Construction All Risk Insurance Conditions No. 737

Transcription

1 Approved by the Board Valid from Table of Contents I. Material Damage Insurance 1. Additional Definitions 2 2. Material Damage Insurance Object 2 3. Material Damage Insurance Event 2 4. Material Damage Insurance Exclusions 2 5. insurance Value. Sum insured 3 6. under-insurance. Over-insurance. Double Insurance. Deductible 3 7. entry Into Force and Expiry of Insurance Cover. Term of Insurance Cover 3 8. Validity of the Insurance Cover in Case of Annual Volume Contract 3 9. Calculation of the Amount of loss and Insurance Indemnity 3 II. third Party Liability Insurance 4 1. Additional Definitions 4 2. insurance Object of Third Party Liability Insurance 4 3. insurance Event of Third Patrty Liability Insurance 5 4. Third Party Liability Insurance Exclusions 5 5. Third Party Liability Insurance Indemnity Limit 5 6. Calculation of the Amount of Loss. Calculation and Payment of the Insurance Indemnity 5 III. Activities during the Validity of the Insurance Contract and in Case of a Loss Event 5 2. Activities in Case of a Loss Event 5 3. reasons for Decreasing or Refusal to Pay the Insurance Indemnity 6 IV. Additional Terms and Conditions of CAR Insurance 6 737/002 Cover for Cross Liability 6 737/003 Maintenance Visits Cover 7 737/004 extended Maintenance Cover 7 737/006 Cover of Extra Charges for Overtime, Night Work, Work on Public Holidays, Express Freight 7 737/007 Cover of Extra Charges for Airfreight 7 737/010 exclusion of Loss, Damage or Liability Due to Flood and Inundation 7 737/013 property in Off-Site Storage 7 737/100 Cover for Testing of Machinery and Installations 7 737/102 special Conditions Concerning Underground Cables, Pipes and Other Facilities 7 737/113 inland Transit 7 737/115 Cover for Designer s Risk 7 737/117 special Conditions for Laying Water Supply and Sewer Pipes 8 737/119 existing Property or Property Belonging to or Held in Care, Custody or Control by the Insured 8 737/120 Vibration, Removal or Weakening of Support 8 737/121 Vibration, Removal or Weakening of Support 8 V. requirements 8 UAB DK PZU Lietuva Eesti filiaal, Sõpruse pst 145 B-korpus, Tallinn, 13417, Tel , faks , e-post: info@pzu.ee, Reg. Nr , KMKR: EE , SEB Pank SWIFT/BIC: EEUHEE2X IBAN: EE

2 I. Material Damage Insurance 1. Additional Definitions 1.1. Policyholder and insured person Policyholder can be a person who has insurance interest towards a building being constructed or equipment being assembled (e.g. Principal, main contractor and subcontractor) Insured person is a person indicated in the insurance contract whose material interests are insured. Unless provided differently in the insurance contract, the insured persons are the building contractor, Principal and/or owner of the construction object or assembled equipment If the insured person is not indicated in the insurance contract, all parties to the contracts concluded for carrying out the insured works, e.g. Principal, main contractor, subcontractors are considered as insured persons Persons equal to the policyholder are established in Article 8 of the general conditions of the Insurance Contracts Insurance location is a construction site or plot at the address indicated in the insurance contract where construction or assembly works are performed Maintenance works works set forth in the contract for construction services (or any other contract) that the construction company is obliged to perform after signing the report on principal serviceability of the insurance object or a part thereof Defective workmanship activities that cause damages to or destruction of the insurance object due to the insufficient qualifications or experience of the insured or related person Defective materials materials or equipment that are of substandard quality or unsuitable and that do not perform their function as a part of the insurance object at the insurance location; or materials that were damaged due to poor handling at the insurance object or unsuitable storage at the insurance object Faulty design violations of technical construction regulations caused by the designer of the structure in solutions to the project under construction (technical and/or working project) Secured construction site a fenced (closed) territory that is illuminated during dark hours, where entrance and exit of vehicles is checked and that has a 24-hour manned guard or automatic security alarm system with an output to a 24- hour manned guard location or control station of a security company Small tools tools with the mass of up to 50 kg Insurer s right of recourse the claim for compensation of damages against a third person that belongs to the policyholder or insured person will be transferred to the insurer to the extent of the damages indemnified by them First risk insurance the maximum limit of insurance indemnity agreed for the insurance object. This is the highest payable sum per one insurance event in the case of which no under-insurance provisions are applied Safety requirements the obligation to follow the requirements listed in the insurance contract, legal acts and other written requirements specific to the field in order to prevent or minimise the probability of damages Special conditions conditions indicated on the insurance policy and attached to the insurance contract, which extend or restrict the insurance cover set forth in the Construction All Risks insurance conditions. In case of discrepancy between the provisions of the Special conditions and conditions of Construction All Risk insurance, the provisions of the Special conditions shall apply. 2. Material Damage Insurance Object 2.1. The Material Damage insurance object includes any and all construction, assembly, installation, reconstruction, repairs and demolition works set forth in the written contract for services concluded between the Principal and the construction company (hereinafter the Work) The construction materials, assembled equipment, building machinery, building tools and fittings of the construction site located at the insurance location and used for performing the Works are also considered an insurance object The clean-up costs arising from a property insurance event are also an insurance object. The clean-up costs are reasonable and unavoidable costs for demolishing, collecting, packing, removal and utilizing the remains of the insurance object Only the insurance objects indicated in the insurance contract are insured The Insurer and the Policyholder may agree to insure other insurance objects, indicating them on the insurance policy. 3. Material Damage Insurance Event 3.1. The Material Damage insurance event is damages to, destruction or loss of the insurance object at the insurance location due to a sudden and unforeseen event during the validity of the insurance cover due to the reasons not excluded in Article 4 of these insurance conditions or due to any other reason that has been agreed on with Special conditions between the Insurer and Policyholder and indicated on the insurance policy. 