ship repairers’ liability insurance - allianz australia · welcome and thank you for choosing our...
TRANSCRIPT
Ship Repairers’ Liability Insurance
Policy Document.
Allianz Marine & Transit Underwriting Agency
As a specialist, our exclusive focus is on providing solutions to clients in the marine, transport and logistics industries.
allianzmarineandtransit.com.au
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Table of contentsPage
Optional covers 13
1. Detention 13
2. HotWorkextension 13
3. Otherwork 13
4. Pollutionliability 13
5. Subcontractors 13
6. Towingliability 13
7. Travellingworkmen 13
General exclusions 14
Propertyexclusions 14
Activityexclusions 15
Typesofclaim 15
Perilsexclusions 16
Failuretonotify 18
General conditions 19
ActionsofpartiesotherthanYou 19
Assignment 19
Crossliability 19
Governinglawandjurisdiction 19
GSTnotice 19
OtherInsurance/Non-contributionClause 19
Premiumadjustment 20
Prohibitedcoverorpayments 20
Reasonablecareandmaintenance 20
Inspections 20
Claims 21
Page
Introduction and important notices 2
Introduction 2
WhoIstheInsurer? 2
AboutAllianzMarine&TransitUnderwritingAgencyandAllianz 2
OurcontractwithYou 2
UnderstandingYourPolicyanditsimportanttermsandconditions 2
Summary 3
Applyingforcover 3
Premium 3
Howtomakeaclaim 4
CancellationrightsunderthePolicy 4
Contactforassistanceorconfirmationofcover 4
Renewalprocedure 4
Alterationtorisk 4
YourDutyofDisclosure 5
Privacynotice 5
GeneralInsuranceCodeofPractice 6
Disputeresolutionprocess–helpingYousolveanyproblems 6
Ifthisinsurancehasbeenissuedthroughaninsuranceintermediary 6
Words with special meaning 7
Cover 10
StandardTermsandConditions 10
Principal’sLiability 10
Supplementarypayments 10
DischargeofLiabilities/ClaimsControlClause 11
Deductible 11
Additional benefits 12
Berthoccupiersliability 12
Boatbuildingandreconstruction/extension 12
Chandlery/Incidentalmarinesales–ProductLiability 12
Employeepersonalproperty 12
HiredinequipmentusedinShipRepairingactivities 12
Inspectionsandvaluations–errorsandomissions 12
RectificationoffaultyworkmanshipconsequentuponDamage 12
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Our contract with YouWhereWeagreetoenterintoaPolicywithYouitisacontractofinsurancebetweenUsandYou(seethedefinitionof“You”fordetailsofwhoiscoveredbythisterm).
ThePolicyconsistsof:
• thisdocumentwhichsetsoutthestandardtermsofYourcoveranditslimitations;
• YourcurrentScheduleissuedbyUs.TheScheduleisaseparatedocument,whichshowstheinsurancedetailsrelevanttoYou.Itmayincludeadditionalterms,conditionsandexclusionsrelevanttoYouthatamendthestandardtermsofthisdocument.OnlythosesectionsshownascoveredinYourScheduleareinsured;and
• anyotherchangetothetermsofthePolicyotherwiseadvisedbyUsinwriting(suchasanendorsement).Thesewrittenchangesmayvaryormodifytheabovedocuments.
Theseareallimportantdocumentsandshouldbecarefullyreadtogetherandkeptinasafeplaceforfuturereference.
Wereservetherighttochangethetermsofthisinsurancewherepermittedtodosobylaw.
AnyneworreplacementScheduleWemaysendYou,detailingchangestoYourinsuranceorthePeriodofInsurance,willbecomethecurrentSchedule,whichYoushouldcarefullyreadandretain.
Understanding Your Policy and its important terms and conditionsToproperlyunderstandthesignificantfeatures,benefitsandrisksofthisinsuranceYouneedtocarefullyread:
• therestofthis“Introductionandimportantnotices”section–thissetsouthowYouapplyforcover,thebasisonwhichWeinsureYou,thedutyofdisclosureYouneedtocomplywith,Ourprivacyinformation,Ourdisputeresolutionproceduresandotherimportantinformation;
• the“Wordswithspecialmeaning”section–thissetsoutwhatWemeanbycertainwordsusedinthePolicy.Thesewordsbeginwithacapitalletterthroughoutthisdocument;
• theCoversection,includingthestandardcoversandOptionalcovers;
• the“Generalexclusions”section–thissetsoutthegeneralexclusionsandlimitsthatapplytocoverandbenefits;
• the“Generalconditions”and“Claims”sections–thesesetoutcertaingeneralrightsandobligationsthatYouandWehave;
Introduction and important noticesIntroductionWelcomeandthankYouforchoosingOurShipRepairers’LiabilityInsurance.
Thisisanimportantdocument.Youshouldreaditcarefullybeforemakingadecisiontopurchasethisinsurance.
ItwillhelpYouto:
• decidewhetherthisinsurancewillmeetYourneeds;and
• compareitwithotherproductsYoumaybeconsidering.
PleasenotethatanyrecommendationoropinioninthisdocumentisofageneralnatureonlyanddoesnottakeintoaccountYourobjectives,financialsituationorneeds.
ThePolicyconsistsofthisdocumentandanyendorsement,specification,attachmentormemorandaaffixed(orintendedtobeaffixed)toitandtheSchedule.Allofthemshouldbereadasiftheywereonedocument.
Who Is the insurer?TheinsurerisAllianzAustraliaInsuranceLimited(Allianz)AFSLicenceNo.234708,ABN15000122850of2MarketStreet,Sydney,NSW,2000.
InthePolicydocumentWerefertoAllianzAustraliaLimitedas“We”,“Us”,“Our”and“Allianz”.
About Allianz Marine &Transit Underwriting Agency and AllianzAllianzMarine&TransitUnderwritingAgencyPtyLimitedAFSRepresentativeNo.423910ABN98155554279ofLevel1,61LavenderStreet,MilsonsPointNSW2061isanAustralianorganisationthatspecialisesinprovidinginsuranceproductsforCargo,CommercialHullandMarineLiabilities.
AllianzMarine&TransitUnderwritingAgencyhavebeengivena“binding”authoritybyAllianztoissue,varyanddisposeofthisinsuranceandsettleclaimsasagentsofAllianzasiftheywereAllianztheinsurer.
AllianzisoneofAustralia’slargestgeneralinsurers.Weutiliseyearsoflocalexpertise,combinedwithglobalexperiencetoofferawiderangeofproductsandservicestoOurcustomers.AsamemberoftheworldwideAllianzGroup,WearecommittedtocontinuousimprovementofOurproductsandservicesandstrivetoachievethisthroughknowledgetransferwithintheAllianzGroup,dedicatedtechnicalresearchunits,sharingnewproductdevelopmentsandawiderangeofriskmanagementservicesglobally.
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Applying for coverWhenYouapplybycompletingOurapplicationprocessYouneedtoprovidetheinformationWerequiretodeterminewhethertoissueaPolicyandifso,onwhatterms,including(totheextenttheyareoptional):
• thecoversandbenefitsYouwant(includingthebusinessactivitiesYouwishtocover);
• thelimitsYouwant;
• thePeriodofInsuranceYouwant;
• theDeductiblethatYouagreetocontributeforcertainclaims;
• whetheranystandardtermsneedtobevaried(thismaybebywayofanendorsement).
WhereWeagreetoissueaPolicy,coverisprovidedonthebasis:
• thatYouhavepaidoragreedtopayUsthepremiumforthecoverprovided;
• oftheverbaland/orwritteninformationprovidedtoUsbyYouwhichmusthavegiveninaccordancewithYourDutyofDisclosure.
IfYoufailtocomplywithYourDutyofDisclosureorhavemadeamisrepresentationtoUs,WemaybeentitledtoreduceOurliabilityunderthePolicyinrespectofaclaimand/orWemaycancelthePolicy.IfYouhavetoldUssomethingwhichisfraudulent,WealsohavetheoptionofavoidingthePolicy(i.e.treatingitasifitneverexisted).
YourDutyofDisclosureandtheconsequencesofnondisclosure,areprovidedundertheheading‘YourDutyofDisclosure’.
PremiumYourpremium–thebasepremiumWechargeiscalculatedbasedonanumberoffactorssuchas:
• thecoverandbenefitsprovidedincludingtheLimitofIndemnity;
• theservicesYouprovide,YourpastlosshistoryandthetotalgrossreceiptsgeneratedbyYourbusiness;
• Ourobligationtopayrelevantgovernmenttaxesandcharges.Forexample,WeincludeanamountthatcoversanystampdutyandGSTpayableinrelationtothePolicy.
WhenYouapplyforthisinsurance,Youwillbeadvisedofthetotalpremiumamountpayable,whenitneedstobepaidandhowitcanbepaid.ThisamountwillbesetoutintheSchedule,whichwillbesenttoYouaftertheentryintothePolicy.IfYoufailtopayWemayreduceanyclaimpaymentbytheamountofpremiumowingand/orcancelthePolicy.
• allofthedocumentsthatmakeupthePolicy,includingtheScheduleandanyendorsementsorotherwrittenchangestothecoverWeissueYouwith–thesecontainspecificdetailsrelevanttoYouandcanaffectthecover.
HeadingsareprovidedforreferenceonlyanddonotformpartofYourPolicyforinterpretationpurposes.
WhenYouenterintothePolicyYouconfirmandwarrantthatYouhavereadorwillreadthePolicydocumentswhenprovidedtoYou.
SummaryPleasenotethatthisisalimitedsummaryonlyanddoesnotformpartofthetermsofthePolicy.Thecoverissubjecttoterms,conditions,exclusionsandlimitationsandanyendorsementsapplyingtothePolicythatarenotlistedinthesummary.YouneedtoreadthePolicy(i.e.thisdocumentandanyendorsement,specification,attachmentormemorandaaffixed(orintendedtobeaffixed)toitandtheSchedule)toproperlyunderstandthecoverprovided.
1. Cover summary
WewillcoverYouduringthePeriodofInsuranceshownontheScheduleforamountsthatYouarelegallyliabletopayasCompensationforDamagetoWatercraftinYourphysicalorlegalcontroland/orcertainPersonalInjurywhichoccursduringthePeriodofInsuranceandinconnectionwithYourShipRepairBusiness(asdefined).
WeonlycoverthosepartiesshownintheScheduleunlessotherwisestatedinthePolicyasbeingapersonorentityentitledtocover.
ThemaximumamountWewillpayunderthePolicyforanyoneOccurrenceandintheaggregateforallOccurrenceswillnotexceedtheLimitofIndemnityshownontheSchedule.
