PAR Policy Wordings
PROPERTY ALL RISKS INSURANCE
POLICY WORDING
IN CONSIDERATION of the Insured named in the Schedule having paid or agreed to pay the required
Premium, LIBERTY INSURANCE LIMITED (hereafter called the Company) agrees (subject to the
terms definitions conditions and exclusions contained herein or endorsed or otherwise expressed
hereon which shall so far as the nature of them respectively will permit be deemed to be conditions
precedent to the right of the Insured to recover hereunder) that if any of the Property Insured shall
suffer any unforeseen sudden and physical loss destruction or damage other than by an excluded
cause, at any time during the Period of Insurance shown in the Schedule or of any subsequent period
in respect of which the Insured shall have paid and the Company shall have accepted the premium
required for the renewal of this Policy,
THE COMPANY WILL PAY TO THE INSURED the value of the property at the time of the happening
of its unforeseen sudden and physical loss or destruction or the amount of such unforeseen sudden
and physical damage (unforeseen sudden and physical loss destruction or damage being hereinafter
termed Damage) or at its option reinstate or replace such property or any part thereof.
Provided that the liability of the Company under this Policy shall in no case exceed:
(i) in the whole the total sum insured or in respect of any item its sum insured or any limit of
liability stated in the Schedule at the time of the loss destruction or damage;
(ii) the sum insured (or limit) remaining after deduction for any loss destruction or damage
occurring during the same period of insurance, unless the Company shall have agreed to
reinstate any such sum insured (or limit).
EXCLUSIONS
This Policy does not cover:
1. Damage to the Property Insured caused by:
(a) (i) faulty or defective design materials or workmanship, inherent vice, latent
defect, gradual deterioration, deformation or distortion or wear and tear;
(ii) interruption of the water supply, gas, electricity or fuel systems or failure of the
effluent disposal systems to and from the Premises;
unless Damage by a cause not excluded in the Policy ensues and then the Company
shall be liable only for such ensuing Damage;
(b) (i) collapse or cracking of buildings;
(ii) corrosion, rust, extremes or changes in temperature, dampness, dryness, wet
or dry rot, fungus, shrinkage, evaporation, loss of weight, change in colour
flavour texture or finish, action of light, vermin, insects, marring or scratching;
unless such loss is caused directly by Damage to the Property Insured or to premises
containing such property by a cause not excluded in the Policy;
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(c) (i) theft except from an enclosed building and then only if there is violent or
forcible entry to or exit from such building;
(ii) fraudulent or dishonest acts, fraudulent misappropriation, embezzlement,
forgery;
(iii) disappearance, unexplained or inventory shortage, misfiling or misplacing of
information, shortage in supply or delivery of materials or shortage due to
clerical or accounting error;
(iv) cracking fracturing collapse or overheating of boilers economisers vessels
tubes or pipes, nipple leakage or the failure of welds of boilers;
(v) damage to all Machinery (as defined in this exclusion), electronic data
processing equipment or electronic control equipment occasioned by or
happening through any mechanical, electrical, electro-mechanical, electronic
or hydraulic malfunction, failure, derangement, breakdown or non-operation of
whatsoever kind;
(vi) bursting, overflowing, discharging or leaking of water tanks, apparatus or
pipes when the premises are empty or disused;
unless
(I) Damage by a cause not excluded in the Policy ensues and then the Company
shall be liable only for such ensuing Damage, and
(II) such loss is caused directly by Damage to the Property Insured or to
premises containing such property by a cause not excluded in the Policy;
For the purpose of this exclusion, Machinery means any apparatus whether or not
functioning independently or as any component part of a collection of apparatus which
generates, contains, controls, transmits, receives, transforms or utilises any form or
source of energy or power.
(d) (i) coastal or river erosion;
(ii) subsidence, ground heave or landslip;
(iii) normal settlement or bedding-down of new structures;
(iv) wind, rain, hail, frost, snow, flood, sand or dust to movable property in the
open or in open-sided buildings or to fences and gates;
(v) the freezing, solidification or inadvertent escape of molten material.
2. Damage caused by or arising from:
(a) any wilful act or wilful negligence on the part of the Insured or any person acting on
his behalf;
(b) cessation of work, delay or loss of market or any other consequential or indirect loss
of any kind or description whatsoever.
3. Damage directly or indirectly caused by resulting from or in connection with any of the
following regardless of any other cause or event contributing concurrently or in any
other sequence to the Damage:
(a) war, invasion, act of foreign enemy, hostilities or warlike operations (whether war be
declared or not), civil war;
(b) mutiny, civil commotion assuming the proportions of or amounting to a popular rising,
military rising, insurrection, rebellion, revolution, military or usurped power;
(c) acts of terrorism;
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(d) (i) permanent or temporary dispossession resulting from confiscation,
nationalisation, commandeering or requisition by any lawfully constituted
authority;
(ii) permanent or temporary dispossession of any building resulting from the
unlawful occupation of such building by any person;
Provided that the Company is not relieved of any liability to the Insured in respect of
Damage to the Property Insured occurring before dispossession or during temporary
dispossession which is otherwise insured by this Policy;
(e) the destruction of property by order of any public authority.
