Comprehensive Extensions

Comprehensive Extension Clauses
10
/GENERAL
E001 Breach of Condition Clause...................................................................................................10
Currency Clause (AON)....................................................................................................................10
Dispute Clause (AON)......................................................................................................................10
E002 Errors and Omissions Clause..................................................................................................11
E003 Loss Payee Clause..................................................................................................................11
Loss Notification Clause (AON).......................................................................................................11
E004 No Control Clause..................................................................................................................11
E005 Approved Loss Adjuster Clause.............................................................................................12
Nominated Adjuster (Marsh)............................................................................................................12
E006 Payment on Account Clause...................................................................................................12
Payment On Account Clauses (Marsh).............................................................................................12
Interim Payment Clause (HSBC)......................................................................................................13
E007 60 Days Notice Of Cancellation Clause................................................................................13
E008 Breach of Warranties Clause..................................................................................................13
Breach of Warranties (AON)............................................................................................................14
Breach of Warranties and Conditions (AON)...................................................................................14
E009 Non-Invalidation Clause.........................................................................................................14
Non-vitiation Clause (HSBC)...........................................................................................................14
E010 Automatic Extension of Period of Insurance (60 Days)........................................................15
E011 Bankruptcy, Insolvency or Termination.................................................................................15
E012 Financial Interests...................................................................................................................15
E014 Losses in Progress..................................................................................................................16
E015 Misrepresentation. Mis-description. Non-Disclosure, /Alteration Errors and Omissions.....16
E016 Subrogation Waiver................................................................................................................17
E017 Multiple Insureds (Non-Vitiation) Clause..............................................................................17
E020 Notice of Cancellation and/or Material Change.....................................................................18
E021 Loss Payee Clause..................................................................................................................19
20
/ PROPERTY
E101 Agreed Value Insurance Clause..............................................................................................20
E102 All Other Contents Clause......................................................................................................20
All Other Contents Clause (HSBC)..................................................................................................21
E103 Alteration of Building Clause.................................................................................................21
Alterations and Repairs (Contract Limit: RMB1,000,000 any one contract) (Marsh)....................22
E104 Automatic Reinstatement of Sum Insured Clause..................................................................22
E105 Automatic Cover Clause.........................................................................................................22
Automatic Cover for new locations (Limit: RMB5,000,000 & subject to Class I construction)
subject to 90 days reporting period) (Marsh)...................................................................................23
E106 Automatic Escalation Clause..................................................................................................23
E107 Average Relief Clause............................................................................................................23
Average Relief Clause (80%-including Stocks) B006 (AON).........................................................24
80% Average Relief (Applicable to Buildings Only) (Marsh)F.......................................................24
Page 1 of 159
Awnings, Blinds, Signs and Other Outdoor Fixtures or Fittings Z004 (Limit:RMB100,000)
building (AON)................................................................................................................................24
Basis Of Valuation (HSBC)..............................................................................................................24
E108 Brand & Label or Trademarks Clause....................................................................................25
Brand and Trademark (Marsh)..........................................................................................................25
E109 Breakage of Glass Clause.......................................................................................................26
E110 Burglary Insurance Clause......................................................................................................26
E111 Capital Additions Clause........................................................................................................27
Computer Systems Records (Marsh)................................................................................................27
E112 Contract Price Valuation Clause.............................................................................................27
E113 Co-Insurance Clause (85%)....................................................................................................28
Cost of Demolition and Clearing and Erection of Hoarding Z008 (Limit:10% of S/I) building
(AON)................................................................................................................................................28
Cover For Demolition and Re-erection Costs (AON)......................................................................28
Cost of Re-erection Clause (AON)...................................................................................................29
Cost Of Re-erection Clause (Marsh)................................................................................................29
E114 Deterioration of Stock Clause.................................................................................................29
C115 Designation Of Property Clause.............................................................................................29
E116 Earthquake Extension Clause.................................................................................................30
Earthquake & Tsunami Clause (HSBC)...........................................................................................30
Expediting and Mitigating Expense (Sublimit: ______________ each and every loss) (Marsh)...30
E117 Extra Charges Clause..............................................................................................................31
Extra Perils Extension Clause (HSBC).............................................................................................31
E118 Fire Extinguishing Expenses Clause......................................................................................32
E119 Full Theft................................................................................................................................32
E120 Flood Damage.........................................................................................................................33
E121 Floating Stock Clause.............................................................................................................33
Forklift Liability within the Premises (AON)..................................................................................33
Free Issue Material (AON)...............................................................................................................34
Full Flood Extension (AON)............................................................................................................34
E122 Impact Damage Clause...........................................................................................................34
E123 Inland Transit Extension.........................................................................................................34
Inland Transit Clause (HSBC)..........................................................................................................35
Inhibition Clause (Marsh).................................................................................................................35
E124 Land-slip & Subsidence Clause.............................................................................................35
Leased Property Clause (AON)........................................................................................................36
E125 Malicious Damage Clause......................................................................................................37
Mortgagee Clause (AON).................................................................................................................37
Waiver of Subrogation against mortgage bank (HSBC)...................................................................38
Loss Payable and Notice of Cancellation Clause (HSBC)...............................................................38
Minimization of Loss Expenses (AON)...........................................................................................39
Minor Works (Sublimit: __________ each and every loss) (Marsh)...............................................39
Miscellaneous Unnamed Locations (Sub-limit: ______________ each and every loss) (Marsh). .39
New Replacement Value Clause (AON)...........................................................................................39
Page 2 of 159
E126 Off Premises Property Clause................................................................................................40

Offsite Storage Clause (Limit of Indemnity: RMB1,000,000 any one accident per location)
(HSBC)..............................................................................................................................................40
Operation/Premise (AON)................................................................................................................40
Outbuilding Clause Z024 building (AON)....................................................................................40
Pairs & Sets Clause (AON)...............................................................................................................41
Portable Items and Movable Articles Extension Clause (AON)......................................................41
E127 Professional Fees Clause........................................................................................................41
E128 Public Authorities Clause.......................................................................................................41
Public Authorities Clause (HSBC)...................................................................................................43
E129 Reinstatement (Value) Clause................................................................................................43
E130 Removal of Debris Clause......................................................................................................45
E133 Sprinkler Leakage Damage Clause........................................................................................45
E134 Stock Declaration Clause.......................................................................................................46
E135 Strike, Riots, Civil Commotion Clause..................................................................................46
E136 Subrogation Expenses Clause................................................................................................47
Sue and Labour Clause (AON).........................................................................................................47
E137 Television Receivers and External Aerials.............................................................................47
E138 Temporary Protection Clause.................................................................................................48
Cost of Temporary Protection Clause (Marsh).................................................................................49
E139 Temporary Removal Clause...................................................................................................49
Tenants' Improvements Clause Z028 building (AON)..................................................................50
E140 Time Adjustment Clause (72 Hours)......................................................................................50
E141 Electrical Clause.....................................................................................................................50
E142 Vehicle Load Clause...............................................................................................................51
E143 Portable Computers / Mobile Telephone Extension Clause...................................................51
Loss &/or Damage to Laptop in Premises (Limit: RMB20,000 any one accident and RMB100,000
in aggregate) (Marsh)........................................................................................................................51
Works of Art (RMB50,000 any one article and RMB500,000 in aggregate) (Marsh).....................51
...........................................................................................................52
...............................................................................................................52
Nominated Loss Adjusters Clause....................................................................................................52
Terrorism Exclusion (NMA2920).....................................................................................................53
...............................................................................................................................53
LEG3/96 - The London Engineering Group Model "Improvement" Defects Wording (AON)......54
UNOCCUPYING CLAUSE (Houlder)............................................................................................54
/Machinery Breakdown 54
E701 Strike, Riots, Civil Commotion Clause..................................................................................54
E702 Automatic Reinstatement of Sum Insured Clause..................................................................55
E703 Removal of Debris Clause......................................................................................................55
E704 Extra Charges Clause..............................................................................................................55
E705 Airfreight Clause.....................................................................................................................56
E706 Professional Fees Clause........................................................................................................56
E707 Overhaul of Electric Motors...................................................................................................57
Page 3 of 159
E708 Overhaul of Steam, Water and Gas Turbines and TurboGenerator Sets............................57
E709 Serial Losses...........................................................................................................................59
E710 Delay in Repair Under The Loss of Profit.............................................................................59
Boiler and Pressure Vessel Explosion Clause (HSBC).....................................................................60
DETERIORATION OF FOOD STOCK CLAUSE (Marsh)............................................................60
Full Replacement Value (Marsh)......................................................................................................60
LOSS OR DAMAGE TO SURROUNDING PROPERTY (Marsh)................................................60
Pollutant Cleanup and Removal Clause (Marsh)..............................................................................60
REMOVAL OF DEBRIS CLAUSE (Limit: 10% of Sum Insured) (Marsh)...................................61
REPLACEMENT VALUE CLAUSE (Marsh).................................................................................61
/BUSINESS INTERRUPTION 62
E301 Automatic Coverage Clause...................................................................................................62
Accumulated Stocks (AON).............................................................................................................62
Additional Increase in Cost of Working (AON)...............................................................................63
Additional Cost of Working (AON)..................................................................................................63
Auditors fees (AON).........................................................................................................................63
Civil Authorities (Marsh)..................................................................................................................63
E302 Closure of Premises/Facilities Clause....................................................................................63
Costs of Compiling Records and Claims Preparation Subject to Limit RMB100,000 (AON).....64
Claims Preparation Expenses Clause (HSBC).................................................................................64
E303 Departmental Clause..............................................................................................................64
E304 Inclusion of All Turnover Clause...........................................................................................65
Inclusion of All Turnover Clause (AON).........................................................................................65
Interdependency Clause (AON)........................................................................................................65
Interdependency Extension (Geographical Limit: China) (Marsh)..................................................65
E305 Loss of Book Debts Clause....................................................................................................66
E306 Monthly Payment on Account................................................................................................66
E307 Murder, etc. Clause.................................................................................................................67
Murder, Suicide or Disease or Defective Sanitation Clause (AON)................................................67
E308 New Business Clause.............................................................................................................68
E309 Premium Adjustment Clause..................................................................................................68
E310 Prevention of Access Clause..................................................................................................69
E311 Public Utilities Extension Clause...........................................................................................69
Failure of Public Utilities (Marsh)....................................................................................................70
E312 Professional Accounts Clause................................................................................................71
E313 Reinstatement Clause.............................................................................................................71
E314 Uninsured Standing Charges Clause......................................................................................71
E315 Suppliers* and/or Customers* Premises Extension(s)...........................................................72
Major Suppliers and/or Customers Premises Extension (cover restricted to first tier supplier /
customer only, Sublimit: RMB10,000,000 each and every loss ) (Marsh)......................................72
Output Option Clause (Marsh)..........................................................................................................73
REBATE OF PREMIUM CLAUSE (Marsh)...................................................................................73
UNNAMED SUPPLIERS/CUSTOMERS EXTENSION (Marsh)..................................................73
WAIVER OF EXCESS CLAUSE (Marsh)......................................................................................73
Page 4 of 159
/ PUBLIC LIABILITY 74
E501 Act of Terrorism Extension Clause.........................................................................................74
E502 Additional Insured Clause......................................................................................................74
Additional Insured-Employees; (AON)............................................................................................75
E503 Advertising Signs and Decorations Liability Clause.............................................................75
Advertising Signs & Decorations (Marsh).......................................................................................75
E504 Automatic Cover for New Location Clause...........................................................................76
All Plant, Machinery and Equipment (including Lifts, Hoists and Cranes) (AON)........................76
Automatic Reinstatement of Limit of Liability (AON)....................................................................76
E505 Building Alterations Clause....................................................................................................76
E506 Car Park Liability Clause.......................................................................................................77
Care Custody or Control Clause (AON)...........................................................................................78
E507 Cloak Room Clause/ Personal Effects Clause........................................................................78
E508 Contractual Liability Clause...................................................................................................78
Costs Inclusive (AON)......................................................................................................................79
Contingent Auto Liability. CSL US$250,000 per occurrence to sit(AON)..............................79
Contingent Liability For Contractors & Sub Contractors Clause (AON)........................................79
Completed Operations Clause (AON)..............................................................................................79
Contract Liability Clause (HSBC)....................................................................................................80
E509 Cross Liability Clause............................................................................................................80
E510 Defective Sanitation Liability................................................................................................81
Delivery Goods Extension Clause (AON)........................................................................................81
E511 Elevator and Escalator Clause................................................................................................81
E512 Exhibitions & Promotions Clause..........................................................................................82
E513 Excess Insurance Clause.........................................................................................................82
E514 Employees Act Clause...........................................................................................................82
E515 Explosion of Boilers &/or Steam Pressure Vessels Extension...............................................83
Boiler & Pressure Vessel Liability Clause (HSBC)..........................................................................83
E516 Fire, Explosion & Smoke Damage Extension Clause............................................................83
Smoke Damage Clause (HSBC).......................................................................................................84
E517 Fire Brigade & Water Damage Liability Clause....................................................................84
E518 First Aid Liability Extension..................................................................................................84
E519 First Aid Treatment Clause.....................................................................................................85
E520 Food and Drink Clause...........................................................................................................85
E521 Goods and Services Clause....................................................................................................85
E522 Guests Property Clause (Visitors Effects Clause)................................................................86
Liability for personal effects of Guests (AON)................................................................................86
E523 Hoist, Cranes &/or Unregistered Vehicles Liability Clause..................................................86
E524 Independent Contractors Liability Clause..............................................................................87
Indemnity To Landlord Clause (AON).............................................................................................87
E525 Liability to Directors & Non-manual Employees whilst Overseas (Overseas Business Trip
Liability Clause)................................................................................................................................88
Business Trip Abroad (Worldwide including USA/ Canada) (AON)..............................................88
Business Trip Abroad ( Including U.S.A & Canda;Limit:RMB300,000 per person per accident)
Page 5 of 159
(Marsh)..............................................................................................................................................89
E526 Loading and Unloading of Vehicles Clause...........................................................................89
E527 Landlords Property under Care, Custody & Control of Insured...........................................89
E528 Hired Or Non-Owned Automobile Liability Clause/Motor Contingent Liability Clause.....90
E529 Owned Automobile Liability Clause......................................................................................90
E530 Parking Liability Clause.........................................................................................................90
Reinstatement of Limit (AON).........................................................................................................91
SIR Definition / Retention Clause (AON)........................................................................................91
E531 Social &/or Sports Clubs Liability Clause.............................................................................93
Social & Recreational Activities (Marsh).........................................................................................93
E532 Strike, Riot, Civil Commotion or Malicious Damage Extension Clause..............................93
E533 Swimming Pool Liability Clause...........................................................................................94
E534 Personal Injury Liability Clause.............................................................................................94
Premises Medical Clause (AON)......................................................................................................95
Premises Medical Expenses Clause (Limit: US$500 any one accident) (Marsh)............................95
Premises/Operations Clause (Marsh)................................................................................................95
Property Owner's Liability (AON)...................................................................................................95
E535 Accidental Pollution Clause...................................................................................................96
Sudden and Accidental Pollution Liability Clause (HSBC).............................................................96
Third Party Definition Clause (HSBC).............................................................................................96
E536 Third Party Liability of Directors and Executives Clause.....................................................97
E537 Excess Liability Of Motor Insurance Clause.........................................................................97
E538 Consequential Loss to Third Party Clause.............................................................................98
E539 Lessors Liability Clause........................................................................................................98
Leased Staff Residences (Marsh)......................................................................................................98
E540 Delivery Risk Clause..............................................................................................................98
E541 Gradual Disease......................................................................................................................99
E542 Indemnity to Principals Clause...............................................................................................99
E543 Away Premise Clause...........................................................................................................100
E544 Liquor Liability Clause.........................................................................................................100
E545 Baby Sitting & Hair Dressing Liability Clause....................................................................101
E546 Tenants Legal Liability Clause............................................................................................101
E547 Use of Hire in Plant, Machinery Liability Clause................................................................101
C549 ..............................................................................................................102
E551 Absolute Exclusion of Asbestos Clause...............................................................................103
Asbestos and refractory ceramic fibres (AON)..............................................................................103
E552 Absolute Exclusion of Pollution Clause...............................................................................103
E555 Professional Liability Exclusion..........................................................................................104
Working Away from Premises Clause (AON)................................................................................104
Vehicle not licenced for Public Road use Clause (HSBC).............................................................104
WAIVER OF SUBROGATION CLAUSE (Marsh).......................................................................105
/Product Liability 105
Automatic Cover of New Products Clause ( days Reporting Period) (AON)..............................105
Dioxins and Furanes Exclusion (AON)..........................................................................................105
Page 6 of 159
E701 Premium Adjustment Clause................................................................................................105

E702 Claim Made Basis Clause.....................................................................................................106
E703 Batch Clause.........................................................................................................................106
E704 Completed Operation Hazard Endorsement.........................................................................107
E705 Broad Form Vendors Liability Cover Clause.......................................................................108
Polychlorinated Biphenyls Exclusion (AON)................................................................................108
Wrong Mark or inscription Extension Clause (AON)....................................................................109
BATCH CLAUSE (Marsh).............................................................................................................109
/EMPLOYERS LIABILITY 109
Automatic Additions & Deletions Clause (AON)..........................................................................109
Bodily Injury (Marsh).....................................................................................................................109
Dormitory Liability Extension (Marsh)..........................................................................................109
Definition of Salary / Remuneration (AON)..................................................................................110
E601 Emergency Transportation Expenses Clause.......................................................................110
Emergency Transportation Clause (AON)......................................................................................110
E602 Extraordinary Weather Clause..............................................................................................110
E603 Meals & Lunch Time Extension...........................................................................................111
Catering Facilities Clause (AON)...................................................................................................111
E604 Temporarily Working Overseas Clause................................................................................111
E605 The Way To and From the Working Place Extension Clause...............................................111
E606 24-Hour Cover on Business Travel......................................................................................112
E607 24-Hour Cover for Accident Rider.......................................................................................112
24 Hour Extension Clause (AON).................................................................................................112
E608 Social & Recreational Activities (Sports) Clause................................................................113
E609 Automatic Cover of New Employees Clause.......................................................................113
Automatic Cover for New Employees Clause (AON)...................................................................113
E610 Premium Adjustment Clause................................................................................................113
C611 ..............................................................................................114
E612 Indemnity for Permanent Disablement Clause.....................................................................115
E613 Definition of Occupational disease Clause..........................................................................116
C614 ......................................................................................................117
(AON)............................................................................................................119
E615 Employers Liability Endorsement.......................................................................................119
Service of the Insured (AON).........................................................................................................120
Workmen Clause B038 - building EL (AON)..............................................................................120
120
/CONTRACTORS
E401 Airfreight Clause...................................................................................................................120
E402 Automatic Reinstatement of Amount Clause.......................................................................121
E404 Camps and Stores Clause.....................................................................................................121
E405 Construction/Erection Machinery Clause............................................................................121
E406 Construction Material Clause...............................................................................................122
E407 Construction Plant, Equipment and Machinery Clause.......................................................122
E408 Contractual Liability Clause.................................................................................................123
E409 Contract work taken Over or Put into Service Clause.........................................................123
Page 7 of 159
E410 Designers Risk Clause.........................................................................................................123

Cover for Testing of Machinery and Installations..........................................................................124
E412 Cross Liability Clause..........................................................................................................124
E415 Drilling Work For Water Wells Clause.................................................................................125
E416 Cost for Decontamination Clause.........................................................................................126
E417 Special Conditions Concerning Safety Measures with Respect to Precipitation, Flood and
Inundation.......................................................................................................................................127
E421 Existing Structures and/or Surrounding Property Clause....................................................127
E423 Extended Maintenance Clause.............................................................................................128
E425 Extra Charges Clause............................................................................................................129
E426 Fire-Fighting Facilities Clause.............................................................................................129
E428 Guarantee Period Clause......................................................................................................130
E429 Hydrocarbon Processing Industries Clause 1.......................................................................130
E430 Hydrocarbon Processing Industries Clause 2.......................................................................131
E431 Inland Transit Clause............................................................................................................131
E432 Laying Water Supply and Sewer Pipes Clause....................................................................132
E433 Laying Pipelines, Ducts and Cables Clause.........................................................................132
E434 Leak search costs when Laying Pipelines Clause................................................................133
E435 Maintenance Visits Clause...................................................................................................133
E436 Marine Cargo Insurance (50/50) Clause..............................................................................134
Motor Contingent Liability (AON).................................................................................................134
E437 Non-Survey Clause...............................................................................................................135
E439 Offsite Storage Clause..........................................................................................................135
E442 Plans and Documents Clause...............................................................................................136
E443 Premium Installment Clause................................................................................................136
E444 Prevention Measure Clause..................................................................................................136
E445 Professional Fees Clause......................................................................................................137
E446 Reactor Pressure Vessel with Internals Clause.....................................................................137
E447 Removal of Debris Clause....................................................................................................138
E450 Strike, Riot and Civil Commotion Clause............................................................................138
E451 Structures in Earthquake Zones Clause................................................................................140
E452 Time Schedule Clause..........................................................................................................140
E453 Time Adjustment Clause.......................................................................................................141
E456 Underground Cables, Pipes and Other Facilities Clause.....................................................141
E457 Unexploded Bombs Clause..................................................................................................142
E459 Vibration, Removal or Weakening of Support Clause.........................................................142
E461 Exclusion of Tunnels and Galleries Clause..........................................................................144
E462 Exclusion of Dams and Water Reservoirs Clause................................................................144
E463 Exclusion of Earthquake Clause...........................................................................................145
E464 Exclusion of Flood and Inundation Clause..........................................................................145
E465 Exclusion of Crops, Forests and Cultures Clause................................................................145
C466 Exclusion of Removal of Debris from Landslides Clause...................................................145
E467 Exclusion of Used Machinery Exclusion Clause.................................................................146
Other Insurance Clause (Marsh).....................................................................................................146
Page 8 of 159
Authorized Visitor (Houlder)..........................................................................................................146

