Asia Insurance (Cambodia)

CONTRATORS’ PLANT ALL RISKS INSURANCE POLICY

Whereas the Insured named in the Schedule hereto has made to the Asia Insurance (Cambodia) Plc.

(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 witnesses that in respect of events occurring during the period of Insurance and in consideration of the Insured having paid to the Insurers the premium mentioned in the Schedule the Insurers will indemnify the Insured in the manner and to the extent hereinafter set forth.

Provided always that the due observance and fulfilment of the terms conditions and _expression 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 proposal (s) shall be conditions precedent to the right of the Insured to recover hereunder.

The Schedule shall be deemed to be incorporated in and form part of this Policy and the exception “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 attracted in any part of this Policy of the Schedule shall bear such meaning whether it may appear.

1. Insured Machinery and Plant

1.1.

Insured is

1.1.1.	All machinery and plant specified in the Schedule;
1.1.2.	This insurance applies whether the insured property is at work or at rest or is undergoing cleaning or overhauling or is in transit by road or rail or whilst on roll off- roll off ferries on inland watercrossing.

1.2.

Not insured are

1.2.1.	Exchangeable tools and parts of all kinds, such as drills, crushers, knives, saw blades, screens, sieves, chains, connecting cables, flexible pipes, jointings and packing material;
1.2.2.	Elevator or conveyor belts, ropes, belts, tyres, batteries;
1.2.3.	Fuels, cooling media, lubricants, oil fillings;
1.2.4.	Vehicles licensed for general road use, except when being used exclusively on one defined location outside public road; waterborne vessels and craft; aircraft;
1.2.5.	Excess amounts to be borne by the Insured.

2. Insured Perils

2.1.

The Insurer indemnify sudden and sudden and unforeseen physical loss or damage, necessitating its repair or replacement and resulting from

2.1.1.	Fortuitous working accidents;
2.1.2.	Fire, Lightning and explosion; burglary and theft;
2.1.3.	Faults in erection;
2.1.4.	Fault in operation, lack of skill, carelessness, malevolence of employees;
2.1.5.	Storm, tempest, hurricane, subsidence of ground or foundation, flood, inundation, earthquake and volcanic eruption, failing of rock, landslide;
2.1.6.	Collision, overturning, derailment;
2.1.7.	Any other accident not hereinafter excluded.

3. Excluded Perils

3.1.

The Insurers shall not be liable for loss or damage due to

3.1.1.

Mechanical or electrical breakdown or derangement, freezing of coolant or other liquids, defective lubrication or lack of oil or coolant, however, if as a consequence of such breakdown or derangement a further accident occurs such consequential damage will be indemnifiable;

3.1.2.

Corrosion, erosion, wasting or wearing of any part of machinery caused by ordinary use or working and any other continuous chemical or atmospheric influence, undue deposits of rust, mud, boiler, scale or other deposits;

3.1.3.

Total or partial immersion in tidal waters;

3.1.4.

Damage arising out of wilful act, wilful negligence by the Insured or its management;

3.1.5.

Any faults or defects existing at the time of commencement of the present insurance to the knowledge of the Insured or its management;

3.1.6.

Loss or damage for which the manufacturer or supplier of the property is responsible either by law or under contractual obligations;

3.1.7.

Consequential loss, damage or liability of any nature;

3.1.8.

War, invasion, acts of foreign enemy, hostilities or warlike operations (whether war be declared or not), civil war, mutiny, insurrection, rebellion, revolution, conspiracy, military or usurped power, martial law, riot and civil commotion, strike, lock-out, confiscation, commandeering, requisition or destruction, of or damage to property by order of any government de jure or defacto or of any public, municipal or local authority;

3.1.9.

i)	Loss, destruction or damage to any property whatsoever or any loss or expense whatsoever resulting or arising therefrom or any consequential loss;
ii)	Any legal liability of whatsoever nature directly or indirectly caused by or contributed to by or arising from ionizing radiation or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel. For the purpose of this exclusion only combustion shall include any self-sustaining process of nuclear fission;

3.1.10.

Any loss, destruction, damage or legal liability directly or indirectly caused by or contributed to by or arising from nuclear weapons material.

4. Sum insured

4.1.

It is a requirement of this insurance that the sum insured shall be equal to the cost of replacement of the insured machinery and plant by new machinery of the same specifications and same capacity including all freight costs to site erection costs and customs duties and other dues;

4.2.

If on the date of the accident the sum insured of the damaged item is less than its cost of replacement (as defined under para. 4.1) the insurers will pay the claim only in such proportion as the sum insured for the damaged item as shown in the Schedule bears to its replacement cost;

4.3.

Notwithstanding the above stipulation the sum insured for camps, hutments, workshops, scaffolding, moulding and shutting shall be equal to the actual value at the time of concluding the Policy and under insurance shall be determined by comparison of the sum insured with the actual value at inception of the Policy.

5. Basis of Indemnity

5.1.

In cases where damage to an insured item can be repaired the Insurers will pay expenses necessarily incurred to restore the damaged item to the operating condition in which it was before the occurrence of the damage. If the value of one item or a part thereof is increased by the repair the liability of the Insurer shall be reduced by the amount of such increase.

