Whereas the Insured named in the Schedule hereto has made to the
(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 Sched ule;
Now it is hereby agreed that the Insurers will, during the period cov ered by this Policy or any renewal thereof and subject to the exclu sions, provisions, definitions and conditions contained herein or en dorsed hereon, indemnify the Insured against
1. Damage (other than by fire) to any boiler or pressure vessel de scribed in the Schedule hereto and to other property of the Insured,
2. Liability of the Insured at law for damage to property not belong ing 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 de fined 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 in 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 dam ages as aforesaid the Insurers will in addition pay all costs and ex penses recovered by any claimant against the Insured or incurred with the written consent of the Insurers in 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 de formation 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;
2. The failure of individual tubes in boilers of the water tube, loco motive 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 in directly, proximately or remotely occasioned or contributed to by any of the following, namely:
a) typhoon, hurricane, volcanic eruption, earthquake or other con vulsion 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 de clared 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 con nection with any political organization, 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 contam ination,
c) any tests other than tests at a pressure not exceeding the maxi mum pressure permitted by the inspecting authority.
Definitions
The following terms, when used in this Policy, shall have the under mentioned meanings:
1. "Boiler" shall mean any fired closed container or a combined con tainer piping system in which steam is generated under pressure. When used in the Schedule, the term "boiler" shall include fittings, built-in superheaters and economizers but shall not include steam or feed water piping or separate economizers, 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 dis placement 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 combus tion or explosion of ignited furnace or flue gases.
4. "Collapse" shall mean the sudden and 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.
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, and 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 authorized 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 that for which the boiler was designed or which was used at the time the insur ance 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 minimize the extent of the loss or damage;
c) preserve the parts affected and make them available for inspec tion by a representative or surveyor of the Insurers;
d) furnish all such information and docume tary evidence as the Insurers may require.
The Insurers may at their own option repair or replace what is dam aged 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 Insurers' 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 minor damage or replace items which have sustained any minor damage, but in all other cases a representa tive of the Insurers shall have the opportunity of inspecting the dam age before any alternations are effected. If an inspection by a repre sentative of the Insurers does not take place within a period of 14 days from the date of the notification of the claim, the Insured shall be entitled to proceed with the repairs or replacement. Nothing con tained herein shall prevent the Insured from taking such steps as are absolutely necessary to maintain the operation of the plant.
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 re paired 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 neces sary or required by the Insurers in the interest of any rights or reme dies, or of obtaining relief or indemnity from parties (other than those insured under this 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 Po licy, whether such acts and things are or become necessary or re quired 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 con
duct in the name of the Insured the defence or settlement of any claim for indemnity or damage or otherwise and who have full dis cretion in the conduct of any proceedings or in the settlement of any claim, and 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 termi nated 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 unex pired 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 par ties 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 an umpire to be appointed in writing by the arbitra tors 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 obtain any benefit under this Policy, or if a claim is made and 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, dam age 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.