BOILER AND PRESSURE VESSEL INSURANCE POLICY

(Promulgated together with Decision No: 3302/QD - TSKT dated December 01st 2010
of General Director of BIDV Insurance Corporation)

Whereas the Insured named in the Schedule hereto has made to BIDV Insurance
Corporation (hereinafter called “The Insurers”) a written proposal and has paid the
premium stated in the Schedule as consideration for the indemnity hereinafter
contained for the period of Insurance stated in the Schedule;
Now it is hereby agreed that the Insurers will, during the period covered by this Policy
or any renewal thereof and subject to the exclusions, provisions, definitions and
conditions contained herein or endorsed hereon, indemnify the Insured against
1. Damage (other than by fire) to any boiler or pressure vessel described in the
Schedule hereto and to other property of the Insured,
2. Liability of the Insured at law for damage to property not belonging to the
Insured,
3. Liability of the Insured at law on account of fatal or non-fatal in juries to any
persons other than the Insured’s own employees or workmen or members of the
Insured’s family,
caused by and solely due to explosion or collapse as hereinafter defined of any boiler
or pressure vessel described in the Schedule whilst in the course of ordinary working;
Provided that the liability of the Insurers in respect of any one boiler or pressure vessel
in any one year of Insurance does not exceed the sum insured set opposite thereto on
the Schedule and, in respect of damage to other property of the Insured and third party
liability, the limit of indemnity so specified in the Schedule:
Provided also that in case of any claim against the Insured for damages as aforesaid
the Insurers will in addition pay all costs and expenses recovered by any claimant
against the Insured or incurred with the written consent of the Insured resisting such
claim.
EXCLUSIONS
The Insurers shall not be liable for
1. Defects due to the wearing away or the wasting of the materials of a boiler or a
pressure vessel, whether by leakage, corrosion or by the action of the fuel or
otherwise, the grooving or the fracturing of any of the parts of a boiler or a
pressure vessel, or for deterioration generally, or for the development of cracks,
blisters, laminations and other flaws, or for fractures, failure of joints, or for
bulging and deformation due to overheating of tubes (unless such defects,
fractures, failures or bulging result in explosion or collapse), or for the cracking
of sections of cast-iron heating boilers or other vessels constructed of cast-iron;

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2. The failure of individual tubes in boilers of the water tube, locomotive or other
multitubular types, in superheaters or in economizers (unless such defects result
in explosion or collapse);
3. Damage to property belonging to the Insured or held by him in trust or on
commission for which he is responsible, caused by fire, arising from explosion or
collapse or any other cause whatsoever, or damage to the plant resulting from any
extraneous cause;
4. Damage and/or liability caused by the wilful act or wilful neglect of the Insured;
5. Loss sustained by stoppage of work;
6. Loss or damage which either in origin or extent is directly or indirectly,
proximately or remotely occasioned or contributed to by any of the following,
namely:
a. Typhoon, hurricane, volcanic eruption, earthquake or other convulsion of
nature,
b. Loss or damage directly or indirectly caused by or arising out of war,
invasion, act of foreign enemy, hostilities (whether war be declared or not),
civil war, rebellion, revolution, insurrection, mutiny, riot, strike, lock-out,
civil commotion, military or usurped power, a group of malicious persons or
persons acting on behalf of or in connection with any political organisation,
conspiracy, confiscation, commandeering, requisition or destruction of or
damage to property by order of any government de jure or de facto or by any
public authority, nuclear reaction, nuclear radiation or radioactive
contamination,
c. any tests other than tests at a pressure not exceeding the maximum pressure
permitted by the inspecting authority.
DEFINITIONS
The following terms, when used in this Policy, shall have under-mentioned meanings:
1. “Boiler” shall mean any fired closed container or a combined container piping
system in which steam is generated under pressure. When used in the Schedule,
the term “boiler” shall include fittings, built-in super-heaters and economisers but
shall not include steam or feed-water piping or separate economisers, the
explosion of such items being covered by this Policy only if specifically listed in
the Schedule.
2. “Vessel” shall mean any unfired closed container under steam or air pressure.
3. “Explosion” shall mean the sudden and violent rending or tearing apart of the
structure of a boiler or vessel, or any part or parts thereof by force of internal
steam, air or fluid pressure, causing bodily displacement of said structure
accompanied by the forcible ejection of its contents.
Flue Gas Explosion: “Explosion” shall also mean any damage to the structure of a
boiler by force of the sudden and accidental combustion or explosion of ignited
furnace or flue gasses.
4. “Collapse” shall mean the sudden any dangerous distortion of any part of a boiler
or vessel caused by the crushing stress of external steam or fluid pressure,
whether attended by rupture or not; it shall not mean any slowly developing
deformation due to any cause.

