restored. It being further understood and agreed that any such loss referred to above shall not be carried forward for more than three consecutive years.

AVN 22 1.10.96

AVN 21

2009-05-01T02:10:00.001-07:00

CLAIMS CO-OPERATION CLAUSE

Notwithstanding anything herein contained to the contrary, it is a condition precedent to any liability under this Policy that

(a) the Reinsured shall upon knowledge of any loss or losses which may give rise to a claim under this Policy advise the Reinsurers thereof within seven days;

(b) the Reinsured shall furnish the Reinsurers with all information available respecting such loss or losses and shall co-operate with the Reinsurers in the adjustment and settlement thereof.

AVN 21 1.10.96

AVN 20

2009-05-01T02:09:00.003-07:00

LLOYD’S AIRCRAFT LIABILITY POLICY (U.S.A.)

WE, UNDERWRITERS AT LLOYD’S, London, agree with the Insured, named in the Declarations made a part hereof, in consideration of the payment of the premium and in reliance upon the statements in the Declarations and subject to the limits of liability, Exclusions, Conditions and other Terms of this Policy.

INSURING AGREEMENTS
I COVERAGE A—BODILY INJURY LIABILITY (EXCLUDING PASSENGERS)
To pay on behalf of the Insured all sums which the Insured shall become legally obligated to pay as damages, including damages for care and loss of services, because of bodily injury, sickness or disease, including death at any time resulting therefrom, sustained by any person, excluding any passenger, caused by an occurrence and arising out of the ownership, maintenance or use of the Aircraft.

COVERAGE B—PROPERTY DAMAGE LIABILITY
To pay on behalf of the Insured all sums which the Insured shall become legally obligated to pay as damages because of injury to or destruction of property, including the loss of use thereof, caused by an occurrence and arising out of the ownership, maintenance or use of the Aircraft.

COVERAGE C—PASSENGER BODILY INJURY LIABILITY
To pay on behalf of the Insured all sums which the Insured shall become legally obligated to pay as damages, including damages for care and loss of services, because of bodily injury, sickness or disease, including death at any time resulting therefrom, sustained by any passenger, caused by an occurrence and arising out of the ownership, maintenance or use of the Aircraft.

COVERAGE D—SINGLE LIMIT—BODILY INJURY (INCLUDING PASSENGERS) AND PROPERTY DAMAGE LIABILITY
To pay on behalf of the Insured all sums which the Insured shall become legally obligated to pay as damages, including damages for care and loss of services, because of bodily injury, sickness or disease, including death at any time resulting therefrom, sustained by any person, and for damages because of injury to or destruction of property, including loss of use thereof, caused by an occurrence and arising out of the ownership, maintenance or use of the Aircraft.

COVERAGE E—SINGLE LIMIT—BODILY INJURY (EXCLUDING PASSENGERS) AND PROPERTY DAMAGE LIABILITY
To pay on behalf of the Insured all sums which the Insured shall become legally obligated to pay as damages, including damages for care and loss of services, because of bodily injury, sickness or disease, including death at any time resulting therefrom, sustained by any person, excluding any passenger, and for damages because of injury to or destruction of property, including loss of use thereof, caused by an occurrence and arising out of the ownership, maintenance or use of the Aircraft.

COVERAGE F—MEDICAL PAYMENTS
To pay all reasonable expenses incurred within one year from the date of accident for necessary medical, surgical, ambulance, hospital, professional nursing and funeral services, to or for each person except the pilot or crew unless specifically stated as “included’’ in the Declarations, who sustains bodily injury, sickness or disease, caused by accident, while in, entering or alighting from the Aircraft if the Aircraft is being used by the Named Insured or with his permission.

AVN 20 1.11.64

With respect to Insuring Agreements IV and V the insurance afforded by this coverage shall be excess insurance over any other valid and collectible medical payments insurance applicable thereto.

II DEFENSE, SETTLEMENT, SUPPLEMENTARY PAYMENTS
Coverages A, B, C, D and E.
As respects such insurance as is afforded by the other terms of this Policy the Underwriters shall:

(a) defend in the name of and on behalf of the Insured any suit or other proceedings, even if groundless, false or fraudulent, brought against the Insured alleging such injury, sickness, disease or destruction and seeking damages on account thereof; but the Underwriters shall have the right to make such investigation, negotiation and settlement of any claim or suit as they deem expedient;

(b) pay all premiums on bonds to release attachments for an amount not in excess of the applicable limit of liability of this Policy, all premiums on appeal bonds required in any such defended suit, but without any obligation to apply for or furnish any such bonds;

(c) pay all costs taxed against the Insured in any such suit or proceedings and all interest accruing after entry of judgment until the Underwriters have paid, tendered or deposited in court, such part of such judgment as does not exceed the applicable limit of Underwriters’ liability as stated herein; provided that in the event of the amount of such judgment exceeding the applicable limit of Underwriters’ liability, the Underwriters shall only be liable to pay for that proportion of the said costs and interest which the applicable limit of Underwriters’ liability bears to the amount of such judgment;

(d) pay expenses incurred by the Insured for such immediate medical and surgical relief to others as shall be imperative at the time of the accident;

(e) pay all expenses incurred by the Underwriters for investigation, adjustment and defense, and reimburse the Insured for all reasonable expenses, other than loss of earnings, incurred at the Underwriters’ request.

The amounts incurred under this Insuring Agreement, except settlements of claims and suits, are payable by the Underwriters in addition to the applicable limit of liability of this Policy.

III DEFINITION OF INSURED
The term Named Insured shall mean only the Insured specified in Declaration 1.

The unqualified term Insured wherever used in this Policy with respect to Coverages A, B, C, D and E includes not only the Named Insured but also, within the scope of the Declarations, any person while using the Aircraft on behalf of or with approval of the Named Insured, or any person or organization legally responsible for its use, provided the actual use is with the expressed permission of the Named Insured.

Notwithstanding the provisions of this Insuring Agreement the coverage provided by this Policy for persons or organizations other than the Named Insured does not apply:—

(a) to any person or organization with respect to bodily injury, sickness, disease or death of any person who is a Named Insured;

(b) to any employee or official of an Insured with respect to any action brought against said employee or official because of bodily injury, sickness, disease or death of another employee of the same Insured injured in the course of such employment in an occurrence arising out of the maintenance or use of the Aircraft in the business of such Insured;

(c) to any person or organization, or to any agent or employee thereof (other than agents or employees of the Named Insured) engaged in the manufacture of aircraft, aircraft engines, or aircraft accessories, or operating an aircraft repair shop, airport, hangar, aircraft sales agency, flying club or flying school, with respect to any occurrence arising out of such manufacture or operation;

(d) to any person receiving instruction, either dual or solo, nor to any renter pilot, unless such use is declared in (D) of Item 4 of the Declarations;

(e) to any person or organization with respect to any loss against which he has other valid and collectible insurance.

IV TEMPORARY USE OF SUBSTITUTE AIRCRAFT
While an Aircraft owned by the Named Insured is withdrawn from normal use because of its breakdown, repair, servicing, loss or destruction, such insurance as is afforded by this Policy with respect to such Aircraft applies also with respect to another Aircraft of similar type, horse-power, and seating capacity, not so owned while temporarily used as the substitute for such Aircraft. This Insuring Agreement does not cover as an Insured the owner of the substitute Aircraft or any agent or employee of such owner.

V AUTOMATIC INSURANCE OF NEWLY ACQUIRED AIRCRAFT
(1) If the Named Insured who is the owner of the Aircraft the uses of which are declared under Item 4 of the Declarations acquires ownership of another Aircraft of similar type, horse-power, and seating capacity, and so notifies the Underwriters within thirty days following the date of its delivery to him, such insurance as is afforded by this Policy applies also to such Aircraft as of such delivery date;

(a) if it replaces an Aircraft described in this Policy, but only to the extent the insurance is applicable to the replaced Aircraft, or

(b) if it is an additional Aircraft and if the Underwriters insure all Aircraft owned by the Named Insured at such delivery date, but only to the extent the insurance is applicable to all such previously owned Aircraft. In no event, however, shall the Underwriters be liable under this provision for more than the highest limit applicable for each person or accident as stated in the Declarations of this Policy.

(2) This Insuring Agreement does not apply:

(a) to any loss against which the Named Insured has other valid and collectible insurance, or

(b) except during the Policy period, but if such delivery date is prior to the effective date of this Policy, the insurance applies as of such effective date.

The Named Insured shall pay the prescribed additional premium required because of the application of the insurance to such other Aircraft.

The insurance terminates upon the replaced Aircraft on such delivery date.

VI POLICY PERIOD, TERRITORY, PURPOSES OF USE
This Policy applies only in respect of accidents or occurrences happening during the Policy period while the Aircraft is within the Continental limits of the United States of America (excluding Alaska), Canada, or the Republic of Mexico, and is owned, maintained and used for the purposes stated as applicable thereto in the Declarations.

VII TWO OR MORE AIRCRAFT
When two or more Aircraft are insured hereunder the terms of this Policy shall apply separately to each.

EXCLUSIONS

THIS POLICY DOES NOT APPLY:-

(1) To liability assumed by the Insured under any contract or agreement unless such liability would have attached to the Insured even in the absence of such Agreement.

(2) While the Aircraft is in flight unless its Airworthiness Certificate is in full force and effect.

(3) While the Aircraft is used for any unlawful purpose or is operated otherwise than in compliance with the terms of its Airworthiness Certificate and the approved operating limitations contained in its Airplane Flight Manual or other documents associated with the Airworthiness Certificate or is being operated by any person other than the pilot(s) stated in Item 5 of the Declarations (other than taxying by certificated pilots or licensed mechanics) or is operated by any such person in violation of the terms and limitations of his Pilot’s Certificate or Medical Certificate, as issued by the appropriate authority.

(4) If the total number of passengers carried in the Aircraft at the time of the happening of any loss or damage exceeds the Declared Maximum stated in Item 3 of the Declarations.

(5) While with the knowledge and consent of the Insured or of any executive officer or partner if the Insured be a corporation or partnership the Aircraft is being operated in violation of the Civil Air Regulations applying to acrobatic flying, instrument flying, repairs, maintenance, inspection, alterations and night flying.

(6) While the Aircraft is used for any purpose other than as stated in the Declarations.

(7) While the Aircraft is being used for or in connection with any race, speed or endurance test, any attempt at record breaking, acrobatic flying, crop dusting, spraying, seeding, fertilisation, hunting, bird or fowl herding unless such use is declared in (D) of Item 4 of the Declarations; or any use in respect of which a waiver or special authority issued by the Civil Aeronautics Authority or the appropriate Authority is required, whether granted or not.

(8) To bodily injury to or sickness, disease or death of any employee of the Insured arising out of and in the course of his employment, or to any obligation for which the Insured or any company as his insurer may be held liable under any workmen’s compensation law.

(9) To injury to or destruction of property owned, rented, occupied or used by or in the care, custody or control of the Insured or carried in or on the Aircraft.

(10) To loss or damage or any liability of the Insured directly or indirectly occasioned by, happening through or in consequence of military, naval or usurped power whether in time of peace or war and whether lawful or unlawful, war, invasion, civil war, revolution, rebellion, insurrection or warlike operations, whether there be a declaration of war or not.

DEFINITIONS

‘‘IN FLIGHT’’. The Aircraft shall be deemed to be in flight from the time the Aircraft moves forward in taking off or in attempting to take off for air transit, while in the air and until the Aircraft comes to rest after landing or, the landing run having been safely completed, power is applied for taxying. A rotorcraft shall be deemed to be in flight when the rotors are in motion.

‘‘PASSENGER’’ shall mean any person while in, on or boarding the Aircraft for the purpose of riding or flying therein or alighting from the Aircraft following flight or attempted flight therein.

