國泰產物 Aviation Hull And Spares All Risks And Liability Insurance ( 及 航空適用 )

Transcription

1 備查文號 : (104) 企字第 號免費申訴電話 : 國泰產物 Aviation Hull And Spares All Risks And Liability Insurance ( 及 航空適用 ) TABLE OF CONTENTS POLICY SCHEDULE 1. NAME OF INSURED 2. ADDRESS OF INSURED 3. PERIOD 4. LIMIT OF THE INSURERS LIABILITY 5. DEDUCTIBLES 6. SCHEDULE OF AIRCRAFT 7. GEOGRAPHICAL LIMITS / USES / PILOTS 8. SCHEDULE OF UNDERLYING INSURANCE 9. PREMIUM 10. ADDRESS FOR NOTICES SECTION ONE: HULL ALL RISKS INSURANCE 1.1. COVER 1.2. MISSING AIRCRAFT 1.3. DISMANTLING COSTS, SALVAGE CHARGES AND EXPENSES 1.4. MECHANICAL BREAKDOWN - EXCLUSION 1.5. INGESTION 1.6. COST OF REPAIRS 1.7. AGREED VALUE - TOTAL LOSS 1.8. NO ABANDONMENT 1.9. LEASED ENGINE / SPARE / COMPONENT AGREEMENT TOTAL LOSS ONLY UNEARNED PREMIUM INSURANCE 1.12 AMOUNT IN ADDITION TO AGREED VALUE AND TOTAL LOSS ONLY AMOUNT SECTION TWO: SPARES ALL RISKS INSURANCE 2.1. COVER 2.2. EXCLUSIONS 2.3. REPAIR COSTS - REPLACEMENT 2.4. SALVAGE CHARGES AND EXPENSES 2.5. PARTS DETACHED FROM/BEING ATTACHED TO AIRCRAFT

2 SECTION THREE: AVIATION LIABILITY INSURANCE 3.1. COVER 3.2. DECLARED VALUES 3.3. EXCLUSIONS 3.4. DEFENCE, SETTLEMENT AND SUPPLEMENTARY PAYMENTS 3.5. ADDITIONAL EXPENSES EXTENSION 3.6. UNITED STATES FOREIGN AIR CARRIER FAMILY SUPPORT AND AVIATION DISASTER FAMILY ASSISTANCE ACTS 3.7. AUTOMATIC PASSENGER PERSONAL ACCIDENT INSURANCE 3.8. BAIL AND/OR GUARANTEE SECTION FOUR: EXCESS LIABILITY 4.1. COVER 4.2. CONDITIONS 4.3. EXCLUSION SECTION FIVE: GENERAL EXCLUSIONS 5.1. LIABILITY ASSUMED UNDER CONTRACT OR AGREEMENT 5.2. NUCLEAR RISKS EXCLUSION CLAUSE AVN 38B 5.3. WAR, HI-JACKING AND OTHER PERILS EXCLUSION CLAUSE (AVIATION) AVN 48B 5.4. NOISE AND POLLUTION AND OTHER PERILS EXCLUSION CLAUSE AVN 46B 5.5. DATE RECOGNITION EXCLUSION CLAUSE AVN2000A 5.6. CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999 EXCLUSION CLAUSE AVN ASBESTOS EXCLUSION CLAUSE 2488AGM00003 SECTION SIX: GENERAL PROVISIONS AND CONDITIONS 6.1. DOCUMENTATION OF PASSENGERS, BAGGAGE AND CARGO 6.2. CERTIFICATE OF AIRWORTHINESS, AIR NAVIGATION REGULATIONS 6.3. CONTRACTUAL AGREEMENTS 6.4. SEVERABILITY OF INTEREST 6.5. LIMITATION OF LIABILITY 6.6. ADDITIONS AND DELETIONS OF AIRCRAFT, AGREED VALUE, PASSENGER SEATING AND FLIGHT STATUS AMENDMENTS 6.7. DUE DILIGENCE 6.8. NOTICE OF EVENT LIKELY TO GIVE RISE TO A CLAIM 6.9. SUBROGATION FRAUDULENT CLAIM ALTERATION OF RISK CANCELLATION OTHER INSURANCE ARBITRATION AND JURISDICTION BREACH OF AIR NAVIGATION REGULATIONS ASSIGNMENT CONFLICTING STATUTES INADVERTENT ERRORS OR OMISSIONS REASONABLE ACTS SETTLEMENT AUTHORITY

3 SECTION SEVEN: DEFINITIONS APPENDIX ONE APPENDIX TWO SHORT RATE CANCELLATION TABLE AIRLINE FINANCE/LEASE CONTRACT ENDORSEMENT AVN 67B AND AIRLINE FINANCE/LEASE CONTRACT ENDORSEMENT AVN 67C APPENDIX THREE AIRCRAFT FINANCE/LEASE CONTRACT CONTINUING LIABILITY ENDORSEMENT AVN 99 ENDORSEMENT ONE ENDORSEMENT TWO ENDORSEMENT THREE D.o.T. 14 CFR PART 205 AVN57A (USA) CANADIAN TRANSPORTATION AGENCY AVN 57C (Canada) SWITZERLAND AIR NAVIGATION ACTS AVN 57A (Switzerland) ENDORSEMENT FOUR CIVIL AVIATION (CARRIERS LIABILITY) ACT AUSTRALIA AVN 57A (Australia) ENDORSEMENT FIVE ENDORSEMENT SIX ENDORSEMENT SEVEN ENDORSEMENT EIGHT ENDORSEMENT NINE ENDORSEMENT TEN ENDORSEMENT ELEVEN ENDORSEMENT TWELVE ENDORSEMENT THIRTEEN ENDORSEMENT FOURTEEN ENDORSEMENT FIFTEEN ENDORSEMENT SIXTEEN ENDORSEMENT SEVENTEEN PERSONAL INJURY EXTENSION AVN60A (Amended) DATE RECOGNITION LIMITED COVERAGE CLAUSES TRANSPORTATION OF PASSENGERS PASSENGER VOLUNTARY SETTLEMENT ENDORSEMENT PASSENGER LIABILITY (MUTUAL REVISION AND SPECIAL CONTRACTS) CARGO / MAIL LIABILITY PROVISIONS PASSENGER ENTERTAINMENT SYSTEMS (INCLUDING VIDEO EQUIPMENT) AND/OR PERSONAL VIDEO SYSTEMS CONTINGENT LIABILITY CONTINGENT HULL BUYER FURNISHED EQUIPMENT COMPULSORY INSURANCE REQUIREMENTS EXTENDED COVERAGE ENDORSEMENT (AVIATION LIABILITIES) AVN 52E WET LEASE AGREEMENTS

