Common use of BASIS OF INDEMNITY Clause in Contracts

BASIS OF INDEMNITY. a) In cases where damage to an insured item can be repaired, the Company will 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, if any, 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 Company will 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 except for i. wear and tear parts and ii. parts for which manufacturers have specified a fixed life for use and the like but the value of any salvage will be taken into account. Parts which are not supposed to last the full life of the machine will have to be treated as wear and tear parts. If the cost of repairs as detailed hereinabove equals or exceeds the actual value of the machinery insured 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 Company will pay the actual value of the item immediately before the occurrence of the loss including costs for ordinary freight erection and customs duties, if any, 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 Company will also pay any normal charges for the dismantling of the machinery destroyed but the salvage will be taken into account. c) Any extra charges incurred for overtime, night-work, work on public holidays, express freight are covered by this insurance only if especially agreed to in writing. d) In the event of the makers’ drawings, patterns and core boxes necessary for the execution of a repair not being available the Company shall not be liable for cost of making any such drawing patterns or core boxes. e) The cost of any alterations, improvements or overhauls shall not be recoverable under this Section. f) The cost of any provisional repairs will be borne by the Company if such repairs constitute part of the final repairs and do not increase the total repair expenses. g) If the Sum Insured is less than the amount required to be insured as per Provision 1 hereinabove, the Company will 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. h) The Company will make payments only after being satisfied, with the necessary bills and documents that the repairs have been effected or replacements have taken place, as the case may be. The Company may, however, not insist for bills and documents in case of total loss where the Insured is unable to replace the damaged equipments for reasons beyond their control. In such cases claims can be settled on ‘Indemnity Basis’. SPECIAL CONDITIONS: 1. The Insured shall take all reasonable steps to maintain the insured property in efficient working order and ensure that no item is habitually or intentionally over loaded. The Insured shall fully observe the manufacturer’s instructions for operating, inspection and overhaul, as well as government, statutory, municipal and all other binding regulations in force concerning the operation and maintenance of the insured plant and machinery. 2. The Company’s Officials shall at all reasonable times have the right to inspect and examine any property insured hereunder and the Insured shall provide the Officials of the Company with all details and information necessary for the assessment of the risk. The Company shall provide the Insured with a copy of the inspecting Official’s report; which shall however be treated as strictly confidential both by the Insured and the Company.

BASIS OF INDEMNITY. a) In cases where damage to an insured item can be repaired, the Company will 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, if any, 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 Company will 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 except for i. wear and tear parts and ii. parts for which manufacturers have specified a fixed life for use and the like but the value of any salvage will be taken into account. Parts which are not supposed to last the full life of the machine will have to be treated as wear and tear parts. If the cost of repairs as detailed hereinabove equals or exceeds the actual value of the machinery insured 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 Company will pay the actual value of the item immediately before the occurrence of the loss including costs for ordinary freight erection and customs duties, if any, 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 Company will also pay any normal charges for the dismantling of the machinery destroyed but the salvage will be taken into account. c) Any extra charges incurred for overtime, night-work, work on public holidays, express freight are covered by this insurance only if especially agreed to in writing. d) In the event of the makers’ drawings, patterns and core boxes necessary for the execution of a repair not being available the Company shall not be liable for cost of making any such drawing patterns or core boxes. e) The cost of any alterations, improvements or overhauls shall not be recoverable under this Section. f) The cost of any provisional repairs will be borne by the Company if such repairs constitute part of the final repairs and do not increase the total repair expenses. g) If the Sum Insured is less than the amount required to be insured as per Provision 1 hereinabove, the Company will 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. h) The Company will make payments only after being satisfied, with the necessary bills and documents that the repairs have been effected or replacements have taken place, as the case may be. The Company may, however, not insist for bills and documents in case of total loss where the Insured is unable to replace the damaged equipments for reasons beyond their control. In such cases claims can be settled on ‘Indemnity Basis’. SPECIAL CONDITIONS: 1. The Insured shall take all reasonable steps to maintain the insured property in efficient working order and ensure that no item is habitually or intentionally over loaded. The Insured shall fully observe the manufacturer’s instructions for operating, inspection and overhaul, as well as government, statutory, municipal and all other binding regulations in force concerning the operation and maintenance of the insured plant and machinery. 2. The Company’s Officials shall at all reasonable times have the right to inspect and examine any property insured hereunder and the Insured shall provide the Officials of the Company with all details and information necessary for the assessment of the risk. The Company shall provide the Insured with a copy of the inspecting Official’s report; which shall however be treated as strictly confidential both by the Insured and the Company.

