GENERAL PROVISION

 

Article 1. The Insurance Contract incorporates the Insurance Clauses, Proposal, Policy, Endorsements (if any). Any agreement related to the Insurance Contract shall be in written form.

 

SECTION I -- MATERIAL DAMAGE

 

SUBJECT MATTER INSURED

 

Article 2 The property and costs which are related to the construction contract and situated in the specified worksite, are insured hereby, provided being itemized and listed in the Policy.

 

Article 3 The following property or costs shall not be insured by this Policy, unless otherwise specifically agreed between the Insurer and the Insured and with sum insured stated in this Policy:

 

3.1 Construction plants, machinery and equipments;

 

3.2 The property belonging to the Insured which exists or is formed within or in the vicinity of the worksite before the commencement of the contract works insured;

 

3.3 The property or any part of it which has been put into commercial use or taken over or actually occupied by the Employer or the property or any part of it for which a certificate of completion has been issued or which has been accepted by the representative of the Employer after the Contractor formally proposes works acceptance before the expiry date of this Policy;

 

3.4 Debris removal costs, which means necessary and reasonable costs and/or expenses incurred by the Insured to remove and dispose of debris at the worksite for the purpose of repairing the insured property after an event giving rise to identifiable loss or damage under this Section.

 

Article 4 The following items and articles are not insured by this Policy:

 

4.1 Documents, books, drawings, technical data, computer software, computer data, and other property of which the value could not be appraised;

 

4.2 Portable communication devices, portable computer devices, portable photographic camera equipment and other portable devices or equipment;

 

4.3 Land, seabed, mineral, water, animals, plants, trees and growing crops;

 

4.4 Vehicles, ships or aircraft licensed for general transport use or covered by other insurance;

 

4.5 Illegal or dangerous buildings or structures, or illegally occupied property.

 

SCOPE OF COVER

 

Article 5 Subject to the terms, exclusions, conditions and provisions contained in the Policy or endorsed thereon, the Insurer shall indemnify the Insured for the physical loss of or damage to the property insured (physical loss or damage being hereinafter termed Damage) during the period of insurance within the specified worksite arising from any Natural Hazard or Accident other than those specifically excluded in this Policy.

 

Article 6 Subject to the terms, exclusions, conditions and provisions contained in the Policy or endorsed thereon, the Insurer shall also indemnify the Insured for the following costs and/or expenses incurred in consequence of the Damage caused by event insured by this Policy as stated in Article 5 during the period of insurance:

 

6.1 costs and/or expenses necessarily and reasonably incurred by the Insured for preventing or mitigating the Damage of subject matter insured after an event insured hereby;

 

6.2 other related costs and/or expenses specified in this Policy in respect of the above-mentioned loss or damage.

 

EXCLUSIONS

 

Article 7 The Insurer shall not be liable for:

 

7.1 loss of or damage to property insured and/or any part thereof or any costs and/or expenses resulting from faulty design;

 

7.2 loss of or damage to property insured itself and/or any costs and/or expenses resulting from wear and tear, inherent or latent defect, change in substance, spontaneous combustion, natural heating, oxidation, rust and corrosion, leakage, mice, insects or vermin, change in atmosphere (climatic or temperature) conditions, change in normal water level or any other progressively operating cause;

    

7.3 loss of or damage to the property insured itself due to defective material or bad workmanship and expenses incurred to replace, repair or rectify such fault, defect, error, or omission;

 

7.4 loss of or damage to the mechanical or electrical devices insured themselves unless due to external forces; loss of or damage to the construction plants machinery and equipments or mechanical devices themselves due to breakdown or derangement thereof.

 

Article 8 The Insurer shall not be liable for:

 

8.1 costs and/or expenses incurred for normal maintenance or overhaul;

 

8.2 loss of or damage to files, documents, account books, bills, cash, securities, drawings, data and packing materials;

 

8.3 shortage discovered at the time of taking an inventory;

 

8.4 loss of or damage to vehicles, ships or aircraft licensed for general transport use or having been covered by any other insurance;

 

8.5 unless otherwise agreed, loss of or damage to the property belonging to the Insured which exists or is formed within or in the vicinity of the worksite before the commencement of the contract works;

 

8.6 unless otherwise agreed, loss of or damage to the property insured or any part thereof for which a certificate of completion has been issued or which have been tested and accepted or actually occupied or put into service or taken over by the Employer before the expiry date of this Policy.