‘‘CIVIL AERONAUTICS AUTHORITY’’ shall mean the duly constituted Authority of the government of the United States of America, or the Authority of the recognized government of any other country in which this Policy may apply, having jurisdiction over Civil Aviation.

‘‘OCCURRENCE’’ shall mean an accident, or a continued or repeated exposure to conditions occurring during the Policy period, which results in injury during the Policy period, provided the injury is accidentally caused. All damages arising out of such exposure to substantially the same general conditions shall be deemed to arise out of one occurrence.

CONDITIONS

1. NOTICE OF ACCIDENT
When an accident or an occurrence takes place which is liable to result in a claim under this Policy, written notice shall be given by or on behalf of the Insured to the Underwriters or any of their representatives as soon as practicable. Such notice shall contain particulars sufficient to identify the Insured and also reasonably obtainable information respecting the time, place and circumstances of the accident or occurrence, the names and addresses of the injured and of available witnesses.

2. NOTICE OF CLAIM OR SUIT—EXCEPT IN RESPECT TO COVERAGE F
If claim is made or suit is brought against the Insured the Insured shall immediately forward to the Underwriters or any of their representatives every demand, notice, summons or other process received by him or his representative.

3. MEDICAL REPORTS; PROOF AND PAYMENT OF CLAIM—IN RESPECT TO COVERAGE F ONLY
As soon as practicable, the injured person or someone on his behalf shall give to the Underwriters or any of their representatives written proof of claim, under oath if required, and shall, after each request from the Underwriters, execute authorization to enable the Underwriters to obtain medical reports and copies of records. The injured person shall submit to physical examination by physicians selected by the Underwriters when and as often as the Underwriters may reasonably require. The Underwriters may pay the injured person or any person or organization on account of the services rendered and such payment shall reduce the amount payable hereunder to or for such injured person for such injury. Such payment shall not constitute admission of liability of the Insured or of the Underwriters under any other Coverage hereunder.

4. ASSISTANCE AND CO-OPERATION OF THE INSURED EXCEPT IN RESPECT OF COVERAGE F
The Insured shall co-operate with the Underwriters and, upon the Underwriters’ request, shall attend hearings and trials and shall assist in effecting settlements, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of suits. The Insured shall not, except at his own cost, voluntarily make any payment assume any obligation or incur any expense, other than for such immediate medical and surgical relief to others as shall be imperative at the time of accident.

5. LIMITS OF LIABILITY
(a) The limit of liability stated in the Declarations for Coverages A and C as applicable to ‘‘each person’’ is the limit of the Underwriters’ liability for all damages arising out of bodily injury, sickness or disease, including death at any time resulting therefrom, sustained by one person in any one occurrence; the limit of such liability stated as applicable to ‘‘each occurrence’’ is, subject to the above provision respecting each person, the total limit of the Underwriters’ liability for all damages, arising out of bodily injury, sickness, or disease, including death at any time resulting therefrom, sustained by two or more persons in any one occurrence.

(b) The limit of liability stated in the Declarations for Coverage B is the limit of the Underwriters’ liability for all damages arising out of any one occurrence.

(c) The limit of liability stated in the Declarations for Coverages D & E is the limit of the Underwriters’ liability for all damages arising out of any one occurrence.

(d) The limit of liability stated in the Declarations for Coverage F as applicable to ‘‘each person’’ is the limit of the Underwriters’ liability for all expenses incurred by or on behalf of each person who sustains bodily injury, sickness or disease, including death resulting therefrom, in any one accident; the limit of liability stated herein as applicable to ‘‘each accident’’ is, subject to the above provision respecting each person, the total limit of the Underwriters’ liability for all expenses incurred by or on behalf of two or more persons who sustain bodily injury, sickness or disease, including death resulting therefrom in any one accident.

Notwithstanding the inclusion herein of more than one Insured whether by endorsement or otherwise, the total liability of the Underwriters under each Coverage in respect of any or all Insureds shall not exceed the limit(s) stated in the Declarations.

6. FINANCIAL RESPONSIBILITY LAWS—COVERAGES A, B, C, D AND E
Such insurance as is afforded by this Policy under coverages A, B, C, D and E shall comply with the provisions of any Financial Responsibility Law, or other Law applicable to Aircraft with respect to financial responsibility or liability arising out of the ownership, maintenance or use of Aircraft during the Policy period. However, the foregoing shall not apply to any type of coverage not afforded by this Policy nor shall it apply to any amount or amounts in excess of the limit or limits of liability provided in the Policy. The Insured agrees to reimburse the Underwriters for any payment made by the Underwriters which the Underwriters would not have been obligated to make under the terms of this Policy but for the agreement contained in this paragraph.

7. OTHER INSURANCE
If the Insured has other insurance against a loss covered by this Policy, the Underwriters shall not be liable under this Policy for a greater proportion of such loss than the applicable limit of liability stated in the Declarations bears to the total applicable limit of liability of all valid and collectible insurance against such loss; provided, however, the insurance under Insuring Agreements IV and V shall be excess insurance over any other valid and collectible insurance available to the Insured, either as an Insured under a Policy applicable with respect to the Aircraft or otherwise against a loss covered under either or both of said Insuring Agreements.

8. CHANGES
Notice to any agent or knowledge possessed by any agent or by any other person shall not effect a waiver or a change in any part of this Policy or estop the Underwriters from asserting any right under this Policy; nor shall any part of this Policy be waived or changed, except by endorsement signed by the Underwriters and issued to form part of this Policy.

9. ASSIGNMENT
This Policy shall not be assigned in whole or in part except with the consent of the Underwriters verified by endorsement signed by the Underwriters and issued to form part of this Policy; if, however, the Named Insured shall die or be adjudged bankrupt or insolvent within the Policy period, this Policy, unless cancelled, shall, if written notice be given to the Underwriters within thirty days after the date of such death or adjudication, cover (a) the Named Insured’s legal representative as the Named Insured and (b) under Coverages A, B, C, D and E subject otherwise to the provisions of Insuring Agreement III, any person having proper temporary custody of the Aircraft, as an Insured, and under Coverage F while the Aircraft is used by such person, until the appointment and qualification of such legal representative but in no event for a period of more than thirty days after the date of such death or adjudication.

10. CANCELLATION
This Policy may be cancelled by the Named Insured by surrender thereof or by mailing to the Underwriters written notice stating when thereafter such cancellation shall be effective. This Policy may be cancelled by the Underwriters by mailing to the Named Insured at the address shown in this Policy written notice stating when not less than ten days thereafter such cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice and the effective date and hour of cancellation stated in the notice shall become the end of the Policy period. Delivery of such written notice either by the Named Insured or by the Underwriters shall be equivalent to mailing.

If the Named Insured cancels, earned premiums shall be computed in accordance with the customary short rate table and procedure. If the Underwriters cancel, earned premiums shall be computed pro rata. Premium adjustment may be made at the time cancellation is effected and, if not then made, shall be made as soon as practicable after cancellation becomes effective. The Underwriters’ check or the check of their representative mailed or delivered as aforesaid shall be sufficient tender of any refund of premium due to the Named Insured.

11. SERVICE OF SUIT
It is agreed that in the event of the failure of the Underwriters to pay any amount claimed to be due hereunder, the Underwriters, at the request of the Named Insured, will submit to the jurisdiction of any Court of competent jurisdiction within the United States and will comply with all requirements necessary to give such Court jurisdiction and all matters arising hereunder shall be determined in accordance with the law and practice of such Court.

It is further agreed that service of process in such suit may be made upon
, and
that in any suit instituted against any one of them upon this Policy, the Underwriters will abide by the final decision of such Court or of any Appellate Court in the event of an appeal.

The above-named are authorised and directed to accept service of process on behalf of the Underwriters in any such suit and/or upon the request of the Named Insured to give written undertaking to the Named Insured that they will enter a general appearance upon the Underwriters’ behalf in the event such a suit shall be instituted.

Further, pursuant to any statute of any state, territory or district of the United States which makes provision therefor, the Underwriters hereby designate the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose in the statute or his successor or successors in office, as their true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf of the Named Insured or any beneficiary hereunder arising out of this Policy and hereby designate the above-named as the person to whom the said officer is authorised to mail such process or a true copy thereof.

12. ACTION AGAINST UNDERWRITERS—COVERAGES A, B, C, D AND E
No action shall lie against the Underwriters unless, as a condition precedent thereto, the Insured shall have fully complied with all of the terms of this Policy, nor until the amount of the Insured’s obligation to pay shall have been finally determined either by judgment against the Insured after actual trial or by written agreement of the Insured, the Claimant and the Underwriters. Any person or organization or the legal representative thereof who has secured such judgment or written agreement shall thereafter be entitled to recover under this Policy to the extent of the insurance afforded by this Policy. Nothing contained in this Policy shall give any person or organization any right to join the Underwriters as a co-defendant in any action against the Insured to determine the Insured’s liability. Bankruptcy or insolvency of the Insured or of the Insured’s estate shall not relieve the Underwriters of any of their obligations hereunder.

13. ACTION AGAINST UNDERWRITERS IN RESPECT TO COVERAGE F
No action shall lie against the Underwriters unless as a condition precedent thereto, there shall have been full compliance with all the terms of this Policy, nor until thirty days after the required statements of claim have been filed with the Underwriters.

14. SCHEDULE OF STATEMENTS
By acceptance of this Policy the Named Insured agrees that the statements in the Declarations are his agreements and representations, that this Policy is issued in reliance upon the truth of such representations and that this Policy embodies all agreements existing between himself and the Underwriters relating to this insurance.

15. MISREPRESENTATION AND FRAUD
This Policy shall be void if the Named Insured has concealed or misrepresented any material fact or circumstance whether under the Declarations or not concerning this insurance or the subject thereof or in case of any fraud, attempted fraud or false swearing by the Insured touching any matter relating to this insurance or the subject thereof, whether before or after a loss.

DECLARATIONS

ITEM 1
Name of Insured
(hereinafter referred to as the Insured)

Address

Business or Occupation of the Insured is

The Insured’s interest in the Aircraft is that of

ITEM 2
The period of insurance hereunder begins on the
and ends on the ………………………………………. (both at 12.01 a.m. Standard Time at
the Insured’s address as stated).

ITEM 3
The insurance afforded is only with respect to such and so many of the following coverages as are indicated by specific premium charge or charges. The limit of Underwriters’ liability against each such coverage shall be as stated herein, subject to all the terms of the Policy having reference thereto.

COVERAGES (As described in the Insuring Agreements)

LIMITS OF LIABILITY PREMIUMS
A BODILY INJURY LIABILITY
(excluding passengers) $
$ each person
each occurrence
B PROPERTY DAMAGE LIABILITY $ each occurrence
C PASSENGER BODILY INJURY
LIABILITY $
$ each person
each occurrence
D
SINGLE LIMIT BODILY INJURY
(including passengers) and PROPERTY DAMAGE LIABILITY

$

each occurrence
E
SINGLE LIMIT BODILY INJURY
(excluding passengers) and
PROPERTY DAMAGE LIABILITY

$

each occurrence
F
MEDICAL PAYMENTS
* Including/Excluding Pilot
* Including/Excluding Crew
* Delete as required
$
$
each person
each accident

Total Premium

DESCRIPTION OF AIRCRAFT

Identification
Marks.

Category.

Year built, Make,
Model Serial No.

Type *

Engine H.P.,
Make, Model. Declared maximum number of passengers (excluding crew) to be carried at any one time.

* Landplane, seaplane, skiplane, amphibian or rotorcraft.

ITEM 4
USE: The purposes for which the Aircraft will be used are (Indicate those required.)

(A) ‘‘BUSINESS AND PLEASURE’’

(B ) ‘‘INDUSTRIAL AID’’

(C) ‘‘LIMITED COMMERCIAL’’

(D) ‘‘COMMERCIAL’’, including special uses (See (D) below)

(A) ‘‘BUSINESS AND PLEASURE’’ shall mean personal, pleasure, family and business use, excluding any operation for hire or reward, or for instruction.

