INDUSTRIAL ALL RISKS POLICY
NO.
Whereas the Insured named in the Schedule(s)
hereto has made to the
PT.
………….
(hereinafter called
"the Insurers") a written proposal by completing the
Questionnaire(s) which together with any
other statements made in writing by the Insured for the
purpose of this policy is
deemed to be
incorporated herein,
now this policy of insurance witnesseth that
subject to the Insured having paid to the Insurers the
premium mentioned in the
Schedule (s) and subject
to the terms, exclusions, provisions
and conditions contained herein
or endorsed hereon the Insurers will
indemnify the Insured in the manner and to the extent hereinafter provided.
General
Exclusions applying to all Sections
The Insurers will not indemnify the Insured in
respect of loss (incl. consequential loss) destruction damage or expense whatsoever
directly or indirectly caused by or arising out of or aggravated by :
Exclusions:
1. war,
invasion, act of foreign enemy, hostilities
or warlike operations (whether war be declared or not) or civil war ;
riots,
strikes, locked-out workers, malicious acts, looting, mutiny,
civil commotion, military
rising, insurrection, rebellion, revolution, military or usurped power,
confiscation, requisition or nationalization, acts of terrorism. "Terrorism" means the use
of violence for political ends and
includes any use of violence for the purpose of putting the public or any
section of the public in fear
2.1 ionising
radiations or contamination by radioactivity from any nuclear fuel or from
any nuclear waste
from the combustion of nuclear fuel
2.2 the
radioactive toxic explosive
or other hazardous
properties of any explosive
nuclear assembly or
nuclear component thereof
3. wilful
act or wilful negligence of the Insured or of his
representatives
4.
total
or partial cessation of work
In any
action, suit or
other proceeding where
the Insurers allege
that by reason
of the provisions of Exclusion
1) and 2) above any loss destruction
damage or expense is not covered by this insurance the
burden of proving
that such loss
destruction damage or
expense is covered shall be upon the
Insured.
General Condition applying to all Sections
1. Definition
The
Schedule(s) the Section(s)
and the Endorsement(s) and
Questionnaire(s) shall be deemed
to be incorporated in and form part of
this Policy and the expression "this Policy" wherever used in this contract shall be read as
including the Schedule(s) the Section(s)
and the Endorsement(s) and Questionnaire(s).
Any word or expression to which a specific meaning has
been attached in any part of a Section or of the Endorsement or Questionnaire
shall bear such meaning wherever it may appear in such Section, Endorsement or
Questionnaire.
2. Policy Voidable
This policy shall be voidable in the event of
misdescription, misrepresentation or non-disclosure in any material particular.
3. Alteration
3.1
Section I of this policy shall be avoided with respect to
any of
the Property Insured
in regard to which
there be any
alteration after the commencement of this insurance
3.1.1. by
removal or
3.1.2.
whereby the risk of loss destruction or damage
is increased or
3.1.3.
whereby the interest of the Insured ceases
except by will or operation of law
unless
admitted by the Insurer in writing.
3.2. Section
II of this policy shall be avoided if after the commencement of this insurance
3.2.1. the
Business be wound up or carried
on by a
liquidator or receiver or permanently discontinued or
3.2.2. the
interest of the Insured ceases other than by death or
3.2.3. any
alteration be made either in the Business or in the Premises or property
therein whereby the risk of loss destruction or damage is increased
unless admitted by the Insurer in writing.
4. Warranties
Every warranty to which this policy is or may be made
subject shall from the time the warranty attaches apply and continue to be
in force during the whole currency of this policy and
non-compliance with any
such warranty in so
far as it
increases the risk of any loss destruction or damage shall be a bar
to any claim in respect of such loss
destruction or damage.
5. Reasonable
Precautions
The Insured shall take all reasonable precautions to
prevent loss destruction or damage, e.g. take at his own expense all
reasonable precautions, comply
with all reasonable recommendations
of the
Insurers to prevent loss destruction or damage, comply
with statutory requirements
and manufacturers' recommendations.
6. Right of Inspection
Representatives of the Insurers shall at any
reasonable time have
the right to inspect and examine the
risk and the
Insured shall provide the
representatives of the Insurers with all details and information
necessary for the assessment of the
risk. Said inspection/examination shall not impose any
liability on the Insurers and shall not be taken as
guarantee for the
Insured of the safety standards of his operations.