4 ENDORSEMENT EIGHTEEN CORPORATE DEFENCE COSTS EXTENSION AVN 108 ENDORSEMENT NINETEEN ENDORSEMENT TWENTY GROUNDING LIABILITY EXTENSION USE OF VEHICLES OUTSIDE OF THE PRECINCTS OF ANY AIRPORT ENDORSEMENT TWENTY-ONE SANCTIONS AND EMBARGO CLAUSE AVN 111

5 POLICY SCHEDULE 1. NAME OF INSURED: OOAIRLINES LIMITED and/or their subsidiary and/or associated companies now existing or as may be hereafter constituted jointly and severally for their respective rights and interests. 2. ADDRESS OF INSURED: OOAirlines Limited 3. PERIOD: From: XXXX To: XXXX both days inclusive local standard time at the above address of the Insured with an option to extend pro rata by up to 6 months to be agreed by Insurers. 4. LIMIT OF THE INSURERS LIABILITY The maximum liability of the Insurers shall not exceed: UNDER SECTION ONE - HULL ALL RISKS The agreed value plus the total loss amount of each aircraft, both as set forth in the schedule of aircraft, less any applicable deductible as set forth in paragraph 5. below UNDER SECTION TWO - SPARES ALL RISKS USD XXXXXXX any one building but limited to USD XXXXX any one sending less any applicable deductible as set forth in paragraph 5. below UNDER SECTION THREE - LIABILITY INSURANCE AND SECTION FOUR EXCESS LIABILITY INSURANCE A combined single limit in respect of Bodily Injury and Property Damage of USD XXXXXX any one Occurrence and in the annual aggregate as respects the Products Hazard but sub limited to; XXXXXXX any one Occurrence in respect of the ownership, operation or use of OO Airlines Embraer aircraft,

6 5. DEDUCTIBLES Section One in respect of the following three named subsidiaries:- OOOOOO A combined single limit in respect of Bodily Injury and Property Damage of USD X00,000,000 any one Occurrence and in the aggregate as respects the Products Hazard. However the following sub-limit shall apply: In respect of OOOOOO: TWD XXXXX any one Occurrence and TWD XXXXXX in the annual aggregate for Property Damage to valuable cargo (including jewellery, consumer electrical goods, tobacco and its products, wines and spirits, works of art) and Property Damage to fragile cargo (including glass, crystal and ceramic products). TWD XXXXX any one Occurrence and TWD XXXXX in the annual aggregate for Property Damage to cash, gold, certificates and securities, bonds, treasury notes, stamps, deeds and lottery tickets. less any applicable deductible as set forth in paragraph 5. below. The limits of liability apply under Section Three separately to each aircraft owned, operated or used by the Insured Notwithstanding the foregoing the maximum liability of the Insurers with respect to Section Four excess liability coverage is USDXXXXX any one Occurrence (and in the aggregate where the underlying coverage is in the aggregate) excess of the Schedule of Underlying Policies. This sub limit shall apply within the Policy limit and not in addition thereto. It is noted and agreed that all aggregates included herein are to apply separately to OOAirlines Limited and OO Airlines Limited. No deductible is applicable to the total loss, constructive total loss or arranged total loss of an aircraft but the applicable deductible stated below shall apply to each and every claim in respect of claims otherwise payable under Section One. AIRCRAFT TYPE Boeing 747/777/Airbus A340/A330 Boeing 737 ERJ-190/5 USD XXXXX USD XXXXX USD XXXXX Nevertheless in the event of an incident arising under Section One hereon involving the application of more than one deductible then if beneficial to the Insured, only one deductible shall apply (being the highest applicable) as an aggregate deductible for all losses arising out of that incident.

