Contractors’ Plant and Machinery

Insurance Policy No

Whereas the Insured named in the Schedule hereto has made to the

(hereinafter called “the Insurers”) a written proposal by completing a

questionnaire which, together with any other statement 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, conditions and provisions 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 premi-
um for the renewal of this Policy, the items (or any part thereof) entered
in the Schedule, whilst at the location or in the geographical area
mentioned therein, suffer any unforeseen and sudden physical loss or
damage from any cause not specifically excluded 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 their own 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 whether the insured items are at work or at rest,
or being dismantled for the purpose of cleaning or overhauling, or in the
course of the aforesaid operations themselves, or in the course of sub-
sequent re-erection, but in any case only after successful commissioning.

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Exclusions

The Insurers shall not be liable for clusively used on construction sites; struction or damage by order of any
a. the deductible stated in the Schedule f. loss of or damage to waterborne government de jure or de facto or by
to be borne by the Insured in any vessels or craft; any public authority;
one occurrence; if more than one item g. loss or damage due to total or n. loss or damage directly or in-
is lost or damaged in one occurrence, partial immersion in tidal waters; directly caused by, or arising out of,
the Insured shall not, however, be h. loss or damage whilst in transit or aggravated by nuclear reaction,
called upon to bear more than the unless otherwise agreed by endorse- nuclear radiation or radioactive con-
highest single deductible applicable ment; tamination:
to such items; i. loss or damage as a direct con- o. loss or damage due to any faults
b. loss or damage due to electrical or sequence of the continual influence or defects existing at the time of
mechanical breakdown, failure, of operation (eg wear and tear, commencement of this Policy within
breakage or derangement, freezing corrosion, rust, deterioration due to the knowledge of the insured or his
of coolant or other fluid, defective lack of use and normal atmospheric representatives, whether such faults
lubrication or lack of oil or coolant, conditions); or defects were known to the Insurers
but if as a consequence of such k. loss or damage occurring whilst any or not;
breakdown or derangement an acci- insured item is undergoing a test of p. loss or damage directly or in-
dent occurs causing external damage, any kind or is being used in any directly caused by, or arising out of,
such consequential damage shall be manner or for any purpose other than or aggravated by the wilful act or
indemnifiable. that for which it was designed; wilful negligence of the Insured or
c. loss of or damage to replaceable I. loss of or damage to plant and/or his representatives;
parts and attachments such as bits, machinery working underground q. loss or. damage for which the sup-
drills, knives or other cutting edges, unless otherwise agreed by endorse- plier or manufacturer is responsible
saw blades, dies, moulds, patterns, ment; either by law or under contract;
pulverizing and crushing surfaces, m. loss or damage directly or in- r. consequential loss or liability of
screens and sieves, ropes, belts, directly caused by, or arising out of, any kind or description;
chains, elevator and conveyor bands, or aggravated by war, invasion, act s. loss or damage discovered only at
batteries, tyres, connecting wires and of foreign enemy, hostilities (whether the time of taking an inventory or
cables, flexible pipes, jointing and war be declared or not), civil war, during routine servicing.
packing material regularly replaced; rebellion, revolution, insurrection, In any action, suit or other proceeding
d. loss or damage due to explosion mutiny, riot, strike, lock-out, civil where the Insurers allege that by
of any boiler or pressure vessel sub- commotion, military or usurped power, reason of the provisions of exclu-
ject to internal steam or fluid pressure a group of malicious persons or per- sions m - q above any loss, de-
or of any internal combustion engine; sons acting on behalf of or in con- struction or damage is not covered
e. loss of or damage to vehicles de- nection with any political organi- by this Policy, the onus of proving that
signed and licensed for general road zation, conspiracy, confiscation, such loss, destruction or damage is
use unless these vehicles are ex- commandeering, requisition or de- covered shall be upon the Insured.