(B) ‘‘INDUSTRIAL AID’’ shall mean all the uses stated in (A) also the transportation of executives, employees, guests of the Insured, goods and merchandise, but excluding any operation for hire or reward, or for instruction.

(C) ‘‘LIMITED COMMERCIAL’’ shall mean all the uses stated in (A) and (B) also the carriage of passengers and freight for hire or reward, but excluding any form of instruction or rental to others.

(D) ‘‘COMMERCIAL’’ shall mean the uses stated in (A), (B) and (C) also use for any other purpose as specifically declared above.

ITEM 5
The Aircraft will be operated in flight only by the following pilot(s):

Name
Certificate and Number
Pilot and Aircraft Ratings

ITEM 6
No Insurer has ever cancelled or declined to issue or renew any Aircraft insurance to the Named Insured, except as follows:

AVN 20 1.11.64

AVN 19A

2009-05-01T02:09:00.001-07:00

ADDITIONS AND DELETIONS
(Combined)

1. The insurance afforded by this Policy is automatically extended to include at pro rata additional premium further Aircraft added during the currency of this Policy provided such Aircraft are owned or operated by the Insured and are of the same type and value as Aircraft already covered hereunder and of no greater seating capacity.

2. The inclusion of additional Aircraft of other types or different values or greater seating capacity shall be subject to special agreement and rating by Insurers prior to attachment.

3 Under the Aircraft loss or physical damage Section of this Policy Aircraft which have been sold or disposed of shall be deleted from this Policy and the Insured shall be entitled to pro rata return of premium provided no claim has arisen and become payable in respect of such Aircraft under the Aircraft loss or physical damage Section of this Policy and that this Policy is not cancelled by virtue of such deletion.

4. Under the liability Section(s) of this Policy Aircraft which have been sold or disposed of shall be deleted from this Policy and the Insured shall be entitled to pro rata return of premium.

Provided always that

(i) Notwithstanding the foregoing provisions for additions and deletions the premium in respect of each separate period of Flight risk insurance on any Aircraft covered during the currency of this Policy shall in no case be less than fifteen days' pro rata premium.

(ii) In the event of a claim arising in respect of any Aircraft added hereto being settled on a total loss basis the full twelve months' Aircraft loss or physical damage premium shall be paid hereunder in respect of such Aircraft.

(iii) Notice of the addition or deletion of any Aircraft under the provisions of Paragraphs 1, 3 and 4 respectively shall be given to the Insurers or their representatives in writing within ten days of attachment or deletion.

AVN 19A 18.3.02

AVN 18A

2009-05-01T02:08:00.001-07:00

ADDITIONS AND DELETIONS
(Applicable to Liabilities only)

1. The insurance afforded by this Policy is automatically extended to include at pro rata additional premium further Aircraft added during the currency of this Policy provided such Aircraft are owned or operated by the Insured and are of the same type as Aircraft already covered hereunder and of no greater seating capacity.

2. The inclusion of additional Aircraft of other types or greater seating capacity shall be subject to special agreement and rating by Insurers prior to attachment.

3. Aircraft which have been sold or disposed of shall be deleted from this Policy and the Insured shall be entitled to pro rata return of premium.

4. Notwithstanding the foregoing provisions for additions and deletions the premium in respect of each separate period of Flight Risk insurance on any Aircraft covered during the currency of this policy shall in no case be less than fifteen days’ pro rata premium.

5. Notice of the addition or deletion of any Aircraft under the provisions of Paragraphs 1 and 3 respectively shall be given to the Insurers or their representatives in writing within ten days of attachment or deletion

AVN 18A 1.10.96

AVN 17A

2009-05-01T02:07:00.001-07:00

ADDITIONS AND DELETIONS`
(Applicable to Hulls only)

1. The insurance afforded by this Policy is automatically extended to include at pro rata additional premium further Aircraft added during the currency of this Policy provided such Aircraft are owned or operated by the Insured and are of the same type and value as Aircraft already covered hereunder.

2. The inclusion of additional Aircraft of other types or different values shall be subject to special agreement and rating by Insurers prior to attachment.

3. Aircraft which have been sold or disposal of shall be deleted from this Policy and the Insured shall be entitled to pro rata return of premium provided no claim has arisen and become payable under this Policy in respect of such Aircraft, and that this Policy is not cancelled by virtue of such deletion.

ALWAYS PROVIDED THAT:-
(i) Notwithstanding the foregoing provisions for additions and deletions the premium in respect of each separate period of Flight Risk Insurance on any Aircraft covered during the currency of this Policy shall in no case be less than fifteen days' pro rata premium.

(ii) In the event of a claim arising in respect of any Aircraft added hereto being settled on a total loss basis the full twelve months' premium shall be paid hereunder in respect of such Aircraft.

(iii) Notice of the addition or deletion of any Aircraft under the provisions of Paragraphs 1 and 3 respectively shall be given to the Insurers or their representatives in writing within ten days of attachment or deletion.

AVN 17A 1.10.96

AVN 16

2009-05-01T02:06:00.004-07:00

LLOYD’S AIRCRAFT HULL POLICY (U.S.A.)

WE, UNDERWRITERS AT LLOYD’S, London, agree with the Insured, named in the Declarations made a part hereof, in consideration of the payment of the premium and in reliance upon the statements in the Declarations and subject to the limits of liability, Exclusions, Conditions and other Terms of this Policy:-

INSURING AGREEMENTS

1. COVERAGE A —FLIGHT, TAXYING, ON THE GROUND OR MOORED
To pay for direct physical loss of or damage to the Aircraft including disappearance if the Aircraft is unreported for sixty (60) days after the commencement of flight but only for the amount of each separate loss less the applicable deductible stated in Item 3 of the Declarations.

2. COVERAGE B—TAXYING, ON THE GROUND OR MOORED
To pay for direct physical loss of or damage to the Aircraft while not in flight but only for the amount of each separate loss less the applicable deductible stated in Item 3 of the Declarations.

3. COVERAGE C—ON THE GROUND OR MOORED
To pay for direct physical loss of or damage to the Aircraft while not in flight or taxying but only for the amount of each separate loss less the applicable deductible stated in Item 3 of the Declarations.

4. POLICY PERIOD, TERRITORY, PURPOSES OF USE
This Policy applies only to direct physical loss of or damage to the Aircraft which is sustained during the Policy period while the Aircraft is within the Continental limits of the United States of America (excluding Alaska), Canada, or the Republic of Mexico, or is being transported between ports thereof, and is owned, maintained and used for the purpose stated as applicable thereto in the Declarations.

5. TWO OR MORE AIRCRAFT
When two or more Aircraft are insured hereunder the terms of this Policy shall apply separately to each.

EXCLUSIONS

THIS POLICY DOES NOT APPLY:-
(a) to loss of use, depreciation, or deterioration; nor to any damage which is due and confined to wear and tear, freezing, mechanical, structural, electrical, hydraulic or pneumatic breakdown or failure, but this exclusion shall not apply to (1) other loss or damage covered by this Policy resulting from such wear and tear, freezing, mechanical, structural, electrical, hydraulic or pneumatic breakdown, (2) such loss or damage by wear and tear, freezing, mechanical, structural, electrical, hydraulic or pneumatic breakdown or failure which results directly from other loss covered by this Policy.

AVN 16 6.11.56

(b) to loss or damage due to (1) capture, seizure, arrest, restraint or detention or the consequences thereof or of any attempt thereat, or any taking of the property insured or damage to or destruction thereof by any Government or Governmental or Civil Authority or agent (whether secret or otherwise) or by any military, naval or usurped power, whether any of the foregoing be done by way of requisition or otherwise and whether in time of peace or war and whether lawful or unlawful; (2) war, invasion, civil war, revolution, rebellion, insurrection or warlike operations, whether there be a declaration of war or not; (3) strikes, riots or civil commotions.

(c) to loss or damage due to wrongful conversion, embezzlement or secretion of the Aircraft by any person in lawful possession thereof under a licence, lease, mortgage, conditional sale or other agreement, or under an agreement with the Insured, whether written, oral or implied.

(d) while the Aircraft is in flight unless its Airworthiness Certificate is in full force and effect.

(e) while the Aircraft is used for any unlawful purpose or is operated otherwise than in compliance with the terms of its Airworthiness Certificate and the approved operating limitations contained in its Airplane Flight Manual or other documents associated with the Airworthiness Certificate, or is being operated by any person other than the pilot(s) stated in Item 5 of the Declarations (other than taxying by certificated pilots or licensed mechanics) or is operated by any such person in violation of the terms and limitations of his Pilot’s Certificate or Medical Certificate, as issued by the appropriate authority.

(f) if the total number of passengers carried in the Aircraft at the time of the happening of any loss or damage exceeds the Declared Maximum Number of Passengers stated in Item 3 of the Declarations.

(g) while with the knowledge and consent of the Insured or of any executive officer or partner if the Insured be a corporation or partnership the Aircraft is being operated in violation of the Civil Air Regulations applying to acrobatic flying, instrument flying, repairs, maintenance, inspection, alterations and night flying.

(h) while the Aircraft is used for any purpose other than as stated in the Declarations.

(j) while the Aircraft is being used for or in connection with any race, speed or endurance test, any attempt at record breaking, acrobatic flying, crop dusting, spraying, seeding, fertilisation, hunting, bird or fowl herding, unless such use is declared in (D) of Item 4 of the Declarations; or any use in respect to which a waiver or special authority issued by the Civil Aeronautics Authority or the appropriate Authority is required, whether granted or not.

(k) while the Aircraft is changed or converted into a type other than that stated in the Declarations.

(l) following a transfer of the interest of the Insured in the Aircraft without the written consent of the Underwriters; or whilst the Aircraft is subject to any lien, mortgage or other encumbrance not specifically declared and described in this Policy.

DEFINITIONS

“AIRCRAFT”. The word “Aircraft” wherever used in this Policy, shall mean the Aircraft described herein, and in addition to the airframe shall include power plants, propellers, rotors and appliances forming part of the Aircraft at the inception of coverage hereunder, including parts detached and not replaced by other similar parts.

“IN FLIGHT”. The Aircraft shall be deemed to be in flight from the time the Aircraft moves forward in taking off or in attempting to take off for air transit, while in the air and until the Aircraft comes to rest after landing or, the landing run having been safely completed, power is applied for taxying. A rotorcraft shall be deemed to be in flight when the rotors are in motion.

“TAXYING” shall mean while the Aircraft is moving under its own power or momentum generated thereby other than in flight as defined, but in the case of water alighting Aircraft “Taxying” shall be deemed to mean while the Aircraft is afloat and is not “In Flight” or “Moored.”

“MOORED” shall mean while the Aircraft is afloat and made fast to its moorings, or is being launched or hauled up.

“CIVIL AERONAUTICS AUTHORITY” shall mean the duly constituted Authority of the government of the United States of America, or the authority of the recognized government of any other country in which this Policy may apply, having jurisdiction over Civil Aviation.

CONDITIONS

1. INSURED’S DUTIES WHEN LOSS OCCURS

When loss occurs, the Insured shall:

(a) take all reasonable measures to protect the Aircraft, whether or not the loss is covered by this Policy, and any further loss due to the Insured’s failure to do so shall not be recoverable under this Policy; reasonable expense incurred in affording such protection, provided the loss is covered by this Policy, shall be deemed incurred at the Underwriters’ request.

(b) give notice thereof as soon as practicable to the Underwriters and also in the event of theft, larceny, robbery, pilferage or vandalism, to the Police. The Underwriters shall not be responsible for the payment of a reward offered for the recovery of the insured property unless authorised by the Underwriters or their representatives.

