MACHINERY INSURANCE
POLICY
Whereas
the Insured named in
the Schedule hereto has made to the
PT ……………
(hereinafter called “the Insurers”)
a written proposal by completing a
questionnaire 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 witnesses
that, subject to the Insured having paid to the Insurers the premium mentioned
in the Schedule and subject to the terms, exclusions, provisions and conditions
contained herein or endorsed hereon,
The
Insurers hereby agree
with the Insured that if at any time during the period of insurance stated in
the Schedule or during any subsequent period for which the Insured pays and the
Insurers may accept the premium for the renewal of this Policy, the items (or
any part thereof) entered in the Schedule, whilst on the premises mentioned
therein, suffer any unforeseen and sudden physical loss or damage from causes
such as defects in casting and material, faulty design, faults at workshop or
in erection, bad workmanship, lack of skill, carelessness, shortage of water in
boilers, physical explosion, tearing apart on account of centrifugal force,
short circuit, storm, or from any other cause not specifically excluded
hereinafter, in a manner necessitating repair or replacement,
The
Insurers will indemnify
the Insured in respect of such loss or damage, as hereinafter provided, by
payment in cash, replacement or repair (at the Insurers’ option) up to an
amount not exceeding in any one year of insurance in respect of each of the
items specified in the Schedule the sum set opposite thereto and not exceeding
in all the total sum expressed in the Schedule as insured hereby.
This Policy shall apply to the insured
items after successful completion of their performance acceptance tests whether
they are at work or at rest, or being dismantled for the purpose of cleaning or
overhauling, or in the course of aforesaid operations themselves, or when being
shifted within the premises, or during subsequent re-erection.
Exclusions
:
The Insurers shall not be liable for :
1.
the
deductible stated in the Schedule to be borne by the Insured in any one
occurrence; if more than one item is lost or damaged in one occurrence, the
Insured shall not, however, be called upon to bear more than the highest single
deductible applicable to such items;
2.
loss
of or damage to exchangeable tools, eg dies, moulds, engraved cylinders, parts
which by their use and/or nature suffer a high rate of wear or depreciation,
eg. refractory linings, crushing hammers, objects made of glass, belts, ropes,
wires, rubber tyres, operating media, eg. lubricants, fuels, catalysts;
3.
loss
or damage due to fire, direct lightning, chemical explosion (except flue gas
explosions in boilers), extinguishing of a fire or subsequent demolition,
aircraft or other aerial devices or articles dropped therefrom, theft, burglary
or attempts thereat, collapse of buildings, flood, inundation, earthquake,
subsidence, landslide, avalanche, hurricane, cyclone, volcanic eruption or
similar natural catastrophes;
4.
loss
or damage for which a supplier, contractor or repairer is responsible either by
law or under contract;
5.
loss
or damage caused by any faults or defects existing at the time of commencement
of this Policy within the knowledge of the Insured or his representatives,
whether such faults or defects were known to the Insurers or not;
6.
loss
or damage arising out of the willful act or gross negligence of the Insured or
his representatives;
7.
any
consequence of war, invasion, act of foreign enemy, hostilities (whether war be
declared or not), civil war, rebellion, revolution, insurrection, mutiny, riot,
strike, lock-out, civil commotion, military or usurped power, acts of a group
of malicious persons or persons acting on behalf of or in connection with any
political organization, conspiracy, confiscation, commandeering, requisition or
destruction of or damage to property by order of any government de jure or de
facto by any public authority;
8.
any
consequence of nuclear reaction, nuclear radiation or radioactive
contamination;
9.
loss
or damage as a direct consequence of the continual influence of operation (eg.
wear and tear, cavitation, erosion, corrosion, rust, boiler scale);
10.
consequential
loss or liability of any kind or description, any payments over and above the
indemnity for material damage as provided herein.
In any action, suit or other
proceeding where the Insurers allege that, by reason of the provision of
Exclusion 7 above, any loss or damage is not covered by this Policy, the burden
of proving that such loss or damage is covered shall be upon the Insured.
PROVISIONS
Memo 1 - Sum Insured
It shall be a requirement
of this Policy that the sum insured is equal to the cost of replacement of the
insured machinery by new machinery of the same kind and capacity, which means
its cost of replacement including, eg. freight, dues and customs duties, if any, and cost of erection.
If the sum insured is less
than the amount required to be insured, the Insurers shall pay only in such
proportion as the sum insured bears to the amount required to be insured. Every
item if more than one shall be subject to this condition separately.
Memo 2 - Basis of Indemnity
a.
In
cases where damage to an insured item can be repaired - the Insurers shall pay
expenses necessarily incurred to restore the damaged machine to its former
state of serviceability plus the cost of dismantling and re-erection incurred
for the purpose of effecting the repairs as well as ordinary freight to and
from a repair shop, customs duties and dues, if any, to the extent such
expenses have been included in the sum insured.
If
the repairs are executed at a workshop owned by the Insured, the Insurers shall
pay the cost of materials and wages incurred for the purpose of the repairs
plus a reasonable percentage to cover overhead charges.
No
deduction shall be made for depreciation in respect of parts replaced, but the
value of any salvage shall be taken into account.
