 5879 011-5-157573 Fax: 011-5-157690 Addis Ababa, Ethiopia

Contractors’ All Risks Policy No. 0011/0912/CAR/MNAB

Name of Insured: - M/S TIDHAR EXCAVATION AND EARTH MOVING LTD

Whereas the insured name in the schedule hereto has made to the Abay Insurance S.C.
(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.
General Exclusions
The Insurers will not indemnify the insured in respect of loss, damage or liability directly or
indirectly caused by or 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, lockout, civil commotion,
military or usurped power, a group of malicious persons 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 of his representatives;
d) Cessation of work whether total or partial.
In any action, suit or other proceeding where the Insurers allege that by reason of the
provisions of Exclusion a) above any loss, destruction, damage or liability is not covered by
this Insurance the burden of proving that such loss, destruction, damage or liability is
covered shall be upon the Insured.

Period of Cover
The liability of the insurers shall commence, notwithstanding any date to the contrary
specified in the schedule, directly upon commencement of work or after the unloading of the
items entered in the Schedule at the site. The Insurers liability expires for parts of the
insured contract works taken over or put into service.
At the latest the insurance shall expire on the date specified in the Schedule. Any
extensions of the period of insurance are subject to the prior written consent of the insurers.

General Conditions
1. The due observance and fulfillment of the terms of this policy in so far as they relate to
anything to be done or complied with by the insured and the truth of the statements and
answers in the questionnaire and proposal made by the insured shall be a condition
precedent to any liability of the insurers.
2. The schedule and the Section(s) shall be deemed to be incorporated in and form part of
this policy and the expression” this policy” wherever used in this contract shall be read

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 as including the Schedule and the Section(s). Any word or expression to which a
specific meaning has been attached in any part of this policy or of the schedule or of the
section(s) shall bear such meaning wherever it may appear.
3. The Insured shall at his own expense take all reasonable precautions and comply with
all reasonable recommendations of the Insurers to prevent loss, damage or liability and
comply with statutory requirements and manufacturers recommendations.
4. a) Representatives of the insurers shall at any reasonable time have the right to
inspect
and examine the risk and the insured shall provide the representatives of the insurers
with all details and information necessary for the assessment of the risk.
b) The insured shall immediately notify the insurers by telegram and in writing of any
material change in the risk and cause at his own expense such additional
precautions to be take as circumstance may require, and the scope of cover and/or
premium shall, if necessary, be adjusted accordingly. No material alteration shall be
made or admitted by the Insured whereby the risk is increased, unless the
continuance of the insurance is confirmed in writing by the insurers.
5. In the event of any occurrence which might give rise to claim under this policy, the
insured shall:
a) Immediately notify the insurers by telephone or telegram as well as in writing, giving
an indication as to the nature and extent of loss or damage;
b) Take all steps within his power to minimize the extent of the loss or damage.
c) Preserve the parts affected and make them available for inspection by a
representative or surveyor of the Insurers;
d) Furnish all such information and documentary evidence as the Insurers may require;
e) Inform the police authorities in case of loss or damage due to theft or burglary.
The insurers shall not in any case be liable for loss, damage or liability of which no
notice has been received by the insurers within 14 days of its occurrence.
Upon notification being given to the Insurers under this condition, the Insured may carry
out the repairs or replacement of any minor damage; in all other cases a representative
of the Insurers shall have the opportunity of inspecting the loss or damage before any
repairs or alterations are effected. If a representative of the Insurers does not carry out
the inspection within a period of time which could be considered adequate under the
circumstances, the Inured is entitled to proceed with the repair or replacement.
The liability of the Insurers under this Policy in respect of any item sustaining damage
shall cease if said item is not repaired properly without delay.
6. The insured shall at the expense of the Insurers do and concur in doing and permit to be
done all such acts and things as may be necessary or required by the insurers in the
interest of any right or remedies, or of obtaining relief or indemnity from parties (other
than those insured under this policy) to which the insurers are or would become entitled
or which is or would be subrogated to them upon their paying for or making good any
loss or damage under this policy, whether such acts and things are or become
necessary or required before or after the insured’s indemnification by the insurers.
7. If any difference arises as to the amount to be paid under this policy (liability being
otherwise admitted), such difference shall be referred to the decision of an arbitrator to
be appointed in writing by the parties in difference or, if they cannot agree upon a single
arbitrator, to the decision of two arbitrators, one to be appointed in writing by each of the
parties within one calendar month after having been required in writing so to do by either
of the parties, or, in case the arbitrators do not agree, of an umpire to be appointed in
writing by the arbitrators before the letter enter upon the reference. The umpire shall sit

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 with the arbitrators and preside at their meetings. The making of an award shall be a
condition precedent to any right of action against the insurers.
8. If a claim is in any respect fraudulent, or if any false declaration is made or used in
support thereof, or if any fraudulent means or devices are used by the insured or any
one acting on his behalf of obtain any benefit under this policy, or if a claim is made and
rejected and no action or suit is commenced within three months after such rejection or,
in the case of arbitration taking place as provided herein, within three months after the
arbitrator or arbitrators or umpire have made their award, all benefit under this policy
shall be forfeited.
9. If at the time any claim arises under the policy there is any other insurance covering the
same loss, damage or liability, the insurers shall not be liable to pay or contribute more
than their rate able proportion of any claim for such loss, damage or liability.

Section 1. Material Damage

The Insurers hereby agree with the Insured that if at any time during the period of cover the
items or any part thereof entered in the Schedule shall 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 their own option) up to an amount not exceeding in respect of each of the items
specified in the schedule the sum set opposite thereto and not exceeding in any one event
the limit of indemnity where applicable and not exceeding in all the total sum expressed in
the schedule as insured hereby.
The Insurers will also reimburse the Insured for the cost of clearance of debris following
upon any event giving rise to a claim under this policy provided a separate sum therefore
has been entered in the schedule.
Special exclusions to section 1.
The Insurers shall not, however, be liable for
a) The deductible stated in the schedule to be borne by the insured in any one
occurrence;
b) Consequential loss of any kind or description whatsoever including penalties, losses
due to delay, lack of performance, loss of contract;
c) Loss or damage due to fault design;
d) The cost of replacement, repair or rectification of defective material and/or
workmanship, but this exclusion shall be limited to the items immediately affected
and shall not be deemed to exclude loss of or damage to correctly executed items
resulting from an accident due to such defective material and/or workmanship.
e) Wear and tear, corrosion, oxidation, deterioration due to lack of use and normal
atmospheric conditions;
f) Loss or damage to construction plant, equipment and construction machinery due to
electrical or mechanical breakdown, failure, breakage or derangement, freezing of
coolant or other fluid, defective lubrication or lack of oil or coolant, but if as a
consequence of such breakdown or derangement an accident occurs casing external
damage, such consequential damage shall be indemnifiable;
g) Loss of or damage to vehicles licensed for general road use or waterborne vessels or aircraft;
h) Loss of or damage to files, drawings, accounts, bills, currency, stamps, deeds,
evidences of debt, notes, securities, cheques;
i) Loss or damage discovered only at the time of taking an inventory.
Provisions applying to section 1