(c) file proof of loss with the Underwriters’ representatives within sixty (60) days after the occurrence of loss, unless such time is extended in writing by the Underwriters, in the form of a sworn statement of the Insured setting forth the interest of the Insured and of all others in the property affected, any encumbrances thereon, the actual cash value thereof at the time of loss; the amount, place, time and cause of such loss, the amount of all insurance whether valid and collectible or not, covering said property; and the Insured as often as required shall submit to examination under oath by any person named by the Underwriters and subscribe the same; upon the request of the Underwriters the Insured shall exhibit the damaged property to the Underwriters or their representatives, and as often as required shall produce for examination all logbooks, and all books of accounts, bills, invoices, and other vouchers, or certified copies thereof if the originals be lost, at such reasonable place as may be designated by the Underwriters or their representatives and shall permit extracts and copies thereof to be made.

2. ASSISTANCE AND CO-OPERATION OF THE INSURED
The Insured shall co-operate with the Underwriters and, upon the Underwriters’ request, shall attend hearings and trials and shall assist in effecting settlements, securing and giving evidence, obtaining the attendance of witnesses and in the conduct of suits. The Insured shall not, except at his own cost, voluntarily make any payment, assume any obligation or incur any expense.

3. LIMIT OF LIABILITY; SETTLEMENT OPTIONS; NO ABANDONMENT
The liability of the Underwriters for direct physical loss of or damage to the Aircraft shall not exceed the amount of insurance set out in the Declarations, less the applicable deductible, nor what it would cost to repair or replace the Aircraft or parts thereof with other of like kind and quality, and without compensation for loss of use. The Underwriters may pay for the loss in money or may repair or replace the Aircraft or parts thereof, as aforesaid, or may return any stolen property with payment for any resultant damage thereto at any time before the loss is paid or the property is so replaced, or may take all or such part of the Aircraft at the agreed or appraised value, but there shall be no abandonment to the Underwriters.

In the case of partial physical loss of or damage to the Aircraft when repairs are effected by the Insured the liability of the Underwriters shall not exceed the actual cost of any parts or materials necessary to effect repairs or replacement plus 150% of the actual cost of labour to the Insured without any further allowance for overhead or overtime; when the repairs are made by other than the Insured, the actual costs as evidenced by bills rendered to the Insured, less any discount granted to the Insured, excluding cost of overtime and its related overhead unless previously agreed to by the Underwriters. The amount of such loss shall include the cost of transporting new or damaged parts or of transporting the damaged Aircraft to the place of repair and subsequent return to the airport nearest to the place of accident, or home airport, whichever be the nearer, but shall be limited to the least expensive method of reasonable transportation.

In no event shall the liability of the Underwriters for partial physical loss of or damage to the Aircraft exceed the amount for which the Underwriters would be liable were the loss payable as a total loss.

4. SUBSTITUTIONS
Power plant and/or propellers and/or rotors and/or appliances of like make or type may be substituted. The value of any such installed substituted item shall not exceed the value of the item originally installed unless endorsed hereon and any required additional premium paid hereon.

5. APPRAISAL
If the Insured and the Underwriters fail to agree as to the amount of loss, each shall, on the written demand of either, made within sixty days after receipt of proof of loss by the Underwriters, select a competent and disinterested appraiser, and the appraisal shall be made at a reasonable time and place. The appraisers shall first select a competent and disinterested umpire, and failing for fifteen days to agree upon such umpire, then on request of the Insured or the Underwriters, such umpire shall be selected by a judge of a court of record in the county and state in which such appraisal is pending. The appraisers shall then appraise the loss, stating separately the actual cash value at the time of the loss and the amount of loss in respect of each item, and failing to agree, shall submit their differences to the umpire. An award in writing of any two shall determine the amount of loss. The Insured and the Underwriters shall each pay his or their chosen appraiser and shall bear equally the other expenses of the appraisal and umpire.

The Underwriters shall not be held to have waived any of their rights by any act relating to appraisal.

6. OTHER INSURANCE
If there be other insurance against loss or damage covered by this Policy, the Underwriters shall not be liable under this Policy for a greater proportion of such loss or damage than the amount of insurance stated in the Declarations bears to the total amount of valid and collectible insurance against such loss or damage.

7. NO BENEFIT TO BAILEE
The insurance afforded by this Policy shall not enure directly or indirectly to the benefit of any carrier or bailee.

8. REINSTATEMENT
In the event of loss whether or not covered by this Policy the amount of insurance in respect to any Aircraft shall be reduced as of the time and date of loss by the amount of such loss and such reduced value shall continue until repairs are commenced. The insurance shall then be increased by the value of the completed repairs until the amount of insurance is fully reinstated or the Policy has expired.

9. SUBROGATION
In the event of any payment under this Policy, the Underwriters shall be subrogated to all the Insured’s rights of recovery therefor against any person or organization and the Insured shall execute and deliver instruments and papers and do whatever else is necessary to secure such rights. The Insured shall do nothing after loss to prejudice such rights.

10. CHANGES
Notice to any agent or knowledge possessed by any agent or by any other person shall not effect a waiver or a change in any part of this Policy or estop the Underwriters from asserting any right under this Policy; nor shall any part of this Policy be waived or changed, except by endorsement signed by the Underwriters and issued to form part of this Policy.

11. ASSIGNMENT
This Policy shall not be assigned in whole or in part except with the consent of the Underwriters verified by endorsement signed by the Underwriters and issued to form part of this Policy; if, however, the Insured shall die or be adjudged bankrupt or insolvent within the Policy period, this Policy, unless cancelled, shall, if written notice be given to the Underwriters within thirty days after the date of such death or adjudication, cover the Insured’s legal representative as the Insured.

12. CANCELLATION
This Policy may be cancelled by the Insured by surrender thereof or by mailing to the Underwriters written notice stating when thereafter such cancellation shall be effective. This Policy may be cancelled by the Underwriters by mailing to the Insured at the address shown in this Policy written notice stating when not less than ten days thereafter such cancellation shall be effective. The mailing of notice as aforesaid shall be sufficient proof of notice and the effective date and hour of cancellation stated in the notice shall become the end of the Policy period. Delivery of such written notice either by the Insured or by the Underwriters shall be equivalent to mailing.

If the Insured cancels, earned premiums shall be computed in accordance with the customary short rate table and procedure. If the Underwriters cancel, earned premiums shall be computed pro rata. Premium adjustment may be made at the time cancellation is effected and, if not then made, shall be made as soon as practicable after cancellation becomes effective. The Underwriters’ check or the check of their representative mailed or delivered as aforesaid shall be sufficient tender of any refund of premium due to the Insured.

No Return Premium shall be paid to the Insured as to any Aircraft on which a loss under this Policy, adjustable on the basis of a total loss, has occurred.

13. TERMS OF POLICY CONFORMED TO STATUTE
Terms of this Policy which are in conflict with the statutes of the state wherein this Policy has application are hereby amended to conform to such statutes.

14. ACTION AGAINST UNDERWRITERS
No action shall lie against the Underwriters unless as a Condition precedent thereto the Insured shall have fully complied with all the terms of this Policy nor until sixty days after proof of loss shall have been filed and the amount of loss shall have been determined as provided in this Policy nor unless such action shall have been commenced within twelve months next after the happening of the loss.

15. SERVICE OF SUIT
It is agreed that in the event of the failure of the Underwriters to pay any amount claimed to be due hereunder, the Underwriters, at the request of the Insured, will submit to the jurisdiction of any Court of competent jurisdiction within the United States and will comply with all requirements necessary to give such Court jurisdiction and all matters arising hereunder shall be determined in accordance with the law and practice of such Court.

It is further agreed that service of process in such suit may be made upon
, and
that in any suit instituted against any one of them upon this Policy, the Underwriters will abide by the final decision of such Court or of any Appellate Court in the event of an appeal.

The above-named are authorised and directed to accept service of process on behalf of the Underwriters in any such suit and/or upon the request of the Insured to give a written undertaking to the Insured that they will enter a general appearance upon the Underwriters’ behalf in the event such a suit shall be instituted.

Further, pursuant to any statute of any state, territory or district of the United States which makes provision therefor, the Underwriters hereby designate the Superintendent, Commissioner or Director of Insurance or other officer specified for that purpose in the statute or his successor or successors in office, as their true and lawful attorney upon whom may be served any lawful process in any action, suit or proceeding instituted by or on behalf of the Insured or any beneficiary hereunder arising out of this Policy and hereby designate the above-named as the person to whom the said officer is authorised to mail such process or a true copy thereof.

16. SCHEDULE OF STATEMENTS
By acceptance of this Policy the Insured agrees that the statements in the Declarations are his agreements and representations, that this Policy is issued in reliance upon the truth of such representations and that this Policy embodies all agreements existing between himself and the Underwriters relating to this insurance.

17. MISREPRESENTATION AND FRAUD
This Policy shall be void if the Insured has concealed or misrepresented any material fact or circumstance whether under the Declarations or not concerning this insurance or the subject thereof or in case of any fraud, attempted fraud or false swearing by the Insured touching any matter relating to this insurance or the subject thereof, whether before or after a loss.

DECLARATIONS

ITEM 1
Name of Insured
(hereinafter referred to as the Insured.)

Address

Business or Occupation of the Insured is

The Insured’s interest in the Aircraft is that of

Amount of Mortgage or Encumbrance, if any, $

If the Aircraft is mortgaged or encumbered any loss covered hereunder is payable as
interest may appear to the Insured and

ITEM 2
The period of insurance hereunder begins on the

and ends on the (both at 12.01 a.m.
Standard Time at the Insured’s address as stated.)

ITEM 3
The insurance afforded is only with respect to such and so many of the following coverages as are indicated by specific premium charge or charges. The limit of Underwriters’ liability against each such coverage shall be the amount of insurance as stated herein, (less the stated deductible each loss each Aircraft) subject to all the terms of the Policy having reference thereto;
COVERAGES (As described in the Insuring Agreements)
(A) Flight, Taxying, On the Ground or Moored.
(B) Taxying, On the Ground or Moored.
(C) On the Ground or Moored.

DESCRIPTION OF AIRCRAFT AND AMOUNT OF INSURANCE

Identification
Marks

Category
Year built, Make, Model,
Serial No.
Type *

* Landplane, seaplane, skiplane, amphibian or rotorcraft.

Engine, H.P.,
Amount of Insurance
Declared Maximum PREMIUM
Make, Model Number of
Passengers to be Coverage
carried at any one
time A B C
$ $ $
$ $ $
$ $ $

TOTAL PREMIUM $

DEDUCTIBLES

Flight $ Not applicable to Total Loss of the Aircraft.
Taxying $
Ground $ Not applicable to Total Loss of the Aircraft, or fire
Moored $ or theft.

In the case of rotorcraft the Flight Deductible shall apply while the rotors are in motion.

ITEM 4
USE: The purposes for which the Aircraft will be used are (Indicate those required.)

(A) ‘‘BUSINESS AND PLEASURE’’

(B) ‘‘INDUSTRIAL AID’’

(C) ‘‘LIMITED COMMERCIAL’’

(D) ‘‘COMMERCIAL’’, including special uses (See (D) below)

(A) ‘‘BUSINESS AND PLEASURE’’ shall mean personal, pleasure, family and business use, excluding any operation for hire or reward, or for instruction.
(B) ‘‘INDUSTRIAL AID’’ shall mean all the uses stated in (A) also the transportation of executives, employees, guests of the Insured, goods and merchandise, but excluding any operation for hire or reward, or for instruction.
(C) ‘‘LIMITED COMMERCIAL’’ shall mean all the uses stated in (A) and (B) also the carriage of passengers and freight for hire or reward, but excluding any form of instruction or rental to others.
(D) ‘‘COMMERCIAL’’ shall mean the uses stated in (A), (B) and (C) also use for any other purpose as specifically declared above.