Basis of Indemnity Clause (Houlder).............................................................................................147
Contract Works taken over or put into service (Houlder)...............................................................147
Cross Liability Clause (Houlder)....................................................................................................147
Designer Risks (Limit: RMB2,000,000 AOA & RMB10,000,000 in aggregate) (Houlder).........147
Employees Effect Clause (Limit: RMB20,000 per employee) (Houlder).....................................147
Cover of Employers Property Clause (Houlder)...........................................................................148
Escalation Clause 20% (Houlder)................................................................................................148
Expediting Expenses (Limit: 20% of Adjusted Loss) (Houlder)...................................................148
Final Contract Sum Adjustment Clause (Houlder).........................................................................148
Fire Extinguishment Costs (Limit: RMB500,000 any one loss) (Houlder)...................................148
Ground Subsidence Clause (Houlder)............................................................................................149
Inland Transit (Limit: RMB5,000,000; Excess: 5% of loss amount) (Houlder)............................149
Local Authorities Reinstatement Clause (Houlder)........................................................................149
Marine Insurance 50/50 Clause (Houlder).....................................................................................149
Non-negligence Clause (Houlder)..................................................................................................150
Off-Site Storage (Limit: RMB5,000,000) (Houlder)......................................................................150
Plan and Document Clause (Limit: RMB100,000) (Houlder).......................................................151
Prevention Measure Clause (Houlder)............................................................................................151
Show Flats / Mock-Up Flats, Sales Offices and Top-Up Ceremony (Limit: RMB5,000,000 for
Material Damage) (Houlder)...........................................................................................................151
Testing and Commissioning (Houlder)...........................................................................................151
Vibration or Removal or Weakening of Support Extension(Limit: RMB20,000,000 in aggregate;
Excess: 10% of Loss) (Houlder).....................................................................................................151
Pre-Appointment of Loss Adjuster (SGS-GAB Robins (China) Company Limited / Jinhui Loss
Adjuster Limited) (Houlder)...........................................................................................................152
/Marine Cargo & Inland 152
Concealed Damage Clause (AON).................................................................................................152
CONCEALED DAMAGE CLAUSE (30 DAYS)(Marsh).............................................................153
Special Clause for Marine/EAR 50/50 Clause (Marsh).................................................................153
Loading and Unloading Clause (Marsh).........................................................................................153
Temporary Storage (30 Days) (Marsh)...........................................................................................153
DEFERRED UN-PACKING -90 DAYS (Marsh)..........................................................................153
STORAGE EXTENSION (Marsh).................................................................................................153
GENERAL AVERAGE AND SALVAGE CHARGES (Marsh)....................................................154
HOISTING RISKS (Marsh)...........................................................................................................154
STRIKE, RIOT AND CIVIL COMMOTION (Marsh)..................................................................154
EXTRA EXPENSES (Marsh).........................................................................................................154
PREMIUM ADJUSTMENT (Marsh).............................................................................................155
DEFERRED UNPACKING 90 DAYS (Marsh)..........................................................................155
TRANSHIPMENT CLAUSE (Marsh)...........................................................................................155
/Money 155
Key Clause (AON)..........................................................................................................................155
Loss of or Damage to Safe, Strongroom, Cash register & Container / Drawer (Limit:RMB20,000)
Page 9 of 159
(Marsh)............................................................................................................................................155
Money in Unlocked Receptacles After Business Hours (Limit:3,000) (Marsh)............................156
Automatic Reinstatement of Indemnity Limit Clause (HSBC)......................................................156
Extend to Cover Loss of or Damage to Personal Effects or Clothing of Employees being attacked
whilst carrying or handling money on behalf of Insured (RMB5,000.- per person) (HSBC).......156
157
Fidelity Guarantee
157
Prima Facie Evidence (AON).........................................................................................................157
Temporary Substitute (AON)..........................................................................................................157
12 Months Discovery Period (HSBC)............................................................................................157
Page 10 of 159
/GENERAL
E001 Breach of Condition Clause

It is hereby agreed and understood that the conditions and warranties of this Policy shall apply
individually to each of the risks insured and not collectively to them. Thus a breach in any
condition or warranty shall void the section only in respect of all the risks to which that breach
applied and does not affect the section in respect of the other risks.
This Clause is subject otherwise to the terms, conditions and exclusions of this policy.
C001
Currency Clause (AON)

Where any currency conversion under this Policy is necessary it is agreed that the exchange rate to
be used is the closing exchange rate quoted by the Central Bank of China and based on:a) the exchange rate on the date of policy inception or effective date of any subsequent
endorsement(s) for calculation and/or settlement of premium.
b) the exchange rate on the date of occurrence of loss or damage for adjustment and/or settlement
of claims.
This Clause is subject otherwise to the terms, conditions and exceptions of this Policy.
Dispute Clause (AON)
All dispute under this insurance arising between the Insured and the Company shall be settled
through friendly negotiations. Where the two parties fail to reach an agreement after negotiations,
such dispute shall be submitted to arbitration or to court for legal actions. Unless otherwise
agreed, such arbitration or legal action shall be carried out in the place where the defendant is
domiciled.
E002 Errors and Omissions Clause
It is hereby agreed and understood that the liability under this policy shall not be prejudiced by
any unintentional delay, error or omission in reporting new locations acquired or occupied or in
reporting values of property or in description of any other information provided that such delay,
error or omission shall be reported to the Company as soon as practicable after knowledge thereof,
and the Insured shall pay an appropriate additional premium upon request by the company, from
the date of any increase in risk. Improper, faulty or erroneous appraisals shall not be considered to
be an unintentional error or omission.
Page 11 of 159
C002
E003 Loss Payee Clause

At the request of the Insured, It is hereby declared and agreed that ______, is made an additional
Insured of this Policy and loss payee under this Policy. Upon written notice by the Insured may
designate additional or different loss payee(s) as it may be required.
C003
______
Loss Notification Clause (AON)

The Policy will not be prejudiced by any inadvertent delays in notifying the insurers of any
circumstances or events giving rise to a claim under the Policy.
E004 No Control Clause
It is hereby understood and agreed that the insurance hereby shall not be prejudiced by any act or
omission unknown to or beyond the control of the Insured on the part of anyone occupying or
using the premises provided that the Insured, immediately on becoming aware thereof, shall give
notice to the Company and pay the appropriate additional premium required.
C004
E005 Approved Loss Adjuster Clause

It is noted and agreed that the estimated loss amount exceed ____________, the Company agreed
to appoint Chartered Loss Adjuster firm in
to adjust the claim and all the costs and expenses
Page 12 of 159
will be bonded by the Company.

C005
____________
Nominated Adjuster (Marsh)

It is hereby agreed and declared that in the event of any loss covered by this Policy, the amount of
such loss shall be adjusted subject to the terms and conditions of the Policy by
-
GAB Robins China Co., Ltd. or

Pierre Leong Adjusters (Shanghai) Co., Ltd. or
other adjusters to be mutually agreed by the Insured and the Leading Insurer.
It is further noted and agreed that the loss adjusters fees will be paid by the Insurers.
E006 Payment on Account Clause
It is hereby understood and agreed that in the event of the occurrence of a loss covered under this
Policy the Company may approve an advance payment on account in respect of such loss at the
request of the Insured and with the loss adjusters recommendation. The amount is limited to
____________ of any claims.
C006
____________
Payment On Account Clauses (Marsh)

In the event of the occurrence of a loss covered under the policy, an advance payment on account
can be granted in respect of such loss at the request of the insured and with the loss adjusters
recommendation.
Interim Payment Clause (HSBC)
It is hereby understood and agreed that in the event of the occurrence of a loss covered under this
insurance an advance payment on account in respect of such loss will be made to the Insured with the
adjuster's recommendation.
Page 13 of 159
E007 60 Days Notice Of Cancellation Clause

It is hereby understood and agreed that the insurance may at any time be terminated at the option
of the insurer, giving sixty days notice to that effect being given to the Insured, in which case the
Company shall be liable to repay on demand a ratable proportion of the premium for the unexpired
terms from the date of the Cancellation.
The insurance may also at any time be terminated at the option of the insured, giving immediate
notice to that effect being giving to the Insurer, in which case the Insured shall be charged on a
short period premium for the expired terms from the date of inception.
C007
E008 Breach of Warranties Clause

If a breach of any warranty or condition in any form or endorsement attached to or made apart of
this insurance shall occur, and become known to the Insured, which breach, by the terms of such
warranty or condition, shall operate to suspend or void this insurance; it is agreed that such
suspension or voidance due to such breach shall be effective only during the continuance of such
breach, and then only as to the building or contents therein or other separate location to which
such warranty or condition has reference and in respect to which such breach occurs.
C008
Breach of Warranties (AON)

Any breach of the within warranties without the knowledge and consent of the Insured shall not
prejudice this Insurance provided notice in writing be given to the Company immediately upon
such breach coming to their knowledge.
Breach of Warranties and Conditions (AON)
The Warranties and Conditions of this Policy shall apply individually to each of the risks insured
Page 14 of 159
and not collectively to them. Thus a breach of any warranty or condition shall void the Policy only
in respect of all the risks to which that breach applied and does not affect the Policy in respect of
the other risks.
(AON)
E009 Non-Invalidation Clause

It is agreed that this Insurance shall not be invalidated by any change of occupancy or increase of
risk taking place in the Property Insured without the Insured's knowledge, provided that they shall,
immediately on the same time coming to their knowledge, advise the Company and pay any
additional premium that may be required from the date of such increase of risk.
C009
Non-vitiation Clause (HSBC)

It is noted and agreed that the Insured comprises more than one party each operating as separate
and distinct entity and that cover hereunder shall apply in the same manner and to the same extent
as if individual insurances had been issued to each such party.
The rights and indemnity of any of the parties who are not guilty of any act of neglect error or
omission fraud material misrepresentation material non-disclosure or any breach of any term or
any condition of this Policy shall not be prejudiced by any act of neglect error or omission fraud
material misrepresentation material non-disclosure or any breach of any term or any condition of
this Policy by any other insured party.
Provided always that nothing herein shall increase the liability of the Insurer under this Policy.
It is further understood and agreed that any payment, or payments, by Insurers to any one or more
such insured parties shall reduce, to the extent of that payment, Insurers liability to all such parties
arising from any one occurrence of loss, damage or injury giving rise to a claim under this Policy
and (if applicable) in the aggregate.
Page 15 of 159
E010 Automatic Extension of Period of Insurance (60 Days)

It is hereby understood and agreed that the Company shall automatically extend the Period of
Insurance under the Policy for 60 days if required by the Insured, on the existing terms and
conditions at premium to be charged on pro rata basis.
C010 60
60
E011 Bankruptcy, Insolvency or Termination

In the event of the bankruptcy, insolvency or termination of any party claiming to be indemnified
hereunder, the Company shall not be relieved hereby of the payment of any claim hereunder
because of such bankruptcy, insolvency or termination.
C011
E012 Financial Interests

Any person or party other than the Insured having a financial interest in this Policy at the time of
its loss or damage and the party acting as Facility Agent or Security Agent in connection with the
financing arrangements for the Project shall be indemnified by this Policy to the extent of such
interest as an Additional Insured and without the need for the interest of such person or party to be
notified to the Company but subject to evidence of that interest being provided to the Company in
the event of loss.
This extension of the insurance to such persons or parties shall be in all cases only for liability of
any such person or party which arises in connection with the activities of an Insured as stated in
the Schedule of the Policy and this extension shall not increase the Company liability for any one
loss event beyond the Limit of Indemnity stated in the Schedule.
C012
Page 16 of 159
E014 Losses in Progress

If this Policy should terminate whilst a loss is in progress, then subject to the other terms and
conditions of this Policy and provided that no part of such loss is claimed against any policy
replacing this Policy, it shall be assumed that the entire loss occurred prior to the termination of
this Policy and the indemnity provided by the Insurers shall be calculated accordingly.
C014
E015
Misrepresentation. Mis-description. Non-Disclosure, /Alteration Errors and
Omissions
The Policy shall be voidable in the event of misrepresentation, mis-description or non-disclosure
in any material particular.
The Insured's rights under this Policy shall not be prejudicially affected by any breach of warranty
or non-disclosure of a material fact, or alteration, extension or mis-description of premises,
occupancy, tenancy, process, trade or risk or any other act or omission:
a) due to negligence of the Insured, or acts or omissions of parties over whom the Insured has no
control including, but not limited to tenants or other occupiers.
b) in any part of any premises over which the Insured has no control.
c) due to unintentional error or omission of the Insured
Notice to be given to Insurers as soon as reasonably practicable after the Insured becomes aware
of the same.
If the Insured by any act or omission not provided for above affords Insurers the opportunity to
suspend or avoid this Policy, it is agreed that such suspension or avoidance shall only be effective
in respect of the Property Insured at the locations to which the act or omission has reference for
the period commencing with the date of such act or omission and ending the date the Insured
reports same to the Insurers.
C015 /
Page 17 of 159
2
3
E016 Subrogation Waiver

In the event of a claim arising under this Policy, the Company agree to waive any rights remedies
or relief to which they might become entitled by subrogation against:
1) any company associated or joint venture with the Insured;
2) any of the Insured's subsidiary or holding companies, or any directors, partners, officers and
employees;
3) the tenants and its partners, and its employees.
C016
1
2
3
E017 Multiple Insureds (Non-Vitiation) Clause

a) It is noted and agreed that if the Insured described in the schedule comprises more than one
insured party each operating as a separate and distinct entity then (save as provided in this
Multiple Insureds Clause) cover hereunder shall apply in the same manner and to the same extent
as if individual policies had been issued to each such insured party provided that the total liability
of the Insurer to all of the insured parties collectively shall not exceed the sums insured and limits
of indemnity including any inner limits set by memorandum or endorsement stated in the policy.
b) It is understood and agreed that any payment or payments by Insurers to any one or more such
insured parties shall reduce to the extent of that payment insurers liability to all such parties
arising from any one event giving rise to a claim under this policy and (if applicable) in the
aggregate.
c) It is further understood that the insured parties will at all times preserve and enforce the various
contractual agreements entered into by the insured parties and the contractual remedies of such
parties in the event of loss or damage.
d) It is further understood and agreed that Insurers shall be entitled to avoid liability to any of the
insured parties in circumstances of fraud, misrepresentation, non-disclosure or breach of any
warranty of this policy committed by that insured party each referred to in this clause as Vitiating
Act.
Page 18 of 159
e) It is however agreed that (save as provided in this Multiple Insureds Clause) a Vitiating Act
committed by one insured party shall not prejudice the right to indemnity of any other insured
party who has an insurable interest and who has not committed a Vitiating Act.
f) Insurers hereby agree to waive all rights of subrogation which they may have or acquire against
any insured party except where the rights of subrogation or recourse are acquired in consequence
or otherwise following a Vitiating Act in which circumstances Insurers may enforce such rights
notwithstanding the continuing or former status of the vitiating party as an Insured.
Nothing contained in the foregoing shall be taken to confer on Insurers any rights of subrogation
that do not exist in law.
C017
1
2
E020 Notice of Cancellation and/or Material Change
Until such time as the Facility Agent or the Security Agent, as agent of the Beneficiaries under the
Credit Facilities Agreement shall have notified the insurers in writing to the contrary, each insurer
will advise the Facility Agent or the Security Agent:1) of any proposed cancellation or notice of cancellation of any insurance at least 90 days before
such cancellation is to take effect, or of:
a) any material alteration; and
b) termination or expiry,
of any such insurances at least 90 days before such alteration termination or expiry takes effect.
2) promptly advise of any default in the payment of any premium, or failure to renew any such
insurance, and shall give the Security Agent not less than 30 days in which to pay any outstanding
or defaulted premium without canceling the policy during such 30 days period, provided always
that no liability shall attach to the Company as a result of any delay or failure so to do; and
3) of any act or omission or any event which any insurer has knowledge and which he or it
considers might invalidate or render unenforceable in whole or in part any such insurance; and
4) of any restriction or reduction in the scope or amount of cover (including any increase in
deductible or any addition to the exclusions).
5) of any claim exceeding _____________ or its equivalent.
Each Insurer agrees to waive any and all rights of subrogation of the insurers against the Facility
Agent or the Security Agent, beneficiaries and insured parties including directors, employees,
agents, staff and the Parent of the Project Facilities or monies secured thereon, and waive any right
of the insurers to any set off or counterclaim or any other deduction (with the exception of Salvage
recovery), whether by attachment or otherwise, in respect of any liability of any such person
insured under this Policy.
Page 19 of 159
E021 Loss Payee Clause

It is hereby declared and agreed, that until such time as Insurers hereunder are advised in writing
to the contrary by the Facility Agent or the Security Agent.
(a) The proceeds of any claim under Section 1 and 3 of this Policy will be paid to the Insurance
Proceeds Account except in the following circumstances:i. in the event of losses of more than _____________ (or its equivalent in other currency) in
respect of any one occurrence or in the aggregate during three (3) months of all claims (after the
application of policy deductible) the payment shall be made by Insurers to the Insurance Proceeds
Account and shall be used under the instruction of the Security Agent.
ii. in the event of Total Loss the Insures shall make a payment to the Compensation Account to be
opened by the Facility Agent or the Security Agent.
iii. if the Facility Agent or the Security Agent has given notice to the Insurers that a declaration of
an Event of Default has been made, the proceeds of all claims that are due for payment shall
thereafter be paid to the Security Agent Account.
(b) The proceeds of any claim under Section 4, Third Party Liability, of the within policy shall be
paid to the person to whom the liability was incurred or (in whole or in part) to any person who
has discharged the whole or any part of such liability (subject to the agreement of the Security
Agent)
For the purposes of (a) and (b) above any claim or number of claims arising from the same
occurrence shall be regarded as one claim.
(c) The proceeds of any claim under Section 2, Business Interruption, of the within policy shall be
payable in full (subject to the terms of the policy) to the Account to be instructed by the Facility
Agent or the Security Agent.
E022 Mortgagee Clause (Beneficiary: XXXXXXXXXX)
Loss, if any under this policy shall be payable to XXXXXXXXXX as mortgagees or assignees of
mortgage interest to the extent of their interest.
It is hereby agreed that in the event of loss of damage, the company will pay the mortgagees or
said assignees to the extent of their interest and that this insurance in so far as concerns the interest
therein of the mortgagees or said assignees only shall not be invalidated by any act or neglect of
the mortgagor or owner of the property insured, nor by anything whereby the risk is increased
being done to, upon or in any building hereby insured, without the knowledge of the mortgagees
or said assignees shall notify the company of any change of ownership or alteration or increase of
hazard not permitted by this insurance as soon as any such change, alteration or increase shall
come to their knowledge, and on demand shall pay to the company the appropriate additional
premium from the time when such increase of risk first took place.
And it is further agreed that whenever the company shall pay the mortgagees or said assignees any
sum for loss or damage under this policy, and shall claim that as to the mortgagor or owner no
liability thereof existed the company shall at once be legally subrogated to all rights of the
mortgagees or said assignees to the extent of such payment and the mortgagees or said assignees
transfers, assignments, instruments and things as may be necessary or be reasonably required by
the company for the purpose of better effecting such subrogation, but such subrogation, shall not
impair the right of the mortgagees or said assignees to recover the full amount of their claim.
Page 20 of 159
Provided that as between the company and the mortgagor or owner of the property insured nothing
contained in this clause shall in any way constitute or be deemed to constitute any waiver of, or
prejudice or affect any rights which the company may have against the mortgagor or owner of the
property insured, or lessen any obligations which may be imposed on the mortgagor or owner of
the property insured either by or under this policy or by law, and such rights and obligations shall
as between the company and the mortgagor or owner of the property insured remain in full force
and effect.
The company reserves the right to cancel this policy at any time as provided by the terms thereof,
but in such case this policy shall continue in force for the benefit only of the mortgagees or said
assignees for 10 days after notice to the mortgagees or said assignees of such cancellation, and
shall then cease, and the company shall have the right on like notice to cancel this agreement.
/ PROPERTY
E101 Agreed Value Insurance Clause

It is hereby agreed and understood that subject to the Insured having paid the agreed additional
premium. The limit of indemnity described in the Schedule of this Policy shall be the agreed value
of the property insured. In the event of loss or damage to the property insured, the amount payable
for such loss or damage shall be the agreed amount described in the Schedule of this policy. The
Insured shall provide a detailed list of insured property which shall constitute an integral part of
this policy, when proposed for the above insurance.
Extra Premium:
.
C101
E102 All Other Contents Clause