BASIS OF INDEMNITY. a) In cases where damage to an insured item can be repaired, repaired – the Company will 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 dutiesduties and dues, if any, to the extent such expenses have been included in the Sum Insuredsum insured. If the repairs are executed at a workshop owned by the Insured Insured, the Company will Insurers shall pay the cost of materials and wages incurred for the purpose of the repairs plus a reasonable percentage to cover overhead charges. charges No deduction shall be made for depreciation in respect of parts replaced except for i. wear and tear parts and ii. parts for which manufacturers have specified a fixed life for use and the like replaced, but the value of any salvage will shall be taken into account. Parts which are not supposed to last the full life of the machine will have to be treated as wear and tear parts. account If the cost of repairs as detailed hereinabove equals or exceeds the actual value of the machinery insured immediately before the occurrence of the damage damage, the item shall be regarded as destroyed and settlement shall be made on the basis provided for in (b) ‘b.’ below. b) In in cases where an and insured item is destroyed, destroyed – the Company will Insurers shall pay the actual value of the item immediately before the occurrence of the loss loss, including costs charges for ordinary freight freight, cost of erection and customs custom duties, if any, provided such expenses have been included in the Sum Insuredsum insured, such actual value to be calculated by deducting proper depreciation from the replacement value of the item. The Company will Insurers shall also pay any normal charges for the dismantling dismounting of the machinery destroyed destroyed, but the salvage will shall be taken into account. c) . Any extra charges incurred for overtime, night-night work, work on public holidays, and express freight are shall be covered by this insurance policy only if especially agreed to in writing. d) In the event of the makers’ drawings, patterns and core boxes necessary for the execution of a repair not being available the Company shall not be liable for cost of making any such drawing patterns or core boxes. e) writing The cost of any alterations, additions, improvements or overhauls shall not be recoverable under this Section. f) Policy. The cost of any provisional repairs will shall be borne by the Company Insurers if such repairs constitute part of the final repairs and do not increase the total repair expenses. g) If the Sum Insured is less than the amount required to be insured as per Provision 1 hereinabove, the Company will pay only in such proportion as the Sum Insured bears to the amount required to be insuredcost of repair. Every item if more than one The Insurers shall be subject to this condition separately. h) The Company will make payments only after being satisfied, with satisfied by production of the necessary bills and documents that the repairs have been effected or replacements have replacement has taken place, as the case may be. The Company may, however, not insist for bills and documents in case of total loss where the Insured is unable to replace the damaged equipments for reasons beyond their control. In such cases claims can be settled on ‘Indemnity Basis’. SPECIAL CONDITIONS: 1. The Insured shall take all reasonable steps to maintain the insured property in efficient working order and ensure that no item is habitually or intentionally over loaded. The Insured shall fully observe the manufacturer’s instructions for operating, inspection and overhaul, as well as government, statutory, municipal and all other binding regulations in force concerning the operation and maintenance of the insured plant and machinery. 2. The Company’s Officials shall at all reasonable times have the right to inspect and examine any property insured hereunder and the Insured shall provide the Officials of the Company with all details and information necessary for the assessment of the risk. The Company shall provide the Insured with a copy of the inspecting Official’s report; which shall however be treated as strictly confidential both by the Insured and the Company.

BASIS OF INDEMNITY. a) In cases where damage to an insured item can be repaired, the Company will 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, if any, 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 Company will 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 except for i. wear and tear parts and ii. parts for which manufacturers have specified a fixed life for use and the like but the value of any salvage will be taken into account. Parts which are not supposed to last the full life of the machine will have to be treated as wear and tear parts. If the cost of repairs as detailed hereinabove equals or exceeds the actual value of the machinery insured 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 Company will pay the actual value of the item immediately before the occurrence of the loss including costs for ordinary freight erection and customs duties, if any, 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 Company will also pay any normal charges for the dismantling of the machinery destroyed but the salvage will be taken into account. c) Any extra charges incurred for overtime, ,night-work, work on public holidays, express freight are covered by this insurance only if especially agreed to in writing. d) In the event of the makers’ drawings, patterns and core boxes necessary for the execution of a repair not being available the Company shall not be liable for cost of making any such drawing patterns or core boxes. e) The cost of any alterations, improvements or overhauls shall not be recoverable under this Section. f) The cost of any provisional repairs will be borne by the Company if such repairs constitute part of the final repairs and do not increase the total repair expenses. g) If the Sum Insured is less than the amount required to be insured as per Provision 1 hereinabove, the Company will 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. h) The Company will make payments only after being satisfied, with the necessary bills and documents that the repairs have been effected or replacements have taken place, as the case may be. The Company may, however, not insist for bills and documents in case of total loss where the Insured is unable to replace the damaged equipments for reasons beyond their control. In such cases claims can be settled on ‘Indemnity Basis’. SPECIAL CONDITIONS: 1. The Insured shall take all reasonable steps to maintain the insured property in efficient working order and ensure that no item is habitually or intentionally over loaded. The Insured shall fully observe the manufacturer’s instructions for operating, inspection and overhaul, as well as government, statutory, municipal and all other binding regulations in force concerning the operation and maintenance of the insured plant and machinery. 2. The Company’s Officials shall at all reasonable times have the right to inspect and examine any property insured hereunder and the Insured shall provide the Officials of the Company with all details and information necessary for the assessment of the risk. The Company shall provide the Insured with a copy of the inspecting Official’s report; which shall however be treated as strictly confidential both by the Insured and the Company.