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CONDITIONS
1. The due observance and fulfilment of the terms of this Policy, in so far as they
relate to anything to be done or complied with by the Insured, any the truth of the
statements and answers in the proposal made by the Insured shall be a condition
precedent to any liability of the Insurers.
2. The Insured shall at his own expense take all reasonable precautions and comply
with all reasonable recommendations of the Insurers to prevent loss, damage or
liability and shall comply with manufacturers’ recommendations.
3. a. Representatives of the Insurers shall at any reasonable time have the right to
inspect and examine any property insured hereunder and the Insured shall provide
the representatives of the Insurers with all details and information necessary for
the assessment of the risk, e.g. the inspection reports issued by the inspectors
authorised by the appropriate authorities.
b. The Insured shall immediately notify the Insurers by telegram and in writing of
any material change in the risk and cause at his own expense such additional
precautions to be taken as circumstances may require. This shall also apply if fuel
is to be used other than for which the boiler was designed or which was used at
the time the insurance was effected. Non-compliance with this condition shall
result in suspension of this Policy in respect of the item or items where the
change in risk has occurred.
4. In the event of any occurrence which might give rise to a claim under this Policy,
the Insured shall
a. immediately notify the Insurers by telephone or telegram as well as in writing,
giving an indication as to the nature and extent of the loss or damage;
b. take all steps within his power to minimise the extent of the loss or damage;
c. preserve the parts affected and make them available for inspection by a
representative or surveyor of the Insurers;
d. furnish all such information and documentary evidence as the Insurers may
require.
The Insurers may at their own option repair or replace what is damaged or pay in
cash for the loss or damage.
The Insurers shall not be liable for the cost of any repairs undertaken by the
Insured without the Insurer’s written permission.
The Insurers shall not be liable for loss or damage of which no notice has been
received by the Insurers within 14 days of its occurrence.
Upon notification of a claim being given to the Insurers, the Insured may carry
out repairs of any damage or replace items which have sustained any minor
damage, but in all other cases a representative of the Insurers shall have the
opportunity of inspecting the damage before any alternations are effected. If an
inspection by a representative of the Insurers does not take place within a period
of 14 days from the notification of the claim, the Insured shall be entitled to
proceed with the repairs or replacement. Nothing contained herein shall prevent
the Insured from taking such steps as are absolutely necessary to maintain the
operation of the plant.

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 The liability of the Insurers under this Policy in respect of any item of property
sustaining damage, for which indemnity is provided, shall cease if the said item
continues in operation without being repaired to the satisfaction of the Insurers.
5. The Insured shall at the expense of the Insurers do and concur in doing and
permit to be done all such acts and things as may be necessary or required by the
Insurers in the interest of any rights or remedies, or of obtaining relief or
indemnity from parties (other than those insured under Policy) to which the
Insurers are or would become entitled or which is or would be subrogated to them
upon their paying for or making good any loss or damage under this Policy,
whether such acts and things are or become necessary or required before or after
the Insured’s indemnification by the Insurers.
6. No admission, offer, promise, payment or indemnity shall be made or given by or
on behalf of the Insured without the written consent of the Insurers who are
entitled if they so desire to take over and conduct in the name of the Insured the
defence or settlement of any claim for indemnity or damage or otherwise and who
have full discretion in the conduct of any proceedings in the settlement of any
claim, any the Insured shall give all such information and assistance as the
Insurers may require.
7. This Policy may be terminated at the request of the Insured at any time, in which
case the Insurers will retain that part of the premium paid corresponding to the
customary short-period rate for the time this Policy has been in force. This Policy
may also at any time be terminated at the option of the Insurers by seven days’
notice to that effect being given to the Insured, in which case the Insurers will be
liable to repay on demand a rateable proportion of the premium for the unexpired
term from the date of cancellation less any reasonable inspection charges the
Insurers may have incurred.
8. If any difference arises as to the amount to be paid under this Policy (liability
being otherwise admitted), such difference 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 to do so by either of the parties, or, in case the
arbitrators do not agree, of any umpire to be appointed in writing by the
arbitrators before the latter enter upon the reference. The umpire shall sit with the
arbitrators and preside at their meetings. The making of an award shall be a
condition precedent to any right of action against the Insurers.
9. If a claim is in any respect fraudulent, or if any false declaration is made or used
in support thereof, or if any fraudulent means or devices are used by the Insured
or anyone acting on his behalf to abstain any benefit under this Policy, or if a
claim is made rejected and no action or suit is commenced within three months
after such rejection or, in the case of arbitration taking place as provided for
herein, within three months after the arbitrators or umpire have made their award,
all benefit under this Policy shall be forfeited.
10. Whenever a claim arises under this Policy and the same loss, damage or liability
is covered by any other insurance, the Insurers shall not be liable to pay or
contribute more than their rateable proportion of any claim for such loss, damage
or liability. The Insured shall be obliged to inform the Insurers of any other
insurance covering the same insured property.

