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:
The payment of the required premiums shall
be borne by the Contractor.
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:
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
Third Party Liability - Insurance
against all sums which the Contractor shall become legally liable to pay
as damages consequent upon:
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.
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:
a) Fire, lightning, explosion, crashing
aircraft, extinguishing water or other fire-fighting measures
Should the contract period be extended,
as authorized, the validity of the CAR Insurance shall also be correspondingly
b) flood, inundation and rain
c) windstorm of any kind
d) earthquakes, subsidence, landslide,
e) theft, burglary
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