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Memo 1. Sums insured
It is a requirement of this insurance that the sums insured stated in the Schedule shall not
be less than:-
For Item 1:- The full value of the contract works at the completion of the construction,
inclusive of all materials, wages, freight, customs duties, dues, and materials or items
supplied by the Principal;
For Item 2 & 3:- The replacement value of construction plant, equipment and machinery;
which shall mean the cost of replacement of the insured items by new items of the same
kind and capacity;
And the Insured undertakes to increase or decrease the amounts of insurance in the event
of any material fluctuation in wages or prices provided always that such increase or
decrease shall take effect only after the same has been recorded in the policy by the
insurers.
If, in the event of loss or damage, it is found that the sums insured are less than the
amounts required to be insured, then the amount recoverable by the insured under this
policy shall be reduced in such proportion as the sums insured bear to the amounts
required to be insured. Every object and cost item is subject to this condition separately.

Memo 2- Basis of Loss settlement

In the event of any loss or damage the basis of any settlement under this policy shall be
a) In the case of damage which can be repaired- the cost of repair necessary to restore
the items to their condition immediately before the occurrence of the damage less
salvage, or
b) In the case of a total loss- the actual value of the items immediately before the
occurrence of the loss less salvage,
However, only to the extent the cost claimed had to be borne by the insured and to the
extent they are included in the sums insured and provided always that the provisions and
conditions have been complied with.
The insurers will 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. All damage which can be repaired shall be repaired, but if the cost of
repairing any damage equals or exceeds the value of the items immediately before the
occurrence of the damage, the settlement shall be made on the basis provided for in b)
above.
The cost of any provisional repairs will be borne by the Insurers if such repairs constitute
part of the final repairs and do not increase the total repair expenses.
The cost of any alterations, additions and/or improvements shall not be recoverable under
this policy.
Memo 3- Extension of cover
Extra charges for overtime, night work, work on public holidays, express freight are covered
by this insurance only if previously and specially agreed upon in writing.

Section 2-Third Party liability

The Insurers will indemnify the insured up to but not exceeding the amounts specified in the
Schedule against such sums which the Insured shall become legally liable to pay as
damages consequent upon.
a) Accidental bodily injury to or illness of third parties (Whether fatal or not),

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 b) Accidental loss of damage to property belonging to third parties

Occurring in direct connection with the construction or erection of the items insured under
Section 1 and happening on or in the immediate vicinity of he site during the period of
cover.
In respect of a claim for compensation to which the indemnity provided herein applies, the
Insurers will in addition indemnify the Insured against
a) All costs and expenses of litigation recovered by any claimant from the insured, and
b) All costs and expenses incurred with the written consent of the Insurers,
Provided always that the liability of the Insurers under this Section shall not exceed the
limits of indemnity stated in the schedule.

Special exclusions to Section 2

The Insurers will not indemnify the insured in respect of
1. The deductible stated in the schedule to be borne by the insured in any one
occurrence;
2. The expenditure incurred in doing or redoing or making good or repairing or
replacing anything covered or coverable under section 1 of this policy;
3. Damage to any property or land or building caused by vibration or by the removal or
weakening of support or injury or damage to any person or property occasioned by
or resulting from any such damage (unless especially agreed upon by endorsement);
4. Liability consequent upon
a) Bodily injury to or illness of employees or workmen of the contractor(s) or the
principals(s) or any other firm connected with the project which or parts of which is
insured under Section 1, or members of their families;
b) Loss of or damage to property belonging to or held in care, custody or control of the
contractor(s), the principal(s) or any other firm connected with the project which or
part of which is insured under section 1, or an employee or workman of one of the
aforesaid;
c) Any accident caused by vehicles licensed for general road use or by waterborne
vessels or aircraft;
d) Any agreement by the insured to pay sum by way of indemnity or otherwise unless
such liability would have attached also in the absence of such agreement.

Special conditions applying to Section 2

1. No admission, offer, promise, payment or indemnity shall be made or given by or on
behalf of the insured without the written consent of the insurers who shall be entitled,
if they so desire, to take over and conduct in the name of the insured the defense or
settlement of any claim or to prosecute for their own benefit in the name of the
insured any claim for indemnity or damages or otherwise and shall have full
discretion in the conduct of any proceedings or in the settlement of any claim and the
insured shall give all such information and assistances as the insurers may require.
2. The insurers may so far as any accident is concerned pay to the insured the limit of
indemnity for any one accident (but deducting there from in such case any sum or
sums already paid as compensation in respect thereof) or any lesser sum for which
the claim or claims arising from such accident can be settled and the insurers shall
thereafter be under no further liability in respect of such accident under this section.

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 CONTRACTORS ALL RISK INSURANCE POLICY SCHEDULE

Insured Name: M/S TIDHAR EXCAVATION AND EARTH MOVING LTD

Address: Addis Ababa, P.O.Box 9206

Policy Number: 0011/0912/CAR/MNAB

Title of Contract: ABUNE PETROS SQUARE-PASTOUR-SANSUSI RIVER BRIDGE KM 0+000

TO KM 2+800 OF PACKAGE 3 URBAN STREET ROAD UPGRADING PROJECT
Insured Items Sum Insured (Birr)
Section I 1. Contract Works (Permanent and temporary Birr 144,440,764.43
Material Damage works, including all materials) N.A
2. Construction Plant and equipment N.A
3. Construction Machinery N.A
4. Clearance of debris N.A
5. Additional Costs (Rectification of N.A
Loss/Damage including professional Fees,
Costs of Demolishing and removing Any
part of the works)

Total Sum Insured under Section 1 Birr 144,440,764.43

Risk 1. Limit of indemnity (Br.)
Storm, Cyclone, flood inundation and
landslidemits 144,440,764.43
Third party bodily injury limits of indemnity? 500,000.00/OCCURANCE
50,000.00/PERSON

1. Limit of indemnity in respect of each/ and every loss of damage

and/or series of losses arising out of any one event.