For the purpose of this exclusion, "terrorism" means an act, including but not limited to the use
of force or violence and/or threat thereof, of any person or group(s) of persons, whether acting
alone or on behalf of or in connection with any organisation(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 exclusion also applies to loss destruction or damage, cost or expenses of whatever
nature directly or indirectly caused by, resulting from or in connection with any action taken in
controlling, preventing, suppressing or in any way relating to 3(a), (b) or (c) above.
In any action, suit or other proceeding where the Company alleges that by reason of the
provisions of exclusions 3(a), (b) or (c) above any loss destruction or damage, cost or
expenses is not covered by this insurance the burden of proving that such loss destruction or
damage, cost or expenses is covered shall be upon the Insured.
In the event any portion of this exclusion is found to be invalid or unenforceable, the remainder
shall remain in full force and effect.
4. Damage directly or indirectly caused by or arising from or in consequence of or
contributed to by:
(a) nuclear weapons material;
(b) (i) ionising radiation or contamination by radioactivity from any nuclear fuel or
from any nuclear waste from the combustion of nuclear fuel. Solely for the
purpose of this exclusion
4(b) combustion shall include any self-sustaining
process of nuclear fission;
(ii) the radioactive, explosive or other hazardous properties of any explosive
nuclear component thereof.
5. Damage arising from pollution or contamination except (unless otherwise excluded)
Damage to the Property Insured caused by:
(a) pollution or contamination which itself results from a peril insured against;
(b) any peril insured against which itself results from a pollution or contamination.
6. Damage to:
(a) money, cheques, stamps, bonds, credit cards, securities of any description, jewellery,
precious stones, precious metals, bullion, furs, curiosities, rare books or works of art
unless specifically mentioned as insured by this Policy and then only in respect of the
perils specified below;
(b) fixed glass;
(c) glass (other than fixed glass), china, earthenware, marble or other fragile or brittle
objects;
(d) electronic installations, computers and data processing equipment;
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but this shall not exclude Damage (not otherwise excluded) caused by fire, lightning,
explosion, aircraft, riot, strikers, locked-out workers, persons taking part in labour
disturbances, malicious persons, impact by any road vehicle or animals, earthquake,
windstorm, flood, bursting, overflowing, discharging or leaking of water tanks, apparatus or
pipes.
7. Damage to:
Goods held in trust or on commission, documents, manuscripts, business books, computer
systems records, patterns, models, moulds, plans, designs, explosives, unless specifically
mentioned as insured by this Policy.
8. Damage to:
(a) vehicles licensed for road use (including accessories thereon) caravans, trailers,
railway locomotives or rolling stock, watercraft, aircraft, spacecraft or the like;
(b) property in transit other than within the Premises specified in the Schedule;
(c) property or structures in the course of demolition, construction or erection and
materials or supplies in connection therewith;
(d) land (including top-soil, back-fill drainage or culverts) driveways, pavements, roads,
runways, railway lines, retaining walls, dams, reservoirs, canals, rigs, wells, pipelines,
tunnels, bridges, docks, piers, jetties, excavations, wharves, mining property,
underground off-shore property;
(e) livestock, animals, birds or fish, standing timber, growing crops, trees and pastures;
(f) property damaged as a result of its undergoing any process;
(g) plant, machinery or equipment during installation removal or resiting (including
dismantling and re-erection) if directly attributable to such operations;
(h) property undergoing alteration, repair, testing, installation or servicing, including
materials and supplies therefor if directly attributable to the operations or work being
performed thereon;
(i) property more specifically insured by or behalf of the Insured.
9. Damage to:
Property which at the time of the happening of such Damage is insured by or would but for the
existence of this Policy be insured by any marine policy or policies except in respect of any
excess beyond the amount which would have been payable under the marine policy or
policies had this insurance not been effected.
10. Damage to:
Boilers, economisers, turbines or other vessels, machinery or apparatus in which pressure is
used or their contents resulting from their explosion or rupture.
11. Electronic Data:
(a) Notwithstanding any provision to the contrary within the Policy or any endorsement
thereto, it is understood and agreed as follows:
(i) This Policy does not insure loss, damage, destruction, distortion, erasure,
corruption or alteration of Electronic Data from any cause whatsoever
(including but not limited to Computer Virus) or loss of use, reduction in
functionality, cost, expense of whatsoever nature resulting therefrom,
regardless of any other cause or event contributing concurrently or in any
other sequence to the loss.
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Electronic Data means facts, concepts and information converted to a form
useable for communications, interpretation or processing by electronic and
electromechanical data processing or electronically controlled equipment and
includes programs, software and other coded instructions for the processing
and manipulation of data or the direction and manipulation of such equipment.