4. Material Damage Insurance Exclusions 4.1. In addition to the exclusions set forth in this Chapter, the exclusions set forth in general conditions for insurance contracts will apply. Unless provided differently in the insurance contract, insurance indemnity is not paid for the destruction or loss of, damages to the insured property caused by: full or partial stopping of works; gross negligence damages caused by disregard of the construction design project and/or norms or intentional violation of construction technology; any financial claims (loss of profit, penalties, fines for delay, interests) arising from the violation, amendment of the contract, postponing of the term, withdrawal from the contract, insolvency; Faulty design; defects in construction materials or equipment for which the manufacturer, importer, retailer or commercial lessor is liable; Defective material or Defective workmanship. Damages related to repairs, replacement, elimination of deficiencies of Defective material are not indemnified. If the Defective materials or Defective workmanship cause damages to a good quality part of the insurance object, the insurer shall indemnify the damages caused to the good quality part to the extent established with the insurance contract; oxidation, wear and tear arising from the use or non-use of the insurance object, corrosion, growth of fungus, generation of lime scale, wear of metal, excess humidity, weather conditions, conditions of the outdoor environment or other similar long-term processes; use of equipment or construction materials for other than their intended purpose, incorrect use or use in unusual conditions, disregard of manufacturer s instructions; electrical and mechanical failures of machinery and equipment, breakdown of parts of machinery, insufficient maintenance and oiling, incorrect fuel, freezing of cooling or other liquids, leakage of liquids; damages related to the damages to, destruction or loss of plans, drawings, accompanying documents, money, contracts, reports, securities, bank cheques or other documents; damages of destruction or loss of or damages to packaging material (containers, boxes, pallets etc.) are not indemnified; damages of theft and/or vandalism are not indemnified if there are no traces of breaking into a building or territory or if the theft has occurred from a unlocked building or unsecured construction site; damages to, destruction or loss of the insurance object that was discovered only during inventory checks or inspections; damages to or destruction of structures located in the insurance location that belong to or are in the legal possession of developers, construction contractors or subcontractors are not indemnified; destruction of or damages to land vehicle with the right to be used in road traffic, water or air craft; insurance indemnity is not paid if the Policyholder, person equal to the policyholder, insured person or beneficiary caused the occurrence of the insurance event intentionally or due to gross negligence; insurance indemnity is not paid if the person who caused damages was in the state of intoxication by alcohol, drugs or toxic substances at the time of causing the damages; 2

3 nuclear weapon, war or a situation similar to military operation, uprising, mass disorder, strike, interruption of work, terrorism, nuclear energy or radioactivity; seizure, confiscation or destruction of property by the order of authorities; earth quake or seismic activity; damages caused by pollution of the environment, i.e. soil, air and water; damages caused by asbestos; any type of failures in data processing system, misuse of data or electronic data processing methods and applications, computer virus attacks, negligence in replacing or updating data in the electronic data processing system of the insured person; if an event does not meet the characteristics of indemnifiable damages; if the damages did not occur suddenly and unforeseeably. 5. Insurance Value. Sum insured 5.1. The insurance value of Work is the final cost of the construction or assembly object after the completion of the object indicated on the insurance policy, including the cost of construction materials and equipment, their transportation costs, service fees and fees for work, possible customs duties and taxes The insurance value of buildings and equipment is their reinstatement value, except if the insured property contains extremely depreciated assets (i.e. assets depreciated by 70% or more. The methodology for establishing depreciation is set forth in Article ), the sum of indemnity is calculated and insurance indemnity paid on the basis of the actual value of property Reinstatement value: a) For buildings reinstatement value, the cost of rebuilding a building with the same purpose and same design, measurements and working quality with the help of same or equal materials and location-specific equipment, including building and project design. b) For equipment new value, i.e. costs related to the acquisition or manufacture of new assets with the same purpose and same type and class, same quality and capacity and similar other parameters, including transport and/or installation costs and other necessary costs. If equipment with the same parameters can no longer be purchased or such equipment is not available for other reasons, or if the acquisition costs are unreasonably high, the new value shall be costs related to the acquisition or manufacture of equipment as similar as possible to the insured equipment, including transport and/or installation costs and other necessary costs from which the value of technological updates has been deducted; c) For building materials costs related to new acquisition or manufacture of the property, but not more than the average market value that can be obtained from the sale of the property at free market; Actual value for buildings and equipment i.e. reinstatement or new value less the depreciation. The depreciation is established on the basis of the age of the property, intensity of use of the property, recommendations of the manufacturer and observations of the person assessing the property. Other methods may be established in the insurance contract for determining the actual value The sum insured is the maximum payment sum per an insurance event agreed between the parties. The sum insured is established in the insurance policy or elsewhere in the insurance contract for each group of insurance objects or separately for each insurance object The sum insured for Work is equal to the insurance value of Work. In the case of annual volume insurance contract, the sum insured must be equal to the total value of construction works carried out during the entire period of validity of the insurance contract If the parties agree on additional covers or insuring additional objects, the sum insured for each additional cover or object shall be the agreed indemnity limit on the basis of the principal of first risk The sum insured is decreased by the paid insurance indemnity. 6. Under-insurance. Over-insurance. Double Insurance. Deductible 6.1. Under-insurance. If the sum insured set forth in the insurance contract is smaller than the insurance value of the insured property on the day of the insurance event, the condition of under-insurance applies: the amount of loss is multiplied by the quotient of the sum insured and insurance value of the insurance object. Under-insurance is not applied if the principle of first risk insurance has been established in the insurance contract If the insurance value of the insured work increases during the insurance period by up to 10% as compared to the insurance value as at the moment of concluding the insurance contract, under-insurance is not applied. In such case, the insurance indemnity must not exceed the sum insured set forth in the insurance contract Over-insurance. If the sum insured set forth in the insurance contract is higher than the insurance value (hereinafter overinsurance ), the insurance indemnity subject to payment on the basis of this insurance contract will not exceed the insurance value Double insurance. If the insurance indemnity is payable to the insured person for the same damages under several insurance contracts (hereinafter double insurance ), each insurer will pay indemnity according to the proportion of their liability, whereas the total sum of the insurance indemnity may not exceed the amount of damages If in the case of property insurance, several deductibles have been established and more than one insurance object of the property insurance indicated on one and the same insurance policy and located at the same insurance location are destroyed or damaged as a result of the same insurance event, only one of the higher deductibles is applied, unless provided differently on the policy. 