Electronic Equipment Insurance Policy

Whereas the Insured named in the schedule hereto has made to ___________________________________
(hereinafter called “the Insurers”) a written proposal by completing a questionnaire which, together with
any other statements made in writing by the Insured for the purpose of this Policy, is deemed to be
incorporated herein,

Now this Policy of Insurance witnesses that, subject to the Insured having paid to the Insurers the
premium mentioned in the schedule and subject to the terms, exclusions, provisions and conditions
contained herein or endorsed hereon, the Insurers will indemnify the Insured in the manner and to the
extent hereinafter provided.

This Policy applies whether the insured items are at work or at rest, or being dismantled for the purpose of
cleaning, overhauling or of being shifted within the premises, or in the course of the aforesaid operations
themselves, or during subsequent re-erection, but in any case only after successful commissioning.

General Exclusions

The Insurers shall not indemnify the Insured in respect of loss or damage directly or indirectly caused by,
arising out of or aggravated by

a) war, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion,
revolution, insurrection, mutiny, riot, strike, lock-out, civil commotion, military or usurped power, a
group of malicious person or persons acting on behalf of or in connection with any political
organization, conspiracy, confiscation, commandeering, requisition or destruction or damage by order
of any government de jure or de facto or by any public authority;

b) nuclear reaction, nuclear radiation or radioactive contamination;

c) willful act or willful negligence of the Insured or his representatives.