Computer Virus means a set of corrupting, harmful or otherwise unauthorised
instructions or code including a set of maliciously introduced unauthorised
instructions or code, programmatic or otherwise, that propagate themselves
through a computer system or network of whatsoever nature. Computer Virus
includes but is not limited to “Trojan Horses”, “worms” and “time or logic
bombs”.
(ii) However, in the event that a peril listed below results from any of the matters
described in paragraph (i) above, this Policy, subject to all its terms, conditions
and exclusions, will cover physical damage occurring during the Policy period
to the Property Insured by this Policy directly caused by such listed peril.
Listed Perils: Fire, Explosion.
(b) Electronic Data Processing Media Valuation
Notwithstanding any provision to the contrary within the Policy or any endorsement
thereto, it is understood and agreed as follows:
Should Electronic Data processing media insured by this Policy suffer physical loss or
damage insured by this Policy, then the basis of valuation shall be the cost of the
blank media plus the costs of copying the Electronic Data from back-up or from
originals of a previous generation. These costs will not include research and
engineering nor any costs of recreating, gathering or assembling such Electronic
Data. If the media is not repaired, replaced or restored the basis of valuation shall be
the cost of the blank media. However, this Policy does not insure any amount
pertaining to the value of such Electronic Data to the Insured or any other party, even
if such Electronic Data cannot be recreated, gathered or assembled.
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SPECIALS EXCLUSIONS
1. Nuclear Energy Risks Exclusion Clause (1994)
(Worldwide Excluding U.S.A. and CANADA) - NMA 1975(A)
This Agreement shall exclude Nuclear Energy Risks whether such risks are written directly
and/or by way of insurance and/or via Pools and/or Associations.
For all purposes of this Agreement Nuclear Energy Risks shall mean all first party and/or third
party insurances (other than workers' compensation and/or employers' liability) in respect of:-
(I) All Property on the site of a nuclear power station. Nuclear Reactors, reactor buildings
and plant and equipment therein on any site other than a nuclear power station.
(II) All Property, on any site (including but not limited to the sites referred to in (I) above)
used or having been used for:-
(a) The generation of nuclear energy; or
(b) The Production, Use or Storage of Nuclear Material.
(III) Any other Property eligible for insurance by the relevant local Nuclear Insurance Pool
and/or Association but only to the extent of the requirements of that local Pool and/or
Association.
(IV) The supply of goods and services to any of the sites, described in (I) to (III) above,
unless such insurances shall exclude the perils of irradiation and contamination by
Nuclear Material.
Except as under-noted, Nuclear Energy Risks shall not include:-
(i) Any insurance in respect of the construction or erection or installation or replacement or
repair or maintenance or decommissioning of property as described in (I) to (III) above
(including contractors' plant and equipment);
(ii) Any Machinery Breakdown or other Engineering insurance not coming within the scope
of (i) above;
Provided always that such insurance shall exclude the perils of irradiation and contamination by
Nuclear Material.
However, the above exemption shall not extend to:-
(1) The provision of any insurance whatsoever in respect of:-
(a) Nuclear Material:
(b) Any Property in the High Radioactivity Zone or Area of any Nuclear Installation as
from the introduction of Nuclear Material or - for reactor installations - as from fuel
loading or first criticality where so agreed with the relevant local Nuclear Insurance
Pool and/or Association.
(2) The provision of any insurance for the under-noted perils:-
- Fire, lightning, explosion;
- Earthquake;
- Aircraft and other aerial devices or articles dropped therefrom;
- Irradiation and radioactive contamination;
- Any other peril insured by the relevant local Nuclear Insurance Pool and/or
Association;
in respect of any other Property not specified in (1) above which directly involves the
Production, Use or Storage of Nuclear Material as from the introduction of Nuclear
Material into such Property.
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Definitions
"Nuclear Material" means:-
i) Nuclear fuel, other than natural uranium and depleted uranium, capable of producing
energy by a self sustaining chain process of nuclear fission outside a Nuclear Reactor,
either alone or in combination with some other material; and
(ii) Radioactive Products or Waste.
"Radioactive Products or Waste" means any radioactive material produced in, or any
material made radioactive by exposure to the radiation incidental to the production or
utilisation of nuclear fuel, but does not include radioisotopes which have reached the
final stage of fabrication so as to be usable for any scientific, medical, agricultural,
commercial or industrial purpose.
"Nuclear Installation" means:-
(i) Any Nuclear Reactor;
(ii) Any factory using nuclear fuel for the production of Nuclear Material, or any factory for
the processing of Nuclear Material, including any factory for the reprocessing of
irradiated nuclear fuel; and
(iii) Any facility where Nuclear Material is stored, other than storage incidental to the
carriage of such material.
"Nuclear Reactor" means any structure containing nuclear fuel in such an arrangement that a
self sustaining chain process of nuclear fission can occur therein without an additional source of
neutrons.
"Production, Use or Storage of Nuclear Material" means the production, manufacture,
enrichment, conditioning, processing, reprocessing, use, storage, handling and disposal of
Nuclear Material.