7. Entry Into Force and Expiry of Insurance Cover. Term of Insurance Cover 7.1. The following conditions apply in addition to Articles 4 and 5 of the General insurance conditions: The insurance cover begins on the date when the construction period begins as indicated in the insurance contract, but not before the beginning of Works The insurance cover for the construction period ends at the moment of delivery and receipt of the Works covered with the insurance contract, but not later than the last day of the construction period indicated in the insurance contract. 8. Validity of the Insurance Cover in Case of Annual Volume Contract 8.1. The annual volume contract is an insurance contract for construction and assembly works on the basis of which Works declared to the insurer during the insurance period are insured The general conditions applicable for all the insurance objects of the annual volume contract are agreed on with the annual volume contract The insurance objects are the Works of single objects submitted to the insurer of the declaration form established by the insurer during the insurance period, which meet the following conditions: The construction and/or assembly works are started during the insurance period The final cost of Works does not exceed the maximum cost of a single object set forth in the insurance contract The construction period does not exceed 12 calendar months The confirmation of its declaration has been sent by the insurer to the policyholder in a format that can be reproduced in writing The sums insured set forth in the annual volume contract are applicable as a total for all declared insurance objects The insurer is not obliged to indemnify damages that have occurred on a single object or to a single object not declared to the insurer. 9. Calculation of the Amount of loss and Insurance Indemnity 9.1. The amount of loss is: If the insurance object has been damaged costs of repairs of the property that are necessary for restoring the pre-insurance 3

4 event condition and that do not exceed the insurance value and sum insured of that property on the date of calculation of the amount of loss. Property is considered as damaged if its repairs are possible and economically reasonable If the insurance object has been destroyed the actual value of the insurance object before the occurrence of the insurance event up to the highest sum foreseen in the insurance contract. The property is considered destroyed if its repairs are not technically possible or economically reasonable. Repairs of the property are considered economically unreasonable if the necessary repairs costs are equal to or higher than the reinstatement value of the damaged property The amount of loss does not include damages that may occur if the insurance event has not taken place, i.e. costs of updating, repairing, regular maintenance and current repairs of the insurance object The amount of loss includes partial repairs costs only if the repairs carried out are part of the final repairs that do not increase the total cost of the repairs works If the post-insurance event restoration works of the insurance object are carried out by the Policyholder or insured person, the amount of loss must not include profit Amount of loss according to special conditions damages are indemnified on the basis of the Special conditions of insurance conditions only if the sums insured arising from the additional agreements set forth in such Special conditions are indicated on the insurance policy The insurance indemnity for the destroyed or damaged property is calculated on the basis of the amount of loss, considering double insurance, under-insurance and overinsurance. The deductible set forth in the insurance contract or insurance conditions will be deducted from the sum of the calculated insurance indemnity. The insurance indemnity paid for each insurance object (item) may not exceed the sum insured of the respective insurance object (item) The value added tax calculated from the works carried out, materials purchased and other expenses will be included in the amount of loss only if it is included in the insurance value and sum insured of the property at the time of concluding the contract and the person entitled to the insurance indemnity has no right to settle or obtain reimbursement of the respective tax The parties to the insurance contract may hire experts and use their conclusions regarding the causes of damages, extent of damages and establishing of the amount of insurance indemnity The insurer will pay the insurance indemnity only after receiving invoices and other documents that indicate that the repairs have been carried out and the damaged Works have been replaced, or in which the insured proves that the repairs will be carried out on the damaged Works or if the damaged parts of the insurance objects are replaced If a part of the damages caused to the insured are indemnified by the guilty party who caused the damages, the insurance indemnity shall be paid in the sum from which the sum paid by the person who caused the damages has been deducted. II. Third Party Liability Insurance 1. Additional Definitions 1.1. Third Party Liability obligation to compensate property damages and/or personal injury caused to a third person by the actions or inaction of the insured person Claim a written application on the basis of which a third person applies for compensation of material damage and/or personal injury caused by the insured person and which the insurer can use as a basis for indemnifying damages Personal injury the following damages caused to a third person through bodily injury, damages to health or death of a third person: Reasonable and necessary medical expenses expenses that are related to transporting, placing, care, treatment and rehabilitation of a third person at a treatment and rehabilitation institution, taking care of a third person, purchasing medical products, treatment-related diet, treatment at home (including costs on visiting a medical treatment or rehabilitation institution), and purchasing or renting prostheses and endoprostheses or technical accessories Damages arising from temporary incapacity for work of a third person loss of profit during the period of incapacity for work verified by a medical institution that includes the following: the average salary of a third person considered as working as on the day of the insurance event calculated according to the procedure set forth in the law, from which the sick pay and sickness benefits paid to the third person after the occurrence of physical harm have been deducted. In the case of a third person who is a sole proprietor on the date of the insurance event sum that is equal to the difference between the taxable revenue of the previous calendar year (preceding the insurance event) and revenue received during the year of the third person s incapacity for work, from which the sickness benefits paid to the third person after the occurrence of physical harm have been deducted