2. No Workers Compensation cover
ThisPolicydoesnotprovidecoverforanyliabilityunderWorkersCompensationLaw.Suchcoveriscompulsoryforemployers(exceptexemptemployers)andYoushouldarrangeseparateinsurance.
3. Your obligation to comply with the Policy terms and conditions
YouarerequiredtocomplywiththetermsandconditionsofthePolicy.PleaserememberthatifYoudonotcomplywithanytermorcondition,Wemay(totheextentpermittedbylaw)declineorreduceanyclaimpaymentand/orcancelYourPolicy.
IfmorethanonepersonisinsuredunderthePolicy,afailureorwrongfulactionbyoneofthosepersonsmayadverselyaffecttherightsofanyotherpersoninsuredunderthePolicy.
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How to make a claimIfYouneedtomakeaclaimunderthePolicy,pleaserefertotheClaimsSection.
Cancellation rights under the Policya) YouorYourbrokeronYourbehalfmaycancelYour
PolicyatanytimebynotifyingUsinwriting.
b) WehavetherighttocancelYourPolicywherepermittedbylaw.
1. Where the Insurance Contracts Act 1984 applies
TheInsuranceContractsAct1984permitsUstocancelpoliciesinanumberofsituations,includingbutnotlimitedto:
(i) whereYoufailedtocomplywithYourdutyofdisclosure;or
(ii) whereYouhavemadeamisrepresentationtoUsduringnegotiationspriortotheissueofYourPolicy;or
(iii)whereYoufailedtocomplywithaprovisionofYourPolicy,includingthetermrelatingtopaymentofpremium;or
(iv)whereYoumadeafraudulentclaimunderYourPolicyorundersomeothercontractofinsurancethatprovidescoverduringthesameperiodoftimethatYourPolicycoversYou.
2. Where the Marine Insurance Act 1909 applies
WemaycancelthisPolicyintheeventofnon-paymentofthePremiumorforanyotherreasonavailableatlawbygiving30daysnoticeofcancellation.
3. Cancellation notice
IfWedecidetocancelYourPolicy,WewillgivenoticetoYouorYouragentinwriting.Suchcancellationwillbeeffectivefrom4pmonthethirdbusinessdayafterthedaythenoticeisgiventoYouorYouragent,unlessitspecifiesalaterdate.
Note:ApostednoticeisdeemedgiventoYouatthetimeitwouldhavebeendeliveredintheordinarycourseofthepostalservice.
4. Returns for cancellation
IfYouorWecancelYourPolicyWemaydeductfromtherefundamount:
(i) aprorataproportionofthepremiumfortimeonrisk;
(ii) 10%ofthepremiumremainingafterapplyingClause(i)above,asadministrativecostsrelatedtotheacquisitionandterminationofYourPolicy;and
(iii)anygovernmenttaxesordutiesWecannotrecover.
YouwillnotreceivearefundofpremiumifYouhavealreadymadeaclaimorifcircumstanceshavearisenentitlingYoutomakeaclaim.
5. Premium funders
IfthepremiumhasbeenfundedbyapremiumfundingcompanywhichholdsalegalrightoverthePolicybyvirtueofanoticeofassignmentand/orirrevocablepowerofattorney,anyrefundcalculatedinaccordancewithClause4abovewillbemadetothepremiumfundingcompany.
Contact for assistance or confirmation of coverIfYouneedtoconfirmanyPolicytransactionorclarifyanyoftheinformationcontainedinthisdocumentorifYouhaveanyotherqueries,pleasecontactUsviathedetailsonthebackcover.
Renewal procedureBeforeYourPolicyexpires,WewilladviseYouwhetherWeintendtoofferrenewalandifsoonwhatterms.
ThisdocumentalsoappliesforanysubsequentPeriodofInsurance(renewal),unlessWetellYouotherwise.
ItisimportantthatYoucheckthetermsofanyrenewalbeforerenewingtosatisfyYourselfthatthedetailsarecorrect.InparticularcheckthesuminsuredamountstoensurethelevelsofcoverareappropriateforYouandtoensurethatYouareproperlycoveredintheeventofamajorclaim.
PleasenotethatYouneedtocomplywithYourDutyofDisclosurebeforeeachrenewal(seebelow).
Alteration to riskWhere the Insurance Contracts Act applies
ItisimportantthatYouadviseUsimmediatelyifYoubecomeawareofanychangestothefactsorcircumstanceswhichexistedwhenthisinsurancecommencedthatalterthenatureoftherisk(forexample,thenature,ortype,ofYourShipRepairBusiness),oranyothercircumstancesthataffectorinawaythatwouldincreasetheriskofloss,Damageorliability.WhenWereceivenotificationofachangeWemaydecidetoagreetothechangeandadjustthepremiumortermsofthePolicy,ortocancelthePolicy.
RegardlessofOurdecision,WewillinformYouinwritingand,whereWehaveagreedtothechanges,YoumustpayUsanyadditionalpremiumWemayrequire.
Where the Marine Insurance Act applies
YoumustgiveUsimmediatenoticeinwritingifthereisanymaterialchangeinthecircumstancesornatureoftheriskscoveredbythisPolicy,ornoclaimarisingafterthechangeshallbepayableunlessWehaveagreedtothechangeinwriting.
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Your Duty of DisclosureBeforeenteringintoacontractofgeneralinsurancewithUs,Youhaveaduty,undertheInsuranceContractsAct1984andtheMarineInsuranceAct1909(asapplicable)todisclosetoUseverymatterwhich:
• Youknow;or
• couldreasonablybeexpectedtoknow,
isrelevanttoOurdecisionwhetherandonwhattermsYourapplicationforinsuranceisacceptableandtocalculatehowmuchpremiumisrequiredforYourinsurance.
YouhavethesamedutytodisclosethosematterstoUsbeforeYourenew,extend,varyorreinstatethePolicy.
Thisdutyofdisclosureappliesuntilthecontractisenteredinto(orwhererelevantrenewed,extended,variedorreinstated(RelevantTime)).IfanythingchangesbetweenthetimeYouprovideanswersormakedisclosureandtheRelevantTime,YouneedtotellUs.
What You do not need to tell Us
YoudonotneedtotellUsaboutanymatterthat:
• diminishesOurrisk;
• isofcommonknowledge;
• Weknoworshouldknowasan;or
• WetellYouWedonotneedtoknow.
Who does the duty apply to?
ThedutyofdisclosureappliestoYouandeveryonethatisaninsuredunderthePolicy.IfYouprovideinformationforanotherinsured,itisasiftheyprovidedittoUs.
What happens if the duty of disclosure is not complied with?
Where the Insurance Contracts Act appliesIfthedutyofdisclosureisnotcompliedwithWemaycancelthePolicyand/orreducetheamountWepayifYoumakeaclaim.Iffraudisinvolved,WemaytreatthePolicyasifitneverexisted,andpaynothing.
Where the Marine Insurance Act 1909 appliesWheretheMarineInsuranceAct1909applies,ifYoufailtocomplywithYourdutyofdisclosure,Wemayavoidthecontractfromitsbeginning.
Privacy noticeAtAllianz,WegiveprioritytoprotectingtheprivacyofYourpersonalinformation.WedothisbyhandlingpersonalinformationinaresponsiblemannerandinaccordancewiththePrivacy Act 1988 (Cth).
How We collect Your personal information
WeusuallycollectYourpersonalinformationfromYouorYouragents.WemayalsocollectitfromOuragentsandserviceproviders;otherinsurersandinsurancereferencebureaus;peoplewhoareinvolvedinaclaimorassistUsininvestigatingorprocessingclaims,includingthirdpartiesclaimingunderYourPolicy,witnessesandmedicalpractitioners;thirdpartieswhomaybearranginginsurancecoverforagroupthatYouareapartof;lawenforcement,disputeresolution,statutoryandregulatorybodies;marketinglistsandindustrydatabases;andpubliclyavailablesources.
Why We collect Your personal information
WecollectYourpersonalinformationtoenableUstoprovideOurproductsandservices,includingtoprocessandsettleclaims;offerOurproductsandservicesandthoseofOurrelatedcompanies,brokers,intermediariesandbusinesspartnersthatmayinterestYou;andconductmarketorcustomerresearchtodeterminethoseproductsorservicesthatmaysuitYou.YoucanchoosenottoreceiveproductorserviceofferingsfromUs(includingproductorserviceofferingsfromUsonbehalfofOurbrokers,intermediariesand/orOurbusinesspartners)orOurrelatedcompaniesbycallingtheAllianzDirectMarketingPrivacyServiceLineon1300360529,EST8am-6pmMondaytoFriday,orgoingtoOurwebsite’sPrivacysectionatwww.allianz.com.au.
Who We disclose Your personal information to
WemaydiscloseYourpersonalinformationtootherswithwhomWehavebusinessarrangementsforthepurposeslistedintheparagraphaboveortoenablethemtooffertheirproductsandservicestoYou.Thesepartiesmayincludeinsurers,intermediaries,reinsurers,insurancereferencebureaus,relatedcompanies,Ouradvisers,personsinvolvedinclaims,externalclaimsdatacollectorsandverifiers,partiesthatWehaveaninsuranceschemeinplacewithunderwhichYoupurchasedYourPolicy(suchasafinancierormotorvehiclemanufacturerand/ordealer).Disclosuremayalsobemadetogovernment,lawenforcement,disputeresolution,statutoryorregulatorybodies,orasrequiredbylaw.
Disclosure overseas
YourpersonalinformationmaybedisclosedtoothercompaniesintheAllianzGroup,businesspartners,reinsurersandserviceprovidersthatmaybelocatedinAustraliaoroverseas.Thecountriestowhichthisinformationmaybedisclosedwillvaryfromtimetotime,butmayincludeCanada,Germany,NewZealand,UnitedStatesofAmericaandothercountriesinwhichtheAllianzGrouphasapresenceorengagessubcontractors.WeregularlyreviewthesecurityofOursystemsusedforsendingpersonalinformationoverseas.Anyinformationdisclosedmayonlybeusedforthepurposesofcollectiondetailedaboveandsystemadministration.
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Access to Your personal information and complaints
YoumayaskforaccesstothepersonalinformationWeholdaboutYouandseekcorrectionbycalling1300360529EST8am-6pm,MondaytoFriday.OurPrivacyPolicycontainsdetailsabouthowYoumaymakeacomplaintaboutabreachoftheprivacyprinciplescontainedinthePrivacy Act 1988 (Cth)andhowWedealwithcomplaints.OurPrivacyPolicyisavailableatwww.allianz.com.au.
