Leaders in Marine and Transit Insurance Expertise Service Security

Builders Risks Insurance PROPOSAL Leaders in Marine and Transit Insurance Expertise Service Security

Builders Risks Proposal Information you will want to know about this Insurance. THE POLICY As a ship builder you may suffer loss of or damage to the hull and machinery of vessels you are constructing (including materials in your possession allocated thereto) from a wide variety of causes. In addition you may become legally liable for loss of or damage to property belonging to others or for death or personal injury caused to third parties during the construction. Associated Marine Insurers provide cover against such eventualities using the internationally recognised Institute Clauses for Builders Risks (1/6/88) (CL.351) a copy of which is available upon request. The policy gives you the flexibility to select either specific contracts for individual clients, or to insure all vessels constructed at specified yards during the policy period or any renewal thereof. RISKS COVERED Subject to the exclusions detailed in the policy wording the insurance is against all risks of loss of or damage to the subject-matter insured caused and discovered during the period of insurance, including latent defect. In case of failure of launch, the policy covers all subsequent expenses incurred completing the launch. The policy also covers loss of or damage to the subjectmatter insured caused and discovered during the period of insurance arising from faulty design of any part or parts thereof but not including the cost or expenses of repairing, modifying, replacing or renewing such part or parts nor any cost or expense of betterment or alteration in design. PRINCIPAL RISKS EXCLUDED Loss damage liability or expense caused by earthquake volcanic eruption. The cost of renewing faulty welds. Liability costs or expenses arising in respect of workers compensation punitive and exemplary damages pollution or contamination. PREMIUM This is based on the estimated completed contract value and the type of vessel being constructed, the estimated period of construction, the claims history of the yard, the deductible level selected, launching, trialling and delivery details. A deposit premium, based on the above, is charged at the commencement of the contract. This is adjusted on expiry of the policy period taking into account the final construction value and the actual period of construction. SETTLING YOUR CLAIM Subject to the policy deductible our experienced claims staff will promptly indemnify you for losses, legal liability and costs insured by the policy up to the agreed limit. IMPORTANT The information above is an outline of the cover provided. Full details of the cover with all limitations exclusions and conditions are contained in the policy. The way we handle your personal information We collect personal information from you for the purpose of providing you with insurance products services, processing and assessing claims. You can choose not to provide this information, however, we may not be able to process your requests. We may disclose information we hold about you to other insurers, an insurance reference service or as required by law. In the event of a claim, we may disclose information to and/or collect additional information about you from investigators or legal advisers. Associated Marine Insurers Agents Pty. Ltd. (ABN 41 006 104 007 AFSL 235383) is agent for and is owned by one of Australia s largest and most respected insurers, Zurich Australian Insurance Limited (ABN 13 000 296 640). The EXPERTISE, SERVICE AND SECURITY of Associated Marine Insurers have made it a market leader in marine and transit insurance throughout Australia. BRANCH DETAILS VIC. Tel (03) 9629 2081 Fax (03) 9614 6929 GPO Box 1337L Melbourne 3001 N.S.W. Tel (02) 9233 4177 Fax (02) 9231 6808 GPO Box 4508 Sydney 2001 QLD. Tel (07) 3368 9555 Fax (07) 3367 2403 PO Box 1344 Milton 4064 NTH. QLD. Tel (07) 4721 5394 Fax (07) 4721 4249 PO Box 769 Townsville 4810 S.A. Tel (08) 8359 3553 Fax (08) 8359 3456 PO Box 3210 Rundle Mall Adelaide 5000 N.T. Tel (08) 8982 8811 Fax (08) 8941 6856 GPO Box 4245 Darwin 0801 W.A. Tel (08) 9320 5900 Fax (08) 9324 1972 PO Box 205 West Perth 6872 TAS. Tel (03) 6234 3933 Fax (03) 6224 0151 GPO Box 1905 Hobart 7001

PROPOSAL FOR BUILDERS RISKS INSURANCE POLICY No. PROPOSER Full name of Proposer Proposer's address Proposer s postal address Postcode Postcode OTHER INTERESTED PARTIES Name and address of mortgagee or other interested party Detail their interest (mortgagee, lessee, subsidy provider etc.) PERIOD OF CONSTRUCTION Period of construction - commencement date Estimated completion date (i.e. date of hand-over) THE VESSEL Type of vessel being constructed Cover requested from to at 4.00pm Yard No. Estimated completion value $ Suggested deductible $ Construction material Dimensions: Length Beam Depth Draft Tonnage (GRT) Is vessel to be built under survey? Yes No If yes, name of classification society or authority. Machinery details: New or secondhand Maker H.P. Auxiliaries Fuel This proposal applies to single vessels. Builders requiring cover for all vessels commenced during the period of a year should give approximate range of vessels anticipated. Full details of each individual vessel should be declared prior to commencement. Associated Marine Insurers Agents Pty. Ltd. (ABN 41 006 104 007 AFSL 235383) as agent for and owned by Zurich Australian Insurance Limited (ABN 13 000 296 640)

