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Products & Services >> Contractors' all Risks Policy>>
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Whereas the Insured named in the Schedule hereto has made to the
Reliance Insurance Limited (hereinafter called "the Insurer") 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 witnesseth that subject tot he Insured
having paid to the Insurer the premium mentioned in the Schedule and
subject to the terms, exclusions, provisions and conditions
contained herein or endorsed hereon the Insurer will indemnify the
Insured in the manner and to the extent hereinafter provided. |
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General Exclusions |
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The
Insurer will not indemnify the Insured in respect of loss,
damage or liability directly or indirectly caused by or arising
out of or aggravated by |
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(a) War, invasion, act of
foreign enemy, hostilities (whether war be declared or not), civil
war, rebellion, revolution, Insurrection, mutiny, riot, civil
commotion, strike, lock-out, military or usurped power, a group of
malicious persons or persons acting on behalf of or in connection
with any political organisation, conspiracy, confiscation
commandeering, requisition or destruction or damage by order of any
government dejure or defector by any public authority;
(b) nuclear reaction, nuclear radiation or radioactive
contamination;
(c) wilful act or wilful negligence of the Insured or of his
representatives;
(d) cessation of work whether total or partial. |
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In
any action, suit or other proceeding where the Insurer allege
that reason of the provisions of Exclusion (a) above any loss,
destruction, damage or liability is not covered by this
Insurance burden of providing that such loss, destruction,
damage or liability is covered shall be upon the Insured. |
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Period of Cover |
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The
Liability of the Insurer shall commence, notwithstanding any
date to the contrary specified in the Schedule, directly upon
commencement of work or after the unloading of the items entered
In the Schedule at the site. The Insurers' liability expires for
parts of the insured contract works taken over or put into
service.
At the latest the Insurance shall expire on the date specified
in the Schedule. Any extensions of the Period of Insurance are
subject to the prior written consent of the Insurer. |
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GENERAL CONDITIONS |
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1. The due observance
and fulfilment 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 Insurer.
2. The Schedule and the Section(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 and the Section(s). Any word or
expression to which a specific meaning has been attached in any
part of this Policy or of the Schedule or of the Section (s)
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 Insurer to prevent loss, damage or liability and comply with
statutory requirements and manufacturers' recommendations.
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4. |
a) Representatives of
the Insurer shall at any reasonable time have the right to
inspect and examine the risk and the Insured shall provide the
representatives of the Insurer with all details and information
necessary for the assessment of the risk.
b) The Insured shall immediately notify the Insurer by telegram
and 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, 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 be confirmed in writing by the Insurer. |
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5. In the event of
any occurrence which might give rise to a claim under this
Policy, the Insured shall |
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a) immediately notify
the Insurer by telephone or telegram as well as in writing,
giving an indication as to the nature and extent of loss or
damage;
b) take all 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 Insurer;
d) furnish all such information and documentary evidence as the
Insurer may require;
e) inform the police authorities in case of loss or damage due
to theft or burglary;
The Insurer shall not in any case be liable for loss, damage or
liability of which no notice has been received by the Insurer
within 14 days of its occurrence.
Upon notification being given to the Insurer under this
condition, the Insured may carry out the repairs or replacement
of any minor damage; in all other cases a representative of the
Insurer shall have the opportunity of inspecting the loss or
damage before any repairs or alterations are effected. If a
representative of the Insurer 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.
The liability of the Insurer under this Policy in respect of any
item sustaining damage shall cease if the said item is not
repaired properly without delay. |
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6. The Insured shall
at the expense of the Insurer do and concur in doing and permit
to be done all such acts and things as may be necessary or
required by the Insurer 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
Insurer shall be or would become entitled or subrogated upon
their paying for or making good any loss or damage under this
Policy, whether such acts and things shall be or become
necessary or required before or after the Insured's
indemnification by the Insurer.
7. 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 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 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 Insurer.
8. If a claim is in any respect fraudulent, or if any false
declaration is made or used in support thereof, or if fraudulent
means or devices are used the Insured or anyone acting on his
behalf to obtain any benefit under this Policy, or if p claim is
made and rejected and no action or suit is commenced within
three months after such rejection or, in case of arbitration
taking place as provided herein, within three months after the
Arbitrator or Arbitrators 'or Umpire have made their award, all
benefit under this Policy shall be forfeited.
9. If at the time any claim arises under the Policy there be any
other insurance covering the same loss, damage or liability the
Insurer shall not be liable to pay or contribute more than their
rateable proportion of any claim for such loss, damage or
liability.
SECTION I-MATERIAL DAMAGE
The Insurers hereby agree with the Insured that if at any time
during the period of cover the items or any part thereof entered
in the Schedule shall suffer any unforeseen and sudden physical
loss or damage from any cause, other than those specifically
excluded, in a manner necessitating repair or replacement, the
Insurer will indemnify the Insured in respect of such loss or
damage as hereinafter provided by payment in cash, replacement
or repair (at their own option) up to an amount not exceeding in
respect of each of the items specified in the Schedule the sum
set opposite thereto 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.
The Insurer will also reimburse the Insured for the cost of
clearance of debris following upon any event giving rise to a
claim under this Policy provided a separate sum there for has
been entered in the Schedule.
