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    [CONTRACTORS PLANT & MACHINERY INSURANCE POLICY ]

    WHEREAS the insured named in the Schedule hereto by a proposal and declaration, whichshall be the basis of this contract and is deemed to be incorporated herein has applied to theNational Insurance Co. td. !hereinafter called the Company " for the insurance hereinaftercontained and has paid the premium as consideration for such Insurance in respect of

    accident or dama#e occurrin# durin# the period of Insurance stated in the Schedule ordurin# any subse$uent period for which the Insured pays and the Company may accept thepremium for the renewal of this %olicy.

    NOW THIS POLICY OF INSURANCE WITNESSETH

    &HA& sub'ect to the terms, e(ceptions, e(clusions, pro)isions and conditions contained hereinor endorsed hereon, the Company will at its own option by payment or reinstatement or repairindemnify the Insured a#ainst unforeseen and sudden physical dama#e by any cause nothereinafter e(cluded to any Insured %roperty speci*ed in the attached Schedule!s" whilst atthe location mentioned therein necessitatin# its immediate repair or replacement. &his %olicyshall apply to the insured items whether they are at wor+ or at rest, or bein# dismantled forthe purpose of cleanin# or o)erhaulin#, or in the course of the aforesaid operations

    themsel)es, or when bein# shifted within the premises, or durin# subse$uent reerection, butin any case only after successful commissionin#. &he liability of the Company for any one itemof the insured property shall not e(ceed in the a##re#ate in any one %eriod of Insurance theSum Insured set a#ainst such item in the attached Schedule!s". Howe)er the sum insuredunder such item can be reinstated after occurrence of a claim for balance period.

    EXCEPTIONS

    &HE C-%AN/ SHA N-& 0E IA0E 1N2ER &HIS %-IC/ IN RES%EC& -3

    a" the E(cess stated in the Schedule to be borne by the Insured in any oneoccurrence4 if more than one item is lost or dama#ed in one occurrence, the insured shallnot, howe)er, be called upon to bear more than the hi#hest sin#le E(cess applicable to

    such items4b" loss or dama#e due to electrical or echanical brea+down, failure, brea+a#e or

    deran#ement, free5in# of coolant or other 6uid, defecti)e lubrication or lac+ of oil orcoolant, but if as a conse$uence of such brea+down or deran#ement an accidentoccurs causin# e(ternal dama#e, such conse$uential dama#e will be indemni*able.

    c" loss of or dama#e to replaceable parts and attachment such as bits, drills, +ni)esor other cuttin# ed#es, saw blades dies, moulds, patterns, pul)eri5in# and crushin#surfaces, screens and sie)es, ropes, belts, chains, ele)ator and con)eyor bands,batteries, tyres, connectin# wires and cables, 6e(ible pipes, 'oinin# and pac+in# materialre#ularly replaced4

    d" loss or dama#e due to e(plosion of any boiler or pressure )essel sub'ect to internal steam

    or 6uid pressure or of any internal combustion en#ine4

    e" loss of or dama#e to )ehicles desi#ned and licensed for #eneral road use unless these)ehicles are e(clusi)ely used on construction site4

    f" loss of or dama#e to Hull and machinery of waterborne )essels or crafts, howe)er thise(clusion shall not apply to Contractors %lant and machinery mounted on water borne)essels or crafts for the purpose of use for the contract wor+.

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    #" loss or dama#e due to total or partial immersion in tidal waters4

    h" oss or dama#e whilst in transit, from one location to another location. !%ublic iability willnot be payable while Contractors %lant 7 achineries are on %ublic Roads".

    i" loss or dama#e as a direct conse$uence of the continual in6uence of operation !e.#.

    wear and tear, corrosion, rust, deterioration due to lac+ of use and normal atmosphericconditions"4

    '" loss or dama#e occurrin# whilst any insured item is under #oin# a test of any +ind or isbein# used in any manner or for any purpose other than that for which it was desi#ned4

    +" oss of or dama#e to plant and8or machinery wor+in# under#round.