7 Section Two The amount of USD 10,000 each and every claim shall be deducted from the amount payable in respect of loss of or damage to Spares other than claims arising from fire, wind, tornado, cyclone, typhoon, flood, hail, theft, lightning, explosion, earthquake or tidal wave which will be paid in full. However, claims in respect of ingestion damage to an aircraft engine sustained during engine running shall be subject to the same deductible as would apply to the engine when installed in its specific aircraft type (as set forth above). No deductible shall apply, however, to an aircraft engine which is a total loss, constructive total loss, or arranged total loss as a result of ingestion. As respects Spares in transit no deductible shall apply to loss or damage arising out of an accident to the carrying aircraft or other conveyance. Section Three The amount of USD 1,250 any one Occurrence shall be deducted from the amount payable in respect of Property Damage to passenger baggage. The amount of USD 10,000 any one Occurrence shall be deducted from the amount payable in respect of Property Damage to cargo. The above deductibles shall not apply (i) when the claim arises out of an accident to the carrying aircraft or other conveyance or (ii) when the claim arises under the Extended Coverage Endorsement (Aviation Liabilities) AVN 52E or (iii) to claims arising from fire, wind, typhoon, tornado, cyclone, flood, hail, theft, lightning, explosion, earthquake or tidal wave. In respect of the three named subsidiaries the following deductibles shall apply: In respect of Taoyuan International Airport Services Co Ltd (OOOOOO) 1. Property Damage (other than to aircraft): USD 5,400 any one Occurrence. 2. Property Damage to aircraft: USD25,000 any one Occurrence. In respect of Taiwan Airport Services Co Ltd (OOOOO) 1. Property Damage (other than to aircraft): USD 10,000 any one Occurrence 2. Property Damage to aircraft: USD25,000 any one Occurrence. In respect of Taiwan Air Cargo Terminal (OOOO) the amount of: 1. Property Damage (other than to aircraft): USD 10,000 any one Occurrence 2. Property Damage to aircraft: USD25,000 any one Occurrence. The above deductibles shall apply (i) when the claim arises out of an accident to the carrying aircraft or other conveyance or (ii) when the claim arises under the Extended Coverage Endorsement (Aviation Liabilities) AVN 52E or (iii) to claims arising from fire, wind, typhoon, tornado, cyclone, flood, hail, theft, lightning, explosion, earthquake or tidal wave.

8 6. SCHEDULE OF AIRCRAFT Type Registration Agreed Value Total Loss Only Amount As agreed by Insurers and held on file by the intermediary set forth in paragraph 10. below. Maximum agreed value: USD XXXXXXX including any Total Loss Only amount specified in the Schedule. Maximum passenger seating capacity: 550 It is agreed that the declared maximum number of passengers may be exceeded from time to time due to the carriage of children including babies subject always to the stipulations of the Certificate of Airworthiness of the aircraft not being breached. 7. GEOGRAPHICAL LIMITS Worldwide but, other than in respect of the Products Hazard, excluding countries subject to United States of America / United Nations sanctions. USES As required by the Insured including crew training and/or familiarisation flights and/or delivery / demonstration / private charter / test / ferry flights. PILOTS As approved by the Insured. 8. SCHEDULE OF UNDERLYING INSURANCE As agreed by Insurers and held on file by the intermediary set forth in paragraph 10. below. 9. PREMIUM As Arranged PREMIUM PAYMENT CLAUSE 1) It is understood and agreed that the premium due at the inception of this Policy shall be payable in the following instalments: XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX XX.00% XX.00% XX.00% XX.00%

9 2) Notwithstanding any cancellation provision contained within the Policy, in the event that an instalment of premium is not paid by its due date Insurers shall have the right to terminate the cover afforded by the Policy to the Insured and any other party(ies) protected thereby, whether by endorsement or otherwise, by the giving of not less than Thirty (30) days notice in writing to the Insured. Notice shall be deemed to commence from the date such notice is given by the Insurers. AVN 6A (Amended) 10. ADDRESS FOR NOTICES All notices required to be sent in accordance with the terms and conditions of this Policy shall be sent via the intermediary of:- XXXXXX

10 In consideration of the payment of the premium as set forth elsewhere herein and subject to the limits of liability, exclusions, conditions and other terms of this Policy, the Insurers agree as follows:- SECTION ONE 1. HULL ALL RISKS INSURANCE 1.1. COVER To pay for physical loss of or damage, subject to any applicable deductible as set forth in the Policy Schedule, to aircraft as described in the Policy Schedule including parts temporarily detached and not replaced which loss or damage is sustained during the period of this Policy. With respect to Parts being removed (where replacement is intended) from or attached to the aircraft these shall be deemed to form part of the aircraft as follows:- Parts being removed - until the moment such part is safely in conoooo with the ground or the trolley/stand on which it is to be located when the process of removing it from the aircraft is completed and it is totally disconnected from the aircraft and the process of replacing the same (in accordance with the definition below) has commenced. Parts being attached - from the moment that such part ceases to be in conoooo with the ground or the trolley/stand on which it is located when the process of fitting it to the aircraft is commenced. This Section does not apply to on board spares, flight spares kits and/or fifth pod carriage of spare engines (including attachments) as insured under Section Two MISSING AIRCRAFT If an aircraft takes off and is missing and not reported for a period of 48 hours or more then it shall be deemed to be a total loss and the Insurers agree to pay the agreed value of the aircraft DISMANTLING COSTS, SALVAGE CHARGES AND EXPENSES This section is also to cover: the cost of dismantling the aircraft in the event that through force majeure or error in judgement the aircraft lands in any place from which it is unable to take off again together with the cost of transport from the place of landing to the nearest suitable airport and the cost of reassembling there, even if no damage is incurred. The total amount payable in this respect will not, together with the cost of repair, exceed the agreed value of the aircraft sue, labour and travel costs and expenses and salvage charges and expenses incurred by or on behalf of the Insured for the safety or preservation or recovery of the aircraft, which charges and expenses are payable by the Insurers, notwithstanding that the Insurers may have paid a total loss.