In any action, suit or other proceeding where the Insurers allege that, by reason of the provisions of
Exclusion a) above, any loss, destruction or damage is not covered by this Policy, the burden of proving
that such loss, destruction or damage is covered shall be upon the Insured.
 General Condition
1. The due observance and fulfillment of The Insurers shall on no account be liable for action or suit is not commenced within three
the terms of this Policy, in so far as they relate loss or damage of which no notice has been months after such disclaimer or (in the case of
to anything to be done or complied with by received by the Insurers within 14 days of its arbitration taking place in pursuance of
the Insured, and the truth of the statements occurrence. Upon notification being given to condition 7 of this Policy) within three
and answers in the questionnaire and proposal the Insurers under this condition, the Insured months after the arbitrators or umpire have
made by the Insured shall be a condition may carry out repairs of or make good any made their award, all benefit under this Policy
precedent to any liability of the Insurers. minor damage; in all other cases a in respect of such claim shall be forfeited.
representative of the Insurers shall have the 9. If at the time any claim arises under this
2. The schedule and the section (s) shall be opportunity of inspecting the loss or damage Policy there is any other insurance covering
deemed to be incorporated in and form part of before any repairs or alterations are effected. the same loss or damage, the Insurers shall not
this Policy and the expression “this Policy”, If a representative of the Insurers does not liable to pay or contribute more than their
wherever used in this contract, shall be read as carry out the inspection within a period of rate-able proportion of any claim for such loss
including the schedule and the section (s). time which could be considered adequate or damage.
Any word or expression to which a specific under the circumstances, the Insured shall be 10. This Policy may be terminated at the
meaning has been attached in any part of this entitled to proceed with the repairs or request of the Insured at any time, in which
Policy, of the Schedule or of the section(s) replacement. case the Insurers will retain the customary
shall bear such meaning wherever it may The liability of the Insurers under this Policy short – period rate for the time this Policy has
appear. in respect of any insured item shall cease if been in force. This Policy may equally be
said item is kept in operation after a claim terminated at the option of the Insurers by
3. The Insured shall at his own expense without being repaired to the satisfaction of seven days’ notice to that effect being given
take all reasonable precautions and comply the Insurers, or if temporary repairs are to the Insured, in which case the Insurers will
with all reasonable recommendations of the carried out without the Insures’ consent. be liable to repay on demand a rateable
Insurers to prevent loss or damage and 6. The Insured shall at the expense of the proportion of the premium for the unexpired
comply with statutory requirements and Insurers do and concur in doing and permit to term from the date of cancellation less any
manufacturers’ recommendations. be done all such acts and things as may be reasonable inspection charges the Insurers
necessary or required by the Insures in the may have incurred and less any long-term
4. a) Representatives of the Insurers shall at interest of any rights or remedies, or of discount on premiums granted.
any reasonable time have the right to inspect obtaining relief or indemnity from parties 11. Under an insurance for a third party’s
and examine the risk and the Insured shall (other than those insured under this Policy) to account the Beneficiary shall be entitled to
provide the representatives of the Insurers which the Insurers are or would become exercise, in his own name, the rights of the
with all details and information necessary for entitled or which is or would be subrogated to Insured. Without obtaining the Insured’s
the assessment of the risk. them upon their paying for or making good approval, the Beneficiary shall further have
b. The Insured shall immediately notify the any loss or damage under this Policy, whether the right to receive any indemnity paid under
Insurers by telegram and in writing of any such acts and things are or become necessary this Policy and to transfer the Insured’s rights
material change in the risk and cause at his or required before or after the Insured’s even if the Beneficiary is not in possession of
own expense such additional precautions to be indemnification by the Insurers. this Policy. Upon payment of an indemnity
taken as circumstances may require to ensure 7. If any difference arises as to the amount to the Insurers may require evidence of the
safe operation of the insured items, and the be paid under this Policy (liability being Beneficiary having given his consent to the
scope of cover and/ or premium shall, if otherwise admitted), such difference shall be insurance and of the Insured having given his
necessary, be adjusted accordingly. referred to the decision of an arbitrator to be consent to the receipt of an indemnity by the
No material alteration shall be made or appointed in writing by the parties in Beneficiary.
admitted by the Insured whereby the risk is difference or, if they cannot agree upon a 12. The indemnity shall be payable one month
increased, unless the continuance of the cover single arbitrator, to the decision of two after determination by the Insurers of the full
provided under this Policy is confirmed in arbitrators, one to be appointed in writing by amount due. Notwithstanding the above, the
writing by the Insurers. each of the parties, within one calendar month Insured may, one month after the Insurers
after having been required in writing so to do have been duly notified of the loss and have
5. In the event of any occurrence which by either of the parties, or, in case the acknowledged their liability, claim as an
might give rise to a claim under this Policy, arbitrators do not agree, of an umpire to be installment the minimum amount payable
the Insured shall appointed in writing by the arbitrators before under prevailing circumstances. The running
a) immediately notify the Insurers by he latter enter upon the reference. The umpire of the periods shall be suspended for the time
telephone or telegram as well as in writing, shall sit with the arbitrators and preside at during which the indemnity is unascertainable
giving an indication as to the nature and their meetings. The making of an award shall or not payable due to reasons within the
extent of the loss or damage; be a condition precedent to any right of action Insured’s control.
b) take all steps within his power to minimize against the Insurers. The Insurers shall be entitled to withhold
the extent of the loss or damage; 8. a) If the proposal or declaration of the indemnification.
C) preserve the parts affected and make them Insured is untrue in any material respect, or if a) if there are doubts regarding the Insured’s
available for inspection by a representative or any claim made is fraudulent or substantially right to receive the indemnity, pending receipt
surveyor of the Insurers: exaggerated, or if any false declaration or by the Insurers of the necessary proof;
d) furnish all such information and statement is made in support thereof, then this b) if in connection with the claim an
documentary evidence as the Insurers may Policy shall be void and the Insurers shall not examination by the police or an inquiry under
require: be liable to make any payment hereunder. criminal law has been instituted against the
e ) inform the police authorities in the case of b) In the event of the Insurers disclaiming Insured, pending completion of such
loss or damage due to burglary. liability in respect of any claim and if an examination or inquiry.
 Section 1 – Material Damage

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Scope of Cover The Insurers hereby agree with the Insured that if at any time during the period of
insurance stated in the schedule or during any subsequent period for which the Insured pays
and the Insurers may accept the premium for the renewal of this Policy, the items or any
part thereof entered in the schedule suffer any unforeseen and sudden physical loss or
damage from any cause other than those specifically excluded, in a manner necessitating
repair or replacement, the Insurers will indemnify the Insured in respect of such loss or
damage, as hereinafter provided, by payment in cash, replacement or repair (at the Insurers’
option) up to an amount not exceeding in any one year of insurance in respect of each of
the items specified in the schedule the sum set opposite thereto and not exceeding in all the
total sum expressed in the schedule as insured hereby.

