PROPERTY ALL RISKS INSURANCE
(London Market 7 Wording)
In consideration of the Insured named in the Schedule having paid or agreed to pay to the
(hereinafter called the Company) the first premium shown in the Schedule.
The Company hereby agrees subject to the terms exceptions limits and conditions contained herein
or endorsed hereon (hereinafter referred to as the Terms of the Policy) that if during the Period of
Insurance or during any further period in respect of which the Insured shall have paid and the
Company shall have accepted the premium required the Property Insured or any part thereof shall be
accidentally physically lost destroyed or damaged the Company will pay to the Insured the value of
the property at the time of the happening of its loss or destruction or the amount of such damage or
at its option reinstate or replace such property or any part thereof.
PROVIDED THAT the liability of the Company shall in no case exceed in respect of each item the
sum expressed in the said Schedule to be insured thereon and in the whole the total sum insured
thereby or such other sum or sums as may be substituted therefor by memorandum hereon or
attached hereto signed by or on behalf of the Company.
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EXCEPTIONS
The Company will not indemnify the Insured in respect of:
1.
a) Electrical or mechanical breakdown or derangement of plant machinery or equipment
b) Deterioration of property due to change in temperature or humidity or failure or inadequate
operation of an air-conditioning cooling or heating system
c) Subsidence ground heave landslip erosion settling or cracking
UNLESS EITHER (i) caused by
Fire Lightning
Explosion
(for the purpose of this Exception "explosion" shall not mean the bursting or disruption
of turbines, compressors, transformers, rectifiers, switchgear, engine cylinders,
hydraulic cylinders, fly-wheels or other moving parts subject to centrifugal force or
boilers, economisers or other vessels machinery or apparatus in which pressure is
used)
Aircraft or other aerial devices or articles dropped therefrom
Impact by vehicles watercraft locomotives or rolling stock
Earthquake
Riot or malicious acts (other than any act excluded by reason of Exception 6(b) herein)
Strikers, locked-out workers or persons taking part in labour disturbances
Storm, tempest, flood
OR (ii) resulting in
The occurrence of any of the events in (i) above then the Company will only indemnify
the Insured under the Terms of the Policy in respect of the resultant loss, destruction or
damage
2. Loss destruction or damage to :
a) Property in course of manufacture if such loss, destruction or damage is sustained while
the property is being actually worked on and directly resulting from such work
b) Property in course of construction or erection
c) Boilers, economizers, turbines or other vessels, machinery or apparatus in which pressure is
used or their contents resulting from their explosion or rupture
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d) Plant machinery or equipment during installation, dismantling or the stripping down and
assembly in respect of any re-siting operations
e) Electrical equipment or wiring caused by electrical current (other than lightning)
f) Money, cheques, bullion, negotiable instruments and securities of all kinds
g) Animals growing crops or standing timber
h) Dams, reservoirs, piers, wharves, jetties, bridges or tunnels
i) Any vehicle licensed for road use railway locomotives and rolling stock, water craft or
aircraft or property contained in water craft or aircraft
j) Property whilst in transit other than at any premises described in the Schedule
k) Documents, manuscripts, business books or computer systems, records for the value to the
Insured of the information contained therein
HOWEVER the Company will indemnify the Insured in respect of loss destruction or
damage to
(i) Documents, manuscripts and business books but only for the value of the
materials as stationery together with the cost of clerical labour expended in
writing up
(ii) Computer systems records but only for the value of the materials together with
the costs and expenses necessarily incurred by the Insured in reproducing such
records (excluding any cost or expense in connection with the production of
information to be recorded therein)
3.
a) Consequential loss of any kind or description whatsoever
b) Loss resulting from dishonesty, fraudulent action, trick device or other false pretense
c) Loss resulting from theft unless accompanied by violence to persons or threat of violence
or forcible and violent entry to or exit from the premises
d) Loss resulting from unexplained or mysterious disappearance or shortage revealed at any
periodic inventory or shortages in the supply or delivery of materials or loss or shortage
due to clerical or accounting error
e) The cost of replacing or rectifying defective materials workmanship design or defect or
omission in design plan or specification
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f) Contamination, pollution, wear and tear, corrosion, vermin, fungus, rot, gradual
deterioration, deformation or distortion, shrinkage, evaporation, loss of weight, change in
flavor, color, texture or finish or action of light
g) Accidental breakage of glass.
h) The cost of normal upkeep or normal making good
i) The freezing or solidification of molten material
4. Loss, destruction or damage by storm, tempest, water, hail, frost or snow to property
a) In the open (other than building, structures and plant designed to exist and operate in the
open)
b) Contained in open-sided buildings
UNLESS so described and specifically insured as a separate item in the Schedule.