11 Such charges and expenses shall be payable in addition to any other amounts which may be payable under this Section One MECHANICAL BREAKDOWN EXCLUSION This section does not cover loss or damage which is due and confined to wear and tear, gradual deterioration, freezing, breakdown or failure, but this exclusion shall not apply to resultant loss of or damage to the aircraft caused thereby. In respect of a propulsion unit this shall be regarded as a complete unit and shall consist of the engine and the ancillaries necessary for its operation as an engine so that any failure, breakdown and the like and the consequences thereof within the propulsion unit are excluded, other than items lost overboard. Provided always that in the event of a landing as described in paragraph of this section the Insurers will pay the costs as set forth therein even though no impact damage may have resulted from such landing INGESTION It is agreed that damage to engines caused by the ingestion of stones, grit, dust, sand, ice or any corrosive or abrasive material or any other substance which has a progressive or cumulative engine damage effect is deemed to be wear, tear or deterioration and is excluded from this section. Nevertheless ingestion causing sudden damage attributable to: (a) (b) a single recorded incident necessitating the immediate withdrawal of the engine from service or if in the opinion of the Insured this is impractical or unnecessary then immediately upon return to home base is covered hereunder. a single identifiable incident that can be substantiated by date and time by the use of engine trend monitoring equipment shall be covered hereunder. Such coverage shall exclude any additional loss or damage which has occurred between the incident date and the date of its identification due to the continued operation of the engine COST OF REPAIRS In the event of loss or damage to an aircraft insured hereunder the Insurers will pay the cost of repairs less the amount of the applicable deductible. The cost of repairs shall include the cost of transportation of personnel, materials, tools and equipment required to effect the repairs to and/or from the place where the repairs are carried out and/or the cost of transporting the aircraft or damaged parts to and/or from the place where repairs are to be carried out. Transportation shall be by the most practical means whether by surface or air. In the event of loss or damage to the aircraft being repaired by the Insured (including work carried out under paragraph of this section) the actual wages paid for labour shall be allowed plus 250% or alternatively at the Insured s option the labour costs shall be charged on the Insured s average man hour tariff applicable at the time. Materials shall be charged at actual replacement cost which shall include insurance and transportation costs incurred in connection with their delivery to the Insured s base, any applicable import taxes and the like plus 30%. In the event of any other firm effecting repairs, the cost of repairs shall be the actual amount of the account increased by the reasonable cost to the Insured for supervising the repairs.

12 The cost of repairs to the aircraft shall also include the cost of necessary test flights and the cost of obtaining reinstatement of the Certificate of Airworthiness. Provided always that in no event shall the amount due with respect to a partial loss exceed the amount due were the loss payable as a total loss less the amount of the applicable deductible as set forth elsewhere herein AGREED VALUE - TOTAL LOSS In the event of a claim arising under this section being settled on the basis of a total loss the Insurers shall pay the agreed value of the aircraft concerned as per the schedule of aircraft set out in the Policy Schedule. A constructive total loss may be declared under this section, at the option of the Insured, in the event that the cost of repairs be estimated at 75% (seventy five per cent) or more of the agreed value. Nothing herein contained shall be deemed to prevent the declaration of a constructive total loss by mutual agreement between the Insurers and the Insured in the event that the cost of repairs is estimated at less than 75% (seventy five per cent) of the agreed value. In the event that the Insurers pay for a total loss the Insurers may elect to take the aircraft (together with all documents of record, registration and title thereto) as salvage NO ABANDONMENT Unless the Insurers elect to take the aircraft as salvage the aircraft shall at all times remain the property of the Insured who shall have no right of abandonment to the Insurers LEASED ENGINE / SPARE / COMPONENT AGREEMENT It is agreed that where required by the Insured in the event that an aircraft insured hereon is fitted with a leased engine(s) or spare part(s) or component(s) the agreed value of the aircraft to which such leased engine(s) or spare part(s) or component(s) is attached is automatically increased by the stipulated loss value of the leased engine(s) or spare part(s) or component(s) for the period it is installed subject always to the maximum agreed value provision(s) stated in the Policy Schedule not being exceeded. However, the foregoing shall not increase the stated agreed value of the aircraft when applying any constructive total loss clause hereon. In the event of a claim in respect of the aircraft being settled on a total loss basis, the Insurers will be entitled to the benefit of salvage in respect of the removed engine(s) or spare part(s) or component(s). Pro rata premium adjustment in respect of this coverage will be made at expiry TOTAL LOSS ONLY In the event that any aircraft set forth in the schedule of aircraft is declared and settled as a total loss, constructive total loss or arranged total loss, the Insurers will in addition to the agreed value of the aircraft pay any total loss only amount stated in the schedule of aircraft.

13 The Insurers shall have no additional rights of salvage in respect of any amounts payable under this clause UNEARNED PREMIUM INSURANCE In the event of a claim adjustable on the basis of a total loss the Insurers will indemnify the Insured for and will pay as a claim the unearned portion of the premium paid for loss of or physical damage to the aircraft the subject of the loss computed at pro rata from the day following the loss to the expiry date of this Policy. AVN AMOUNT IN ADDITION TO AGREED VALUE AND TOTAL LOSS ONLY AMOUNT In the event of a total loss, constructive total loss or arranged total loss of an aircraft insured hereunder, this Policy will pay an additional amount of USD 5,000,000 in respect of OOAirlines Limited and USD 2,000,000 in respect of OO Airlines Limited in full in addition to the agreed value and total loss only amount of the aircraft, up to a maximum of USD 10,000,000 in the aggregate. Coverage afforded hereunder will not operate to increase the maximum agreed value provision stated in the Policy Schedule.

