Principal’sAdvance Loss of Profits

 Principal’sAdvance Loss of Profits

The Insurers shall indemnify the Insured - named as Principal in the Schedule to Section I of this Policy - in respect of the loss of gross profit actually sustained due to the reduction in turnover and the increased cost of working as defined in this Section, if at any time during the period of insurance stated in the Schedule to this Section any or all the insured items suffer loss or damage covered under Section I of this Policy, unless specifically excluded in this Section, thereby causing an interference in the erection work and/or testing schedule resulting in a delay of commencement of and/or interference with the insured business, hereinafter referred to as “the delay”.

 The amount payable as indemnity hereunder shall be:

- in respect of loss of gross profit: the sum obtained by applying the rate of gross profit to the amount by which the actual turnover during the indemnity period falls short of the turnover which would have been achieved had the delay not occurred;

- in respect of increased cost of working: the additional expenditure necessarily and reasonably incurred for the sole purpose of avoiding or diminishing the reduction in turnover which, without such expenditure, would have taken place during the indemnity period, but not exceeding the sum obtained by applying the rate of gross profit to the amount of the reduction in turnover thereby avoided.

If the annual sum insured hereunder is less than the sum obtained by applying the rate of gross profit to the annual turnover, the amount payable shall be reduced proportionately.

Definitions

Period of Insurance

 The period of insurance shall be the period stated in the Schedule to this Section, terminating on the date specified in the Schedule or on any earlier date when the EAR material damage cover of Section I ceases.

Scheduled Date of Commencement of the Insured Business

The provisional date stated in the Schedule to this Section or any revised date upon which the business would have commenced had the delay not occurred.

Indemnity Period

The period during which the results of the business are affected in consequence of the delay, beginning on the scheduled date of commencement of the insured business and not exceeding the maximum indemnity period stated in the Schedule to this Section.

Time Excess

The period stated in the Schedule to this Section for which the Insurers are not liable. The corresponding amount shall be calculated by multiplying the average daily value of loss sustained during the indemnity period by the number of days agreed upon as the time excess.

Turnover

The amount of money (less discounts allowed) paid or payable to the Insured for goods, products or services or rendered in the course of the insured business conducted Annual Turnover at the premises.

Annual Turnover

The turnover which, had the delay not occurred, would have been achieved during the 12 months after the scheduled date of commencement Annual Gross Profit stocks of the insured business.

Annual Gross Profit

The amount by which the value of the annual turnover and the value of the closing stock exceeds the value of the opening stock and the amount of the specified working expenses. The value of the opening and closing shall provisions be calculated in accordance being made for depreciation.

Specified working expenses shall with the Insured’s normal be any costs incurred for the acquisition auxiliaries accounting of goods, methods, raw materials due or as well as for supplies (unless required for the upkeep of operations) and any costs for packaging, carriage, etc., freight, intermediate storage, turnover insofar as such costs are dependent tax, purchase tax, licence fees and royalties for inventors, on turnover.

Rate of Gross Profit

The rate which, had the delay not occurred, would have been earned on the turnover during the indemnity period.

Special Exclusions Applying to Section Ill

The Insurers shall not be liable for

1.      loss of gross profit and/or increased cost of working due to any delay caused by or resulting from

a.      1 .1 . loss or damage covered under Section I by way of endorsement, in writing;

b.      1.2. earthquake, volcanic eruption, tsunami, unless it has been specifically unless it has been specifically

c.      1.3. loss of or damage to surrounding property, construction

d.      1.4. loss of or damage to operating media or feedstock, machinery, shortage, agreed in writing; plant and equipment; destruction, deterioration agreed of or damage to any materials necessary for the insured business;

e.      1.5. any restrictions

f.        1.6. non-availibility

g.      1.7. alterations, imposed of funds; additions, by a public authority; improvements, carried out after the occurrence; rectification of defects or faults or elimination of any deficiencies

h.      1.8. loss or damage to items taken over or taken into use by the Insured or for which cover under Section I to this Policy has ceased;

2. any loss due to fines or damages for breach of contract, for late or non-completion any penalties of whatever nature;

3. loss of business due to causes such as suspension, lapse or cancellation of orders, or for of a lease, licence or order, etc. which occurs after the date of actual commencement

4. loss of or damage to erection work of a prototype of the business; nature, unless specifically agreed by endorsement.