Insured Item 2. Limit of indemnity in Br.

Section II Third Combined
Third Party Birr 50,000.00 per person
Party Liability Birr 500,000.00 during policy period)
Property Damage Birr 500,000.00
2. Limit of indemnity in respect of any one accident or series of accidents
arising out of any one event.

Deductible: Birr 10,000.00 Third Party Claims

Birr 300,000.00
300,000.00 for Acts of God
Birr 100,000.00 All other Claims

Period of Insurance: 02/08/2011 To 01/04/2012.

Premium (ETB)
9,257.83
5.00
9,262.83
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CONTRACTOR’S ALL RISK INSURANCE POLICY SCHEDULE

Macro General Contractor & Trading PLC & Ethiopian Roads Authority
Period of Insurance: 240 Days effective from 03/03/2011 plus 12 months extended
maintenance period .

The following endorsements are attached to and made part of this policy
1. End 001 - Strike , Riot, civil commotion
2. End 002 - Cover for Cross Liability
3. End 004 - Extended maintenance Liability cover
4. End 005 - Construction and/or erection time schedule
5. End 006 - Over time night work, work on public holidays and express freight
6. End 007 - Air freight
7. End 013 - Property in off-site storage
8. End 014 - Exclusion of loss to
9. End 102 – Special conditions concerning underground cables, Pipes and other facilities
10. End 103 – Exclusion of Loss to corps, forests and cultures.
11. End 105 – Existing structures and/or surrounding property
12. End 106 – Warranty concerning sections
13. End 107 – Warranty concerning camps and stores
14. End 109 – Warranty concerning Construction material
15. End 110 – Safety measures with precipitation flood and inundation
16. End 111 – Removal of debts
17. End 112 – Fire-Fighting facilities and fire on construction sites
18. End 113 – Inland Transit Cover
19. End 115 –Cover for Designer’s risk
20. End 116 – Contract works taken over or put in to service
21. End 120 - Vibration Removal or weakening of support
22. Market standard exclusions, including but not limited to
War, Civil war political Risk and Terrorism exclusion clause
Nuclear Energy Risks Exclusion Clauses (1994) NMA 1975
Terrorism Exclusion Clause for Contamination and Explosive
Radioactive Exclusion clause
Asbestos Exclusion
Electronic Date Recognition clause EDRC(B)
Clarification agreement
Theft clause
Watchmen Warranty
Sixty days premium Warranty
Other warranties and annexes (See at the end)

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Endorsement 001-Cover for Loss or Damage due to strike, Riot and Civil Commotion
(SRCC)
It is agreed and understood that otherwise subject to the terms, exclusions, provisions and
conditions contained in the Policy or endorsed thereon and subject to the Insured having
paid the agreed extra premium, this policy shall be extended to cover loss or damage due to
strike, riot and civil commotion which for the purpose of this Endorsement shall mean
(Subject always to the Special Conditions hereinafter contained) loss of or damage to the
property insured directly caused by:
 The act of any person taking part together with others in any disturbance of the
public peace (whether in connection with a strike or lock-out or not) not being an
occurrence mentioned in condition 2 of the Special Conditions hereof,
 The action of any lawfully constituted authority in suppressing or attempting to
suppress any such disturbance or in minimizing the consequences of any such
disturbance,
 The willful act of any striker or locked out worker performed in furtherance of a strike
or in resistance to a lock-out,
 The action of any lawfully constituted authority in preventing or attempting to prevent
any such act or in minimizing the consequences of any such act.
Provided that it is hereby further expressly agreed and declared that all the terms,
exclusions, provisions and conditions of the Policy shall apply in all respects to the
insurance granted by this extension save In so far as the same are expressly varied by the
following special conditions, and any reference to loss or damage in the wording of the
Policy shall be deemed to include the perils hereby insured against, the following Special
conditions shall apply only to the insurance granted by this extension, and the wording of
the policy shall apply in all respects to the insurance granted by the policy as if this
Endorsement had not been made thereon.

Special Conditions
This insurance shall not cover
 Loss or damage resulting from total or partial cessation of work or the retarding,
interruption or cessation of any process or operation,
 Loss or damage occasioned by permanent or temporary dispossession resulting from
confiscation commandeering or requisition by any lawfully constituted authority.
 Loss or damage occasioned by permanent or temporary dispossession of any building
resulting from the unlawful occupation by any person of such building,
 Consequential loss or liability of any kind or description, any payments over and above
the indemnity for the material damage as provided herein.
Provided nevertheless that the insurers are not relived under b or c above of any liability to
the Insured in respect of physical damage to the property insured occurring before
dispossession or during temporary dispossession. This insurance shall not cover any loss
or damage occasioned by or through or in consequence, directly or indirectly, of any of the
following occurrences, namely
 War, invasion, act of foreign enemy, hostilities or war like operations (Whether war be
declared or not), civil war.
 Mutiny, civil commotion assuming the proportion of or amounting to a popular rising,
military rising, insurrection rebellion, revolution, military or usurped power,
 Any act of any person acting on behalf of or in connection with any organization with
activities directed toward the overthrow by force of the government de jure or de factor
or to the influencing of it by terrorism or violence.

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In any action, suit or other proceeding, where the insurers allege that by reason of the
provisions of this condition any loss or damage is not covered by this insurance, the burden
of proving that such loss or damage is covered shall be upon the insured.
This insurance may at any time be terminated by the insurers on notice to that effect being
given by registered post at the inured’s last known address, in which case the insurers shall
be liable to repay a retable proportion of the premium for the unexpired term from the date
of termination.
The limit of indemnity any one occurrence as stated below shall be understood to limit the
indemnity for all loss or damage covered by this Endorsement during a consecutive period
of 168 hours.
The aggregate liability of the Insurers during the period of cover of this policy shall be
limited by twice the limit of indemnity any one occurrence.
Limit of indemnity: any one occurrence: 20% of Total Sum Insured
Deductible: any one occurrence: Birr 300,000.00
Extra Premium: include in the basic cover

