GENERAL THIRD PARTY LIABILITY AND PROFESSIONAL LIABILITY INSURANCE RULES

GENERAL THIRD PARTY LIABILITY AND PROFESSIONAL LIABILITY INSURANCE RULES Baku 2009

GENERAL THIRD PARTY LIABILITY AND PROFESSIONAL LIABILITY INSURANCE RULES General Provisions General Third Party Liability and Professional Liability Insurance Rules of the International Insurance Company OJSC, hereinafter referred to as Rules, have been developed in accordance with Civil Code of the Azerbaijan Republic, Law On Insurance Operations, other legislative and regulatory acts, and shall be an integral part of all the contracts for third party liability and professional liability insurance executed by the International Insurance Company OJSC, hereinafter referred to as Insurance Contract. The scope of insurance provided under these Rules shall be the civil liability of the insured for damages incurred to third parties. The type of insurance under these rules shall be classified as general civil liability and professional liability insurances. Article 1. Insurer In accordance with present rules the Insurer shall mean the International Insurance Company OJSC. Article 2. Insured 2.1. Any legal entity or any functioning natural person can act as Insured. 2.2. The activities of insured shall include the activities of his employees, officers, other representatives acting on behalf of Insured on the basis of legislation, contract, work instructions, power of attornet or existing practices. Article 3. Section A Insurance events SECTION A EMPLOYER LIABILITY 3.1. For the damages (claimant costs, duties and expenses inclusive) as a result of injuries and illnesses incurred to the Insured s employees within the term of the Insurance the Insurer shall undertake the obligation to make the insurance payments to the Insured for the legal liabilities payable in accordance with provisions of the Insurance Contract. 3.2. The Insurance coverage also includes the following liabilities: 3.2.1. liabilities before the third party who have entered into the contract with Insured including the contractor personnel or temporarily contracted representatives of other employers, who have entered into contractor services arrangments with Insured; 3.2.2. Personal liabilities of the Insured s management and/or officers before the Insured s personnel. 4. Section B Insurance events SECTION B LIABILITIES BEFORE THIRD PARTIES 4.1. For the damages (claimant costs, duties and expenses inclusive) as a result of injuries and illnesses incurred to the third parties or damage to their property Insurer shall undertake the obligation to make the insurance payments to the Insured for the legal liabilities payable in accordance with provisions of the Insurance Contract. 4.2. The Insurance coverage also includes the following liabilities: 2

4.2.1. liabilities on food products, medical equipment and social guarantees provided by the Insured; 4.2.2. Liabilities of the Insured s management and/or officers for the services provided by the Insured s employees. 5. Exceptions applicable to section B 5.1. This insurance does not cover for the liabilities occurred of following: 5.1.1. Liabilities occurred as a result of injuries and illnesses incurred to persons employes by the Insured or injuries and illnesses incurred to any person performing under contract with Insured; 5.1.2. Liabilities for damages to property owned, controlled or used by the Insured, with following exceptions: 5.1.2.1. employee property; 5.1.2.2. structures not owned and not rented by the Insured, but temporarily used by him for the business purposes; 5.1.3. liabilities for the engined transport means, trailers and semi-trailers resulting from the ownership or operation of them by the Insured; 5.1.4. liabilities for the water transport, aircrafts and railroad transports resulting from the ownership or operation of them by the Insured; 5.1.5. liabilities for pre-determined losses, penalties or arising from execution of works (if there is no evidence that such liabilities have occurred other than due to such provisions or conditions); 5.1.6. Liabilities for losses and damages incurred by the property, structures and contractor services (materials inclusive) produced, developed, sold, supplied, repaired and installed by the Insured: 5.1.6.1. until the verified completion of works or handover by the Insured; 5.1.6.2. upon the verified completion of works or handover by the Insured; (if the loss has resulted from any defects of the property, structure or contractor services or the portion hereof); 5.1.7 liabilities for the sure and unavoidable results of the contractual obligations; 5.1.8 liability for damages to underground installations (if the Insured has not applied in writing to relevant authorities with regards to undergroung installations and has not received the written response before the commencement of works); 5.1.9 with exceptions below, the liabilities for air, water surface or property contaminations: 5.1.9.1. evidencing the contingency of the event of the contamination during the term of the insurance; 5.1.9.2. evidencing that the contamination has not occurred due to incapability of the Insured to take measure to prevent the damage. 5.1.10. Coverages included in Sections A, C and D (independent of the coverage provision for these sections by the Insurance Contract). 3