 

SUM INSURED AND DEDUCTIBLE

 

Article 9

9.1 The sum insured of this Policy shall not be less than:

 

        9.1.1  For contract works -- the full value exposed at the completion of the contract works including costs and/ expenses of materials, equipments, construction and erection, freight and premium, customs duty, any other taxes and expenses, including any free issue material and equipments which are to be incorporated therein.

 

       9.1.2  For other Items Insured -- the sums agreed upon between the Insured and the Insurer.

 

9.2 If the sum insured is based on the estimated value stated in the construction contract, the Applicant and/or Insured shall:

 

         9.2.1  notify the Insurer in writing as soon as practical if the contract value including all costs and  expenses under this Policy exceeds the original insured contract value due to rise in price or appreciation, and the Insurer shall then adjust the sum insured accordingly;

 

         9.2.2 keep a precise record in writing on the particulars of the contract works concerned during the period of insurance and allow the Insurer to inspect and examine such record at any reasonable time;

 

        9.2.3   declare to the Insurer the actual amount spent in the contract works by the time of declaration as well as updated estimate contract value at an interval of every twelve (12) months from the inception date of this Policy, if the construction period of the insured project is longer than thirty-six (36) months,  the Insurer shall adjust the premium accordingly;

 

        9.2.4   provide the Insurer with the actual final contract value within three (3) months after the expiry date of  the Policy,  and the premium shall be adjusted accordingly.

 

Article 10 The deductible shall be agreed upon between the Applicant and the Insurer when entering into the insurance contract and be specified in  this Policy.

 

 LOSS SETTLEMENT

 

Article 11 The Insurer may, at his own option, indemnify the insured in respect of loss of or damage to the property insured either by way of payment in cash or by way of repair or replacement of the items lost or damaged. Nevertheless the extra costs and/or expenses of any alterations, additions or improvements occurring in the course of repair or replacement carried out by the Insured shall not be recoverable under this Policy.

 

Article 12 In case of any loss or damage recoverable under this Policy, the Insurer shall ascertain the loss amount on the following basis:

 

12.1 In cases where damage which can be repaired, the Insurer shall indemnify the costs incurred necessarily to repair or to restore the damaged property to its nearest condition immediately before the occurrence of loss or damage after deducting the salvage value specified in Article 46. If, however, the costs of repair equal or exceed the actual value of the damaged property immediately before the occurrence of loss or damage, the settlement shall be made on the basis provided for in Article 12.2;

 

12.2 In the event of a total or constructive total loss, the Insurer shall pay the actual value of the insured property immediately before the occurrence of the loss or damage, after deducting the salvage value as reached in Article 46.

 

Article 13 For the loss of or damage to the insured property recoverable under this Policy, the amount of indemnity shall be ascertained on the following basis:

 

13.1 If the sum insured is equivalent  to or higher than the amount required to be insured , the amount of indemnity shall be the actual loss sustained  but in no case shall the maximum liability of the Insurer exceed the amount required to be insured.

 

13.2 If the sum insured is less than the amount required to be insured, the amount of indemnity shall be such a proportion of the actual loss as the sum insured bears to the amount required to be insured, but in no case shall the maximum liability of the Insurer exceed the sum insured.

 

Article 14 The amount of indemnity for any one accident is the amount as reached in Article 13 after deduction of the deductible for any one accident, or the amount as reached in Article 13 after deduction of the amount multiplying the deductible ratio. ［标的损失计算按照保险财产损失前的实际价值扣除残值后的金额赔偿；

 

Any loss of or damage to the property insured arising during any one period of seventy-two (72) consecutive hours, caused by storm, typhoon, flood or other continuous occurrence of natural hazards shall be deemed as a single event and constitute one loss occurrence, deducting the deductible (ratio) for one time in the settlement of any claim. The commencement of any such seventy-two (72) hour period can be decided at the discretion of the Insured. However, there shall be no overlapping in any two or more such seventy-two (72) hour periods in the event of damage occurring over several continuous seventy-two (72) hour periods.

 

Article 15 If the property insured specified in this Policy has more than one item, the Insurer shall calculate the amount of indemnity item by item and the liability of the Insurer in respect of each item shall not exceed its insured amount specified in this Policy nor the limit of indemnity as specified in the Special Provisions or Endorsements where applicable. But in no case shall the maximum liability of the Insurer in respect of material damage under this section exceed the total sum insured specified in this Policy.