Endorsement 002-Cover for Cross Liability

It is agreed and understood that otherwise subject to the term, exclusions, provisions and
conditions contained in the Policy or endorsed thereon and subject to the insured having
paid the agreed extra premium, the Third party Liability cover of the policy shall apply to the
insured parties named in the schedule as if a separate policy had been issued to each
party, provided that the Insurers shall not indemnify the insured under this Endorsement in
respect of liability for
 Loss of or damage to items insured or insurable under section I of the policy, even if not
recoverable due to an excess or any limit,
 Fatal or non – Fatal injury or illness of employees or workmen who are or could have
been insured under workmen’s compensation and/or employer’s liability insurance.
The Insurers total liability in respect of the insured parties shall not however exceed in the
aggregate for any one accident or series of accidents arising out of one event the limit of
indemnity stated in the schedule.
Extra premium: Included in the basic cover
Endorsement : 004-Extended maintenance cover
It is agreed and understood that otherwise subject to the terms, exclusions, provisions and
conditions contained in the policy or endorsed thereon and subject to the insured having
paid the agreed extra premium, this insurance shall be extended for the maintenance period
specified hereunder to cover loss of or damage to the contract works.
 Caused by the insured contractor(s) in the course of the operations carried out for the
purpose of complying with the obligations under the maintenance provisions of the
contract,
 Occurring during the maintenance period provided such loss or damage was caused on
the site during the construction period before the certificate of completion for the lost or
damaged section was Isured.
Maintenance period: 12 months from project completion date
Extra premium: Included in the basic cover

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Endorsement 005: Special conditions concerning the construction and /or erection
time schedule.
It is agreed and understood that otherwise subject to the terms, exclusions, provisions and
conditions contained in the policy or endorsed thereon, the following shall apply to this
insurance:
The construction and/or erection time schedule together with any other statements made in
writing by the insured for the purpose of obtaining cover under the policy as well as
technical information forwarded to the insurers shall be deemed to be incorporated herein.
The insurers shall not indemnify the Insured in respect of loss or damage caused by or
arising out of or aggravated by deviations from the construction and/or erection time
schedule exceeding the number of weeks stated below unless the Insurers had agreed in
writing to such a deviation before the loss occurred.
Deviation from time schedule:8 weeks

Endorsement 006: cover of extra charges for overtime, night work, work on public
holidays, express freight
It is agreed and understood that otherwise subject to the terms, exclusions, provisions and
conditions contained in the policy or endorsed thereon and subject to the Insured having
paid the agreed extra premium , this insurance shall be extended to cover extra charges for
overtime, night work, work on public holidays and express freight (excluding airfreight),
provided always that such extra charges shall be incurred in connection with any loss of or
damage to the insured items recoverable under the policy.
If the sum(s) insured of the damaged item(s) is (are) less than the amount(s) required to be
insured, the amount payable under this Endorsement for such extra charges shall be
reduced in the same proportion.
Maximum amount payable: Birr 1,000,000.00
Deductible: 20% of the indemnifiable extra charges, minimum Birr 100,000.00 any one occurrence
Extra Premium: included in the basic cover

Endorsement 007 – Cover of extra charges for airfreight

It is agreed and understood that otherwise subject to the terms, exclusions, provision and
conditions contained in the Policy or endorsed thereon and subject to the Insured having
paid the agreed extra premium, this insurance shall be extended to cover extra charges for
airfreight.
Provided always that such extra charges shall be incurred in connection with an loss of or
damage to the insured items recoverable under the policy. Provided further that the
maximum amount payable under this endorsement in respect of airfreight shall not exceed
the amount stated below during the period of insurance.
Maximum amount payable: Birr 1,000,000.00
Deductible: 20% of the indmnifiable extra charges, minimum Birr 100,000.00 any one occurrence
Extra premium: Included in the basic cover

Endorsement 013- property in off-Site Storage

It is agreed and understood that, notwithstanding the terms, exclusions, provisions and
conditions of the policy or any Endorsements agreed upon and subject to the Insured
having paid the agreed extra premium.

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Section I of the policy shall be extended to cover loss of or damage to property insured
(except property being manufactured, processed or stored at the manufacturer’s distributors
or supplier’s premises) in offsite storage within the territorial limits as stated below.
The Insurers will not indemnify the Insured for loss or damage caused by the neglect of
generally accepted loss prevention measures for warehouses or storage units. Such
measures include, in particular:
 Ensuring that the storage area is enclosed (Either a building or at least fenced in),
guarded, protected against fire, as appropriate for the particular location or type of
property stored:
 Separating the storage units by fire-proof walls or by a distance of at least 50 meters;
 Positioning and designing the storage units in such a way as to prevent damage by
accumulating water or flooding due to rainfall or by a flood with a statistical return
period of less than 20 years;
Limiting the value per storage unit.
Territorial limits if : Afar Regional State
Maximum value per storage Unit: Birr 1,000,000.00
Limit of indemnity (any one occurrence): 500,000.00
Deductible: 20% of loss amount minimum Birr 150,000 any one occurrence
Extra premium: Included in the basic cover

Endorsement 014-Exclusion of Loss, Damage or Liability due to Terrorism

It is agreed and understood that, notwithstanding the term, exclusions, provisions and
conditions contained in the policy or endorsed thereon, the insurer shall not indemnify the
insured for loss or damage or liability directly or indirectly caused by or resulting from any
act of terrorism.
For the purpose of this endorsement an act of terrorism means an act, including but not
limited to the use of force or violence and or the threat thereof, of any person or group(s) of
persons, whether acting alone or on behalf of or in connection with any organization(s) or
government(s) committed for political, religious, ideological, or ethnic purposes or reasons
including the intention to influence any government and/or to put the public, or any section
of the public, in fear.
This endorsement also excludes loss, damage, cost or expense of whatsoever nature
directly or indirectly caused by or resulting from any action taken in controlling, preventing,
suppressing or in any way relating to any act of terrorism.
In any action, suit or other proceeding where the Insurers allege that by reason of the
provisions of this endorsement any loss, destruction, damage or liability is not covered by
this insurance the burden of proving that such loss, destruction, damage or liability is
covered shall be upon the insured.
Endorsement 102- Special conditions concerning underground cables, pipes
and other facilities
It is agreed and understood that otherwise subject to the terms, exclusions, provisions and
conditions contained in the Policy or endorsed thereon, the Insurers shall only indemnify the
Insured in respect of loss of or damage to existing underground cables and/or pipes or other
underground facilities if, prior to the commencement of works, the Insured has inquired with
the relevant authorities about the exact position of such cables, pipes or other underground
facilities and takes all necessary steps to avoid damage to same.