6. Section C Insurance Events SECTION C LIABILITY FOR PRODUCT 6.1 For the damages (claimant costs, duties and expenses inclusive) as a result of injuries and illnesses incurred to the third parties as a result of product use within term of insurance Insurer shall undertake the obligation to make the insurance payments (independent of whether included in the insurance coverage by the contract, with exception of coverages stipulated under Sections A, B and D) for the Insured for the legal liabilities payable in accordance with provisions of the Insurance Contract. 7. Exceptions related to section C 7.1 This section does not cover for liabilities for following damages: 7.1.1 Damage to product or any portion of thereof; 7.1.2 Costs incurred as a result of the product or part repair, restoration or replacement and/or any financial costs associated with repair, restoration or replacement; 7.1.3 Costs on return of the product or its part; 7.1.4 Liabilities occurred due to deliberate or negligent non-performance by the technical and administrative management of the Insured of all actions to prevent the injuries or damages; 7.1.5 Any losses paid under Sections A, B or D (independent of the coverage provision for these sections by the Insurance Contract). 8. Section D Insurance Events SECTION D PROFESSIONAL LIABILITY 8.1. For the damages (claimant costs, duties and expenses inclusive) related to the civil liability (professional liability) as a result of professional operations-services provided by the Insured to third parties Insurer shall undertake the obligation to make the insurance payments to the Insured for the legal liabilities payable in accordance with provisions of the Insurance Contract if following is provicded. 8.1.1 The claim is related to the losses covered (including the claimant costs and defense costs and expenditures of the Insured); 8.1.2 The claim during the term of contract is raised against the Insured; 8.1.3 The claim is related to financial costs resulted from the negligence, mistakes and faults of the Insured s employees or servicemen; 8.1.4 The claim has occurred as a a result of provision of services by the Insured in accordance with procedures of contract. 9. Special exceptions related to section D 9.1 No liabilities shall be included for the following claims under this section: 9.1.1 liabilities for pre-determined losses, penalties or arising from execution of works (if there is no evidence that such liabilities have occurred other than due to such provisions or conditions); 9.1.2 liabilities occurred as a result of refusal or release of third party from its rights (if there is no evidence that such liabilities have occurred other than due to such refusal or release from rights); 4

9.1.3 Any legal liability occurred as a result of incorrect, false, criminal and other wrong actions and mistakes of the Insured, his management, employee, or subcontractor and agent; 9.1.4 Any losses paid under sections A, B and C (independent of the coverage provision for these sections by the Insurance Contract). 10. General exceptions related to Sections A, B, C and D 10.1. This insurance coverage does not cover for liabilities occurred as a result of following: 10.1.1. liabilities for damages incured as a result of use or cleaning of asbestos and/or other substances or mixtures containing asbestos; 10.1.2. liabilities for the sure and unavoidable results of the contractual obligations; 10.1.3. liability for damages to underground installations (if the Insured has not applied in writing to relevant authorities with regards to undergroung installations and has not received the written response before the commencement of works); 10.1.4. with exceptions below, the liabilities for air, water surface or property contaminations: 10.1.4.1. evidencing the contingency of the event of the contamination during the term of the insurance; 10.1.4.2. evidencing that the contamination has not occurred due to incapability of the Insured to take measure to prevent the damage. 10.1.2. liabilities occurred as a direct or indirect result of war, occupation, actions of hostile states, hostile acts (independent of the announcement of war), civil war, revolt, revolution, coup, actions of the military regimes, confiscation or arrest of property; 10.1.3. liabilities as a direct or indirect result of following: 10.1.3.1. radiation activity as a result of ionising, radiation or impacts of any nuclear energy, ignition of the nuclear wastes or nuclear fuels and resulting envoronmental pollution; 10.1.3.2. any nuclear compositions and nuclear containing radioactive-toxic, explosive or other hazardous materials; 10.1.4. Liabilities for injuries, illnesses or damages to property incurred due to deliberate actions of the management or controlling function holder employee of Insured. GENERAL PROVISIONS APPLICABLE TO SECTIONS A, B, C AND D 10. Jurisdiction 10.1. Unless otherwise is stipulated under the Contract, the insurance payment under the contract is not provided by the decisions of the courts provided below, other than decisions of the first instance courts of the Azerbaijan Republic. 11. Court costs 12.1. Insurer shall pay under his written consent the following court costs of the Insured in Courts of the Azerbaijan Republic: 12.1.1. representation during the court investigation or investigation of fatality; 12.1.2. defense in courts of works related to actions and mistakes covered by the contract. Insurer does not hold liability for any penalties or sanctions. 5