 

Article 16 If the sum insured is equivalent to or greater than the amount required to be insured, the Insurer shall pay the Insured in respect of the necessary and reasonable costs and/or expenses incurred for the purpose of preventing or diminishing imminent damage to property insured caused by peril insured against by this Policy, in which case, the amount of such sue and labor expenses shall be calculated separately from the amount of indemnity for the Damage of the property insured, subject to the limit of the amount required to be insured of the rescued property.

 

If the sum insured is less than the amount required to be insured, the payment of the aforementioned sue and labor expenses shall be such proportion of the actual expenses as the sum insured of the rescued property insured bears to its amount required to be insured, and calculated separately from the amount of indemnity for the Damage of the property insured, subject to the limit of the sum insured of the rescued property insured.

 

In the case that uninsured items are included in the rescued property, the Insurer shall only pay for the proportion of the sue and labor expenses as the amount required to be insured for the rescued property insured bears to the total value of the rescued property.

   

Article 17 In the event of a partial loss, upon settlement of the claim by the Insurer, the sum insured of this Policy shall be correspondingly reduced from the date of Damage, and no premium shall be refunded by the Insurer for so reduced. If reinstatement of the sum insured is required by the Applicant upon settlement of the claim, an additional premium for the reinstated amount shall be charged on pro rata daily basis from the date of requirement by the Applicant to the expiry date of this Policy.

 

 

SECTION II -- THIRD PARTY LIABILITY

 

SCOPE OF COVER

 

Article 18 Subject to the terms, exclusions, conditions and provisions contained in the Policy or endorsed thereon, the Insurer shall indemnify the Insured in respect of any sums which the Insured shall become legally liable to pay as damages as a result of

 

18.1 accidental death of or bodily injury to or illness of third parties, or

 

18.2 accidental loss of or damage to property belonging to third parties

 

caused by an accident occurring in direct connection with the performance of the contract works insured and happening on or in the immediate vicinity of the worksite during the period of insurance.

 

Article 19 Subject to the terms, exclusions, conditions and provisions contained in the Policy or endorsed thereon, the Insurer shall also indemnify the Insured in respect of arbitration or litigation costs or other necessary and reasonable costs (hereinafter called Legal Cost), which are payable by the Insured legally or by arbitration arising from an event insured by this Policy subject to prior written consent of the Insurer.

 

EXCLUSIONS

 

Article 20 The Insurer shall not be liable for:

 

20.1 any loss of or damage to any property, land or building caused by vibration or by removal or weakening of support, and bodily injury to any person or material damage to property occasioned by or resulting from any such loss or damage;

 

20.2  any accident caused by vehicles, ships or aircrafts licensed for general transport use;

 

Article 21 The  following shall be excluded from the cover provided by this section:

 

21.1 any loss or damage and expenses covered or required to be covered under Section I of this insurance contract;

 

21.2 death of or bodily injury to or illness of the Employer(s) or the Contractor(s) or any other related party(ies) or their employees or workmen engaged in connection with the contract works on the site, or members of their families.

 

 

21.3 any loss of or damage to property belonging to or held in care, custody or control of the Employer(s) or the Contractor(s) or any other party(ies) concerned or the  employees or workmen of one of the aforesaid

 

21.4 any contractual liability assumed by the Insured, unless such legal liability would have been attached to the Insured in the absent of  such contract.

 

LIMIT OF INDEMNITY AND DEDUCTIBLE

 

Article 22 The Limit of Indemnity includes the limit of indemnity for any one accident, the limit of indemnity for bodily injury per person, the aggregate limit of indemnity, which are  agreed upon between the Applicant and the Insurer and specified in this Policy.

 

Article 23 deductible shall be agreed upon between the Applicant and the Insurer when entering into the insurance contract and be specified in this is Policy.

 

LOSS SETTLEMENT

 

Article 24 The Insurer shall ascertain the amount of indemnity on the following basis:

 

24.1 Negotiations between the Insured and the Claimant, and with prior confirmation of the Insurer;

 

24.2 Arbitrament by the Arbitrator;

 

24.3 Judgement by the People’s Court;

 

24.4 Other means approved by the Insurer.

 

Article 25 For losses identifiable within the period of insurance, the amount of indemnity is calculated on following basis:

 

25.1 For any one accident, the Insurer shall indemnify the Insured up to the limit of indemnity for any one accident, in which the indemnity for bodily injury per person shall not exceed the limit for bodily injury specified in this Policy.

 

25.2.1 The Insurer shall, subject to Article 25.1, indemnify the Insured after deducting the deductible for any one accident specified in this Policy. Nevertheless the deductible is not applicable to liability arising from bodily injury.

