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Republic of the Philippines
GOVERNMENT SERVICE INSURANCE SYSTEM
Manila

GENERAL INSURANCE FUND
CONTRACTORS' ALL RISKS POLICY

WHEREAS THE INSURED named in the Schedule hereto has made to the GENERAL INSURANCE FUND, GOVERNMENT SERVICE INSURANCE SYSTEM (thereinafter 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 WITNESSETH that in consideration of the Insured having paid to the Insurers the premium mentioned in the Schedule and subject to the 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:

  1. war, invasion act of foreign enemy, hostilities (whether war by declared or not), civil war, rebellion, revolution, insurrection, mutiny, riot, strike, lock-out, civil commotion, military or usurped power or malicious persons acting on behalf of or in connection with any political organization, confiscation, commandeering, requisition or destruction of or damage to property by order of the government de jure or de facto or by any public authority.
  2. nuclear reaction, nuclear radiation or radioactive contamination.
  3. willful act or willful negligence of the Insured.
  4. cessation of work whether total or partial.
in any action, suit or other proceeding where the Insurers allege that by reason of the provision 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

  1. CONSTRUCTION PERIOD

  2. The liability of the Insurers shall commence, notwithstanding any date to the contrary specified in the Schedule, with the unloading of the property specified in the Schedule at the Contract Site and shall expire on the date specified on the Schedule.

    The Insurers' liability expires also for part of the insured contract works taken over or put into service by the Principal prior to the expiry date specified in the Policy whichever shall be earlier.
     

  3. GUARANTEE PERIOD
If a guarantee period is specified in the Schedule, the liability of the Insurers during this period shall be limited to any loss or damage caused by the Insured Contractor(s) in the course of the operations carried out by him for the purpose of complying with his obligations under the Guarantee Clause of the Contract.
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 shall be a condition precedent to any liability of the Insurers to make any payment under this Policy.
  2. The Schedule and 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 as including the Schedule and 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 give notice to the Insurers of any insurance or insurance already affected, or which may subsequently be effected, covering any of the property hereby insured, and unless such notice be given and the particulars of such insurance or insurances be stated in or endorsed on this Policy by or on behalf of the Insurers before the occurrence of any loss or damage, all benefits under this Policy shall be forfeited.
  4. The Insured shall take all reasonable precautions to prevent loss, damage or liability and to comply with sound engineering practice, statutory requirements and manufactures' recommendations and maintain in efficient condition all contract works, construction plant, equipment and construction machinery insured by this Policy.
  5. The Insured shall immediately notify the Insurers in writing of any material change in the risk insured hereunder; the scope of cover and or the premium shall if necessary, be adjusted accordingly.
  6. Representatives of the Insurers shall at any reasonable time have access to the site or premises and to all pertinent data, documents, drawings, etc. and shall have the right to inspect any property insured.
  7. In the event of any occurrence which might give rise to a claim under this Policy, the Insured shall:
    1. immediately notify the Insurers by telephone or telegram as well as in writings:
    2. take all steps within his power to minimize the extent of the loss or damage;
    3. preserve the damaged parts and make them available for inspection by a representative or surveyor of the Insurers;
    4. furnish all such information and documentary evidence as the Insurers may require;
    5. inform the police authorities in case of loss or damage due to theft, burglary or sabotage.
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 shall have the opportunity of inspecting the loss or damage before any repairs or alterations are effected. Nothing herein shall prevent the Insured from taking such steps as are absolutely necessary for the security and continuation of the contract work. If a representative of the Insurers does not carry out the inspection within a period of time which could be considered as adequate under the circumstances the Insured is entitled to proceed with the repairs or replacement.