It is hereby agreed that within the limit of sum insured by Item ______ in the Schedule, the term
All Other Contents shall mean:
1) Documents, Manuscripts and Business Books, but only for the value of the materials as
stationery together with the cost of clerical labour expended in writing up and not for the value to
the Insured of the information contained therein, and
2) Patterns, Models, Moulds, Plans and Designs, belonging to the Insured or held by him in trust
or on commission for which the Insured is responsible. And so far as they are not otherwise
insured;
3) Employees clothing, tools and other personal effectsexcluding pedal cycles.
Amount recoverable under this Extension shall not exceed ____________ in aggregate for any
Page 21 of 159
annual period of insurance with a deductible of

for any one accident.
C102
______
1.
2.
3.
All Other Contents Clause (HSBC)

It is agreed that the term "All Other Contents" is understood to include:
1) Money and stamps not otherwise specifically insured;
2) Documents, manuscripts and business books but only for the value of the materials as
stationery, together with the cost of clerical labour expended in writing up, and not for the
value to the Insured of the information contained therein;
3) Computer systems records but only for the value of the materials together with the cost of
clerical labour and computer time expended in reproducing such records (excluding any
expenses in connection with the production of information to be recorded therein) and not for
the value to the Insured of the information contained therein;
4) Patterns, models, moulds, plans and designs so far as they are not otherwise insured;
5) Employees' pedal cycles, clothing, tools and other personal effects.
Provided that the value recoverable of such contents is subject to a limit of RMB1,000,000 any
one accident and in aggregate, deductible for any one accident is RMB5,000.)
E103 Alteration of Building Clause
It is agreed and understood that subject to the Insured having paid the agreed additional premium,
this Policy shall be extended to cover loss of or damage to the properties insured in the course of
alterations, additions, structural repairs and decoration works provided that the Insured shall give
the Company a prior notice in writing and exercise due diligence in preventing accidents, it being
understood that the total contract value shall not exceed ____________.
Extra Premium:
.
C103
____________
Page 22 of 159
Alterations and Repairs (Contract Limit: RMB1,000,000 any one contract) (Marsh)
It is hereby declared and agreed that this Policy is extended to cover the Property Insured whilst
the within insured situation is in the course of repair, renovation and alteration. Provided the
contract value of such repair, renovation and alteration is not greater than RMB1,000,000.
Should the contract value of such work is greater than the above mentioned amount, the Insured
should declare to the Insurer within 90 days as from the beginning of such work and the Insurer
would charge appropriate additional premium if required.
E104 Automatic Reinstatement of Sum Insured Clause
It is agreed and understood that in the event of loss or damage to the insured property described in
the Schedule of this Policy, the amount payable for such loss or damage shall be automatically
reinstated from the time of the happening and the Insured shall pay an additional premium
therefore calculated pro rata from the date of loss to the expiration of this policy.
C104
E105 Automatic Cover Clause

It is hereby agreed that the indemnity provided by this Policy shall apply automatically and shall
include all new or additional property as described in the Schedule from the time that construction
or acquisition of such property is completed or that title to such property is transferred to the
Insured or the Insured becomes responsible for such property (unless more specifically insured)
but the liability of the Company for such extension shall not exceed ____________% of the Total
Sum Insured. It is understood that the Insured shall advise the Company of all such new or
additional property in written, and not later than 60 days from the acquisition of such property and
a pro rata additional premium will be charged.
C105
____________%
60
Page 23 of 159
Automatic Cover for new locations (Limit: RMB5,000,000 & subject to Class I
construction) subject to 90 days reporting period) (Marsh)
It is hereby agreed that the indemnity provided by this Policy shall apply automatically and shall
include all new or additional property as described in the Schedule from the time that construction
or acquisition of such property is completed or that title to such property is transferred to the
Insured or the Insured becomes responsible for such property (unless more specifically insured). It
is understood that the Insured shall advise the Company of all such new or additional property in
written, and not later than 90 days from the acquisition of such property and a pro rata additional
premium will be charged.
E106 Automatic Escalation Clause
It is hereby agreed that the sum insured by item (
) shall, during each period of insurance, be
increased by that proportion of 15% which the number of days since the commencement of such
period shall bear to the whole of such period.
Unless specifically agreed to the contrary, the provision of this memorandum shall only apply to
the sum insured in force at the commencement of the period of the insurance. At each renewal
date, the insured shall notify the insurer:
1) The sum to be insured at the commencement of the forthcoming period of insurance.
2) The percentage increase required for the forthcoming period of insurance.
And in default there of the provision of this clause shall cease to apply.
All the conditions of the policy except insofar as they may be hereby expressly varied shall apply
as if they had been incorporated hereon.
C106

15
15%
E107 Average Relief Clause

Not withstanding anything herein contained to the contrary, it is hereby declared that if at the time
of replacement or reinstatement the sum representing the cost which would have been incurred in
replacement or reinstatement if the whole of the property covered had been destroyed, exceeds the
sum insured hereon by 15% at the breaking out of any fire or at the commencement of any
destruction of or damage to such property by any peril insured against by this policy, then the
insured shall be considered as being his own insurer for the excess and shall bear a ratable
Page 24 of 159
proportion of the loss accordingly. Each item of the policy to which this memorandum applies
shall be separately subject to the foregoing provision.
This clause is subject otherwise to the terms, exceptions and conditions of this Policy.
C107
15
Average Relief Clause (80%-including Stocks) B006 (AON)

It is hereby agreed and understood that each item insured under this memorandum is declared and
to be separated subject to the following condition of average, namely:
If at the time of reinstatement the sum representing 80 per cent of the cost which would have been
incurred in reinstatement if the whole of the property covered by such item had been destroyed
exceeds the sum insured hereon at the breaking out of any fire or at the commencement of any
destruction for or damage to such property by any other peril hereby insured against, then the
Insured shall be considered as being his own insurer for the difference between the sum insured
and the sum representing the cost of replacement or reinstatement of the whole of the property and
shall bear a rateable proportion of the loss accordingly. Every item, of more than one of this Policy
shall separated be subject to this condition.
Subject otherwise to the terms exceptions and conditions of this policy.
80% Average Relief (Applicable to Buildings Only) (Marsh)F
If the sum insured at the commencement of Damage to the Insured Property is less than 80% of
the value of the Insured Property then the Insured shall be considered as being his own insurer for
the difference between the sum insured and the full value of the Insured Property at the time of
such commencement of Damage and shall bear a ratable share of the loss accordingly.
Awnings, Blinds, Signs and Other Outdoor Fixtures or Fittings Z004 (Limit:RMB100,000)
building (AON)
It is agreed and understood that insurance under this Policy for insured Building is extended to
include outdoor fixtures or fittings of any description, including awnings, blinds, signs and the
like, for up to Limit:RMB100,000 any one loss.
Basis Of Valuation (HSBC)

The value of precious metals for the loss of which a claim is made by the Insured shall be
determined by their average market value on the business day of the discovery of such loss (or if
discovered during a week-end or national holiday, on the next business day thereafter).
Page 25 of 159
If at the time of any loss or damage the Sum Insured shall be less than 90 per cent of the total
value of the precious metals insured determined by their average market value on the business day
of the discovery of such loss (or if discovered during a week-end or national holiday, on the next
business day thereafter). The Insured shall be a coinsurer to the extent of an amount sufficient to
make the insurance equal to 90 per cent of the total value of precious metals hereby insured and in
the capacity shall bear their proportion of any loss that may occur.
If no market price is ascertained for such precious metals, the value shall be fixed by agreed value
described in the Schedule of this Policy.
E108 Brand & Label or Trademarks Clause
It is hereby agreed and understood that if branded or labeled merchandise covered by the Policy is
damaged, and the Company selects to take all or any of such merchandise at the agreed or
appraised value, the Insured may at his own expense, stamp the word salvage on the
merchandise or its containers or may remove the brands or labels, provided such stamp or removal
will not physically damage the merchandise, but shall re-label the merchandise or containers in
compliance with the requirements of Law.
C108
Brand and Trademark (Marsh)

In case of damage by a peril insured against to property bearing a brand or trademark or which in
any way carries or implies the guarantee or the responsibility of the manufacturer or Insured, the
salvage value of such damaged property shall be determined after removal at this Insurer's expense
in the customary manner of all such brands or trademarks or other identifying characteristics. The
Insured shall have full right to the possession of all goods involved in any loss under this policy
and shall retain control of all damaged goods. The Insured, exercising a reasonable discretion,
shall be the sole judge as to whether the goods involved in any loss under this policy are fit for
consumption. No goods so deemed by the Insured to be unfit for consumption shall be sold or
otherwise disposed of except by the Insured or with the Insured's consent, but the Insured shall
allow this Insurer any salvage obtained by the Insured on any sale or other disposition of such
goods.
(Marsh)
Page 26 of 159
E109 Breakage of Glass Clause

this policy shall be extended to cover the breakage of glass other than neon tube described in
the Schedule of this policy, other than the loss damage caused by the following:
1. fire;
2. earthquake.
Deductible (any one accident):
Limit of Indemnity:
C109
E110 Burglary Insurance Clause

It is agreed and understood that his Policy shall be extended to cover loss of and or damage to the
properties insured if and when the said properties shall be lost or damaged during the period of
insurance as a result of robbery or burglary or by thieves following upon a forcible or violent entry
into and upon the premises specified in the Policy (hereinafter call Burglary).
The Company shall not be liable for:
1. Loss of or damage to the insured properties caused by intentional act and actual default of the
Insured or his representatives,
2. Loss of or damage due to burglary by any member of the family of the Insured, his relatives,
employees, inmates, lodgers or any of these persons who instigates others to commit it,
3. Loss or damage due to burglary whilst the insured properties are put under a premise without
residents or absence of custodians for a period of more than 7 days,
4. Loss or damage due to burglary at the time of natural calamities, such as earthquake, flood, etc.,
5. Loss or damage due to burglary at the time of fire.
This Clause is subject otherwise to the terms, conditions and exclusions of this Policy.
Extra Premium:
.
C110
Page 27 of 159

()
()
()
()
()
E111 Capital Additions Clause

It is hereby agreed that the insurance by Item ______ of this Policy extends to include additions
and extensions to property insured, but not appreciation in value, made after the commencement
of each annual period of insurance for an amount not exceeding ____________, it being
understood that the Insured will declare quarterly the value of any such additions and extensions
and will pay an additional premium therefore calculated pro rata from inception of the additional
cover.
Amounts so declared shall be added to the sum insured by the relative item by endorsement
whereupon the provisions of this Clause shall be fully reinstated.
C111
______
____________
Computer Systems Records (Marsh)

In the event of Computer Systems Records suffering damage the basis upon whish the amount
payable in respect of such damage to be calculated shall be the value of the materials together with
the cost of clerical labor and computer time expended in reproducing such records (including any
expenses in connection with the production of information to be recorded therein) and not for the
value to the Insured of the information contained therein.
E112 Contract Price Valuation Clause
premium, the event of property insured having been sold but not delivered for which the Insured
is responsible and under the conditions of sale, the contract is cancelled by reason of non-delivery
of such property destroyed or damaged by fire or by any other perils insured hereby, the liability
of the Company in respect of such property shall be based on the contract price.
Page 28 of 159
Extra Premium:
.
C112
E113 Co-Insurance Clause (85%)

It is hereby agreed and understood that notwithstanding anything contained herein to the contrary,
the Sum Insured by this Policy having been declared by the Insured to represent 85 per cent of the
total value of the property described herein and the premium for this Policy having been
calculated accordingly it is hereby declared and agreed that if at the time of any loss or damage the
Sum Insured shall be less than 85 per cent of the total value of the property insured the Insured
shall be a coinsurer to the extent of an amount sufficient to make the insurance equal to 85 per
cent of the total value of property hereby insured and in the capacity shall bear their proportion of
any loss that may occur. Every item, if more than one, of the Policy shall be separately subject to
this Clause.
C113

Cost of Demolition and Clearing and Erection of Hoarding Z008 (Limit:10% of S/I)
building (AON)
It is agreed and understood that the insurance by this Policy is extended to include costs,
necessarily incurred by the Insured in respect of the demolition of Buildings and/or removal of
debris from the site, and in providing erecting and maintaining any street or pavement hoarding
required during demolition, site clearing and/or building operations following destruction of or
damage to the property insured by fire or by any other perils hereby insured against, provided that
the total amount recoverable under any item of the Policy shall not exceed 10% of the sum insured
thereby.
Cover For Demolition and Re-erection Costs (AON)
It is hereby noted and declared that this policy is extended to cover any costs and expenses arising
Page 29 of 159
out of including but not limited to dismantling, breaking up, demolition and/or re-erection of
machinery.
Cost of Re-erection Clause (AON)
The Insurance by this Policy extends to include the costs and expenses necessarily incurred by the
Insured in re-erecting fittings and fixing replacement machinery and plant destroyed or damaged
by any peril insured hereby provided that the total amount recoverable under any item of this
Policy shall not exceed in the aggregate the Sum Insured.
(AON)
Cost Of Re-erection Clause (Marsh)

The policy extends to include the cost of re-erection, fitting and fixing machinery and plant in
consequence of destruction of damage by any of the perils insured against, provided that the total
amount recoverable under any item of the policy shall not exceed the sum insured thereby.
(Marsh)
E114 Deterioration of Stock Clause

premium, the Insurer shall indemnify the Insured against loss of or damage to the stock caused by
deterioration due to any unforeseen and sudden breakdown in the freezing or cooling equipment.
Provided that the limit applicable to this Clause shall not exceed ____________ for any one
accident. and in aggregate.
Extra Premium:
.
C114
____________
C115 Designation Of Property Clause

For the purpose of determining where necessary the column heading under which any property is
insured, the company agrees to accept the designation under which such property has been entered
Page 30 of 159
in the insured's books.

C115
E116 Earthquake Extension Clause

this Policy shall be extended to cover loss of or damage to the insured property caused or expenses
incurred by earthquake.
Deductible for any one accident:
Limit of indemnity
:
Extra Premium:
.
C116
Earthquake & Tsunami Clause (HSBC)

This Policy shall be extended to cover the loss of or damage to the Insured property in the
specified premise(s) caused by earthquake and tsunami.
Limit of indemnity: The maximum limit of indemnity any one occurrence shall be 100% of the
Sum Insured as stated in the Schedule of the Policy.
Deductible: RMB400,000 any one accident
Subject otherwise to the terms, conditions and exceptions of this Policy.

Expediting and Mitigating Expense (Sublimit: ______________ each and every loss)
(Marsh)
This insurance extends to cover the reasonable extra cost incurred by the Insured with the consent
of the Insurer to:
make temporary repair or replacement and to expedite permanent restoration of Insured Property
subject of Damage, including overtime work, express freight or other rapid means of
transportation.
resume and/or maintain Normal Business
Provided:
the value of such property used for temporary repair or replacement and not incorporated into
Page 31 of 159
permanent restoration shall accrue to the Insurer.

the Insurers maximum liability under this provision shall be ________________ each and every
loss.
E117 Extra Charges Clause
It is agreed and understood that subject to the Insured having paid the agreed extra premium, this
insurance shall be extended to cover extra charges for overtime, night work, work on public
holidays and express freight(excluding air-freight).
Provided always that such extra charges shall be incurred in connection with any loss of or
damage to the insured items recoverable under the Policy.
If the sum(s) insured of the damaged item(s) is (are) less than the amount(s) required to be
insured, the amount payable under this Endorsement for such extra charges shall be reduced in the
same proportion.
Limit of indemnity for any one occurrence:
Limit of Indemnity in Aggregate
:
This Clause is Subject otherwise to the terms, conditions and exclusions of this Policy.
Extra Premium:
.
C117
, , , :
()
,
: _______________
: ___________
Extra Perils Extension Clause (HSBC)

In consideration of the payment of an additional premium this Policy subject to the Special Conditions
set out below is agreed to include loss or damage by fire only of or to the Property Insured caused by
its own spontaneous combustion.
Provided always that all the Conditions of the Policy (except insofar as they be hereby expressed
varied) shall apply as if they had been incorporated herein for this purpose any loss or damage by the
peril(s) specified above shall be deemed to be loss or damage by fire within the meaning of this Policy.
Special Conditions:
1.
Each item of this Policy which is subject to any condition of average is subject to the same
condition under
this endorsement in like manner. The liability of the Company under this endorsement in respect of
each other item of the Policy shall be limited to the proportion which the sum insured thereunder shall
bear to the total insurance effected by or on behalf of the insured on the same property against ordinary
Page 32 of 159
fire loss or damage (i.e destruction or damage as originally covered by the Policy)
2.
The company shall not be liable under this extension for loss or damage which at the time of the
happening of such loss or damage is insured by or would but for the existence of this extension be
insured by any other existing policy or policies except in respect of any excess beyond the amount
which would been payable under such other policy or policies had this insurance not been effected.
3.
The liability of the Company shall in no case under this endorsement and this policy exceed the
sum insured by each item of the Policy.

4.
This insurance does not cover consequential loss or damage of any kind or description except loss
or rent when such loss is included in the cover under the Policy.
5.
This endorsement does not extend the insurance under this Policy to cover loss by reason of any
ordinance or law regulating the construction or repair of building.
E118 Fire Extinguishing Expenses Clause

It is hereby agreed that this insurance is extended to cover:
1. Wages of the Insureds employees engaged in fire fighting activities other than full time
members of a Works Fire Brigade.
2. The cost of replenishment of Fire Fighting Appliances and destruction of or damage to
materials (including employees clothing and personal effects) and the cost of replacing or
repairing materials or equipment used in extinguishing a fire unless otherwise specifically insured.
3. All other costs and charges associated with the extinguishment or prevention of spread of fire
or for providing temporary safety devices in consequence of damage or the threat of damage by
fire or other peril hereby insured against.
Provided always that the liability of the Company in respect of such wages and costs shall be
limited to those necessarily and reasonably incurred in extinguishing fires at or adjoining the
situation of the Property Insured by this Policy or immediately threatening to involve such
property.
C118
1.
2.
3.
E119 Full Theft

Notwithstanding anything contained herein to the contrary and subject otherwise to its exclusions,
it is hereby agreed and understood that this policy is extended to cover the full indemnity if the
Page 33 of 159
property or any part thereof while within the premises shall be stolen or damaged by theft not
consequence upon any violent entry of or exit from the premises, the Company will indemnify the
Insured against such loss or damage.
This clause is subject otherwise to the terms, conditions and exclusions of this Policy.
C119
E120 Flood Damage

It is hereby agreed and understood that the insurance under this Policy shall extend to include loss
of or damage to the property insured directly caused by flood from any cause whatsoever but
excluding the first ________each and every loss as ascertained after the application of any
condition of average and occurring within each and every separate period of 72 consecutive hours
during the currency of this policy.
C120
72
_______
E121 Floating Stock Clause

It is warranted that the aggregate liability of the Company in respect of loss or damage to property
insured floating on situations herein described shall not in any case exceed the Sum Insured
thereon. It is further declared and agreed that if the aggregate value of the property insured
floating on situations herein described shall, at the time of any loss or damage, be collectively of
greater value than the sum insured thereon, then the Insured shall be considered as being his own
insurer for the difference, and shall bear a ratable proportion of loss accordingly.
This clause is subject otherwise to the terms, conditions and exceptions of the Policy.
C121
Forklift Liability within the Premises (AON)

It is declared and agreed that the Policy extends to indemnify the Named Insured for claims in
respect of bodily injury or damage to property arising solely out of the ownership, maintenance or
use of any forklift located at or about the Insured Premises subject to the following additional
Page 34 of 159
provisions:
1) The insurance does not apply to any forklift in the course of erection, maintenance or repair
conducted by or on behalf of the Name Insured
2) Warranted that the Named Insured shall comply with all statutory enactment, by-law and
regulations, and shall at all times ensure that the forklift are kept in a proper state or repair and if
any defect be discovered the Named Insured shall forthwith case such defect to be made good and
shall in the meantime cause such additional precautions to be taken for the prevention of accident
as the circumstances may require. So far as is reasonably practicable no alteration or repair shall
without the consent of the Company be made to the said forklift after any accident has occurred in
connection therewith until the Company shall have has an opportunity of inspection.
Free Issue Material (AON)
Property Insured shall include any material which are supplied free of charge and for which the
Insured is liable for damage provided that the Insured shall declare the value of such materials for
premium adjustment purposes.
Full Flood Extension (AON)
The insurance under this Policy shall extend to include loss of or damage to the Property Insured
directly caused by typhoon, windstorm or flood, subject otherwise to the terms, conditions and
exclusions of the policy. For the purpose of this extension, flood damage shall mean loss of or
damage to the property insured directly caused by water from any cause whatsoever.
E122 Impact Damage Clause
this insurance shall be extended to cover loss and/or damage directly caused by impact with the
buildings hereby insured or the walls, gates or fences around and pertaining to such premises by
road vehicles, horses or cattle not belonging to or under the control of the Insured or any member
of the Insureds staff.
This Clause is Subject otherwise o the terms, conditions and exclusions of this Policy.
Extra Premium:
.
C122
Page 35 of 159
E123 Inland Transit Extension

It is hereby declared and agreed that subject to the Insured having paid the agreed additional
premium, this Policy is extended to cover the Property Insured whilst in the course of direct and
uninterrupted land transit anywhere in ______ from the time the Property Insured leaves the
factory, store, warehouse, or other initial point of shipment and covers thereafter continuously, in
due course of direct and uninterrupted land transportation, in or on conveyance owned or operated
by the Insured, or while in the custody of any common or contract carrier until the same are
delivered at store, warehouse or other point of destination within ______ including whilst such
conveyance is in course of transit by regular ferry within the territorial limit of ______.
Limit of indemnity shall not exceed ____________ per conveyance for any one occurrence and in
aggregate.
Extra Premium:
.
C123
,______
______
______
____________
Inland Transit Clause (HSBC)