Special Exclusions to Section 1 The Insurers shall not, however, be liable for
a) the deductible stated in schedule to be borne by the Insured in any one occurrence; if
more than one item is lost or damaged in one occurrence, the Insured shall not, however,
be called upon to bear more than the highest single deductible applicable to such items;

b ) loss or damage directly or indirectly caused by or arising out of earthquake, volcanic

eruption, tsunami, hurricane, cyclone or typhoon;

c) loss or damage directly or indirectly caused by theft;

d) loss or damage caused by any faults or defects existing at the time of commencement
of this Policy within the knowledge of the Insured or his representatives, whether such
faults or defects were known to the Insurers or not;

e) loss or damage directly or indirectly caused by the failure or interruption of any gas,
water or electricity service or supply;

f) loss or damage as a direct consequence of the continual influence of operation (e.g.

wear and tear, cavitation, erosion, corrosion, incrustation) or of gradual deterioration
due to atmospheric conditions;

g) any costs incurred in connection with the elimination of functional failures, unless
such failures were caused by an identifiable loss of or damage to the insured items;

h) any costs incurred in connection with the maintenance of the insured items, such
exclusion also applying to parts exchanged in the course of such maintenance
operations;

i) loss or damage for which the manufacturer or supplier of the insured items is
responsible either by law or under contract;

k) loss or damage to rented or hired equipment for which the owner is responsible either by
law or under a lease and/or maintenance agreement;

l) consequential loss or liability of any kind or description;

 m) loss of or damage to bulbs, valves, tubes, ribbons, fuses, seals, belts, wires, chains, rubber
tyres, exchangeable tools, engraved cylinders, objects made of glass, porcelain or ceramics,
sieves or fabrics, or any operating media (e g lubrication oil, fuel, chemicals);

n) aesthetic defects, such as scratches or painted, polished or enameled surfaces.

In respect of the parts mentioned under m) and n) above, the Insurers shall be liable to
provide compensation in the event that such parts are affected by an indemnifiable loss of
or damage to the insured items.

Provisions Applying to Section 1 Memo 1 – Sum insured

It shall be a requirement of this insurance that the sum insured is equal to the cost of
replacement of the insured items by new items of the same kind and capacity, which means
their replacement costs including, e.g., freight, customs duties and dues, if any, and
erection cost. If the sum insured is less than the amount required to be insured, the Insurers
shall pay only in such proportion as the sum insured bears to the amount required to be
insured. Every item if more than one shall be subject to this condition separately.

Memo 2- Basis of Indemnity

a) In cases where damage to an insured item can be repaired, the Insurers shall pay expenses
necessarily incurred to restore the damaged item to its former state of serviceability plus
the cost of dismantling and re-erection incurred for the purpose of effecting the repair as
well as ordinary freight to and from a repair shop, customs duties and dues, if any, to the
extent such expenses have been included in the sum insured. If the repairs are executed at a
workshop owned by the Insured, the Insurers shall pay the cost of materials and wages
incurred for the purpose of the repairs plus a reasonable percentage to cover overhead
charges. No deduction shall be made for depreciation in respect of parts replaced, but the
value of any salvage shall be taken into account.
If the costs of repairs as detailed hereinabove equal or exceed the actual value of the
insured items immediately before the occurrence of the damage, the settlement shall be
made on the basis provided for in b) below.
b) In cases where an insured item is destroyed, the Insurers shall pay the actual value of the
item immediately before he occurrence of the loss, including costs for ordinary freight,
erection, customs duties and dues, if any, to the extent such expenses have been included in
the sum insured, such actual value to be calculated by deducting proper depreciation from
the replacement a value of the item. The Insurers shall also pay any normal charges for the
dismantling of the item destroyed, but the value of any salvage shall be taken into account.
The destroyed item shall no longer be covered under this Policy, and all necessary data on
the relevant substitute item shall be indicated for its inclusion in the schedule.
(The Insurers may agree – by application of the relevant endorsement – to extend this
insurance to cover reimbursement of the full replacement value.)

As from the date of an indemnifiable occurrence the sum insured shall be reduced for the
remaining period of insurance by the amount of indemnity.

Paid, unless the sum insured is reinstated.

Any extra charges incurred for overtime, night work, work on public holidays or express freight shall
be covered by this insurance only if especially agreed in writing.
The costs of any alterations, additions, improvements or overhauls shall not be recoverable under this
Policy.
The costs of any provisional repairs shall be borne by the Insurers if such repairs constitute part of the
final repairs and do not increase the total repair expenses.
The Insurers shall make payments only after being satisfied by production of the necessary bills and
documents that the repairs have been effected or replacement has taken, place as the case may be.
 Section 2 – External Data Media

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Scope of Cover The Insurers hereby agree with the Insured that if the external data media entered in the
schedule inclusive of the information stored thereon, which can be directly processed in
EDP systems, suffer any material damage indemnifiable under Section 1 of this Policy, the
Insurers will indemnify the Insured, as hereinafter provided, in respect of such loss or
damage up to an amount not exceeding in any one year of insurance in respect of each of
the data media specified in the schedule the sum set opposite thereto and not exceeding in
all the total sum insured hereby, provided always that such loss or damage occurs during
the period of insurance stated in the schedule or during any subsequent period for which
the Insured pays and the Insurers may accept the premium of the renewal of this Policy.
This cover applies while the insured data media are kept on the premises.

