Common use of Losses and Compensation Clause in Contracts

Losses and Compensation. 1. Notwithstanding Article 13.2(b) (Non-Conforming Measures), each Party shall accord to investors of the other Party that have suffered loss or damage relating to their investments in the territory of the former Party due to war or other armed conflict, revolution, a state of national emergency, revolt, insurrection, riot or other such similar activity in the territory of that former Party, treatment, as regards restitution, indemnification, compensation or any other settlement, that is no less favourable than that which it accords to its own investors or investors of a non- Party. 2. Without prejudice to paragraph 1, if an investor, suffers a loss in the territory of the other Party resulting from: (a) requisitioning of its property by the Party's forces or authorities; or (b) destruction of its property by the Party's forces or authorities, which was not caused in combat action or was not required by the necessity of the situation, the other Party shall provide the investor with restitution or adequate compensation for such loss. 3. Any payment under this Article shall be effectively realizable, freely transferable and freely convertible at the market exchange rate into freely usable currencies.