14 SECTION TWO 2. SPARES ALL RISKS INSURANCE 2.1. COVER To pay for physical loss of or damage, subject to any applicable deductible as set forth in the Policy Schedule, sustained during the period of this Policy to spare parts, engines, flight spares kits, on board spares, ground support equipment (including unlicensed vehicles), tools, components and equipment destined to be fitted to or to form part of an aircraft and/or to be used in connection with the servicing, maintenance or repair of aircraft (hereinafter referred to as Spares ). Coverage which is afforded hereunder applies to Spares being the property of the Insured or the property of others for which the Insured has agreed to be responsible which loss or damage is sustained whilst such property is in the care, custody or control of the Insured, whilst at the premises of others or whilst in transit by any means of conveyance (including by the Insured s aircraft). FIRST LOSS In the event of a loss arising under this Section which exceeds the limit of Insurers liability as stated in the Schedule Insurers agree to pay the full amount of such limit, less any applicable deductible, and the balance of such loss shall be borne by the Insured EXCLUSIONS This section does not cover: loss of or damage to property which (i) is fitted to or which forms part of an aircraft or (ii) has been detached from an aircraft and is intended to be refitted to the aircraft and not replaced by other property. However, this exclusion does not apply to flight spares kits, on board spares or fifth pod carriage of spare engines (including attachments) loss or damage which is due and confined to wear and tear, gradual deterioration, freezing, breakdown or failure. In respect of a propulsion unit this shall be regarded as a complete unit and shall consist of the engine and the ancillaries necessary for its operation as an engine so that any failure, breakdown and the like and the consequences thereof within the propulsion unit are excluded loss of or damage to an engine sustained during engine running caused by the ingestion of stones, grit, dust, sand, ice or any corrosive or abrasive material or any other substance which has a progressive or cumulative engine damage effect which is deemed to be wear, tear or deterioration and is excluded from this section. Nevertheless, ingestion causing sudden damage attributable to a single recorded incident, is covered mysterious disappearance or unexplained loss or shortage disclosed upon taking inventory.

15 the property of others carried or stored for hire or reward loss of or damage to any property hereby insured which may be sustained whilst the same is under process and directly resulting therefrom. For the avoidance of doubt the test running of an engine shall be deemed not to be a process REPAIR COSTS REPLACEMENT In respect of partial damage to any Spares the cost of repairs shall include the applicable costs as detailed in paragraph 1.6. of Section One. In the event of loss or damage beyond economical repair of any Spares the sum recoverable hereunder shall be the actual replacement cost which shall include insurance and transportation costs incurred in connection with their delivery to the Insured s base and any applicable import taxes and the like or the insured value, whichever shall be the least amount, but where an agreed value has been agreed between the Insured and the Insurers the sum recoverable shall be the agreed value. Where Insurers pay for loss or damage beyond economical repair the Insurers may elect to take the affected Spare(s) (together with all documents of record, registration and title thereto) as salvage SALVAGE CHARGES AND EXPENSES This section also covers salvage charges and expenses incurred by or on behalf of the Insured for the safety or preservation or recovery of Spares, which charges and expenses are payable by the Insurers in addition to any other claim under this section PARTS DETACHED FROM/BEING ATTACHED TO AIRCRAFT With respect to parts removed from an aircraft (where replacement is intended) coverage for such removed parts attaches under this section as follows:- parts removed - from the moment such part is safely in conoooo with the ground or the trolley/stand on which it is to be located when the process of removing it from the aircraft is completed and it is totally disconnected from the aircraft and the process of replacing the same (in accordance with the definition below) has commenced. With respect to parts being attached to the aircraft coverage under this section shall cease and these parts shall be deemed to form part of the aircraft as follows:- parts being attached - from the moment that such part ceases to be in conoooo with the ground or the trolley/stand on which it is located when the process of fitting it to the aircraft is commenced.

16 SECTION THREE 3. AVIATION LIABILITY INSURANCE 3.1. COVER To pay on behalf of the Insured all sums which the Insured shall become legally liable to pay as damages for Bodily Injury and/or Property Damage caused by an Occurrence and arising out of or in connection with the Insured s operations, up to the limit, and subject to any applicable deductible, as set forth in the Policy Schedule DECLARED VALUES The coverage provided under this section includes coverage for the Insured s liability for Property Damage to passenger baggage and cargo for which the Insured or their agents have accepted a declared value in excess of the applicable limit under the provisions of the Warsaw Convention or other applicable law EXCLUSIONS NON-AVIATION LIABILITY CLAUSE This section does not cover the Insured s liability unless it arises from one or more of the following:- 1. Occurrences involving aircraft or parts or equipment relating thereto. 2. Occurrences arising at airport locations. 3. Occurrences arising at any other location in connection with the Insured's business of transporting passengers or goods by air. 4. Occurrences arising out of the supply of goods or services to others (i) in connection with the use and/or operation of aircraft (ii) involved in the air transport industry This section does not cover the Insured s liability to its employees for Bodily Injury arising out of and in the course of their employment. This exclusion is not applicable to the Insured s liability to its employees for Bodily Injury sustained whilst they are being carried in the Insured s aircraft, nevertheless this Policy does not cover any liability for which the Insured may be held liable under any workers compensation act or employers liability legislation or any similar legislation arising out of its ownership or operation of hotels, leisure resorts, social clubs and sports complexes arising out of its operations as a tour operator or travel agent, but this exclusion does not apply to liability arising out of a contract of carriage by air.

17 arising out of its ownership or operation of shops and restaurants but this exclusion shall not apply to legal liability arising out of the ownership or operation by the Insured of shops and restaurants at airport premises or at off-airport check-in facilities. For the purposes of this exclusion it is agreed that ticket offices are deemed not to be shops arising out of sponsorship or promotional activities except those conducted on airport premises or directly related to the operation of aircraft for Property Damage to property owned by, loaned to, rented to, leased to or occupied by the Insured. For the purpose of this exclusion property leased, conditionally sold or otherwise supplied to others under terms which are intended to transfer the risk of loss or damage to others shall be deemed not to be owned by, loaned to, rented to or leased to the Insured for Bodily Injury or Property Damage caused by any ships, vessels or boats owned, chartered, used or operated by the Insured arising from the use of any mechanically propelled vehicle which the Insured may use or cause or permit any other person to use on the road in such a manner as to render them responsible for insurance or security under any domestic or international law appertaining to road traffic, or where no such law exists, whilst such vehicle is on any public highway. In respect of any such liability arising from an Occurrence within the confines of an airport or airfield this exclusion does not apply: if there is no such applicable law; to the liability of the Insured to pay an amount which is excess of: any prescribed limit that is required to be insured where insurance may be effected to comply with the law whether the Insured effects an insurance policy in respect of such liability or not the limit of liability of the insurance policy effected by the Insured in respect of such liability whichever is the greater for the cost of repairing or replacing any defective goods or products manufactured, constructed, altered, repaired, serviced, treated, sold, supplied or distributed by the Insured or any defective part or parts thereof in respect of any fiduciary responsibility.