Provisions Applying to Section III

Memo 1 - Extension of Period:

Any extension of the period of insurance under Section I of this Policy shall not automatically lead to an extension of the period of insurance stated in the Schedule to this Section. Any extension of the period of insurance under this Section of the Policy shall be requested in writing as early as possible by the Insured, stating the circumstances have effect for this Section only if specifically Any alteration of the scheduled date of commencement have effect for this Section only if specifically leading to the need for extension, agreed upon in writing. and shall of the insured business shall be reported and shall agreed upon in writing.

Memo 2 - Basis of Loss Settlement:

In calculating the rate of gross profit and annual turnover, the following points shall in particular be taken into consideration: a) the results of the insured business for the 12-month period after commencement, b) variations occurred, c) variations and special circumstances and special circumstances which would have affected the insured business had the delay not affecting the insured business after commencement, so that the final figures represent as closely as may be reasonably practicable the results which the insured business would have obtained after the scheduled date of commencement had the delay not occurred.

Memo 3 - Return of Premium:

If the Insured declares (certified by the Insured’s auditors) that the gross profit earned during the accounting period of twelve months following the commencement the insured business or the date on which but for the delay the business would have commenced of was less than the sum insured thereon, a pro rata return of premium not exceeding one third of the premium paid shall be made in respect of the difference. If any loss 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 damage.

Special Conditions Applying to Section Ill

1. The Insured shall present the Insurers with updated progress reports at intervals stated in the Schedule to this Section.

2. In the event of any material change in the original risk such as - changes of the envisaged progress programme, - alteration, modification or addition testing procedure, etc. to any item of machinery or work, etc. - - departure from prescribed construction or operation conditions changes in the Insured’s interest (such as discontinuation placed in receivership) taking place, the Policy shall be void unless its continuance or liquidation of the business or its being be agreed by memorandum Insurers.

3. In the event of any occurrence signed by the which might cause a delay and give rise to a claim under this section:

a) the Insured shall immediately confirmation thereof notify within forty-eight the Insurers by telephone hours of the occurrence; or telegram and send them written

b) the Insured shall do and concur in doing and permit to be done all such things as may be reasonably practicable to minimize or establish the extent of any interference with the erection work and/or testing so as to avoid or diminish any delay resulting therefrom.

c) the Insurers and every person authorized by the insurers shall, without prejudice to any party insured by this Policy, have access to the erection site where such loss or damage has occurred for the purpose of direct negotiation with the responsible contractor or subcontractor in order to establish the possible cause and extent of the loss or damage, its effect on the insured items, to examine the possibilities for minimizing any delay to the scheduled date of commencement and if necessary to make any reasonable recommendations of the insured business, for the avoidance or minimization of such delay.

This condition shall be evidence of the leave and licence of the Insured to the Insurers so to do. If the Insured or anyone acting on his behalf hinders or obstructs the Insurers mentioned acts or does not comply with such recommendations during any of the above- of the Insurers, this Section shall be forfeited.

4. In the event of a claim being made under this Section, the Insured shall at his own expense deliver to the Insurers not later than thirty days after the delay or within such further periods as the Insurers may allow in writing a written statement setting e.g. invoices, forth particulars of his claim. Furthermore, the Insured shall at his own expense produce and furnish to the Insurers such books of account and other business books, balance sheets and other documents, proofs, information, explanations or other evidence as may reasonably be required by the Insurers for the purpose of investigating or verifying the claim, together with - if required - a statutory declaration connected therewith.

5. The indemnity shall be payable one month after final determination of its amount. Notwithstanding the above, the Insured may, one month after the Insurers have been duly notified of the loss and have acknowledged their liability, claim as advance payment(s) prevailing circumstances.

The Insurers shall be entitled to postpone payment:

a) if there are doubts as to the Insured’s the minimum amount(s) payable under the right to receive payment, until the necessary proof is furnished;

 b) if, as a result of any loss or damage or any delay to the anticipated date of commencement insured business, police or criminal investigations of the have been ini

ti The Insurers shall not be liable to pay interest on indemnity moneys withheld other than interest for default.ated against the Insured, until the completion of such investigations.

The Insurers shall not be liable to pay interest on indemnity moneys withheld other than interest for defau