ITEM 5
The Aircraft will be operated in flight only by the following pilot(s):

Name
Certificate and Number
Pilot and Aircraft Ratings

ITEM 6
No Insurer has ever cancelled or declined to issue or renew any Aircraft insurance to the Insured, except as follows:

AVN 15

2009-05-01T02:06:00.003-07:00

LIMITATION OF LIABILITY ENDORSEMENT
(ADDITIONAL INSUREDS)

It is hereby understood and agreed that this Insurance is extended to cover the undermentioned as additional Insured(s), but only in respect of the coverage provided under this Policy.

It is further understood and agreed that notwithstanding the inclusion herein of more than one Insured, the total liability of the Insurers in respect of any or all Insureds shall not exceed the limit(s) of liability stated in this Policy.

Subject otherwise to all the terms, conditions, exclusions and limitations of the Policy.

In consideration of the foregoing the sum of .......................................... is paid hereon as an additional premium.
Additional Insured(s)

AVN 15 1.10.96

AVN 14

2009-05-01T02:06:00.001-07:00

LIMITATION OF LIABILITY CLAUSE
(JOINT INSUREDS)

Notwithstanding the inclusion herein of more than one Insured, whether by endorsement or otherwise, the total liability of the Insurers in respect of any or all Insureds shall not exceed the limit(s) of liability stated in this Policy.

AVN 14 1.10.96

AVN 9

2009-05-01T02:05:00.001-07:00

FULL PREMIUM
IN THE EVENT OF A CLAIM EXCEEDING PREMIUM PAID

It is understood and agreed that in the event of a claim arising hereunder which exceeds the premium paid the balance of the Full Annual Premium of ___________________ shall become due and payable forthwith.

AVN 9 1.10.96

AVN 8

2009-05-01T02:04:00.004-07:00

FULL PREMIUM IF LOST

It is understood and agreed that in the event of a claim arising hereunder adjustable on the basis of a Total Loss the Full Annual Premium of , less the amount of premium already paid, shall become due and payable forthwith.

AVN 8 1.10.96

AVN 6A

2009-05-01T02:04:00.003-07:00

PREMIUM PAYMENT CLAUSE

1) It is understood and agreed that the premium due at the inception of this Policy shall be payable in the following instalments:

2) In the event of a claim hereunder which exceeds the instalments of premium paid on this Policy, the instalments of premium then outstanding shall become payable forthwith.

3) Notwithstanding any cancellation provision contained within the Policy, in the event that an instalment of premium is not paid by its due date Insurers shall have the right to terminate the cover afforded by the Policy to the Insured and any other party(ies) protected thereby, whether by endorsement or otherwise, by the giving of not less than Thirty (30) days notice in writing to the Appointed Broker. Notice shall be deemed to commence from the date such notice is given by the Insurers.

Appointed Broker:

AVN 6A 17.10.96

AVN 5A

2009-05-01T02:04:00.001-07:00

DEFERRED PREMIUMS

It is hereby understood and agreed that the premium shall be paid in the following instalments:-

Nevertheless it is further understood and agreed that:-

Notwithstanding any provision as to notice of cancellation contained in this Policy, it is a condition that in the event of any instalment not being paid by its due date the cover afforded by this Policy shall be deemed to have ceased at midnight of such due date.

In the event of a claim hereunder which exceeds the instalments of premium paid on this Policy the instalments of premium then outstanding shall become payable forthwith.

AVN 5A 9.10.74

AVN 4A

2009-05-01T02:03:00.000-07:00

COMPONENT PARTS CLAUSE

It is understood and agreed that in the event of loss or damage to any Component Part of the Aircraft detailed below Insurers' liability shall not exceed the percentage of the total value of the Aircraft as shown in the Policy Schedule relating to that Component Part as shown on the Scale attached to this Clause. Such percentage shall include the cost of labour, material, replacement part, transportation and other incidental charges incurred in reinstating such loss or damage but the cost of transportation shall not exceed 15 per cent of the total value set against the Component Part.

The Insurers will in addition pay the cost of dismantling, inspecting, reassembling and transportation of undamaged parts as may be necessary and the test flying of the Aircraft up to 5 per cent of any admitted claim hereunder but not exceeding 2 per cent of the value of the Aircraft as stated in the Policy Schedule. Provided always that the total liability of the Insurers shall not exceed the value of the Aircraft as stated in the Policy Schedule.

In the event that a Component Part is no longer available the liability of the Insurers shall be limited to the percentage values as detailed on the attached Scale or the manufacturer's last published list price for such Component Part whichever is the lesser.

It is understood and agreed that, except as specifically provided in the foregoing to the contrary, this Clause is subject to the terms, exclusions, conditions and limitations of the Policy to which it is attached.

Aircraft ................................................................. Registration ..............................

AVN 4A 4.2.02

SPECIMEN

Aircraft .............................………………………… Registration ……….....................
SCALE

SPECIFIED COMPONENT
QUANTITY PERCENTAGE OF AIRCRAFT VALUE
EACH ALL

AVN 4A 4.2.02

AVN 1 C - London Aircraft Insurance

2009-05-01T01:59:00.000-07:00

LONDON AIRCRAFT INSURANCE POLICY

Headings and marginal captions are inserted for the purpose of convenient reference only and are not to be deemed part of this Policy.

Certain words and phrases used in this Policy have special meanings which can be found in Section IV(D) Definitions.

The Insurers agree to insure against loss, damage or liability, arising out of an Accident occurring during the Period of Insurance to the extent and in the manner provided in this Policy.

SECTION I LOSS OF OR DAMAGE TO AIRCRAFT

1. Coverage

(a) The Insurers will at their option pay for, replace or repair, accidental loss of or damage to the Aircraft described in the Schedule arising from the risks covered, including disappearance if the Aircraft is unreported for sixty days after the commencement of Flight, but not exceeding the Amount Insured as specified in Part 2(5) of the Schedule and subject to the amounts to be deducted specified in Condition 3(c).

(b) If the Aircraft is insured hereby for the risks of Flight, the Insurers will, in addition, pay reasonable emergency expenses necessarily incurred by the Insured for the immediate safety of the Aircraft consequent upon damage or forced landing, up to 10 per cent of the Amount Insured as specified in Part 2(5) of the Schedule.

2. Exclusions applicable to this Section only

The Insurers shall not be liable for

Wear and Tear,

Breakdown

(a) wear and tear, deterioration, breakdown, defect or failure howsoever caused in any Unit of the Aircraft and the consequences thereof within such Unit;

(b) damage to any Unit by anything which has a progressive or cumulative effect but damage attributable to a single recorded incident is covered under paragraph 1(a) above.

HOWEVER accidental loss of or damage to the Aircraft consequent upon 2(a) or (b) above is covered under paragraph 1(a) above.

3. Conditions applicable to this Section only

Dismantling

Transport and

Repairs

(a) If the Aircraft is damaged

(i) no dismantling or repairs shall be commenced without the consent of the Insurers except whatever is necessary in the interests of safety, or to prevent further damage, or to comply with orders issued by the appropriate authority;

(ii) the Insurers will pay only for repairs and transport of labour and materials by the most economical method unless the Insurers agree otherwise with the Insured.

AVN 1C 21.12.98

Payment or If the Insurers exercise their option to pay for or replace the Aircraft

Replacement

(b) If the Insurers exercise their option to pay for or replace the Aircraft

(i) the Insurers may take the Aircraft (together with all documents of record, registration and title thereto) as salvage;

(ii) the cover afforded by this Section is terminated in respect of the Aircraft even if the Aircraft is retained by the Insured for valuable consideration or otherwise;

(iii) the replacement aircraft shall be of the same make and type and in reasonably like condition unless otherwise agreed with the Insured.

Amounts to be

Deducted from the

Claim

(c) Except where the Insurers exercise their option to pay for or replace the Aircraft, there shall be deducted from the claim under paragraph 1(a) of this the Section

(i) the amount specified in Part 6(B) of the Schedule and

(ii) such proportion of the Overhaul Cost of any Unit repaired or replaced as the used time bears to the Overhaul Life of the Unit.

Abandonment

(d) Unless the Insurers elect to take the Aircraft as salvage the Aircraft shall at all times remain the property of the Insured who shall have no right of abandonment to the Insurers.

Other

Insurance

(e) (No claim shall be payable under this Section if other insurance which is payable in consequence of loss or damage covered under this Section has been or shall be effected by or on behalf of the Insured without the knowledge or consent of the Insurers.

See also Section IV

SECTION II LEGAL LIABILITY TO THIRD PARTIES

(OTHER THAN PASSENGERS)

1. Coverage

The Insurers will indemnify the Insured for all sums which the Insured shall become legally liable to pay, and shall pay, as compensatory damages (including costs awarded against the Insured) in respect of accidental bodily injury (fatal or otherwise) and accidental damage to property caused by the Aircraft or by any person or object falling therefrom.

2. Exclusions applicable to this Section only

The Insurers shall not be liable for

Employees and

Others

(a) injury (fatal or otherwise) or loss sustained by any director or employee of the Insured or partner in the Insured's business whilst acting in the course of his employment with or duties for the Insured

Operational

Crew

(b) injury (fatal or otherwise) or loss sustained by any member of the flight, cabin or other crew whilst engaged in the operation of the Aircraft;

Passengers

(c) injury (fatal or otherwise) or loss sustained by any passenger whilst entering, on board, or alighting from the Aircraft;

Property

(d) loss of or damage to any property belonging to or in the care, custody or control of the Insured;

Noise and Pollution and Other Perils

(e) claims excluded by the attached Noise and Pollution and Other Perils Pollution and Exclusion Clause.

3. Limit of Indemnity applicable to this Section

The liability of the Insurers under this Section shall not exceed the amount stated in Part 6(C) of the Schedule, less any amounts under Part 6(B). The Insurers will defray in addition any legal costs and expenses incurred with their written consent in defending any action which may be brought against the Insured in respect of any claim for compensatory damages covered by this Section, but should the amount paid or awarded in settlement of such claim exceed the Limit of Indemnity then the liability of the Insurers in respect of such legal costs and expenses shall be limited to such proportion of the said legal costs and expenses as the Limit of Indemnity bears to the amount paid for compensatory damages.

See also Section IV

SECTION III LEGAL LIABILITY TO PASSENGERS

1. Coverage

The Insurers will indemnify the Insured in respect of all sums which the Insured shall become legally liable to pay, and shall pay, as compensatory damages (including costs awarded against the Insured) in respect of

(a) accidental bodily injury (fatal or otherwise) to passengers whilst entering, on board, or alighting from the Aircraft and

(b) loss of or damage to baggage and personal articles of passengers arising out of an Accident to the Aircraft.

Provided always that

Documentary

Precautions

(i) before a passenger boards the Aircraft the Insured shall take such measures as are necessary to exclude or limit liability for claims under (a) and (b) above to the extent permitted by law;

(ii) if the measures referred to in proviso (i) above include the issue of a passenger ticket/baggage check, the same shall be delivered correctly completed to the passenger a reasonable time before the passenger boards the Aircraft.

Effect of

Non-

Compliance

In the event of failure to comply with proviso (i) or (ii) the liability of the Insurers under this Section shall not exceed the amount of the legal liability, if any, that would have existed had the proviso been complied with.

2. Exclusions applicable to this Section

The Insurers shall not be liable for injury (fatal or otherwise) or loss sustained by any

Employees and

Others

(a) director or employee of the Insured or partner in the Insured's business whilst acting in the course of his employment with or duties for the Insured;

Operational Crew

(b) member of the flight, cabin or other crew whilst engaged in the operation of the Aircraft.

3. Limits of Indemnity applicable to this Section

The liability of the Insurers under this Section shall not exceed the amounts stated in Part 6(C) of the Schedule, less any amounts under Part 6(B). The Insurers will defray in addition any legal costs and expenses incurred with their written consent in defending any action which may be brought against the Insured in respect of any claim for compensatory damages covered by this Section, but should the amount paid or awarded in settlement of such claim exceed the Limit of Indemnity then the liability of the Insurers in respect of such legal costs and expenses shall be limited to such proportion of the said legal costs and expenses as the Limit of Indemnity bears to the amount paid for compensatory damages.