"Property" shall mean all land, buildings, structures, plant, equipment, vehicles, contents
(including but not limited to liquids and gases) and all materials of whatever description whether
fixed or not.
"High Radioactivity Zone or Area" means:-
(i) For nuclear power stations and Nuclear Reactors, the vessel or structure which
immediately contains the core (including its supports and shrouding) and all the contents
thereof, the fuel elements, the control rods and the irradiated fuel store; and
(ii) For non-reactor Nuclear Installations, any area where the level of radioactivity requires
the provision of a biological shield.
2. Nuclear Exclusion (SR 482)
This Agreement shall not apply to nuclear energy risks in accordance with the Nuclear Energy
Risks Exclusion Clause NMA 1975a and any other liability, loss, cost or expense of whatsoever
nature directly or indirectly caused by, resulting from, arising out of or in connection with nuclear
reaction, nuclear radiation or radioactive contamination regardless of any other cause
contributing concurrently or in any other sequence to the loss, save where such liability, loss,
cost or expense is expressly exempted from NMA 1975a.
3. Nuclear Energy Risks Exclusion Clause
1. This contract excludes nuclear energy risks whether written directly or by way of
insurance or via pools or associations. Under this contract the term “nuclear energy
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risks” means any first or third party insurance (other than workers’ compensation or
employers’ liability) in respect of:
1.1 nuclear reactors and nuclear power stations or plant;
1.2 any other premises or facilities concerned with
1.2.1 the production of nuclear energy or
1.2.2 the production or storage or handling of nuclear fuels or nuclear waste;
1.3 any other premises or facilities eligible for insurance by any local nuclear pool or
association but only to the extent of the requirements of the local pool or
association;
1.4 nuclear or radioactive fuel, or nuclear or radioactive waste.
2. However, this exclusion shall not apply
2.1 to any insurance in respect of the construction, erection or installation of buildings,
plant and other property (including contractor’s plant and equipment used in
connection therewith):
2.1.1 for the storage of nuclear fuel – prior the commencement of storage
2.1.2 as regards reactor installations – prior to the commencement of loading of
nuclear fuel into the reactor, or prior to the initial criticality, depending on
the commencement of the insurance of the relevant local nuclear pool or
association;
2.2 to any machinery breakdown or other engineering insurance not coming within the
scope of 3.1. above, nor affording coverage in the “high radioactivity” zone;
2.3 to any insurance in respect of the hulls of ships, aircraft or other conveyances;
2.4 to any insurance in respect of loss of or damage to (including any expenses
incurred therewith) nuclear or radioactive fuel or nuclear or radioactive waste while
in transit or storage as cargo, other than while being processed or while in storage
at the reactor installation or any other final destination concerned with production,
storage or handling of nuclear fuel or nuclear waste.
4. Property Damage Clarification Clause
Property damage covered under this Agreement shall mean physical damage to the substance
of property.
Physical damage to the substance of property shall not include damage to data or software, in
particular any detrimental change in data, software or computer programs that is caused by a
deletion, a corruption or a deformation of the original structure.
Consequently the following are excluded from this Agreement:
A. Loss of or damage to data or software, in particular any detrimental change in data,
software or computer programs that is caused by a deletion, a corruption or a
deformation of the original structure, and any business interruption losses resulting from
such loss or damage. Notwithstanding this exclusion, loss of or damage to data or
software which is the direct consequence of insured physical damage to the substance
of property shall be covered.
B. Loss or damage resulting from an impairment in the function, availability, range of use or
accessibility of data, software or computer programs, and any business interruption
losses resulting from such loss or damage.
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5. Seepage, Pollution and Contamination Exclusion Clause NMA 1685
This Agreement does not cover any liability in respect of:
1. Loss of, damage to, or loss of use of property directly or indirectly caused by seepage,
pollution or contamination, provided always that this paragraph shall not apply to loss of or
physical damage to or destruction of tangible property, or loss of use of such property
damaged or destroyed, where such seepage, pollution or contamination is a consequence
of an otherwise under this agreement indemnifiable sudden, unintended and unexpected
happening.
2. The cost of removing, nullifying or cleaning-up seeping, polluting or contaminating
substances unless the seepage, pollution or contamination is a consequence of an
otherwise under this agreement indemnifiable sudden, unintended or unexpected
happening.
3. Fines, penalties, punitive or exemplary damages.
Furthermore it is agreed that the Insurer is only liable for such claims which have been reported
to the Insurer within twelve months from the occurrence of the otherwise indemnifiable
happening.
6. Sanction Limitation Exclusion
Liberty shall not provide cover and shall not be liable to pay any claim or provide any benefit
hereunder to the extent that the provision of such cover, payment of such claim or provision of
such benefit would expose Liberty to any sanction, prohibition or restriction under United
Nations resolutions or the trade or economic sanctions, laws or regulations of the European
Union, United Kingdom or United State of America.