12. Contract Principle (Coverage is provided if indicated in the Insurance Certificate) Insurer undertakes to make the insurance payment to the limits of damages incurred for the works performed by the Insured for his Principle. This Principle shall comply with current conditions and provisions and this Article shall in no case increase the liability levels stipulated under the contract. 13. Unconditional Release 14.1. Amount of unconditional release represents the losses or damages incurred as a result of the insurance event, which are not covered by the insurance and shall remain as insured s liability. The amount of release is always deducted from the insurance payment. 14.2. Release is determined on the basis of the consent between the insured and insurer. It is specified in the Insurance Certificate and/or these Rules and/or Attachments to Insurance Certificate, and is applied upon the application of the partial insurance provisions for each insurance event. 14.3. In the event of occurrence of several insurance events, unless otherwise is stipulated under the contract, the amount of release is withheld for each insurance event. 14.3.1. If the loss incurred as a result of insurance event is lower than amount of release, the insurer shall refuse the insurance payment. 14. Joint Liability (provided if indicated in the Insurance Certificate) If several Insured are provided under the Contract, the insurance coverage is applied as if under separate insurance contracts for each party and general liability of the Insurer shall not exceed the insurance amount stipulated under the contract. 15. Offshore personnel (provided if indicated in the Insurance Certificate) For the purposes of contract hereof the employees of the Insured shall be considered to be the offshore personnel for the period covering their travel by boat to the offshore drilling installation or platform until the moment of their arrival to shore from the offshore drilling installation or platform by boat. 16. Insurance Territory If the insurance territory is provided under the Contract, only insurance events occurred on this territory (sailing region) shall be covered by insurance. Unless otherwise is stipulated under the Contract (Certificate), the Insurance is valid on the territory of the Azerbaijan Republic. 17. Liability limits (insurance amount) 17.1. In accordance with this contract the liability of the Insurer under any insurance event or several events resulting from one insurance event and any claims thereunder shall not exceed the insurance amount specified under the insurance contract. In addtion, all suspicious costs and expenses of the Insured shall be paid by the Insurer under the following provisions and written consent of the Insurer: In the event of requirement for the payment of insurance at amount exceeding the amount specified in the contract, the liability of the Insured for the payment of all costs shall be limited pro-rata to its costs specified above. 17.2. Insurer may pay to Insured all the costs associated with one or several claims within the liability limit of the Contract (upon deduction of all paid amounts) or the lesser amounts that may settle these claims. Upon such payment the Insurer shall refuse to control such claims and shall not be bearing any liability for them in the future with exception of court costs (if the liability limit does not include the court costs). If the Insurer performs the above option, and exceeds the liability limit to settle the claim or several claims, as well as in the event of complete or partial insurance of these amount (together with court expenses added to the liability limit under the contract hereof), Insurer pays its portion of the court expenses occurred. 6

