Contracts Management and Administration (Based on FIDIC Standard)

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INSURANCE UNDERSTANDING THE REQUIREMENTS CONCEPTS AND DEFINITIONS

CONCEPT OF INSURANCE INSURANCE is a primarily a means of protection from financial loss. It is a FORM OF RISK MANAGEMENT primarily used to hedge against the risk of a contingent, uncertain loss. An entity which provides insurance is known as an INSURER, INSURANCE COMPANY, OR INSURANCE CARRIER.

CONCEPT OF INSURANCE What Is the RISK of Insurance? It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. An entity which provides insurance is known as an INSURER, insurance company, or insurance carrier. A person or entity who buys insurance is known as an INSURED or POLICYHOLDER.

CONCEPT OF INSURANCE INSURANCE is also an ECONOMIC INSTITUTION that allows the transfer of financial risk from an individual to a POOLED GROUP OF RISKS by means of a two-party contract. The INSURED PARTY obtains a specified amount of coverage against an uncertain event for a smaller but certain payment.

CONCEPT OF INSURANCE Insurers may offer Fixed, Specified Coverage, or Replacement Coverage, which takes into account the increased cost of putting the structure back to its original condition.

THE INSURANCE COMPANY INSURANCE IS NO LESS THAN A LEGAL CONTRACT, represented by a POLICY, in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. THE COMPANY POOLS CLIENTS' RISKS TO MAKE PAYMENTS MORE AFFORDABLE FOR THE INSURED.

INSURANCE CONTRACT UNDERSTANDING THE COMPONENTS

INSURANCE CONTRACT In insurance, THE INSURANCE POLICY is a contract (generally a standard form contract) between the insurer and the insured, known as the POLICYHOLDER, which determines the claims which the insurer is legally required to pay.

INSURANCE CONTRACT Definition: An INSURANCE CONTRACT is an arrangement in which one party, the insurer, accepts significant insurance risk from another party, the POLICYHOLDER, to compensate the policyholder if a SPECIFIC UNCERTAIN future event impacts the policyholder.

INSURANCE CONTRACT What Is A Consideration In Insurance? A contract (an insurance contract) whereby one person, THE INSURER, promises and undertakes, in exchange for CONSIDERATION of a set or assessed amount of money (called a "PREMIUM"), to make a payment to either the insured or a third-party if a specified event occurs, also known as "occurrences".

ELEMENTS OF INSURANCE ELEMENTS OF INSURANCE CONTRACT CAN BE CLASSIFIED INTO TWO SECTIONS; 1. The Elements of General Contract, and 2. The Elements of Special Contract relating to Insurance.

ELEMENTS COMPRISING INSURANCE AND INSURANCE POLICIES

ELEMENTS OF INSURANCE The Special Contract of Insurance involves principles: Insurable Interest; Utmost Good Faith; Indemnity; Subrogation; Warranties; Proximate Cause; Assignment and Nomination Return of Premium.

INSURABLE INTEREST The following are the essentials of insurable interest; There must be property, rights, interest, life, limb or potential liability devolving upon the insured capable of being covered by a policy of insurance.

INSURABLE INTEREST Without Insurable Interest Principle: Anybody could be allowed to affect a policy of insurance on anybody s life or property in the absence thereof; Then there could be opportunity created whereby intentional or deliberate losses could be claimed solely for making gains without losing anything at all.

1. UTMOST GOOD FAITH ACCORDING TO THIS PRINCIPLE: 1. Both the parties to the insurance contract must disclose all facts material to the risk voluntarily to each other. 2. Any breach of this duty shall render the contract voidable at the option of the aggrieved party, i.e., the party who has suffered as a result of this breach.

1. UTMOST GOOD FAITH ACCORDING TO THIS PRINCIPLE: 3. In other commercial contracts, unlike insurance contracts, the rule of let the buyer beware (Caveat emptor) applies. 4. The reason of such a provision of law is this that the goods are tangible and visible. These can be very well examined before purchase.