Damages arising from permanent incapacity for work of a third person change in income is determined on the basis of loss of profit that is calculated on the basis of the procedure set forth in Article or of Section 3 of these insurance conditions and from which the revenue received from work (if received) and/or pension paid from the national social security and/or supports paid from the local municipality budget are deducted. The insurance indemnity for the damages related to the incapacity for work of a third person is paid once a month (unless agreed differently with the insurer) during the duration of the incapacity for work of the third person; if the third person who is incapacitated for work is able to acquire a new area of specialisation once, in order to find work suitable for his or her health status, the insurer will cover the reasonable and necessary expenses for acquiring vocational education, if the relevant level of education is not higher than the level of education that the third person had as on the date of occurrence of the insurance event. The insurer will cover the aforementioned expenses on the basis of an agreement with the third person Damages arising from the death of a third person direct funeral expenses and loss or decreasing of support of the dependant(s) of the deceased person are indemnified according to the procedure established with the legal acts of the Republic of Estonia Property damage damages caused to a third person as a result of damages to or destruction of movable or immovable property belonging to the third person are indemnified: Reasonable costs of repairs of the damaged object if such costs do not exceed the actual value of the damaged object; Reasonable costs on acquiring an object equal to the destroyed object, which do not exceed the actual value of the destroyed object; 1.5. Third person a person who is not the Policyholder, person equal to the policyholder, insured, person who commissioned the object, contractor, sub-contractor or any other party to the construction contract or a person operating according to their instructions, irrespective of the fact if they are considered as insured in the insurance contract. 2. Insurance Object of Third Party Liability Insurance 2.1. The object of Third Party Liability insurance is the liability of the insured person for pecuniary damages illegally caused to a third person, which are caused during the Works indicated in the insurance contract and by the Insured during the construction period before the completion and delivery of Works according to the insurance conditions set forth in Section 1 of the insurance conditions (construction period liability insurance) If the maintenance period insurance cover has been agreed in the insurance contract within the Material Damage insurance cover, the Third Party Liability insurance object shall also be the liability of the insured person for pecuniary damages illegally caused to a third person, which are caused during the maintenance period indicated in the insurance contract and during the course of maintenance works or elimination of construction or assembly defects covered with this insurance contract (maintenance period liability insurance) The maintenance period liability insurance is an insurance cover during activities. Damages arising from nonperformance of maintenance works or their substandard performance are not indemnified. 4

5 3. Insurance Event of Third Patrty Liability Insurance 3.1. The written Claim for indemnity against the insured person submitted by a Third person is considered as an insurance event if all of the following conditions are simultaneously met: The Claim for indemnity was submitted in relation to damages that occurred during the validity of the insurance contract and the claim for indemnity was submitted to the Insurer during the construction period indicated in the insurance contract or no later than during one year from the end of the construction period indicated in the insurance contract. In case of maintenance period liability insurance, if the Claim for indemnity was submitted to the Insurer in relation to the damages caused during the validity of the maintenance period indicated in the insurance contract and the claim for indemnity was submitted to the insurer during the maintenance period indicated in the insurance contract or no later than during one year from the end of the maintenance period indicated in the insurance contract The damages are caused as a result of the activities of the Insured in relation to the construction of the building, construction or assembly works indicated in the insurance contract The Claim for indemnities was submitted in relation to a loss event that occurred at the insurance location or its immediate vicinity The Claim for indemnities is submitted for damages for which the Policyholder and/or insured persons are liable according to the applicable legal acts There is causal relation between the illegal action of the policyholder and/or insured and the damages caused All obligations arising from one and the same causing of damages are considered one insurance event for which only one sum insured is applied. The time of occurrence of the insurance event is the time of occurrence of first damages. 4. Third Party Liability Insurance Exclusions 4.1. Claims for indemnity of the following damages are not subject to indemnification: caused by the reasons listed in Article 4 of Section 1 of these conditions; caused to any property at the insurance location; caused by the damages to or destruction of subterranean cable, pipeline or any other subterranean utility line; caused by vibration, removal or weakening of support elements; caused to a related person; mutual claims of insured persons; caused to the insured person due to reason that without the written consent of the Insurer, the insured partially compensates the damages or recognises a claim, except in cases where the amount of damages compensated by the insured and the basis for the claim for indemnity of the third person is correct without any concession; if the insurance object defined in Section 1 of these insurance conditions has been put to use before the signing of the instrument of delivery and receipt of the works; the Insurer is not obliged to indemnify non-patrimonial (moral) damages; that are related to financial loss of the third person; claims that would be subject to indemnification according to the Motor Third Party Liability Insurance Act or another insurance contract; claims that are based on penalties, interests, fines for delay imposed on the insured and other sanctions added to the damages; damages arising from the contractual liability of the insured person; 4.2. The Insurer and the Policyholder may agree on extending the insurance cover under Special conditions. The Special condition is applicable only if it is indicated on the insurance policy. 5. Third Party Liability Insurance Indemnity Limit 5.1. The indemnity limit is a sum agreed between the Insurer and the Policyholder and indicated in the insurance contract to the extent of which damages caused as a result of an insurance event are indemnified The indemnity limit is the maximum payable indemnity for all different claims arisen during the insurance period The indemnity limit is decreased by the paid insurance indemnity. 