7. Claims Procedure
7.1. In
the event of any
occurrence which might give rise to a
claim under this Policy, the Insured shall
- immediately notify the Insurers by telephone or telegram as well as in writing about the
nature and extent of loss destruction or
damage
-
take all steps within his power to minimize the extent of the loss
destruction or damage
- preserve the parts affected and make them
available for inspection by a
representative or surveyor of
the Insurers
- furnish
all such information
and documentary evidence
as the Insurers may require
- immediately inform
the police authorities in case
of loss or damage
due to theft or burglary or
malicious damage.
Upon notification being given to the Insurers under this
condition, a representative of the Insurers shall
have the opportunity
of inspecting the loss destruction or
damage before any repairs or alterations are effected. If a
representative of the Insurers does
not carry out
the inspection within a period of
time which could be considered
as adequate under the
circumstances the Insured
is entitled to proceed
with the repairs
or replacement.
7.2 The Insured
shall not be
entitled to abandon any
property to the
Insurers whether taken possession
of by the
Insurers or not.
7.3 No claim
shall be payable
under this policy
unless the terms
of this Condition have been
complied with.
7.4
Fraud
If a claim is fraudulent in any
respect or if fraudulent means are used by the Insured or by anyone acting on his
behalf to obtain any benefit
under this policy or if
any loss or destruction of or
damage to the Property Insured or to
property used by the
Insured at the
Premises for the purpose
of the Business is caused by the wilful act or with the
connivance of the Insured
all benefit under this policy shall be forfeited.
8. Indemnification
8.1 The
Insurers shall indemnify adjusted
losses within 30
(thirty) days after receipt of loss
adjuster's final report or equivalent proof of loss
8.2 Liability
having been admitted,
payments on account
not exceeding the minimum amount justified by the
prevailing circumstances shall be effected
8.3 The
Insurers shall be
entitled to withhold
indemnification
- if
there are doubts regarding the
Insured's right to receive the indemnity, pending receipt
by the Insurers of
the necessary proof
- if in connection with the
claim an examination by the
police or an inquiry under criminal law
has been instituted against the Insured,
pending completion of
such examination or enquiry.
9. Interest Payments
The Insurers shall not be
liable to pay interest other than interest for default.
10. Arbitration
If any difference
shall arise as to the amount
to be
paid under this
Policy (liability being otherwise
admitted) such difference shall be referred to the decision
of an Arbitrator to be appointed in writing by the parties; if they cannot
agree upon a
single Arbitrator to the decision
of two Arbitrators, one to be appointed in writing by each of
the parties, within one calendar month after having been
required in writing so to do by either
of the parties, or, in case the Arbitrators
do not agree, of an Umpire to be
appointed in writing by
the Arbitrators before
entering upon the reference. The Umpire shall sit with the
Arbitrators and preside at their meetings.
The making of an
award shall be a
condition precedent to any right
of action against
the Insurers.
11. Subrogation
The Insured shall
at the expense of the
Insurers do and
concur in doing and permit to be done all such
acts and things as may be necessary or required by the
Insurers in the interest of any rights
or remedies, or of obtaining relief or
indemnity from parties (other
than those insured under this
Policy) to which
the Insurers shall be or
would become entitled or subrogated upon their paying for or
making good of any
loss destruction damage or
expense under this Policy,
whether such acts and things shall be or become necessary or
required before or after the Insured's indemnification by the Insurers.
12. Other Insurance
If at the time any
claim arises under this Policy
there is any
other insurance covering the same loss
destruction or damage the Insurers shall not be liable to
pay or contribute more than
their rateable proportion of any claim
for such loss destruction or damage.
13. Period
of Insurance
The period of insurance is one year. Inception and expiry
shall both be 12 o'clock noon at the dates entered in the Schedule. The
insurance is automatically renewed for a year, unless Insurer or Insured
request in writing the termination at the expiry date, giving 30 days notice.
14. Average
The sums insured
of each item under Section I and of Section II of this policy (other
than those applying solely to fees, rent, removal
of debris or
private dwelling houses)
are declared to be
separately subject to Average.
Section I:
If the Property
Insured under any
item shall at
the commencement of any loss damage or destruction hereby insured against be collectively of greater value than
the respective sum
insured, then the Insured shall be considered as
being his own insurer for the
difference and shall bear a rateable
share of the loss accordingly.