Special Exclusions to Section 1
The Insurer shall not, however, be liable for
1. the deductible stated in the Schedule to be borne by the
Insured in anyone occurrence;
2. consequential loss of any kind or description whatsoever
including penalties ,losses due to delay, lack of performance,
loss of contract;
3. loss or damage due to faulty design;
4. the cost of replacement, repair or rectification of defective
material and/or workmanship, but this exclusion shall be limited
to the items immediately affected and shall not be deemed to
exclude loss of or damage to correctly executed items resulting
from an accident due to such defective material and/or
workmanship;
5. wear and tear, corrosion, oxidation, deterioration due to
lack of use and normal atmospheric conditions;
6. mechanical and/or electrical breakdown or derangement of
construction plant, equipment and construction machinery;
7. loss of or damage to vehicles licensed for general road use
or water borne vessels or aircraft;
8. loss of or damage to files, drawings, accounts, bills,
currency, stamps, deeds, evidences of debt, notes securities,
cheques;
9. loss or damage discovered only at the time of taking an
inventory. |
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Provisions
Applying to Section 1
Memo 1. Sums Insured: It is a requirement of this
insurance that the sums insured stated in the Schedule shall not
be less than,
for item 1: the full value of the contract works at the
completion of the construction, inclusive of all materials,
wages, freight, customs duties, dues, and materials or items
supplied by the Principal;
for items 2 and 3: the replacement value of construction plant,
equipment and construction machinery; which shall mean the cost
of replacement of the insured items by new items of the same
kind and same capacity;
and the Insured undertakes to increase or decrease the amounts
of insurance in the event of any material fluctuation in wages
or prices provided always that such increase or decrease shall
take effect only after the same has been recorded on the Policy
by the Insurer.
If, in the event of loss or damage, it is found that the sums
insured are less than the amounts required to be insured, then
the amount recoverable by the Insured under this Policy shall be
reduced in such proportion as the sums insured bear to the
amounts required to be insured. Every object and cost item is
subject to this condition separately.
Memo 2-Basis of loss Settlement: In the event of any loss
or damage the basis of any settlement under this
Policy shall be - .
a) in the case of damage which can be repaired- the cost of
repairs necessary to restore the items to their condition
immediately before the occurrence of the damage less salvage, or
b) in the case of a total loss the actual value of the items
immediately before the occurrence of the loss less salvage,
however, only to the extent the costs claimed had to be borne by
the Insured and to the extent they are included in the sums
insured and provided always that the provisions and conditions
have been complied with.
The Insurer will 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. All damage which can be repaired shall be repaired, but
if the cost of repairing any damage equals or exceeds the value
of items immediately before the occurrence of the damage, the
settlement shall be made on the basis provided for in (b)above.
The cost of any provisional repairs will be borne by the Insurer
if such repairs constitute part of the final repairs and do not
increase the total repair expenses.
The cost of any alterations, addition_ and/or improvements shall
not be recoverable under this Policy.
Memo 3-Extension of Cover: Extra charges for overtime, night
work, work on public holidays express freight are covered by
this insurance only if previously and specially agreed upon in
writing. |
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SECTION II-THIRD
PARTY LIABILITY
The Insurer will indemnify the Insured up to but not exceeding
the amounts specified in the Schedule against such sum which the
Insured shall become legally liable to pay as damages consequent
upon –
a) accidental bodily injury to or illness of third parties
(whether fatal or not) ;
b) accidental loss of or damage to property belonging to third
parties occurring indirect connection with the construction or
erection of the items insured under Section 1 and happening or
in the immediate vicinity of the site during the Period of
Cover.
In respect of a claim for compensation to which the indemnity
provided herein applies, the Insurer will in addition indemnify
the Insured against-
a) all costs and expenses of litigation recovered by any
claimant from the Insured, and
b) all costs and expenses incurred with the written consent of
the Insurer, provided always that the liability of the Insurer
under this section shall not exceed the limits of indemnity
stated in the Schedule.
Special Exclusions to Section II
The Insurer will not indemnify the Insured in respect of-
1. The deductible stated in the Schedule to be borne by the
Insured in anyone occurrence;
2. the expenditure incurred in doing or redoing or making good
or repairing or replacing anything covered or coverable under
Section I of this Policy;
3. damage to any property or land or building caused by
vibration or by the removal or weakening of support or
injury or damage to any person or property occasioned by or
resulting from any such damage (unless
especially agreed upon by endorsement)
4. liability consequent upon- |
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a) bodily injury to
or illness of employees or workmen of the Contractor(s) or the
Principal(s) or any other firm connected with the project which
or part of which is insured under Section 1, or members of their
families;
b) loss of or damage to property belonging to or held in care,
custody or control of the Contractor(s). the Principal(s) or any
other firm connected with the project which or part of which is
insured under Section 1, or an employee or workman of one of the
aforesaid;
c) any accident caused by vehicles licensed for general road use
or by waterborne vessels or aircraft; d) any agreement by the
Insured to pay any sum by way of indemnity or otherwise unless
such liability would have attached also in the absence of such
agreement. |
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Special Conditions Applying to Section II |
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1. No admission,
offer, promise, payment or indemnity shall be made or given by
or on behalf of the Insured without the written consent of the
Insurer who shall be entitled, if they so desire, to take over
and conduct in the name of the Insured the defence or settlement
of any claim or to prosecute for their own benefit in the name
of the Insured any claim for indemnity or damages or otherwise
and shall have full discretion in the conduct of any proceeding
or in the settlement of any claim and the Insured shall give all
such information and assistance as the Insurer may require.
2. The Insurer may so far as any accident is concerned pay to
the Insured the limit of indemnity for anyone accident (but
deducting there from in such case any sum or sums already paid
as compensation in respect thereof) or any lesser $um for which
the claim or claims arising from such accident can be settled
and the Insurer shall thereafter be under no further liability
in respect of such accident under this section |
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