Telephone call recording
Wemayrecordincomingand/oroutgoingtelephonecallsfortrainingorverificationpurposes.WhereWehaverecordedatelephonecall,WecanprovideYouwithacopyatYourrequest,whereitisreasonabletodoso.
General Insurance Code of PracticeTheGeneralInsuranceCodeofPracticewasdevelopedbytheInsuranceCouncilofAustraliatofurtherraisestandardsofpracticeandserviceacrosstheinsuranceindustry.WekeenlysupportthestandardssetoutintheCode.YoucanobtainmoreinformationontheCodeofPracticeandhowitassistsYoubycontactingUs.Contactdetailsareprovidedonthebackcover.
Dispute resolution process – helping You solve any problemsWestrivetodothingstherightwayandkeepOurcustomershappy.Sometimesthough,complaintsordisputesdooccurandwhenthishappensOurobjectiveistoresolveanydisagreementasamicablyandasquicklyaspossible.
WebelievethebestwaytoachievethisistoprovideYouwithanopportunityforanunbiasedreviewoftheissue.
Here is what to do if a complaint or dispute arises
RegardlessofwhetherthecomplaintordisputeinvolvesOurstaff,anagent,lossadjuster,assessor,investigatorortheserviceWeprovide,simplycontactUson132664EST8am-6pm,MondaytoFriday,speaktooneofOurcallcentreoperatorsandprovidethemwiththedetailsoftheissueconcerningYou.Theywillattempttoresolvethecomplaintordispute;iftheyareunabletodosotheywilllogitandreferittotheappropriatebusinessunitforresolution.
WithinOurorganisationWehaveestablishedacomplaintsanddisputesresolutionprocess.Thisisafreeservice.Itisasystemdesignedtolog,track,escalateandmonitorcomplaintsreceivedfromclientsandcustomersaboutOurservicesandproducts.AstaffmemberinvolvedinthecomplaintsanddisputesresolutionprocesswillwritetoYouwithin15workingdaysadvisingtheoutcomeofthereviewandreasonsfortheirdecision.WedonotconsideracomplaintordisputetoberesolveduntilaproposedresolutionorsolutionhasbeencommunicatedtoYouandYouhaveacceptedtheresolutionorsolution.
If You are not satisfied with the outcome of this process
IfWeareunabletoresolvethecomplaintordispute,WewilladviseYouaboutanyexternaldisputeresolutionoptionsthatareavailableoradviseYoutoseekindependentlegaladvice.
If this insurance has been issued through an insurance intermediaryIfYourPolicyhasbeenissuedthroughOuragent,orabrokerwhoisactingunderanagencyarrangementsuchasabinderwithUs,thentheyareactingasOuragentandnotasYouragent.
IfYourPolicyhasbeenarrangedorissuedbyabroker,otherthanabrokeractingundersuchanagencyarrangementwithUs,thenthebrokerisactingasYouragent.
WherethisPolicyhasbeenarrangedthroughanintermediaryacommissionmaybepayablebyUstothemforarrangingtheinsurance.
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Words with special meaningAircraftmeansanyvessel,craftordevicemadeorintendedtoflyormoveinorthroughtheatmosphereorspace.
Business Premisesmeansthelandandbuildingsorpartsofbuildings,includingcarparks,yard,berthsandfacilitiesowned/occupiedbyYoumakingupthefacilitywhereYouperformYourShipRepairBusinessattheSituation(s)notedintheSchedule.
CompensationmeansmoneypayablebywayofDamagesbyreasonofajudgementorderedbyaCourtofcompetentjurisdiction,orbyreasonofanyawardofacompetentarbitraltribunal,orbyreasonofanysettlementofanyclaimnegotiatedwithOurpriorconsent.Compensationdoesnotincludeanypunitive,exemplary,aggravateddamagesandanyadditionaldamagesresultingfromthemultiplicationofcompensatorydamages.
Damage(d)meansphysicalloss,destructionorDamage.
EmployeesmeansanypersonemployedbyYouordeemedtobeemployedbyYouoronYourbehalfinanycapacitypursuanttoanylaw,butnotincludingSubcontractorsortheworkersofSubcontractors.
Employment Practicesmeansanywrongfulorunfairdismissal,failuretopromote,negligentreassignment,negligentdisciplinaryaction,denialofnaturaljustice,refusaltoemploy,demotion,negligentevaluation,harassment,invasionofprivacy,defamation,misleadingrepresentationoradvertising,sexualharassmentordiscriminationinrespectofemployment,orprospectiveemployment,byYou.
DeductiblemeanseithertheamountofmoneyspecifiedintheScheduleorPolicythatYoumustcontributeasthefirstpaymentforeachclaimforwhichnopaymentwillbemadebyUswhereapplicable.AnyseparatedeductiblesforspecificcoverslistedintheSchedulewillapplycumulatively.Adeductiblemaybeexpressedaseitheramonetaryamountor,insomeinstances,asaperiodoftime.
Fungus/Fungi meansanyplantsororganismsbelongingtothemajorgroupFungi,lackingchlorophyllandincludingMoulds,rusts,mildews,smutsandmushrooms.
Gross Earnings meansthetotalcharges(collectedoruncollected)madebyYouinrelationtoYourShipRepairBusinessduringthePeriodofInsurancewhichareincludedintherevenuefiguresstatedinYourannualprofitandlossstatement/statementoffinancialperformance.NodeductionshallbemadefromtheGrossEarningsinrespectofanysub-contractedwork.
Hot Work meansworkinvolvingtheuseofoxyacetylenetorches,soldering,weldingoroiltankcleaningequipment.HotWorkconductedonanyWatercraftpreviouslyutilisedtocarryexplosives,oilorotherflammableliquidsorgasesorarisinginconnectionwithworkonornearanyfueltank,fuelorpipeline,bunkerspace,machinerycompartmentorengineroomisnotcoveredunlessYouhaverequestedtheOptionalCover2HotWorkextensionandhavecompliedwiththeconditionsoftheextensionasdetailedonpage13.
Hovercraftmeansanyvessel,craftordevicemadeorintendedtofloatonorinortravelonorthroughtheatmosphereorwateronacushionofairprovidedbyadownwardblast.
Intentional or Reckless Conduct meanseitheranact,orfailuretoact,wheresuchactoromissionisintendedtocauselossorperformedrecklesslyandwithknowledgethatsuchlosswaslikely.
Incidental Contracts means:
1. anywrittenrentalagreementorleaseofrealpropertywhichdoesnotimposeonYou:
• anobligationtoinsuresuchproperty;or
• anyliabilityregardlessoffault;
2. anywrittencontractwithanypublicauthorityforthesupplyofwater,electricity,fuel,gas,air,steam,wastedisposalfacilities,telecommunications,orotheressentialservices/utilitiesexceptthosecontractsinconnectionwithworkdoneforsuchauthoritiesorentities,butonlytotheextentofindemnifyinganysuchauthorityinrespectofliabilityarisingoutofYourShipRepairBusiness;
3. anywrittencontractmadeorenteredintowithanyrailwayauthorityinconnectionwithYourShipRepairBusiness.
Limit of Indemnity meanstheamountstatedintheSchedule.ThisisthemaximumamountWewillpayforanyclaimorclaimsarisingfromoneOccurrence,providedthat,foralllegalliabilitydirectlyorindirectlyarisingoutoforinanywayrelatedtoYourProductsorYourShipRepairBusiness,OurtotalaggregateliabilityduringanyonePeriodofInsurancewillnotexceedtheLimitofIndemnity.TheLimitofIndemnityisinclusiveofandnotadditionaltoanyapplicableDeductible.
Mould means,anysuperficialgrowthproducedondampordecayingorganicmatteroronlivingorganisms,andFungithatproducedMoulds.
Occurrence meansanyeventresultinginPersonalInjuryorPropertyDamageneitherexpectednorintendedbyYou.Anyseriesofeventsconsequentuponorattributabletoonesourceororiginatingcause,includingcontinuousorrepeatedexposuretosubstantiallythesamegeneralconditions,whichresultinPersonalInjuryand/orPropertyDamage,aredeemedtobeoneOccurrence.
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Period of Insurance meanstheperiodcommencingontheeffectivedateandendingontheexpirydateasshownintheSchedule.
Personal Injurymeans:
• death,bodilyinjury,sickness,disease,disability,shock,fright,lossofconsortium,mentalanguishandmentalinjury;
• assaultand/orbattery,notcommittedbyYouoratYourdirection,unlesscommittedforthepurposeofpreventingoreliminatingdangertoanypersonorproperty.
UnderthisPolicywording,PersonalInjurydoesnotincludelibel,slander,defamationofcharacterorinvasionofrightofprivacy,anybreachesofEmploymentPracticeslegislationoranyactoractsofsexualorphysicalmolestationoforsexualinterferencebyYou.
Policy meansthisdocument,theScheduleandanyendorsement,specification,attachmentormemorandaaffixedtoitandanyotherdocumentthatpartiesagreeinwritingwillformpartofthePolicy.
Pollutants meansanysolid,liquid,gaseousorthermalirritantorcontaminant,includingbutnotlimitedtosmoke,vapour,soot,fumes,acids,alkalis,chemicalsorwaste.Wasteincludesmaterialtoberecycled,reconditionedorreclaimed.
Pollution meansthedischarge,dispersal,releaseorescapeofsmoke,vapours,soot,fumes,acids,alkalis,toxicchemicals,toxicliquids,toxicgasses,wastematerials(includesmaterialstoberecycledreconditionedorreclaimed)orotherirritants,contaminantsorPollutantsintooruponanyproperty,land,theatmosphereoranywatercourseorbodyofwater(includinggroundwater).
Premises Liability meansYourlegalliabilityarisingfromtheownership,tenancyoruseofYourBusinessPremises(includingbuildings,outbuildings,structures,openspacesandcarparks),oranyotherpremises.
Principal’s Liability meansliabilityYouhaveinrespectofanOccurrencewhereYouareperformingYourShipRepairBusinessassub-contractortoanotherparty(the“Principal”).
Products meansanything(afterithasceasedtobeinYourphysicalpossessionorunderYourcontrol)manufacturedordeemedtohavebeenmanufactured,constructed,extracted,produced,processed,assembled,erected,installed,repaired,serviced,treated,sold,supplied(includingservices)ordistributedbyYou,whichformspartoftherepair,installation,assemblyormaintenanceworkcarriedoutbyYouonWatercraftinthecourseoforarisingfromYourShipRepairBusinessincludinganycontainerotherthanaVehicleusedtopackageorcontainYourProduct(s),butexcluding:
• second–handorusedparts;
• anyitemwhichdoesnotformpartoftherepair,installation,assemblyormaintenanceworkcarriedoutbyYouonWatercraftorasprovidedundertheAdditionalBenefit–Chandlery/IncidentalMarineSales–ProductLiability,unlessYouhaverequestedandWehaveagreedtoprovidetheOptionalcoverforOtherworkandthentotheextentofcoverprovidedundertheOptionalExtension–Otherworkonly.