18 arising out of its advertising activities, but this exclusion is not applicable to Bodily Injury or Property Damage arising from illegal or criminal activities or dishonest acts alleged or otherwise committed by or at the direction of or with the knowledge or consent of the management or directors and officers of the Insured for Property Damage to an aircraft which is in the care, custody or control of the Insured for the purpose of storage, safekeeping, service, handling or maintenance whilst such aircraft is in Flight for loss of use of tangible property which has not been physically damaged or destroyed (a) (b) arising from a delay in or lack of performance by or on behalf of the Insured of any contract or agreement in accordance with its terms arising from improper or inadequate performance of goods or products manufactured, constructed, altered, repaired, serviced, treated, sold, supplied or distributed by the Insured but this exclusion does not apply to loss of use of other tangible property arising out of sudden and accidental physical damage to or destruction of the Insured's goods or products after they have been put to their intended use by somebody other than the Insured arising out of construction of, demolition of or alterations to buildings, runways or installations by the Insured or their contractors or sub-contractors, other than normal maintenance operations for the cost of making good any faulty workmanship but this exclusion does not apply to resulting damage arising from such faulty workmanship DEFENCE, SETTLEMENT AND SUPPLEMENTARY PAYMENTS With respect to such coverage as is afforded under this section (and any endorsements applicable to this section) the Insurers shall have the right and obligation to defend at their cost and expense in the name of and on behalf of the Insured any suit or other proceedings, even if groundless, false or fraudulent, brought against the Insured seeking damages as respects liability for which coverage is provided by this Policy. However, the Insurers shall have the right to make such investigation, negotiation and settlement of any claim or suit as they deem expedient. Furthermore, the Insurers shall pay all expenses incurred by the Insured with the Insurers approval (other than the salaries of the Insured s employees and the Insured s normal office expenses) in respect of any such suit or other proceedings brought against the Insured pay all premiums on bonds to release attachments for an amount not in excess of the applicable limit of liability of this Policy and all

19 premiums on appeal bonds required in any such defended suit, but without any obligation to apply for or furnish any such bonds pay all costs taxed against the Insured in any such suit or proceedings and all interest accruing after entry of judgement until the Insurers have paid, tendered or deposited in court, such part of such judgement as does not exceed the applicable limit of the Insurers liability. The Insurers shall only be liable to pay for that proportion of the said costs and interest which the applicable limit of the Insurers liability bears to the amount of such judgement The amounts incurred under this paragraph 3.4. except settlements of claims and suits are payable by the Insurers in addition to the limit of the Insurers liability stated in the Policy Schedule. However with respect to any coverage which is subject to an aggregate limit hereunder the Insurers shall not be obligated to defend any suit nor pay any costs or expenses after the aggregate limit of liability under this Policy has been exhausted and in this event the Insured shall have the right to take over control of proceedings from the Insurers ADDITIONAL EXPENSES EXTENSION The Insurers agree to pay: any reasonable expenses incurred for the purpose of search and rescue operations for an aircraft insured hereunder determined to be missing any reasonable expenses incurred for the purpose of the foaming of a runway or an aircraft to prevent or mitigate possible loss or damage because of malfunction or suspected malfunction of an aircraft insured hereunder any reasonable expenses incurred for the purpose of attempted or actual raising, removal, disposal or destruction of the wreck of an aircraft insured hereunder and the contents thereof any reasonable expenses which the Insured may be called upon to pay in respect of any public enquiry or enquiry by the Civil Aviation Authority or any other relevant authority into an accident insured hereunder any reasonable expenses incurred by or on behalf of the Insured for fire and crash control in respect of a loss to an aircraft insured hereunder any reasonable expenses for sustenance, first aid, hospital and medical service, funeral, burial and/or repatriation of bodies and injured persons, travel and accommodation for visits to the scene of an accident and additional expenses incurred in connection with memorial services following an Occurrence for which indemnity for the legal liability of the Insured is provided by this Section any reasonable expenses for any other acts of humanity (other than those specified in paragraph ), incurred following an