6. Calculation of the Amount of Loss. Calculation and Payment of the Insurance Indemnity 6.1. The following are indemnified as insurance indemnity that does not exceed the indemnity limit indicated on the insurance policy and considering the deductible: Direct material damage (personal injury and/or property damage) caused to a third person as a result of an insurance event; Legal costs the payment of which is ordered from the insured person by the court; Reasonable and necessary legal assistance and court expenses made by the insured person and previously approved by the Insured; Reasonable legal assistance costs made by the injured party that are related to damages caused by the insured person and establishing the amount of loss Reasonable and necessary expenses for decreasing damages made after the insurance event according to the instructions of the Insurer are additionally indemnified. III. Activities during the Validity of the Insurance Contract and in Case of a Loss Event 1. Rights and Obligations of the Policyholder, Insured, Beneficiary and Insurer during the Insurance Period 1.1. The obligations of the Policyholder are extended also to persons related and equal to the Policyholder (hereinafter the Policyholder). In addition to the rights and obligations described in the general conditions for insurance contracts of the Policyholder and Insurer, the Policyholder shall be obliged to: inform the insurer within 10 (ten) working days if the Policyholder concludes an insurance contract with another Insurer for the same property and the risk already insured with the insurance contract. The Policyholder must present data on the other Insurer, property insured with another contract, sums insured and risks insured in the notice sent to the Insurer; inform the Insurer within 5 (five) working days if the value of the Work that is the insurance object changes by more than 10%; notify of the changes in the time of transfer of the building or construction or assembly works (extension of the construction period as compared to that indicated in the insurance contract) at first opportunity. If the time of Works is extended over the construction period indicated in the insurance contract, the construction period under insurance cover may be extended by an agreement between the Insurer and the Policyholder. Upon extending the insurance period, the Insurer has the right to an additional insurance premium; inform the Insurer of the circumstances that may be the basis for submitting a Claim against a Policyholder (e.g. violation of obligations, causing of damages, initiation of court proceedings) without delay but not later than within 5 (five) working days. 2. Activities in Case of a Loss Event 2.1 In addition to the rights and obligations of the Policyholder and Insurer set forth in the General conditions for insurance contracts, the Insurer has the right to: postpone the obligation to pay insurance indemnity: a) until the Policyholder submits documents to verify the insurance event; b) until the Policyholder submits documents to verify the amount of loss; c) if a civil claim is submitted or criminal or administrative proceedings are started against the Policyholder or insured person or person related to them, if the court ruling can be used as a basis for determining if an event is an insurance event and/or the amount of loss and 5

6 other circumstances influencing the size and payment on insurance indemnity established in the insurance contract or normative acts. In such case the Insurer must decide the payment of the insurance indemnity after receiving an official confirmation regarding suspension or termination of the legal process in this matter If the amount of loss has increased due to fraud, the Insurer has the right to request cancellation of the insurance contract and compensation of the expenses made by them Upon payment of the insurance indemnity, the Insurer has the right to withhold from the indemnity, the outstanding insurance premiums foreseen in the insurance contract irrespective of the fact if the date of payment of the insurance premium has arrived or not After the payment of the insurance indemnity, the Insurer will have the right of recourse against third parties who are guilty of or responsible for the damages Upon the occurrence of an insurance event, the Policyholder is obliged to, in addition to the rights and obligations of the Policyholder and Insurer set forth in the General conditions for insurance contracts: inform the competent authorities of the event of loss (police of theft, fire and rescue board of fire, police and rescue board of explosion); notify the Insurer of the occurrence of a loss event without delay but not later than within 5 (five) working days. The notice must contain accurate information on all known circumstances related to the loss event; protect damaged property or its remains until the arrival of the Insurer to inspect the insured property, except if the representative of the Insurer confirms in writing that it is not necessary. If the representative of the Insurer gives any instructions regarding protecting the property or its remains, such instructions must be fulfilled. Expenses related to these instructions will be included in the amount of loss; apply any and all reasonable measures for preventing increasing of the damages, rescuing the insured object and decreasing damages immediately and according to possibilities and circumstances. Such expenses are included in the amount of loss, irrespective of the fact if these costs helped to achieve the desired result or not; the Policyholder must submit to the Insurer any and all available documents, evidence and full information necessary for filing an action against persons responsible for damages and cooperate in executing the right of recourse transferred to the Insurer; submit any and all available documents and data regarding the condition and decrease of value of the insurance object. By request from the Insurer, the Policyholder or the insured person must also submit documents regarding the circumstances and consequences of the insurance event as well as the amount of loss that the policyholder or the insured person have the right to receive on the basis of the law or other legal acts; if court proceedings are initiated for the compensation of damages, the Insurer must be immediately notified thereof, even if the event of loss has been previously notified; 2.3. Additional obligations of the Policyholder in the event of Third Party Liability insurance damages: The Policyholder must notify the Insurer if a claim for indemnities has been submitted against them immediately, but not later than within 5 (five) working days. The notice must be submitted in a format that can be reproduced in writing The Policyholder is not entitled fully or partially to recognise and/or satisfy a claim for indemnity submitted against them without the Insurer s previous consent Immediately take measures for preventing increase of the Claim for indemnity Submit any and all documents regarding the circumstances and size of the Claim for indemnity. 