Common use of Insurance Plan Clause in Contracts

Insurance Plan. Clause 24.1. During the entire term of effectiveness of the concession, the Concessionaire must keep with an Insurance Company of compatible size with the capital to be secured, registered at the regulating agencies of the sector, the following insurance policies required to warrant the effective and encompassing coverage of risks inherent to the development of all the activities foreseen in the present Contract: I – insurance of the type “all risks” for material damages covering the loss, the destruction or the damage in all or in any asset which is part of the concession, being that such insurance must foresee all the coverages included as per international standards; II – insurance of preservation of economic conditions for the continuity of the exploration of the service, covering, at least, the operational costs against variations in the revenues of the Concessionaire, resulting from casualties or modifications in the conditions of exploration of the Contract that are not covered by the insurances of material damages, as long as the agreement of this modality of insurance is accepted by Brazilian norms and expressly authorized by the Instituto de Resseguros do Brasil – IRB, or equivalent entity, and III – guarantee insurance on the compliance with the obligations relative to the quality and universalization foreseen in this Contract (Performance Bond, letter of credit and value maintained as a guarantee) in the corresponding amount of 10% (ten per cent) of the value of investments estimated each year for the fulfillment of the goals foreseen in the present Contract.

Insurance Plan. Clause 24.1. During the entire term of effectiveness of the concession, the Concessionaire must keep with an Insurance Company of compatible size with the capital to be secured, registered at the regulating agencies of the sector, the following insurance policies required to warrant the effective and encompassing coverage of risks inherent to the development of all the activities foreseen in the present Contract: I – insurance of the type “all risks” for material damages covering the loss, the destruction or the damage in all or in any asset which is part of the concession, being that such insurance must foresee all the coverages included as per international standards; II – insurance of preservation of economic conditions for the continuity of the exploration of the service, covering, at least, the operational costs against variations in the revenues of the Concessionaire, resulting from casualties or modifications in the conditions of exploration of the Contract that are not covered by the insurances of material damages, as long as the agreement of this modality of insurance is accepted by Brazilian norms and expressly authorized by the Instituto de Resseguros do Brasil – IRB, or equivalent entity, and III – guarantee insurance on the compliance with the obligations relative to the quality and universalization foreseen in this Contract (Performance Bond, letter of credit and value maintained as a guarantee) in the corresponding amount of 10% (ten per cent) of the value of investments estimated each year for the fulfillment of the goals foreseen in the present Contract.and