THE YARD Location of building yard or site Maximum value under construction in yard, any one time $ Construction of building Description of security/alarms Description of fire fighting facilities Type of vessels normally built Details of yard including slipway, cranes, travel lifts etc. Number of employees Are subcontractors used? Yes No If yes, what % of work? Do you require this insurance to cover contractor s liabilities? Yes No Do they have adequate cover? Yes No Please detail your requirements How are vessels launched? Full details of transport, loading, distance etc. if launched away from site GENERAL Suggested limit of P & I cover (Third Party Insurance) in excess of hull value $ Is Maintainence Guarantee Cover required Yes No If yes, please supply a copy of the guarantee. What sea trials are anticipated and where? Is delivery to be at yard? Yes No If no, is delivery voyage to be covered? Yes No Details of delivery voyage

PRIOR HISTORY (LAST 5 YEARS) How long has business been established? Years Due date of current insurance Name of present insurer Has any insurer declined insurance or imposed any special conditions? Yes No If yes, please detail Claims record as ship builders for the last five years (including incidents reported and claims not paid). Include vessel s name and type of incidents. ADDITIONAL INFORMATION Please detail any additional information relating to the proposed risk. Law - The insurance, if accepted, will be subject to Australian law and may be subject to the provisions of the Marine Insurance Act 1909 or the provisions of the Insurance Contracts Act 1984. If this proposal form is completed in whole or in part by any person other than the proposer then such person shall be deemed to be the agent of the proposer and not the agent of Associated Marine Insurers Agents Pty.Ltd. The proposer who completes this proposal form has his attention drawn to the terms of Sections 23 to 27 of the Marine Insurance Act 1909 and in particular is informed that the contract of marine insurance that may be made and which may have as its basis the material contained herein, is a contract based upon the utmost good faith and in the absence of such good faith, may be avoided. Further the proposer is informed that there is an obligation to disclose to the insurer every material circumstance which is known to the proposed insured and/or which, in the ordinary course of business, ought to be known to the proposed insured. Every circumstance is material if it would influence the judgement of a prudent insurer in fixing the premium or determining whether he will take the risk. If there is a failure to make such disclosure, the insurer may avoid any contract of insurance that may be made. Duty of Disclosure - Before you enter into a contract of general insurance with the insurer you have a duty under the Insurance Contracts Act 1984 to disclose to the insurer every matter that you know, or could reasonably be expected to know, is relevant to the insurer s decision whether to accept the risk of the insurance and if so on what terms. You have the same duty to disclose those matters to the insurer before you renew, extend, vary or reinstate a contract of general insurance. Your duty does not require disclosure of matter that diminishes the risk to be undertaken by the insurer that is common knowledge that the insurer knows, or in the ordinary course of its business, ought to know as to which compliance with your duty is waived by the insurer. Non-disclosure - If you fail to comply with your duty of disclosure, the insurer may be entitled to reduce its liability under the contract in respect of a claim or may cancel the contract. If your non-disclosure is fraudulent the insurer may also have the option of avoiding the contract from its beginning. DECLARATION I/We authorise Associated Marine Insurers Agents Pty Ltd to collect or disclose any personal information relating to this insurance to/from any other insurers or insurance reference service. I/We hereby declare that to the best of our knowledge and belief 1. the information provided herein is true and correct in every respect and I/we have not withheld any material information 2. I/we have received the proposal/information sheet and agree to accept the insurance subject to the terms, conditions, exclusions and limitations of the policy. Signature... Date... OFFICE USE ONLY INTERMEDIARY PREMIUM AGENT NO. SPECIAL CONDITIONS BRANCH DETAILS VIC. Tel (03) 9629 2081 Fax (03) 9614 6929 GPO Box 1337L Melbourne 3001 N.S.W. Tel (02) 9233 4177 Fax (02) 9231 6808 GPO Box 4508 Sydney 2001 QLD. Tel (07) 3368 9555 Fax (07) 3367 2403 PO Box 1344 Milton 4064 NTH. QLD. Tel (07) 4721 5394 Fax (07) 4721 4249 PO Box 769 Townsville 4810 S.A. Tel (08) 8359 3553 Fax (08) 8359 3456 PO Box 3210 Rundle Mall Adelaide 5000 N.T. Tel (08) 8982 8811 Fax (08) 8941 6856 GPO Box 4245 Darwin 0801 W.A. Tel (08) 9320 5900 Fax (08) 9324 1972 PO Box 205 West Perth 6872 TAS. Tel (03) 6234 3933 Fax (03) 6224 0151 GPO Box 1905 Hobart 7001 A3384