Products Liability meansYourlegalliabilitytopaydamagesforanOccurrencecausedbyanunknowndefectinYourProducts.
Property Damage means:
a) physicalDamageto,physicallossoforphysicaldestructionoftangibleproperty,includinganyresultantlossofuse;or
b) lossofuseoftangiblepropertythathasnotbeenphysicallyDamaged,physicallylostorphysicallydestroyed,providedsuchlossofuseiscausedbyphysicalDamageto,physicallossoforphysicaldestructionofothertangibleproperty;
Proposal meanstheapplicationformcompletedbyYouoronYourbehalforthequotationslipsubmittedonYourbehalfinwhichYouprovidedtheinformationuponwhichWereliedtoenterintoYourPolicy.
Schedule meansthemostcurrentScheduletoYourPolicythatWegiveYouwhichspecifiesdetailssuchasPolicynumber,Deductible(s)andLimitsofIndemnity.ItalsoincludesanydocumentsthatWeandYouagreeinwritingwillformpartoftheSchedule.
Ship Repair Business means,andislimitedto,Youractivitiesasashiprepairerwhichincludesrepair,installation,serviceand/ormaintenanceworkcarriedoutonWatercraft,includingrigging,mastassemblyandoperationoftravellifts.
ShipRepairBusinessdoesnotmean:
• thebuilding,assemblyand/orrebuilding,reconstruction,extensionorconversionofWatercraft–otherthanasprovidedundertheAdditionalBenefits–BoatBuildingandreconstruction/extension;
• towingorstorageofWatercraft;
• drilling,blasting,coresampling,dredgingand/ordepositingofspoil,piledriving,cableorpipelaying,orprofessionaloilspillresponse;or
• anyotherpartofYourbusinessthatisnottheactivityofrepairing,servicingand/ormaintainingWatercraft;
unlessWehavespecificallyagreedinwritingtoacceptandprovidecoverforsuchactivitiesunderoneoftheAdditionalBenefitsonpage12orOptionalCoversnotedonpage13wheretherelevantOptionalCoverislistedintheSchedule.
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Workers Compensation Law meansanylawrelatingtocompensationforinjurytoworkersoremployees.
We, Us, Our, Allianz meanstheinsurer,AllianzAustraliaInsuranceLimitedAFSLicenceNo.234708ABN15000122850(Allianz)of2MarketStreet,Sydney,NSW,2000,actingthroughitsagentAllianzMarine&TransitUnderwritingAgencyPtyLimited.
You, Your, Yours means:
a) theinsuredshownintheSchedule;
b) anysubsidiarycompaniesoftheinsuredreferredtoinClausea)aboveexistingatthecommencementdateofthePeriodofInsuranceasshownintheSchedule,whoseplaceofincorporationiswithinAustraliaoritsexternalterritories;
c) (i) anycompanyacquiredby,andwhoseoperationsarecontrolledandmanagedby,YouoracompanyreferredtoinClauseb.aboveduringthePeriodofInsuranceasaresultofconsolidation,mergerorpurchase;
(ii) anysubsidiarycompanythatisincorporatedbyYou,orbyacompanyreferredtoinClauseb)above,duringthePeriodofInsurance;
Providedthat:
(iii) anysuchacquisitionorincorporationisnotifiedtoUswithinninety(90)days;
(iv) thenewly-acquiredorincorporatedcompanyisincorporatedwithinAustraliaoritsexternalterritories;
d) (i) anydirector,executiveofficer,EmployeeorpartnerofYouoracompanyreferredtoinClausesb)orc)above,butonlywhileactingwithinthescopeoftheirdutiesinsuchcapacity;and
(ii) anyshareholderofacompanyreferredtoinClausesa),b)orc)above,butonlywhileactingwithinthescopeoftheircapacityasshareholdersofsuchcompany;
e) anyprincipalinrespectofsuchprincipal’svicariousliabilityfortheactsoromissionsoftheInsuredshownintheScheduleoracompanyreferredtoinClausesb.orc.above,intheperformanceofworkforsuchprincipal,subjectalwaystotheextentofcoverandLimitofIndemnityprovidedinthePolicy.
Situation(s)meanstheSituation(s)statedintheSchedule.
Spore(s) meansanydormantorreproductivebodyproducedbyorarisingoremanatingoutofanyFungus/Fungi,Mould(s),mildew,plants,organismsormicroorganisms.
Standard Terms and Conditions meansthedocumentsettingoutYourentiretermsandconditionsrelatingtotheprovisionofYourShipRepairBusinesswhichexcludeYourliabilityforlossorDamagewhatsoeverandhowsoevercaused.
Subcontractors meanscompanies(andtheemployeesofsuchcompanies),personsorabusinesswhoarenotYourEmployeesthatareengagedbyYoutoperformworkassociatedwithYourShipRepairBusiness.
Sub Limit meanstherelevantsublimitshowninthePolicyforaparticularitemorOccurrencethatWewillnotpaymorethan.
Territorial Limits meansthegeographicalareaofoperationsWehaveagreedtoasspecifiedintheSchedule.Unlessotherwiseprovided,thisislimitedtoYourBusinessPremises,theshipyard,ortheportatwhichtheworkisbeingcarriedoutatandTrialTrips.
Terrorism Terrorism,oran“actofterrorism”includesanyact,orpreparationforaction,orthreatofactiondesignedtoinfluencethegovernmentdejureordefactoofanynationoranypoliticaldivisionthereof,orinpursuitofpolitical,religious,ideologicalorsimilarpurposestointimidatethepublicorasectionofthepublicofanynationbyanypersonorgroup(s)ofpersons,whetheractingaloneoronbehalfoforinconnectionwithanyorganisation(s)orgovernment(s)dejureordefacto,andwhich:
a) involvesviolenceagainstoneormorepersons;or
b) involvesDamagetoproperty;or
c) endangerslifeotherthanthatofthepersoncommittingtheaction;or
d) createsarisktohealthorsafetyofthepublicorasectionofthepublic;or
e) isdesignedtointerferewithortodisruptanelectronicsystem.
Trial Trip meansatrialtripfromtheyardorportatwhichtherepairsormaintenancewerecarriedoutwhichiswithin200kilometresfromsuchyardorport.
Vehicle meansanytypeofselfpoweredmachinethatisdesignedtotravelonwheelsoronself-laidtracks(otherthanship-lifters,marinetravellifts,jinkers,slipways,cradlesoranyothermobileship-liftingdevice).
Watercraft meansanyvessel,craftorthing(otherthanaHovercraftorsubmersible,fixedpontoons,berthsorjetties)designedtofloatonorinortravelonorthroughwater.
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CoverSubjecttotheterms,conditionsandexclusionscontainedinthisPolicyWewillindemnifyYou,uptotheLimitofIndemnityshownintheSchedule,forallamountswhichYoubecomelegallyliabletopayasCompensation(excludingpunitive,exemplary,aggravateddamagesandanyadditionaldamagesresultingfromthemultiplicationofcompensatorydamages)byreasonofYourlegalliabilityforanOccurrencethatarisesduringthePeriodofInsuranceinthecourseofYourShipRepairBusinesswhichresultsin:
a) LossoforDamageto:
(i) anyWatercraft,includingmachineryandequipmentwhichisinYourphysicalorlegalcontrolforthepurposeofYourShipRepairBusinessincluding:
• TrialTrips,shiftingandmovingoftheWatercraftwithinthelimitsoftheportatwhichtheworkisbeingcarriedout;
• itemstemporarilyremovedfromtheWatercraftincludingwhilstintransitforthepurposesofrepairs;
(ii) anyotherthirdpartyWatercraftinthevicinityofYourShipRepairBusinessorarisingfromYournavigationofaWatercraftreferredtoinClausea)(i);
(iii) cargo,contentsorotherpropertyonordischargedfromanyoftheWatercraftreferredtoinClausesa)(i)or(ii)above;
(iv) otherthirdpartyproperty(excludinghiredinequipmentandEmployeeorvisitorpersonalpropertyexceptasprovidedforundertheAdditionalbenefitssection);
b) removalofwreckcostsincurredbyYouinrelationtoWatercraftreferredtoinClausesa)(i)and(ii)andfollowingDamagetotheWatercraft;
c) ProductsLiability;
d) PersonalInjurybutexcluding:
• anyclaimarisingdirectlyorindirectlyunderWorkersCompensationLawororanyotherStatutoryorCommonLawliabilityinrespectoflossoflife,bodilyinjuryto,orillnessofanyworkerorotherpersonemployedinanycapacitywhatsoeverbyYou,YouragentsorSub-Contractorswhensuchlossoflife,bodilyinjuryorillnessarisesoutoforinthecourseoftheemploymentofsuchworkerorotherperson;
• PersonalInjurydirectlyorindirectlycausedbyasbestosorsilicaproducts.
WewillalsopayforthirdpartyPropertyDamageorPersonalInjuryarisingfromorinconnectionwithincidentalmedical,nursingandfirstaidservices,firebrigadeandambulanceservicesprovidedbyYouatYourBusinessPremisesincludingtheservicesadministeredbyYourEmployeesexceptwheremorespecificallyinsuredelsewhereandsubjectalwaystoallterms,clauses,exclusionsandconditionsofthisinsurance.
WereservetherightsofsubrogationagainstanySubcontractorexceptthosespecificallydeclaredtoUsandaddedtothisPolicyasanadditionalinsuredundertheOptionalCover5.Subcontractorsbelow.
Standard Terms and ConditionsForrepairsconductedtoanycommerciallyoperatedWatercraft,itisaconditionofthiscoverthatYoumustincorporateYourStandardTermsandConditionswhichexcludeYourliabilityforlossorDamagewhatsoeverandhowsoevercausedintotheagreementwiththeowneroftheWatercraftor,theirauthorisedrepresentative,priortocommencinganyrepair,serviceand/ormaintenance.
Principal’s LiabilityWhereYouareemployedasasub-contractortoanotherparty(The“Principal”)thecoverprovidedunderthisPolicywillindemnifyYouforamountsYouarelegallyliabletopayinrelationtoYourShipRepairBusinessassub-contractortothePrincipalforanOccurrenceduringthePeriodofInsuranceinthecourseoftheworkYouareengagedtoperform.