It is hereby agreed and understood that this Policy shall be extended to cover loss, destruction or
damage to the insured property whilst in transit within the territorial limit of Guangdong.
Limit of indemnity for any one occurrence shall not exceed RMB82,800.00 per conveyance.
Inhibition Clause (Marsh)

The Sum Insured of the Policy are deemed to include the value of the Property Insured which is
damaged or destroyed in order to extinguish or inhibit the spread of fire or other catastrophe
insured against herein.
E124 Land-slip & Subsidence Clause
It is hereby agreed and declared that in case of loss of or damage to the property insured directly
caused by subsidence of the site or landslip, occurring within the Period of Insurance, this Policy
does not cover:
(A) loss or damage occasioned by or through or in consequence directly or indirectly of any of
the following occurrences:
Page 36 of 159
(1) Coastal erosion

(2) Heave
(3) Bedding down of structures or the settlement of made up ground within 5 year(s) of the
completion of such works
(B) loss of or damage to paths drives fences gates boundary and retaining walls caused by
subsidence and/or landslip.
(C) unless otherwise specifically insured, the cost of removal of subsidence and/or landslip debris
or the making good of the site following subsidence and/or landslip except in so far as is necessary
to repair the property insured.
(D) loss or damage directly occasioned by or through defective design or workmanship or the use
of defective materials.
(E) the first ____________ or ____________ of each and every loss, whichever is the greater, as
ascertained after the application of any condition of average.
WARRANTED:
(A) The Insured shall maintain the insured property in sound repair and shall take all responsible
steps to prevent damage from the perils covered hereby.
(B) The Insured shall notify the Company immediately:
(1) any excavations are commenced beneath, around or in the vicinity of the insured property.
In such event the Company shall have the right to vary or cancel the cover provided under this
Policy.
(2) of the operation of an insured peril affecting any part of the site (whether or not the insured
property is involved) or its nearby surroundings.
C124
()
()
()
________________________
()
()
Page 37 of 159
Leased Property Clause (AON)

It is hereby agreed and understood that this policy extends to indemnify any other party having an
interest in the property insured by virtue of and in accordance with the terms of a mortgage,
leasing, hiring or renting agreement, provided such property is not more specifically insured by
other policy.
E125 Malicious Damage Clause
this Policy shall be extended to cover loss of or damage to the insured property described in the
Schedule caused by the malicious act of any person, excluding loss or damage to the glass or the
outside sign fixed in the building or structure, nor any loss resulting from theft, except for house
breaking.
Extra Premium:
.
C125
Mortgagee Clause (AON)

It is hereby agreed that in the event of loss or damage the Company will pay the Mortgagees or
said Assignees to the extent of their interest and that this Insurance in so far as concerns the
interest therein of the Mortgagees or said Assignees only shall not be invalidated by any act or
neglect of the Mortgagor or Owner of the Property Insured nor by anything whereby the risk is
increased being done to upon or in any building hereby insured without the knowledge of the
Mortgagees or said Assignees provided always that the Mortgagees or said Assignees shall notify
the Company of the change of ownership or alteration or increase of hazard not permitted by this
Insurance so soon as any such change alteration or increase shall come to their knowledge and on
demand shall pay to the Company the appropriate additional premium from the time when such
increase of risk first took place.
And it is further agreed that whenever the Company shall pay the Mortgagees or said Assignees
any sum for loss or damage under this Policy and shall claim that as to the Mortgagor or Owner no
liability therefor existed the Company shall at once be legally subrogated to all rights of the
Mortgagees or said Assignees to the extent of such payment and the Mortgagees or said Assignees
shall do and execute all such further or other acts deeds transfers assignments instruments and
things as may be necessary or be reasonably required by the Company for the purpose of better
effecting such subrogation but such subrogation shall not impair the right of the Mortgagees or
said Assignees to recover the full amount of their claim.
Provided that as between the Company and the Mortgagor or Owner of the Property Insured
Page 38 of 159
nothing contained in this clause shall in any way constitute or be deemed to constitute any waiver
of or prejudice or affect any rights which the Company may have against the Mortgagor or Owner
of the Property Insured or lessen any obligations which may be imposed on the Mortgagor or
Owner of the Property Insured either by or under this Policy or by law and such rights and
obligations shall as between the Company and the Mortgagor or Owner of the Property Insured
remain in full force and effect.
Waiver of Subrogation against mortgage bank (HSBC)
Insurers hereby agree to waiver all rights of subrogation which they may have or acquire against
mortgage bank comprising the Insured.
Loss Payable and Notice of Cancellation Clause (HSBC)

By an Assignment of Insurance, the Insured assigned all of its rights, title and to this
policy/contract of insurance and the benefits and proceeds hereof, including all claims of
whatsoever nature and returns of premiums, to The Hongkong and Shanghai Banking Corporation
Limited, Shanghai Branch (hereinafter called the Lender).
The Lender shall be advised:
i. if any insurer under this policy/contract gives notice of cancellation of any insurance hereunder,
at 90 days before any such cancellation is take effect;
ii. of any proposed alteration in or expiry of any such insurance at least 14 days before such
alteration, termination or expiry is to take effect;
iii. promptly of any default in the payment of any premium or call; and
iv. promptly of any act or omission or any event of which any insurer hereunder has knowledge
and which might invalidate or render unenforceable in whole or in part such insurance.
No cancellation, termination or expiry of or alteration to any insurance hereunder shall be
effective as against the Lender unless the relevant provisions of this Clause have been complied
with in full.
The rights of the Lender under this policy/contract of insurance shall not be prejudiced by any act
or neglect of the Insured.
The Lender may, but shall not be required to, pay any insurance premiums unpaid by the Insured.
i. 90
ii. 14
iii.
iv.
Page 39 of 159
Minimization of Loss Expenses (AON)

It is agreed that in the event of actual damage (or imminent damage, with prior notice and
approval from the Insurers) to the Insured Property, Insurers will pay the costs necessary in
preventing, minimizing or reducing damage to the Insured Property.
Insurers' liability under this clause shall not exceed ___________ any one incident or series of
incidents arising out of one prime cause.
Minor Works (Sublimit: __________ each and every loss) (Marsh)
It is understand and agreed that this policy automatically includes minor alterations and/or
property in the course of construction and/or re-construction and/or additions and/or maintenance
and/or testing and commissioning and/or modifications and/or work carried out on of the facilities,
subject to a limit of ____________ each and every loss for the minor works.
Notwithstanding other terms and conditions herein, this Policy shall only pay in excess of more
specific insurance, if any, arranged in respect of minor works. The deductibles applicable to this
Policy shall not apply where the amount payable under such other herein but in no case shall any
loss be payable below the deductible amount.
Miscellaneous Unnamed Locations (Sub-limit: ______________ each and every loss)
(Marsh)
It is agreed and understood that the indemnity provided by this Policy shall automatically cover all
properties of the Insured in which it has an insurable interest within the territory limit of P. R.
China up to a limit not exceeding _______________ each and every loss.
Subject otherwise to all other terms, exceptions, provisions of this Policy.
New Replacement Value Clause (AON)
It is agreed and understood that otherwise subject to the terms, exclusions, provisions and
conditions contained in the Policy or endorsed thereon, where the Insured property is totally
destroyed or damaged beyond repair, the basis upon the amount payable under the Policy is to be
calculated shall be the full new replacement value of the item destroyed or damaged.
"New Replacement value" shall mean the costs, which would have to incur immediately before
destruction of or damage to an insured item for replacing the destroyed or damaged item by a new
item of a similar kind, capacity, size and quality.
Page 40 of 159
(AON)
E126 Off Premises Property Clause

It is hereby agreed that this Policy is extended to cover the property insured whilst being removed
from the described premises for repair, servicing or to avoid threatened damage by any peril
hereby insured against, for a period up to 60 days from the date of removal for an amount not
exceeding ____________.
The provision shall not apply to property removed for normal storage or for processing, nor to
property otherwise insured.
C126
____________
Offsite Storage Clause (Limit of Indemnity: RMB1,000,000 any one accident per location)
(HSBC)
It is agreed and understood that this Policy shall be extended to cover the property insured whilst being
stored elsewhere than at the site specified in the Schedule provided that the value of such offsite
property is included in the Sum Insured subject to the offsite premises within the territorial limit of
P.R.C
It is warranted that security guard(s) shall be kept on duty round the clock at the above premises, which
shall be fit in with the requirements of the property stored.
Outbuilding Clause Z024 building (AON)

It is agreed and understood that the insurance by each item under Buildings is understood to
include walls, gates and fences small outside building, extensions, annexes, exterior staircase, fuel
installations, steel or iron framework and tanks in the said premises and the insurance by each
item under Contents extends to include the contents of each outbuilding.
This Clause is subject otherwise to the terms, conditions and exceptions of this Policy
Pairs & Sets Clause (AON)
Where an insured item consists of articles in a pair or set, the Insured shall not be entitled to
recover more than the proportionate sum insured in respect of the particular part or parts which
may be lost or damaged.
Page 41 of 159
Portable Items and Movable Articles Extension Clause (AON)

In consideration of the payment of an additional premium, it is hereby agreed and declared that
notwithstanding anything within the Policy contained to the contrary, the insurance under the
Policy shall extend to cover any portable items and movable articles, such as portable computers
and mobile phones, which shall be lost and/or damaged by perils including theft, burglary or
robbery insured under the Policy whilst in habitable rooms e.g. hotels, offices or during business
travel within P. R. China, provided always that all claims should be supported by Police report.
Provided that this extension shall not cover the first RMB2,000 each and every loss.
E127 Professional Fees Clause
It is agreed and understood that subject to the Insured having paid the agreed additional premium
the Company shall indemnify the Insured for the architects, surveyors consulting engineers fees
necessarily incurred by the Insured in the reinstatement of the property insured consequent upon
its destruction or damage by peril hereby insured against but not any fees for the preparation of a
claim or estimate of loss, it being understood that the amount payable for such fees shall not
exceed the amount authorized under the scales of the related professional department regulating
such charges prevailing at the time of the destruction or damage. Provided that the total amount
recoverable shall not exceed ____________ of the Sum Insured.
Extra Premium:
.
C127
____________
E128 Public Authorities Clause

The insurance by Item ______ in the Schedule of this Policy extends to include such additional
cost of reinstatement of the destroyed or damaged property thereby insured as may be incurred
solely by reason of the necessity to comply with Building or other Regulations under or framed in
pursuance of any Ordinance, Law, Statute or with Bye-Laws of any Municipal or Local Authority,
Provided that:
1) The amount recoverable under this Extension shall not include
a) the cost incurred in complying with any of the aforesaid Regulations or Bye-Laws
(i) in respect of destruction or damage occurring prior to the granting of this Extension,
(ii) in respect of destruction or damage not insured by this Policy,
(iii) under which notice has been served upon the Insured prior to the happening of the
Page 42 of 159
destruction or damage,
(iv) in respect of undamaged property or undamaged portions of property other than foundations
(unless foundations are specifically excluded from the insurance by this Policy) of that portion of
the property destroyed or damaged,
b) the additional cost that would have been required to make good the property damaged or
destroyed to a condition equal to its condition when new had the necessity to comply with any of
the aforesaid Regulations or Bye-Laws not arisen,
c) the amount of any rate, tax, duty, development or other charge or assessment arising out of
capital appreciation which may be payable in respect of the property or by the owner thereof by
reason of compliance with any of the aforesaid Regulation or Bye-Laws.
2) The work of reinstatement must be commenced and carried out with reasonable dispatch and
in any case must be completed within twelve months after the destruction or damage or within
such further time as the Company may (during the said twelve months) in writing allow and may
be carried out wholly or partially upon another site (if the aforesaid Regulations or Bye-Laws so
necessitate) subject to the liability of the Company under this Extension not being thereby
increased.
3) If the liability of the Company under Item ______ of this Policy apart from this Extension
shall be reduced by application of any of the terms and conditions of this Policy then the liability
of the Company under this Extension (in respect of such item) shall be reduced in like proportion.
4) The total amount recoverable under Item ______ of this Policy shall not exceed the sum
insured thereby.
5) All the terms and conditions of this Policy except insofar as they may be hereby expressly
varied shall apply as if they had been incorporated herein.
C128
______
()
1.
2.
3.
4.
()
()
______
______
Page 43 of 159

Public Authorities Clause (HSBC)
It is agreed and understood that this Policy shall be extended to include such additional cost of
reinstatement of the destroyed or damaged property thereby insured as may be incurred solely by
reason of the necessity to comply with building or other regulations under or framed in pursuance
of any ordinance, law, statute or with bye-laws of any relative public authority provided that:
1. The Company shall not indemnify the Insured for such additional cost as may be incurred by
reason of the necessity to comply with building or other regulations under or framed in pursuance
of any ordinance, law, statute or with bye-laws of any relative public authority in case:
a. destruction or damage has occurred prior to the granting of this extension;
b. destruction or damage shall not be insured by this policy;
c. notice of rebuilding or demolishing has been served upon the Insured prior to the happening
of the destruction or damage;
d. work of rebuilding or demolishing or replacement of undamaged property other than
foundation shall be carried out.
2. The work of reinstatement must be commenced and carried out with reasonable dispatch and
in any case must be completed within twelve months after the destruction or damage or within
such further time as the Company may (during the said twelve months) in writing allow and may
be carried out upon another site (if the aforesaid regulations or bye-laws so necessitate) subject to
the liability of the Company under this extension not being thereby increased.
3. If the liability of the Company under this Policy apart from this extension shall be reduced by
application of any of the terms and conditions of this Policy then the liability of the Company
under this extension shall be reduced in like proportion.
4. The amount recoverable under any item of this Policy shall not exceed the sum
insured thereby.
E129 Reinstatement (Value) Clause
It is hereby agreed and understood that subject to the following special conditions the basis upon
which the amount payable in respect of each insured item (excluding stock of any kind) shown in
the Schedule is to be calculated shall be the reinstatement of the property lost, destroyed or
damaged.
For the purpose of this Clause, the word reinstatement shall mean:
a) the rebuilding or replacement of property damaged or destroyed, which, provided the liability
of this Company is not increased, may be carried out;
(i) in any manner suitable to the requirements of the Insured;
(ii) upon another site.
b) the repair or restoration of property damaged;
In either case to a condition equivalent to or substantially the same as but not better or more
extensive than its condition when new.
Special Conditions
1. The liability of the Company for the repair or restoration of property damaged in part only
Page 44 of 159
shall not exceed the amount which would have been payable had such property been wholly
destroyed.
2. If at the time of reinstatement the sum representing the cost which would have been incurred
in reinstating the damaged property is greater than the sum insured at the commencement of any
damage, the liability of the Company shall not exceed that proportion of the amount of the damage
which the said sum insured bears to the sum representing the cost of reinstating the damaged
property at that time, calculated as follows:
sum insured of the damaged property
amount of lossdeductible = amount payable
reinstatement value of damaged property
3. No payment beyond the market value which would have been payable in the absence of this
Clause shall be made:
(a) unless reinstatement commences and proceeds without unreasonable delay;
(b) until the cost of reinstatement shall have been actually incurred;
(c) if the property insured at the time of its loss destruction or damage shall be insured by any
other insurance which is not upon the identical basis of reinstatement set forth herein.
C129
()
()
()
()
()
Page 45 of 159
E130 Removal of Debris Clause

the Company shall indemnify the Insured for costs and expenses incurred in:
1. removing debris;
2. dismantling and/or demolishing;
3. shoring up or propping
of the portion or portions of the properties insured under this Policy destroyed or damaged by
perils insured by this Company provided that the total amount recoverable shall not exceed
____________ of the sum insured.
C130
___________%
E133 Sprinkler Leakage Damage Clause

this policy shall be extended to cover accidental water damage or water polluted damage to the
insured property described in the schedule of this policy caused by or resulting from leakage or
burst of or out of order of the automatic sprinkler system.
But the Company shall not be liable for the following water damage arising from:
1. explosion, earthquake, subterranean fire or heat resulting from fire,
2. severe cold when the buildings are left unused,
3. idle or discarded sprinkler system.
Deductible (any one accident):
Limit of Indemnity:
Extra Premium:
.
C133
Page 46 of 159
E134 Stock Declaration Clause

The premium paid by the Insured for stock described in the Schedule being provisional premium
shall be adjusted according to the provisions of this extension.
1. The Insured shall declare the value of the stock on the last day of each month reporting
period in writing to the Company within 10 days thereafter and if a declaration be not so given the
sum insured showed in the Schedule shall be deemed to be the declared value of the said stock.
2. If the value of the stock insured exceeds the sum insured showed in the Schedule, in event of
loss or damage, the Company shall settle the claim in the following manner.
sum insured
amount of lossdeductible = amount payable
actual value of stock
3. A 75% deposit premium on sum insured is to be charged at inception of this Policy and
adjusted on the average amount of stock to be declared upon expiration of this Policy. In the event
the actual premium is more than the deposit premium, the Insured shall pay the difference, if less,
the difference shall be repaid to the Insured. But no refund shall be more than 50% of the deposit
premium.
4. In the event of loss or damage under this Policy, the amount payable for such loss or damage
shall be automatically reinstated from the time of the happening and the Insured shall pay an
additional premium therefore calculated pro rata from the date of loss to the expiration of this
Policy.
C134
1.
2.
3. 75%
50%
4.
E135 Strike, Riots, Civil Commotion Clause

this policy shall be extended to cover loss of or damage to the insured property described in the
schedule due to strike, riot and civil commotion including the loss or damage caused by the act of
Page 47 of 159
any striker whilst occurring in the premises showed in the schedule and the loss or damage caused
by looting occurring at the time of strike, riot and civil commotion, excluding the loss or damage
arising from confiscation, commandeering or requisition or destruction by order of the
government or any relative public authority or by fire caused by strikers or malicious persons.
Extra Premium:
.
C135
E136 Subrogation Expenses Clause

It is hereby agreed that the expense of any subrogation shall be apportioned between the interests
concerned in the ratio of their respective recoveries as finally settled. If there should be no
recovery and proceedings are conducted solely by the Insurers, the expense thereof shall be borne
by the Insurers.
This Clause is Subject otherwise o the terms, conditions and exclusions of this Policy.
C136
E137 Television Receivers and External Aerials

It is hereby agreed that the insurance under this policy extends to include loss or damage (other
than loss or damage excluded under the general exceptions) of or to any television receivers and
any external television antennae, aerials, masts and aerial fittings the property of the insured or for
which he is responsible up to an amount not exceeding the sum insured stated below but excluding
1. Loss or damage to
(A) Atmospheric or climatic conditions
(B) Wear and tear, gradual deterioration or depreciation
(C) Mechanical or electrical breakdown or derangement
2. Loss of or damage to remote control units unless the television receiver is lost or damaged at
the same time.
3. Loss or damage
(A) Which is recoverable under any maintenance agreement
(B) Occurring during fitting adjustment, repair or dismantling
4. In respect of external antennae, aerials or aerial fittings Loss or damage due to hurricane,
cyclone, typhoon or windstorm.
Page 48 of 159
C137
E138 Temporary Protection Clause

It is hereby agreed and understood that in the event of any part of the Insured Property sustained
damage for which the Insurers are liable, the indemnity provided by this Policy is extended to
include such cost necessarily incurred in order to make reasonable repairs, temporary or
permanent, provided such repairs are confined solely to the protection of the property from further
damage, and provided further the Insured shall keep an accurate record of such repair
expenditures.
The total liability as afforded under this extension shall not exceed ____________ or
____________ of the loss whichever is the less and such limit shall form part of and not in
addition to the Total Sum Insured under the Policy.
Extra Premium:
.
C138
Cost of Temporary Protection Clause (Marsh)

The Insurance afforded by this Policy is extended to cover the cost of temporary protection
Page 49 of 159
reasonably necessary for the safety and protection of the premises pending repairs/replacement of
damage.
E139 Temporary Removal Clause
this Policy shall be extended to cover loss of or damage to the property insured in respect of the
perils hereby insured against whilst temporarily removed for cleaning, renovation, repair or other
similar purposes elsewhere on the premises stipulated in this Policy or to any other premises and
in transit thereto and therefrom by road, or rail in ______of P.R.C. Provided that:
1. The amount recoverable under this extension in respect of each item of this Policy shall not
exceed the amount which would have been recoverable had the loss occurred in that part of the
premises from which the property is removed nor, in respect of any loss occurring elsewhere than
at the said premises, ____________ of the sum insured by this Policy after deducting therefrom,
the value of any building or stock in trade hereby insured.
2. This extension does not apply to property if and so far as it is otherwise insured.
3. This extension does not apply to items covering stock and merchandise of every description.
The Company shall not indemnify the Insured for any loss occurring elsewhere than at the
premises from which the property is temporarily removed.
4. This extension does not apply to:
a) motor vehicles and motor chassis licensed for normal road use;
b) property held by the Insured in trust, other than machinery and plant.
Extra Premium:
.
C139
()
()
Tenants' Improvements Clause Z028 building (AON)

It is agreed and understood that the insured item "Building" includes tenants' fixed improvements,
Page 50 of 159
alterations and decorations for which the insured is legally responsible.

