SPECIFICATION E.C.B MARINE CONSEQUENTIAL LOSS INSURANCE (DELAY IN START-UP)

Transcription

1 SPECIFICATION (DELAY IN START-UP) RISKS COVERED 1. This insurance will indemnify the Insured in respect of their Gross Profit as defined herein ascertained in the manner hereinafter provided, during the indemnity period due to the production during such period falling short of the Standard production as a result of loss of or damage to or delay in delivery of the Insured property, described in the Schedule caused by 1.1 a risk which would be identifiable under Section 1-Cargo of contract or which would be identifiable under Section 1 but for the Applicable of the Excess (or deductible), or any other provision contained therein. 1.2 Loss of, mechanical breakdown of, or damage to the hull, machinery and/or equipment of the vessel or aircraft on which any of the Insured Property is being carried or is intended to be carried which would be covered either under an insurance effected subject to the new Marine Policy Form with the Institute Voyage Clause Hulls CL and/or Institute War and Strikes Clauses Hulls Voyage CL under an Aircraft All Risks Policy including War, Hi-jacking and Allied Perils 1.3 loss of, mechanical breakdown of, or damage to any other conveyance on which any of the Insured Property is being carried or is intended to be carried from any fortuitous cause 1.4 the vessel, aircraft, or other conveyance on which any of the Insured Property is carried or is intended to be carried being involved in a General Average Salvage or Life-saving operation 1.5 the prevention or hindrance of discharge at the contract site, Port or Pier area resulting form the sinking or foulberthing of any vessel or craft, engaged in the delivery of equipment as insured hereunder and that such event(s) occurs during the currency of this policy. All hereafter referred to as damage for the purpose of this insurance DURATION The protection afforded by Paragraph 1.1. above shall operate from the time the property

2 leaves the premises of the manufacturers in the country of origin or place of storage continue during the ordinary course of transit including transshipment and during storage, if any, and until the property is delivered to site or final destination including loading/unloading risks as specified in Section 1 of this Policy. 2.2 The protection afforded by Paragraphs 1.2,1.3 and 1.4 above shall operate in respect of vessels or craft from the time that the vessel or craft comes alongside the berth or mooring point at which the property is to be loaded thereon (including any casualties or incidents arising during such berthing or mooring) and in respect of conveyances (including aircraft) from the time that the conveyance arrives at the place where the property is to be loaded thereon. DEDUCTIBLE 3. From each and every claim and in the aggregate under the terms of the insurance shall be deducted the sum stated in the Schedule. 4. AUTOMATIC INCREASE If during the Period of Insurance the Limit of Indemnity under this Section shall be in excess of the original Limit of Indemnity then this shall be deemed to be increased by the amount of such excess but not exceeding in all 10% of the Limit of indemnity stated in the Schedule subject to pro-rata additional premium from time of increase. MEASURE OF INSURANCE 5. The sum payable as an indemnity under this insurance shall be:- 5.1 BASIS OF INDEMNITY The respect of Reduction in Turnover, the sum produced by applying the Rate of Gross Profit to the amount by which the Turnover during the Indemnity Period shall, in consequence of the Incident, fall short of the Standard Turnover, provided that if the sum insured by this item be less than the sum provided by applying the Rate of Gross Profit to the Comparative Turnover the amount payable shall be proportionally reduced Less any sum saved during the indemnity period in respect of such of the charges and expenses of the Business payable out of Gross profit as may cease or be reduced in consequence of the incident.

3 5.1.3 Less any monies which the Assured receive during the Indemnity Period by way of Liquidated Damage for delay arising out of the loss and/or damage insured hereunder, in excess of XX days of such delay. 5.2 LIMITATION ON INDEMNITY Not withstanding anything mentioned above (Basis of Settlement) it is agreed that this policy shall only pay and be limited Loss of Gross Profit and Increase in Cost of working as defined herein and not exceeding the sum insured stated in the Schedule. EXCLUSIONS 6. In no case shall this insurance cover 6.1 loss of or damage to the property as described in the schedule hereto or any expenses recoverable under the insurance on such property. 6.2 any claim for delay caused by the unreasonable with holding of Guarantees as result of repairs to the property insured not being acceptable to the manufacturer or his representative, providing such repairs have been carried out with materials and in a manner approved by Underwriters Surveyor, or a Surveyor of one of the Classification Societies listed in the Institute Classification Clause CL or by a Surveyor of, or approved by, the London Salvage Association. CLAIMS In the case of a claim under this insurance the Assured shall satisfy the Underwriters as regards the extent of the anticipated revenue and specified standing charges by all reasonable evidence, producing inter alia communications and/or guarantees of the supplier s or manufactures as to the property s production capacity, Further, the Assured shall produce and furnish to the Underwriters such books of account and other business books, vouchers, invoices, balance sheets and other documents, proofs, information, explanation and other evidence as may reasonably be requested by the Underwriter for the purpose of investigating or verifying the claim. 7.2 If the property insured hereunder is damaged or appears to be damaged on arrival, it is a condition precedent to a claim hereon that the Underwriters of this insurance shall be advised immediately; whether they are the Insurers of the property or not, the Underwriters of this insurance may at their own expense less any expenses covered under paragraph 5.1 above upon receipt of such advice, take any action they consider necessary to minimize the loss hereunder. 7.3 If the Scheduled date for commencement of the Insured Business of the Project is delayed or postponed by a cause not covered under this insurance then the new date for commencement of the Insured Business shall be the basis of any claim hereunder.