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Claims in respect of loss of or damage to such underground facilities which are in the same
position as shown on the underground maps (drawings indicating the position of the
underground facilities) shall be payable after applying a deductible of 20% of the loss
amount or the deductible stated under (a) below, whichever is the greater.
Claims in respect of loss of or damage to underground facilities incorrectly shown on the
underground map shall be payable after applying the deductible stated under (b) below.
The indemnity shall in any case be restricted to the repair costs of such cables, pipes or
other underground facilities, any consequential damage and penalties being excluded from
the cover.
Deductibles (a) 20% of the loss amount, minimum Birr 20,000.00 any one occurrence
Deductibles: (b) 20% of the loss amount, minimum Birr 30,000.00 any occurrence

Endorsement 103-Exclusion of loss of or damage to crops, forests and cultures

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and
conditions contained in the policy or endorsed thereon, the Insurers shall not indemnify the
Insured for loss, damage or liability directly or indirectly caused to crops, forests and/or any
cultures during the execution of the contract works.

Endorsement105- Cover the Existing structure and/or surrounding property

It is agreed and understood that otherwise subject to the terms, exclusions, Provisions and
conditions contained in the policy or endorsed thereon and subject to the Insured having
paid the agreed extra premium, the cover under Section I shall be extended according to
the following provisions to cover sudden and unforeseen physical loss of or damage to the
structures stated below caused by or arising out of the construction or erection of the items
insured under Section I eg due to vibration, weakening or removal of support, lowering of
ground water, underpinning, tunneling or other operation involving supporting elements or
the subsoil.
Loss of or damage to the structures stated below shall only be covered if prior to the
commencement of the works their condition is found to be satisfactory and/or the necessary
safety measures have been taken. The Insured shall produce together with the inurers a
report stating the condition of the structures before the beginning of the works.
The following shall be excluded:
1. Loss or damage attributable to errors or omissions in the designing of the works:
2. Loss or damage consisting in cracks that impair neither the stability of the structure
nor the safety of its users.
Should further safety measures become necessary during construction, the expenses
incurred for such measures shall not be indemnifiable under the policy.
Structure for which this Endorsement is applicable;
Limit of indemnity: Birr 1,000,000.00 any one occurrence
Total limit of indemnity: Birr 5,000,000.00
Deductible: 20% of the Loss amount
Minimum: Birr 150,000,000 any one occurrence
Extra Premium: Included in the basic cover

Endorsement 106 Warranty concerning section

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and
conditions contained in the policy or endorsed thereon, the Insurers shall only indemnify the

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insured for loss, damage or liability directly or indirectly caused to or by embankments,
cuttings and benching, ditches, canals or road works if these embankments, cuttings and
benching, ditches, canals or road works are constructed in sections not exceeding In total
the length stated below, irrespective of the state of completion of the insured works, and the
indemnification for any one loss event shall be limited to the cost of repair of such sections.
Maximum length of section: Maximum of 4 sections of max. 2 Kilometers long each at a
time, each section at least 500 meters apart.
Endorsement 107- Warranty concerning camps and stores
It is agreed and understood that otherwise subject to the terms, exclusions, provisions and
conditions contained in the policy or endorsed thereon, the insurers shall only indemnify the
insured for loss, damage or liability directly or indirectly caused to camps and stores by fire,
flood or inundation if these camps and stores are located above the highest water level
recorded anywhere on the site during the last 20 years and the individual storage units are
either at least 50 in apart or separated by fire walls.
It is also agreed that the insurers shall indemnify the insured for anyone occurrence only up
to a limit of indemnity of for camps, for each individual storage unit.
Limit indemnity, any one occurrence, Birr 5,000,000.00 per camp and Birr 3,000,000 per
storage unit
Deductible any one occurrence: Birr 100,000.00
Extra Premium: Included in the basic cover

Endorsement 109- Warranty concerning construction Material

It is agreed and understood that otherwise subject to the term, exclusions, provisions and
conditions contained in the policy or endorsed thereon, the insurers shall only indemnify the
Insured for loss, damage or liability directly or indirectly caused to construction material by
flood or inundation if such construction material does not exceed three days demand and
the exceeding quantities are kept in areas not endangered by 20 years floods.
Endorsement 110 – Special conditions concerning safety measures with respect to
precipitation, flood and inundation.
It is agreed and understood that otherwise subject to the terms, exclusions, provisions and
conditions contained in the policy or endorsed thereon, the Insurers shall only indemnify the
Insured for loss, damages or liability caused directly or indirectly by precipitation, flood or
inundation if adequate safety measures have been taken in designing and executing the
project involved.
For the purposes of this Endorsement adequate safety measures shall mean that, at all
times throughout the policy period, allowance is made for precipitation, flood and inundation
up to a return period of 20 years for the location insured on the basis of the statistics
prepared by the meteorological agencies.
Loss , damage or liability resulting from the Insured not immediately removing obstructions
(e.g. sand trees) from watercourses within the construction site, whether carrying water or
not, in order to maintain free water flow shall not be identifiable.
Endorsement 111- Special conditions concerning removal of debris from landslides
It is agreed and understood that otherwise subject to the terms, exclusions, provisions and
conditions contained in the policy or endorsed thereon, the insurers shall not indemnify the
Insured in respect of
 Expenses incurred for the removal of debris from landslides in excess of the costs of
excavating the original material from the area affected by such landslides,
 Expense incurred for the repair of eroded slopes or other graded areas if the Insured
has failed to take the measures required or to take them in time.

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Endorsement 112- Special conditions concerning fire-fighting facilities and fire
safety on construction sites
It is agreed and understood that otherwise subject to the terms, exclusions, provisions and
conditions contained in the policy or endorsed thereon, the Insurers shall only indemnify the
Insured for loss or damage directly or indirectly caused by or resulting from fire or explosion,
provided always that:-
1. With regard to the progress of work adequate fire-fighting equipment and sufficient
extinguishing agents are available and operative at all times.
Fully operative wet riser hydrants are installed up to one level below the highest current
work level and are sealed by temporary end caps;
2. The cabinets containing hose reels and portable fire extinguishers are inspected at
regular intervals but at least twice a week.
3. Fire compartments as required by local regulations are installed as soon as possible
after the removal of formwork.
Openings for lift shafts, service ducts and other voids are provisionally closed as soon
as possible but not later than at the commencement of fit-out work,
4. Waste material is removed regularly. All floors undergoing fit out are cleared of
combustible waste at the end of each working day;
5. a” permit to work” system is implemented for all contractors engaged in “ hot work” of
any kind such as but not limited to:
 grinding, cutting or welding operations,
 Use of blow lamps and torches,
 application of hot bitumen,
 or any other heat producing operation
 “Hot work” is carried out only in the presence of at least one worker equipped with a
fire extinguisher and trained in fire-fighting.
The area of “hot work” is examined one hour after the work has finished;
6. Storage of material for the construction or erection shall be subdivided into storage units
not exceeding the value stated below per storage unit. The individual storage units shall
be either at least 50m apart or separated by fire-proof walls.
All flammable material and especially all flammable liquids and gases shall be stored at
a sufficiently large distance from the property under construction or erection and any hot
work;
7. a Site safety coordinator is appointed
A. reliable fire alarm system is installed and whenever possible a direct communication
link maintained with the nearest fire brigade.
A fire protection Plan and a site Fire Action plan are implemented and updated regularly.
The contractor’s personnel are trained in fire-fighting drills carried out weekly.
The nearest fire brigade is familiarized with the site and immediate access maintained
for it alt all times;
8. The site is fenced off and access controlled.
Value per storage unit: Birr 2,000,000.00