See also Section IV

SECTION IV

(A) GENERAL EXCLUSIONS APPLICABLE TO ALL SECTIONS

This Policy does not apply:-

Illegal Uses

1. Whilst the Aircraft is being used for any illegal purpose or for any purpose other than those stated in Part 3 of the Schedule and as defined in the Definitions.

Geographical

Limits

2. Whilst the Aircraft is outside the geographical limits stated in Part 5 of the Limits Schedule unless due to force majeure

Pilots

3. Whilst the Aircraft is being piloted by any person other than as stated in Part 4 of the Schedule except that the Aircraft may be operated on the ground by any person competent for that purpose.

Transportation

by Other

Conveyance

4. Whilst the Aircraft is being transported by any means of conveyance except by Other as the result of an Accident giving rise to a claim under Section I of this Policy.

Landing and

Take-off Areas

5. Whilst the Aircraft is landing on or taking off or attempting to do so from a place which does not comply with the recommendations laid down by the manufacturer of the Aircraft except as a result of force majeure.

Contractual

Liability

6. To liability assumed or rights waived by the Insured under any agreement (other than a passenger ticket/baggage check issued under Section III hereof) except to the extent that such liability would have attached to the Insured in the absence of such agreement.

Number of

Passengers

7. Whilst the total number of passengers being carried in the Aircraft exceeds the declared maximum number of passengers stated in Part 2(4) of the Schedule.

Non-

Contribution

8. To claims which are payable under any other policy or policies except in respect of any excess beyond the amount which would have been payable under such other policy or policies had this Policy not been effected.

Nuclear Risks

9. To claims excluded by the attached Nuclear Risks Exclusion Clause.

War, Hijacking

And Other

Perils

10. To claims caused by

(a) War, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, martial law, military or usurped power or attempts at usurpation of power.

(b) Any hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.

(d) Any act of one or more persons, whether or not agents of a sovereign Power, for political or terrorist purposes and whether the loss or damage resulting therefrom is accidental or intentional.

(e) Any malicious act or act of sabotage.

(f) Confiscation, nationalisation, seizure, restraint, detention, appropriation, requisition for title or use by or under the order of any Government (whether civil military or de facto) or public or local authority.

(g) Hi-jacking or any unlawful seizure or wrongful exercise of control of the Aircraft or crew in Flight (including any attempt at such seizure or control) made by any person or persons on board the Aircraft acting without the consent of the Insured.

Furthermore this Policy does not cover claims arising whilst the Aircraft is outside the control of the Insured by reason of any of the above perils.

The Aircraft shall be deemed to have been restored to the control of the Insured on the safe return of the Aircraft to the Insured at an airfield not excluded by the geographical limits of this Policy, and entirely suitable for the operation of the Aircraft (such safe return shall require that the Aircraft be parked with engines shut down and under no duress).

(B) CONDITIONS PRECEDENT APPLICABLE TO ALL SECTIONS

It is necessary that the Insured observes and fulfils the following Conditions before the Insurers have any liability to make any payment under this Policy.

Due Diligence

1. The Insured shall at all times use due diligence and do and concur in doing everything reasonably practicable to avoid accidents and to avoid or diminish any loss hereon.

Compliance

with Air

Navigation

Orders, etc.

2. The Insured shall comply with all air navigation and airworthiness orders and requirements issued by any competent authority affecting the safe operation of the Aircraft and shall ensure that

(a) the Aircraft is airworthy at the commencement of each Flight;

(b) all Log Books and other records in connection with the Aircraft which are required by any official regulations in force from time to time shall be kept up to date and shall be produced to the Insurers or their agents on request;

Claims

Procedure

3. Immediate notice of any event likely to give rise to a claim under this Policy shall be given as stated in Part 8 of the Schedule. In all cases the Insured shall

(a) furnish full particulars in writing of such event and forward immediately notice of any claim with any letters or documents relating thereto;

(b) give notice of any impending prosecution;

(d) not act in any way to the detriment or prejudice of the interest of the Insurers.

The Insured shall not make any admission of liability or payment or offer or promise of payment without the written consent of the Insurers.

(C) GENERAL CONDITIONS APPLICABLE TO ALL SECTIONS

Claims Control

1. The Insurers shall be entitled (if they so elect) at any time and for so long as they desire to take absolute control of all negotiations and proceedings and in the name of the Insured to settle, defend or pursue any claim.

Subrogation

2. Upon an indemnity being given or a payment being made by the Insurers under this Policy, they shall be subrogated to the rights and remedies of the Insured who shall co-operate with and do all things necessary to assist the Insurers to exercise such rights and remedies.

Variation in Risk

3. Should there be any change in the circumstances or nature of the risks which Risk are the basis of this contract the Insured shall give immediate notice thereof to the Insurers and no claim arising subsequent to such change shall be recoverable hereunder unless such change has been accepted by the Insurers.

Cancellation

4. This Policy may be cancelled by either the Insurers or the Insured giving 10 days notice in writing of such cancellation. If cancelled by the Insurers they will return a pro rata portion of the premium in respect of the unexpired period of the Policy. If cancelled by the Insured a return of premium shall be at the discretion of the Insurers. There will be no return of premium in respect of any Aircraft on which a loss is paid or is payable under this Policy.

Assignment

5. This Policy shall not be assigned in whole or in part except with the consent of the Insurers verified by endorsement hereon.

Not Marine Insurance

6. This Policy is not and the parties hereto expressly agree that it shall not be construed as a policy of marine insurance.

Arbitration

7. This Policy shall be construed in accordance with English Law and any dispute or difference between the Insured and the Insurers shall be submitted to arbitration in London in accordance with the Statutory provision for arbitration for the time being in force.

Two or More Aircraft

8. When two or more Aircraft are insured hereunder the terms of this Policy apply separately to each.

Limit(s) of

Indemnity

9. Notwithstanding the inclusion herein of more than one Insured, whether by endorsement or otherwise, the total liability of the Insurers in respect of any or all Insureds shall not exceed the Limit(s) of Indemnity stated in this Policy.

False and Fraudulent

Claims

10. If the Insured shall make any claim knowing the same to be false or fraudulent as regards amount or otherwise this Policy shall become void and all claims hereunder shall be forfeited.

(D) DEFINITIONS

1. "ACCIDENT" means any one accident or series of accidents arising out of one event.

2. "UNIT" means a part or an assembly of parts (including any sub-assemblies) of the Aircraft which has been assigned an Overhaul Life as a part or an assembly. Nevertheless, an engine complete with all parts normally attached when removed for the purpose of overhaul or replacement shall together constitute a single Unit.

3. "OVERHAUL LIFE" means the amount of use, or operational and/or calendar time which, according to the Airworthiness Authority, determines when overhaul or replacement of a Unit is required.

4. “OVERHAUL COST" means the costs of labour and materials which are or would be incurred in overhaul or replacement (whichever is necessary) at the end of the Overhaul Life of the damaged or a similar Unit.

5. "PRIVATE PLEASURE" means use for private and pleasure purposes but NOT use for any business or profession nor for hire or reward.

6. "BUSINESS" means the uses stated in Private Pleasure and use for business or professional purposes but NOT use for hire or reward.

7. "COMMERCIAL" means the uses stated in Private Pleasure and Business and use for the carriage by the Insured of passengers, baggage accompanying passengers and cargo for hire or reward.

8. "RENTAL" means rental, lease, charter or hire by the Insured to any person, company or organisation for Private Pleasure and Business uses only, where the operation of the Aircraft is not under the control of the Insured. Rental for any other purpose is NOT insured under this Policy unless specifically declared to Insurers and the detail of such use(s) stated in Part 3 of the Schedule under SPECIAL RENTAL USES.

Definitions 5, 6, 7 and 8 constitute Standard Uses and do not include instruction, aerobatics, hunting, patrol, fire-fighting, the intentional dropping, spraying or release of anything, any form of experimental or competitive flying, and any other use involving abnormal hazard, but when cover is provided details of such use(s) are stated in Part 3 of the Schedule under SPECIAL USES.

9. "FLIGHT" means from the time the Aircraft moves forward in taking off or attempting to take off, whilst in the air, and until the Aircraft completes its landing run. A rotary-wing aircraft shall be deemed to be in Flight when the rotors are in motion as a result of engine power, the momentum generated therefrom, or autorotation.

10. "TAXIING" means movement of the Aircraft under its own power other than in Flight as defined above. Taxiing shall not be deemed to cease merely by reason of a temporary halting of the Aircraft.

11. "MOORED" means, in the case of aircraft designed to land on water, whilst the Aircraft is afloat and is not in Flight or Taxiing as defined above, and includes the risks of launching and hauling up.

12. "GROUND" means whilst the Aircraft is not in Flight or Taxiing or Moored as defined above.

Y2K Partial Exclusion Clause

2009-05-01T00:11:00.001-07:00

Y2K Partial Exclusion Clause

There is no insurance under this policy in respect of any claim of whatsoever nature which arises directly or indirectly from or consists of the failure of any :

a.Electronic circuit, microchip, integrated circuit, microprocessor, embedded system , hardware,
software, firmware, program, computer, data processing equipment, telecommunication equipment
or systems, or any similar device.
b.Media or systems used in connection with any of the foregoing

Whether the property of the Insured or not, at any time to achieve any or all the purposes and consequential effects intended by the use of any number, symbol or word to denote a date.

Including without limitation, the failure or inability to recognize, capture, save, retain or restore and/or correctly to manipulate, interpret, transmit, return, calculate or process any date, data, information, command, logic or instruction as a result of

i). Recognizing, using or adopting any date, day of the week or period of time, otherwise than as, the
true of correct date, day of the week or period of time.
ii) The operation of any command or logic which has been programmed or incorporated into anything
referred to in (a) or (b) above.

But this extension shall not exclude any claim for subsequent loss or destruction of or damage to any property or consequential loss which itself result from a defined contingency (as defined hereunder) but only to the extent that such claim would otherwise be insured under this policy.

Definition :
For the purpose of this exception only, “defined contingency” shall mean fire, lightning, explosion, aircraft and other aerial devices or articles dropped therefrom, riot, civil commotion, strikers, locked out workers, person taking part in labour disturbances, malicious persons other than thieves, earthquake, storm, flood, escape of water from any tank apparatus or pipe, impact by any road vehicle or animal or theft.
The insurance by this Policy extends to include tenants improvements and alteration to Landlord’s property insofar as the Insured is responsible therefore.

Y2K Exclusion Clause

2009-05-01T00:10:00.001-07:00

The Indemnity will not apply to legal liability

Of whatsoever nature directly or indirectly caused by or constributed to by or arising from the failure of any computer or other equipment or system for processing storing not retrieving data, whether the property of the Insured or not, and whether occurring before, during or after the year 2000

1. Correctly to recognize any date as its true calendar rate.
2. To capture save or retain, and/or correctly to manipulate, interpret or process any data or information or command or instruction as a result of treating any date otherwise as its true calendar date.
3. To capture save retain or correctly to process any data as result of the operation of any command which has been programmed into any computer software being a command which causes th loss of data or the inability to capture save retain or correctly to process such data on or after any date.

Worldwide Jurisdiction

2009-05-01T00:09:00.000-07:00

It is understood and agreed that the Insurer should indemnify tha insured in respect of :

A. Any compensation for injury loss or damages of judgements delivered or obtained through a court
wherever the claims occurred.

B. Any cost and expenses of litigation recovered by any claimant from the Insured which are
recoverable through a court wherever tha claims occurred.

C. Any cost and expenses incurred by the Insured in the defence of any claims in all over the world.

Workmen's Clause

2009-05-01T00:08:00.002-07:00

Workmen are allowed in and/or about any of the described premises for the purpose of making new erections or alterations, repair, decoration, plant installation, general maintenance and the like without prejudice to the terms and conditions of the Policy.