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DEFINITION OF PROPERTY
Building
The building of the Insured Premises, which is owned by the Insured or for which the Insured is legally
responsible, in which the Business in carried out, located at the situation shown in the Schedule;
The term “Building(s)” includes:
a) landlords’ fixtures and fittings;
(b) outbuildings;
(c) walls, gates and fences;
(d) piping ducting cables wires and associated control gear and accessories on the premises and
extending to the public mains, but only to the extent of the Insured’s responsibility
(e) yards car-parks roads and pavements.
Content
The property at the Building which are used in the Business and are owned by the Insured or for which
the Insured is legally responsible.
The Content consists of:
(a) all contents within the Building, including machinery and equipment, furniture, fixtures and
fittings;
(b) renovations, improvements, alterations and decorations made by the Insured to the Building
(c) records and documents;
(d) pattern model mould or set of same;
(e) clothing and tools of trade belonging to directors and employees of the Insured of which
Damage occurs in the course of their employment whilst at the Premises;
(f) contents of outbuilding;
(g) contents in the open yards.
Contents does not include:
(a) mechanically or electrically propelled vehicles;
(b) caravans or trailers;
(c) watercraft or aircraft;
(d) stock and material in trade.
Records and Documents
Written, printed, filmed or taped records (including computer records), deeds, plans or drawings or
documents of any other type which are:
(a) used in the Business,
(b) in a Building at the Premises, and
(c) are owned by the Insured or are in the Insured’s custody in the ordinary course of the
Business.
Stock and Material in Trade
The items belong to the Insured or for which the Insured is legally responsible or has assumed a
responsibility to insure as described below:
(a) merchandise or materials of trade manufactured or non-manufactured or in the course of
manufacture, including value of work done;
(b) material used in making or packing;
(c) consignment stock
(d) goods held in trust or on commission.
Designation
For the purpose of determining where necessary the column heading under which any property is
insured the Company agrees to accept the designation under which such property has been entered
in the Insured's books.
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BASIS OF SETTLEMENT
(a) On building, machinery, plant and all other property and contents (other than those specified
below): the cost of reinstatement, replacement or repair in accordance with the provisions of
the Reinstatement and Replacement and Public Authority Memoranda as set out herein;
Provided that if the Insured elects to claim the Indemnity Value of any damaged property, the
Company will pay to the Insured the value of such property at the time of the happening of the
damage or at its option reinstate, replace or repair such property or any part thereof. In any
event the Company will pay the costs incurred by the Insured in accordance with the
provisions of Public Authority Memorandum.
(b) On raw materials, supplies and other merchandise not manufactured by the Insured: the
replacement cost at the time and the place of replacement or, if such property is not replaced,
the value thereof at the time and place of the damage.
(c) On material in process of manufacture: the replacement value of the raw materials and the
value of labour and other overhead charges expended thereon at the time and the place of the
damage.
(d) On finished goods: the replacement value of the raw materials and the value of labour and
other overhead charges expended thereon before any allowance for profit or the cost of restocking such goods, whichever is the lesser.
(e) On computer systems records, documents, manuscripts, securities, deeds, specifications,
plans, drawings, designs, business books and other records of every description: the cost of
reinstating, replacing, reproducing or restoring same, including information contained therein
or thereon but excluding the value to the Insured of the said information; or if such is not
required, the replacement cost of materials as blank stationery at the time and place of the
damage.
(f) On patterns, models, moulds, dies or lasts: the cost of repair or replacement (if actually
replaced) otherwise the Indemnity Value to the Insured of such property.
(g) On glass: the cost of repairing or replacing the broken glass including:
temporary shuttering and/or hiring of security service
pending replacement of broken glass
signwriting or ornamentation on glass
replacement burglary alarm tapes on glass
removing and re-fixing of window and show case frames and fittings
heat reflecting material or process on glass
(h) On directors' and employees' clothing and tools of trade: the replacement cost at the time of
replacement subject to due allowance for wear and tear, depreciation and betterment.
(i) On empty premises awaiting demolition: the salvage value of the building materials and/or
landlord's fixtures and fittings.
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MEMORANDA
Except to the extent that this Policy is hereby modified under the following Memorandum, the Terms,
Conditions and Limitations of this Policy shall apply.
1. Reinstatement and Replacement
(Applicable to buildings, machinery, plant and all other property and contents; other than those
specified in items (b) to (i) under Basis of Settlement).
The basis upon which the amount payable is to be calculated shall be the cost of
reinstatement of the damaged property insured at the time of its reinstatement, subject to the
following Provisions and subject also to the Terms, Conditions and Limit(s) or Sub-Limit(s) of
Liability of this Policy.
For the purpose of the insurance under this Memorandum “Reinstatement” shall mean:
(a) Where property is lost or destroyed: in the case of a building, the rebuilding thereof or
in the case of property other than a building, the replacement thereof by similar
property, in either case in a condition equal to, but not better or more extensive than
its condition when new.
(b) 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.