    Note &his does not apply to achineries used in &unnelin# wor+s.

    l" War, In)asion, act of forei#n enemy, hostilities or war li+e operation !whether war bedeclared or not", Ci)il War, Rebellion Re)olution Insurrection, utiny, Ci)il Commotion,ilitary or usurped power, martial law, conspiracy, con*scation, commandeerin# a

    #roup of malicious person or persons actin# on behalf of or in connection with any politicalor#ani5ation, re$uisition or destruction or dama#e by order of any #o)ernment de 'ure orde facto or by any public, unicipal or ocal Authority.

    m" oss or dama#e directly or indirectly caused by, or arisin# out of, or a##ra)ated by nuclearreaction, nuclear radiation or radioacti)e contamination.

    n" loss or dama#e due to any faults or defects e(istin# at the time of commencement of thispolicy within the +nowled#e of the insured or his representati)es, whether such faults ordefects were +nown to the Company or not4

    o" oss or dama#e directly or indirectly caused by, or arisin# out of or a##ra)ated by thewillful act or willful ne#li#ence of the insured or his representati)es.

    p" loss or dama#e for which the supplier or manufacturer is responsible either by law orunder contract4

    $" conse$uential loss or liability of any +ind or description4

    r" oss or dama#e disco)ered only at the time of ta+in# an in)entory or durin# routineser)icin#.

    In any action, suit or other proceedin# where the company alle#e that by reason of thepro)isions of e(clusions !m" to !$" abo)e any loss, destruction or dama#e is not co)ered bythis policy, the onus of pro)in# that such loss, destruction or dama#e is co)ered shall beupon the insured.

    PROVISIONS

    1. SUM INSURED

    It is a re$uirement of this insurance that the Sum Insured shall be e$ual to the cost ofreplacement of the insured property by new property of the same +ind and same capacity,which shall mean its replacement cost includin# frei#ht, dues and customs duties if anyand erection costs.

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    . !ASIS OF INDEMNITY

    a" In cases where dama#e to an insured item can be repaired the Company will paye(penses necessarily incurred to restore the dama#ed machine to its conditionimmediately prior to the accident8loss plus the cost of dismantlin# and reerection

    incurred for the purpose of e9ectin# the repairs as well as ordinary frei#ht to and froma repairshop, customs duties and dues if any, to the e(tent such e(penses ha)e beenincluded in the Sum Insured. If the repairs are e(ecuted at a wor+shop owned by theInsured, the Company will pay the cost of materials and wa#es incurred for the purposeof the repairs plus a reasonable percenta#e to co)er o)erhead char#es.

    No deduction shall be made for depreciation in respect of parts replaced, e(cept thosewith limited life, but the )alue of any sal)a#e will be ta+en into account. If the cost ofrepairs as detailed hereinabo)e e$uals or e(ceeds the actual )alue of the machineryinsured immediately before the occurrence of the dama#e, the settlement shall bemade on the basis pro)ided for in !b" below.

    b" In cases where an insured item is totally destroyed the Company will pay the actual

    )alue of the item immediately before the occurrence of the loss, includin# costs forordinary frei#ht, erection and customs duties if any, pro)ided such e(penses ha)e beenincluded in the sum insured, such actual )alue to be calculated by deductin# properdepreciation from the replacement )alue of the item. &he Company will also pay anynormal char#es for dismantlin# of the machinery destroyed but the sal)a#e shall beta+en into account.

    Any e(tra char#es incurred for o)ertime, ni#htwor+, wor+ on public holiday, e(pressfrei#ht, are co)ered by this insurance only if especially a#reed to in writin#.

    In the e)ent of the a+ers: drawin#, patterns and core bo(es necessary for the e(ecutionof a repair, not bein# a)ailable, the Company shall not be liable for the cost of ma+in# anysuch drawin#s, patterns and core bo(es.

    &he cost of any alteration, impro)ements or o)erhauls shall not be reco)erable under this%olicy.

    &he cost of any pro)isional repairs will be borne by the Company if such repairs constitutepart of the *nal repairs, and do not increase the total repair e(penses.