Water, Flood & Fumes Extension

2009-05-01T00:08:00.001-07:00

It is hereby declared and agreed that this policy extends to cover liability arising out of water, flood and fumes.

War & Civil War Exclusion Clause

2009-05-01T00:07:00.000-07:00

Notwithstanding anything to the contrary contained herein this policy does not cover Loss or Damage directly or indirectly occasioned by, happening through or in consequnece of war, invasion, acts of foreign enemies, hostilities, or war like operations (whether war be declared or not), civil war, insurrection / popular rising, rebellion, revolution, military or ursurped power or confiscation or nationalism or requisition or destruction of or damage to property by or under the order of any government or public or local authority.

Waiver of Survey Liability on the Policy Commencement

2009-05-01T00:06:00.000-07:00

In the event of Commencement of the Insurance cover, it is hereby noted and agreed that the Insurers waives the Survey Liability to the Unit vehicle(s) insured in the individual certificate and/or Policy.

Waiver of Subrogation Clause

2009-05-01T00:05:00.000-07:00

In the event of claim arising under this policy it is agreed that the Company waives all rights, remedies or relief to which it might become entitled by subrogation against any of parties comprising the Insured herein.

Vibration, Subsidence Collapse, Weakening of Support Clause

2009-05-01T00:04:00.002-07:00

It is agreed that the Insurance by this section extends to include all sums which the Insured shall become legally liable to pay in connection with damage to property other than property insured under section 1 caused by collapse, subsidence, vibration, weakening or removal of support of lowering of ground water arising out of or in the course of or by reason of the carrying out to the Insured Contracts.
1. Caused by the negligence, omission or default of the Contractor, his servants or agents or any of their Co-Contractors, Sub-Contractors and Suppliers their servants or agents.
2. Attributable to errors or omission in the designing of the work.

Vehicle Load Clause

2009-05-01T00:04:00.001-07:00

In the event of the Insured’s Property being left loaded in Vehicles or freight containers overnight while in, on or about the premises hereby insured the Insurer will indemnify the Insured for the loss of or damage to such Property caused by fire or any other peril insured hereby, provided always that the Insurer’s Liability shall not exceed the sum insured of Property under the Policy.

Unlicensed Vehicle Clause

2009-05-01T00:03:00.002-07:00

It is hereby understood and agreed that this policy extends to indemnify the Insured for claims in respect of bodily injury or damages to the property arising out of the use of vehicles (not licensed for public road) in and around the premises for the purpose of property maintenance and repair.

30 Days Cancellation Notice Clause

2009-05-01T00:03:00.001-07:00

Both the Insurer and the Insured are entitled to terminate this insurance upon thirty (30) days notice in writing being given. Such termination should be effected to the registered letter and the Insured entitle to a pro-rata return premium for the unexpired period of Insurance.

Theft Extension Memo

2009-05-01T00:01:00.000-07:00

It is hereby noted and agreed that in consideration of the Insured having paid an additional premium, this policy shall be extended to cover loss and/or damage to the insured property caused by Theft without any visible violent or forcible entry to the insured premises, provided always that this endorsement shall be deemed to exclude property stored in the open air.

The Return Premium Clause (1/3)

2009-05-01T00:00:00.000-07:00

If the Insured declares at the latest six months after the expiry of any policy year that the Gross Profit earned during the accounting period of twelve months most nearly concurrent with any period of insurance, as certified by the Insured’s auditors, was less than the sum insured thereon, a pro rata return of premium not exceeding one third of the premium paid on such sum insured for such period of insurance shall be made in respect of the difference.

If any loss destruction or damage has occurred giving rise to a claim under this policy, such return shall be made in respect only if so much of said difference as is not due to such loss destruction or damage.

Terrorism Exclusion (NMA 2920)

2009-04-30T23:59:00.001-07:00

Notwithstanding any provision to the contrary within this insurance or any endorsement thereto, it is agreed that this insurance exclude loss, damage, cost of whatsoever nature directly or indirectly caused by, resulting from or in connection with any act of terrorism regardless of any other cause or event contributing concurrently or in any other sequence to the loss.

For the purpose of this endorsement an act of terrorism means an act, including but not limited to the use of force or violence and/or the threat thereof, of any person or group (s) of persons, whether acting alone or on behalf of or in connection with any organization(s) or government(s), committed for political, religious, ideological or similar purposes including the intention to influence any government and/or to put the public, or any section of the public, in fear.

This endorsement also excludes loss, damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any action taken in controlling, preventing, surpressing or in any way relating to any act of terrorism.

If the Underwriters allege that by reasins of this exclusion, any loss, damage, cost or expense is not covered by this insurance the burden of proving the contrary shall be upon the Assured.

In the event any portion of this endorseement is found to be valid or unenforceable, the remainder shall remain in full force and effect.

NMA 2920
08/10/2001

Tenants Improvement Clause

2009-04-30T23:58:00.002-07:00

TENANTS IMPROVEMENTS CLAUSE
The insurance by this Policy extends to include tenants improvements and alteration to Landlord’s property insofar as the Insured is responsible therefore.

Temporary Removal Clause

2009-04-30T23:58:00.001-07:00

TEMPORARY REMOVAL CLAUSE
It is hereby agreed that the property insured by this Policy (other than any stock in trade or merchandise) is covered in respect of the perils hereby insured against whilst temporarily removed for cleaning, renovation, repair or other similar purposes, elsewhere on the same premises or any other premises in the Republic of Indonesia and in transit thereto and therefrom by road.
Provided always that:
1. The amount recoverable under this Extension in respect of each item of this Policy shall not exceed the amount which would have been recoverable …the loss occurred in that part of the premises from which the property temporarily removed nor, in respect of any loss occuring elsewhere than …the said premises, 10% of the sum insured by this Policy after deductible therefrom the value of any building (exclusive of fixtures and fittings) stock in trade or merchandise hereby insured.
2. This extension does not apply to property if and so far as it is otherwise insured.
3. As regards losses occuring elsewhere than at the premises from which the property is temporarily removed to:
a. motor vehicles and motor chassis licensed for normal road use
b. property held by the Insured in trust, other than machinery and plant

This clause is subject otherwise to all the terms and conditions of the Policy to which it is attached.

Suppliers and Customers Extension Clause

2009-04-30T23:56:00.002-07:00

Subject to the terms, conditions and exclusions of the policy, loss resulting from interruption of or interference with the Business in consequence of Damage to :
a. property of suppliers, manufactures or processors of components, goods, materials, suppliers of service or other facilities and their suppliers.
b. Property of customers
c. Property whilst in transit by road, rail or inland waterway.

Anywhere in the World is regarded as due to the insured Events insured by the Specification shall be deemed to be the loss resulting from Damage to property of the Insured.

Sue and Labour Clause

2009-04-30T23:56:00.001-07:00

In case of actual or imminent, with prior notice to and approval from the Insurers, loss or damage, it shall be lawful and necessary for the Insured, his or their factors, servants or assign to use, labor and travel for, in and about the defence, safeguard and recovery of the property insured hereunder, or any part thereof without prejudice to this insurance, nor shall the acts of the insured or the insurers in recovering, saving and preserving the insured property in case of loss or damage, be considered a waiver or abandonment, to the charge whereof, the Insurers will contribute according to the rate and quantity of the sum herein insured.

Sudden / accidental pollution

2009-04-30T23:55:00.000-07:00

It is explicitly agreed and noted that this policy applies to cover bodily injury or property damage arising out of such pollution caused by a sudden, unintended and unexpected happening.

Structural Alterations Clause

2009-04-30T23:53:00.000-07:00

It is hereby noted and agreed, that the structural alteration and extension of the buildings mentioned in this Policy is allowed, as are the erection of new building, installation, reinstallation, replacement of machines, tools, implements, piping or other installation and objects as well as to move all these within the premises.

In case of removal or demolition of an insured object this insurance will cover the new items substituting the removed or demolished objects up to the original amount insured.

Sprinkler Leakage Clause

2009-04-30T23:52:00.002-07:00

It is hereby agreed and declared that the insurance under the policy shall extend to cover loss or damage to the property insured caused by water accidentally discharged or leaking from the Automatic Sprinkler Installation subject to First Loss Sum Insured and subject to a deductible of any one location and further subject to all the usual conditions of the policy and the following special conditions :
1.The liability if the company shall in no case under this endorsement and the policy exceed the sum insured by each item of the policy.
2.Further provided that such discharge or leakage of water shall not be occasioned by or happen trough :
A.Repairs or alteration to the buildings or premises
B.The automatic sprinkler installation being either repaired, removed or extended.
C.The order of the Government or of any municipal local or other competent Authority
D.Defects in construction or condition of which the insured is aware.
E. Condensation or deposits on the Automatic Sprinkler Installation.

Spoilage Cover Extension

2009-04-30T23:52:00.001-07:00

It is hereby agreed and declared that this insurance covers loss of or damage to the insured property caused by its own spontaneous combustion, notwithstanding anything stated to the contrary on the printed conditions of the policy.

Spoilage Cover Extension

2009-04-30T23:51:00.001-07:00

It is hereby noted and agreed tha in the event of a recoverable loss under this policy, the liability shall extend to include any loss or damage to the stock in process subject to the terms and conditions of the policy.

Special Electrical Short Circuit Coverage Clause

2009-04-30T23:47:00.000-07:00

It is hereby expressly understood and agreed that in consideration of the payment of an additional premium as arranged, this policy also covers loss or damage to any generator, motor, transformers, and/or any other electrical machine and/or electrical installation cause by short circuit and self heating.

SPECIAL CONDITION CONCERNING X-RAYS FILMS

2009-04-30T23:46:00.000-07:00

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon and subject to the Insured having paid the agreed extra premium, the Insurers shall not indemnify the Insured in respect of any costs incurred in connection with any loss of or damage to films used for X-ray equipment unless such loss or damage arises in direct consequence of an indemnifiable loss of or damage to the X-ray film cassettes.

SPECIAL CONDITION CONCERNING X-RAYS FILMS

2009-04-30T23:45:00.002-07:00

SPECIAL CONDITION CONCERNING WAIVER OF SUBROGATION

2009-04-30T23:45:00.001-07:00

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon and subject to the Insured having paid the agreed extra premium, the Insurers shall waive all rights of subrogation arising out of loss or damage indemnifiable under the Policy which the insurers may have against persons using the insured items with the consent of the Insured.

SPECIAL CONDITION CONCERNING OBSOLETE EQUIPMENT

2009-04-30T23:39:00.000-07:00

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon, the Insurer’s liability in respect of electronic data processing equipment the manufacture of which has been discontinued, or for which spare parts are no longer available (obsolete equipment), shall be restricted to the period of business interruption which would arise if a current model or type of data processing system of equal performance had to be repaired or replaced.

Special Condition Concerning EDP Equipment Insured in connection Hire/Lease contract

2009-04-30T22:58:00.000-07:00

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon, the following shall apply in respect of EDP equipment insured under a separate policy in connection with a hire or lease contract:

Section 2 and/or 3 of the Policy shall be read as if the EDP equipment were insured under Section 1 of the Policy. This shall apply only up to the actual extent of cover provided by the separate policy, but in no case beyond the cover given under Section 1 of the Policy.

Vehicle Impact Clause

2009-04-30T22:57:00.000-07:00

It is hereby declared and agreed that by deleting the word “vehicle impact” in CHAPTER II-EXCEPTION item 1.3.2. of this Policy, the Insurance hereunder is extended to cover :

4.11.1 VEHICLE IMPACT, which for the purpose of this Endorsement shall mean :
Damage to the property insured directly resulting from actual physical contact of a vehicle
with the property insured hereunder or with the building containing such property.
Provided that the Insurer shall not be liable for any damage caused :
i) By any vehicle owned or operated by the Insured or by any tenant of the insured
premises
ii) To fences, driveways, walk ways or lawns
iii) To any other vehicle including its contents, other than stock of vehicles in process of
manufacture or for sale

For the purpose of this Endorsement, “vehicle” shall mean any Vehicle running or land or
tracks but not aircraft. It is further agreed that for each and every loss recoverable
hereunder, the Insured shall bear Rp. 1.000.000,00 (One Million Rupiahs).