5. The amount stated in the Schedule as the Deductible in respect of each and every occurrence
or a series of occurrences consequent on or attributable to one source or original cause giving
rise to loss, destruction or damage the subject of indemnity under this Policy after the
application of all other terms of this Policy including the condition of average.
6. Any loss, destruction or damage directly or indirectly occasioned by or through or in
consequence of :
a) War, invasion, acts of foreign enemies, hostilities or warlike operations (whether war be
declared or not) civil war
b) Mutiny, civil commotion assuming the proportions of or amounting to a popular rising,
military rising, insurrection, rebellion, revolution, military or usurped power or any act of
any person acting on behalf of or in connection with any organization with activities
directed towards the overthrow by force of the Government de jure or de facto or to the
influencing of it by terrorism or violence
c) (i) Permanent or temporary dispossession resulting from confiscation nationalization
Commandeering or requisition by any lawfully constituted authority
(ii) Permanent or temporary dispossession of any building resulting from the unlawful
occupation of such building by any person
provided that the Company is not relieved of any liability to the Insured in respect of
physical damage to the Property Insured occurring before dispossession or during
temporary dispossession which is otherwise insured by this Policy
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d) The destruction of property by order of any public or local authority
In any action suit or other proceeding where the Company alleges that by reason of the
provisions of Exceptions 6(a) and 6(b) above any loss destruction or damage is not
covered by this insurance the burden of proving that such loss destruction or damage is
covered shall be upon the Insured.
7. Any loss destruction or damage directly or indirectly caused by or arising from or in
consequence of or contributed to by :
a) Nuclear weapons material
b) Ionizing radiations or contamination by radioactivity from any nuclear fuel or from any
nuclear waste from the combustion of nuclear fuel Solely for the purpose of this
Exception 7 (b) combustion shall include any self-sustaining process of nuclear fission
8. Any loss destruction or damage directly or indirectly caused by water below the surface of the
ground including such water which exerts pressure on or seeps or leaks through a building
sidewalk driveway foundation swimming pool or other structure
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POLICY CONDITIONS
1. DEFINITION
This Policy and the Schedule shall be read together as one contract and any word or
expression to which a specific meaning has been attached in any part of this Policy or of the
Schedule shall bear such meaning wherever it may appear.
2. MISDESCRIPTION
If there be any material misdescription of any of the Property Insured or of any building or
place in which such property is contained or any misrepresentation as to any fact material to
be known for estimating the risk or any omission to state such fact the Company shall not be
liable under this Policy so far as it relates to property affected by any such misdescription
misrepresentation or omission.
3. ALTERATION
Under any of the following circumstances the insurance under this Policy ceases to attach as
regards the property affected unless the Insured before the occurrence of any loss or damage
obtains the sanction of the Company signified by endorsement upon the Policy by or on behalf
of the Company.
a) If the trade or manufacture carried on be altered or if the nature of occupation of or
other circumstances affecting the building insured or containing the Insured
Property be changed in such a way as to increase the risk of loss or damage
b) If the building insured or containing insured property becomes unoccupied and so
remains for a continuous period of more than 30 days
c) If the Property Insured be removed to any building or place other than that in which
it is herein stated to be insured
d) If the interest in the Property Insured passes from the Insured otherwise than by will
or operation of law
4. CANCELLATION
This insurance may be terminated at any time at the request of the Insured in which case the
Company will retain the customary short period rate for the time the Policy has been in force.
This insurance may also be terminated at the option of the Company on notice to that effect
being given to the Insured or mailed to his last known address in which case the Company
shall be liable to repay on demand a ratable proportion of the premium for the unexpired term
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from the date of the cancellation. In either case the cancellation will be effective after 60 days
from giving (or mailing) the notice of cancellation.
5. SAFEGUARDS AND MAINTENANCE
The Insured shall at all times and as far as is reasonably practicable take steps to safeguard the
Property Insured and maintain it in a proper state of repair. The Insured shall also take steps
to enforce the observance of all statutory provisions manufacturer's recommendations and
other regulations relating to the safety use and inspection of the Property Insured.
6. CLAIMS
On the happening of any loss destruction or damage the Insured shall forthwith give notice
thereof in writing to the Company and shall within 15 days after such loss destruction or
damage or such further time as the Company may in writing allow at his own expense deliver
to the Company a claim in writing containing as particular an account as may be reasonably
practicable of the several articles or portions of property lost destroyed or damaged and of the
amount of such loss destruction or damage thereto respectively having regard to their value at
the time of the loss destruction or damage together with details of any other insurances or any
property hereby insured. The Insured shall also give to the Company all such proofs and
information with respect to the claim as may be reasonably required together with (if
demanded) a statutory declaration of the truth of the claim and of any matters connected
therewith. No claim under this Policy shall be payable unless the terms of this Condition have
been complied with.