Provisions
1. The work of rebuilding, replacing, repairing or restoring as the case may be (which
may be carried out upon any other site(s) and in any manner suitable to the
requirements of the Insured, but subject to the liability of the Company not being
thereby increased), must be commenced and carried out with reasonable despatch,
failing which the Company shall not be liable to make any payment greater than the
indemnity value of the damaged property at the time of the happening of the damage.
2. When any property insured to which this Memorandum applies is damaged in part
only, the liability of the Company shall not exceed the sum representing the cost
which the Company could have been called upon to pay for reinstatement if such
property has been wholly destroyed.
3. The property insured under this Memorandum is separately subject to the following
Under-Insurance clause:
If at the time of replacement or reinstatement the sum insured does not represent the
cost which would have been incurred in reinstatement if the whole of such property
had been destroyed, then the Insured shall be considered as being his own insurer for
the difference and shall bear a ratable proportion of the loss accordingly.
Each item of this Policy (if more than one) shall be separately subject to this condition.
4. No payment beyond the amount which would have been payable under this Policy if
this memorandum had not been incorporated herein shall be made until a sum equal
to the cost of reinstatement shall have been actually incurred; provided that where the
Insured reinstates or replaces any lost or destroyed property at a cost which is less
than the cost of reinstatement (as defined) but greater than the value of such property
at the time of the happening of its loss or destruction, then the cost so incurred shall
be deemed to be the cost of reinstatement.
5. All other insurances covering the property effected by or on behalf of the Insured shall
be on a similar reinstatement basis.
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2.
Public Authority
(Applicable to buildings, machinery, plant and all other property and contents; other than those
specified in items (b) and (i) under Basis of Settlement).
This Policy is extended to include such additional cost of reinstatement (including demolition
of dismantling) of damaged property thereby insured reasonably and necessarily incurred
solely to comply with the requirements of any Act of Parliament or Regulation made
thereunder or any By-Law or Regulation of any Municipal or other Statutory Authority; subject
to the following Provisions and subject also to the Terms, Conditions and Limit(s) or SubLimits of Liability of this Policy.
Provisions
1. The amount recoverable under this Memorandum shall not include:
(a) the cost incurred in complying with any of the aforesaid Regulations or ByeLaws:
(i) in respect of destruction or damage occurring prior to the granting of
this extension;
(ii) in respect of destruction or damage not insured by the Policy;
(iii) under which notice has been served upon the Insured prior to the
happening of the destruction or damage;
(iv) in respect of undamaged property or undamaged portions of property;
(b) the additional cost that would have been required to make good the property
damaged or destroyed to a condition equal to its condition when new had the
necessity to comply with any of the aforesaid Regulations or Bye-Laws not
arisen.
(c) the amount of any rate, tax, duty, development or other charge or assessment
arising out of capital appreciation which may be payable in respect of the
property or by the owner thereof by reason of compliance with any of the
aforesaid Regulations or Bye-laws.
2. The work of rebuilding, replacing, repairing or restoring as the case may be (which
may be carried out upon any other site(s) and in any manner suitable to the
requirements of the Insured, but subject to the liability of the Company not being
thereby increased), must be commenced and carried out with reasonable despatch,
failing which the Company shall not be liable to make any payment greater than the
indemnity value of the damaged property at the time of the happening of the damage.
3. If the liability of the Company under (any item of) the Policy apart from this
Memorandum shall be reduced by the application of any of the terms and conditions of
the Policy then the liability of the Company under this Memorandum (in respect of any
such item) shall be reduced in like proportion.
4. The total amount recoverable under any item of the Policy shall not exceed the sum
insured thereby.
5. All other insurances covering the property effected by or on behalf of the Insured shall
be on a similar reinstatement basis.
3. Indemnity Value
Indemnity value shall mean the reasonable and necessary cost of rebuilding, replacing or
repairing property with new materials less an allowance for depreciation and wear and tear
based on the age and condition of the property at the time of the loss or damage.
UW-FPA-W-001-04-E Page 14 of 19
4. Pairs and Sets
Where any insured item consists of articles in a pair or set, the Company’s liability shall not
exceed the value of any particular part or parts which may be lost or damaged, without
reference to any special value which such article or articles may have as part of such pair or
set, nor more than a proportionate part of the sum insured hereby on such pair or set.
5. Waiver of Subrogation
In the event of a claim arising under this Policy it is hereby declared and agreed that the
Company waives all rights, remedies or relief to which they might become entitled by
subrogation against:
(a) any Insured (including its directors, officers and employees) where more than one
party comprises “the Insured”;
(b) any corporation or entity (including its directors, officers and employees) being
parents, part of or subsidiary or affiliated to the Insured as listed from time to time in
the Insured's latest balance sheet/annual report;
(c) any co-owner of the Property Insured;
Provided always that the conduct of the parties that gave rise to the loss was not serious or
willful misconduct.
UW-FPA-W-001-04-E Page 15 of 19
GENERAL CONDITIONS
1. Identification
This Policy incorporates the Schedule, Specification and Endorsements which shall be read
together as one contract. Words and expressions to which specific meanings have been
attached in any part of this Policy or of the Schedule, Specification and Endorsements shall
bear such specific meanings wherever they shall appear.