19. Payment of the Insurance Fee and Entering of Insurance Contract Into Force 19.1. The insurance fee is calculated by the insurer on the basis of information submitted by the insured and is provided in the Insurance contract or attachments to insurance contract. 19.2. When it is not provided under the Contract, the insurance fee or its first part the fees payable immediately after execution of the insurance contract and future payments shall be performed in accordance with terms and cycles indicated in the insurance contract. Insurance fee shall be considered paid from the moment of payment of funds to the insurer s bank account. If the payment is performed in cash, the insurance fee shall be considered paid upon handover of funds to authorized representative of the insurer. 19.3. Unless otherwise is stipulated under contract, the insured shall pay the insurance fee (or its first portion if paid by portions) in accordance with provisions of the account for the payment of the insurance fee (or its portion) as provided by the insurer. 19.4. If the insurance fee or its first part is not paid within the terms stipulated under the insurance contract, the insurer may establish the additional term for payment of the insurance fee in accordance with legislation. If the insurance fee is not paid within this established additional term the insurer shall be entitled to terminate the insurance contract. 19.5. Should the insured delay with payments of the portions of payments and if within such periods the insurance case has taken place, insurer shall be entitled to demand the payment for the unpaid portion of the insurance fee. Meanwhile, during the payment of the insurance coverage the insurer shall be entitled to withheld the amount of the unpaid insurance fee from the insurance payment. 19.6. Termination of the insurance contract by the insurer due to non-payment of the insurance fees by the insured, shall not release the insured from responsibility to pay to insurer the due payments of the insurance fee. Termination of the insurance contract by the insurer due to nonpayment of the insurance fees by the insured, shall not release the insured from responsibility to pay to insurer the due payments of the insurance fee. 19.7. By the assignment of Insured and provided the notice to Insurer the pament of the insurance fee can be performed by any other party, however, this party shall not obtain any rights under the insurance contract.. 19.8. For the short term insurance contracts (less than 1 year) the insurance fees shall be calculated on the basis of the schedule, forming the part of this contract (Table 1). 20. Execution of Insurance Contract, Its Validity, Commencement and Ending of Coverage 20.1. Unless otherwise is stipulated under insurance contract, the insurance coverage shall enter into force and shall end at 24:00 hours of the contract dates. 6.2. Insurance contract is executed on the basis of the written application of the Insured and executed via submission to him of the Insurance Contract. These Rules shall be attached as an integral part of the Insurance Contract. 20.3. The Contract shall contain the important elements of the insurance. By the consent of parties other provisions, including amendments to these Rules and exceptions can be added to contract. 20.4. Insured shall be liable for the complete and true information in his application and Insurer s questionnaire under the legislation of the Azerbaijan Republic. The information into application shall be entered by the Insured by hand and Insurer s employee (agent) shall develop them in electronic format to be signed by the Insured. The Insurer shall decide in which format (hand written or electronic) this application shall be made. 20.5. The insurance contract can be made for the terms provided below: for more than one year, for one year or lesser periods (short-term insurance). 7

21. EXECUTION OF THE INSURANCE CONTRACT. EARLY TERMINATION OF THE INSURANCE CONTRACT 21.1. Execution of the insurance contract. 21.1.1. Insurer and Insured shall sign the contract on subject of the insurance. 21.1.2. Unless otherwise is stipulated under the contract, the insurance contract shall enter into force from the moment of complete or partial payment of the insurance fee. 21.1.3. Upon receipt of the insurance fee or its first portion payment the Insurer, within 3 days, shall submit to Insured the insurance contract containing the information on the effect of contract, term of insurance and other provisions. 21.2. Early termination of the insurance contract 21.2.1. In cases stipulated under the Insurance Legislation or voluntary insurance contract, as well as on the basis of other agreed arrangements of parties, in the event of early termination of insurance contract by the demand of insurer or insured, the justified written notification shall be provided by one party to other at least 30 days prior to termination (60 days for insurance contract with terms of 5 years and more and 5 business days for the contracts less than 3 months). 21.2.2. If the insurance contract is terminated earlier by the Insured s initiative (in general or towards any portion of thereof), with exceptions stipulated under the insurance legislation, Insurer shall reimburse all overcrhaged insurance fees (in general or portion of thereof); if such requirement of termination is related to non-execution by the Insurer of its obligations under the insurance contract, the Insurer shall reimburse to Insured all insurance fee payments performed (in general or in relation to any portion of the insurance contract). 21.2.3. If the insurance contract is terminated earlier by the Insurer s initiative (in general or towards any portion of thereof), he shall reimburse all the insurance fee payments to Insured (fees paid in general or towards any portion of thereof; if such requirement of termination is related to non-execution by the Insured of its obligations under the insurance contract, the Insurer shall reimburse to Insured all insurance fee payments performed (in general or in relation to any portion of the insurance contract) upon deduction of all its costs under the contract. 21.2.4. If the insurance contract is terminated earlier (in general or towards any portion of thereof), and if the payments (in general or towards any portion of thereof), made by the Insured to Insurer by the time of termination are equivalent or exceed the Insurance Payments made by Insurer, the insurance fee (in general or towards any portion of thereof) shall not be reimbursed to Insured. 21.2.5. If the insurance contract is terminated earlier and if the payments (in general or towards any portion of thereof), made by the Insured to Insurer by the time of termination are less than the Insurance Payments made by Insurer, the reimbursement of the ainsurance fee to Insured shall be performed in accordance with procedures stipulated under Articles 13.2.1 and 13.2.2 of the Contract. 21.2.6. If the insurance contract is terminated in accordance with provisions of the relevant legislation of the Azerbaijan Republic, Insurer shall reimburse to insured the insurance fees paid for the unused portion of the term of contract (in general or towards any portion of thereof) upon deduction of its costs and with consideration of Articles 13.2.3 and 13.2.4 to the Legal Representative of the Insured. 21.2.7. Unless otherwise is stipulated under the Insurance Contract, the costs shall mean the administrative costs and insurance payments. 22. Changes and amendments to the Insurance Contract 22.1. If there are significant changes to the conditions referred by the parties during the execution of the contract and unless otherwise is stipulated under the legislation or the contract, changes and amendments to the insurance contract may be introduced. Significant changes to situation shall mean such changes that if considered, could result in nonexecution of the contract or execution under significantly different terms. 8