Endorsement 113-Inland Transit.

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It is agreed and understood that otherwise subject to the terms, exclusions, provisions and
conditions contained in the policy or endorsed thereon and subject to the insured having
paid the agreed extra premium, section 1 of this insurance shall be extended to cover loss
of or damage to the insured property whilst in transit to the contract site other than on
waterways or by air within the territorial limits of Ethiopia provided that the maximum
amount payable under this Endorsement does not exceed Birr 2,000,000 per conveyance.
Deductible: Birr 100,000.00
Extra Premium: Included in the basic cover

Endorsement 115-Cover for Designer’s Risk

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and
conditions contained in the policy or endorsement(s) thereon and subject to the Insured
having entered agreement with the Employer to make a design work during the construction
period for which the contractor shall be responsible and provide such design risk that is
notified to the Company, Exclusion (C) under special exclusions to section 1 of the policy
shall be deleted and exclusion(d) replaced by the following wording
“d) The cost of replacement, repair or rectification of loss or damage to items due to
defective material and/or workmanship and/or faulty design, only for design work needed
during construction period for which the contractor is responsible, but this exclusion shall be
limited to the items immediately affected and shall not be deemed to exclude loss of or
damage to correctly executed items resulting from an accident due to such design”
Limit of indemnity (any one occurrence): Birr 2,000,000.00
Total limit of indemnity: Birr 10,000,000.00
Deductible: Any one occurrence: Birr 300,000.00
Extra Premium: Included in the basic Cover.
Cover.
Endorsement 116-Cover for insured contract works taken over or put into service
It is agreed and understood that otherwise subject to the terms, exclusions, provisions and
conditions contained in the Policy or endorsed thereon and subject to the insured having
paid the agreed extra premium, the insurance shall be extended to cover:
 Loss of or damage to parts of the insured contract works taken over or put into service if
such loss or damage emanates from the construction of the items insured under Section
1 and happens during the period of cover.
Extra premium: Included in the basic cover

Endorsement 120-Vibration, removal or weakening of support

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and
conditions contained in the Policy or endorsed thereon and subject to the insured having
paid the agreed extra premium, Section 2 of this insurance shall be extended to cover
liability consequent upon loss or damage caused by vibration or by the removal or
weakening of support.
Provided always that the insurers indemnify the insured in respect of liability for loss or
damage to any property or land or building only if such loss or damage results in the total or
partial collapse,
 The insurers indemnify the insured in respect of liability for loss or damage to any
property or land or building only if prior to the commencement of construction its
condition is sound and the necessary loss prevention measures have been taken,

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 If required, the insured, before commencement of construction and at his own expense,
prepares a report on the condition of any endangered property or land or building.
The insurers shall not indemnify the insured in respect of liability for:
 Loss or damage which is foreseeable having regard to the nature of the construction
work or the manner of its execution,
 Superficial damage which neither impairs the stability of the property, land or buildings
nor endangers their users,
 The costs of loss prevention or minimization measures which become necessary during
the period of insurance.
Limit of indemnity (any one occurrence): Birr 2,000,000
Total limit of indemnity: Birr 5,000,000
Deductible: Birr 500,000
Extra premium: Included in the basic cover
War, civil war and political Risk Exclusion Clause
The following shall be excluded from this agreement:
Any loss or damage directly occasioned by or through or in consequence of any of the
following occurrences, namely: War, invasion, act of foreign enemy, hostilities or warlike
operations (whether war be declared or not), civil war.
Abandonment and/or permanent or temporary dispossession resulting from detention,
confiscation, seizure, restraint, commandeering, nationalization, appropriation, destruction
or requisition by order of any government de jure or de facto or by any public authority.
Mutiny, civil commotion, military rising, insurrection, rebellion, revolution, military or usurped
power, martial law or state of siege or any of the events or caused which determine the
proclamation or maintenance of martial law or state of siege.
Any act, including but not limited to labour disturbance lock-out, riot or strike, which is
calculated or directed to bring about loss or damage in order to further any political aim,
objective or cause, or to bring about any social or economic change, or in protest against
any State or Government, or any political or local authority, or for the purpose of imposing
fear in the public or any section thereof.
The act of any lawfully established authority in controlling, preventing, suppressing or in any
other way dealing with any occurrence referred to in clauses 4 above.
Plundering, looting, war pillage in connection with civil commotion or any of the activities
referred to in clause 4 above.
For the purposes of clauses 4, 5 and 6, any loss or damage occasioned directly by a labour
disturbance, lock-out, riot or strike or in order to bring about any social or economic change
which is not politically motivated as envisaged in clause 4 shall not be excluded.
In any action, suit or other proceeding where the insurer alleges that by reason of these
provisions any loss, damage, cost or expense is not covered by this Policy, the burden of
proving that such loss, damage, cost or expense is covered shall be upon the Insured.