 

25.2.2 The Insurer shall, subject to Article 25.1, indemnify the Insured after deducting the amount as calculated by the deductible ratio for any one accident specified in this Policy. Nevertheless the deductible is not applicable to liability arising from bodily injury.

 

25.3 The aggregate amount of indemnity for series of incidents shall not exceed the aggregate limit of indemnity specified in this Policy.

 

Article 26 the Insurer shall indemnify the Insured for legal costs arising from the accident as agreed in this Policy in addition to the amount calculated in accordance with Article 25.

 

Article 27 The Insurer can make payment directly to the third party suffering loss or damage caused by the Insured, subject to relevant laws or regulations, or agreement in this Policy.

 

In case the Insured shall become legally liable to pay as damages to the third party, the Insurer shall, at the claim of the Insured, indemnify the third party directly. The third party is entitled to request the Insurer directly for the indemnity he deserves when the Insured fails to claim in a timely manner. The Insurer shall not make payment to the Insured unless the Insured has indemnified the third party suffering loss or damage caused by the Insured.

 

 

SECTION III -- CONDITIONS APPLICABLE TO ALL SECTIONS

 

EXCLUSIONS

 

Article 28 The Insurer shall not indemnify the Insured in respect of any loss, damage, liability or expenses resulting from or aggravated by:

 

28.1 war, warlike operation, hostilities, armed conflicts, terrorism, conspiracy insurrection, coup d’etat;

 

28.2  governmental or judicial actions；

 

28.3 strike, riot, civil commotion;

 

28.4 willful act or gross negligence of the Insured or his representative;

 

28.5 nuclear fission, nuclear fusion, nuclear weapon, nuclear material, nuclear radiation, nuclear explosion, nuclear contamination and other radioactive contamination;

 

28.6 pollution of any kind including atmosphere, land and water pollutions.

 

Article 29 The Insurer shall not indemnify the Insured in respect of following loss, damage or expenses resulting from or aggravated by:

 

29.1 cessation of work whether total or partial;

 

29.2 consequential loss of any kind or description whatsoever including penalties, losses due to delay or loss of contract;

 

29.3.1 the deductibles stated in this Policy to be borne by the Insured;

 

29.3.2 the deductibles calculated by the deductible ratio stated in this Policy.

 

PERIOD OF INSURANCE

 

Article 30 The period of insurance of this Policy shall follow the agreement stated below:

 

30.1 The liability of the Insurer shall begin notwithstanding any date to the contrary specified in this Policy, directly upon commencement of the physical work or after the unloading of the insured materials or equipments on the worksite and shall expire immediately after a certificate of completion has been issued for part or whole of the insured project or part or whole of the insured project have been tested after completion or actually occupied or put into commercial use or taken over by the Employer, whichever is the earlier. In no case shall the effective date be earlier or the expiry date be later than the period of insurance specified in this Policy.

 

30.2 Notwithstanding anything to the contrary stated in the contract concerned, the Insurer shall be liable only for the loss, damage, expenses and/or liabilities caused by the testing or commissioning occurring during the testing or commissioning period stated in this Policy. In the case of each used or second-hand item of property or equipments insured, the insurance to such items or equipments shall, however, terminate immediately on the commencement of the testing and commissioning.

 

30.3 Any extensions of the period of insurance shall be subject to the prior written consent of the Insurer Otherwise, the Insurer shall not be liable for any loss, damage, expense and/or liabilities after the expiry date of the construction period stated in the Policy.

 

 

OBLIGATIONS OF THE INSURER

 

Article 31. In case of application of standard clauses, the Insurer shall enclose them in the Proposal Form and explain the contents of the insurance contract to the Applicant. For the clauses exempting the Insurer’s liability, the Insurer shall make remarkable notice in the Proposal Form, Policy or other certificates to draw the Applicant’s attention, and explain them clearly in written or oral form when entering into the insurancecontract. Otherwise, such clauses shall be void.

 

Article 32. The Insurer shall issue the Policy or Endorsements in a timely manner after the establishment of an insurance contract.  

 

Article 33. The Insurer’s right to cancel the Policy as stated in Article 37 is void if not exercised by the Insurer within thirty days after his acknowledgement of any causes for cancellation of this Policy. After two years from the establishment of the insurance contract, such right to cancel the Policy is also void and the Insurer shall indemnity the Insured in respect of loss, damage or liability insured by this Policy.