1. UTMOST GOOD FAITH ACCORDING TO THIS PRINCIPLE: Although insurance contract is a simple commercial contract, but it differs from other commercial contracts with regard to the application of this principle. In other commercial contracts, unlike insurance contracts, the rule of let the buyer beware (Caveat emptor) applies. The reason of such a provision of law is that the goods are tangible and visible. These can be very well examined before purchase.

1. UTMOST GOOD FAITH Insurance contracts actually stand in a different category because there is nothing visible or tangible here which can be physically examined like other contracts as explained. Therefore, the law is not of let the buyer beware.

1. UTMOST GOOD FAITH Unless both the parties to the contract disclose voluntarily to the other party all facts relating to the proposed contract it is not possible for the other party to know precisely as to what type of bargain he is entering into. Therefore, this doctrine requires that both the parties to an insurance contract should disclose all facts material to the risk to the other party. Although this duty applies to both, but in practice it applies more to the insured.

2. PRINCIPLE OF INDEMNITY The Principle of Indemnity asserts that on the happening of a loss the insured shall be put back into the same financial position as he used to occupy immediately before the loss. In other words, the insured shall get neither more nor less than the actual amount of loss sustained.

2. PRINCIPLE OF INDEMNITY SELECTION OF SUM-INSURED In a CONTRACT OF INDEMNITY, selection of proper sum insured is important as this is always the limit within which indemnity will be considered. Therefore, if the sum insured is restricted to a lesser amount than the actual value then in the case of a total loss the insured gets the sum insured which does not actually indemnify him.

2. PRINCIPLE OF INDEMNITY Except for life and personal accident insurance, all insurance contracts are contracts of indemnity. Life and personal accident insurance are not contracts of indemnities simply because life or limb cannot be valued in terms of money.

2. PRINCIPLE OF INDEMNITY NON-LIFE Apart from life and personal accident insurances, all other types of insurances are contracts of indemnities. Therefore, Marine, Fire, Motor, EAR, CAR, Burglary, Fidelity Guarantee, Employers Liability, Public Liability, Aviation, Engineering, Products Liability, Crop insurance, Livestock insurance etc. are all contracts of indemnity.

3. PRINCIPLE OF SUBROGATION SUBROGATION PRINCIPLE means; When insurer (insurance company) pays full compensation for any insured loss (of insured property), the insurer (insurance company) holds the legal right (claim) of the insured property. SUBROGATION is a right that a person has of standing in the place of another and availing himself of all the rights and remedies of that another, whether already enforced or not.

3. PRINCIPLE OF SUBROGATION In insurance, after payment of a claim, the insurers shall be entitled to take over the legal right of the insured against the liable third party for the purpose of recovery. Everybody is entitled to live peacefully and if this peace is disturbed by the wrongdoer of another then the person who has been subjected to this wrong has a legal right of action against the wrongdoer.

3. PRINCIPLE OF SUBROGATION Here comes up the proposition then that if the damage sustained by the wronged is also covered by a policy of insurance then after getting the claim from insurers he gives up his right of recovery against the wrongdoer in favor of his insurers. Insurers then proceed against the liable third party direct and recover the loss or damage for their own benefit.

4. PRINCIPLE OF WARRANTIES INSURANCE POLICY WARRANTY A WARRANTY IN AN INSURANCE POLICY is a statement attesting that something the insured person says is true. An insurance contract is written on the principle of utmost good faith, meaning each party must trust that the other is being completely truthful. For the contract to be valid, you may have to warrant that an assumption the insurer is making is true.

4. PRINCIPLE OF WARRANTIES INSURANCE POLICY WARRANTY For example, if you are applying for life insurance, you must make a warranty that you are not terminally ill. If the insurer discovers that one of your warranties is untrue, it generally has the power to void the contract and not honor any claims you make. This is the only instance where the term "insurance warranty" is accurate.

HOLD HARMLESS DEFINED A "HOLD HARMLESS" OR "LIABILITY WAIVER" PROVISION IN A CONTRACT IS: An Agreement between the parties whereby one or both parties agree not to hold the other party responsible for any loss, damage, or legal liability that may arise under the agreement. In other words, the two parties cannot sue each other for any damage they may suffer due to the negligence of the other party.