Supplementary paymentsSubjecttotheprovisosbelow,inadditiontotheLimitofIndemnity,Wewillalsomakethefollowingsupplementarypayments:
a) allcharges,expensesandlegalcostsincurredbyUsand/orbyYouwithOurpriorwrittenconsentintheinvestigation,reporting,settlementordefenceofanyclaimorsuitforCompensationforwhich:
(i) YouareentitledtocoverunderthisPolicy;or
(ii) YouwouldbeentitledtocoverunderthisPolicyifsuchclaimorsuitweretobesustained;
b) alllegalcostsawardedororderedorassessedagainstYouinanysuchsuitorclaimandallinterestonthejudgmentorsettlementamountaccruingaftertheentryofjudgmentagainstYouuntilWehavepaid,tenderedordepositedincourtsuchpartofthejudgmentasdoesnotexceedtheLimitofIndemnity;
c) allexpensesincurredbyYouforprovidingfirstaidtoothersforPersonalInjuryforwhichYouarecoveredbythisPolicy(otherthanmedicalexpensesprohibitedbylaw);
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e) WemayatanytimepaytoYoutheappropriateLimitofIndemnity(afterdeductingfromitanyamountsalreadypaid)oranylesseramountforwhichaclaimorclaimsmaybesettled.IndoingsoWewillrelinquishtheconductof,andshallbeundernofurtherliabilityinconnectionwith,suchclaimorclaimsexceptforcostsandexpensesincurredbeforeWemadesuchpayment.
IfYouobjecttoOurproposaltosettleorcompromiseanyclaimandwishtocontestorlitigatethematter,thenYoumayelecttodosobyinformingUsinwriting.However,shouldYoudecidetodoso,Ourliabilityshallnotexceedtheamountforwhich,butforYourelection,itcouldhavebeensettledorcompromisedbyUs,togetherwithcostsandexpensespayableinaccordancewiththetermsofthisPolicyandincurreduptothetimeofsuchelection,alwayssubjecttotheDeductibleandLimitofIndemnity.
DeductibleYoumustbeartheDeductibleshownintheScheduleforthisPolicyforeachOccurrence,includingforanysupplementarypaymentsmade.
Providedthat:
d) ifapaymentexceedingtheLimitofIndemnityhasorisrequiredtobemadetodisposeofaclaim,OurliabilitytomakesupplementarypaymentswillbelimitedtosuchproportionofthesupplementarypaymentsastheLimitofIndemnitybearstotheamountpaidorrequiredtobepaidtodisposeoftheclaim.WheretheapplicationofthisClausemeansthatYouareliabletorepaysupplementarypaymentstoUs,WemaysetofftheamountthatYouoweUsagainstanyotherentitlementsYouhaveunderthePolicy;
e) supplementarypaymentsinconnectionwithclaimsmadeand/oractionsinstitutedagainstYouwithintheUnitedStatesofAmericaorCanadaorclaimsandactionstowhichthelawsoftheUnitedStatesofAmericaorCanadaapplywillformpartoftheLimitofIndemnityandnotbeadditionaltoit;
f) ifinsettlingordisposingofanyclaimcoveredunderthisPolicyCompensationispayableinexcessoftheLimitofIndemnity,OuradditionalliabilityinrespectofanycostsincurredforaclaimarisingunderoneoftheAdditionalBenefitslistedonpage12orOptionalCoverslistedonpage13towhichaSublimitapplies,willbelimitedtothesameproportionofthesecostsastheSublimitbearstothetotalCompensationpayabletodisposeoforsettletheclaim.
Discharge of Liabilities/Claims Control ClauseWemay,atanytime,beentitled(butnotobliged)tocontrolortakeovertheconductoftheinvestigationdefenceandsettlementofanyclaimsuitorproceedingagainstYouwhichisorislikelytobethesubjectofindemnityunderthisinsurance.Inthesecircumstances:
a) Weshallhavefulldiscretionintheconduct,defenceorsettlementofanyclaim.ThisincludestherighttoinstructlawyerstoprovideadviceastoYourliabilityandtorepresentYou;
b) subjecttotheprovisionsoftheInsuranceContractsAct1984orMarineInsuranceAct1909,WehavetherighttorecoverorobtaincontributionfromanypersonagainstwhomYoumaybeabletoclaimandtherighttotakeactioninYourname;
c) YouandanyotherpersonentitledtobenefitunderthisPolicymustnothindertheserightsandmustgiveallsuchinformationandcooperationasWemayrequire;
d) Youmustnot,intheabsenceofOurconsent,makeoracceptanyofferorpayment,orinanyotherwayadmitliability,settleorattempttosettleanyclaim,ordefendanyclaim;
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Additional benefitsBerth occupiers liabilityThisPolicyisextendedtoprovidecoverforYourlegalliabilityarisingfromYourownership,tenancyoruseofaberth,jetty,pontoonandmooringinthecourseofYourShipRepairBusiness.
Boat building and reconstruction/extensionThedefinitionofShipRepairBusinessisextendedtoincludetheconstruction(includingreconstructionorextensionswhichentailachangeindimension,tonnageortype)ofWatercraftwithContractvaluesuptobutnotexceeding$50,000(unlessadifferentlimitisspecifiedintheSchedule)providedsuchworkdoesnotconstitutemorethan20%ofthetotalGrossEarningsofYourShipRepairBusiness,unlessotherwiseagreedbyUsinwriting.
Chandlery/Incidental marine sales – Product LiabilityThisPolicyisextendedtocoverYourlegalliabilityforincidentalchandlery/salesofmarineProductsnotdirectlyassociatedwithShipRepairs,providingsuchsalesdonotexceed10%ofYourtotalincomeandsubjecttoalimitanyoneOccurrenceof$100,000(unlessotherwiseagreedandlistedintheSchedule).
Employee personal propertyWhereWehaveacceptedaclaimforYourlegalliabilitytopayCompensationasaresultofoneofthecircumstanceslistedunderTheCoveritemsa)toi)above,WewillalsoindemnifyYouagainstlegalliabilityforDamagetothepersonalproperty,toolsandeffectsofanyofYourdirectors,partners,proprietors,officers,executivesorEmployeesfollowinganOccurrence,uptoamaximumof$1,500perEmployeeand$10,000intheaggregateanyoneOccurrence.
Hired in equipment used in Ship Repairing activitiesWhereYouhireinequipmentandmachineryonashorttermbasis(notexceeding60days)forthepurposesofYourShipRepairBusiness,WewillcoverYouwhereYouareliableforlossorDamagetosuchequipmentormachinery,providedsuchequipmentormachineryisnototherwiseinsuredunderapropertyinsurancepolicyarrangedbyYou,followinganOccurrenceduringthePeriodofInsurance,uptoamaximumof$100,000perOccurrence.
Inspections and valuations – errors and omissionsThisPolicyisextendedtocoverYourlegalliabilityforerrorsandomissionsassociatedwithYourprovisionofincidentalWatercraftvaluationorinspectionservices,subjecttoalimitof$200,000eachandeverylossorseriesoflossesandintheaggregatecausedbyanOccurrenceduringthePeriodofInsurance,unlessotherwiseagreedandnotedontheSchedule.
Thiscoverbenefitexcludes:
• reportsprovidedtoclientspriortothisPolicycommencing;
• deliberatemisrepresentations,errorsoromissionsmadebyYou;
• reportspreparedbyunqualifiedorinexperiencedstaffmemberswhichhavenotbeenthoroughlycheckedandapprovedbyaqualifiedseniorinspector/valuer;
• reportswhichdonotcontainanapproveddisclaimerofliabilitynotedandagreedbyUs.
ForthepurposesofthisAdditionalBenefittheterm“incidental”shallmeanmakingupnomorethan10%ofthetotalGrossEarningsofYourShipRepairBusiness.
ADeductibleof$5,000willapplytoclaimsunderthisAdditionalBenefitunlessadifferentDeductibleisspecifiedintheSchedule.
Rectification of faulty workmanship consequent upon DamageWhereYouarerequiredtoperformorre-perform,inwholeorpart,workonanypropertywhich:
1. YouhadcontractedtoperformworkorserviceonpriortotheOccurrencecausingDamage;and
2. theperformanceorre-performanceoftheworkorserviceismadenecessarybythatsameOccurrencecausingtheDamage;
inadditiontoanyindemnityprovidedelsewhereinthisPolicyinrespectofresultantDamage,YourPolicyisextendedtoinclude:
3. thewholesalecostofparts;and
4. thenetlabourcost;
requiredtoperformorre-performthework.
ThemostWewillpayunderthisAdditionalBenefitis$25,000forallOccurrencesintheaggregateforanyonePeriodofInsurance,unlessotherwisespecifiedintheSchedule.
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WewillindemnifyYouagainstlegalliabilityforPersonalInjuryorPropertyDamageincurredtothirdpartiesuptoalimitof$1,000,000eachandeverylossorseriesoflossescausedbyPollutionasaresultofanOccurrencewhichisidentifiedasoccurringataninstantaneousmomentintimeduringthePeriodofInsurance,isaccidentalandneitherexpectednorintendedbyYou,andbecameknowntoYouwithin72hoursafteritcommencingandisreportedtoUswithin72hoursthereafter.
Irrespectiveoftheabove,Wewillnotprovidecoverfororinrelationto:
a) contractualorassumedliability;
b) anylossofuseorconsequentialloss;
c) fines,penalties,punitivedamages,exemplarydamage,trebledamagesoranyotherdamagesresultingfromthemultiplicationofcompensatorydamages;
d) anysiteorlocationusedinwholeorinpartforthehandling,processing,treatment,storage,disposalordumpingofanywastematerialsorsubstances;
e) thecostofevaluatingand/ormonitoringand/orcontrollingseepageand/orPollutionand/orcontaminatingsubstances;
f) thecostoftesting,monitoring,containment,treatment,detoxifying,removing,neutralisingand/ornullifyingand/orcleaningupseepageand/orPollutionand/orcontaminatingsubstancesonpropertyatanytimeownedand/orleasedand/orrentedbyYouand/orunderYourcontrolwhetherornotanyoftheforegoingareorshouldbeperformedbyYouorbyothers;
g) theactual,allegedorthreateneddischarge,dispersal,releaseorescapeofPollutantscausedbyanyofYourProductsthathavebeendiscarded,dumped,abandonedorthrownawaybyYouorothers;
h) radioactivematerialorasbestos.
5. SubcontractorsThisPolicyisextendedtocovernamedSubcontractorsandtowaiveanyrightsofsubrogationagainstthemintheeventthattheyarethepartyfoundtoberesponsiblefortheOccurrencegivingrisetotheclaim.