22.2. Unless otherwise is stipulated under the laws, legislative acts, contracts and business practices, the agreement on changes (amendments) to contract shall be executed in the form of contract. 22.3. In the event of changes (amendments) to Contract the responsibilities of parties shall be changed accordingly. 22.4. Unless otherwise is stipulated under the agreement on changes to contract, in the event of changes (amendments) to contract the responsibilities of parties shall change from the moment of execution of agreement. 22.5. Insurer shall be entitled to introduce changes to the existing insurance contract in following instances: - changes to laws on which the Insurance Contract is based; - Adoption of decisions of the Supreme Court of the Azerbaijan Republic or Constitutional Court of the Azerbaijan Republic in regards to insurance contracts; - When the provisions of insurance are considered invalid. 22.6 Should the insured refuse the changes to the insurance contract or additional insurance fee payments, the Insurance Contract shall be deemed invalid from the moment of occurrence of the updated risk. 23. Provision of information on occurence of insurance event and procedures for settlement of losses 23.1 In accordance with provisions of the Insurance Contract the Insured shall inform the Insurer immediately on any events that may result in raising of the claim along with submission of all information required by the Insurer. Unless otherwise is provided under the contract, if this information is notified to the insurer within 3 days of the date of event, the insurer shall consider this information notified immediately 23.2 Upon receipt of any claims, court hearing invitation or the court hearing as well as any related documents, the Insured shall submit them immediately to the Insured. 23.3 Insured is not entitled to take any actions directed at recognition of liability, signing of any agreements or making promises without preliminary consent of the Insurer. Insurer shall be entitled to defend against any claim, settle any claim as well as payment of any damage on behalf of the Insured, accept the claim in his favor and provide its execution. Insured shall submit to Insurer all documents deemed necessary. 23.4 Insured shall inform the relevant state authorities on any occurred event and perform other responsibilities stipulated under the legislation. 24. Prevention and minimization of damage 24.1 During the occurrence of the insurance event the Insured shall take all relevant and reasonable actions to prevent or minimize the potential damage. 24.2 When such actions are taken the Insured shall comply with all instructions of the Insurer. 25. Refusal to pay the insurance In following cases the Insurer shall be entitled to refuse to make payments to the Insured: 25.1. Insured failed to submit or submitted false information to the Insurer, which information is crucial for assessment of insurance risks or related to insurance event; 25.1 Non-compliance with principle provisions of the Insurance Contract independent of their relevance to insurance event; 25.2 Non-provision or delayed provision of information on the insurance event to Insurer, provided that such non-complianced influenced the payment procedures; 9