Section II:
The Insurance is limited to loss of Gross Profit due to
(a) Reduction in Turnover and (b) Increase in Cost of Working and the amount
payable as indemnity thereunder shall be
:
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 shall fall short of the Standard Turnover in
consequence of loss destruction or damage
b) in
respect of Increase in Cost of Working : the additional expenditure necessarily
and reasonably incurred for the sole purpose of avoiding or diminishing the
Reduction in Turnover which but for that expenditure would have taken place during the Indemnity Period in
consequence of the Incident, but not exceeding the sum produced by applying the
Rate of Gross Profit to the amount of the reduction thereby avoided
less any sum saved during the Indemnity Period in respect
of such of the charges and expenses of the Business payable out of Gross Profit
as may cease or be reduced in consequence of loss destruction or damage
provided that if the sum insured by this item be less
than the sum produced by applying the Rate of Gross Profit to the Annual
Turnover (or to a proportionately increased multiple thereof where the Maximum
Indemnity Period exceeds twelve months) the amount payable shall be
proportionately reduced.
15. Deductibles
This policy does not cover the amounts of the
deductibles stated in the Schedule in respect of each and every
loss as
ascertained after the application of all other
terms and conditions of the policy including any condition of Average.
Warranted that
the Insured shall
not effect insurance in respect
of the amounts of the deductibles stated
in the Schedule.
16. Sum(s)
Insured
The sum(s)
insured shall not be reduced
by any indemnity
payments.
Section
I Material Damage
The Insurers
hereby agree with the Insured
that if at any time
during the period of insurance the items or any
part thereof entered in the Schedule and whilst at the
premise(s) described in such Schedule shall suffer any unforeseen, sudden and
accidental physical loss destruction or
damage other than those specifically excluded
in the General
or Special Exclusions in a manner
necessitating repair or replacement, the Insurers will indemnify
the Insured in respect of such loss destruction or
damage as hereinafter
provided by payment in cash, replacement
or repair (at
the Insurers' option) up to an amount
not exceeding in respect of
each of the items at any location specified in the
Schedule the sum
set opposite thereto (sum
insured) and not
exceeding in any one
event the limit
of indemnity where applicable and not exceeding in all the total sum expressed
in the Schedule as insured
hereby.
Special
Exclusions to Section I
1. The Insurers shall not be liable for loss
destruction of or damage to
1.1 property
in the course of construction or erection
1.2 property
being worked upon and actually arising from
the process of manufacture
testing repairing cleaning restoring alteration
renovation or servicing
1.3 property
in transit by road, rail, air or water
1.4 licensed road
vehicles, railway locomotives
and rolling stock,
watercraft, aircraft, spacecraft and the like
1.5 jewellery, precious
stones, precious metals, bullion,
furs, curiosities, rare books or
works of art
1.6 standing timber, growing crops, animals, birds, fish
1.7 land (including topsoil
backfill drainage or
culvert), driveways,
pavements, roads, runways,
railway lines, dams,
reservoirs, surface water,
underground water, canals, rigs, wells, pipelines,
cables, tunnels, bridges, docks,
piers, wharves, mining property
underground, offshore property
1.8 property
in the possession of customers under
Rental Agreements or Hire Purchase, Credit or other Suspensive Sale
Agreements
1.9 property
which at the
time of the
happening of loss
destruction or damage is insured by
or would but
for the existence
of this policy be insured
by any marine policy or
policies.
2. The
Insurer(s) shall not
be liable for loss destruction of or damage to
the property insured directly or indirectly caused
by or arising out of or aggravated by :
2.1 delay, loss of market or other consequential
or indirect loss or damage of any
kind or description whatsoever
2.2 dishonesty,
fraudulent act, trick,
device or other
false pretence
2.3 disappearance, unexplained or inventory
shortage
2.4 joint leakage,
failure of welds,
cracking, fracturing, collapse
or overheating of boilers, economisers, superheaters, pressure
vessels or any
range of steam
and feed piping
in connection therewith,
mechanical or electrical
breakdown or derangement
in respect of
the particular machine apparatus
or equipment in which such breakdown
or derangement originates
2.5 all
gradually operating causes,
including but not
limited to wear and
tear, rust, corrosion,
mildew, mould, fungus,
wet or dry rot, gradual deterioration,
latent defect, inherent
vice, slowly developing deformation
or distortion, insects
larvae or vermin of any
kind, microbes of
any kind, unless sudden and
unforeseen physical loss
destruction or damage
ensues, in which case Insurers'
liability shall be limited to such ensuing loss damage or destruction.