20 Occurrence for which indemnity for the legal liability of the Insured is provided by this Section any reasonable expenses incurred by or on behalf of the Insured or assumed under contract arising out of a loss covered hereunder for (1) the use of an emergency procedures centre and/or (2) the use of a crisis management centre any reasonable costs and expenses arising from aircraft diversion due to passenger or crew illness as incurred any reasonable costs and expenses arising from aircraft diversion due to unexpected passenger action as incurred. Amounts payable under this paragraph 3.5. are payable within the combined single limit stated in the Policy Schedule, however, coverage under paragraphs and shall be subject to a sub-limit of USD 10,000,000 any one Occurrence and in the aggregate UNITED STATES FOREIGN AIR CARRIER FAMILY SUPPORT AND AVIATION DISASTER FAMILY ASSISTANCE ACTS The Insurers agree to indemnify the Insured for all reasonable expenses incurred arising out of the requirements of the Aviation Disaster Family Assistance Act of 1996 or the United States Foreign Air Carrier Family Support Act of 1997 as applicable. Amounts payable under this paragraph 3.6. are payable within the combined single limit stated in the Policy Schedule AUTOMATIC PASSENGER PERSONAL ACCIDENT INSURANCE To enable the Insured to comply with any local legislation requiring automatic personal accident insurance for passengers this Policy is extended to include such automatic personal accident insurance up to the statutory limits prescribed by such legislation. Amounts payable under this paragraph 3.7. are payable within the combined single limit stated in the Policy Schedule BAIL AND/OR GUARANTEE The Insurers will pay the cost of any bail and/or guarantee required to obtain the release of an aircraft or crew member or their property or to secure the departure of the aircraft where the crew member is arrested or the departure of the aircraft is prevented by the relevant authorities in connection with Bodily Injury or Property Damage as insured hereunder. Amounts payable under this paragraph 3.8. are payable within the combined single limit stated in the Policy Schedule.

21 SECTION FOUR 4. EXCESS LIABILITY 4.1. COVER To pay on behalf of the Insured all sums which the Insured shall become legally liable to pay as damages for Bodily Injury and/or Property Damage arising from the risks and hazards covered by the underlying policy/ies as per paragraph 8. of the Policy Schedule caused by an Occurrence happening during the period of this Policy CONDITIONS The Insurers will only pay up to the amount stated in paragraph of the Policy Schedule excess of an Ultimate Net Loss to the Insured of the limit of liability of the relevant underlying policy INCURRING OF COSTS In the event of a claim or claims arising which appear likely to exceed the underlying limits, no Costs shall be incurred by the Insured without the consent of the Insurers APPORTIONMENT OF COSTS Costs incurred by or on behalf of the Insured with the consent of the Insurers, and for which the Insured is not covered by the underlying insurers, shall be apportioned as follows Should any claim or claims become adjustable prior to the commencement of trial for not more than the underlying limit(s) then no Costs shall be payable by the Insurers Should, however, the amount for which the said claim or claims may be so adjustable exceed the underlying limit(s) then the Insurers shall contribute to the Costs incurred by or on behalf of the Insured in the ratio that their proportion of the Ultimate Net Loss as finally adjusted bears to the whole amount of such Ultimate Net Loss In the event that the Insured elects not to appeal a judgement in excess of the underlying limit(s) the Insurers may elect to conduct such appeal at their own cost and expense and shall be liable for the taxable court costs and interest incidental thereto, but in no event shall the total liability of the Insurers exceed their limit(s) of liability as provided for herein, plus the expenses of such appeal APPLICATION OF RECOVERIES All recoveries or payments recovered or received subsequent to a loss settlement under this section shall be applied as if recovered or received prior to such settlement and all necessary adjustments shall then be made between the Insured and the Insurers, provided always that nothing herein shall be construed to mean that losses under this section are not payable until the Insured s Ultimate Net Loss has been finally ascertained.

22 ATTACHMENT OF LIABILITY Liability to pay under this section shall not attach unless and until the underlying insurers shall have admitted liability for the underlying limit(s) or unless and until the Insured has by final judgement been adjudged to pay an amount which exceeds such underlying limits and then only after the underlying insurers have paid or have been held liable to pay the full amount of the underlying limit(s) MAINTENANCE OF UNDERLYING INSURANCE 4.3. EXCLUSION It is a condition of this insurance that the underlying policy/ies shall be maintained in full effect during the currency of this Policy, failing which coverage under this section shall thereupon cease, except for any reduction of any aggregate limits contained therein solely by payment of claims in respect of Occurrences happening during the period of this Policy. This section is subject to the same warranties, terms, conditions, definitions and exclusions (except as regards the premium, the obligation to investigate and defend, the renewal agreement, if any, the amount and limits of liability other than the deductible or any self insurance provisions, where applicable and except as otherwise provided herein) as are contained in or may be added to the underlying policy/ies. This Policy does not apply to any loss suffered by the Insured as a result of the inability, refusal or failure to pay of the underlying insurers for any reason whatsoever including, without limitation, any financial impairment, insolvency or liquidation.

23 SECTION FIVE 5. GENERAL EXCLUSIONS The following general exclusions apply to all sections of this Policy except as stated: LIABILITY ASSUMED UNDER CONTRACT OR AGREEMENT (not applicable to Section Four) This Policy does not cover liability assumed by the Insured under a contract or agreement except as otherwise provided herein or unless such liability would have attached to the Insured even in the absence of such contract or agreement NUCLEAR RISKS EXCLUSION CLAUSE (1) This Policy does not cover : (i) (ii) loss of or destruction of or damage to any property whatsoever or any loss or expense whatsoever resulting or arising therefrom or any consequential loss any legal liability of whatsoever nature directly or indirectly caused by or contributed to by or arising from: (a) (b) (c) the radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof; the radioactive properties of, or a combination of radioactive properties with toxic, explosive or other hazardous properties of, any other radioactive material in the course of carriage as cargo, including storage or handling incidental thereto; ionizing radiations or contamination by radioactivity from, or the toxic, explosive or other hazardous properties of, any other radioactive source whatsoever. (2) It is understood and agreed that such radioactive material or other radioactive source in paragraph (1) (b) and (c) above shall not include: (i) (ii) depleted uranium and natural uranium in any form; radioisotopes which have reached the final stage of fabrication so as to be usable for any scientific, medical, agricultural, commercial, educational or industrial purpose. (3) This Policy, however, does not cover loss of or destruction of or damage to any property or any consequential loss or any legal liability of whatsoever nature with respect to which: (i) (ii) the Insured under this Policy is also an insured or an additional insured under any other insurance policy, including any nuclear energy liability policy; or any person or organization is required to maintain financial protection pursuant to legislation in any country; or

