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GC-58
 
CONTRACTOR'S ALL RISK (CAR) INSURANCE

Contractor shall, after receipt of the Notice to Proceed, obtain and maintain in effect for the duration of the Contract a Contractor's All Risk (CAR) Insurance for this Contract from private insurance companies or sureties duly licensed and accredited by the Office of the Insurance Commissioner or with the Government Service Insurance System (GSIS) to comply with the provisions of Republic Act No. 656, as amended by Presidential Decree No. 245.

Such CAR Insurance for this Contract shall have the following scope of cover:

  1. Insurance against any unforeseen loss or damage from any cause (other than those that may be reasonably and specifically excluded by the GSIS) for the following:
  2. a) Entire Contract Work (Permanent and Temporary Works) including all materials and equipment already on the site to be incorporated into the Works.

       
    b) All construction plant and equipment
       
    c) All construction machinery including construction materials and equipment furnished by NIA that are already accepted by the Contractor at the jobsite, to form part of the Permanent Works.
     
  3.  Third Party Liability - Insurance against all sums which the Contractor shall become legally liable to pay as damages consequent upon:

  4.   a) Accidental bodily injury or illness (whether fatal or not) to third parties;
    b) Accidental loss or damage to property belonging to third parties; occurring in direct connection with the performance of the Contract.
The payment of the required premiums shall be borne by the Contractor.

By virtue of this CAR Insurance, it is understood that any claim filed by Contractor against NIA due to losses and damages on all of the above mentioned coverages due to the following will not be entertained:

Should the contract period be extended, as authorized, the validity of the CAR Insurance shall also be correspondingly extended.

Any amount not covered under this CAR Insurance by the private insurance companies, sureties or GSIS (or called deductibles) shall be shouldered by the Contractor and therefore will not be claimed against the NIA.

NOTE: See appended specimen of Contractor's All Risk Policy