2.6 pollution or
contamination, unless caused
by fire, lightning,
explosion, aircraft or
other aerial devices or
articles dropped therefrom, riot, civil commotion, strikers,
locked-out workers, persons
taking part in
labour disturbances, malicious persons
(other than thieves),
earthquake, storm, flood, escape
of water from any tank
apparatus or pipe or impact by any road vehicle or animal
2.7 enforcement
of any ordinance
or law regulating
the construction, repair or demolition of
any Property Insured
hereunder except as
provided for in the Public
Authorities Memorandum incorporated in this Section
2.8 shrinkage, evaporation, loss of weight, change in
flavour, colour, texture or
finish, action of light
2.9 change
in temperature or humidity, failure or
inadequate operation of any air-conditioning cooling
or heating system
due to operating
error. The burden of
proof that no operating error occurred, shall be upon
the Insured
2.10 exposure to
weather conditions where
property is left in
the open or
not contained in fully enclosed buildings.
3. The Insurers shall not be liable for the costs
3.1 of rectifying
defective materials, faulty workmanship
or design
3.2 of
normal upkeep, normal making good, maintenance
3.3 arising from
false or unauthorised
programming, punching, labelling or inserting, inadvertent cancelling of information
or discarding of
data media and from loss of
information caused by magnetic fields.
Special
Conditions to Section I
1. Sums Insured :
It is a
requirement of this Insurance that the sums
insured stated in the
Schedule shall not be less than the cost
of reinstatement as if
such property were reinstated on the
first day of the Period of Insurance which shall
mean the
cost of replacement of the insured items by new items in a
condition equal to but not better or more extensive than its
condition when new.
2. Basis of Loss Settlement :
In the event of
any loss destruction or damage the
indemnification under this section shall be calculated on the basis
of the reinstatement or
replacement of the property lost
destroyed or damaged,
subject to the following provisions:
2.1 Reinstatement or replacement shall mean:
(1) where
property is lost or destroyed, the
rebuilding of any buildings or the replacement of
any other property by similar property, in either case
in a condition
equal to but
not better or
more extensive than its condition when new
(2) where property is damaged, the
repair of the
damage and the restoration of
the damaged portion
of the property
to a condition substantially the same as but not
better or more extensive than its
condition when new.
2.2 Special Provisions:
(1) The work
of reinstatement (which
may be carried
out upon another site
and in any manner
suitable to the
requirements of the Insured
subject to the
liability of the
Insurers not being thereby increased)
must be commenced
and carried out
with reasonable despatch
otherwise no payment
beyond the amount which would
have been payable
under the policy
if this special
provisions had not been
incorporated herein shall
be made
(2) Where any
property is lost
destroyed or damaged in part only
the liability of the
Insurers shall not exceed the
sum representing the cost
which the Insurers
could have been
called upon to pay for
reinstatement if such
property had been wholly destroyed
(3). If at the time of reinstatement the sum
representing the cost
which would have
been incurred in
the reinstatement if
the whole property covered
by such item had been destroyed exceeds the sum insured thereon at
the commencement of
any destruction of or
damage then the
Insured shall be
considered as being his own
insurer for the
difference between the sum insured
and the sum representing the
cost of reinstatement of the
whole of the property and shall
bear a rateable
proportion of the loss accordingly
(4). Until
the cost of
reinstatement or replacement
shall have been actually incurred the
amount payable under
each of the items shall be
calculated on the
basis of the actual
cash value of such items immediately
before the loss
destruction or damage
with due allowance for
depreciation for age use and condition.
3.
First
Loss Insurance
3.1 The items
mentioned hereinafter are
covered on a
First Loss Basis, subject to amounts per item entered in
the Schedule
- Money and stamps
- Employees
Pedal Cycles and other Personal Effects.
- Documents,
Manuscripts and Business Books:
only the value of materials as stationery together with
the cost of
clerical labour expended in
writing up and not the value of the information to the Insured.
- Computer
Systems records: the
value of materials together with the
cost of clerical labour and
computer time expended
in reproducing such records (excluding any
expense in connection with the
production of information
to be recorded therein), but
not for the value of the information contained therein
to the Insured.
- Patterns, Models, Moulds,
Plans and Designs: an amount not exceeding the cost
of the labour and
materials expended in
reinstatement.
3.2 Debris Removal
This policy covers the necessary expense for removal of
debris of insured property from the described premises as a result of physical
loss destruction or damage insured against under this policy.
The Insurers' total
liability for debris
removal is limited to the amount entered in the
Schedule.
4.