3. Reasons for Decreasing or Refusal to Pay the Insurance Indemnity 3.1 The Insurer has the right to decrease the insurance indemnity: If the Policyholder, insured person or beneficiary has failed to compliantly perform the obligations set forth in Articles 1.1.2, and of Section 3 of these conditions and as a result the damages were increased The Policyholder and/or insured person and/or beneficiary fail to apply reasonable measures that would allow claiming the indemnified sum from the person liable for the damages or operate in a manner that makes executing the right of recourse by the insurer more difficult If the Policyholder, beneficiary and insured fail to perform the requirements of Article of Section 3 of these insurance conditions If the Policyholder, insured and beneficiary and related persons fail to perform requirements of Articles and/or of Section 3 of these insurance conditions, except if it has been proven that the insurer learned of the insurance event in due time or if the notice of the insurance event does not influence the insurer s obligation to pay insurance indemnity The Policyholder and/or insured person and/or beneficiary fail to apply reasonable measures for preventing damages or decreasing their scope The Policyholder and/or insured person and/or beneficiary fail to perform the conditions of the insurance contract or the reasonable instructions of the Insurer or Safety requirements that are related to decreasing the insurance risk The Policyholder and/or insured person and/or beneficiary do not enable the insurer proper assessment of the extent and reasons of damages No insurance indemnity is paid: The Insurer is exempt of the duty to pay insurance indemnity if the case involves actions in bad faith, intent or gross negligence, if the insurance event took place as a result of the intentional activities of the Policyholder, insured person or beneficiary If the Claim for indemnities is based on fraud, i.e. the Policyholder, persons related to the Policyholder, insured person or the beneficiary have tried to mislead the Insurer by distorting facts or by submitting incorrect, misleading or incomplete data, thereby unreasonably increasing the extent of loss If the fact of occurrence of the loss event is not confirmed by authorities referred to in Article of Section 3 of these insurance conditions If the Policyholder, insured person or beneficiary have received full compensation from the person who caused the damages If the insurance contract has been concluded after the event of loss The Insurer must prove existence of the circumstances that exempt them from the payment of the insurance indemnity or cause decreasing of the insurance indemnity If the Insurer decides not to pay the insurance indemnity or a part thereof, the Insurer must assess the guilt of the policyholder, importance of violation, causal relationship between the violation and the consequences and the extent of damages caused with the violation in total losses. IV. Additional Terms and Conditions of CAR Insurance 737/002 Cover for Cross Liability exclusions, provisions and conditions contained in the Insurance policy or endorsed thereon and subject to the Insured having paid the agreed extra premium, the Third Party Liability cover of the Insurance policy shall apply to the insured parties named in the Schedule as if a separate Insurance 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 Insurance 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 Employers 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 Insured event the Liability limit stated in the Insurance Policy. 737/003 Maintenance Visits Cover exclusions, provisions and conditions contained in the Insurance policy or endorsed thereon and subject to the Insured having paid the agreed extra premium, this Insurance contract shall be extended for the Maintenance period specified hereunder to cover solely 6

7 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. 737/004 Extended Maintenance Cover exclusions, provisions and conditions contained in the Insurance policy or endorsed thereon and subject to the Insured having paid the agreed extra premium, this Insurance contract shall be extended for the Maintenance period specified hereunder to cover loss 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 issued. 737/006 Cover of Extra Charges for Overtime, Night Work, Work on Public Holidays, Express Freight exclusions, provisions and conditions contained in the Insurance 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 Insurance 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. 737/007 Cover of Extra Charges for Airfreight exclusions, provisions and conditions contained in the Insurance 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 are incurred in connection with any loss of or damage to the insured items recoverable under the Insurance policy. Provided further that the maximum amount payable under this Endorsement in respect of airfreight shall not exceed the amount stated in the Insurance policy during the Insurance period. 737/010 Exclusion of Loss, Damage or Liability Due to Flood and Inundation endorsed thereon, the Insurers shall not indemnify the Insured for loss, damage or liability directly or indirectly caused by or resulting from flood and inundation. 737/013 Property in Off-Site Storage It is agreed and understood that, notwithstanding the terms, exclusions, provisions and conditions of the Insurance policy or any Endorsements agreed upon and subject to the Insured having paid the agreed extra premium, Section I of the Insurance policy shall be extended to cover loss of or damage to property insured (except property being manufactured, processed or stored at the manufacturer s, distributor s or supplier s premises) in off-site storage within the territorial limits as stated in the Insurance policy. 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. 737/100 Cover for Testing of Machinery and Installations endorsed thereon, the Insurance period shall be extended to include a test operation or a test loading but not beyond four weeks from the date of commencement of the test. If, however, a part of a plant or one or several machine(s) is (are) tested and/or put into operation or taken over, the cover for the particular part of the plant or machine(s) and any liability resulting therefrom ceases whereas the cover continues for the remaining parts to which the above does not apply. It is further agreed and understood that for the machinery and installations undergoing a test, exclusions and of the Exclusions to Section I of the Insurance policy are deleted and the following exclusion shall apply: loss or damage due to Faulty design, defective material or casting, bad workmanship other than faults in erection; In the case of second-hand items, the insurance hereunder shall, however, cease immediately on the commencement of the test. 737/102 Special Conditions Concerning Underground Cables, Pipes and Other Facilities 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. 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 in the Insurance policy, 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 in the Insurance policy. The Insurance 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 cove. 737/113 Inland Transit It is agreed and understood that, otherwise subject to the terms, endorsed thereon and subject to the insured having paid the agreed extra premium, Section I of this insurance shall be extended to cover loss of or damage to the property insured whilst in transit to the contract site other than on waterways or by air within the territorial limits of provided that the maximum amount payable under this Endorsement does not exceed Sublimit per conveyance as stated in the Insurance Policy. 737/115 Cover for Designer s Risk exclusions, provisions and conditions contained in the Insurance policy or endorsed thereon and subject to the Insured having paid the agreed extra premium, exclusion under Exclusions of Section I of the Insurance conditions shall be deleted and exclusion replaced by the following wording: The cost of replacement, repair or rectification of loss or damage to items due to Defective material and/or Defective workmanship and/or Faulty design, but this exclusion shall be limited to the items immediately 7