2. Misdescription
If there be any material misdescription by the Insured or any one acting on his behalf of any of
the property hereby insured, or of any building or place in which such property is contained, or
of the business or premises to which this insurance refers or any misrepresentation as to any
fact material to be known for estimating the risk or any omission to state such fact, the
Company shall not be liable under this Policy for the property affected by any such
misdescription, misrepresentation or omission.
3. Cancellation
The Company may cancel this Policy by giving 30 days’ notice by registered letter to the
Insured at his last known address and in such event the Company will return to the Insured
the premium paid less the pro rata portion thereof for the period during which the Policy had
been in force.
This Policy may be cancelled at any time by the Insured by giving written notice to the
Company and in such event the Insured shall be entitled to a return of premium less the
premium computed at the Company’s Short Period Rates for the period during which the
Policy had been in force.
Short Period Rates
Period Premium
Up to 3 months 30% of Annual Premium
Between 3 to 6 months 60% of Annual Premium
Between 6 to 9 months 90% of Annual Premium
Over 9 months 100% of Annual Premium
4. Forfeiture
(a) All benefit under the Policy shall be forfeited if any claim made is in any respect
fraudulent or if any fraudulent means or devices are used by the Insured or any one
acting on his behalf to obtain benefit under this Policy or if any Damage is caused by
the willful act or with the connivance of the Insured.
(b) Benefit under the Policy shall also be forfeited in respect of any claim:
(i) made and rejected if an action or suit be not commenced within twelve months
after such rejection;
or
(ii) where arbitration takes place in pursuance of Condition 7 of this Policy and an
action or suit be not commenced within twelve months after the arbitrators
shall have made their award.
5. Subrogation
Any claimant under this Policy shall, at the expense of the Company do, and concur in doing
and permit to be done all such acts and things as may be necessary or reasonably required by
the Company for the purpose of enforcing any rights and remedies, or of obtaining relief or
indemnity from other parties to which the Company shall be or would become entitled or
subrogated, upon its paying for or making good any loss or damage under this Policy, whether
UW-FPA-W-001-04-E Page 16 of 19
such acts and things shall be or become necessary or required before or after his
indemnification by the Company.
6. Contribution
If at the time of any Damage there is any other insurance effected by or on behalf of the
Insured covering any of the property lost, destroyed or damaged, the liability of the Company
hereunder shall be limited to its rateable proportion of such Damage.
7. Arbitration
If any difference arises as to the amount to be paid under this Policy (liability otherwise
admitted) such difference shall be referred to an arbitrator to be appointed by the parties in
accordance with statutory provisions. Where any difference is by this condition to be referred
to arbitration the making of an award shall be a condition precedent to any right of action
against the Company.
8. Alterations and Removals
Under any of the following circumstances the insurance ceases to attach as regards the
property affected unless the Insured, before the occurrence of any Damage obtains the
sanction of the Company signified by endorsement upon the Policy, by or on behalf of the
Company:
(a) if the trade or manufacture carried on be altered, or if the nature of the occupation of
or other circumstances affecting the building or containing the insured property be
changed in such a way as to increase the risk of Damage;
(b) if the building insured or containing the Insured Property becomes unoccupied and
so remains for a period of more than 30 days;
(c) if the Property Insured be removed to any building or place other than that in which it
is stated herein to be insured;
(d) if the interest in the Property Insured passes from the Insured otherwise than by will
or operation of law.
9. Actions by the Insured
If any event giving rise to or likely to give rise to a claim under this Policy comes to his
knowledge the Insured shall:
(a) immediately:
(i) take steps to minimise the Damage and recover any missing property;
(ii) give notice in writing to the Company, and
(iii) give notice to the police if the event be theft or suspected theft or willful or
malicious damage;
(b) within 30 days or such further time as the Company may in writing allow deliver to the
Company:
(i) a claim in writing for the Damage containing as particular an account as may
be reasonably practical of all the several articles or items of property lost
destroyed or damaged and the amount of the Damage thereto respectively,
having regard to their value at the time of the Damage;
(ii) particulars of all other insurances if any.
The Insured shall at all times at his own expense produce, procure and give to the Company
all such further particulars, plans, specifications, books, vouchers, invoices, duplicates or
UW-FPA-W-001-04-E Page 17 of 19
copies thereof, documents, proofs and information with respect to the claim and the origin and
cause of the Damage and the circumstances under which the Damage occurred, and any
matter touching the liability or the amount of liability of the Company as may be reasonably
required by or on behalf of the Company together with a declaration on oath or in other legal
form of the truth of the claim and any matters connected therewith.
10. Insurers' Rights
On the happening of Damage to any of the Property Insured by this Policy the Company may:
(a) enter and take and keep possession of the building or premises where the Damage
has happened;
(b) take possession of or require to be delivered to it any property of the Insured in the
buildings or on the premises at the time of the Damage;
(c) keep possession of any such property and examine, sort, arrange, remove or
otherwise deal with the same;
(d) sell any such property or dispose of the same for account of whom it may concern.