Terrorism Exclusion Clause

Notwithstanding any provision to the contrary within this agreement or any endorsement
thereto, this Policy does not cover any liability, loss, damage, cost or expense of
whatsoever nature directly caused by, resulting from, happening through or in connection

16
with any act of terrorism, regardless of any other cause contributing concurrently or in any
other sequence to the loss, damage, cost or expense.
For the purpose of this exclusion, terrorism means an act, including but not limited to the
use of violence or force and/or the threat thereof, whether as an act harmful to human life or
not, by any person or group(s) of person(s), whether acting alone or on behalf of, or in
connection with any organization(s) or government(s) or any person or body of persons,
committed for political, religious, personal, ethnic or ideological reasons or purposes
including any act committed with the intention to influence any government and/or for the
purpose of inspiring fear in the public or any section thereof.
In any action, suit or other proceeding in which the insurer alleges that by reason of this
definition any loss, damage, cost or expense is not covered by this Policy, the burden of
proving that such loss, damage, cost, or expense is covered shall be upon the insured.
Terrorism Exclusion Clause for contamination and Explosive
It is agreed that, regardless of any contributory causes, this Policy does not cover any loss,
damage, cost or expense directly arising out of
a) Biological or chemical contamination
b) Missiles, bombs, grenades, explosives
due to any act of terrorism
For the purpose of this endorsement an act of terrorism means an act, including but not
limited to the use of force or violence and/or the threat thereof, of any person or group(s) of
persons, whether acting alone or on behalf of or in connection with any organization(s) or
government(s), committed for political, religious, ideological, or ethnic purposes or reasons
including the intention to influence any government and/or to put the public, or any section
of the public,, in fear.
For the purpose of a) “contamination” means the contamination, poisoning, or prevention
and/or limitation of the use of objects due to the effects of chemical and/or biological
substances.
If the insurer alleges that by reason of this exclusion, any loss, damage, cost or expense is
not covered by this policy the burden of proving the contrary shall be upon the insured.
Nuclear energy Risks Exclusion clause (1994) NMA 1975
This Agreement shall exclude Nuclear Energy Risks. For all purposes of this Agreement
Nuclear Energy Risks shall mean all first and/or third party insurances (other than Workers’
Compensation and Employers’ Liability) in respect of:
4.3.1. All property on the site of a nuclear power station. Nuclear Reactors, reactor
buildings, plant and equipment therein on any site other than a nuclear power
station.
4.3.2. All Property, on any site (including but not limited to the sites referred to in (I) above)
used or having been used for:
4.3.2.1. the generation of nuclear energy or
4.3.2.2. the production, use or storage of nuclear material.
4.3.3. Any other Property eligible for insurance by the relevant local Nuclear Insurance pool
and/or Association but only to the extent of the requirements of that local pool and/or
Association.
4.3.4. The supply of goods and services to any of the sites, described in 4.3.1 to 4.3.3.,
above unless such insurances shall exclude the perils of irradiation and

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 contamination by Nuclear Material. Except as under-noted, Nuclear Energy Risks
shall not include:
4.3.4.1 Any insurance in respect of the construction or erection or installation or
replacement or repair or maintenance or decommissioning of property as
described in 4.3.1 to 4.3.3 above (including contractors’ plant and
equipment).
4.3.4.2. Any Machinery Breakdown or other Engineering insurance not coming within
the scope of 4.3.4.1 above.
Provided always that such insurance shall exclude the perils of irradiation and
contamination by Nuclear Material.
However, the above exemption shall not extend to:
A The rovision of any insurance whatsoever in respect of:
A.1 Nuclear Material;
A.2 Any Property in the High Radioactivity Zone or Area of any Nuclear installation as from
the introduction of Nuclear Material or for reactor installations – as from fuel loading or
first criticality where so agreed with the relevant local Nuclear insurance pool and/or
Association.
B The Provision of any insurance for the under-noted perils:
Fire, lightning, explosion;
Earthquake;
Aircraft and other aerial devices or articles dropped there from;
Irradiation and radioactive contamination;
Any other peril insured by the relevant local Nuclear Insurance pool and/or Association;
In respect of any other Property not specified in A above which directly involves the
production, use or storage of Nuclear Material as from the introduction of Nuclear Material
into such Property.

Definitions
“Nuclear Material” means Nuclear fuel, other than natural uranium and depleted uranium,
capable of producing energy by a self-sustaining chain process of nuclear fission outside a
Nuclear Reactor, either alone or in combination with some other material; and
“Radioactive Products or Waste” means any radioactive material produced in, or any
material made radioactive by exposure to the radiation incidental to the production or
utilization of nuclear fuel, but does not include radioisotopes which have reached the final
stage of fabrication so as to be usable for any scientific, medical, agricultural, commercial or
industrial purpose.
“Nuclear Installation” means:
Any Nuclear Reactor;
Any factory using nuclear fuel for the production of Nuclear Material, or any factory for the
processing of Nuclear Material, including any factory for the reprocessing of irradiated
nuclear fuel; and
Any facility where Nuclear Material is stored, other than storage incidental to the carriage of
such material.

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“Nuclear Reactor” means any structure containing nuclear fuel in such an arrangement that
a self-sustaining chain process of nuclear fission can occur therein without an additional
source of neutrons.
“Production, use or storage of Nuclear Material” means the production, manufacture,
enrichment, condition, processing, reprocessing, use, storage, handling and disposal of
nuclear Material.
“Property” shall mean all land, buildings, structures, plant, equipment, vehicles, contents
(including but not limited to liquids and gases) and all materials of whatever description
whether fixed or not.
“High Radioactivity Zone or Area” means:
For Nuclear power Stations and Nuclear Reactors, the vessel or structure which
immediately contains the core(including its supports and shrouding) and all the contents
thereof, the fuel elements, the control rods and the irradiated fuel store; and)
For non-reactor Nuclear installations, any area where the level of radioactivity requires the
provision of a biological shield.

Additional Nuclear Exclusions

Unless specifically agreed in respect of an insured loss involving Nuclear Material under
determined circumstances, this agreement does not cover legal liability, loss (including
consequential loss) or damage, cost or expense caused directly by any of the following.
Regardless of any other cause or event contributing concurrently or in any other sequence
to the loss:
Nuclear Material, Nuclear Fission or Fusion, Nuclear Radiation, Nuclear Waste from the use
of Nuclear Fuels, Nuclear Explosives or any Nuclear Weapon.
For the sake of clarity, the above exclusion does not cover legal liability, loss including
consequential loss) or damage, cost or expense caused directly by or contributed to by or
arising from ionizing radiation or contamination by radioactivity from any nuclear fuel or from
any nuclear waste from the combustion of nuclear fuel.

Definitions:
“Nuclear material” as defined in NMA 1975(A)
“Nuclear fission” means a nuclear reaction in which a heavy nucleas splits spontaneously or
on impact with another particle with the release of energy.
“Nuclear fusion” means a nuclear reaction in which atomic nuclei of low atomic number fuse
to form a heavier nucleas with the release of energy.
“Nuclear radiation” means the absorption of electro-magnetic radiation by a nucleas having
a magnetic moment when in an external magnetic field.
“Nuclear waste” as defined in NMA 1975 (A)
“Nuclear fuels” means a substance that will sustain a fission chain reaction so that it can be
used as a source of nuclear energy.
“Nuclear explosives” means an explosive involving the release of energy by nuclear fission
or fusion or both.
“Nuclear weapon” means a nuclear device designed, used or capable of being used for the
inflicting of bodily harm or property damage.