24 (iii) the Insured under this Policy is, or had this Policy not been issued would be, entitled to indemnification from any government or agency thereof. (4) Loss, destruction, damage, expense or legal liability in respect of the nuclear risks not excluded by reason of paragraph (2) shall (subject to all other terms, conditions, limitations, warranties and exclusions of this Policy) be covered, provided that: (i) (ii) (iii) in the case of any claim in respect of radioactive material in the course of carriage as cargo, including storage or handling incidental thereto, such carriage shall in all respects have complied with the full International Civil Aviation Organization Technical Instructions for the Safe Transport of Dangerous Goods by Air, unless the carriage shall have been subject to any more restrictive legislation, when it shall in all respects have complied with such legislation; this Policy shall only apply to an incident happening during the period of this Policy and where any claim by the Insured against the Insurers or by any claimant against the Insured arising out of such incident shall have been made within three years after the date thereof; in the case of any claim for the loss of or destruction of or damage to or loss of use of an aircraft caused by or contributed to by radioactive contamination, the level of such contamination shall have exceeded the maximum permissible level set out in the following scale: Emitter (IAEA Health and Safety Regulations) Beta, gamma and low toxicity alpha emitters Maximum permissible level of non-fixed radioactive surface contamination (Averaged over 300 cm²) Not exceeding 4 Becquerels/cm² (10-4 microcuries/cm²) All other emitters Not exceeding 0.4 Becquerels/cm² (10-5 microcuries/cm²) (iv) the cover afforded hereby may be cancelled at any time by the Insurers giving seven days notice of cancellation. AVN 38B WAR, HI-JACKING AND OTHER PERILS EXCLUSION CLAUSE (AVIATION) This Policy does not cover claims caused by

25 (a) (b) (c) (d) (e) (f) (g) War, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, martial law, military or usurped power or attempts at usurpation of power. Any hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter. Strikes, riots, civil commotions or labour disturbances. Any act of one or more persons, whether or not agents of a sovereign Power, for political or terrorist purposes and whether the loss or damage resulting therefrom is accidental or intentional. Any malicious act or act of sabotage. Confiscation, nationalisation, seizure, restraint, detention, appropriation, requisition for title or use by or under the order of any Government (whether civil military or de facto) or public or local authority. Hi-jacking or any unlawful seizure or wrongful exercise of control of the Aircraft or crew in Flight (including any attempt at such seizure or control) made by any person or persons on board the Aircraft acting without the consent of the Insured. Furthermore this Policy does not cover claims arising whilst the Aircraft is outside the control of the Insured by reason of any of the above perils. The Aircraft shall be deemed to have been restored to the control of the Insured on the safe return of the Aircraft to the Insured at an airfield not excluded by the geographical limits of this Policy, and entirely suitable for the operation of the Aircraft (such safe return shall require that the Aircraft be parked with engines shut down and under no duress). AVN 48B NOISE AND POLLUTION AND OTHER PERILS EXCLUSION CLAUSE 1. This Policy does not cover claims directly or indirectly occasioned by, happening through or in consequence of:- (a) (b) (c) (d) noise (whether audible to the human ear or not), vibration, sonic boom and any phenomena associated therewith, pollution and contamination of any kind whatsoever, electrical and electromagnetic interference, interference with the use of property; unless caused by or resulting in a crash fire explosion or collision or a recorded in-flight emergency causing abnormal aircraft operation. 2. With respect to any provision in the Policy concerning any duty of the Insurers to investigate or defend claims, such provision shall not apply and the Insurers shall not be required to defend (a) claims excluded by Paragraph 1 or

26 (b) a claim or claims covered by the Policy when combined with any claims excluded by Paragraph 1 (referred to below as Combined Claims ). 3. In respect of any Combined Claims, the Insurers shall (subject to proof of loss and the limits of the Policy) reimburse the Insured for that portion of the following items which may be allocated to the claims covered by the Policy: (i) (ii) damages awarded against the Insured and defence fees and expenses incurred by the Insured. 4. Nothing herein shall override any radioactive contamination or other exclusion clause attached to or forming part of this Policy. AVN 46B This paragraph 5.4. is not applicable to Section One or Section Two or to passengers, baggage, cargo or mail. Paragraph 1.(b) above is not applicable to pollution or contamination of goods or products sold or supplied by the Insured DATE RECOGNITION EXCLUSION CLAUSE This Policy does not cover any claim, damage, injury, loss, cost, expense or liability (whether in contract, tort, negligence, product liability, misrepresentation, fraud or otherwise) of any nature whatsoever arising from or occasioned by or in consequence of (whether directly or indirectly and whether wholly or partly): (a) the failure or inability of any computer hardware, software, integrated circuit, chip or information technology equipment or system (whether in the possession of the Insured or of any third party) accurately or completely to process, exchange or transfer year, date or time data or information in connection with any change of year, date or time; whether on or before or after such change of year, date or time; (b) (c) any implemented or attempted change or modification of any computer hardware, software, integrated circuit, chip or information technology equipment or system (whether in the possession of the Insured or of any third party) in anticipation of or in response to any such change of year, date or time, or any advice given or services performed in connection with any such change or modification; any non-use or unavailability for use of any property or equipment of any kind whatsoever resulting from any act, failure to act or decision of the Insured or of any third party related to any such change of year, date or time; (d) and any provision in this Policy concerning any duty of Insurers to investigate or defend claims shall not apply to any claims so excluded. AVN 2000A CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999 EXCLUSION CLAUSE