8 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 Defective workmanship and/or Faulty design. 737/117 Special Conditions for Laying Water Supply and Sewer Pipes exclusions, provisions and conditions contained in the Insurance policy or endorsed thereon, the Insurers shall indemnify the Insured for loss, damage or liability due to the flooding or silting of pipes, trenches or shafts only up to the maximum length of open trench stated in the Insurance policy, partially or completely excavated, for any one Insured event. The Insurers shall be liable only if 1. the pipes, immediately after laying, have been secured in such a manner by backfilling that they cannot be displaced if the trench is flooded; 2. the pipes, immediately after laying, have been closed to prevent water, silt or the like from penetrating; 3. the trenches of tested pipe sections have been backfilled immediately upon completion of the pressure test. 737/119 Existing Property or Property Belonging to or Held in Care, Custody or Control by the Insured exclusions, provisions and conditions contained in the Insurance policy or endorsed thereon and subject to the Insured having paid the agreed extra premium, Section I of this insurance shall be extended to cover loss of or damage to the existing property or property belonging to or held in care, custody or control by the Insured caused by or arising out of the construction or erection of the items insured under Section I. Insured property and its Sum insured is stated in the Insurance policy. The Insurers will only indemnify the Insured for loss of or damage to the insured property provided that prior to the commencement of construction its condition is sound and the necessary safety measures have been taken. In respect of loss or damage caused by vibration or by the removal or weakening of support Insurers will only indemnify the Insured for loss or damage as a result of a total or partial collapse of the insured property, and not for superficial damage which neither impairs the stability of the insured property nor endangers its users. The Insurers will not indemnify the Insured for - loss or damage which is foreseeable having regard to the nature of the construction Work or the manner of its execution, - the costs of loss prevention or minimization measures which become necessary during the Insurance period. 737/120 Vibration, Removal or Weakening of Support exclusions, provisions and conditions contained in the Insurance policy or endorsed thereon and subject to the Insured having paid the agreed extra premium, Section II of this Insurance policy 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 will 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 will 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; - the Insured if required shall before commencement of construction and at his own expense prepare a report on the condition of any endangered property or land or building. The Insurers will 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 Insurance period. 737/121 Special conditions Concerning Piling Foundation and Retaining Wall Works endorsed thereon, the Insurers shall not indemnify the Insured in respect of expenses incurred 1. for replacing or rectifying piles or retaining wall elements a) which have become misplaced or misaligned or jammed during their construction; b) which are lost or abandoned or damaged during driving or extraction; or c) which have become obstructed by jammed or damaged piling equipment or casings; 2. for rectifying disconnected or declutched sheet piles; 3. for rectifying any leakage or infiltration of material of any kind; 4. for filling voids or for replacing lost bentonite; 5. as a result of any piles or foundation elements having failed to pass a load bearing test or otherwise not having reached their designed load bearing capacity; 6. for reinstating profiles or dimensions. This endorsement shall not apply to loss or damage caused by natural hazards. The burden of proving that such loss or damage is covered shall be upon the Insured. V. Safety Requirements 1. The Safety Requirements set forth in the insurance conditions are applicable in addition to the requirements set forth in legal acts. The Policyholder, insured person and legal possessor of the insurance object are obliged to be informed of and perform the legal acts (including safety requirements) concerning the insurance object. These Safety Requirements are applicable for Material Damage insurance as well as Third Party Liability insurance General requirements The Works must be carried out according to the legal acts of the field, construction standards and design project, by following working drawings, installation guidelines, instructions of the project designer and good building practices The Works must be performed with the building permit foreseen with legal acts or written consent of the local municipality Performing the Works must be documented The construction site must be fenced and marked in a manner that hinders entry of third persons to the construction site During the performance of Works, measures must be applied for ensuring safety road users in the immediate vicinity of the construction site Upon occurrence of the risk of damages, protection and rescue activities must be undertaken (e.g. property must be relocated if it could be damaged by rise in water level, storm and landslide) The uncovered openings (open roof, window holes etc.) of a building must be covered with a temporary cover in order to prevent damages caused by precipitation. The cover must be precipitation proof, securely fastened and drainage of rainwater must be ensured The frequency of occurrence and scope of weather conditions (e.g. flood) foreseen for the insurance location must be taken into account upon project design of the insurance object, planning and carrying out Works Fire safety and work involving an open flame A person responsible for fire safety must be assigned for the construction A written action plan must be prepared for the fire, of which all employees must be briefed. The action plan must include instructions for rescuing persons, notifying of fire, using basic fire extinguishing equipment and other actions in case of fire The insurance location must be equipped with basic fire extinguishing equipment according to the legal acts. The basic fire extinguishing equipment must be in working order at all times. The locations of basic fire extinguishing equipment must be clearly marked and easily accessible Work involving an open flame. Legal acts must be followed when performing work involving an open flame. In order to organise work involving an open flame at a temporary working site a permit for work involving an open flame will be issued. Upon performing work involving an open flame the surrounding area will be cleaned of flammable waste and objects and the flammable structures located in the vicinity of the working site are covered with a cover or an inserted wall or sprayed with water. The working site must be equipped with basic fire extinguishing 8