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Radioactive Exclusion Clause
Unless specifically agreed for an insured loss involving nuclear material under determined
circumstances, this insurance does not cover loss, damage cost or expense of whatsoever
nature directly caused, resulting from or in connection with nuclear energy or radioactivity of
any kind including but not limited to any of the following regardless of any other cause or
event contributing concurrently or in any other sequence to the loss:
1. Ionizing radiations from or contamination by radioactivity from any nuclear fuel or
from any nuclear waste or from the combustion of nuclear fuel.
2. The radioactive, toxic, explosive or other hazardous or contamination properties of
any nuclear installation, reactor or other nuclear assembly or nuclear component
thereof.
3. Any weapon of war employing atomic or nuclear fission and/or fusion or other like
reaction or radioactive force or matter.

Asbestos Exclusion
It is hereby understood and agreed that this contract shall not apply to, and does not cover,
any actual or alleged liability whatsoever for any claim or claims in respect of loss or losses
directly or indirectly caused by, arising out of, resulting from, in consequence of, in any way
involving, or to the extent contributed to by, the hazardous nature of asbestos in whatever
form or quantity.

Electronic Date Recognition Clause EDRC (B)

Section 1
This insurance does not cover any loss, damage, cost, claim or expense, whether
preventative, remedial or otherwise, directly or indirectly arising out of or relating to:
a) the calculation, comparison, differentiation, sequencing or processing of data
involving the date change to the year 2000, or any other date change, including leap
year calculations by any computer system, hardware, programme or software and/or
any microchip, integrated circuit or similar device in computer equipment or non-
computer equipment, whether the property of the insured or not; or
b) any change, alteration or modification involving the date change to the year 2000 or
any other date change, including leap year calculations, to any such computer
system, hardware, programme or software or any microchip, integrated circuit or
similar device in computer equipment or non-computer equipment, whether the
property of the insured or not.
This clause applies regardless of any other cause or event that contributes concurrently or
in any sequence to the loss, damage, cost, claim or expense.
However, this section shall not apply in respect of physical damage occurring at the
insured’s premises arising out of the perils of fire, lightning, explosion, aircraft or vehicle
impact, falling objects, windstorm, hail, tornado, hurricane, cyclone, riot, strike, civil
commotion, vandalism, malicious mischief, earthquake, volcano, tsunami. Freeze or weight
of snow.
Section 2
Notwithstanding Section 1 above, this insurance does not cover any costs and expenses,
whether preventative, remedial or otherwise, arising out of or relating to change, alteration
or modification of any computer system, hardware, programme or software or any
microchip, integrated circuit or similar device in computer or non-computer equipment,
whether the property of the insured or not.

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Section 3
The date change to the year 2000, or any other date change, including leap year
calculations, shall not in and of itself be regarded as an event for the purposes of this
insurance.

Clarification Agreement
Property damage covered under this Agreement shall mean physical damage to the
substance of property.
Physical damage to the substance of property shall not include damage to data or software,
in particular any detrimental change in data software or computer programmes that is
caused by deletion, a corruption of a deformation of the original structure.
Consequently the following are excluded from this agreement.
Loss of or damage to data or software, particular any detrimental change in data, software
or computer programmes that is cause by a deletion, a corruption or a deformation of the
original structure, and any business interruption losses resulting from such a loss or
damage, Notwithstanding this exclusion, loss of or damage to data or software, which is the
direct consequence of insured physical damage to the substance of property, shall be
covered.
Loss of damage resulting from an impairment in the function, availability, range of use or
accessibility of data, software or computer programmes, and any business interruption
losses resulting from such loss or damage.

Theft Clause
Theft within the meaning of this policy shall mean theft following upon Housebreaking
(causing actual forcible visible damage to the site Construction Stores or premises or part
thereof) and connected therewith or if there shall arise any damage to the said stores or
premises, the property of the insured or for which the insured is legally responsible, which
shall be due to any such theft as aforesaid or any attempt thereat, excluding theft by or with
the connivance of any or the family, construction staff or domestic servants or the insured or
any other person lawfully on the Construction site, stores or premises.

Watchmen Warranty
Warranted that the premises containing the goods insured (construction material) under the
within mentioned policy is guarded by watchmen solely employed by the contractor
mentioned in the policy for Twenty Four(24) Hours on all days during the course of
Construction.

Sixty Day Premium Warranty

Notwithstanding anything contained in the within written Policy to/or the contrary, it is
declared and agreed that it is a fundamental and absolute special condition of this policy of
insurance that the premium due after the attachment of the risk must be paid in full to and
received by Abay Insurance Company (S.C.) on/or before mid-night on the sixtieth day
thereof.
If this condition is not complied with, then this Policy of insurance shall be deemed to have
automatically terminated on the expiry of the premium warranty period (sixty days) with
Abay Insurance Company (S.C.) charging the premium for the time on risk calculated on
pro-rata basis provided no claim has arisen under the policy.

21
Where a claim has arisen or is likely to arise, within period of cover, under the Policy, the
annual premium shall be deemed to be fully earned and no part thereof shall be deducted
and/or withheld notwithstanding the cancellation.
Any additional premium payable by the insured following changes to the Policy will be
subject to the conditions of this warranty as will be any premium raised at inception or
renewal.
This warranty supersedes any cancellation notice requirement under the Policy.
Other Warranties
 Warranted that solid stores with secure steel doors to be constructed for storage of
all materials
 Warranted that Portable items shall not be left on site overnight
Annex
Burden of Proof
The clause in this policy and/or Endorsements thereon which relates to the shifting of the
burden of proof on the insured in case of claims is agreed and understood to be interpreted
as per article 676(2) of the Commercial Code of Ethiopia.
Renewal Notice
The Company hereby undertakes to notify the insured of the expiry of the cover before 30
days.
Compensations
It is understood and agreed that compensations shall be payable in the types and
proportions of currencies required to rectify the loss or damage incurred as stated in the
contract, provided that the relevant or appropriate authorities shall approve the same.

_______________________
For and on behalf of
ABAY INSURANCE (S.C)
Compulsory

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