The Insurers will also pay dismantling and re-erection charges incurred for the purpose of effecting the repairs as well as ordinary freight charges, customs duties and dues, if any. If the repairs are executed at a workshop owned by the Insured, the Insured will pay the cost of materials and wages incurred for the purpose of the repairs plus a reasonable percentage to cover overhead charges. The value of any salvaged material shall be deducted;

5.2.

In cases where an Insured item is destroyed or if the cost of repairs equals or exceeds the actual value of the machinery insured immediately before the occurrence of the damage, the settlement shall be made as follows:

The Insurer will pay the actual value of the item immediately before the occurrence of the loss, including costs for ordinary freight, erection and customs duties, if any, such actual value to be calculated by deducted by deducting proper depreciation from the replacement value of the item. The Insurers will also pay any normal charges for the dismounting of the item destroyed, but the value of any material salvage will be deducted;

5.3.

The cost of any alteration, additions, improvements or overhauls carried out at the time of repair shall not be recoverable;

5.4.

The cost of any provisional repairs will be borne by the Insurers if such repairs constitute part of the final repairs and do not increase the total repair costs;

5.5.

The Insurers may at their own option repair, reinstate or replace any property or lost damaged or pay in cash the amount payable hereunder;

5.6.

The liability of the Insurers for any item shall not exceed in the aggregate in any annual Period of Insurance the sum set against such item in the Schedule;

5.7.

Unless otherwise specially provided for in the Policy any extra charges incurred in connection with a claim covered by this Policy, for over time, night work, work on public holidays, express and air freight shall not be reimbursement.

6. General Conditions

6.1.

The Insured shall take all reasonable steps to maintain the insured property in efficient working order and to ensure at no item is habitually or intentionally overloaded. The Insured shall fully observe the manufacturers’ instructions for operating, inspection and overhaul, as well as government, statutory, municipal and all other binding regulations in force concerning the operation and maintenance of the insured plant and machinery;

6.2.

The Insurers’ officials shall at all reasonable times have the right to inspect and examine any property insured hereunder and the Insured shall provide the officials of the Insurers with all details and information necessary for the assessment of the risk. The Insurers shall provide the Insured with a copy of the inspecting official’s report, which shall however be treated as strictly confidential, both by the Insured and the Insurers;

6.3.

In the event of any

6.3.1.	material change in the original risk;
6.3.2.	alteration, modification or addition to an insured itemalteration, modification or addition to an insured item;
6.3.3.	departure from prescribed operating conditions, whereby the risk of loss or damage increases;
6.3.4.	changes in the Insured’ s interest (such as discontinuation or liquidation of the business or being placed in receivership). taking place the Policy shall be avoided unless its continuance be agreed by endorsement signed by the Insurers;

6.4.

In the event of any occurrence which might give rise to a claim under the Policy. The Insured shall:

6.4.1.	immediately notify the Insurers by telephone or telegram as well as in writing and supply all such particulars and proofs of claim as may be required by the Insurers;
6.4.2.	take all steps within his power to minimise the extent of the loss or damage;
6.4.3.	preserve the damaged property and make it available for inspection by a representative or surveyor of the Insurers. The Insurers shall not in any case be liable for loss, damage or liability of which no notice has been received by the Insurers within 14 days of its occurrence. The liability of the Insurers under this Policy in respect of any item of property sustaining damage for which indemnity is provided shall cease if the said item continues in operation without being repaired to the satisfaction of the Insurers. Upon notification of a claim being given to the Insurers. The may carry out repairs or replacement of any minor damage. But in all other cases a representative of the Insurers shall have the opportunity of inspecting the damage before any repairs or alterations are effected. Nothing contained herein shall prevent the Insured from taking such steps as are absolutely necessary for the security and continuation of the operations. The Insured shall not be entitled to abandon any property to the Insurers whether taken possession of by the Insurers or not;

6.5.

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 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 Insurers;

6.6.

All differences arising out of this Policy 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 a single Arbitrator to the decision of two Arbitrators, one to be appointed in writing by each of the parties, with 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 within the Arbitrators and preside at their meetings;

6.7.

If a claim is in any respect fraudulent or if any false declaration is made or used in support thereof or if any fraudulent means or devices are used by the Insured or anyone acting on his behalf to obtain any benefit under the Policy or if a claim is made and rejected and no action, suit, or reference to arbitration 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 of Umpire have made their award all benefit under this Policy shall be forfeited;

6.8.

This insurance 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 the Policy has been in force. The insurance may equally be terminated at the option of the Insurers by ten days notice to that effect being given to the Insured in which case the Insurers shall be liable to rapay a rateable proportion premium for the unexpired term from the date of cancellation less any reasonable inspection charges the Insurers may have incurred;

6.9.

The insurance is not to be called upon in contribution and is only to pay any loss hereon if and so far as not recoverable under any other insurance.

	IMPORTANT NOTICE

	The Policy Wording displayed above is meant for reference only, and should under no circumstances be used without the express written consent of Asia Insurance (Cambodia) Plc.

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