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Memo 1-Sum Insured
It shall be a requirement of this Policy that the sum insured for each boiler and
pressure vessel is equal to the cost of replacement by a new item of the same kind and
capacity, which means its cost of replacement including, e.g., freight, dues and custom
duties, if any, and cost of erection. If the sum insured is less than the amount required
to be insured, the Insurers shall pay only in such proportion as the sum insured bears to
the amount required to be insured. Every item if more than one shall be subject to this
condition separately.
Memo 2-Basis of Indemnity
a. In cases where damage to an item can be repaired- the Insurers shall pay expenses
necessarily incurred to restore the damaged machine to its former state of
serviceability plus the cost of dismantling and re-erection incurred for the purpose
of effecting the repairs, as well as ordinary freight to and from a repair shop,
customs duties and dues, if any, but, for the boiler and pressure vessels listed in
the Schedule, only to the extent such expenses have been included in the sum
insured. If the repairs are executed at a workshop owned by the Insured, the
Insurers shall pay the cost of materials and wages incurred for the purpose of the
repairs plus a reasonable percentage to cover overhead charges.
No deduction shall be made for depreciation in respect of parts replaced, but the
value of any salvage shall be taken into account.
If the cost of repairs as detailed hereinabove equals or exceeds the actual value of
the item immediately before the occurrence of the damage, the settlement shall be
made on the basis provided for in b) below.
b. In cases where an insured item is destroyed-the Insurers shall pay the actual value
of the item immediately before the occurrence of the loss, including charges for
ordinary freight, cost of erection and customs duties, if any, but, for the boiler and
pressure vessels listed the Schedule, only provided such expenses have been
included in the sum insured, such actual value to be calculated by deducting
proper depreciation from the replacement value of the item. The Insurers shall
also pay any normal charges for the dismounting of the items destroyed, but the
salvage shall be taken into account.
Any extra charges incurred for overtime, night work, work on public holidays,
any express freight shall be covered by this Policy only if especially agreed in
writing.
The cost of any alterations, additions, improvements or overhauls shall not be
recoverable under this Policy.
The cost of any provisional repairs shall be borne by the Insurers if such repairs
constitute part of the final repairs and do not increase the total cost of repair.
The Insurers shall make payments only after being satisfied by production of the
necessary bills and documents that the repairs have been effected or replacement
has taken place, as the case may be.
Memo 3-Inspections
All the plant described in the Schedule shall be inspected within the statutory periods
by inspectors authorised by the appropriate authorities.

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Memo 4-Boiler Attendant
The said boilers shall only be operated by attendants holding a valid certificate of
competency issued under the appropriate Boiler Act.
Memo 5- Operational Status
At the time of any explosion or collapse of any boiler or other apparatus insured
hereunder the Insured shall be in possession of the unqualified permission in writing of
the competent inspecting authority to operate the said boiler or apparatus. If the
maximum pressure or load upon the safety valve immediately prior to the explosion or
collapse was in excess of that stipulated by the said authority, the Insured should not
be entitled to any compensation or indemnity under this Policy in respect of such
explosion or collapse.