BASIS OF INDEMNITY. (a) In cases where damage to an insured item can be repaired, repaired – the Company will 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 dutiesduties and dues, if any, to the extent such expenses have been included in the Sum Insuredsum insured. If the repairs are executed at a workshop owned by the Insured the Company will 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 except for i. wear and tear parts and ii. parts for which manufacturers have specified a fixed life for use and the like replaced, but the value of any salvage will shall be taken into account. Parts which are not supposed to last the full life of the machine will have to be treated as wear and tear parts. If the cost of repairs as detailed hereinabove equals or exceeds the actual value of the machinery insured immediately before the occurrence of the damage the item shall be regarded as destroyed and settlement shall be made on the basis provided for in (b) below. (b) In cases where an insured item items is destroyed, destroyed – the Company will Insurers shall pay the actual value of the item immediately before the occurrence of the loss including costs charges for ordinary freight freight, cost of erection and customs duties, if any, provided such expenses have been included in the Sum Insuredsum insured, such actual value to be calculated by deducting proper depreciation from the replacement value of the item. The Company will Insurers shall also pay any normal charges for the dismantling dismounting of the machinery destroyed destroyed, but the salvage will shall be taken into account. c) . Any extra charges incurred for overtime, night-night work, work on public holidays, and express freight are shall be covered by this insurance Section 4 only if especially agreed to in writing. d) In the event of the makers’ drawings, patterns and core boxes necessary for the execution of a repair not being available the Company shall not be liable for cost of making any such drawing patterns or core boxes. e) . The cost of any alterations, additions, improvements or overhauls shall not be recoverable under this Section. f) Section 4. The cost of any provisional repairs will shall be borne by the Company Insurers if such repairs constitute part of the final repairs and do not increase the total repair expenses. g) If the Sum Insured is less than the amount required to be insured as per Provision 1 hereinabove, the Company will pay only in such proportion as the Sum Insured bears to the amount required to be insuredcost of repair. Every item if more than one The Insurers shall be subject to this condition separately. h) The Company will make payments only after being satisfied, with satisfied by production of the necessary bills and documents that the repairs have been effected or replacements have replacement has taken place, as the case may be. The Company may, however, not insist for bills and documents in case of total loss where the Insured is unable to replace the damaged equipments for reasons beyond their control. In such cases claims can be settled on ‘Indemnity Basis’. SPECIAL CONDITIONS: 1. The Insured shall take all reasonable steps to maintain the insured property in efficient working order and ensure that no item is habitually or intentionally over loaded. The Insured shall fully observe the manufacturer’s instructions for operating, inspection and overhaul, as well as government, statutory, municipal and all other binding regulations in force concerning the operation and maintenance of the insured plant and machinery. 2. The Company’s Officials shall at all reasonable times have the right to inspect and examine any property insured hereunder and the Insured shall provide the Officials of the Company with all details and information necessary for the assessment of the risk. The Company shall provide the Insured with a copy of the inspecting Official’s report; which shall however be treated as strictly confidential both by the Insured and the Company.