4 SPECIAL CONDITIONS 8. It is condition of this insurance that: 8.1 the property as described in the schedule hereto is insured against Marine and War, Strike etc. risks on the conditions on which the interest is customarily insured. 8.2 the oversea vessel(s) comply(ies) with the provisions of the Conveyances Clause of Marine Cargo Section 1 of the insurance. Subject to the Institute Classification Clause as per Section 1. DEFINITIONS Indemnity Period The period beginning with the date upon which but for the Damage Turnover would have commenced to be earned and ending not later than the Maximum Indemnity period thereafter during which the results of the Business shall be affected in consequence thereof. 9.2 Turnover The money (less discounts allowed) paid or payable to the Insured for goods sold and delivered and for services rendered in course of the Business at the Premises. 9.3 Gross Profit The amount by which (i) the sum of the amount of the turnover of the closing stock and work in progress shall exceed (ii) the sum of the amount of the opening stock and work in progress and the amount of the Uninsured Working Expenses N.B. The amounts of the opening and closing stocks and work in progress shall be arrived at in accordance with the Insured s normal accountancy methods, due provision being made for depreciation. 9.4 Rate of Gross Profit The Rate of Gross Profit that but for the Damage would have been earned on the Turnover during the indemnity Period

5 9.5 Comparative Turnover The Turnover which but for the Damage would have been earned during the Maximum Indemnity Period immediately following the date on which Turnover would have commenced to be earned 9.6 Standard Turnover The Turnover which but for the Damage would have been earned during the Indemnity Period 9.7 Uninsured Working Expenses 100% of Raw Material Purchase( less discounts received) 100% Outgoing Carriage, Packing and Freight 53% Energy Costs as defined in Company s accounts. N.B. The words and expressions used in this definition (other than wages) shall have the meaning usually attached to them in the books and accounts of the Insured. 9.8 Alternative Trading If during the Indemnity Period goods shall be sold or services shall be rendered elsewhere that at the Premises for the benefit of the Business either by the Insured or by other on their behalf the money paid or payable in respect of such sales or services shall be brought into account in arriving at the Turnover during the Indemnity Period. 9.9 The Insured Business Shall mean in commercial operation of XXXXXX 9.10 Insured Property The Insured Property covered under this policy and described in the schedule. MINIMISSING LOSSES 10. It is the duty of the Assured and their servants and agents in respect of loss recoverable hereunder: 10.1 to take such measures as may be reasonable for the purpose of averting or minimizing such loss, and 10.2 to ensure that all rights against carriers, bailees or other third parties are properly preserved and exercised and the Underwriters will, in addition to any loss recoverable

6 hereunder, reimburse the Assured for any charges properly and reasonably incurred in pursuance of these duties. 11. Measures taken by the Assured or the Underwriters with the object of saving, protecting or recovering the subject-matter insured shall not be considered as a waiver or acceptance of abandonment or otherwise prejudice the rights of either party. AVOIDANCE IN DELAY 12. It is a condition of this insurance that the Assured shall act with reasonable dispatch in all circumstances within their control. INCREASED COST OF WORKING 13. This section of the policy shall indemnify the Insured in respect of the additional, expenditure necessarily and reasonably incurred for the sole purpose of avoiding or diminishing the amount of Interest, Additional Interest, Agents Fees and Other Costs and Specified Standing Charges as defined herein which, without such expenditure, would have been incurred during the Indemnity Period as direct result of the Delay but not exceeding the amount of reduction in Interest, Additional Interest, Agents Fees and Other Costs and Specified Standing Charges thereby avoided. Nothing contained herein shall increase the Sum Insured hereunder. PROFESSIONAL ACCOUNTANTS CLAUSE 14. The Insurers will pay to the Assured the reasonable charges payable by the Assured to their professional accountants for producing such particulars or details or any other proofs, information or evidence as may be required by the Insurers under the terms of conditions of this policy and reporting that such particulars or details are in accordance with the Assured s books of account or other business books or documents. Provided that the sum of the amount payable under this clause and the amount otherwise payable under the policy shall, in no case, exceed the total sum insured by the policy. LAW AND PRACTICE 15. This insurance is subject to English Law and Practice. ELECTRICAL AND MECHAANICAL DERANAGEMENT EXCLUSION Excluding loss of or damage due mechanical, electrical or electronic derangement unless there is evidence of external damage to the Insured item or its packing.

7 FIVE POWERS CLAUSE Whether or not Notice of Cancellation has been given, cover hereunder in respect of the risks of war etc, shall TERMINATE AUTOMATICALLY upon the outbreak of war (whether there be a declaration of war or not) between any of the following countries: United Kingdom, United States of American, France Russian Federation, the People s Republic of China and this insurance excludes loss, damage, liability or expense arising from such outbreak of war. CUTTING CLAUSE In the event of a claim for breakage or damage the cracked or broken portion of each pipe to be cut off, Insurers to pay the proportionate value of part cut off and to receive any salvage of such proportion. AIRFREIGHT REPLACEMENT CLAUSE Cover is extended herein to cover the cost of airfreighting replacement parts following loss of or damage to repair damaged machinery, notwithstanding original sending was not be airfreight.