Capital
Additions
The insurance by this policy shall, subject to its
terms and conditions, extend to cover:
- any newly acquired buildings, machinery
and other equipment
in so far as the same are not otherwise insured, and
- alterations,
additions and improvements
to building, machinery and other equipment
during the current period of insurance
at any of the premises hereby insured, provided that:
1). at any one location this
increase shall not
exceed 5 % of the
total sum insured on such item;
2). the
Insured advise the
Insurers within three
months of the
particulars of any such capital
additions and pay
such additional premiums as the
Insurers may require
SECTION II - BUSINESS INTERRUPTION
The Insurers agree that if during the period of insurance
the business carried on by the Insured at the premises specified in the
Schedule is interrupted or interfered with in consequence of loss destruction
or damage indemnifiable under Section I,
then the Insurers shall indemnify the Insured for the amount of loss as
hereinafter defined resulting from such interruption or interference provided
that the liability of the Insurers in no case exceeds the sum insured or such
other sum as may hereinafter be substituted therefor by Endorsement signed by or
on behalf of the Insurers.
SPECIAL
EXCLUSIONS TO SECTION II
1 This
Policy does not cover any loss resulting from interruption of or interference
with the business directly or indirectly attributable to
1.1. any restrictions on reconstruction or
operation imposed by any public authority
1.2. the
Insured’s lack of sufficient capital for timely restoration or replacement of
property lost, destroyed or damaged
1.3. loss of business due to causes such as
suspension, lapse or cancellation of a lease licence or order etc. which occurs
after the date when the items lost destroyed or damaged are again in operating
condition and the business could have been resumed, if said lease license or
order etc. had not lapsed or had not been suspended or cancelled.
2. This Policy does not cover the deductible
stated in the Schedule to be borne by the Insured.
Basis of Insurance
The
cover provided under this Section shall be limited to loss of Gross Profit due
to (a) Reduction in Turnover and (b) Increase in Cost of Working and the amount
payable as indemnity hereunder shall be
(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 shall fall short of the Standard Turnover
in consequence of the loss destruction or damage
(b) in
respect of Increase in Cost of Working : the additional expenditure necessarily
and reasonably incurred for the sole purpose of avoiding or diminishing the
Reduction in Turnover which but for that expenditure would have taken place
during the Indemnity Period in consequence of loss destruction or damage, but
not exceeding the sum produced by applying the Rate of Gross Profit to the
amount of the reduction thereby avoided
less
any sum saved during the Indemnity Period in respect of such of the charges and
expenses of the business payable out of Gross Profit as may cease or be reduced
in consequence of loss destruction or
damage
provided
that if the sum insured by this item be less than the sum produced by applying
the Rate of Gross Profit to the Annual Turnover (or to a proportionately
increased multiple thereof where the Maximum Indemnity Period exceeds twelve
months ) the amount payable shall be proportionately reduced.
Definitions
1.
Gross Profit
The
amount by which
- the sum of the amount of the
Turnover and the amounts of the closing stock and work in progress shall exceed
- the sum of the amount of the opening
stock and work in progress and the amount of the Uninsured Working Expenses.
Note : The amounts of the opening
and closing stocks and work in progress shall be arrived at in accordance with
the Insured’s normal accountancy methods, due provision being made for
depreciation.
2. Uninsured
Working Expenses
The variable expenses of the business which are not insured by
this policy :
2.1
turnover and purchases taxes
2.2
purchases ( less discount received )
2.3
carriage , packing and freight
3. Turnover
The money (less discount allowed) paid or payable to the Insured for
goods sold and delivered and for services rendered in the courses of the
business at the Premises.
4. Indemnity
Period
The period beginning with the occurrence of loss destruction or damage
and ending not later than the Maximum Indemnity Period thereafter during which
the results of the Business shall be affected in consequence thereof.
5. Rate
of Gross Profit:
The Rate of Gross Profit earned on the turnover during the financial
year immediately before the date of loss destruction or damage
Annual Turnover:
The Turnover during the twelve months immediately before the date of
loss destruction or damage
Standard Turnover:
The Turnover during that period in the twelve months immediately before
the date of loss destruction or damage which corresponds with the Indemnity
Period appropriately adjusted where the Indemnity Period exceeds twelve months
to which such adjustments shall be made as may necessary to provide for
the trend of the business and for variations in or other circumstances
affecting the Business either before or after loss destruction or damage or
which would have affected the Business had the loss destruction or damage not
occurred, so that the figures thus adjusted
shall represent as nearly as may be reasonably practicable the result
which but for the loss destruction or damage would have been obtained during
the relative period after the loss destruction or damage.
Provisions
Memo 1 - Benefits from Other Premises
If during the indemnity period goods are sold or services are rendered
else where than at the Premises for the benefit of the Business either by the
Insured or by others acting on his behalf, the money paid or payable in respect
of such sales or services shall be taken into account in arriving at the
Turnover during the Indemnity Period.
Memo 2 - Return of Premium
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 of so much of said difference as is not due to such loss destruction
or damage.
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