    If the sum insured is less than the amount re$uired to be insured as per %ro)ision I hereinabo)e, the Company will pay only in such proportion as the sum insured bears to theamount re$uired to be insured. E)ery item, if more than one, shall be sub'ect to thiscondition separately.

    &he Company will ma+e payments only after bein# satis*ed, with the necessary bills anddocuments, that the repairs ha)e been a9ected or replacement ha)e ta+en place, as thecase may be. &he Company may, howe)er, not insist for bills and documents in case oftotal loss where the insured is unable to replace the dama#ed e$uipment for reasonsbeyond their control. In such a case claims can be settled on ;Indemnity 0asis

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    part of this %olicy or of the attached Schedule!s" shall bear the same meanin#where)er they may appear.

    %$ If a claim is in any respect fraudulent or if any false declaration is made or used insupport thereof or if any fraudulent means or de)ices are used by the Insured orany one actin# on his behalf to obtain any bene*t under this %olicy, or if a claim is

    made and re'ected and no action or suit is commenced within three months aftersuch re'ection or in case of arbitration ta+in# place as pro)ided therein within threemonths after the arbitrator or arbitrators or umpire ha)e made their award, allbene*ts under this %olicy shall be forfeited.

    $ No admission, o9er, promise, payment or indemnity shall be made or #i)en by oron behalf of the Insured without the written consent of the Company who shall beentitled if they so desire to ta+e o)er and conduct in the name of the Insured thedefense or settlement of any claim for indemnity or dama#e or otherwise and shallha)e full discretion in the conduct of any proceedin# or in the settlement of anyclaim and the Insured shall #i)e all such information and assistance as theCompany may re$uire.

    '$ &he due obser)ance and ful*llment of the terms, pro)isions and conditions of andendorsement on this policy in so far as they relate to anythin# to be done orcomplied with by the Insured and the truth of the statements and answers in thesaid proposal shall be conditions precedent to any liability of the Company to ma+eany payment under this policy.

    (. MISCELLANEOUS

    &he Insured shall

    a" ta+e all practicable steps includin# in the case of machinery lost or stolen orwillfully dama#ed by #i)in# of immediate notice to the %olice to reco)er anyproperty lost or stolen and in the case of theft or willful dama#e to disco)er the

    #uilty person or persons.

    b" produce or #i)e access to any property alle#ed to be dama#ed and the Insured shallbe bound to satisfy the Company by such reasonable e)idence as the Company mayre$uire that the loss destruction or dama#e in respect of which a claim is made hasactually arisen from one of the ris+s insured.

    ). O!LI*ATIONS OF THE INSURED+

    #$ &he insured shall ta+e all reasonable steps to maintain the insured property in e=cientwor+in# order and to ensure that no item is habitually or intentionally o)erloaded. &heInsured shall fully obser)e the manufacture:s instructions for operatin#, inspection ando)erhaul, as well as #o)ernment, statutory, municipal and all other bindin# re#ulations

    in force concernin# the operation and maintenance of the insured plant and machinery4

    %$ &he Company

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    i" aterial chan#e in the ori#inal ris+,ii" Alteration, modi*cation or addition to an insured item,iii" 2eparture from prescribed operatin# condition, whereby the ris+ of loss or dama#e

    increases.i)" Chan#e in the Insured:s interest !such as discontinuation or li$uidation of the

    business or bein# placed in recei)ership" ta+in# place.

    &he %olicy shall be )oid unless its continuance be a#reed by endorsement si#ned bythe Company.

    ,. DUTIES FOLLOWIN* AN ACCIDENT

    In the e)ent of any occurrence which mi#ht #i)e rise to a claim under this policy theInsured shall

    a" Immediately notify the Company by telephone or tele#ram as well as in writin#, #i)in#an indication as to the nature and e(tent of loss or dama#e.

    b" ta+e all reasonable steps within his power to minimi5e the e(tent of the loss or

    dama#e or liability4

    c" %reser)e the dama#ed or defecti)e parts and ma+e them a)ailable for inspection by ano=cial or sur)eyor of the Company4

    d" 3urnish all such information and documentary e)idence as the company may re$uire.