Special Exclusions to Section 2 The Insurers shall, however, not be liable for

a) the deductible stated in the schedule to be borne by the Insured in any one occurrence;
b) any costs arising from false programming, punching, labeling or inserting, inadvertent
canceling of information or discarding of data media, and from loss of information
caused by magnetic fields;
c) consequential loss of any kind or description whatsoever.

Provisions Applying to Section2 Memo 1 – Sum Insured

It shall be a requirement of this insurance that the sum insured is the amount required for
restoring the insured external data media by replacing lost or damaged data media by new
material and reproducing lost information.

Memo 2 – Basis of Indemnity

The Insurers shall indemnify any expenses that can be proved to have been incurred by the
Insured within a period of 12 months as from the date of the occurrence strictly for the
purpose of restoring the insured external data media to a condition equivalent to that
existing prior to the occurrence and necessary for permitting data processing operations to
be continued in the normal manner.

If it is not necessary to reproduce lost data or information, or if such reproduction is not

effected within 12 months after the occurrence, the Insurers shall only be liable to
indemnify the expenses incurred for replacing the lost or damaged data media themselves
by new material.

As from the date of an indemnifiable occurrence the sum insured shall be reduced for the
remaining period of insurance by the amount of indemnity paid unless the sum insured is
reinstated.
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Section 3 – Increased cost of Working

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Scope of Cover The Insurers hereby agree with the Insured that if material damage indemnifiable under Section 1 of
this Policy gives rise to a total or partial interruption of operation of the EDP equipment entered in
the schedule, the Insurers will indemnify the Insured, as hereinafter provided, for any additional
expenditure incurred for the use of substitute EDP equipment not covered under this Policy up to an
amount not exceeding the agreed indemnification per day and not exceeding in all the sum insured in
any one year of insurance ,provided always that such interruption occurs during the period of
insurance stated in the schedule or during any subsequent period for which the insured pays and the
Insurers may accept the premium for the renewal of this Policy.

Special Exclusions to Section 3 The Insurers shall, however, not be liable for any additional expenditure incurred as a result of
a) restrictions imposed by public authorities concerning the reconstruction or operation
of the EDP equipment insured;
b) the necessary funds not being available to the insured in time for repairing or
replacing damaged or destroyed equipment.

Provisions Applying to Sections 3 Memo 1 – Sum Insured

It shall be a requirement of this insurance that the sum insured stated in the schedule is the amount
which the Insured would have to pay as additional expenditure for 12 months use of substitute EDP
equipment of similar performance to the EDP equipment insured. The sum insured shall be based on
the amounts agreed per day and per month as specified in the schedule.

The Insurers shall also reimburse the Insured for personnel expenses and costs for transportation of
materials following upon any event giving rise to a claim under this section, provided separate sums
therefore have been entered in the schedule.

Memo 2 – Basis of Indemnity

In the event of failure of the EDP equipment insured the Insurers shall be liable for the additional
expenditure that can be proved to have been incurred for the period during which the use of substitute
EDP equipment is essential, but at the most for the indemnity period agreed.

The indemnity period shall commence as soon as the substitute equipment is put into use.

The Insured shall bear that proportion of each claim which corresponds to the time excess agreed.

If it is found following an interruption of the operation of the EDP equipment insured that the
additional expenditure incurred during the period of interruption is higher than the proportionate
share of the annual sum insured which is applicable to this period, the Insurers shall only be liable to
indemnify the Insured in respect of that proportion of the agreed annual sum insured which is
applicable to the period of interruption, duly taking into account the indemnity period agreed.

Any savings in cost shall be taken into account when calculating the indemnity amount to be paid by
the Insurers.

As from the date of an indemnifiable occurrence the sum insured shall be reduced for the remaining
period of insurance by the amount of indemnity paid, unless the sum insured is reinstated. 001001