If
the cost of repairs as detailed hereinabove equals or exceeds the actual value
of the machinery insured immediately before the occurrence of the damage, the
item shall be regarded as destroyed and settlement shall be made on the basis
provided for in b below.
b.
In
cases where an insured item is destroyed - the Insurers shall pay the actual
value of the item immediately before the occurrence of the loss, including
charges for ordinary freight, cost of erection and customs duties, if any,
provided such expenses have been included in the sum insured, such actual value
to be calculated by deducting proper depreciation from the replacement value of
the item. The Insurers shall also pay any normal charges for the dismounting of
the machinery destroyed, but the salvage shall be taken into account.
Any
extra charges incurred for overtime, night work, work on public holidays, and
express freight shall be covered by this Policy only if especially agreed in
writing.
The
cost of any alterations, additions, improvements or overhauls shall not be
recoverable under this Policy.
The
cost of any provisional repairs shall be borne by the Insurers if such repairs
constitute part of the final repairs and do not increase the total cost of
repair.
The
Insurers shall make payments only after being satisfied by production of the
necessary bills and documents that the repairs have been effected or
replacement has taken place, as the case may be.
Conditions
:
1.
The
due observance and fulfillment of the terms of this Policy, in so far as they
relate to anything to be done or complied with by the Insured, and the truth of
the statements and answers in the questionnaire and proposal made by the
Insured shall be a condition precedent to any liability of the Insurers.
2.
The
Schedule 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. Any word or expression to which a specific meaning has
been attached in any part of this Policy or of the Schedule shall bear such
meaning wherever it may appear.
3.
The
Insured shall at his own expense take all reasonable precautions and comply
with all reasonable recommendations of the Insurers to prevent loss or damage
and comply with statutory requirements and manufacturer’s recommendations.
4.
a. 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.
b. The
Insured shall immediately notify the Insurers either by teletype (telex,
telefax, telegram) or by telephone confirmed in writing of any material change
in the risk and cause at his own expense such additional precautions to be
taken as circumstances may require to ensure safe operation of the insured
items, and the scope of cover and/or premium shall, if necessary, be adjusted
accordingly. No material alteration shall be made or admitted by the Insured
whereby the risk is increased, unless the continuance of the insurance is
confirmed in writing by the Insurers.
5.
In
the event of any occurrence which might give rise to a claim under this Policy,
the Insured shall
a.
immediately
notify the Insurers either by teletype (telex, telefax, telegram) or by
telephone confirmed in writing, giving an indication as to the nature and
extent of the loss or damage;
b.
take
all reasonable steps within his power to minimize the extent of the loss or
damage;
c.
preserve
the parts affected and make them available for inspection by a representative
or surveyor of the Insurers;
d.
furnish
all such information and documentary evidence as the Insurers may require.
The
Insurers shall on no account be liable for loss or damage of which no notice
has been received by the Insurers within 14 days of its occurrence. Upon
notification being given to the Insurers under this condition, the Insured may
carry out repairs of any minor damage or replace items which have sustained any
minor damage; in all other cases a representative of the Insurers shall have
the opportunity of inspecting the loss 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 adequate
under the circumstances, the Insured shall be entitled to proceed with the
repairs or replacement.
The liability of the Insurers under this
Policy in respect of any insured item shall cease if said item is kept in
operation after a claim without being repaired to the satisfaction of the
Insurers, or if temporary repairs are carried out without the Insurers’
consent.
6.
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 are or would become entitled or which is or would be subrogated to
them upon their paying for or making good any loss or damage under this Policy,
whether such acts and things are or become necessary or required before or
after the Insured’s indemnification by the Insurers.
7.
If
any difference arises 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 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 to be appointed in
writing by the Arbitrators before the latter enter 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.
8.
The
Insurers shall be entitled to withhold indemnification
a.
if
there are doubts regarding the Insured’s right to receive the indemnity,
pending receipt by the Insurers of the necessary proof;
b.
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 inquiry.
9. a. If the proposal or declaration of the
Insured is untrue in any material respect, or if any claim made is fraudulent
or substantially exaggerated, or if any false declaration or statement is made
in support thereof, then this Policy shall be void and the Insurers shall not
be liable to make any payment hereunder;
b.
In
the event of the Insurers disclaiming liability in respect of any claim and if
an action or suit is not commenced within three months after such disclaimer or
(in the case of arbitration taking place in pursuance of Condition 7 of this
Policy) within three months after the Arbitrators or Umpire have made their
award, all benefit under this Policy in respect of such claim shall be
forfeited.
10.
If
at the time any claim arises under this Policy there is any other insurance
covering the same loss or damage, the Insurers shall not be liable to pay or
contribute more than their rateable proportion of any claim for such loss or
damage.
11.
This
Policy may be terminated at the request of the Insured at any time, in which
case the Insurers will retain the customary short-period rate for the time this
Policy has been in force. This Policy may equally be terminated at the option
of the Insurers by seven day’s notice to that effect being given to the
Insured, in which case the Insurers will be liable to repay on demand a
rateable proportion of the premium for the unexpired term from the date of
cancellation less any reasonable inspection charges the Insurers may have
incurred.
12.
The
Insurers shall not be liable to pay interest other than interest for
default.
This comment has been removed by the author.
ReplyDelete