UAE INSURANCE AUTHORITY FEDERAL LAW NO. 06

UAE Federal Law No. 6 of 2007 Insurance Authority & Organization

EXECUTIVE REGULATION OF UAE Federal Law No. 6 of 2007

UAE FORMS OF CONSTRUCTION RELATED INSURANCE

UAE FORMS OF INSURANCE PROVIDED BY LOCAL INDUSTRY 1. ALL RISKS INSURANCE 2. PROFESSIONAL INDEMNITY INSURANCE 3. PUBLIC LIABILITY INSURANCE 4. ALL RISKS INSURANCE 5. DELAY IN START-UP INSURANCE (DSU)

UAE FORMS OF INSURANCE ALL RISKS INSURANCE (CONTRACTORS) THIS INSURES AGAINST PHYSICAL DAMAGE TO THE WORKS (including materials on site, usually); All Risks Insurance typically covers the full reinvestment value of the works plus a mark up for any ancillary costs (such as consultancy and professional fees) that are incurred.

UAE FORMS OF INSURANCE ALL RISKS INSURANCE (CONTRACTORS) Contractors generally have global or Umbrella All Risks Insurance policies that cover all its projects, so it is generally more cost effective for contractors to maintain this insurance or at least up to the Taking Over of Works. Once this happens, the risks passes to the Employer.

UAE FORMS OF INSURANCE ALL RISKS INSURANCE (CONTRACTORS) Usually Defects are excluded from All Risks Insurance policies. Wording within the policy, however, can be purchased (generally) that provides cover for damages that a defect causes to other parts of the works.

UAE FORMS OF INSURANCE ALL RISKS INSURANCE (CONTRACTORS) For this type of insurance to be meaningful however, the different components of the works must be carefully and clearly delineated. This insurance is only generally available if the works are being undertaken in accordance with well established construction techniques.

UAE FORMS OF INSURANCE PROFESSIONAL INDEMNITY INSURANCE This insures contractors with design responsibility (i.e., under Design and Build Contracts) against liability arising out of professional negligence and will respond if, for example, designs do not comply with the requirements of the underlying construction contract.

UAE FORMS OF INSURANCE PROFESSIONAL INDEMNITY INSURANCE It should be noted, however that it is not uncommon for professional indemnity insurance to exclude cover for fitness of purpose warranties.

UAE FORMS OF INSURANCE PROFESSIONAL INDEMNITY INSURANCE Professional Indemnity Insurance is made on a claims basis as opposed to when a breach of professional duty actually occurs. This means that professional indemnity insurance is generally required to remain in place until any limitation period ends. In the UAE that period is 10 years.

UAE FORMS OF INSURANCE PROFESSIONAL INDEMNITY INSURANCE The amount of professional indemnity insurance cover the contractor is required to have in place is generally determined on a case-by-case basis, depending on the extent and the complexity of the design works in question.

UAE FORMS OF INSURANCE PUBLIC LIABILITY INSURANCE This insurance provides cover for liability arising out of death or personal injury to third parties or damage to property belonging to third parties (excluding the works which is covered under All Risks Insurance) prior to the works being taken over.

UAE FORMS OF INSURANCE PUBLIC LIABILITY INSURANCE If an employee of a contractor causes death of a third party, the Sharia law applied in many Middle Eastern countries allow Diyah or blood money to be claimed by the victim's heirs from the individual who caused the fatality.

UAE FORMS OF INSURANCE DECENNIAL LIABILITY INSURANCE This insurance provides cover for liability arising out of any defect that threatens the safety or stability of the building or if the building suffers a total or partial collapse.

UAE FORMS OF INSURANCE DECENNIAL LIABILITY INSURANCE Under the contractor, as well the supervising Architect or Engineer, are jointly liable to the employer for a period up to 10 years (from the date the works are taken over).

UAE FORMS OF INSURANCE DELAY IN START-UP INSURANCE (DSU) This insurance provides cover for liability arising out of projects not being taken over by the date for completion listed in the contract, or depending on circumstance s and/or the nature of the works fail to satisfy specific output criteria.