E140 Time Adjustment Clause (72 Hours)
It is agreed and understood that any loss of or damage to the insured property arising during any
one period of seventy two (72) consecutive hours, caused by storm, typhoon, tempest, flood or
earthquake shall be deemed as a single event and therefore to constitute one occurrence with
regard to the Excesses provided for herein, For the purpose of the foregoing the commencement of
any such seventy two (72) hour period shall be decided at the discretion of the Insured it being
understood and agreed, however, that there shall be no overlapping in any two or more such
seventy two (72)hour periods in the event of damage occurring over a more extended period of
time.
C140
, 72
,
72 , 72 ,
72
E141 Electrical Clause

The company does not cover loss of or damage to any electrical machine, apparatus or any portion
of the electrical installation insured hereunder resulting from over-running, excessive pressure,
short-circuiting, self-heating, arcing or leakage of electricity provided that this exclusion shall
(a) not apply to loss or damage caused by a peril insured against under this policy
(b) apply only to the particular electrical machine, apparatus or portion of the electrical
installation, so affected, and not to other machines, apparatus or electrical installations destroyed
or damaged by fire or explosion set up by such particular machine, apparatus or other electrical
installation.
C141
1
2
E142 Vehicle Load Clause

In the event of any of the Insureds vehicles being left loaded overnight whilst in and/ or on the
premises described in the specification hereto the Company will indemnify the insured in respect
of such load in the event of loss or damage by any of the perils insured against by this Policy.
Page 51 of 159
C142
E143 Portable Computers / Mobile Telephone Extension Clause

This policy is extended cover the loss of or damage to portable computers and Mobile telephone
belonging to the Insured and used by the Insured or their employees in the Premises or elsewhere
(subject to the Territorial Limit stated in the Schedule) when required for Business purposes, but
excluding:
a) Loss as a result of theft;
b) Loss as a result of drop;
c) Damage arising out of impact, bump.
In no case shall the maximum amount of indemnity under this extension for any one period of
insurance be up to 5% of Sum Insured or USD10,000.00, whichever is less shall prevail.
C143 /
5% USD10,000.00
Loss &/or Damage to Laptop in Premises (Limit: RMB20,000 any one accident and
RMB100,000 in aggregate) (Marsh)
This policy is extended cover the loss of or damage to portable computers and Mobile telephone
belonging to the Insured and used by the Insured or their employees in the Premises
In no case shall the maximum amount of indemnity under this extension for any one period of
insurance be up to RMB20,000.00 any one accident and RMB100,000.00 in aggregate.
Works of Art (RMB50,000 any one article and RMB500,000 in aggregate) (Marsh)
Notwithstanding anything contained herein to the contrary of Property Excluded under the All
Risks Property Damage Form, it is noted & agreed that works of art are to be covered subject to
RMB50, 000.00 anyone article and RMB500,000 in aggregate for the period of insurance.
( RMB50,000 RMB500,000 ) (Marsh)
RMB50, 000
RMB500,000
Page 52 of 159
1/50

RMB1,000,000.00
Nominated Loss Adjusters Clause

It is hereby declared and agreed that in the event of the estimated aggregate claim for any one loss
exceeds RMB 1million, the Parties hereby nominated GAB Robins to the exclusive loss adjuster to
manage the entire appraisal under the terms and conditions according to this policy.
Terrorism Exclusion (NMA2920)
Notwithstanding any provision to the contrary within this insurance or any endorsement thereto it
is agreed that this insurance excludes loss, damage, cost or expense of whatsoever nature directly
Page 53 of 159
or indirectly caused by, resulting from or in connection with any act of terrorism regardless of any
other cause or event contributing concurrently or in any other sequence to the loss.
For the purpose of this endorsement an act of terrorism means an act, including but not limited to
the use of force or violence and/or the threat thereof, of any person or group(s) of persons,
whether acting alone or on behalf of or in connection with any organization(s) or government(s),
committed for political, religious, ideological or similar purposes including the intention to
influence any government and/or to put the public, or any section of the public, in fear.
This endorsement also excludes loss, damage, cost or expense of whatsoever nature directly or
indirectly caused by, resulting from or in connection with any action taken in controlling,
preventing, suppressing or in any way relating to any act of terrorism.
If the Underwriters allege that by reason of this exclusion, any loss, damage, cost or expense is not
covered by this insurance the burden of proving the contrary shall be upon the Assured.
In the event any portion of this endorsement is found to be invalid or unenforceable, the remainder
shall remain in full force and effect.
1
2
6
6
UNOCCUPYING CLAUSE (Houlder)

It is understood and agreed that the insurance by this Policy extends to cover for loss or damage
while the building insured or containing the insured property becomes unoccupied and so remains
Page 54 of 159
for a period of more than 30 days.
Page 55 of 159
/Machinery Breakdown
E701 Strike, Riots, Civil Commotion Clause

this policy shall be extended to cover loss of or damage to the insured property described in the
schedule due to strike, riot and civil commotion including the loss or damage caused by the act of
any striker whilst occurring in the premises showed in the schedule and the loss or damage caused
by looting occurring at the time of strike, riot and civil commotion, excluding the loss or damage
arising from confiscation, commandeering or requisition or destruction by order of the
government or any relative public authority or by fire caused by strikers or malicious persons.
Extra Premium:
.
C701
E702 Automatic Reinstatement of Sum Insured Clause

It is agreed and understood that in the event of loss or damage to the insured property described in
the Schedule of this Policy, the amount payable for such loss or damage shall be automatically
therefore calculated pro rata from the date of loss to the expiration of this policy.
C702

the Company shall indemnify the Insured for costs and expenses incurred in:
1. removing debris;
3. shoring up or propping
of the portion or portions of the properties insured under this Policy destroyed or damaged by
perils insured by this Company provided that the total amount recoverable shall not exceed
Page 56 of 159
____________ of the sum insured.

C703

holidays and express freight(excluding air-freight).
same proportion.
Limit of indemnity for any one occurrence:
Limit of Indemnity in Aggregate:
Extra Premium:
.
C704
E705 Airfreight Clause

insurance shall be extended to cover extra charges for airfreight.
Provided further that the maximum amount payable under this Endorsement in respect of
airfreight shall not exceed the amount stated below during the period of insurance.
same proportion.
Page 57 of 159
Deductible:
Limit of Indemnity (any one occurrence):
Aggregate Limit of Indemnity:
Extra premium:
C705
20

the Company shall indemnify the Insured for the architects, surveyors consulting engineers fees
necessarily incurred by the Insured in the reinstatement of the property insured consequent upon
its destruction or damage by peril hereby insured against but not any fees for the preparation of a
claim or estimate of loss, it being understood that the amount payable for such fees shall not
exceed the amount authorized under the scales of the related professional department regulating
such charges prevailing at the time of the destruction or damage. Provided that the total amount
recoverable shall not exceed ____________ of the Sum Insured.
Extra Premium:
.
C706
E707 Overhaul of Electric Motors

(above 750 kw for motors with 2 poles and above 1,000 kw for motors with 4 and more poles)
conditions contained in the Policy or endorsed thereon, the following shall apply to this insurance
in respect of
Item(s) No(s)
Contained in the specification of the Policy;
The Insured shall arrange at his own expense an overhaul (the Insured shall inform the Insurers of
Page 58 of 159
such an overhaul in good time so that the Insurers expense) in a completely openedup state
after 8,000 hours of operation or after 500 startups or at least after two years following the least
overhaul. New electric motors shall be overhaul after 2,000 hours or at least after one year of
operation. The Insured shall supply the Insurers with reports on this overhaul.
These provisions shall apply for an extension of the period between overhauls. Such extension
shall be granted if in the opinion of the Insurers the risk is not aggravated thereby.
If the Insured fails to comply with the requirements of this Endorsement, the Insurers shall be free
from all liability for loss or damage caused by any circumstance which could have been detected
had an overhaul taken place.
C707
750KW 1000KW
8000 500
2000
E708 Overhaul of Steam, Water and Gas Turbines and TurboGenerator Sets
It is agreed and understood that otherwise subject to the terms, exclusions, provision and
conditions contained in the Policy or endorsed thereon, the following shall apply to this insurance:
The Insured shall arrange at his own expense an overhaul in a completely openedup state of the
whole turboset or parts there of at the following intervals and shall inform the Insurers of such
an overhaul at least two weeks in advance so that the Insurers representatives to be present during
the overhaul at the insurers own expense.
a. Steam turbines and turbo generator sets that operate predominantly under continuous load
conditions and are provided with comprehensive instrumentation in line with modern
technological standards which allow full control of the operational state of the set to be
overhauled at least every four years.
This refers to item(s) No(s)
Contained in the specification of the Policy.
b. Steam turbines and turbo generator sets which do not fall into the above category to be
overhauled at least every three years.
This refers to item(s) No(s)
Contained in the specification of the Policy.
c. Water turbines and turbo generator sets to be overhauled in accordance with manufacturers
recommendations.
These periods shall commence as from the first start of operation or last overhaul of the given
turbo generator set and both parties shall jointly decide on any action to be taken.
The Insured may apply for an extension of the period between overhauls. Such extension shall be
Page 59 of 159
granted if in the opinion of the insurers the risk is not aggravated thereby.
If indemnifialbe damage to a machine occurs after the respective period mentioned under a to d
has been exceeded, the Insurers shall indemnify only for the extra costs of repair excluding the
costs of dismantling, reassemble and similar costs because an overhaul has to be carried out at this
stage in any case. The costs of dismantling, reassemble and similar regular overhaul related
work are to be considered as costs of overhauling.
If the Insured fails to comply with the requirements of this Endorsement, the Insurers shall be free
of all liability for loss of damage caused by any circurmstance that could have been detected had
an overhaul taken place.
C708
E709 Serial Losses

It is agreed and understood that, otherwise subject to the terms, exclusions, provisions and
conditions contained in the Policy or endorsed thereon, the following clause shall apply to this
insurance:
Loss or damage due to faulty design, defective material or casting, bad workmanship other than
faults design shall be indemnified after applying the Policy deductible for each loss according to
the following scale:
100% of the first loss
% of the
loss
% of the
loss
Page 60 of 159
% of the
loss
% of the
loss
Further losses shall not be indemnified.
(The percentages have to be fixed in accordance with the condition of each individual component,
eg depending on the number of items at risk.)
C709
100

E710 Delay in Repair Under The Loss of Profit

conditions contained in the Policy or endorsed thereon, the Insurers shall, within the agreed
indemnify period limit, be liable for a period nor exceeding four weeks for any loss of gross
profits due to delay in repair or replacement of damaged machines of foreign make, where such
delay results from import or export restrictions, customs regulations, currency restrictions or any
other regulations imposed by any government or public authority.
C710
Boiler and Pressure Vessel Explosion Clause (HSBC)
It is hereby agreed that this Policy shall be extended to cover accidental loss or
damage to boilers, pipes, or other pressure vessel machines or apparatus themselves
due to their explosion, provided that the Insured shall have taken reasonable
precautions to comply with all requirement relating to inspection that apply to these
boilers, vessels or apparatus from which the explosion arises.
DETERIORATION OF FOOD STOCK CLAUSE (Marsh)
Notwithstanding anything herein contained to the contrary this policy covers loss of or damage to
the property thereby insured which may be caused by change of temperature resulting from the
total or partial destruction of disablement of the refrigerating plant by perils as within insured,
subject otherwise to the terms exceptions and conditions of this policy.
Page 61 of 159
It is noted and agreed that maximum limit of liability of the Insurer under any one occurrence and
in aggregate in respect of this extension only is RMB100,000 which forms part of but not in
additional to the total sum insured for property insured under stock.
Full Replacement Value (Marsh)
conditions contained in the policy or endorsed thereon, where the Insured is totally destroyed or
damaged beyond repair, the basis upon the amount payable under the Policy is to be calculated
shall be the full replacement value of the item destroyed or damaged.
Replacement value shall mean the costs which would have to incur immediately before
LOSS OR DAMAGE TO SURROUNDING PROPERTY (Marsh)
It is agreed and understood that otherwise subject to the terms, exclusions provisions and
conditions contained in the Policy or endorsed hereon, this Insurance shall be extended to include
any sudden and unforeseen physical loss of or damage to property of the Insured other than his
own plant, machinery and apparatuses insurable under the Policy.
Provided that the total amount recoverable under this extension shall not exceed USD 100,000.Pollutant Cleanup and Removal Clause (Marsh)
Notwithstanding the provision of the Pollution Exclusion in this Policy or any provision
respecting seepage and/or pollution and/or contamination, and/or debris removal and/or clean up
in the Policy to which this Endorsement is attached, in the event of direct physical loss or damage
to the property insured hereunder, this Policy, subject otherwise to its terms, conditions and
limitation, including but not limited to any applicable deductible, also insures:
1. expenses incurred in removal of materials hereunder debris of the property insured hereunder
destroyed or damaged from the premises of the Insured; and/or
2. cost of clean up, at the premises of the Insured, made necessary as a result of such loss or
damage; and/or
3. cost of removal or demolition of any portion of the insured property no longer useful for the
purpose for which it was intended.
Provided that this Policy does not insure against the costs of decontamination or removal of water,
soil or any other substance on or under such premises.
No liability shall exist under this provision unless such expenses are reported to the Insurer within
180 (one hundred eighty) days from the date of direct physical loss or damage.
REMOVAL OF DEBRIS CLAUSE (Limit: 10% of Sum Insured) (Marsh)
This Policy shall also apply to costs and expenses necessarily incurred by the Insured with the
consent of the Insurer in:
Page 62 of 159
(a)
(b)
(c)
removing debris;
dismantling and/or demolishing;
shoring up or propping;
of the portion or portions of the property insured destroyed or damaged by fire or by any other
peril hereby insured against, including the undamaged portion or portions of such destroyed or
damaged property, if any, subject to a maximum limit of Ten (10%) percent of total sum insured
which shall form part of and not in addition to the total Sum Insured but only to the extent to
which the sum insured on property in respect of any item is not otherwise exhausted.
REPLACEMENT VALUE CLAUSE (Marsh)
conditions contained in the Policy or endorsed thereon and subject to the Insured having paid the
agreed extra premium, where an insured item is totally destroyed or damaged beyond repair, the
basis upon which the amount payable under the Policy is to be calculated shall be the full
replacement value of the item destroyed or damaged.
"Replacement value" shall mean the costs which would have incurred immediately before
Provided that
-
the replacement work shall be commenced and carried out with reasonable dispatch,
otherwise no payment shall be made beyond the amount which would have been payable
under the Policy if this Endorsement had not been incorporated therein;
no payment shall be made beyond the amount which would have been payable under the
Policy if this Endorsement had not been incorporated therein, if at the time of destruction
of or damage to the insured item such destruction or damage is covered by any other
insurance effected by or on behalf of the Insured, which is not based on reimbursement of
the full replacement value;
the Item involved shall be no older than

years at the time of the loss, calculated from
the year of construction indicated in the list of machinery attached to the insurance
contract; but no payment shall be made beyond the amount which would have been
payable under the Policy if this Endorsement had not been incorporated therein, if at the
time of the destruction of or damage to the insured item the manufacturer has ceased
production of the respective model or if such model is no longer available as a new item
from the manufacturer's or supplier's stock;
Page 63 of 159
the amount payable for the replacement of the destroyed or damaged item shall not
exceed the sum insured set opposite to that item in the schedule of the Policy.
/BUSINESS INTERRUPTION
E301 Automatic Coverage Clause

It is hereby understood and agreed that in the event that the actual Gross Profit of the Insured as
defined in this policy differs from the Sum Insured set forth in the Schedule to this Policy (or such
other amounts as may be substituted therefor by memorandum signed by or on behalf of the
Insurers), the said Sum(s) Insured are automatically increased or decreased accordingly.
C301
Accumulated Stocks (AON)

In adjusting any loss account shall be taken and an equitable allowance made, if any shortage of
turnover due to the damage is postponed by reason of the turnover being temporarily maintained
from accumulated stocks of finished goods in warehouses and/or depots
Additional Increase in Cost of Working (AON)
The additional expenditure (including cost of moving to and from and the additional rent of
temporary premises, any compensation or premium necessary to obtain use of same, additional
rates and taxes thereon and expenses incurred in installing and/or hiring such furniture, fixtures
and fittings may be required to render said premises suitable for occupation as stated in schedule;
additional cost in respect of lighting, heating and water; additional staff and overtime and
allowance for meal to existing staff; additional cost of obtaining, owing to the damage, the
necessary information for the replacement of all deeds, documents, plans, drawings,
specifications, valuations, card indices and books of account) reasonably incurred in order to
minimize any interruption or interference as aforesaid with the business during the indemnity
period.
Additional Cost of Working (AON)
It is hereby agreed and understood that this Policy shall extend to cover the additional expenditure
necessarily and reasonably incurred during the Indemnity Period in consequence of the Damage in
Page 64 of 159
respect of increase in cost of working for the purpose of avoiding or diminishing the reduction in
Turnover.
Auditors fees (AON)
The Insurance on auditors charges is limited to the reasonable charges payable by the Insured to
their Auditor(s) for producing and certifying any particulars or details contained in the Insureds
books of accounts or other business books or documents or such other proofs.
Civil Authorities (Marsh)
This insurance is extended to include the actual loss as covered hereunder during the period of
time, not exceeding four consecutive weeks, when, as a direct result of the peril(s) insured against,
access to any insured premises is prohibited by order of civil authority.
(Marsh)
E302 Closure of Premises/Facilities Clause

It is hereby agreed that subject to the conditions of this insurance, loss resulting from interruption
of or interference with the business in consequence of closure of premises/facilities by order of the
Health Authorities due to food poisoning/contamination irrespective of whether the premises or
property of the Insured therein shall be damaged or not, shall be deemed to be loss resulting from
damage to the property used by the Insured at the premises.
C302 /
Costs of Compiling Records and Claims Preparation Subject to Limit RMB100,000

(AON)
This Insurance is extended to include
(a) the cost of compiling records but only for the value of the materials used together with the
costs for clerical labour expanded in producing such records and
(b) reasonable charges incurred by the Insured for producing and certifying any information as
may be required by the Company under the terms of the Policy
This clause is subject to a maximum limit of RMB100,000. any one accident and in the aggregate
Page 65 of 159
which is part of and not in addition to the Total Sum Insured of this Policy and shall be payable
only if such loss is admitted by the Company as a valid claim.
(: RMB20,000) (AON)
1
2
20,000
Claims Preparation Expenses Clause (HSBC)

The limit of liability under this item is limited to all costs and expenses as may be reasonably
incurred by the Insured for the proportion, presentation, negotiation, certification and/or
justification of claims made under the Insureds property insurance insofar as such costs are not
more specifically insured or recoverable under any other policy of insurance.
Salaries, wages and overheads of the Insureds employees shall be deemed to be part of such cost
and expenses.
E303 Departmental Clause

It is hereby understood and agreed that if the business be conducted in departments the
independent trading results of which are ascertainable, the provisions of clauses (a) and (b) of Item
1 of SPECIFICATION of this Policy shall apply separately to each department affected by the
damage, except that if the Sum Insured by Item 1 be less than the aggregate of the sums produced
by applying the rate of Gross Profits (as defined) for each department of the business (whether
affected by the damage or not) to the relative Annual Turnover thereof (or to a proportionately
increased multiple thereof where the maximum indemnity period exceeds twelve months) the
amount payable under Item No.1 shall be proportionately reduced.
C303
E304 Inclusion of All Turnover Clause

It is hereby understood and agreed that if during the Indemnity Period goods shall be sold or
services shall be rendered elsewhere than at the Premises for the benefit of the business either by
Page 66 of 159
the Insured or by others on their behalf the money paid or payable in respect of such sales or
services shall be brought into account in arriving at the Turnover during the Indemnity Period.
C304
Inclusion of All Turnover Clause (AON)

If during the indemnity period goods shall be sold or services shall be rendered elsewhere than at
the premises for the benefit of the business either by the Insured or by others on their behalf, the
money paid or payable in respect of such sales or services shall be brought into account in arriving
at the Turnover during the indemnity period.
Interdependency Clause (AON)
This Policy is extended to cover insured losses arising from business interruption of an insured
operation as result of a property damage loss having occurred at another insured premises.
(AON)
Interdependency Extension (Geographical Limit: China) (Marsh)

This policy is extended to cover the actual loss sustained by the Insured during a period of
interruption directly resulting from physical loss or damage of the type insured against by this
policy to property of the type not otherwise excluded by this policy at another [Insured Name]
location located anywhere in the China. The limit of liability of this policy remains applicable to
this extension.
E305 Loss of Book Debts Clause
It is hereby agreed and understood that within the respective limits of sums insured under this
Policy, in the event of the records of accounts receivable kept on the premises being lost,
destroyed or damaged by any of the perils insured against under this insurance the Company will
indemnify the Insured in respect of:
a) all sums due to the Insured from customers, provided the Insured is unable to effect
collection thereof as a direct result of such loss,
b) any collection expense in excess of normal collection cost and made necessary because of
such loss,
c) auditors charges necessarily and reasonably incurred in substantiating any claim under this
Page 67 of 159
extension.
Provided that the Insured can substantiate the loss by documentary evidence by an Auditor and the
Company's maximum liability under this extension shall not exceed
.
This extension applies only with respect to loss of or damage to records of accounts receivable and
occurring during the period of insurance.
C305
2
3
_____________
E306 Monthly Payment on Account