  1. 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 rights or remedies, or of obtaining relief or indemnity from parties (other than those insured under this Policy) to which the Insurers shall be or would become entitled or subrogated upon their paying such acts and things shall be or become necessary or required before or after the Insured's indemnification by the Insurers.
  2. All differences arising out of this Policy with respect to the amount of liability shall be referred to the decision of an Arbitrator to be appointed in writing by the parties in difference or if they can nor 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 entering upon the reference. The Umpire shall sit with the Arbitrators and preside at their meetings. The Arbitrators and the Umpire shall be qualified Engineerings. The making of an award shall be a condition precedent to any right of action against the Insurers.
  3. 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 anyone acting on his behalf to obtain any benefit under this Policy or if a claim is made and rejected and no action or suit is commenced within twelve months after such rejection or, in case of arbitration taking place as provided herein, within twelve months after the Arbitrator or Arbitrators or Umpire have made their award, all benefit under this Policy shall be forfeited.
  4. 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 rateable proportion of any claim for such loss or damage.
Section I
PROPERTY INSURED
(Material Damage)

THE INSURERS HEREBY AGREE with the Insured that if at any time during the period of insurance stated in the Schedule, or during any further period of extension thereof, the property or any part thereof described in the Schedule shall suffer any unforeseen loss or damage from any cause, other than those specifically excluded, in a manner necessitating repair or replacement, the Insurers will pay or make good all such loss or damage 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 all the total sum expressed in the said Schedule as insured hereby. The Insurers will also reimburse the Insured for the cost of clearance of the debris of the insured property following upon any event giving rise to a under this Policy but not exceeding in all the sum not opposite thereto in the Schedule.

EXCLUSIONS TO SECTION I

The Insurers shall not, however, be liable for:

  1. the deductibles stated on the Schedule to be borne by the Insured in any one occurrence other than fire, lightning or explosion;
  2. consequential loss of any kind or description whatsoever including penalties, losses due to delay, lack of performance, loss of contract;
  3. loss or damage due to faulty design;
  4. cost of replacement 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 or damage resulting from an accident due to such defective material and/or workmanship;
  5. wear and tear, corrosion, oxidation, deterioration due to lack of use and normal atmosphere conditions;
  6. mechanical and/or electrical breakdown or derangement of constraction plant, equipment and construction machinery;
  7. loss of or damage to vehicles licensed for general road use or waterborne vessels or aircraft;
  8. loss or damage to files, drawings, accounts, bills, currency, stamps, deeds, evidence of debt, notes, securities, or cheques;
  9. loss discovered only at the time of taking an inventory.
PROVISIONS APPLYING TO SECTION I

MEMO 1 SUM INSURED: It is a requirement of this insurance that the amounts of insurance 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 materials, wages, freight, customs duties, dues and materials, or items supplied by the Principal;

for item 2 and 3: the replacement value of construction plant, equipment and construction machinery; the Insured undertake to notify the Insurers of any facts affecting a material increase or decrease which shall take effect only after the same has been recorded on the Policy by the Insurers, before the occurrence of any claim hereunder. If, in the event of loss or damage, it is found that the sum insured is less than the amount required to be insured, then the amount recoverable by the Insured under this Policy shall, before taking into account the deductibles stated in the Schedule, be reduced in such proportion as the sum insured bears to the amount required to be insured.

MEMO 2 BASIS OF LOSS SETTLEMENT: In the event of any loss or damage the basis of any settlement under this Policy shall be:

  1. in the case of any damage which can be repaired - the cost of repairs necessary to restore the insured property to its condition immediately before the occurrence of the damage less salvage, or
  2. in the case of a total loss - the actual value of the insured property immediately before the occurrence of the loss less salvage, 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 insured property 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, nightwork, work on public holidays, express freight, etc. are covered by this Insurance only if previously and specially agreed upon.