    &he Company shall not be liable for any loss or dama#e of which no notice and completedclaims form ha)e been recei)ed by the Company within 3ourteen days of its occurrence.

    1pon noti*cation of a claim bein# #i)en to the Company, the Insured may proceed with therepair of any minor dama#e not e(ceedin# Rs. >,?@@8 pro)ided that the carryin# out ofsuch repairs is without pre'udice to any $uestion of liability of the Company and that any

    dama#ed part re$uirin# replacement is +ept for inspection by the Company, but in all othercases a representati)e of the Company shall ha)e the opportunity of inspectin# thedama#e before any alterations, repairs or replacements are e9ected. Nothin# containedherein shall pre)ent the Insured from ta+in# such steps as are absolutely necessary tomaintain the operation of the plant.

    &he liability of the Company under this %olicy in respect of any item of property sustainin#dama#e, for which indemnity is pro)ided, shall cease if the said item is +ept in operationwithout bein# repaired to the satisfaction of the Company.

    -. OTHER INSURANCES

    If at the time any claim arises under this %olicy there is any other insurance co)erin# the

    same loss dama#e or liability, the Company shall not be liable to pay or contribute morethen its rateable proportion of such loss dama#e or liability.

    . POSITION AFTER A CLAIM

    a" &he Insured shall not be entitled to abandon any property to the Company whetherta+en possession of by the Company or not.

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    b" As from the day of the loss the Sum Insured for remainder of the period of insurance isreduced by the amount of the compensation. &o pre)ent under insurance durin# theremainder of the current period of insurance the amount insured must be reinstated.

    &he premium will be calculated prorata from the day the repaired item is a#ain put towor+. 3or subse$uent periods of insurance the ori#inal indemnity and premium area#ain in force unless circumstances 'ustify an alteration.

    /. TRANSFER OF INTEREST

    &he insurance #ranted by this %olicy shall cease to attach to any items described in theSchedule the interest in which shall pass from the Insured otherwise than by will oroperation of law, unless the consent of the Company for the continuance of the insuranceshall be obtained and si#ni*ed by endorsement hereon.

    10. TERMINATION OF INSURANCE

    &his insurance may be terminated at any time at the re$uest of the Insured, in which case

    the Company will retain the premium calculated at the customary short period rate for thetime the policy has been in force. &his insurance may also at any time be terminated atthe option of the Company, by ? days notice to that e9ect bein# #i)en to the insured, inwhich case the Company shall be liable to repay on demand a rateable proportion of thepremium for the une(pired term from the date of the cancellation.

    11. RECOURSE

    &he Insured shall at the e(pense of the Company do and concur in doin# and permit to bedone, all such acts and thin#s as may be necessary or re$uired by the Company inendorsin# any ri#ht or remedies or of obtainin# relief or indemnity from parties !otherthan those insured under this %olicy" to which the Company shall be or would becomeentitled or subro#ated upon their payin# for or ma+in# #ood of any loss or dama#e under

    this %olicy, whether such acts and thin#s shall be or become necessary or re$uiredbefore or after the Insured:s indemni*cation by the Company.

    1. AR!ITRATION

    If any dispute or di9erence shall arise as to the $uantum to be paid under the policy!liability bein# otherwise admitted" such di9erence shall independently of all other$uestions be referred to the decision of a sole arbitrator to be appointed in writin# by theparties to or if they cannot a#ree upon a sin#le arbitrator within B@ days of any partyin)o+in# arbitration the same shall be referred to a panel of three arbitrators, comprisin#of two arbitrators, one to be appointed by each of the parties to the dispute8 di9erenceand the third arbitrator to be appointed by such two arbitrators and arbitration shall beconducted under and in accordance with the pro)isions of &he Arbitration and Conciliation

    Act, D.It is clearly a#reed and understood that no di9erence or dispute shall be referable toarbitrations as herein before pro)ided, if the Company has disputed or not acceptedliability under or in respect of this policy.

    It is hereby e(pressly stipulated and declared that it shall be a condition precedent to anyri#ht of action or suit upon this policy that award by such arbitrator8 arbitrators of theamount of the loss or dama#e shall be *rst obtained.

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