 

If before the establishment of the insurance contract, the Insurer is aware of the Applicant’s misrepresentation or non-disclosure, the Insurer cannot cancel the Policy, and still shall indemnity the Insured in respect of loss, damage or liability insured by this Policy.

 

Article 34. If the Insurer believes that the proofs and documents provided by the Insured, as required in Article 43, are not sufficient, the Insurer shall request the Applicant and/or the Insured to provide additional materials in time and once for all.

 

Article 35. Upon receipt of a claim, the Insurer shall confirm whether the Damage is covered by this Policy or not in a timely manner.  For complicated cases, the Insurer shall make decision within thirty days, unless otherwise stipulated in the insurance contact.

 

The Insurer shall notify the Insured of the decision in a timely manner. If the loss, damage or liability is covered by this Policy, the Insurer shall make payment within ten days after reaching an agreement with the Insured. If the time limit for indemnity is specifically stipulated in the insurance contact, the Insurer shall make payment within such time limit. If the loss, damage or liability is not covered by this Policy, within three days after the decision, the Insurer shall issue a declination letter and explain the reasons to the Insured.

 

Article 36. The Insurer shall allow an advance payment that can be determined by the available proofs or documents if the final settlement amount cannot be determined within sixty days after receipt of such claim and relevant documents, and pay the balance to the Insured after the final amount of indemnity is adjusted.

 

OBLIGATIONS OF THE APPLICANT AND/OR INSURED

 

Article 37. Before entering into an insurance contract, the Applicant shall make full and accurate representation and disclosure at the reques and/or inquiry t of the Insurer in respect of the property insured and the Insured himself and complete the Proposal Form faithfully.

 

If the Applicant fails to fulfill the obligation of making full and accurate representation and disclosure as aforementioned due to his willful act and/or gross negligence, which may affect the Insurer’s decision whether to write  the risk of the insurance and, if so, whether to raise the premium rate, the Insurer is entitled to cancel the Policy.

 

If the Applicant willfully fails to comply with the obligation of making full and accurate representation and disclosure, the Insurer shall not be liable for any loss or damage happening prior to the cancellation of the Policy while no premium shall be refunded.

 

If the Applicant, due to gross negligence, fails to disclose in truth material particular(s) which has significant contribution to the occurrence of the event insured hereby, the Insurer shall not indemnify the Insured for any loss or damage happening prior to the cancellation of this Policy, but shall return premium collected.

 

Article 38. The Applicant shall pay premium as agreed upon in the insurance contract.

 

If the premium is agreed to be paid in a lump, the Applicant shall pay the premium on or before the agreed due date. Otherwise, the Insurer shall not be liable for any loss or damage which occurs prior to premium payment.

 

If the premium is agreed to be paid in installments, the Insurer shall undertake liability in proportion of the paid premium to the total payable premium before the occurrence insured hereby. The payable premium refers to the total premium that the Applicant shall pay as agreed prior to the occurrence.

 

Article 39 The insured shall observe and fulfill the relevant Laws, regulations and requirements on fire, safety and production operations, carefully select workers, comply with all laws and regulations relating to construction and erection, technical procedures and safety rules to protect the security of property insured.

 

The representative of the Insurer shall at any suitable time be entitled to attend the worksite and inspect or examine the risk exposure of the property insured. The Insured shall provide full assistance and all details and information required by the Insurer as may be necessary for the risk assessment. The above mentioned inspection or examination shall in no circumstances be held as any promise to the Insured by the Insurer. The Applicant and the Insured shall implement in a serious manner the written recommendations provided by the Insurer in respect of eliminating risks or dangers.

 

If the Applicant or the Insured fails to comply with due obligations concerning reasonable precautions, the Insurer is entitled to charge additional insurance premium or cancel the Policy.

 

Article 40 Once any property insured is transferred, the Insured or the Assignee shall notify the Insurer in time.

 

If the risk increases materially due to that transfer, the Insurer may charge additional premium or cancel the Policy subject to the terms and conditions of the Policy within thirty days upon the Insurer’s receipt of such notice, in which case, the Insurer shall retain the premium due for the period from inception of the Policy to the date of cancellation, and refund the remainder of the charged premium to the Applicant

 

If the Insured or Assignee fails to comply with the obligation of notification, the Insurer shall not be liable for any loss or damage due to the material increase of risks resulted from such transfer of the property insured.