25.3 Non-compliance with main provisions and conditions stipulated under the insurance contract (certificate), these Rules and legislation if such non-compliance has affected capability to prevent or minimize the losses of the insurance event, as well as to clarify the circumstances of the insurance event. 25.4 When any claims contain the elements of fraud as provided by the Insurance Contract. 26. Determination of the insurance payment amount 26.1. Within 15 days of submission by the Insured of the documents below, the Insurer shall make the decision on payment or refusal to pay the insurance: Application of the insurance payment; Insurance Contract; Documents by relevant authorities on the event occurrence (Notes, protocols, conclusions etc.); Document verifying the rights on the damaged subject of insurance; onclusions and damage calculations made by the independent experts in connection with damage; Other event related documents. 26.2. Insurer shall be entitled to agree the insurance payment with the payment claimants directly. 26.3. Upon raising of claim all issues shall be settled by the insurer. 26.4. All costs associated with the claim shall be paid by the insurer. 27. Rights and Responsibilities of Parties 27.1 Rights of the Insured: 27.1.1 To monitor the compliance of the Insurer with provisions of the insurance contract. 27.1.2 To obtain from insurer the information on financial standing, which does not represent the commercial confidentiality; In the event of occurrence of the insurance event, require the performance of insurance payment from the Insurer. 27.2 Responsibilities of the Insured: 27.2.1 To pay the insurance fee in accordance with amounts and terms stipulated under the insurance contract; 27.2.2 To provide to the Insurer all information required for the execution of the insurance contact and other related data; 27.2.3 In execution of the insurance contract the Insured shall provide the insurer with all available information that may affect the insurer s decision to execute the Contract or require changes to its contents before execution; 27.2.4 To provide the safekeeping of documents related to insurance contract. 27.3 Rights of the Insurer: 27.3.1 Check the accuracy of information provided by the Insured and monitor the compliance of the Insured or the Insurance Holder with provisions of the Insurance Contract; 27.3.2 To reject the payment of the insurance under conditions stipulated under these Rules and demand the reimbursement if such payments are made; 27.3.3. If there is an established fact of provision by the Insured of the false information that affects the risk assessment or the information on the insurance event, to refuse to make the insurance payment; 27.3.4 If any unpaid portion of the insurance fee is not paid within the term established under the insurance contract, to suspend the provision of services to the Insured or terminate the insurance contract; 27.3.5 To terminate the Insurance Contract under the provisions of these Rules. 27.4 Responsibilities of Insurer: 27.4.1 To issue to Insured the appropriately made insurance certificate in timely manner; 10

27.4.2 In occurrence of the insurance event, on the basis of relevant documentation to perform the payment of insurance; 27.4.3 Provide the confidentiality of relations with insured; 27.4.4 In the event of early termination of the insurance contract, shall reimburse to the Insured the amount calculated under these Rules within 30 (thirty) banking days. 28. Confidentiality of business information Insurer shall be liable for all losses and damages incurred by the Insured as a result of disclosure of his confidential business information. 29. Liabilities of Parties 29.1. This Contract has been developed in accordance with legislation of the Azerbaijan Republic and shall be complied with by parties. 29.2. In the event of failure by one of the parties of this Contract to comply with its provisions or in the event of insufficient compliance with hereof the defaulting party shall compensate all losses incurred to other party in accordance with legislation of the Azerbaijan Republic. 29.3. None of the parties to this contract shall be entitled to transfer its rights and title under hereof to third party without prior written consent of the other party. 30. Settlement of disputes All disputes arising from the execution of the insurance contract shall be settled by negotiations between the parties. In the event of impossibility of such settlement the disputes shall be settled in accordance with existing legislation of the Azerbaijan Republic. 31. Term All claims arising from the Insurance Contract shall be settled within terms stipulated under the civil legislation of the Azerbaijan Republic. 32. Special Provisions Under special provisions of the Insurance Contract can be provided the other responsibilitiues assigned to the Insured as well as requirements associated with existing risks. Table 1 INSURANCE FEE CALCUILATION SCHEDULE APPLIED FOR THE SHORT TERM INSURANCE CONTRACTS Term of insurance contract Interest applied to annual insurance fee 11

1 to 30 days 20% of annual insurance fee 30 to 45 days 25% of annual insurance fee 45 to 60 days 30% of annual insurance fee 60 to 75 days 35% of annual insurance fee 75 to 90 days 40% of annual insurance fee 90 to 105 days 45% of annual insurance fee 105 to 120 days 50% of annual insurance fee 120 to 135 days 55% of annual insurance fee 135 to 150 days 60% of annual insurance fee 150 to 165 days 65% of annual insurance fee 165 to 180 days 70% of annual insurance fee 180 to 195 days 75% of annual insurance fee 195 to 210 days 80% of annual insurance fee 210 to 225 days 85% of annual insurance fee 225 to 240 days 90% of annual insurance fee 240 to 270 days 95% of annual insurance fee More than 270 days 100% of annual insurance fee 12