6. Towing LiabilityThisPolicyisextendedtoprovidecoverforYourlegalliabilityundercontractsofcustomarytowageforthepurposeofenteringorleavingportormanoeuvringwithintheport.
7. Travelling workmenThisPolicyisextendedtocoverallamountswhichYoubecomelegallyliabletopayasCompensation(excludingpunitive,exemplary,aggravateddamagesandany
Optional coversSubjectotherwisetoallterms,clauses,exclusionsandconditionsofthisinsurance,inconsiderationofanadditionalpremium,thefollowingOptionalcoversareoperativeonlywhenselectedandspecifiedinYourSchedule.
1. DetentionThisPolicyisextendedtocoverallamountswhichYoubecomelegallyliabletopayasCompensation(excludingpunitive,exemplary,aggravateddamagesandanyadditionaldamagesresultingfromthemultiplicationofcompensatorydamages)fordetentionofanyWatercraftasaconsequenceofDamagetosuchWatercraftresultinginaclaimwhichisrecoverableunderCoverClauseA(i)or(ii)asoutlinedinthisPolicy.However,thisextensionshallnotcoveranylegalliabilityfordetentionassumedundercontractorotherwisethatextendstheliabilityimposeduponYoubylawintheabsenceofsuchcontract.
2. Hot Work extensionThisPolicyisextendedtocoverYourlegalliabilityforHotWorkconductedonanyWatercraftpreviouslyutilisedtocarryexplosives,oilorotherflammableliquidsorgasesorarisinginconnectionwithHotWorkonornearanyfueltank,fuelorpipeline,bunkerspace,machinerycompartmentorengineroomprovided:
• thatanyrules,regulationsandrequirementsoftheportorgovernmentalauthoritiesattheplacewheretheworkisbeingcarriedouthavebeencompliedwith;and
• YouobtainagasfeecertificatepriortothecommencementofanyHotWorkfromapartyapprovedbyUsorthenearestLloyd’sAgentevenifagasfreecertificateisnotrequiredbytheportorgovernmentauthoritiesattheplacewheretheworkisbeingcarriedout.
3. Other workThePolicyisextendedtocoverotherrepairoperationswhichdonotcomewithinthescopeofYourShipRepairBusinessincludingDamagetopropertyinYourcare,custodyorcontrolforthepurposeofbeingworkeduponincludingwhilstintransittoorfromYourBusinessPremisesortoorfromspecialistrepairers’ormanufacturers’premiseswheretheworkdonebythesepartiesisorganisedbyYou.TheGrossEarningsinrespectofsuchoperationsshallbedeclaredtoUsandadjustedattheagreedrate.
4. Pollution liabilityGeneralexclusionCTypesofclaims5.PollutiondoesnotapplywherethisOptionalCoveristaken
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additionaldamagesresultingfromthemultiplicationofcompensatorydamages)whenYouorYourEmployeesareonboardaWatercraftatseaorinanyportorplaceotherthanYourBusinessPremiseswithintheCommonwealthofAustraliaorsuchothergeographicallimitsasaredetailedinYourScheduleforthepurposeofcarryingoutYourShipRepairBusinessnotwithstandingthatYouorYourEmployeesmaybesignedonasmembersofthevessel’screw.
General exclusionsA. Property exclusionsYourPolicydoesnotcoveranyliability,costsorexpensesdirectlyorindirectlyarisingoutoforinanywayconnectedwith:
1. Aircraft, Hovercraft
• theownership,possession,maintenance,repair,operationorusebyYouoronYourbehalf;or
• anyofYourProductswhichareincorporatedintothestructure,machineryorcontrols;
ofanyAircraftorHovercraft;
2. Watercraft owned or operated by You
collisionornavigationalliabilityassociatedwithanyWatercraftownedoroperatedbyYou.Tower’sliabilityisalsoexcludedunlessYouhaverequestedandWehaveagreedtoprovidetheOptionalCover6.TowingLiability(onpage13);
3. Underground or underwater services
undergroundorunderwaterservices,cablesorpipesofanykind;
4. Property in physical or legal control
PropertyDamageto:
• propertyownedby,usedby,leasedorrentedtoYou,exceptasprovidedundertheAdditionalBenefit–HiredinequipmentusedinShipRepairingactivitieslistedabove;or
• propertyinYourphysicalorlegalcontrolotherthanpropertyreferredtoundertheCoverClauseA(i)to(iv)above.
5. Vehicles
theexistence,maintenance,oruseof:
• anylicensedtruck,automobile,orothermechanicallypropelledVehicle;
• anyunlicensedtruck,automobile,orothermechanicallypropelledVehicleonanypublicroadoroutsideYourBusinessPremisesorSituation.
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6. Sports Participation
anyPersonalInjurytoanypersonorDamagetothepropertyofanypersondirectlyorindirectlyarisingoutoforinanywayconnectedwith,theactualparticipationofsuchpersoninanysport,exerciseoractivityincluding,butnotlimitedto,racing,competitivewatersportsandwaterskiing.Participationincludestrainingorpracticefor,supervisionorcontrolofsuchactivities.
7. Salvage operations
Yourinvolvementinsalvageoperations.
8. Smoking
anyPersonalInjurydirectlyorindirectlyarisingoutof,orinanywayconnectedwith,thesmoking,inhalationoringestionoforexposureto:
• tobaccoorothersubstancesortheirsmoke;or
• anyingredientoradditivepresentinanyarticles,itemsorgoodswhichcontainorincludetobaccoorothersubstances.
9. Watercraft in storage
inrespectoforarisinginconnectionwithanyWatercraftacceptedbyYousolelytobestored.
10. Territorial limits
anyOccurrenceoccurringorarisingoutsidetheTerritoriallimitsstatedintheScheduleunlessspecificallyagreedtobyUsinwritingfollowingYournotification.
C. Types of claimYourPolicydoesnotcover:
1. Consequential loss, loss of use and penalties
PaymentsunderpenaltyclausesinanycontractforservicesinrespectofpropertyreferredtoinCoverClauseA(i)orA(iii)ordirectlyorindirectlyarisingoutoforinanywayconnectedwithconsequentiallossorlossofuseofanykind,includingthatresultingfrom
• lossoftheuseoftangibleproperty(nothavingbeenphysicallyDamagedordestroyed);
• delayorlackofperformancebyYouoronYourbehalfinrelationtoanycontractoragreement;
• thefailureofYourProductstomeetthelevelofperformance,quality,fitnessordurabilityexpresslyorimpliedlywarrantedorrepresentedbyYou;
• lossofcontract;
• depreciationinvalueofanyundamagedproperty.
Thisexclusionwillnotapplytoclaimsfordetention,demurrage,lossoffreight,lossofcharterorlossoftimewheretheOptionalcover1.Detentiononpage13isrequestedbyYouandagreedtobyUsinwritinginwhichcasethecoverspecifiedbythatwillclausewillapply.
B. Activity ExclusionsYourPolicydoesnotcoveranyliability,costsorexpensesdirectlyorindirectlyarisingoutoforinanywayconnectedwit.
1. Building and rebuilding, reconstruction or conversion
buildingorrebuilding,reconstructionorconversionofWatercraftexceptasprovidedundertheAdditionalBenefit-BoatBuildingandreconstruction/extensiononpage12orunlessotherwiseagreedbyUsinwriting.
Thisexclusionshallnotapplyto:
• anynewvesselorcraftbeingworkeduponbyYouwhereYouarenottheprincipalbuilder;
• anyrepairsoradjustmentsormaintenanceormodificationscarriedoutbyYouunderYourmaintenanceorwarrantyworkobligations.
2. Defamation, libel and slander
directlyorindirectlyarisingoutof,orinanywayconnectedwith,thepublicationorutteranceofanylibellous,slanderous,defamatoryordisparagingmaterial:
• madepriortothecommencementofthePeriodofInsurance;
• madeatYourdirectionorwithYourauthorityandwithknowledgeofitsfalsity;or
• relatedtoadvertising,broadcasting,telecastingorpublishingactivitiesconductedbyYouoronYourbehalf.
3. Divers
theactivityofdiving,whetherforcommercialorrecreationalpurposes.
4. Premises Liability
PremisesLiabilityexcepttotheextentofthecoverasprovidedundertheAdditionalBenefit–BerthOccupiersLiabilityonpage12.
5. Oil or petrol tank Watercraft or Watercraft carrying explosives or other flammable liquids
anoilorpetroltankWatercraftorWatercraftpreviouslyengagedincarryingexplosivesorinflammableliquidsorgassesorarisinginconnectionwithwork:
• onornearanyfueltankorpipelineofanoilburningWatercraft;
• onornearanybunkerspaceofanycoalburningWatercraft;
unlesstheOptionalCover2.HotWorkExtensiononpage13hasbeenrequestedandWehaveagreedtoprovidethisextension,inwhichcasethisexclusionwillnotapply.
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2. Contractual liability
Liabilityassumedunderanycontractoragreement.
Thisexclusiondoesnotapply:
• toliabilitythatwouldhavebeenimpliedbylawintheabsenceofsuchcontractoragreement;
• toliabilityassumedbyYouunderawarrantyoffitnessorqualityregardingYourProducts;
• toliabilityassumedunderIncidentalContracts;or
• whereYouhavedeclaredtoUswrittencontractsoragreementsandWehaveagreedtoextendcovertoincludeliabilityunderthesameandthisisspecifiedintheSchedule.
3. Employer’s liability
LiabilityforPersonalInjuryto:
• anyEmployeeifYouarerequiredbylawtoinsureorotherwisefund,whetherthroughself-insurance,statutoryfundorotherstatutoryscheme,allorpartofanycommonlawliability(whetherlimitedornot)forsuchPersonalInjury;
• anyworkerorotherpersonemployedinanycapacitywhatsoeverbyYouragents,contractorsorSubcontractors;or
• YourEmployees,agents,contractorsandSubcontractors,daylabour,suppliedlabouroranyoftheirworkerswhensuchPersonalinjuryarisesoutoforinthecourseoftheemploymentofsuchworkerorotherpersonsimposedby:
• anyWorkersCompensationLaw;
• theprovisionsofanyindustrialawardoragreementordeterminationoranycontractofemploymentorworkplaceagreementwheresuchliabilitywouldnothavebeenimposedintheabsenceofsuchindustrialaward,agreementordetermination;
• anylawrelatingtoEmploymentPractices;or
• anystatutoryorcommonlawliabilityinrespectofPersonalInjuryofanyworkerorotherpersonemployedinanycapacitywhatsoeverbyYou,Youragents,contractorsorSubcontractors.