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Conditions

1. The due observance and fulfilment make them available for inspection by the parties in difference or, if they
of the terms of this Policy in so far as a representative or surveyor of the cannot agree upon a single arbitrator,
they relate to anything to be done or Insurers; to the decision of two arbitrators,
complied with by the Insured and the d. furnish all such information and one to be appointed in writing by
truth of the statements and answers documentary evidence as the Insurers each of the parties within one
in the questionnaire and proposal may require; calendar month after having been
made by the Insured shall be a e. inform the police authorities in the required in writing so to do by either
condition precedent to any liability case of loss or damage due to theft of the parties, or, in case the
of the Insurers. or burglary. arbitrators do not agree, of an umpire
The Insurers shall on no account be to be appointed in writing by the
2. The Schedule shall be deemed to liable for loss or damage of which no arbitrators before the latter enter upon
be incorporated in and form part of notice has been received by the In- the reference. The umpire shall sit with
this Policy and the expression surers within 14 days of its occurrence. the arbitrators and preside at their
“this Policy”, wherever used in this Upon notification being given to the meetings. The making of an award
contract, shall be read as including Insurers under this condition, the shall be a condition precedent to
the Schedule. Any word or expression Insured may carry out repairs of any any right of action against the
to which a specific meaning has been minor damage or replace items which Insurers.
attached in any part of this Policy or have sustained any minor damage;
of the Schedule shall bear such in all other cases a representative 8. a, If the proposal or declaration
meaning wherever it may appear. of the Insurers shall have the of the Insured is untrue in any material
opportunity of inspecting the loss or respect, or if any claim made is
3. The Insured shall at his own damage before any repairs or fraudulent or substantially exagger-
expense take all reasonable alterations are effected. If a represen- ated, or if any false declaration or
precautions and comply with all tative of the Insurers does not carry statement is made in support thereof,
reasonable recommendations of the out the inspection within a period of then this Policy shall be void and
Insurers to prevent loss or damage time which could be considered the Insurers shall not be liable to
and comply with statutory require- adequate under the circumstances, make any payment hereunder.
ments and manufacturers’ recommen- the Insured shall be entitled to proceed b. In the event of the Insurers dis-
dations. with the repairs or replacement. claiming liability in respect of any
Nothing contained herein shall claim and if an action or suit is not
4. a. Representatives of the Insurers prevent the Insured from taking such commenced within three months
shall at any reasonable time have steps as are absolutely necessary for after such disclaimer or (in the case
the right to inspect and examine the the upkeep of operations at the of arbitration taking place in pursu-
risk and the Insured shall provide the respective construction site. ance of Condition 7 of this Policy)
representatives of the Insurers with The liability of the Insurers under this within three months after the
all details and information necessary Policy in respect of any item arbitrators or umpire have made their
for the assessment of the risk. sustaining damage shall cease if said award, all benefit under this Policy
b. The Insured shall immediately item is not repaired properly without in respect of such claim shall be
notify the Insurers by telegram and delay. forfeited.
in writing of any material change in
the risk and cause at his own 6. The Insured shall at the expense of 9. This Policy may be terminated at
expense such additional precautions the Insurers do and concur in doing the request of the Insured at any
to be taken as circumstances may and permit to be done all such acts time, in which case the Insurers will
require, and the scope of cover and things as may be necessary or retain the customary short-period rate
and/or premium shall, if necessary, required by the Insurers in the for the time this Policy has been in
be adjusted accordingly. interest of any right or remedies, or of force. This Policy may equally be
No material alteration shall be obtaining relief or indemnity from terminated at the option of the
made or admitted by the Insured parties (other than those insured Insurers by seven days’ notice to
whereby the risk is increased, under this Policy) to which the that effect being given to the Insured,
unless the continuance of the Insurers are or would become entitled in which case the Insurers will be
insurance is confirmed in writing or which is or would be subrogated liable to repay on demand a rateable
by the Insurers. to them upon their paying for or making proportion of the premium for the
good any loss or damage under this unexpired term from the date of
5. In the event of any occurrence Policy, whether such acts and things cancellation less any reasonable
which might give rise to a claim under are or become necessary or required inspection charges the Insurers may
this Policy, the Insured shall before or after the Insured’s indemnifi- have incurred.
a. immediately notify the Insurers by cation by the Insurers.
telephone or telegram as well as in 10. If at the time any claim arises
writing, giving an indication as to the 7. If any difference arises as to under this Policy there is any other
nature and extent of the loss or damage; the amount to be paid under this insurance covering the same loss or
b. take all reasonable steps within Policy (liability being otherwise damage, the Insurers shall not be
his power to minimize the extent of admitted), such difference shall be liable to pay or contribute more than
the loss or damage: referred to the decision of an their rateable proportion of any claim
c. preserve the parts affected and arbitrator to be appointed in writing by for such loss or damage.

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 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 items by new’items of the same kind and
capacity, which means their cost of replacement including, eg, freight,
customs duties and dues, 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 Loss Settlement In the event of any loss or damage the basis of any settlement under this
Policy shall be as follows:

a. In cases where damage to an insured item can be repaired - the

Insurers shall pay expenses necessarily incurred to restore the damaged
item 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 repairshop, 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 insured item 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, 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 value of any 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 amount payable by the Insurers according to the above-mentioned
provisions shall be reduced by the deductible stated in the Schedule.
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.
Schedule
Policy No Name and address of Insured

Incorporated in this Policy is (are) Questionnaire(s) and

Proposal(s) No(s)

The following endorsements are attached to

and form part of this Policy:

Location or geographical area where

this cover attaches

Annual premium
Period of insurance (inclusive of extra premiums for the
from to above-mentioned endorsements)

Specification of Insured items

T-

Item Qty Description of items Year of Deductible Sum insured

No (type, manufacturer, capacity) manufacture

Total sum insured

In witness whereof the Undersigned being duly authorized by the Insurers and on behalf of the Insurers has (have)
hereunto set his (their) hand(s)

this day of 19
Signature

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