Machinery Insurance General Conditions

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 exchangeable tools, e.g. dies, moulds, engraved cylinders, parts which by their use and/or nature suffer a high rate of wear or depreciation, e.g. refractory linings, crushing hammers ,objects made of glass, belts, ropes, wires, rubber tyres, operating media, e.g. 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 of other aerial devices or articles dropped therefrom, theft, burglary or attempts threat; 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 wilful act or any gross negligence of the Insured of his representatives.
7. Any consequence of war, invasion ,act of foreign enemy, hostilities whether war be declared or not) civil, war, rebellion , Insurrection, mutiny, riot, strike, lockout, civil commotion, military or usurped power, a group of malicious persons acting on behalf or in connection with any political organization, conspiracy, confiscation, commandeering, requisition or destruction or damage to property by order of any government de jure or de facto or by any public authority, or from sabotage & terrorism.
8. any consequence nuclear reaction, nuclear radiation or radioactive contamination;
9. loss or damage as a direct consequence of the continual influence of operation (e.g. wear and tear, cavitations, 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 provisions of Exclusion 7) above, any loss, destruction or damage is not covered by this Policy; the burden of proving' that such loss or damage is covered shall be upon the Insured.

1. 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 repl
2. 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.

1. a. In cases where damage to an Insured Item can be repaired the Insurers shall pay expenses necessarily incurred to restore the damage machine to its former state of serviceability plus the cost of dismantling and re.erection Incurred for the purpose of 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 herein above 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.
2. 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.

1. The due observance and fulfillment of the terms of this Policy, in so faras 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 manufacturers' recommendations.
4. 1. 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.
   2. The Insured shall immediately notify the, Insurers by telefax .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 to ensure safe operation of the insured items, and the scope of cover and/or premium shall if necessary, be adjusted accordingly. No material alternation shall be admitted by the Insured whereby the risk increased, unless the continuance of 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:
   1. Immediately notify the Insurers' by telephone or telefax as well as in writing, giving an indication as to the nature and extent of the loss or damage.
   2. . Take all reasonable steps ,within his power to minimize the extent of the loss or damage.
   3. Preserve the parts affected and make them available for inspection by a representative of surveyor of the Insurers;
   4. 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 wich have sustain 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 of after the Insured's indemnification by the Insurers.
7. Arbitration Clause:
   It any difference arises out of this Policy, the company shall immediately notify the Insured in writing of his right to refer the difference to arbitration. Such difference shall be referred to the decision of an Arbitrator to be appointed in writing by the parties in difference or if they can not agree upon 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 to do so 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 and the making of an Award shall be a condition precedent to any right of action against the Company. If the Company shall disclaim liability for any claim hereunder and such claim shall not within twenty four calendar months from the date of such disclaimer have been referred to arbitration under t hereunder.
8. 1. 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.
   2. 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 or 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.
9. Prescription period:
   All actions arising out of this Policy of insurance are prescribed after 3 years dating from the event giving rise thereto. But this period will run:
   1. In the event of non disclosure, omission, false or incorrect statement concerning the risk only from the day on which the Company had knowledge thereof.
   2. In the event of a claim, only from the day the claimants had knowledge thereof provided they establish that they had no prior knowledge of it.
   When the action of the Insured against the company had been occasioned by the claim of a Third Party the prescription period runs only from the day when that Third Party commence a legal action against the Insured or was indemnified by the Insured with Insurer's approval.
10. The Insurers shall be entitled to withhold indemnification:
    1. If there are doubts regarding the Insured's right to receive the indemnity, pending receipt by the Insurers of the necessary proof;
    2. If in connection with the claim an examination by the, police or inquiry under criminal law has been institute against the Insured, pending completion of such examination or inquiry.
11. 1. 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 to make any payment hereunder.
    2. 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.
12. 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.
13. 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 days notice to that effect being given to the Insured, in witch case the Insurers shall 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.
14. The Insurers shall not be liable to pay interest other than interest for default.