4. Penalties, liquidated damages, punitive, exemplary and/or aggravated damages
finesorpenaltiesimposedbylaworliquidateddamagesorpunitive,exemplaryand/oraggravateddamagesandanyadditionaldamagesresultingfromthemultiplicationofcompensatorydamages.
5. Pollution
ExceptasprovidedintheOptionalcovers4.Pollutionliabilitycoveronpage13wheretaken,liabilitydirectlyorindirectlyarisingoutoforinanywayconnectedwith:
• theactual,allegedorthreateneddischarge,dispersal,releaseorescapeofPollutants;
• thetesting,monitoring,clean-up,removal,containment,treatment,detoxifyingorneutralisingofPollutants,whetherornotanyoftheforegoingareorshouldbeperformedbyYouorbyothers;
• theactual,allegedorthreateneddischarge,dispersal,releaseorescapeofPollutantscausedbyanyofYourProductsthathavebeendiscarded,dumped,abandonedorthrownawaybyothers;
6. Product defect
DamagetoYourProductsifsuchDamagedirectlyorindirectlyarisesoutoforisinanywayconnectedwith:
• anydefectinthemortheirharmfulnature;
• theirunsuitabilityforthepurposeforwhichtheywereintended;or
• theirinherentviceorinefficiencyorineffectiveness.
7. Product recall
directlyorindirectlyarisingoutof,orinanywayconnectedwith,theremoval,withdrawal,recall,inspection,repair,reconditioning,replacementorlossofuseofYourProductsoranypropertyofwhichYourProductsformapartiftheyarewithdrawnfromthemarketorfromusebecauseofanyknownorsuspecteddefectordeficiencyinthem.
8. Professional liability
directlyorindirectlyarisingoutoforinanywayconnectedwiththeprovisionbyYouoranyoneonYourbehalftoprovideprofessionaladviceoranyerrororomissionconnectedtherewith,exceptasprovidedundertheAdditionalbenefitforInspectionsandvaluations–errorsandomissionsonpage12.Thisexclusionwillnotapplywhereprofessionaladviceorserviceisgivenwithoutfeeorcharge.
D. Perils exclusionsYourPolicydoesnotcoveranyactualorallegedliability,costsorexpensesdirectlyorindirectlyarisingoutoforinanywayconnectedwith:
1. Asbestos and silica
asbestos,silicaproducts,silicafibres,silicadust,oranymaterialscontainingasbestosorsilicainwhateverformorquantity.
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• fraudulentordishonestacts,fraudulentmisappropriation,embezzlementandforgerybyYouorYourEmployee(s)actingaloneorincollusionwithanyotherperson(s);
• circumstanceswhereYouorYourEmployeeshavewaivedorrestrictedYourrightsofrecourseagainstanyperson,unlesspreviouslyagreedinwritingbyUs;
• You,Yourmanagers,YourEmployeesoranyoneforwhomYouarelegallyresponsiblebeing,withYourorYourmanagers’knowledge,undertheinfluenceofalcoholand/ordrugs;
• Yourfailuretocomplywithallstatutoryorotherobligationsandregulationsimposedbyanyauthorityrelatingtoinspectionandtesting;
• anybreachbyYou,orwithYourconsent,ofanylaw,by-law,government,localgovernment,statutoryauthority,orotherlegallyconstitutedpublicbody’sregulationdealingwiththestorageofhazardousgoods;
• thefailuretostoreallresins,fibreglass,solvents,cellulosebasedmaterialsandthelikeoutsidebuildingsinsuitablemetalorbrickstructures,exceptfortheamountofsuchmaterialsthatisrequiredinsidebuildingsinthecourseofconductingYourShipRepairBusinessactivitiesforthatday,inwhichcasethesematerialsshallbekeptinsidebuildingsinsecuremetalcontainers.
6. Wilful acts
anyactualoralleged:
• dishonest,fraudulent,criminal,unlawful,ormaliciousact;
• wilfulbreachofanystatute,contractorduty;
• conductintendedtocauseloss,Damageorliabilitywithrecklessdisregardfortheconsequences;
byYouoranypersonactingwithYourknowledge,consentorconnivance.
7. Magnetism/ Damage to data media
thepresenceofmagneticflux,oranylossofmagnetism(exceptcausedbylightning)orlossoforDamagetodatacarryingmedia.
8. Radioactive contamination, chemical, biological, bio-chemical and electromagnetic weapons
• ionisingradiationsfromorcontaminationbyradioactivityfromanynuclearfuelorfromanynuclearwasteorfromthecombustionofnuclearfuel;
• theradioactive,toxic,explosiveorotherhazardousorcontaminatingpropertiesofanynuclearinstallation,reactororothernuclearassemblyornuclearcomponentthereof;
2. Assault and battery
assaultand/orbatterycommittedbyYouoratYourdirection,butthisexclusionwillnotapplywhensuchassaultand/orbatteryiscommittedforthepurposeofpreventingPersonalInjuryorDamageoreliminatingdangertoaperson.
3. Your design errors, known faults or rectification of faults
• Yourdesigns,specificationsorformulasoranyerrororomissioninrespectofsuchdesign,specificationorformula,otherthanwheresuchworkwasnotprovidedforremuneration(suchasafeeorcommission)whethermixedwithremunerationforotherservicesornot;
• DamagecausedbyfaultsordefectsknowntoYouoranyEmployeewhoseknowledgeinlawwouldbedeemedtobeYoursandwhichwasnotdisclosedtoUsatthetimeYourPolicywasenteredinto;
• therectificationoffaultyworkmanship,otherthantotheextentofthecoverprovidedundertheAdditionalBenefits–RectificationoffaultyworkmanshipconsequentuponDamageonpage12;
• misrepresentationormisdescriptionofpropertyforsale;
• themisalignmentormisplacementofanypilesorcastingsorthecostofabandonmentofthemforanyreason.
4. Normal Losses
• wearandtear,lackofreasonablemaintenance,gradualdeteriorationorerosion,corrosion,rust,changeintemperature,mechanicalorelectricalbreakdownorderangementofmachineryorequipment,dampness,dryness,wetordryrot,shrinkage,evaporation,lossofweight,contamination,changeincolour,flavour,textureorfinish,verminorinsect;
• Mould,Fungus/Fungi,spore(s),mildew(s),mushroom(s),yeast(s)orbiologicalcontaminant(s),toxins,substances,vapours,gas,orotheremissionororganicorinorganicbodyorsubstancecreatedorproducedbyoremanatingfromthem,orthecostclean-up,remediation,containment,removalorabatementoftheabove.
5. Deliberate Damage, lack of due care and Employee dishonesty
• intentionalorrecklessconductbyYouorconductoccurringwithYourorYourEmployees’consentorarisingfromYourorYourEmployees’failuretotakereasonableprecautionstopreventaccidentswhichmaygiverisetoaclaimunderthisPolicy;
• Yourbeinginvolvedinanyillegaltradeorventure;
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E. Failure to notifyYourPolicydoesnotcoverYouforanyactualorallegedliability,costsorexpensesdirectlyorindirectlyarisingoutoforinanywayconnectedwith:
a) anypermanentortemporaryalteration(whichincludesoccupation,useandphysicalchanges)topropertysituatedatorbroughtontoYourBusinessPremiseswhichincreasestheriskofloss,DamageorliabilitywhereYouorYourEmployeeshavefailedtonotifyUsofanysuchalterationassoonasreasonablypracticable;
b) anOccurrenceinvolvinglossorDamagetothirdpartyWatercraftcoveredbythisPolicyunlessdiscoveredandreportedtoUsinwritingwithin1yearofdeliverytotheownersorwithin1yearaftertheworkiscompletedbyYou,whichevermayfirstoccur.
• anyweaponordeviceemployingatomicornuclearfissionand/orfusionorotherlikereactionorradioactiveforceormatter;
• theradioactive,toxic,explosiveorotherhazardousorcontaminatingpropertiesofanyradioactivematter.Theexclusioninthissub-clausedoesnotextendtoradioactiveisotopes,otherthannuclearfuel,whensuchisotopesarebeingprepared,carried,stored,orusedforcommercial,agricultural,medical,scientificorothersimilarpeacefulpurposes;or
• anychemical,biological,bio-chemical,orelectromagneticweapon.
9. Terrorism
directlyorindirectlycausedby,contributedtoby,resultingfromorarisingoutoforinconnectionwithanyactofTerrorism,asdefinedherein,regardlessofanyothercauseorOccurrencecontributingconcurrentlyorinanyothersequencetotheloss.
YourPolicyalsoexcludesanddoesnotcoverdeath,injury,illness,loss,Damage,costorexpensedirectlyorindirectlycausedby,contributedtoby,resultingfrom,orarisingoutoforinconnectionwithanyactionincontrolling,preventing,suppressing,retaliatingagainst,orrespondingtoanyactofTerrorism.
10. War
• war,civilwar,revolution,rebellion,insurrection,orcivilstrifearisingtherefromoranyhostileactbyoragainstabelligerentpower;
• capture,seizure,arrest,restraint,ordetainment(barratryandpiracyexcepted)andtheconsequencesthereoforanyattemptthereat;
• derelictmines,torpedoes,bombsorotherderelictweaponsofwar;
• destructionoforDamagetopropertybyorundertheorderofanygovernmentorpublicorlocalauthority.
11. Strike, lockout, labour disturbance
anystrike,lockout,labourdisturbance,riot,civilcommotionoractofanypersontakingpartinthese,orfromanyactofanypersonactingmaliciously.
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GST noticeYourPolicyhasaGSTprovisioninrelationtoYourpremiumandOurpaymenttoYouforclaims.ItmayhaveanimpactonhowYoudeterminetheamountofinsuranceYouneed.PleasereadthePolicycarefully.SeekprofessionaladviceifYouhaveanyqueriesaboutGSTandYourinsurance.
Limit of Indemnity
AllmonetarylimitsinYourPolicymaybeincreasedforGSTinsomecircumstances(seebelow).
Claim settlements – Where We agree to pay
WhenWecalculatetheamountWewillpaytoYou,Wewillhaveregardtotheitemsbelow:
(i) WhereYouareliabletopayanamountforGSTinrespectofanacquisitionrelevanttoYourclaim(suchasservicestorepairaDamagediteminsuredunderYourPolicy),WewillpaytheGSTamount.
WewillpaytheGSTamountinadditiontotheLimitofIndemnityorotherlimitsshowninYourPolicyorintheSchedule.
IfYourLimitofIndemnityisnotsufficienttocoverYourloss,WewillonlypaytheGSTamountthatrelatestoOursettlementofYourclaim.