9 equipment. Supervision must be ensured at the location of work involving an open flame and its vicinity during work and after their completion. The aforementioned precautions are applicable for such work involving an open flame as welding, cutting with flame, polymer covering with an open flame, metal cutting, working with hot air jet and other works during which the temperature reaches over 200ºC or spark is generated When performing blasting operations, the applicable special requirements must be followed When handling substances of high flammability or explosive substances, requirements established for their handling must be followed The sources of fire extinguishing water must be clearly indicated and annually accessible Cleanliness and maintenance In order to ensure fire safety the rooms and territory of the insurance location must be cleaned of flammable garbage and waste Flammable waste must be kept at safe distance or fire-proof storage facilities When performing Works measures preventing spreading of dust must be taken. The area of the building where the Works are performed must be separated from the rest of the building in order to prevent spreading of harmful effects (dust, spraying, spark, spreading of fire etc.) Smoking. Smoking is allowed only at places indicated with a sign allowing smoking. The place of smoking must be equipped with ashtrays that meet the safety requirements that are regularly emptied. Smoking is forbidden in places with flammable or explosive substances Storage When choosing the storage locations, flammability of the construction materials and the probability of the spreading of fire must be taken into account Flammable and highly flammable materials must be stored separately from other materials Flammable substances, materials, machinery or equipment must not be stored near walls of the building. The width of the clearance must meet the requirements established with the legal acts of the Republic of Estonia Access must be ensured to the place of storage of construction materials Construction materials must be stored in a manner that they would be protected against moisture arising from the ground as well as weather conditions. Materials sensitive to weather conditions must be protected (covered, ensure the necessary ventilation etc.) Flammable liquids and highly flammable substances can be kept at the Work site in minimum quantities that are necessary for performing Work tasks and that do not exceed the need of one working day Flammable liquids and highly flammable substances must be kept in sealed containers Using electrical devices and temporary heating devices When using temporary heating devices, the instructions for use of the devices must be followed. Temporary heating devices must not be left unattended. When installing heating devices, their mandatory safety distance must be followed. The temporary heating devices must be fastened securely and they must not be covered Failures of electrical devices must be eliminated without delay. Electrical devices not used beyond working hours must be switched off Electrical devices and engines must be dry and they must be regularly cleaned. The engine covers are cleaned of dust and dirt in order not to hinder the cooling function. The cooling grills must not be blocked The temporary electrical wiring must be protected against mechanical damages In case of fire or accident, it must be possible to quickly switch off the electrical current. The switching devices must be an in an easily accessible location, the main switch must be marked Construction machinery and equipment The construction machinery and equipment (hereinafter the machinery) must be used by following the requirements of the manufacturer, the instructions for use, applicable legal acts and safety requirements enforced by authorities The requirements set forth in the technical documents of the machine must be followed upon installing, running and technical maintenance of machinery (maintenance intervals, materials, oils etc.). The machinery must be oiled and the condition of the transmission belts and conveyor lines must be checked. The hydraulic pipes must be protected and it is not allowed to apply excess mechanical or thermal impact on them The defects discovered in machines, such as oil leaks, excess vibration, sparking of wire connections, damaged insulation of wiring and other similar deficiencies must be immediately eliminated It is forbidden to use machinery in conditions that do not meet the technical conditions of machinery or requirements of the manufacturer, such as exceeding the allowed lifting load It is forbidden to use a machine for purposes for which it is not foreseen Excavation works Upon performing works the risk of collapsing and moving of soil must be taken into account. Changes in ground and surface water levels must be taken into account and filling with water and/or caving in of the construction trench must be prevented All relevant safety requirements, legal acts and safety requirements enforced by authorities must be followed during excavation works Placement of subterranean cables, pipelines and other utility lines passing the construction site must be identified before commencing excavation and soil works. The necessary location plans and approval, excavation permits must be obtained from the possessors of cables, pipelines and communications Vibration Work methods that do not damage the work object or other property must be selected for performing works that causes vibration (e.g. ramming piles) or shockwave Any and all measures for prevention of damages to or destruction of the building in risk must be taken into account when planning Works, the building in risk must be protected, the structures must be supported etc Demolition work Before commencing demolition works it must be ensured that the demolished object is separated from all possible electrical, gas, water and other connections Applicable special requirements must be followed when demolishing buildings that contain asbestos Protection against burglary and vandalism Construction site must be guarded (see Article 1.8 of Section 2 of these insurance conditions) Construction machinery must be kept at Secure construction site or if it is not possible (e.g. in case of road construction) in another secure territory Beyond working hours all Small tools must be placed in a room, rooms for warming up or container that are locked and equipped with security system, the alarm of which is sent to a security company or guard of the construction site All doors, windows, hatches and other openings of the building and rooms must be closed and locked when leaving the building or rooms in the way that the insurance location cannot be entered without breaking the barrier or lock limiting the access to the location of the property. The security alarm system set forth in the insurance contract must be activated when leaving the building or rooms Policyholder must ensure that upon starting of the security alarm system and receiving an alarm signal, an employee of the security company or representative or the insured person check the inside and outside of the building or rooms that are the insurance location Third persons must not gain possession of keys and codes of the security alarm system. If a key or code is lost, or if third persons gain illegal access to key or code, the insured person must immediately replace the lock or code Recordings of the security cameras are stored at least 7 days Water Supply, Sewerage, Heating and Cooling Systems Locations of the pipelines and containers located at the construction site and buildings must be identified in order to prevent damages or blockage and ensure their protection against freezing Sufficient supervision and immediate response in the event of possible leakage must be ensured when filling the pipelines and upon testing works. The parts of the building, tools, equipment and materials that can be influenced by liquids must be protected against possible leaks Water pipelines, heating system, ventilation or air conditioning system and sewerage system must be emptied in empty buildings or rooms. Defrosting of frozen pipes with an open flame is not permitted. 9