 

Article 41  During the Period of Insurance, the Insured shall  give the Insurer timely written notice  of the material changes of the  project design, methods, techniques or any other material alteration which materially increases the risks of the insurance and affects the Insurer’s decision whether to continue writing the risk of insurance and, if so, whether to increase the premium, in which case, the Insurer has the right to claim for additional premiums or cancel the Policy. If the Insurer cancels the Policy, the Insurer is entitled to retain the premium due for the period from the date of inception to the date of cancellation and the balance of premium shall be returned to the Applicant.

 

If the Insured fails to comply with the obligation of notification aforementioned, the Insurer shall not be liable for any loss or damage due to the material change.

 

Article 42 If any event giving rise to or likely to give rise to a claim under this Policy comes to his knowledge, the Applicant or the Insured shall:

 

42.1. take all necessary and reasonable measures to prevent or minimize the damage; otherwise the Insurer shall not indemnify the Insured in respect of the extended or aggravated loss or damage caused hereby;

 

42.2. notify the Insurer immediately and submit a written report on the cause, course and extent of the loss or damage. If the Applicant and/or Insured fail to notify the Insurer in time due to his willful act or gross negligence, which makes the Insurer not adjust the nature, cause and extent of the loss, the Insurer shall not indemnify the Insured in respect of the uncertain part, except that the Insurer is aware or ought to be aware of the occurrence timely by other means.

 

42.3. preserve the spot, permit and assist the Insurer to investigate the accident. If the cause of the accident cannot be ascertained or the severity of the damage cannot be verified due to the refusal of or disturbance by the Insured, the Insurer shall not indemnify the Insured in respect of such uncertain part of loss or damage.

 

42.4 report to the Public Security Bureau immediately in the case of loss of or damage to the property insured due to theft or burglary or malicious acts;

 

42.5 immediately notify the Insurer in writing whenever having knowledge of any impending prosecution in connection with any accident for which there may be liability under this Policy and forward to the Insurer every letter writ, summons or process or other court documents on receipt thereof

 

Article 43 To lodge a claim, the Insured should submit to the Insurer the Policy, claims application, Breakdown of loss and damage of property insured, loss report, as well as other relevant evidence and / or documents concerning the nature of the accident, cause and the extent of loss.

 

If the Applicant or Insured fails to comply with their obligation of providing the proofs and documents aforementioned, which makes the Insurer not able to verify the loss or damage, the Insurer shall not indemnify the Insured in respect of the uncertain part of the loss or damage.

 

Article 44 If the discovery of a defect in any property insured indicates or suggests that similar defect exists in other property insured, the Insured shall, at his own expenses, investigate and rectify forthwith the defect in such other property. Otherwise, the Insurer shall not be liable for any loss or damage arising out of the said or similar defect thereof.

 

LOSS SETTLEMENT

 

Article 45 The Insured cannot lodge any claim against the Insurer if he has no Insurable Interest in the property insured at the time of the occurrence hereby insured.

 

Article 46 The property insured still carrying salvage value after loss or damage shall be disposed upon agreement between the Insured and Insurer. If the salvage of the damaged property is retained by the Insured, the salvage value shall be deducted from the actual amount of indemnity 

 

Article 47 If at the occurrence of any event insured hereby, there be any double insurance subsisting, the Insurer shall not pay or contribute more than his rateable proportion of loss or damage as the corresponding sum insured under this Policy bears to the corresponding total sum insured under all these policies.

 

The Insurer shall not advance the amount payable by other insurer(s). If the Insurer has paid more than his share due to the Insured’s non-disclosure, the Insurer is entitled to claim for the portion paid in excess.

 

Article 48 If any third party is held liable for the loss or damage insured against hereby, the Insurer shall be entitled by subrogation to claim for indemnity against such third party from the date of payment subject to the limit of the payment, and the Insured shall provide the Insurer with all the necessary documents and relevant information known to him.

 

If the Insured has already been indemnified by the third party liable for the loss, the Insurer shall deduct the corresponding amount when calculating the amount of indemnity.

 

The Insurer shall not be liable for the loss or damage after the occurrence of insured event, if the Insured waive the right to claim against the third party liable before the Insurer makes payment of indemnity. If the Insured waives the right to claim against the third party liable without the Insurer’s consent after receiving indemnity from the Insurer, such waiver of right is invalid. If the Insurer cannot exercise the right of subrogation due to willful act or gross negligence of the Insured, the Insurer may deduct a corresponding amount when calculating the amount of indemnity or request refund of a corresponding amount  from the indemnity paid to the Insured.

 

Article 49 The limitation of action to claim for indemnity under this Policy shall be two years from the date that the Insured is aware or ought to be aware of the occurrence of loss or damage insured hereby.