WewillreducetheGSTamountWepaybytheamountofanyinputtaxcreditstowhichYouareorwouldbeentitled.
(ii) WhereWemakeapaymentunderYourPolicyasCompensationinsteadofpaymentforarelevantacquisition,WewillreducetheamountofthepaymentbytheamountofanyinputtaxcreditthatYouwouldhavebeenentitledtohadthepaymentbeenappliedtoarelevantacquisition.
Disclosure – Input tax credit entitlement
IfYouregister,orareregistered,forGST,YouarerequiredtotellUsYourentitlementtoaninputtaxcreditonYourpremium.IfYoufailtodiscloseorunderstateYourentitlement,YoumaybeliableforGSTonaclaimWemaypay.YourPolicydoesnotcoverYouforthisGSTliability,orforanyfine,penaltyorchargeforwhichYoumaybeliable.
Other Insurance/Non-contribution ClauseWhereYouareawareofinsuranceorinsurancesalreadyeffected,orwhichmaybesubsequentlyeffectedcovering,whetherinwholeorinpart,YourliabilityorexposureswhicharethesubjectmatterofthisPolicy,YouarerequiredtonotifyUsandmustprovideUswithfullinformationandallreasonableassistanceintherecoveryofOurrateableproportionofanyclaimpaymentsWemake.
General conditionsTheseGeneralconditionsareapplicabletoYourPolicy.
IfYoudonotcomplywiththeGeneralconditions(otherthanthecancellationcondition),WemaycancelYourPolicyand/orreduceorrefusetopayaclaim,totheextentpermittedbylaw.
Actions of parties other than YouTheactsoromissionsof:
a) atenantofYours;or
b) theowneroforanothertenantinthebuildingYouoccupy;
whichresultsinabreachofanyprovisionofYourPolicywillnotaffectYourentitlementtocoverprovidedthat:
c) theactoromissionwascommittedwithoutYourpriorknowledge;and
d) YounotifyUsofthehappeningorexistenceoftheactoromissionassoonasYoubecomeawareofit;and
e) YoupayanyreasonableextrapremiumthatWerequire.
AssignmentNotransferofinterestunderthisPolicyorinanymoneyswhichmaybeormaybecomepayableunderthisPolicyistobebindingonorrecognisedbyUsunlessadatednoticeofsuchtransferofinterestissignedbyYou,andbythepartytowhomtheinterestisbeingtransferredtoisprovidedtoUsbeforethepaymentofanyclaimorreturnofpremiumbeingmadeunderthisPolicy.NothinginthisconditionistobeconsideredasanagreementbyUstoasaleortransfertoanewentity.
Cross liabilityWheretheprotectionprovidedbyYourPolicycoverstheinterestofmorethanoneparty,anyactoromissionofanindividualpartywillnotprejudicetherightsoftheremainingparties,subjectto:
a) GeneralexclusionDPerilsexclusion6.Wilfulacts;and
b) theremainingparties,immediatelyonbecomingawareofanyactoromissionthatincreasestheriskofloss,Damageorliability,givingnoticeinwritingtoUsand,ondemand,payingsuchreasonableadditionalpremiumasWemayrequire;and
c) theLimitsandSublimitswithinthePolicyapplyingasthoughthisGeneralconditiondidnotapply.
Governing law and jurisdictionYourPolicyisgovernedbythelawsofAustralia.AnydisputerelatingtoYourPolicyshallbesubmittedtotheexclusivejurisdictionofanAustralianCourtwithintheStateorTerritoryinwhichYourPolicywasissued.
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d) ToensurethatallweldingandflamecuttingcomplieswiththemostcurrentAustralianStandards,regulationsandlegislationregardingcuttingandweldingsafetyanditsamendments(theAustralianStandardsareadetailedCode,designedtoprotectpersonsandpropertyfrominjurybyfireorexplosioninthecourseofcutting,heatingorweldingoperations)and,whererequired,obtainagasfreecertificateand/oranyotherauthorisationwhichislegallyrequired;
e) tocomplywiththemanufacturer’srecommendationsfortheuseandmaintenanceofallequipmentused;
f) toonlyemploycompetentEmployees,agentsandcontractorsandensuretheymeettherequirementsspecifiedinClausesa)toe)above;
g) takereasonableprecautionstopreventthemanufacture,saleorsupplyofdefectiveProducts;
h) atYourexpense,takereasonableactiontotrace,recallormodifyanyProductscontaininganydefectordeficiency,whichdefectordeficiencyYouhaveknowledgeoforhavereasontosuspect.
InspectionsWe(oragentsappointedbyUs)havetherighttoinspectandexamine,bymutualappointment,anyproperty,BusinessPremisesorWatercraftwhichisthesubjectofthisinsurance.
Premium adjustmentThepremiumforthisPolicyhasbeencalculatedontheestimateofGrossEarnings(withoutdeductionforanysubcontractedwork)givenbyYou.YoumustkeepaccuraterecordscontainingallrelevantparticularsofYourGrossEarningsandatanyreasonabletimeallowUs(orOurauditors)toinspectsuchrecords.
FollowingtheexpiryofthePeriodofInsuranceYoumustsupplyUswithsuchrecordsasWemayreasonablyrequiretodeterminewhattheactualGrossEarningsfigureswereforthePeriodofInsurance.
ThedifferencebetweenthepremiumbasedontheactualfiguresattheendofthePeriodofInsuranceandthepremiumcalculatedatinceptionwillbepaidbyorallowedtoYou,asthecasemaybe,butinanyeventaminimumretainedpremiumequivalentto75%,orasmayotherwisebeagreed,ofthefullpremiumbasedontheinitialestimateswillberetainedbyUs.
WeagreetowaiveanyadjustmentofpremiumwherethedifferencebetweentheactualGrossEarningsandtheestimateGrossEarningsgiventoUsbyYouislessthan10%,orwhereadepositpremiumof$5,000orlesswaschargedandthefinaladjustedpremiumbasedonactualfiguressuppliedbyYoudoesnotexceed$5,000.
Prohibited cover or paymentsIrrespectiveofanyotherprovisionofthePolicy,Weshallnotbedeemedtoprovidecoverorbeliabletopayanyclaimorprovideanybenefit(includingarefundapremium)hereundertotheextentthattheprovisionofsuchcover,paymentofsuchclaimorprovisionofsuchbenefitwouldcontraveneorotherwiseexposeUstoanypenalty,sanction,prohibitionorrestrictionunderUnitedNationsresolutionsorthetradeoreconomicsanctions,lawsorregulationsofAustralia,NewZealand,theEuropeanUnion,UnitedKingdomorUnitedStatesofAmerica.
Reasonable care and maintenanceYoumusttakeallreasonablecare:
a) topreventand/orminimiseloss,Damageorliability;
b) tomaintainYourShipRepairBusinessandshipyard/premisesinsoundcondition,inparticulartominimiseoravoidloss,Damageorliability;
c) tocomplywithallstatutoryobligations,by-laws,regulations,publicauthorityrequirementsandsafetyrequirements,includingthoserelatingtofireappliancesandtheuseandstorageofhazardousgoods;
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C. AfterYouhaveadvisedUsofanyloss,DamageorliabilityassetoutinthisGeneralCondition:
(i) YoumustcomplywithallthetermsoftheGeneralConditionsbeforeWewillmeetanyclaimunderYourPolicy;
(ii) WehavetherighttorecoverfromanypersonagainstwhomYoumaybeabletoclaimanymoneypaidbyUsandWewillhavefulldiscretionintheconduct,settlementordefenceofanyclaiminYourname.TheamountrecoveredwillbeappliedfirsttoreducingtheamountbywhichYourlossexceedstheDeductibleapplied.AnybalanceremainingafterYouhavebeenfullycompensatedforYourloss,uptotheamountWehavepaidtoYoutosettleYourclaim(includingOurlegalfeesandothercostsforrecovery),willberetainedbyUs;
(iii) Wemaytakeoverandconduct,inYourname,thedefenceorsettlementofanyclaimandWewillhavefulldiscretionintheconductofanyproceedingsinconnectionwiththeclaim;
(iv) WemaypayYoutheLimitofIndemnityunderthePolicy(afterdeductionofanysumorsumsalreadypaidbyUs)oranylesseramountforwhichaclaimorclaimsunderthePolicymayreasonablybesettled.AfterWehavepaidYou,Wewillnolongerbeliablefortheclaim(s)(orfutureconductoftheclaim(s))exceptforcostsandexpensesincurredupuntilthetimeWepayYou,thatWepreviouslyagreedtopay.
ClaimsA. AssoonasYoubecomeawareofanythinghappening
whichmayresultinaclaimunderYourPolicy,Youmust,atYourownexpense:
(i) contactUsassoonaspossibletoadvisehowtheloss,Damageorliabilityoccurred;
(ii) takeallreasonableactiontominimiseanypossibleclaim;
(iii) asfaraspossible,preserveanyProducts,appliances,plantorotheritemswhichmightprovenecessaryorusefulasevidenceuntilWehavehadanopportunitytoinspectthem;
(iv) giveUsalltheinformation,proofandassistanceWemayrequiretoprosecute,defendorsettleYourclaim,includingdetailsofanyotherinsuranceeffectedbyYouoronYourbehalf;
(v) immediatelysendUsanyclaim,writ,summons,orfulldetailsofanyrelevantlegalorotherproceedingssuchasanimpendingprosecutionorinquestthatYoureceiveorofwhichYoubecomeaware;
(vi) atalltimes,giveUsalltheinformationandassistanceWemayreasonablyrequire.
B. Youmustnot:
(i) admitliabilityfor,takeanyactionwhichmaybeconsideredtobeanadmissionofliabilityfor,orofferoragreetosettle,anyclaimwithoutOurwrittenconsent;
(ii) authorisetherepairorreplacementofanythingwithoutOuragreementunlessforsafetyreasonsortominimiseorpreventfurtherimminentloss,Damage,liabilityorinjury;
(iii) release,agreenottosueon,waiveorprejudice,anyrightofrecoveryagainstanythirdpartywhowouldbeliabletocompensateYouwithrespecttothatloss,Damageorliabilityotherwise,
orWemayrefusetopayYourclaim,totheextentpermittedbylaw.
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For all enquiries please call your insurance intermediary
allianzmarineandtransit.com.au
Allianz Marine & Transit Underwriting Agency Pty LimitedAFS Representative No. 423910 ABN 98 155 554 279Level 1, 61 Lavender Street, Milsons Point NSW 2061as agents of the insurer Allianz Australia Insurance Limited AFS Licence No. 234708 ABN 15 000 122 850 PO
L400
BA/A
M&
T 0
3/15
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