UAE FORMS OF INSURANCE DELAY IN START-UP INSURANCE (DSU) Contractors are customary required to paid delay damages (formerly called Liquidated Damages ) to the employer when the works are not completed on time. Delay damages are, however, typically capped at 10% of the contract price.

UAE FORMS OF INSURANCE DELAY IN START-UP INSURANCE (DSU) Caps of this nature may mean that the Employer is not fully compensated for any loss suffered and even though caps on delay damages can sometimes be set aside (to reassess damages in line with the actual loss suffered), this can be a slow, uncertain and expensive process.

UAE FORMS OF INSURANCE DELAY IN START-UP INSURANCE (DSU) For this reason, Employers sometimes (most pointedly when/if the works are being financed on a project basis) take out DSU insurance with provides compensation for losses (including loss of revenue and other consequential losses) arising out of late completion as well as other forms of delay (Force Majeure)

KEY PROVISIONS OF THE INSURANCE INDUSTRY

IMPORTANT ANCILLARY ISSUES JOINT NAMES 1. Certain insurance policies are generally taken out in the joint names of the employer and the contractor, and even often, the name of the funder, if any. 2. As an example, this includes the Employer being insured against any liability incurred by reason of a breach by the contractor.

IMPORTANT ANCILLARY ISSUES JOINT NAMES 3. As a matter of good order, co-insured parties should obtain copies of the policy that they are insured under so they know exactly what they are covered for. 4. However, generally speaking a party named under an insurance policy can make claims under that policy and it is also common for insurers to be required to waive their rights of subrogation against co-insured parties.

IMPORTANT ANCILLARY ISSUES JOINT NAMES 5. This means that the insurer agrees not to seek to recover against a co-insured party (i.e., the Employer) even if the insurer paid out on account of the actions of the employer.

IMPORTANT ANCILLARY ISSUES JOINT NAMES 5. It s important to remember that if two or more parties are insured under the same policy, the policy provides that no act or omission of a co-insured party (i.e., misrepresentation, non-disclosure, or failure to notify) will vitiate the policy or otherwise prejudice the cover of the other co-insured party (non-breaching) parties under the policy.

IMPORTANT ANCILLARY ISSUES CROSS LIABILITY It is usual for contracts that are in joint names to contain a cross liability clause. Cross liability clauses essentially mean that each party is insured in its own right as if a separate policy had been issued and, as such, the policy will respond to liability incurred by one co-insured party to another co-insured party.

IMPORTANT ANCILLARY ISSUES INTEREST NOTED ON A POLICY It is important to distinguish between being taken out in joint names and a party s interest being simply noted on a policy. Although a party whose name is noted on a policy has the right to share in insurance proceeds, the party does not have any direct right to claim under the policy.

IMPORTANT ANCILLARY ISSUES INTEREST NOTED ON A POLICY Additionally the insurer generally will not waive its rights of subrogation against a party whose interest is noted on the policy.

IMPORTANT ANCILLARY ISSUES EXCLUSIONS Insurance policies are normally subject to exclusions that may restrict the amount of available cover. As an example, some insurance policies exclude cover for guarantees and liability for delay damages; Fitness of Purpose warranties are also a relatively common exclusion

IMPORTANT ANCILLARY ISSUES LENDER S INTEREST Often as part of their security package, lenders may required an assignment of the borrower s rights under insurance policies and may also wish to be named as the loss payee of the insurance proceeds.

IMPORTANT ANCILLARY ISSUES LENDER S INTEREST Additionally, lenders may prefer to use insurance proceeds to pay off the loan instead of reinstating the project if the project is destroyed or badly damaged. If lenders require this ability, care needs to be taken to ensure that this right is accommodated by the underlying insurance policy.

IMPORTANT ANCILLARY ISSUES CAPS ON LIABILITY It is a common misconception in the construction industry that a contractor s liability for a particular risk (especially for breach of professional duty or negligence) is implicitly capped at the amount of insurance that the contractor is required to have for that risk.