.

DISPUTE RESOLUTION AND JURISDICTION

 

Article 50 All disputes arising from implementing this Policy shall be settled through negotiations between the parties concerned. Upon failure to reach an agreement through negotiations, such dispute shall be referred to the arbitration commission specified in the Policy. If there is no arbitration commission specified in the Policy and no agreement reached for arbitration, legal proceeding could be initiated with the People’s Court in People’s Republic of China.

 

Article 51  All disputes shall be governed by the laws of the People’s Republic of China, but except laws of Hong Kong SAR, Macau SAR, and Taiwan.

 

 

MISCELLANEOUS

 

Article 52  In respect of partial loss of the property insured, the Applicant is entitled to cancel the Policy within thirty days from the date that the Insurer fulfils the obligation of payment. This insurance may also be terminated at the option of the Insurer by sending fifteen days’ notice to the effect being given to the Applicant, unless otherwise agreed and stipulated in this Policy.

 

If this Policy is cancelled as aforementioned, the Insurer shall refund to the Applicant the premium of the undamaged proportion of the property insured after deducting the premium that shall be charged from the date of inception to the date of cancellation.

 

Article 53 At the Applicant’s request for cancellation of the insurance contract before the inception of insurance, the Insurer shall charge the Applicant a commission for cancellation as stipulated in the Policy, but shall return the balance of the premium to the Applicant. If the Policy is cancelled at the request of the Insurer, no commission shall be charged and the full premium charged shall be returned to the Applicant.

 

At the Applicant’s request for cancelation of the Policy after inception of insurance, the insurance shall terminate from the date that the Applicant informs the Insurer, and the Insurer shall retain the premium calculated on pro rata daily basis from the inception date of insurance to the date of cancellation, and refund the balance of the premium to the Applicant. This insurance may also be cancelled at the request of the Insurer after inception of insurance by sending fifteen days’ notice to the effect being given to the Applicant, in which case the Insurer shall calculate the premium on pro rata daily basis from the inception date of insurance to the date of cancellation, and refund the balance of premium to the Applicant.  

 

Article 54 In the case that the property insured suffers total loss insured against hereby, the insurance shall terminate upon the Insurer’s fulfillment of indemnity obligation. If the loss is not covered hereby, the Policy shall terminate, and the Insurer shall refund the premium to the Applicant after deducting the short-term premium as calculated pro rata daily from the date of inception to the date of loss.

 

LANGUAGE

 

Article 55   In the event of a discrepancy between the Chinese version and its English translation, the Chinese version shall prevail.

 

DEFINITIONS

 

Article 56 The following definitions shall be applicable to the wording concerned in this Policy.

 

1. Natural hazards: lightning, rainstorm, flood, tempest, cyclone, hailstorm, typhoon, hurricane, sandstorm, snowstorm, ice slush, sudden landslide, avalanche, mud-rock flow, sudden subsidence of ground and any other phenomena of nature with strong destructive power and beyond human control.

 

1.1 Earthquake: the shake the earth's crust makes.

 

1.2 Tsunami: huge ocean waves caused by submarine earthquake, volcanic eruption, underwater landslide or collapse.

 

1.3 Lightning stroke: a disaster caused by lightning. Lightning refers to an electric discharge phenomenon happening in cumulonimbus clouds, between clouds or between clouds and ground. The destructive forms of lightning stroke are divided into direct lightning stroke and inductive lightning stroke. 

 

1.3.1. Direct lightning stroke: loss caused as lightning hits property insured directly, which is covered hereby as direct lightning stroke liability.

 

1.3.2. Inductive lightning stroke: static induction or electromagnetic induction caused by lightning stroke makes indoor metal objects which insulate against ground produce high potential and sparks, thereby leading to fire and damage of electric appliance, or high voltage induction of lightning results in damage of electric appliance, which is insured hereby as inductive lightning stroke liability.

 

1.4 Rainstorm: rainfall with precipitation of more than 16mm per hour, or more than 30mm within 12 consecutive hours, or more than 50mm within 24 consecutive hours.

 

1.5 Flood: flash flood, flooding of rivers, tide landing and backflow. The following are not flood risks: regular flood tide, water leakage of automatic sprinkler system, underground water seepage and water pipe burst.

 

1.6 Tempest: natural wind with force over Beaufort Force 8 and speed more than 17.2 m/s.

 

1.7 Tornado: a violent whirlwind within small range and in short time, with average maximum land speed from 79m/s to 103m/s, and extreme maximum speed more than 100m/s.