The powers conferred by this Condition shall be exercisable by the Company at any time until
notice in writing is given by the Insured that he makes no claim under this Policy or, if any
claim is made, until such claim is finally determined or withdrawn, and the Company shall not
by any act done in the exercise or purported exercise of its powers hereunder, incur any
liability to the Insured or diminish its rights to rely upon any of the Conditions of this Policy in
answer to any claim.
If the Insured or any person acting on his behalf shall not comply with the requirements of the
Company, or shall hinder or obstruct the Company in the exercise of its powers hereunder, all
benefit under this Policy shall be forfeited.
The Insured shall not in any case be entitled to abandon any property to the Company
whether taken possession of by the Company or not.
11. Repair and Replacement
The Company may at its option, repair or replace the property lost destroyed or damaged, or
any part thereof, instead of paying the amount of the Damage, or may join with any other
company or Insurers in so doing, but the Company shall not be bound to repair exactly or
completely, but only as circumstances permit and in reasonably sufficient manner, and in no
case shall the Company be bound to expend more in repair than it would have cost to repair
such property as it was at the time of the occurrence of such Damage, nor more than the sum
insured thereon.
If the Company so elects to repair or replace any property the Insured shall, at his own
expense, furnish the Company with such plans, specifications, measurements, quantities and
such other particulars as the Company may require, and no acts done, or caused to be done
by the Company with a view to repair or replacement shall be deemed an election by the
Company to repair or replace.
If in any case the Company shall be unable to repair or replace the Property Insured because
of any municipal or other regulations in force affecting the alignment of streets, or the
construction of buildings, or otherwise, the Company, shall in every such case, only be liable
to pay such sums as would be required to repair or replace such property if the same could
lawfully be repaired to its former condition.
12. Deductibles
UW-FPA-W-001-04-E Page 18 of 19
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 Under-Insurance.
Warranted that during the currency of the Policy the Insured shall not effect insurance in
respect of the amounts of the deductibles stated in the Schedule.
13. Under-Insurance
If the property hereby insured shall, at the commencement of any Damage, be collectively of
greater value than the sum insured thereon, then the Insured shall be considered as being his
own insurer for the difference, and shall bear a rateable proportion of the loss accordingly.
Every item, if more than one, of the Policy shall be separately subject to this Condition.
14. Reasonable Precautions
The Insured at his own expenses shall maintain the property in a proper state of repair and
take all reasonable precautions to prevent Damage thereto, comply with statutory
requirements, manufacturers’ recommendations and all reasonable recommendations of the
Company
15. Law and Practice
This insurance is subject to Vietnamese law and practice.
UW-FPA-W-001-04-E Page 19 of 19
PREMIUM WARRANTY
1. Notwithstanding anything herein contained to the contrary, and subject only and without
prejudice to clause 2 hereinafter set out, it is hereby declared and agreed that it is a condition
precedent to liability under this Policy, Renewal Certificate, Endorsement or Cover Note that
any premium due must be paid and actually received in full by the Company, the registered
broker or registered agent through whom this Policy was effected:
(a) where the period of insurance is more than 30 (thirty) days, within 30 (thirty) days from
the:
(i) INCEPTION date of the cover under the Policy, Renewal Certificate or Cover
Note; or
(ii) EFFECTIVE date of the cover stated on each Endorsement, if any, issued
under the Policy, Renewal Certificate or Cover Note; or
(iii) where the ISSUANCE date of the Policy or the Endorsement, if any, issued
under the Policy, Renewal Certificate or Cover Note is more than 30 (thirty)
days from the inception date or effective date, the premium must be paid
upon presentation of the Debit Note(s); or
(b) where the Company has allowed payment of that premium by installments
(i) within 15 days from INCEPTION date of the cover under the Policy, Renewal
Certificate or Cover Note for the first installment and thereafter from the
agreed dates on which the subsequent installments become payable; or
(ii) Any Endorsement, if any, issued under the Policy, Renewal Certificate or
Cover Note, the premium must be paid on the due date of latest installment
and before the expiry date of the Policy
(iii) where the period of insurance is less than 30 (thirty) days, the premium must
be paid upon presentation of the Debit Note(s).
2. In the event any of the abovementioned premium is not paid in full to the Company, registered
broker or registered agent as described above in the manner and within the time stipulated
above (the "premium warranty period"), the cover under this Policy, Renewal Certificate,
Endorsement or Cover Note shall be deemed to have terminated automatically from the expiry
of the premium warranty period and the Company shall be discharged from all liability
therefrom but without prejudice to any liability incurred before that date and the Company shall
be entitled to a pro-rata time on risk premium subject to a minimum of US$100.
3. In case of claim, all the outstanding premiums will be paid immediately to the Company.
IMPORTANT NOTICE
We would remind that you must disclose to us, fully and faithfully, the facts you know or ought
to know, otherwise you may not receive any benefit from your Policy.