It is hereby agreed that payment on account will be made to the Insured monthly during the
Indemnity Period if desired.
C306
E307 Murder, etc. Clause

It is hereby agreed that the termthe damageas described in this Policy shall carry the
following meaning:
1. The cancellation of or inability to accept bookings for accomodation at the premises as a result
of an outbreak of an infections or contagious disease occurring at the premises;
2. Murder or suicide occurring at the premises;
3. Injury or illness sustained by any guest arising from or traceable to foreign or infections matter
in food or drink provided at the premises;
4. Closing of the whole or part of the premises by order of a competent public authority
consequent upon defects in the drains and other sanitary facilities at the premises.
In respect of each and every occurrence of the damage giving rise to a claim under this Clause, the
Company shall not be liable for the first three days of such loss.
It is a condition precedent to any liability of the Company that the Insured shall see to it that
everything is fit for its intended use and shall exercise due diligence in making the premises free
from encountering the aforesaid contingencies.
Page 68 of 159
C307
1
2
3
Murder, Suicide or Disease or Defective Sanitation Clause (AON)

It is hereby agreed that this Policy is extended to include loss resulting from interruption of or
interference with the business in consequence of the following contingencies:
-- murder or suicide occurring at the premises;
-- injury or illness sustained by any guest arising from or traceable to foreign or infectious matter
in food or drink provided at the premises;
-- an outbreak of an infectious disease and the prevention of the spread of infectious diseases
regulations - PRC at the premises, provided that the location of the insured premises has been
declared to public to be Epidemic Zone by the local authorities or WHO.
-- closing of the whole or part of the premises by order of public authority consequent upon
defects in the drains and other sanitary arrangements at the premises.
Subject otherwise to the terms and conditions of this Policy.
E308 New Business Clause
For the purpose of any claim from damage occurring before the completion of the first years
trading of the business at the premises, the terms rate of gross profit, annual turnover,
standard turnover and rate of wages shall bear the following meanings and not as within
stated:
Rate of gross profit: the rate of gross profit earned on the turnover during the period between the
date of the commencement of the business and the date of the damage.
Annual turnover: proportional equivalent for a period of eleven months of the turnover realized
during the period between the commencement of the business and the date of the damage.
Standard turnover: the proportional equivalent for a period equal to the indemnity period of the
turnover realized during the period between the commencement of the business and the date of the
damage.
Rate of wage: the rate of wages to turnover during the period between the date of the
commencement of the business and the date of the damage.
Page 69 of 159
C308
11
E309 Premium Adjustment Clause

It is hereby declared and agreed that if the Insured declares at the latest six months after the expiry
of any policy year that the Gross Profit earned by the Insured during the accounting period of
twelve months most nearly concurrent with any period of insurance as certified by the Insureds
auditors was less than the Sum Insured thereon, a pro rata return of premium not exceeding one
third of the premium paid on such Sum Insured for such period of insurance shall be made in
respect of the difference.
If any accident has occurred giving rise to a claim such return of premium shall be made in respect
only of so much of the said difference as is not due to such accident.
C309
E310 Prevention of Access Clause

It is hereby agreed that loss as insured by this Policy resulting from interruption of or interference
with the Business in consequence of the damage (as within defined) to property in the vicinity of
the Premises which shall prevent or hinder the use thereof or access thereto, whether the premises
or property of the Insured therein shall be damaged or not, shall be deemed to be loss resulting
from damage to property used by the Insured at the premises.
C310
Page 70 of 159
E311 Public Utilities Extension Clause

It is hereby agreed that loss as insured by this Policy resulting from interruption of or interference
with the Business carried on by the Insured at the premises described within in consequence of
electricity, gas or water supply at the terminal ends of the electricity service feeders/Gas
Works/Water Works from which the Insured obtained electric supply/Gas/Water at the said
premises directly due to the damage (as within defined) to property at an Electricity Station or
Sub-station of Public Electricity Supply Undertaking from which the Insured obtained electric
supply/Gas/Water shall be deemed to be loss resulting from the damage to property used by the
Insured at the premises.
Provided, however, that the Company shall not be liable for any loss occasioned by the deliberate
act of the Government, Municipal or Local Authority or Supply Authority not performed for the
sole purpose of safeguarding life or protecting any part of the supply undertakings system or by
the exercise by any such authority of its power to withhold or restrict or ration supply not
necessitated solely by the damage to the supply undertakings generating or supply equipment by
an insured peril.
For the purpose of the above extension, the Indemnity Period in respect of each damage or of a
series of damages consequent on or attributable to one source or original cause shall be as follows:
The period beginning with the occurrence of the damage and ending not later than sixty days
thereafter during which the result of the business shall be affected in consequence of the damage.
Provided that the Company shall not be liable for any loss unless the duration of each such failure
exceeds twenty-four hours and the Company shall not be liable for any loss for the first twentyfour hours of each such failure.
In any action, suit or other proceedings where the Company alleges that by reason of the
provisions of this condition any loss or damage is not covered by this insurance, the burden of
proving that this loss or damage is covered shall be upon the Insured.
C311
Page 71 of 159
Failure of Public Utilities (Marsh)

It is hereby declared and agreed that subject to the conditions of this policy, loss as insured by this
Policy resulting from interruption of or interference with the Business in consequence of Damage
to property, either at or away from the Premises, belonging to or under the control of suppliers of
communication services, electricity, gas, natural gas, steam, water or sewerage reticulation control
systems, overhead or underground or aboveground reticulation cables or pipelines associated
therewith shall be deemed to be loss resulting from Damage to property used by the Insured at the
Premises.
The Policy shall not be liable for any loss insured unless the failure of supply of utilities exceeds a
franchise waiting period of 24 consecutive hours. The Insurers liability shall be subject to the
application of the Business Interruption Time Deductible stated in the Schedule.
This clause is subject otherwise to the terms, conditions and exclusions of this Policy
(Marsh)
E312 Professional Accounts Clause

It is understood and agreed that any particulars or details contained in the Insureds books or
account or other business books or documents which may be required by the Insurers for the
purpose of investigating or verifying any claims hereunder may be produced by professional
accountants if at the time they are regularly acting as such for the Insured, and their report shall be
prima facie evidence of the particulars and details to which such report relates.
Page 72 of 159
The Insurers will pay to the Insured the reasonable charges payable by the Insured to their
professional accountants for producing such particulars or details or any other proofs, information
or evidence as may be required by the Insurer and for reporting that such particulars or details are
in accordance with the Insureds books of account or other business books or documents.
Provided that, after the application of all the terms, conditions and provisions of this Policy, the
liability of the Insured under this Policy shall not exceed _____________ .
C312
0 _______________
E313 Reinstatement Clause

It is hereby agreed and understood that in consideration of the insurance not being reduced by the
amount of any loss, the sum Insured may be reinstated by the Insured subject to an extra premium
therefore calculated pro rata on the amount of the loss from the date thereof to the date of expiry
of the Period of Insurance.
C313
E314 Uninsured Standing Charges Clause

It is hereby agreed and understood that if any standing charges of the Business be not insured by
this Policy (having been deducted in arriving at the Gross Profit as defined herein) then in
computing the amount recoverable hereunder as Increase in Cost of Working that proportion only
of the additional expenditure shall be brought into account which the Gross Profit bears to the
Sum of the Gross Profit and the uninsured standing charges.
C314
E315 Suppliers* and/or Customers* Premises Extension(s)

It is hereby agreed and understood that loss resulting from interruption of or interference with the
Business in consequence of damage as herein defined to property at any situation in China, or in
Page 73 of 159
the vicinity of any such situation, in association with any supplier and/or customer shall be
deemed to be loss resulting from Damage to property used by the Insured at the Premises.
It is also understood and agreed that:
(a) A supplier's premises is any premises from which the Insured obtains supplies of commodities,
materials, components, goods or services (other than those services referred to in the Public
Utilities Extension); the premises of processors and the premises of manufacturers of plant and
equipment for the Insured.
(b) A customer's premises is any premises to which the Insured supplies or provides commodities,
materials, components, goods or services.
C315
Major Suppliers and/or Customers Premises Extension (cover restricted to first tier
supplier / customer only, Sublimit: RMB10,000,000 each and every loss ) (Marsh)
Subject to the Sub Limit of Liability as stated in the Schedule, loss as insured by this Policy
resulting from interruption of or interference with the Business in consequence of Damage to
property at or in the vicinity of any situation in the Peoples Republic of China of any of the
Insureds Suppliers or Customers shall be deemed to be loss resulting from Damage to property
used by the Insured at the Premises for the purpose of the Business.
For the purpose of this extension, it is understood and agreed that:
(a) a suppliers premises is:
(i) any premises from which the Insured obtains supplies of materials, components, goods or
services (other than those services referred to in the Utilities Extension);
(ii) the premises of any processors or sub-contractors of whatsoever kind and description
whose services may be utilized by the Insured;
(b) a customers premises is any premises to which the Insured supplies or provides any
materials, components, goods or services.
Page 74 of 159
Output Option Clause (Marsh)

In the event of a claim under this policy, adjustment may be based on turnover or output or
whatever other index of business activity affords the most equitable result and except in the
definition of Turnover. The word Turnover wherever used in this policy shall be read as
Turnover or Alternative Index. Output shall mean the sale value of goods manufactured by or
sold by the Insured in the course of the Business.
REBATE OF PREMIUM CLAUSE (Marsh)
In the event of the gross profit earned during the financial year most nearly concurrent with any
period of insurance and certified by the insured's auditors, being less than the respective sum
insured thereon a pro-rata return of premium not exceeding 50% of the Premium paid on such sum
insured for such period of insurance will be made in respect of the difference. If any damage shall
have occurred, giving rise to a claim under this policy, such return shall be made in respect only of
so much of the difference as is not due to such damage.
UNNAMED SUPPLIERS/CUSTOMERS EXTENSION (Marsh)
It is hereby agreed that loss as defined in the policy occurring at premises other than those
occupied by the insured but within the territorial limits of the policy, shall be deemed to be loss
resulting from damage to property used by the insured at the premises.
Provided that after the application of all other terms, provisions and conditions of the policy the
Company's total liability under this extension shall not exceed 25% of the Sum Insured under each
item in the Policy Schedule and 10% for any one supplier.
WAIVER OF EXCESS CLAUSE (Marsh)
It shall not be a condition precedent to liability in respect of interruption or interference in
consequence of destruction or damage by any peril(s) insured by this policy that payment shall be
made or liability admitted under this insurance covering the interest of the insured in the property
at the premises against such destruction or damages if no such payment shall have been made nor
liability admitted solely owing to the operation of a proviso in such insurance excluding liability
for loss below a specified amount.
Provided always that all the provisions and conditions of this policy shall apply to the insurance
by this Extension except insofar as they may hereby be varied.
/ PUBLIC LIABILITY
E501 Act of Terrorism Extension Clause
It is understood and agreed that subject to the Insured having paid the agreed additional premium,
this Policy shall be extended to cover the Insureds liability for claims made against the Insured
for the bodily injury of and/or property damage to any third party at the specified premises directly
Page 75 of 159
caused by any terrorist or terrorism organization.

Extra Premium:
C501
E502 Additional Insured Clause

It is declared and agreed that if the Named Insured enters into a contract with any person or
organization which requires that such person or organization be included hereunder, such
insurance as is afforded by this policy Bodily Injury Liability, Personal Injury Liability and
Property Damage Liability applies to such person or organization as an Additional Insured, but
only with respect to liability arising out of premises owned by or operations performed for said
person or organization by the Named Insured.
The Insurance afforded is subject to the following provisions:
(1) The Insurance does not apply to liability assumed by such additional insured under any
contract or agreement.
(2) In no event shall this insurance provide limits in excess of the limits of liability stated in the
policy.
(3) The limits of liability shall not be cumulative with the limits of liability expressed in the
contractual liability coverage part of the policy.
C502
()
()
()
Additional Insured-Employees; (AON)

It is hereby agreed and understood that this Policy is extended to cover death or bodily injury to
any third party or loss of or damage to the property of the third party caused by accident or
negligence of the Insured's employee whilst being engaged in the work connected with the
Insured's business happening on or in the vicinity of the premises stated in the Policy during the
period of this Policy. Provided that the indemnity limit shall not greater than ______.
Page 76 of 159
Subject otherwise to the terms, exceptions and conditions of this Policy

E503 Advertising Signs and Decorations Liability Clause
It is hereby understood and agreed that this Policy extends to indemnify the Named Insured for
claims in respect of bodily injury or damage to property arising solely out of the ownership,
maintenance or use of any neon/advertising signs and decorations located on, at or away from the
Insureds premises anywhere in ______, subject to the following additional provisions.
The insurance does not apply to any neon/advertising signs and decorations in the course of
erection, maintenance or repair conducted by or on behalf of the Named Insured.
Warranted that the Named Insured shall comply with all statutory enactments by-laws and
regulations and shall at all times ensure that the neon/Advertising Signs and Decorations
installations are kept in a proper state of repair and if any defect be discovered the Named Insured
shall forth-with cause such defect to be made good and shall in the meantime cause such
additional precautions to be taken for the prevention of accident as the circumstances may require
and no alteration in the position of the Signs shall be made without the consent of the Company.
So far as is reasonable practicable no alteration or repair shall without the consent of the Company
be made to the said Neon/Advertising Signs and Decorations after any accident has occurred in
connection therewith until the Company shall have had an opportunity of inspecting same.
C503
______
Advertising Signs & Decorations (Marsh)

for accidental bodily injury or property damage to any third party resulting from the Insureds
advertising signs, neon signs, decorations and the like in or about the premises.
It is Warranted that the Insured shall see to it that regular inspection and maintenance of such
property shall be carried out by qualified persons.
This clause is subject otherwise to the terms, conditions and exceptions of this Policy.
Page 77 of 159
E504 Automatic Cover for New Location Clause

It is hereby understood and agreed that the indemnity provided by this Policy shall apply
automatically and shall include the Insureds legal liability for claims made against the Insured
from or arising out of all new or additional property as described in the Schedule from the time
that construction or acquisition of such property is completed or that title to such property is
transferred to the Insured or the Insured becomes responsible for such property (unless more
specifically insured). It is understood that the Insured shall advise the Company of all such new or
additional property not later than 15 days from the acquisition of such property and a pro rata
additional premium will be charged.
C504
All Plant, Machinery and Equipment (including Lifts, Hoists and Cranes) (AON)
It is hereby agreed and declared that notwithstanding anything contained herein to the contrary,
the insurance under this policy shall be extended to indemnify the Insured against liability in
respect of bodily injury to or death of or loss of property of any third party arising from all plant
equipment or tools including lift, Hoist, elevator, escalator, crane used or hired by the insured or
for which the insured is responsible.
Automatic Reinstatement of Limit of Liability (AON)
It is understood and agreed that in the event of loss described in the Schedule of this Policy, the
amount payable for such loss shall be automatically reinstated from the time of the happening and
the Insured shall pay an additional premium therefore calculated pro rata from the date of loss to
the expiration of this policy.
E505 Building Alterations Clause
for accidental bodily injury of and/or property damage to any third party occurring at the premises
resulting from the alterations, structural repairs, decorations and the like operations of the insured
building provided that the Insured shall give previous written notice to the Company to that effect
and the Company may charge an additional premium if the risk exposure is increased. And such
alteration shall not exceed
per contract.
The Insured shall take all practicable safety measures to prevent accidents from happening while
Page 78 of 159
the insured building is undergoing the aforesaid process.

Extra Premium:
C505
E506 Car Park Liability Clause

It is hereby declared and agreed that notwithstanding anything contained herein to the contrary,
this Policy is extended to indemnify the Insured against all sums which the Insured shall become
legally liable to pay as compensation for accident resulting in loss of or damage to motor
vehicles excluding vehicles of the Insured and of the Insureds employees whilst in the
Insureds control or parked in or about the Insureds premises.
Provided that the maximum liability of the Company under this Extension shall not exceed per
vehicle and
any one accident and in the aggregate during the period of insurance. Which is
inclusive of and not in addition to the limits of indemnity as shown in the Schedule.
Provided always that it shall be a condition precedent to any liability on the part of the Company
that the Insured shall:
(1) take all reasonable precautions to prevent loss of or damage to motor vehicle whilst such
vehicle is parked in the Insureds premises or in the control of the Insured.
(2) post and keep posted disclaimer notice approved by the Company in the car park.
C506
()
()
Care Custody or Control Clause (AON)

It is agreed that this Policy extends to indemnify the Insured against liability resulting from loss of
or damage to landlord's property including Furniture, Fixtures & Fittings under the care, custody
and control of the Insured.
Page 79 of 159
Provided always that the Company's liability under this Endorsement shall not exceed
___________ for any one accident & in aggregate which shall form part of and not in addition to
the total Limit of Indemnity under this Policy.
Except to the extent that the provisions of this Policy are hereby modified the Terms, Exclusions
and Conditions shall apply.
E507 Cloak Room Clause/ Personal Effects Clause
this Policy shall be extended to cover the Insureds liability for claims made against the Insured in
respect of loss of or damage to customers clothing or personal effects, except valuables and cash
left therein, provided always that the Company's liabilities shall be limited to ____________ for
any one customer.
Extra Premium:
C507
____________
E508 Contractual Liability Clause

It is agreed and understood that subject to the Insured having paid the agreed extra premium, the
Insurers shall indemnify the Insured against any claim made in respect of liability assumed by the
Insured under any contract or agreement for bodily injury of and/or property damage to any third
party, subject to the limit of indemnity stipulated under Section II of the Policy, provided that such
contract or agreement has been declared to and approved in writing by the Insurers.
Extra Premium:
C508
Costs Inclusive (AON)

The Insurers will pay the following costs and expenses in addition to the compensation as stated
above:
a) all costs and expenses recovered by any claimant from the Insured,
b) all costs and expenses incurred with the written consent of the Insurers in the defence of
Page 80 of 159
claims against the Insured,

c) the costs and expenses of Solicitors fees, legal representation of any coroners inquest, fatal
accident enquiry, court of summary jurisdiction or proceedings arising out of alleged breach of
statutory duty or other similar judicial enquiry into circumstances relating to any accident claim or
potential claim which would be the subject of indemnity under this Policy.
Provided that the Insurers may at any time pay to the Insured the Limit of Indemnity (after
deduction of any sum or sums already paid as damages) or any lesser amount for which any such
claim or claims can be settled and upon such payment the Insurers shall relinquish the conduct and
control of and be under no further liability under this Policy in connection with such claim or
claims except for costs and expenses as above incurred in respect of matters prior to the date of
such payment.
The total liability of the Insurers to indemnify the Insured shall not exceed the sum stated as the
Limit of Indemnity in the Schedule.
Contingent Auto Liability. CSL US$250,000 per occurrence to sit(AON)
Notwithstanding anything herein contained to the contrary it is hereby understood and agreed that
within the policy will subject to its terms/conditions and limitations extend to cover the insureds
legal liability to pay as compensation for bodily injury or property damage to third party, arising
out of or caused by any claim made out of the use of owned automobile by the insureds and/or its
distributors, for the sole purpose of conducing the business of the insured.
Provided that the above extensions shall be operative only if the limit of liability of any other valid
and collectible insurance available to the insured has been exhausted.
Subject otherwise to the terms/,conditions and exceptions of this policy.
Contingent Liability For Contractors & Sub Contractors Clause (AON)
It is hereby declared and agreed that this Policy is extended to cover the legal liability for the
contractors and subcontractors for damages arising as a result of bodily or property damage to
third party caused by accident and arising out of the performance of the contract work in the
premises of the insured provided that no other cover is effective at the time of accident.
Completed Operations Clause (AON)
This Policy is, subject to the limit stated in the Schedule and subject to the Jurisdiction Clause,
extended to indemnify the Insured against all sums for which the Insured shall become legally
liable to pay for compensation in respect of bodily injury and property damage happening within
the territory as specified in the policy schedule caused by Products sold or supplied or arising out
of Completed Operations, but only if the bodily injury or property damage occurs after the
retroactive date specified in the Schedule and away from premises owned by or rented to the
Insured resulting in a claim being first made against the Insured during such Period of Insurance.
"Operations" include materials parts or equipment finished in connection therewith. Operations
shall be deemed completed at the earliest of the following times:
Page 81 of 159
(1) When all operations to be performed by or on behalf of the Insured under the Contract have
been completed.
(2) When all operations to be performed by or on behalf of the Insured at the site of the operations
have been completed.
(3) When the portion of the work out of which the injury or damage arises has been put to its
intended use by any person or organization other than another contractor or subcontractor engaged
in performing operations for a principal as a part of the same project. Operations which may
require further service or maintenance work or correction, repair or replacement because of any
defect or deficiency, but which are otherwise complete, shall be deemed completed.
In respect of the indemnity the terms and conditions and exceptions of this Policy shall otherwise
apply except that the Company will not indemnify the Insured in respect of:
(1) The Liability as within defined arising from
i. defective design or formulation of any Products/Completed Operations
ii. any Products/Completed Operations in the custody or control of the Insured
iii. any products/Completed Operations installed in an aircraft
(2) The loss of use of or the costs of repair alteration or replacement (including demolition
breaking out dismantling delivery rebuilding supply and installation in connection therewith) of
any Products/Operations supplied or completed by the Insured giving rise to a claim
(3) The cost of recalling any defective or potentially defective products/Operations supplied or
completed by the Insured
(4) Punitive or exemplary damages
(5) Any action for damages brought against the Insured in the Courts of any country outside
Peoples Republic of China in which the Insured is represented by a branch or by a company firm
or individual holding the Insured's Power of Attorney
(6) Bodily injury or property damage arising out of the existence of tools, uninstalled equipment
or abandoned or unused materials
Contract Liability Clause (HSBC)
It is agreed and understood that, the Company shall indemnify the Insured against any
claim made in respect of liability assumed by the Insured under any contract or
agreement for bodily injury of and/or property damage to any third party subject to
the limits of liability stipulated in this Policy provided that such contract or agreement
has been declared to and approved by the Company.
E509 Cross Liability Clause
It is hereby understood and agreed that for the purpose of this Policy each of the Parties
comprising the Insured shall be considered as separate and distinct unit and the words the
Insured shall be considered as applying to each party in the same manner as if a separate policy
had been issued to each of the said parties and the Company hereby agrees to waive all rights of
subrogation or action which the Company may have or acquire against either of the aforesaid
parties arising out of any accident in respect of which any claim is made hereunder.
Page 82 of 159
Provided that any aggregate liability of the Company shall not be increased beyond the limits as
stated in the schedule.
C509
E510 Defective Sanitation Liability