 

1.8 Hailstone: ice block or ice ball of a diameter over falling to the ground from severe convective cumulonimbus clouds, whose diameter is greater than 5mm and core is hard. 

 

1.9  Typhoon and hurricane. Typhoon is a tropical cyclone with the maximum average force near the center reaching or exceeding Beaufort Force 12, namely  tropical cyclone at speed of more than 32.6m/s. Hurricane is a of the same nature as typhoon but positioned differently areas as the Indian and Atlantic Ocean for hurricane while northwestern Pacific Ocean for typhoon.

 

1.10 Sand storm: a weather phenomenon that strong wind blows up large quantities of dust and sand on the ground making air dirty and horizontal visibility less than one kilometer.

 

1.11  Snowstorm: snowfall equal to or greater than 10mm in 12 consecutive hours.

 

1.12  Ice slush: a phenomenon that during spring break, the floating of ice blocks is obstructed and ice blocks accumulate resulting in river channel blockage and sharp rise of water level, river water overflows from river channel and spreads all around to cause damage.

 

It is also ice slush risk covered against in this insurance that in mountain, valley or other overland area, ice block formed by rain or snow gets heavier and drops and damage is so made.

 

1.13  Sudden landslide: a phenomenon that unstable soil bodies or man-made deposits on slopes slide down suddenly and integrally under the action of gravity.

 

1.14  Avalanche: a phenomenon that rock cliffs, soil cliffs and rocks crumble and collapse due to natural weathering and rain erosion and a great deal snow collapses and tumbles down from on high suddenly under the action of gravity. 

 

1.15  Mud-rock flow: a special torrent containing large quantities of sand and stones, excited by rainwater and water produced by ice and snow melting. 

 

1.16 Sudden subsidence of ground: a phenomenon that the earth's crust subsides suddenly resulting from natural variation and stratigraphic contraction. It can also be that the ground subsides suddenly due to erosion of tide water, river or heavy rain, or due to cavities or pockets about which the contractor has no such stratigraphic knowledge before construction. However, foundation subsidence, crack and collapse, etc, caused by not meeting the requirements of construction are not sudden subsidence of ground. 

 

2  Accident: unforeseen, uncontrollable and sudden event which leads to material damage, which includes fire and explosion.

 

2.1  Fire: fire is a disaster caused by combustion out of control in time or space. The Insurer shall not be liable for the peril of fire unless the following three conditions are met together:

 

2.1.1. Combustion produces heat, light and flame;

 

2.1.2. Combustion is occasional and unexpected;

 

2.1.3. Combustion goes beyond control and tends to spread and expand.

 

Combustion itself is not “fire” insured in this Policy. Purposive burning in manufacture or daily life is not insured against, such as burning down contaminated clothes for epidemic prevention or burning the grass on waste land by fire, etc.

 

The loss caused by baking, roasting or ironing is not insured as there is neither combustion nor spreading or expanding tendency.

 

The damage to electric motors, appliances and equipment caused by overuse, overvoltage, swinging cross, flash, leakage and self-heating is not “fire” insured. However, if combustion happens, spreads beyond control, fire insured comes into existence and the Insurer shall then be liable t for the losses of electric motors, appliances and equipment.

 

2.2  Explosion: explosion includes physical explosion and chemical explosion.

 

2.2.1. Physical explosion. Physical explosion happens when the container cannot bear the sharply rising pressure when the liquid inside changes into steam or gas. Some examples are boiler explosion, air compressor explosion, compressed gas cylinder explosion and liquid gas storage tank explosion, etc. Boiler or pressure vessel explosion is an accident that during use or pressure test, a boiler or pressure vessel bursts making its internal pressure to instantly drops to external air pressure, i.e. explosion accident.

 

2.2.2. Chemical explosion. Chemical explosion happens when plenty of heat and gas are released and expands with great pressure when things decompose or burns momentarily. Some examples are gunpowder explosion, flammable dust and fiber explosion, flammable gas explosion and explosion of various chemicals, etc.

 

Losses caused by inherent vice, latent defect, wear and tear, inferior quality, or negative pressure inside container are not insured under this coverage.

 

3. The amount required to be insured: the amount required to be insured is the amount insured reached by Article 9.1 and 9.2 of this insurance contract.

中国人民财产保险股份有限公司上海市浦东支公司

业务员：罗海芬

电话：021-58354321-2828

手机：13817781268

传真：58355419

地址：上海市浦东南路1085号华申大厦8003室