4.11.2 INDUSTRIAL SMOKE, which for the purpose of this Endorsement shall mean :
Loss or damage to the property insured resulting from smoke due to a sudden, unusual and
faulty operation of any heating or cooking units connected to a chimney by a smoke pipe or
by a vent pipe, which is in or on the Insured premises excluding, however, smoke from
fireplaces or industrial apparatus.

(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)

Seventy Two Hours Clause

2009-04-30T22:34:00.002-07:00

It is agreed that any loss or damage to the Insured Property arising during any one period of seventy two (72) consecutive hours, caused by windstorm tempest flood or earthquake shall be deemed as a single event and therefore to constitute one occurrence with regard to the Deductibles provided for herein, for the purposes of the foregoing the commencement of any such seventy two (72) hours period shall be decided at the discretion of the Insured it being understood and agreed, however, that there shall be no overlapping in any two or more such seventy two (72) hours period in the event of damage occurring over a more extended period of time.

Services Clause

2009-04-30T22:34:00.001-07:00

The Insurance by this policy relating to ‘machinery’ and ‘equipment’ extends to include telephone, gas, water and electric instruments, maters, piping, cabling and the like and accessories thereof including similar property in adjoining yards or roadways or underground all the property of the insured or of suppliers or others for which the insured are responsible.

Selling Price Clause

2009-04-30T22:27:00.000-07:00

It is noted and agreed that in respect of goods sold but not yet delivered for which the Insured is responsible and with regard to which under the written or printed conditions of sale the Sale Contract is cancelled by reason of the loss or damage indemnified by this Policy either wholly or to the extent of the loss or damage, the liability of the Insurer shall be based on the contract price, and for the purpose of average the value of all goods, to which this clause would in the event of loss or damage be applicable shall be ascertained on the same basis.

Salvage Sale Clause

2009-04-30T22:18:00.001-07:00

If, following any incident giving rise to a claim under this policy, the Insured shall hold a salvage sale during the indemnity period, clause (a) of the item on Gross Profit shall, for the purpose of such claim, read as follows:

(a) In respect of Reduction in Turnover : the sum produced by applying the Rate
of Gross Profit to the amount by which the Turnover during the indemnity period (less the
Turnover for the period of the salvage sale) shall, in consequence of the incident, fall
short of the Standard Turnover, from which sum shall be deducted the Gross Profit
actually earned during the period of the salvage sale.

S.R.C.C. Clause (Money Ins)

2009-04-30T22:17:00.001-07:00

STRIKE, RIOT AND CIVIL COMMOTION CLAUSE
It is agreed and understood that otherwise, subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon and subject to the Insured having paid the agreed extra premium, this policy shall be extended to cover loss or damage due to strike, riot and civil commotion which for the purpose of this endorsement shall mean (subject always to the special conditions hereinafter contained) loss of or damage to the property insured directly caused by :
1. The act of any person taking part together with others in any disturbances of the public peace (whether in connection with a strike or lock-out or not)
2. The action of any lawfully constituted authority in suppressing or attempting to suppress any such disturbance or in minimizing the consequences of any such disturbance.
3. The willful act of any striker or locked-out worker done in furtherance of a strike or in resistance to lock-out.
4. The action of any lawfully constituted authority in preventing or attempting to prevent any such act or in minimizing the consequences of any such act.

Provided that it is hereby further expressly agreed and declared that:
1. All the terms, exclusions, provisions and conditions of the Policy shall apply in all respects to the Insurance granted by this extension save in so far as the same are expressly varied by the following special conditions and any reference to loss or damage in the wording of the Policy shall be deemed to include the perils hereby insured against.
2. The following special conditions shall apply only to the insurance granted by this extension and the wording of the Policy shall apply in all respects to the insurance granted by the Policy as if this Endorsement had not been made thereon.

S.R.C.C Clause

2009-04-30T22:16:00.000-07:00

It is hereby declared and agreed that subject to its terms limitations and conditions the within policy is extended to cover the insured against death or disablement directly or indirectly caused by riots and civil commotion, murder and assault (other than provoked assault) provided that the insured is not voluntarily engaged in riots and civil commotion or political demonstrations.

RSMDCC41A+Civil Commotion

2009-04-30T22:15:00.000-07:00

It is hereby agreed and declared that :
a) Notwithstanding anything contained in CHAPTER II-EXCEPTIONS, Item 1,3,1 of the Policy to the
contrary and subject to payment of additional premium, the Insurer agrees to extend this insurance
as provided in this endorsement
b) Notwithstanding anything which may be defined in any laws or regulations to the contrary, for the
purpose of this Endorsement, all terminology printed in italics shall be deemed to mean as defined
in item 4. DEFINITIONS of this endorsement.

1. EXTENSIONS
This insurance shall extended to cover :
- Physical damage to the property and/or interest insured directly caused by one or more of the
following perils :
1.1.Riots
1.2.Strikes
1.3.Locked-Out Workers
1.4.Malicious Acts
1.5.Civil Commotion,
1.6.Preventive Acts related only to perils 1.1 up to and including 1.5

- Physical loss of the Property and/or interest insured directly caused by :
1.7.Looting occurring during Riots and Civil Commotions

Provided that any of these perils does not develop in an uninterrupted chain of events into one or more of the excluded perils.

2.EXCLUSIONS

This extension does not cover all physical loss or damage to the property and/or interest insured including loss or damage by fire directly or directly caused by or contributed to by or arising from or in consequence of one or more of the following perils :
2.1. Insurrection/Popular Rising, Usurped Power, Revolution, Rebellion, Military Power, Invasion,
Civil War, War and Hostilities, Subversive Act, Looting (except Looting occurring during Riots
and/or Civil Commotion).

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 damaged is covered shall be on the Insured.

2.2. Total or partial cessation of works, or retarding or interruption or cessation of any process or
operation.

2.3. Permanent or temporary dispossession resulting from confiscation, commandeering or
requisition by any lawfully constituted authority or body, or unlawful occupation by any any
person consequential loss.

2.4. Business interruption, or any kind of consequential loss (Subject to be deleted in respect of the
Business Interruption Cover).

3. DEDUCTIBLES

As per Schedule.

4. DEFINITIONS
Notwithstanding anything which may be defined in any laws or requlations to the contrary, for the
purpose of this policy, all terminology printed in italics shall be defined as follows :

4.1. 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 Commotion.
4.2. Strikes is deliberate acts 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 (twenty Four) 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.
4.3. Locked-Out Workers is a deliberate act of damage, by a group or workers of at least 12
(twelve) persons or one half of the entire workplace (if the total number of workplace is
less than 24 (twenty Four) persons, to protest againts the termination or suspension
of a fellow employee by the employer.
4.4. 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 any
person(s) entrusted by the Insured to maintain or keep such property, or by
thieves/robbers/looters.
4.5. Preventive Acts is an act of lawfully constituted authority in an attempt to prevent or
suppress the occurrence of any insured perils or to minimize the consequences of
any such perils.
4.6. Civil Commotions is an act of a large number of people acting together disrupting
public peace and disturbance tumultuously wiith violence and a chain of destruction
of a large number of properties, indicated by 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.
4.7. Insurrection/Popular Rising is inter alia an uprising of a large number 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, or engage in open resistance
against the government that such uprising does not amount to a Rebellion or Revolution.
For the purpose of this definition the term “a large number of people” shall mean an
amount of people equivalent to a significant proportion of the population of the city in
which such uprising occurs, whether or not these people are ordinarily resident in
that city.
4.8. 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.
4.9.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 and de facto, not amounting to a Rebellion.
4.10. Rebellion is a state of organized resistance against the established authority with the
object of supplanting or overthrowing it with the use of force which threatens the existence
of such authority.
4.11. 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.
4.12. 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.
4.13. 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.
4.14. 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.
4.15. Subversive Acts is an act by any persons on behalf of or in connection with any organisation
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.
4.16. Looting is the appropriation of property belonging to another by any person (excluding those
employed by r under the control of the Insured) with the intention of permanently depriving that
other of it.

5. CANCELLATION

This insurance may be terminated at any time at th option of the insurer on written notice that effect being given to th Insured. The termination shall be effective at nood on the 3rd (third) day after receipt of such notice by the Insured. The Insured shall be liabl to repay on demand a rateable proportion of the premium for the un-expired term from the date the termination is effective.

Replacement Clause

2009-04-30T22:12:00.000-07:00

“In the event of loss or damage to ay parts or parts of an insured machine or equipment caused by a peril covered by a peril covered by the policy the sum recoverable shall not exceed the cost of replacement or repair of such part or parts plus charges for forwarding and refitting, if incurred, but not excluding duty unless the full duty is included in the amount insured, in which case loss if any, sustained by payment of additional duty shall also be recoverable. Provided always that in no case shall the liability of underwriters exceed the insured value of the complete machine or equipment.”

Rent Clause (Loss of Rent)

2009-04-30T22:11:00.000-07:00

“It is hereby declared and agreed that in the event of the said premises or any part thereof becoming untenantable as result of its destruction or damage by fire or any other perils hereby insured against, the company will, subject to the conditions hereinafter contained, indemnify the insured for loss or rent in accordance with the lease or agreement existing at the tie of such destruction or damage. The company shall only be answerable for rent for such period as the premises (or proportionately in the case of any part thereof) may be actually untenantable, due diligence being used in the repair or reconstruction of the same, but if any case the repair or reconstruction of the said premises be not fortwith commenced, the loss of rent shall be determined by the time which would have sufficed for the purpose had due deligence been used, but in no case exceeding 12 (twelve) months rent.

In case the rent of the premises for the period specified shall exceed the sum hereby insured, the amount payable shall be in the proportion which the sum insured bears to such rent.

If the whole of any part of the premises be occupied by the insured, the rent thereof shall be assessed at a reasonable market value. And it is further stipulated that should any of the standing charges incurred for maintaining the premises in a tenantable condition (such as wages of caretaker or liftmen, cost of power, lighting and the like), ceased or be reduced in consequence of fire of any other peril hereby insured against, then the amount payable shall be reduced accordingly”

Removal Permit Clause

2009-04-30T22:09:00.000-07:00

“It Is hereby understood and agreed that this policy shall be extended to cover against all direct loss and/or damage caused by the removing of property hereunder insured, from locations or premises affected by the perils insured hereunder, and also to cover during the terms of ten (10) days, such property in any other place where it should be necessary to move the insured property in order to preserve it from the perils insured hereunder or to maintain if safe from the perils of the occurrence”

Removal of Debris

2009-04-30T21:56:00.000-07:00

On First Loss BasisThis insurance under this heading is not subject to the Average Clause.

1.In consideration of the payment of an additional premium this policy extends to indemnify the Insured in respect of
The cost of removal of debris, demolition any temporary repairs necessary (including the Insured’s legal liability for the cost of removal of debris, demolition and temporary repairs in regard to adjoining premises, roadways or waterways, as well as on the site), consequent upon the destruction of or damage to any property, insured by the Insured’s Fire Policy (or Policies) occasioned by fire or any other perils thereby insured against.
Provided always :
-that such cost is not recoverable under any other Policy of Insurance
-that the indemnity afforded by this insurance shall not apply to or include liability assumed by the Insured under agreement entered into after the commencing date of this insurance unless such liability would have attached to the Insured in the absence of such agreement.

2.Sum Insured : within the sum insured with Limit 10% of TSI which in no case shall not exceed 10% of the total sum insured on building(s) and/or contents.