BASIS OF INDEMNITY. i) The Insurers shall at their option indemnify the Insured a) In cases where damage to an insured item can be repairedeither by repair or replacement of the lost, damaged or stolen Item (compensation in kind); and the replaced parts (salvaged material), shall become the property of the Insurers; b) or by payment in cash of the cost required for repair or replacement (compensation in money) ii) If compensation is made in money, the Company will 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, if any, to the extent such expenses have been included Insurers shall pay: a) in the Sum Insured. If case of Partial Loss, the repairs are executed at a workshop owned by the Insured the Company will 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 except for i. wear and tear parts and ii. parts for which manufacturers have specified a fixed life for use and the like but actual repair costs less the value of any salvage will be taken into account. Parts which are the salvaged material; when no repair is made, the Insurers shall compensate for the estimated cost of repair, however, not supposed to last more than the full life Actual Cash Value of the machine will have to be treated as wear and tear parts. If the cost of repairs as detailed hereinabove equals or exceeds the actual value of the machinery insured 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 Company will pay the actual value of the item depreciated Insured Item immediately before the occurrence of the loss including costs or damage. b) in the case of an actual or constructive Total Loss, the New Replacement Cost Less the value of the salvage of the salvage material; when no replacement is made, the insurers shall compensate only for ordinary freight erection the Actual Cash Value of the depreciated Insured Item immediately before the occurrence of the loss or damage, the same shall apply in the cases specified under Special Conditions 4. iii)b). iii) A loss shall be deemed to be a Partial Loss if the cost of restoring the damaged Item to its former working condition (repair) plus the value of the salvaged material: a) is less than the New Replacement Cost or b) is less than the Actual Cash Value immediately before the occurrence of the loss or damage with regard to Items for which spare parts of series production are no longer available (Obsolete items) Otherwise the loss shall be deemed to be a Total Loss. iv) Furthermore, the Insurers shall compensate for necessary extra charges incurred for: a) express freight; b) overtime, night work, work on public holidays and customs dutiesSundays. v) Only subject to, if anyspecial agreements, provided such expenses compensation shall be paid for: a) extra charges for air freight; b) any cost for masonry, plastering, painting, earth and chisel or similar work. vi) The Insurers shall not pay compensation for: a) any cost which would have been incurred even if the loss or damage had not occurred (e.g. for maintenance) b) additional costs of any alteration or improvement of the Insured Item in connection with an insured loss event; c) any other costs which by their nature or amount are not included in the Sum Insured, such actual value to be calculated by deducting proper depreciation from ; d) the replacement value amount of the itemDeductibles stated in the Schedule in respect of each and every occurrence giving rise to loss or damage. vii) If the damaged, Item is provisionally repaired, the liability of the Insurers shall be limited to the final repair cost which would have been incurred if provisional repairs had not been made. The Company Insurers hereby agree with the Insured that if any physical loss or damage insurable under Section 6 of this Policy gives rise to a total or partial interruption of the normal functions of any Item entered under Section 6 of the Schedule, the Insurers will also pay any normal charges indemnify the Insured for the dismantling actual additional expenditures as specified in the Schedule which were necessarily and reasonably incurred during the Indemnity Period for the sole purpose of avoiding or diminishing the machinery destroyed but effects of such interruptions or interference. Particularly, this Section shall cover additional expenditures incurred for: a) the salvage will be taken into account.use of substitute items; b) the application of other operating or manufacturing methods; c) Any extra charges incurred for overtimethe hiring of services or the purchasing of, nightsemi-work, work on public holidays, express freight are covered by this insurance only if especially agreed to in writingmanufactured or finished products. d) In the event of the makers’ drawings, patterns and core boxes necessary for the execution of a repair not being available the Company shall not be liable for cost of making any such drawing patterns or core boxes. e) The cost of any alterations, improvements or overhauls shall not be recoverable under this Section. f) The cost of any provisional repairs will be borne by the Company if such repairs constitute part of the final repairs and do not increase the total repair expenses. g) If the Sum Insured is less than the amount required to be insured as per Provision 1 hereinabove, the Company will 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. h) The Company will make payments only after being satisfied, with the necessary bills and documents that the repairs have been effected or replacements have taken place, as the case may be. The Company may, however, not insist for bills and documents in case of total loss where the Insured is unable to replace the damaged equipments for reasons beyond their control. In such cases claims can be settled on ‘Indemnity Basis’. SPECIAL CONDITIONS: 1. The Insured shall take all reasonable steps to maintain the insured property in efficient working order and ensure that no item is habitually or intentionally over loaded. The Insured shall fully observe the manufacturer’s instructions for operating, inspection and overhaul, as well as government, statutory, municipal and all other binding regulations in force concerning the operation and maintenance of the insured plant and machinery. 2. The Company’s Officials shall at all reasonable times have the right to inspect and examine any property insured hereunder and the Insured shall provide the Officials of the Company with all details and information necessary for the assessment of the risk. The Company shall provide the Insured with a copy of the inspecting Official’s report; which shall however be treated as strictly confidential both by the Insured and the Company.