Notwithstanding anything herein contained to the contrary it is hereby understood and agreed that
the within policy will subject to its terms, limitations and conditions extend to indemnify the
Insured in respect of all sums which the Insured shall become legally liable to pay for
compensation in respect of accidental bodily injury to any person or accidental damage to property
arising out of the accidental discharge, release or escape of pollutants (including the cost of
removing nullifying or cleaning up of such pollutants) arising from defective sanitation.
C510
Delivery Goods Extension Clause (AON)

The indemnity provided by this Policy is extended to indemnify the Insured's legal liability arising
from delivery of goods under the supervision of the Insured's employees.
E511 Elevator and Escalator Clause
for accidental bodily injury of and/or accidental property damage to any third party in the normal
operational use of the elevators or escalators at the premises specified in the Policy subject to the
limits of liability stipulated in this Policy.
It is warranted that the Insured shall see to it that qualified certificate of elevators and escalators
issued by competent department shall be hold by the insured and regular inspection and
maintenance of the elevators and escalators shall be carried out by qualified engineers.
Extra Premium:
C511
Page 83 of 159
E512 Exhibitions & Promotions Clause

It is agreed and understood that this Policy is extended to cover legal liability of the Insured
arising out of any exhibitions or promotions organized by the Insured, held within the PRC for
which they may be responsible.
Provided that such exhibitiors/promoters are not entitled to indemnity under other policy or
policies.
C512
E513 Excess Insurance Clause

It is agreed and understood that permission is granted the Insured to have excess insurance over
the limits of liability set forth in this Policy without prejudice to this Policy, nor shall the existence
of such insurance, if any, reduce any liability under this Policy.
C513
E514 Employees Act Clause

It is agreed and understood that this Policy is extended to cover death or bodily injury to any third
party or loss of or damage to the property of the third party caused by accident or negligence of
the Insureds employee or employees whilst being engaged in the work connectd with the
Insureds business as stated in the Policy during the currency of this Policy.
C514
Page 84 of 159
E515 Explosion of Boilers &/or Steam Pressure Vessels Extension

It is hereby understood and agreed that subject to the Insured having paid the agreed premium,
Notwithstanding anything contained herein to the contrary, this Policy is extended to cover the
Insureds legal liability arising out of claims caused by or resulting from or in connection with the
boilers and steam pressure vessels owned or used by the Insured.
Warranted that if at the time any claim arises under the above extensions, there is any other
existing insurance covering the same loss damage or liability the Company shall not be liable to
pay or contribute any proportion of such loss damage compensation costs or expenses.
Extra Premium:
C515
Boiler & Pressure Vessel Liability Clause (HSBC)

It is agreed and understood that this Policy shall be extended to cover the Insured's liability for
accidental bodily injury of and/or accidental property damage to any third party resulting from
boiler & pressure vessel explosion due to its internal steam pressure subject to the limits of
liability stipulated in this Policy that the Insured has complied with all operating regulations laid
down specifically for such boiler & pressure vessel.
It is warranted that the Insured shall see to it that regular inspection and maintenance
of the boiler shall be carried out by qualified engineers.
E516 Fire, Explosion & Smoke Damage Extension Clause
for accidental bodily injury of and/or accidental property damage to any third party occurring at
the specified premises caused by fire and/or explosion and/or its consequential smoke subject to
the limit of liability specified in the Schedule of the Policy during the period of insurance.
Extra Premium:
C516
Page 85 of 159
Smoke Damage Clause (HSBC)

The insurance under this Policy shall cover any damage to the Property Insured caused by smoke
following fire provided that a fire loss is established and liability admitted under this Policy.
E517 Fire Brigade & Water Damage Liability Clause
It is hereby declared and agreed that notwithstanding anything contained herein to the contrary,
this Policy is extended to indemnify the Insured against all sums which the Insured shall become
legally liable to pay as compensation for claim made in respect of damage to the property of third
parties arising out of the use of water or chemical by the Fire Services Department to extinguish a
fire in the Insureds described premises provided that the limit of indemnity shall not
exceed_________any one accident and in the aggregate.
C517
E518 First Aid Liability Extension

It is hereby understood and agreed that this Policy extends to indemnify the Insured in respect of
accidental bodily injury to customers or other third parties as a result of performing first aid or due
or alleged to be due to first aid or other similar treatment made available at the within described
premises provided always that any liability in respect of wrongful diagnosis is expressly excluded.
The indemnity granted by this section shall extend to any members of the Insureds staff trained in
first aid or qualified practitioner.
Provided that:
a. such person is not entitled in indemnity from any other source.
b. such person shall as though such person were the Insured observe fulfill and be subject to the
terms exceptions and conditions of the Policy so far as they can apply.
C518
()
()
Page 86 of 159
E519 First Aid Treatment Clause

this Policy shall be extended to cover the Insured for reasonable costs or expenses of first aid
treatment given of adminstered by the Insured to a third party injured at the premises upon an
occurrence falling within the scope of this Policy.
Extra Premium:
C519
E520 Food and Drink Clause

this Policy shall be extended to cover the Insureds legal liability for claims made against the
Insured for accidental bodily injury of and/or accidental property damage to any third party which
occurs during the period of insurance and arises out of poisoning by foreign or deleterious matter
in food or drink consumed in or about the premises specified in the Policy provided always that
the Insured shall at all times take every possible precaution to prevent the sale or supply of any
article or articles of food or drink which are not in good condition or free from contamination or
fit for human consumption, subject to the limit of liability specified in the Schedule of the Policy
during the period of insurance.
Extra Premium:
C520
E521 Goods and Services Clause

for accidental bodily injury or accidental property damage which occurs during the period of
insurance and arises out of goods and/or services sold or supplied including transportation
provided by the Insured in the normal course of the business as hold proprietor, subject to the limit
of liability specified in the Schedule of the Policy during the period of insurance.
C521
Page 87 of 159
E522 Guests Property Clause (Visitors Effects Clause)

for loss of or damage to the property belonging to guests or customers of the Insured whilst such
property is under the custody or control of the Insured at the place(s) which the policy applies,
subject to a limit of liability of ____________ for any one guest, with the exception of losses of
guests property from safe deposit boxes contained at the premises where the maximum liability
for any one guest is agreed to be ____________. For the purpose of this extension the guests
property shall include clothing of such guests sent for laundry, dry cleaning or pressing at the
premises, subject always to the limit of liability specified in the Schedule of the Policy during the
period of insurance.
Extra Premium:
C522
() ____________
() ____________
Liability for personal effects of Guests (AON)

Notwithstanding anything contained herein to the contrary it is hereby declared and agreed that
this Policy shall extend to include liability as within defined for accidental loss of or damage to
property belonging to guests in the service of the insured.
E523 Hoist, Cranes &/or Unregistered Vehicles Liability Clause
It is understood and agreed that subject the Insured having paid the agreed additonal premium this
Policy extends to indemnify the Insured for claims in respect of bodily injury or damage to
property arising directly or indirectly out of or caused by or in connection with any hoist, crane,
power hoisting machines or unregistered vehicles or attachment thereto in the physical or legal
control of the Insured or used in work undertaken by or on behalf of the Insured.
Provided that the Company shall not be liable in respect of claims arising in connection with such
vehicle or such attachment thereto:
Page 88 of 159
a) in respect of the use of which insurance is required by virtue of legislation relating to motor
vehicles;
b) which is otherwise insured in respect of the same liability provided also that the Limit of
Indemnity shall apply inclusive of this Clause.
Extra Premium:
C523
()
()
E524 Independent Contractors Liability Clause

It is hereby understood and agreed that this Policy extends to indemnify all sums which the
Insured shall become legally liable to pay as compensation for bodily injury or damage to property
of the third parties arising out of or caused by or in connection with the alteration of and/or
addition to any premises owned, occupied or managed by the Insured. Provided always that value
of such works does not exceed the total of ____________.
It is further agreed that the Company shall not liable for any claim recoverable from any valid
third party liability insurance or the third party liability section of any Contractors All Risks
Insurance held by the Insured or the Insureds contractor.
C524
____________
Indemnity To Landlord Clause (AON)

If any claim shall be made against any customers of the Insured (hereinafter called THE
PRINCIPAL) for accidental bodily injury or accidental loss of or damage to property caused by or
arising out of the negligence of the Insured or his employees whilst undertaking work on behalf of
the Principal in the course of his business as described in the Schedule of this Policy, the Company
will indemnify the Principal against such claims including the costs incurred with the Companys
consent. It is being understood that the Company shall have the sole conduct and control of all
Page 89 of 159
claims and the Company shall not indemnify the Principal against claims arising out of the
negligence of the Principal or any of his servants.
Provided always that:
i. The Principal is not entitled to indemnity under any other policy.
ii. The Principal shall observe, fulfill and be subject to the terms, limitations and conditions of this
Policy insofar as they can apply.
The total amount payable by the Company inclusive of costs and expenses incurred with their
written consent whether in respect of indemnity to the Insured or Principal referred to above or
both shall not exceed the Limit of Indemnity mentioned in the Schedule.
E525 Liability to Directors & Non-manual Employees whilst Overseas (Overseas Business
Trip Liability Clause)
It is hereby declared and agreed that the Policy extends to indemnify the Insured for claims in
respect of bodily injury or damage to property arising from the presence, outside China but
excluding the United States of America, its territories of possessions, or Canada on the Business of
the Insured of directors and non-manual employees of the Insured who are normally resident in
China.
Provided that this extension shall not operate in respect of claims brought against the Insured in
any country (outside China) in which the Insured is represented by a branch or by any employee
domiciled in the country or by a company firm or individual holding the Insureds power of
attorney.
C525
Business Trip Abroad (Worldwide including USA/ Canada) (AON)

It is hereby declared and agreed that the Policy extends to indemnify the insured for claims in
respect of bodily injury or damage to property arising from the presence outside PRC, including
Canada, United States of America, its territories & possessions.
On the Business of the Insured, of directors and non-manual employees of the insured who are
normally resident in PRC; provided that this extension shall not operate in respect of claims
brought against the Insured who is represented by a branch or by any employee domiciled in the
country or by a company, firm or individual holding the Insureds power of attorney.
It is also agreed that where it is prevented by law or otherwise from making payment on behalf of
the Insured, the company will indemnify the Insured for loss sustained to the extent that such loss
is covered by the policy.
It is further agreed that if the company is not legally permitted toro cannot for any reason, defend
Page 90 of 159
any suit against the insured the company will reimburse the insured for the expense of such
defense incurred with its consent.
Subject otherwise to the terms conditions and limitations of the policy.
Business Trip Abroad ( Including U.S.A & Canda;Limit:RMB300,000 per person per
accident) (Marsh)
It is hereby agreed and understood that the Policy is extended to indemnity the Insured for claim
in respect of bodily injury or damage to property arising from the presence, outside China
including the United States of America, its territories of possessions or Canada on the business of
the Insured who are normally resident in People's Republic of China.
Subject otherwise to the terms, exceptions and conditions of this Policy.
( RMB300,000) (Marsh)
E526 Loading and Unloading of Vehicles Clause

premium, this Policy shall be extended to cover the Insureds liability for the claims arising from
the loading and unloading of the Insureds vehicles in connection with the business at the specified
premises.
C526
E527 Landlords Property under Care, Custody & Control of Insured

It is agreed that this Policy extends to indemnify the Insured against liability resulting from loss of
or damage to landlord's property including Furniture, Fixtures & Fittings under the care, custody
and control of the Insured.
Provided always that the Company's liability under this Endorsement shall not exceed
___________ for any one accident & in aggregate which shall form part of and not in addition to
the total Limit of Indemnity under this Policy.
Except to the extent that the provisions of this Policy are hereby modified the Terms, Exclusions
and Conditions shall apply.
C527
____
___________
Page 91 of 159

E528 Hired Or Non-Owned Automobile Liability Clause/Motor Contingent Liability
Clause
this Policy shall be extended to cover the Insureds liability for the claims made against the
Insured for third party liability including passenger risk in respect of any motor car either owned
or provided by others while being used in connection with the business provided that the Insured
is not entitled to indemnity under any other policy.
Provided further that this endorsement shall be an excess insurance over any other valid and
collectible insurance available to the insured.
Extra Premium:
C528
E529 Owned Automobile Liability Clause

It is hereby agreed and understood that claims made in respect of third party liability including
passenger risk in respect of any motor car either owned or provided by the Insured while being
used in connection with the Business, or third party liability occurring in the Car Parking Area in
the basement of designated area within the premises.
Provided further that this endorsement shall be an excess insurance over any other valid and
collectible insurance available to the insured.
C529
E530 Parking Liability Clause

It is hereby agreed and understood that this Policy shall be extended to indemnify the Insured in
respect of loss of or damage to vehicles as a result of providing parking services to the hotel guests
by the Insured.
Provided always that the parking services shall be performed by authorised employees of the
Page 92 of 159
Insured and such employees shall hold a valid driving license.

C530
Reinstatement of Limit (AON)

It is hereby agreed and understood that in consideration of the insurance not being reduced by the
amount of any loss, the sum Insured may be reinsated by the Insured subject to an extra premium
therefore calculated pro rata on the amount of the loss from the date thereof to the date of expiry
of the Period of Insurance.
SIR Definition / Retention Clause (AON)
Definition
SELF-INSURERD RETENTION the amount or amounts stated in the Schedule for which the
Insured is responsible in respect of each and every claim as the result of any one event subject to
the provisions specified in the Retention Endorsement.
RETENTION ENDORSEMENT
This endorsement modifies insurance provided under the following:
1.
The Limits of Indemnity of insurance as stated in the Schedule shall apply in excess of
the Self-Insured Retention specified in the Schedule and the Insured agrees to assume this retained
limit (herein called the "self-insured retention"). The Insurer will pay only the amount excess of
the self-insured retention.
The Insured shall have the obligation to provide, at their own expense, adequate defense and
investigation of any claim and to accept any reasonable offer of settlement within the self-insured
retention and in event of their failure to comply with this clause, no loss, cost or expense shall be
payable by the Insurer.
In the event of bankruptcy or insolvency of the Insured, the insurance provided by this policy shall
not replace the self-insured retention provided by the Insured. In the event of bankruptcy or
insolvency of the Insured, the Insurer shall be liable only to the same extent as if the bankruptcy or
insolvency had not occurred. In no event shall the Insurer be required to substitute for the Insured
as respects their responsibility within the self-insured retention.
2.
This retention endorsement applies to those claims or suits that would be covered by the
above referenced coverage part(s) in the absence of this endorsement.
Page 93 of 159
3.
The Insured is obligated to pay the following up to the limit of the self-insured retention:
a.
All compensatory amounts which an Insured shall become legally obligated to
pay as damages because of bodily injury, property damage, personal injury, or advertising injury
sustained by one or more persons or organizations.
b.
All supplementary payments as defined in the policy and all loss adjustment
expense including but not limited to the following:
All administrative agency and court costs, fees and expenses; fees for service of process; fees to
attorneys; the cost, material and labor for photography; fees or costs for experts, cost of copies of
transcripts of testimony at coroner inquests or criminal or civil proceedings, cost of copies of
public records; cost of depositions and court reporters or recorded statements; and any similar
costs or expenses properly chargeable to the investigation or defense of a particular claim or to
protect the right of subrogation of the company.
4.
It is agreed that the self-insured retention shown in Item 1. shall not be depleted by:
a.
Expenses incurred by salaried employees of any Insured or of the company; and
b.
Expenses of third party claims administrators.
5.
Upon knowledge of any occurrence which might give rise to a claim hereunder, the
Insured shall give immediate written advice thereof to the Insurer. In the event of an occurrence
resulting in any of the following injuries, immediate notice of occurrence shall also be given to the
Insurer, whether or not a claim is expected to be made hereunder:
Any injury resulting in:
a.
Death
b.
Brain damage
c.
Fractured skull
d.
Paraplegic or quadriplegic impairment
e.
Loss of eyesight
f.
Third degree burns
g.
Traumatic loss of or surgical amputation of a limb.
6.
It is further agreed that the Insurer shall be advised of any potential exposure, which
equals or exceeds fifty percent (50%) of the self-insured retention amount.
Page 94 of 159
7.
In the event of a claim or claims arising which appear likely to exceed the self -insured
retention, no costs, other than loss adjusting expenses, shall be incurred by the Insured without the
prior written consent of the Insurer.
8.
The Insurer shall have the right and opportunity in all cases to associate with the Insured
and/or assume charge of the defense and/or settlement of any claim and, upon written request from
the Insurer, the Insured shall tender such portion of the self-insured retention as the Insurer may
deem necessary to complete the settlement of such claim.
E531 Social &/or Sports Clubs Liability Clause
It is hereby declared and agreed that this Policy extends to indemnify the Insured and/or the
Insureds welfare social or sporting clubs and/or any individual members of such clubs whilst
undertaking activities on behalf of such clubs (whether committee members or otherwise) for
claims in respect of bodily injury or damage to property occurring as a result of an accident and
happening in connection with their business as welfare social and/or sporting clubs.
Provided that:
(a) such clubs and/or members are not entitled in indemnity under any other policy of insurance
otherwise the indemnity granted herein will apply only in respect of an amount in excess of the
provided by such other policy.
(b) such clubs and/or members shall as though they were the Insured observe fulfill and be
subject to the terms, exclusion and conditions of this Policy so far as they can apply.
C531
()
()
Social & Recreational Activities (Marsh)

Notwithstanding anything contained herein to the contrary it is hereby understood and agreed that
the indemnity provided by this Policy shall extend to include liability arising out of provision of
Sports Social and Welfare organizations sponsored by the Insured.
E532 Strike, Riot, Civil Commotion or Malicious Damage Extension Clause
premium, this Policy shall be extended to cover the Insureds liability for accidental bodily injury
Page 95 of 159
or and/or accidental property damage to any third party occurring at the specified premises
directly caused by strike, riot, civil commotion or malicious damage.
Extra Premium:
C532
E533 Swimming Pool Liability Clause

premium, this Policy shall be extended to cover the Insureds liability for claims made against the
Insured for accidents happening in or around or arising out of the ownership, use or operation of
the Insureds swimming pool.
It is warranted that life-guards are on duty whenever the swimming pool is open for use.
Extra Premium:
C533
E534 Personal Injury Liability Clause

this Policy shall be extended to cover the Insureds liability for claims made in respect of personal
injury to third parties arising out of the following offenses:
1. false arrest, detention or imprisonment, or malicious prosecution
2. libel, slander, defamation or violation of rights of privacy
3. wrongful entry or eviction or other invasion of rights of private occupancy
The observance of the regulations and laws of the Peoples Republic of China shall be a condition
precedent to any liability of the Company.
Additional Premium:
C534
1.
Page 96 of 159
2.
3.
Premises Medical Clause (AON)

this Policy shall be extended to cover the Insured for reasonable costs or expenses of first aid
treatment given of administered by the Insured to a third party injured at the premises upon an
occurrence falling within the scope of this Policy.
Premises Medical Expenses Clause (Limit: US$500 any one accident) (Marsh)
It is hereby agreed that the company will pay to or for each person (other than employees of
Insured) who sustains bodily injury caused by accident all reasonable medical expense incurred
within one year from the date of the accident on account of such bodily injury, provided such
bodily injury arises out of (a) a condition in the insured premises or (b) operations with respect to
which the named insured is afforded coverage for bodily injury liability under this policy subject
to a limit of US$500.00 any one accident.
Premises/Operations Clause (Marsh)
The Company will indemnify the Insured against all sums which the Insured shall become legally
liable to pay in respect of
(a) accidental bodily injury to any person
(b) accidental loss of or damage to property
happening during the Period of Insurance and caused in the course of the Business within the
Territorial Limits: P. R. China.
Property Owner's Liability (AON)
It is noted and agreed that the Company will subject to the terms exceptions limits and conditions
contained herein or endorsed herein indemnify the Insured against all sums which the Insured
shall become legally liable to pay as damages in respect of
(1) Accidental bodily injury to any person
(2) Accidental damage to property
Happening during the period of insurance and
Page 97 of 159
(a) caused by any defect in the premises or