IMPORTANT ANCILLARY ISSUES CAPS ON LIABILITY THIS IS NOT THE CASE!!!!! If, for example, the contractor is required to have professional insurance of USD 5 million per claim, the contractor s liability, for say a defective design, is not automatically capped at USE 5 million per claim and the Employer may seek to recover from the contractor s assets for any loss incurred that exceeds USD 5 million.

IMPORTANT ANCILLARY ISSUES CAPS ON LIABILITY Expressed wording is required for a contractor s liability to be limited and, even then, local laws (such as the UAE Civil Code, [i.e., Article 390(2)] can be invoked upon to reassess and adjust pre-agreed caps on liability so that the injured party can only recover damages to compensate it for the actual loss sustained arising out of breach.

BACK TO FIDIC CHAPTER 18 - INSURANCE

17.1 INDEMNITIES The Contractor shall indemnify and hold harmless the Employer, the Employer s Personnel, and their respective agents, against and from all claims, damages, losses and expenses (including legal fees and expenses) in respect of

17.1 INDEMNITIES

17.1 INDEMNITIES 1. BODILY INJURY, SICKNESS, DISEASE OR DEATH, which is attributable to any negligence, willful act or breach of the Contract by the Employer, the Employer s Personnel, or any of their respective agents, and 2. THE MATTERS FOR WHICH LIABILITY MAY BE EXCLUDED FROM INSURANCE COVER, AS DESCRIBED IN SUB-PARAGRAPHS (D)(I), (II) AND (III) OF SUB-CLAUSE 18.3 [INSURANCE AGAINST INJURY TO PERSONS AND DAMAGE TO PROPERTY].

17.5 INTELLECTUAL AND INDUSTRIAL PROPERTY RIGHTS IN THIS SUB-CLAUSE, INFRINGEMENT MEANS AN INFRINGEMENT (OR ALLEGED INFRINGEMENT) OF ANY PATENT, REGISTERED DESIGN, COPYRIGHT, TRADE MARK, TRADE NAME, TRADE SECRET OR OTHER INTELLECTUAL OR INDUSTRIAL PROPERTY RIGHT RELATING TO THE WORKS; AND CLAIM MEANS A CLAIM (OR PROCEEDINGS PURSUING A CLAIM) ALLEGING AN INFRINGEMENT.

17.5 INTELLECTUAL AND INDUSTRIAL PROPERTY RIGHTS Whenever a Party does not give notice to the other Party of any claim within 28 days of receiving the claim, the first Party shall be deemed to have waived any right to indemnity under this Sub-Clause. THE EMPLOYER SHALL INDEMNIFY AND HOLD THE CONTRACTOR HARMLESS AGAINST AND FROM ANY CLAIM ALLEGING AN INFRINGEMENT WHICH IS OR WAS:

17.5 INTELLECTUAL AND INDUSTRIAL PROPERTY RIGHTS a) An unavoidable result of the Contractor s compliance with the Contract, or b) A result of any Works being used by the Employer: I. For a purpose other than that indicated by, or reasonably to be inferred from, the Contract, or; II. In conjunction with any thing not supplied by the Contractor, unless such use was disclosed to the Contractor prior to the Base Date or is stated in the Contract.

17.5 INTELLECTUAL AND INDUSTRIAL PROPERTY RIGHTS The Contractor shall indemnify and hold the Employer harmless against and from any other claim which arises out of or in relation to a) The manufacture, use, sale or import of any Goods, or; b) Any design for which the Contractor is responsible.

17.5 INTELLECTUAL AND INDUSTRIAL PROPERTY RIGHTS If a Party is entitled to be indemnified under this Sub-Clause, the indemnifying Party may (at its cost) conduct negotiations for the settlement of the claim, and any litigation or arbitration which may arise from it.

17.5 INTELLECTUAL AND INDUSTRIAL PROPERTY RIGHTS The other Party shall, at the request and cost of the indemnifying Party, assist in contesting the claim.