SECTION II
THIRD PARTY LIABILITY

The Insurers will indemnify the insured against all sums which the Insured shall become legally liable to pay as damage consequent upon:

  1. accidental bodily injury or illness (whether fatal or not) to third parties
  2. accidental loss or damage to property belonging to third parties occurring in direct connection with the performance of the contract insured by this Policy and happening on or in the immediate vicinity of the Contract Site during the Period of Insurance. In respect of a claim for compensation to which the indemnity provided herein applies, the Insurers will in addition indemnify the Insured against
    1. all cost and expenses of litigation recovered by any claimant from the Insured, and
    2. all costs and expenses incurred with the written consent of the Insurers.
The liability of the Insurers under this section shall not exceed the limits of indemnity stated in the Schedule (Section II).

EXCLUSIONS TO SECTION II

The Insurers will not indemnify the Insured in respect of

  1. expenditure incurred in doing or redoing or making good or repairing or replacing any work on property covered or recoverable under Section I of this Policy;
  2. damage to any property or land or building caused by subsidence, collapse, 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.
  3. liability consequent upon:
  1. bodily injury or illness of employees or workmen of the Contractor(s) or the Principal or any other firm connected with the contract work or members of their families;
  2. loss of or damage to property belonging to or held in care, custody or control of the Contractor(s), the Principal or any other firm connected with the contract work or any employee or workman of anyone of the aforesaid;
  3. any accident caused by vehicles licensed for general road use or by waterborne vessels or aircraft;
  4. any agreement by the Insured to pay any sum by way of indemnity or otherwise unless such liability would have attached in the absence of such agreement.
SPECIAL CONDITIONS APPLYING TO SECTION II
  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 assistance 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 therefrom 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.
S C H E D U L E
_____________________________________________________________________________________________
Policy No. _________________________ Issued at _____________________________________________
Title of Contract _______________________________________________________________________________

Name(s) and address(es) of Insured

(a) Principal _______________________________________________________________________________

(b) Contractor(s) ____________________________________________________________________________

Location of Contract Site
_____________________________________________________________________________________________

Description of the Insured Items

_____________________________________________________________________________________________
SECTION I - PROPERTY INSURED SUM INSURE
_____________________________________________________________________________________________

  1. Contract Works
(Permanent and Temporary
Works, including all Mate-
rials to be incorporated
therein)
2. Construction Plant and 2. ___________________________
Equipment

3. Construction Machinery 3. ___________________________
according to the attached
list

4. Installation of Machinery 4. ___________________________

Equipment forming part of
Permanent Contract Work
________________________________________________________________________

Limit of indemnity under this Policy in respect of Clearance of Debris
________________________________________________________________________

DEDUCTIBLES:

Amount to be borne by the Insured in respect of each and every occurrence for loss of or damage to contract works and/or construction plant and equipment (Schedule Section I Items 1 and 2) existing out of

(a) earthquake, storm, typhoon, cyclone,                                                                     The first
flood, inundation, subsidence, landslide collapse
(b) any other cause, except fire, lightning                                                                     The first
and explosion

Amounts to be borne by the Insured in respect of each and every occurrence for loss of or damage to construction machinery (Schedule Section I item 3) arising out of

(a) earthquake, storm, typhoon, cyclone,                                                                         The first
flood, inundation, subsidence, landslide collapse
(b) any other cause, except fire, lightning                                                                         The first
and explosion
________________________________________________________________________

SECTION II THIRD PARTY LIABILITY


________________________________________________________________________

1. Limit of indemnity in respect of any 1.
one accident or serial of accidents arising
out of the event

(a) for bodily injury to any one person         (a) ______________

(b) for property damage                                 (b) ______________

2. Total limit of indemnity under                     2.
this Policy

________________________________________________________________________

PERIOD OF INSURANCE (subject to the Provisions concerning the Period of Cover)
a) Construction Period From: To:
b) Guarantee Period From: To:

Premium

(subject to adjustment in accordance with the Provisions and Conditions of the Policy)

________________________________________________________________________

IN WITNESS WHEREOF, THE General Insurance Fund has caused this Policy to be signed this ______day of __________________ 19 ____ at Quezon City, Philippines.
 
 

FELIX FERNANDEZ
Manager General Insurance Department