In the case of property lost or stolen or if willful or malicious damage is suspected the Insured
shall immediately notify the police and render all reasonable assistance in causing the
discovery and punishment of any guilty person and in tracing and recovering lost or stolen
property.
7. THE COMPANY’S RIGHTS AFTER A LOSS
On the happening of any loss, destruction or damage to any of the Property Insured the
Company may :
a) Enter and take and keep possession of the building or premises where the loss or
damage has happened
b) Take possession of, or require to be delivered to them any property of the Insured in
the building or on the premises at the time of the loss or damage
c) Keep possession of any such property and examine, sort, arrange, remove or
otherwise deal with the same
d) Sell any such property or dispose of the same for account of whom it may concern
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The powers conferred by this Condition shall be exercisable by the Company at any time until
notice in writing is given by the Insured that they make no claim under this Policy or if any
claim is made until such claim is finally determined or withdrawn and the Company shall not
by any act done in the exercise or purported exercise of their power hereunder incur any
liability to the Insured or diminish their right to rely upon any of the conditions of this Policy
in answer to any claim.
If the Insured or any person on their behalf shall not comply with the requirements of the
Company or shall hinder or obstruct the Company in the exercise of their powers hereunder
all benefit under this Policy shall be forfeited.
The Insured shall not in any case be entitled to abandon any property to the Company whether
taken possession of by the Company or not.
8. FORFEITURE
If any claim upon this Policy be in any respect fraudulent or if any fraudulent means or
devices are used by the Insured or any one acting on his behalf to obtain any benefit under this
Policy or if the loss destruction or damage be occasioned by the willful act or with the
connivance of the Insured all benefit under this Policy shall be forfeited.
9. TIME LIMITATION
If a claim be made and rejected and an action or suit be not commenced within three months
after such rejection or (in case of an arbitration taking place in pursuance of Condition 15 of
this Policy) within three months after the Arbitrator shall have made his award all benefit
under this Policy shall be forfeited.
10. REINSTATEMENT
If the Company elects or becomes bound to reinstate or replace any property the Insured shall
at his own expense produce and give to the Company all such plans documents books and
information as the Company may reasonably require The Company shall not be bound to
reinstate exactly or completely but only as circumstances permit and in reasonably sufficient
manner and shall not in any case be bound to expend in respect of any one of the items
insured more than the Sum Insured thereon.
11. SUBROGATION
The Insured shall at the expense of the Company do and concur in doing and permit to be
done all such acts and things as may be necessary or reasonably required by the Company for
the purpose of enforcing any rights and remedies or of obtaining relief or indemnity from
other parties to which the Company shall be or would become entitled or subrogated upon
their paying for or making good any loss destruction or damage under this Policy whether
such acts and things shall be or become necessary or required before or after his
indemnification by the Company.
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12. MARINE
This insurance does not cover any loss or damage to property which at the time of the
happening of such loss or damage is insured by or would but for the existence of this Policy
be insured by any Marine Policy or Policies except in respect of any excess beyond the
amount which would have been payable under the Marine Policy or Policies had this
insurance not been effected.
13. CONTRIBUTION
If at the time of any loss destruction or damage happening to any Property Insured there be
any other subsisting insurance or insurances whether effected by the Insured or by any other
person or persons covering the same property the Company shall not be liable to pay or
contribute more than their ratable proportion of such loss destruction or damage.
14. AVERAGE
If the Property Insured shall at the time of any loss destruction or damage be collectively of
greater value than the Sum Insured thereon then the Insured shall be considered as being his
own Insurer for the difference and shall bear a ratable proportion of the loss accordingly.
Every Item if more than one of the Policy shall be separately subject to this Condition.
15. ARBITRATION
All differences arising out of this Policy shall be referred to the decision of an Arbitrator to be
appointed in writing by the parties in difference or if they cannot agree upon a single
Arbitrator to the decision of two Arbitrators one to be appointed in writing by each of the
parties within one calendar month after having been required in writing so to do by either of
the parties or in case the Arbitrators do not agree, an Umpire shall be appointed in writing by
the Arbitrators. The Umpire shall sit with the Arbitrators and preside at their meetings and the
making of an award shall be a condition precedent to any right of an action against the
Company.
The sitting of the board of Arbitration shall take place in the country where the Policy is
issued.
16. OBSERVANCE OF CONDITIONS
The due observance and fulfillment of the terms conditions and endorsements of this Policy
by the Insured in so far as they relate to anything to be done or complied with by them shall
be conditions precedent to any liability of the Company to make payment under this Policy
17. JURISDICTION.
This policy is subject to the Lebanese Jurisdiction.
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