17.5 INTELLECTUAL AND INDUSTRIAL PROPERTY RIGHTS This other Party (and its Personnel) shall not make any admission which might be prejudicial to the indemnifying Party, unless the indemnifying Party failed to take over the conduct of any negotiations, litigation or arbitration upon being requested to do so by such other Party.

17.6 LIMITATION OF LIABILITY NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY: 1. For loss of use of any Works, 2. Loss of profit, 3. Loss of any contract, 4. Any indirect or consequential loss or damage which may be suffered by the other Party in connection with the Contract, other than under: Sub-Clause 16.4 [Payment on Termination] and Sub-Clause 17.1 [Indemnities].

17.6 LIMITATION OF LIABILITY The TOTAL LIABILITY of the Contractor to the Employer, under or in connection with the Contract; other than under Sub-Clause 4.19 [Electricity, Water and Gas], Sub-Clause 4.20 [Employer s Equipment and Free-Issue Material], Sub-Clause 17.1 [Indemnities] and Sub-Clause 17.5 [Intellectual and Industrial Property Rights], SHALL NOT EXCEED THE SUM STATED IN THE PARTICULAR CONDITIONS OR (IF A SUM IS NOT SO STATED) THE ACCEPTED CONTRACT AMOUNT.

17.6 LIMITATION OF LIABILITY THIS SUB-CLAUSE SHALL NOT LIMIT LIABILITY IN ANY CASE OF FRAUD, DELIBERATE DEFAULT OR RECKLESS MISCONDUCT BY THE DEFAULTING PARTY.

18.1 GENERAL REQUIREMENTS FOR INSURANCES In this Clause, insuring Party means, for each type of insurance, the Party responsible for effecting and maintaining the insurance specified in the relevant Sub-Clause.

18.1 GENERAL REQUIREMENTS FOR INSURANCES Wherever the Contractor is the insuring Party, each insurance shall be effected with insurers and in terms approved by the Employer. THESE TERMS shall be consistent with ANY TERMS AGREED by both Parties before the date of the Letter of Acceptance. THIS AGREEMENT OF TERMS SHALL TAKE PRECEDENCE OVER THE PROVISIONS OF THIS CLAUSE. (FIDIC SC 18.1)

18.1 GENERAL REQUIREMENTS FOR INSURANCES Wherever the EMPLOYER is the insuring Party, 1. Each insurance shall be effected with insurers; 2. And in terms consistent with the details annexed to the Particular Conditions.

18.1 GENERAL REQUIREMENTS FOR INSURANCES If a policy is required to indemnify joint insured, the cover shall apply separately to each insured as though a separate policy had been issued for each of the joint insured.

18.1 GENERAL REQUIREMENTS FOR INSURANCES If a policy indemnifies additional JOINT INSURED, namely in addition to the insured specified in this Clause; i. The Contractor shall act under the policy on behalf of these additional joint insured except that the Employer shall act for Employer s Personnel;

18.1 GENERAL REQUIREMENTS FOR INSURANCES ii. Additional joint insured shall not be entitled to receive payments directly from the insurer or to have any other direct dealings with the insurer, and; iii. The insuring Party shall require all additional joint insured to comply with the conditions stipulated in the policy.

18.1 GENERAL REQUIREMENTS FOR INSURANCES Each policy insuring against loss or damage shall provide for payments to be made in the currencies required to rectify the loss or damage. Payments received from insurers shall be used for the rectification of the loss or damage.

18.1 GENERAL REQUIREMENTS FOR INSURANCES Neither Party shall make any material alteration to the terms of any insurance without the prior approval of the other Party. If an INSURER MAKES (or attempts to make) any alteration, the Party first notified by the insurer shall promptly give notice to the other Party.

18.2 INSURANCE FOR WORKS AND CONTRACTOR S EQUIPMENT THE INSURING PARTY SHALL INSURE THE WORKS, PLANT, MATERIALS AND CONTRACTOR S DOCUMENTS FOR NOT LESS THAN THE FULL REINSTATEMENT COST INCLUDING THE COSTS OF DEMOLITION, REMOVAL OF DEBRIS AND PROFESSIONAL FEES AND PROFIT.

18.2 INSURANCE FOR WORKS AND CONTRACTOR S EQUIPMENT THIS INSURANCE SHALL BE EFFECTIVE FROM: 1. The date by which the evidence is to be submitted under sub-paragraph (a) of Sub- Clause 18.1 [General Requirements for Insurances], 2. Until the date of issue of the Taking-Over Certificate for the Works.

18.2 INSURANCE FOR WORKS AND CONTRACTOR S EQUIPMENT The insuring Party shall maintain this insurance to provide cover until the date of issue of the Performance Certificate; 1. For loss or damage for which the Contractor is liable arising from a cause occurring prior to the issue of the Taking-Over Certificate, and:

18.2 INSURANCE FOR WORKS AND CONTRACTOR S EQUIPMENT 2. and for loss or damage caused by the Contractor in the course of any other operations (including those under Clause 11 [Defects Liability]).

18.2 INSURANCE FOR WORKS AND CONTRACTOR S EQUIPMENT The insuring Party shall INSURE THE CONTRACTOR S EQUIPMENT for not less than the full replacement value, including delivery to Site. For each item of Contractor s Equipment, the insurance shall be effective while it is being transported to the Site and until it is no longer required as Contractor s Equipment.

18.2 INSURANCE FOR WORKS AND CONTRACTOR S EQUIPMENT If, more than one year after the Base Date, the cover ceases to be available at commercially reasonable terms, the Contractor shall (as insuring Party) give notice to the Employer, with supporting particulars.

18.2 INSURANCE FOR WORKS AND CONTRACTOR S EQUIPMENT The Employer shall then (i) BE ENTITLED - (subject to Sub- Clause 2.5 [Employer s Claims]) to payment of an amount equivalent to such commercially reasonable terms as the Contractor should have expected to have paid for such cover, and

18.2 INSURANCE FOR WORKS AND CONTRACTOR S EQUIPMENT The Employer shall then (ii) Be deemed, unless he obtains the cover at commercially reasonable terms, to have approved the omission under Sub-Clause 18.1 [General Requirements for Insurances].

18.3 INSURANCE AGAINST INJURY TO PERSONS AND DAMAGE TO PROPERTY The insuring Party shall insure against each Party s liability for: 1. Any loss, damage, death or bodily injury which may occur to any physical property (except things insured under Sub- Clause 18.2 [Insurance for Works and Contractor s Equipment])

18.3 INSURANCE AGAINST INJURY TO PERSONS AND DAMAGE TO PROPERTY The insuring Party shall insure against each Party s liability for: 2. Or to any person (except persons insured under Sub-Clause 18.4 [Insurance for Contractor s Personnel]), which may arise out of the Contractor s performance of the Contract and occurring before the issue of the Performance Certificate

18.3 INSURANCE AGAINST INJURY TO PERSONS AND DAMAGE TO PROPERTY This insurance shall be for a limit per occurrence of not less than the amount stated in the Appendix to Tender, WITH NO LIMIT ON THE NUMBER OF OCCURRENCES. If an amount is not stated in the Appendix to Tender, this Sub-Clause shall not apply.

18.4 INSURANCE FOR CONTRACTOR S PERSONNEL The CONTRACTOR shall effect and maintain insurance against liability for claims, damages, losses and expenses (including legal fees and expenses) Arising from INJURY, SICKNESS, DISEASE or DEATH of any person employed by the Contractor or any other of the Contractor s Personnel.

18.4 INSURANCE FOR CONTRACTOR S PERSONNEL The EMPLOYER and the ENGINEER shall also be indemnified under the policy of insurance; Except that this insurance may exclude losses and claims to the extent that they arise from any act or neglect of the Employer or of the Employer s Personnel.

18.4 INSURANCE FOR CONTRACTOR S PERSONNEL The insurance shall be maintained in full force and effect during the whole time that these personnel are assisting in the execution of the Works.

18.4 INSURANCE FOR CONTRACTOR S PERSONNEL For a Subcontractor s employees, the insurance may be effected by the Subcontractor, but the Contractor shall be responsible for compliance with this Clause.