(b) arising from the maintenance or repair or decoration of the premises.
This Clause is subject otherwise to the terms, conditions and exceptions of this Policy
E535 Accidental Pollution Clause
It is agreed and understood that this insurance excludes all liability in respect of Pollution or
Contamination other than caused by a sudden, accidental, identifiable, unintended and unexpected
incident occurring during the Period of Insurance subject to a limit of _________________ in
aggregate.
All Pollution or Contamination which arises out of one incident shall be deemed to have happened
at the time such incident takes place.
The liability of the Insurers for all compensation payable in respect of all Pollution or
contamination which is deemed to have occurred during the Period of Insurance shall not exceed
_______________ for any one occurrence.
For the purpose of this endorsement 'Pollution or Contamination' shall be deemed to mean
i) all pollution or contamination of buildings or other structures of water of land or the
atmosphere and
ii) all loss of damage or injury directly or indirectly caused by such pollution or contamination
Extra Premium:
C535
____________
/
__________
____
1
2
Sudden and Accidental Pollution Liability Clause (HSBC)

This Policy is extended to cover the Insureds legal liability for claims in respect of third party
bodily injury or property damage caused in connection with sudden, unintentional and unexpected
pollution incident.
Third Party Definition Clause (HSBC)
It is agreed and understood that Item 2 under the Exclusion of Public Liability Clause
liability in respect of injury to any person who at the time of sustaining such injury is engaged
in the service of the Insured. shall be replaced by the following:
Page 98 of 159
' Liability of any Insured for death illness disease or bodily injury sustained by any of its
Employees directly arising out of or in the course of the employment by the Insured. Any party
other than the Insured, his representative or his employees shall be deemed as Third Party for the
purpose of this Policy.'
Other terms and conditions remain unchanged.
E536 Third Party Liability of Directors and Executives Clause
this Policy shall be extended to cover the third party liability of the Insureds directors and
executives for accidents happening in their business traveling or business trips, subject to the
following limits of liability during the period of insurance.
Limit of Indemnity A.O.A.:
Additional Premium:
C536
E537 Excess Liability Of Motor Insurance Clause

Notwithstanding anything herein contained to the contrary, it is hereby agreed and understood, this
Policy shall be extended to cover the Insureds liability for the claims made against the Insured for
bodily injury, illness, disease, loss of or property damage to third party arising from the ownership
possesision of use by or on behalf of the Insured of any mechanically propelled vehicle ( including
any type of machine on wheels or caterpillar) licensed for road use. The cover thereunder should
only be in excess of the limit of the coverage afforded by a motor insurance policy.
Extra Premium:
C537
Page 99 of 159
E538 Consequential Loss to Third Party Clause

It is hereby agreed and declare that the insurance under this Policy shall be extended to indemnify
the Insured against all sums which they become legally liable to pay consequent upon accidental
bodily injury or illness to any person or accidental loss of a damage to property.
Extra Premium:
C538
E539 Lessors Liability Clause

this Policy shall be extended to cover the Insureds Legal liability for the claims made against the
Insured for accidental bodily injury of and / or accidental property damage to any third party
caused by fire to the buildings leased.
Additional Premium:
C539
Leased Staff Residences (Marsh)

It is hereby noted and agreed that this policy extends to cover the liability arising out of staff
residence leased by the insured at no additional premium subject otherwise to the terms,
conditions and exceptions of the policy.
( RMB1,000,000) (Marsh)
E540 Delivery Risk Clause

It is hereby declared and agreed that this policy is extended to indemnity the Insured against legal
liability in respect of bodily injury and/or damage to property:
1) Arising out of any in course of loading or unloading operations from a stationery vehicle
including delivery or collection of the load from or to the vehicle
Page 100 of 159
2) Caused by any article of part of the load falling from a vehicle whilst in transit
C540
1/
2
E541 Gradual Disease

Notwithstanding anything contained herein to the contrary this Policy will indemnify the Insured
for any bodily injury Claims Made during any Period of Insurance and notified to the Insurer
within 30 days of such claims being made caused by the escape of any pathogen:
i. from any premises plant or equipment or any other property owned by or the responsibility of
the Insured; or
ii. from any Product of the Insured.
For purposes of this extension Claims Made shall mean:i. any claim made in writing to the Insured; or
ii. any notice given in writing by the Insured to the Insurers when the Insured first became aware
of any incident or occurrence which could give rise to a claim or claims against the Insured.
All claims arising from a single occurrence shall be deemed to be made in the Period of Insurance
when the first claim or incident which could give rise to a claim was first notified to the Insurers
regardless of when any subsequent claims are made.
C541
30
1.
2.
1.
2.
E542 Indemnity to Principals Clause

If any claim shall be made against any customers of the Insured (hereinafter called THE
PRINCIPAL) for accidental bodily injury or accidental loss of or damage to property caused by or
arising out of the negligence of the Insured or his employees whilst undertaking work on behalf of
the Principal in the course of his business as described in the Schedule of this Policy, the Company
Page 101 of 159
will indemnify the Principal against such claims including the costs incurred with the Companys
consent. It is being understood that the Company shall have the sole conduct and control of all
claims and the Company shall not indemnify the Principal against claims arising out of the
negligence of the Principal or any of his servants.
Provided always that:
i. The Principal is not entitled to indemnity under any other policy.
ii. The Principal shall observe, fulfil and be subject to the terms, limitations and conditions of this
Policy insofar as they can apply.
The total amount payable by the Company inclusive of costs and expenses incurred with their
written consent whether in respect of indemnity to the Insured or Principal referred to above or
both shall not exceed the Limit of Indemnity mentioned in the Schedule.
C542
1.
2.
E543 Away Premise Clause

It is hereby noted and agreed that this Policy is extended to cover legal liability of the Insured for
third partys property damage or bodily injury in respect of accidents arising out of the
engagement of the actual progress of work undertaken by the Insured or any person in the service
of the Insured in course of the Business within China Territory but away from the Insureds
Premises.
C543
E544 Liquor Liability Clause

It is hereby noted and agreed that the Company will pay on behalf of the Insured all sums which
the Insured shall become legally obligated to pay as damages because of injury or which this
insurance applies, sustained by any person if such liability is imposed upon the Insured by reason
of the selling, serving or giving of any alcoholic beverage at or from the insured Premises, and the
Company shall have the right and duty to defend any suit against the Insured seeking such
damages, even if any the allegations of the suit are groundless, false or fraudulent, and may make
Page 102 of 159
such investigation and settlement of any claim or suit as it deems expedient, but the Company
shall not be obligated to pay any claim or judgement or to defend any suit after the applicable limit
of the Companys liability had been exhausted by payment of judgements or settlement.
C544
E545 Baby Sitting & Hair Dressing Liability Clause

It is hereby noted and agreed that this Policy extends to indemnify all sums which the Insured
shall become legally liable to pay as compensation for bodily injury due to baby-sitting and/or hair
dressing by the Insured at the Premises.
C545
/
E546 Tenants Legal Liability Clause

the insurance under this policy shall be extended to indemnify the Insured against liability at law
in respect of accidental damage to the premises occupied by them or bodily injury to or death of
any third party as tenants for the purpose of the business.
C546
E547 Use of Hire in Plant, Machinery Liability Clause

the insurance under this policy shall be extended to indemnify the Insured against liability in
respect of bodily injury to or death of or loss of property of any third party arising from all plant
equipment or tools including lift, elevator, escalator, crane used or hired by the insured or for
which the insured is responsible.
Page 103 of 159
C547
C549
Page 104 of 159
The following clauses are limitative additional

provisions
C551
E551 Absolute Exclusion of Asbestos Clause
It is agreed that this Policy shall not apply
A. To any liability for property damage, personal injury, sickness, disease, occupational disease,
disability, shock, death, mental anguish or mental injury at any time arising out of the manufacture
of, mining of, use of, sale of , installation of, removal of, distribution of, or exposure to asbestos,
asbestos products, asbestos fibers or asbestos dust;
B. To any obligation of the insured to indemnify any party because of damages arising out of such
property damage, personal injury, sickness, disease, occupational disease, disability, shock, death,
mental anguish or mental injury at any time as a result of the manufacture of, mining of, use of,
sale of, installation of, removal of, distribution of or exposure to asbestos, asbestos products,
asbestos fibers or asbestos dust;
C. To any obligation to defend any suit or claim against the insured alleging personal injury, or
property damage and seeking damages, if such suit or claim arises from personal injury or
property damage resulting from or contributed to, by any and all manufacture of, mining of, use
of, sale of, installation of, removal of, distribution of, or exposure to asbestos, asbestos products,
asbestos fibers or asbestos dust.
Further, should the underlying limits become impaired or exhausted for claim(s) payment(s)
and/or loss adjustment expense(s) excluded by this endorsement, coverage provided by this policy
will not drop down over the impaired or exhausted underlying limits, however, the policy will
continue to respond for covered claims in excess of the limits stated in the declaration page as
underlying.
Asbestos and refractory ceramic fibres (AON)
It is hereby understood and agreed, that this contract shall not apply to and does not cover any
actual or alleged liability, whatsoever for any claim in respect of loss or losses directly or
indirectly (exclusively or partially) arising out of, resulting from, or in consequence of, or in any
way involving Asbestos or respirable ceramic fibres in whatever form or quantity.
C552
E552 Absolute Exclusion of Pollution Clause
It is agreed that this policy shall not apply:
A. To any personal injury or property damage arising out of the actual or threatened discharge,
dispersal, release or escape of pollutants, anywhere in the world;
B. To any loss, cost or expense arising out of any governmental direction or request that the
insured, the company or any other person or organization test for, monitor, clean up, remove,
contain, treat, detoxify or neutralize pollutants.
Page 105 of 159
C. To any loss, cost or expense, including but not limited to costs of investigation or attorneys'
fees, incurred by a governmental unit or any other person or organization to test for, monitor, clean
up, remove, contain, treat, detoxify or neutralize pollutants.
"Pollutants" means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke,
vapor, soot, fumes, acids, alkalies, chemicals and waste materials. Waste materials include
materials which are intended to be or have recycled, reconditioned or reclaimed.
Further, should the underlying limits become impaired or exhausted for claim(s) payment(s)
and/or loss adjustment expense(s) excluded by this endorsement, coverage provided by this policy
will not drop down over the impaired or exhausted underlying limits, however, the policy will
continue to respond for covered claims in excess of the limits stated in the declaration page as
underlying.
E555 Professional Liability Exclusion
It is hereby declared that this Policy shall not indemnify the Insured against any legal liability to
any third parties caused by any professional negligence, error or omission, or any faulty technique,
bad workmanship in or about the conduct of the Insureds occupation or business by the employee
of the Insured.
C555
Working Away from Premises Clause (AON)

It is hereby noted and agreed that this Policy is extended to cover legal liability of the Insured for
third partys property damage or bodily injury in respect of accidents arising out of the
engagement of the actual progress of work undertaken by the Insured or any person in the service
of the Insured in course of the Business within China Territory but away from the Insureds
Premises.
(AON)
Vehicle not licenced for Public Road use Clause (HSBC)
It is hereby declared and agreed that notwithstanding anything contained herein to the
contrary, this Policy is extended to indemnify the Insured against all sums which the
Insured shall become legally liable to pay as compensation for accidental death,
bodily injury or damage arising out of the ownership, possession on use of vehicle not
required by any Road Traffic Legislation to be the subject of compulsory insurance,
used in and around the Premises.
Page 106 of 159
WAIVER OF SUBROGATION CLAUSE (Marsh)

Notwithstanding the condition of this Policy it is understood and agreed that any claimant under
this Policy shall at the request and at the expenses of the Insurer do and concur in doing and
permit to be done all such acts and things as may be necessary or reasonably required by the
Insurer for the purpose of enforcing any rights and remedies or of obtaining relief or indemnity
from other parties to which the Insurer shall be or become necessary or required before or after
indemnification by the Insurer. The Insurer hereby agrees to waive its rights of subrogation
against any corporation associated or affiliated with the Insured.
/Product Liability
Automatic Cover of New Products Clause ( days Reporting Period) (AON)

The indemnity provided by this Policy shall automatically extend to cover any new products. It is
understood that the insured shall advised the Company for the new products within days and a
pro-rata additional premium will be payable.
Dioxins and Furanes Exclusion (AON)
This insurance does not apply to any claim arising, directly or indirectly, out of the manufacture,
sale, handling, distribution, use of or exposure to Dioxins and Furanes, or products whose
components include Dioxins and Furanes.
It is hereby noted and agreed that:
a) the deposit premium should be prepaid at _____% of total premium within the specified period
as arranged, and the total premium of this policy are to be calculated on basis of the estimated
turnover specified in the Schedule;
b) the Insured shall declare to the Company in writing the actual and final turnover at the end of
policy period and bear a payment of remaining premium to the company on basis of actual final
turnover;
c) during the period when this policy is in force, the details of turnover shall be properly recorded
and the insured shall at all reasonable times allow the company to inspect such records.
C701
1_______
Page 107 of 159
E702 Claim Made Basis Clause

It is hereby agreed and amended:
1. This insurance apply to bodily injury and property damage resulting from an occurrence
which first commences on and after the retroactive date designated in the Schedule, only if:
(1) A claim for damage because of bodily injury and property damage is first made in writing
against any insured during the policy period and
(2) Any insured did not know or could not have reasonably foreseen such occurrence at the
effective date of this policy.
2. As used in this endorsement:
(1) A claim by a person or organization seeking damage will be deemed to have made when
written notice of such claim is received by any insured or by the Company, whichever comes first;
(2) All claims for damage because of bodily injury to the same person as a result of an
occurrence, will be deemed to have been made at the time the first of those claims is made against
any insured;
(3) All claims for damage because of property damage causing loss to the same person or
organization as a result of an occurrence, will be deemed to have made at the time the first of
those claim is made against any insured.
C702
2
2
1
E703 Batch Clause

It is hereby declared and agreed that all claims made against the Insured during the Policy period
and arising from the same cause shall be deemed as one accident and as having been made against
the Insured during the Policy period in which the first claim was made against the Insured or the
Page 108 of 159
first notice given by the Insured to the Insurer to the effect that there would be such possibility of a
claim being made against the Insured.
C703
E704 Completed Operation Hazard Endorsement

This Policy is extended to indemnify the Insured all sums for which the Insured shall become
legally liable to pay for compensation in respect of bodily injury and property damage arising out
of operation of reliance upon a representation or warranty made at any time with respect therein,
but only if the bodily injury or property damage occurs after such operations have been completed
or abandoned and occurs away from premises owned by or rented to the Named Insured.
"Operations" included materials, parts or equipment finished in connection therewith. Operation
shall be deemed completed at the earliest of the following terms:
(1) When all operations to be performed by or on behalf of the Named Insured under the contract
have been completed.
(2) When all operations to be performed by or on behalf of the Named Insured at the site of the
operations have been completed, or
(3) When the portion of the work out of which the injury or damage arises has been put to its
intended use by any person or organization other than another contractor or subcontractor engaged
in performing operation for a principal as a part of the same project.
Operation which may require further service or maintenance work, or correction, repair or
replacement because of any defect or deficiency, but which are otherwise complete, shall be
deemed completed.
The completed operations hazard does not include bodily injury or property damage arising our of
(a) operations in connections with the transportation of property, unless the bodily injury or
property damage arises out of a condition in or on a vehicle created by the loading or unloading
thereof.
(b) The existence of tools, uninstalled equipment or abandoned or insured materials.
E704
1
2
3
Page 109 of 159
1
2
E705 Broad Form Vendors Liability Cover Clause

It is hereby agreed that the Named Insured provision is amended to include any person or
organization (herein referred to as vendor), as an insured, but only with respect to the
distribution or sale in the regular course of the vendors business of the named Insureds products
subject to the following additional provisions:
1. The insurance with respect to the vendor does not apply to :
a. Any express warranty unauthorized by the Named Insured;
b. Bodily injury or property damage arising out of :
i.
Any physical or chemical change in the product made intentionally by the Vendor;
ii.
Repackaging, unless unpacked solely for the purpose of inspection, demonstration,
testing, or the substitution of parts under instructions from the manufacturer, and then repackaged
in the original container;
iii.
Products which, after distribution or sale by you, have been labeled or relabeled or
used as a container, part or ingredient of any other thing or substance by or for the vendor.
2. This insurance does not apply to any insured person or organization, from whom you have
acquired such products, or any ingredient, part or container, entering into, accompanying or
containing such products.
C705
1
2
1
2
Polychlorinated Biphenyls Exclusion (AON)

This insurance does not apply to any claim arising, directly or indirectly, out of the manufacture,
sale, handling, distribution, use of or exposure to Polychlorinated Biphenyls, or products whose
components include Polychlorinated Biphenyls.
Page 110 of 159
Wrong Mark or inscription Extension Clause (AON)

It is hereby noted and agreed that the policy is extended to indemnity the Insured against all sums
for which the Insured shall become legally liable to pay for any possible direct financial loss
caused by wrong mark or inscription on Products sold or supplied by the Insured.
BATCH CLAUSE (Marsh)
It is hereby declared and agreed that all claims made against the Insured during the Policy period
and arising from the same cause shall be deemed as one accident and as having been made against
the Insured during the Policy year in which the first claim was made against the Insured or the first
notice given by the Insured to the Insurer to the effect that there would be such possibility of a
claim being made against the Insured.
/EMPLOYERS LIABILITY
Automatic Additions & Deletions Clause (AON)

It is hereby declared and agreed that this policy provides for automatic inclusion of any new
employee on joining the Insureds employment for an amount of sum insured not exceeding the
amount for similar occupational category of insured employees in accordance with the Schedule
of the Insured person of this policy and the automatic deletion of any existing insured employee
on leaving the Insureds employment provided due notification is made to the Company within
thirty days from date of employment or termination of employment. Subject otherwise to the
terms, conditions and exceptions of the policy.
Bodily Injury (Marsh)
"Bodily Injury" means bodily injury, sickness or disease sustained by a person, including death
resulting from any of these at any time.
The term "Bodily Injury" wherever used herein shall include but not by way of limitation:
Injury to a person (including Death at any time resulting there from),Mental Injury, Mental
Anguish, Shock, Sickness, Disease, Illness Disability, Care and Loss of Services resulting there
from, as well as the financial consequences thereto.
Dormitory Liability Extension (Marsh)
Any accidental injury (including death) sustained by any employee of the Insured caused by the
Insureds error, omission or negligence while the employee is within the dormitory occupied and
used by the Insured in connection with the Insureds business shall be deemed to be arising out of
and in the course of employment of the employee by the Insured for the purpose of this Insurance.
Page 111 of 159
Definition of Salary / Remuneration (AON)

The aforementioned salary or remuneration should include any and all payments made on account
of an employees employment with the Insured but not limited to salary, wages, overtime,
bonuses, gratuities and cash allowances for cost-of-living and board & lodging and any other
perquisites having a monetary value;
E601 Emergency Transportation Expenses Clause
It is hereby noted and agreed that this Policy is extended to indemnify the Insured against any
costs incurred by the Insured for emergency transportation required as a result of serious injury
sustained by the Insureds employees.
Provided that the Companys limit of liability under this clause shall not exceed ______for any
one employee and ____________ in aggregate during period of insurance.
C601
____________,
____________
Emergency Transportation Clause (AON)

This Section extends to cover costs for emergency transportation required as a result of injury
sustained by any employee of the Insured whilst at work. Provided always that the Company's
liability in respect of this extension shall not exceed
RMB50,000 in aggregate during the period
of insurance.
E602 Extraordinary Weather Clause
In the event of any employee of the Insured whose attendance at his place of employment is
required by the Insured during extraordinary weather conditions being injured or killed whilst
proceeding directly to his place of employment or returning therefrom directly to his home, such
death or injury shall be deemed to have arisen out of and in the course of the employees
employment for the purpose of this Policy.
C602
E603 Meals & Lunch Time Extension

It is hereby agreed and understood that in the event of any employee of the Insured staying in the
Page 112 of 159
Insured address during meal and lunch time being injured or killed such injury or death shall be
deemed to have arisen out of and in the course of the employees employment.
C603
Catering Facilities Clause (AON)

It is agreed that in the event of any employee of the Insured being injured or killed (including food
poisoning) whilst using the catering facilities provided by the Insured during meal time, such
injury or death shall be deemed to have arisen out of and in the course of employment for the
purpose of this Section
E604 Temporarily Working Overseas Clause
It is hereby agreed and understood that the cover by this Policy is extended to apply:
1In respect of employees of the Insured whilst temporarily working overseas.
2In the event of any injury by accident or disease sustained by an employee of the Insured in
the course of employment whilst temporarily working outside China the insurers shall indemnify
the Insured as though such injury by accident or disease was sustained in China.
C604
()
()
E605 The Way To and From the Working Place Extension Clause
It is hereby understood and agreed that in the event of any employee of the Insured whose
attendance at his place of employment is required by the Insured being injured or killed whilst
proceeding directly to his place of employment or returning therefrom directly to his home, such
death or injury shall be deemed to have arisen out of and in the course of the employees
employment for the purpose of this Policy.
C605
Page 113 of 159
E606 24-Hour Cover on Business Travel

It is hereby understood and agreed that subject to the Limit of Indemnity and the Territorial Limit
stated in the schedule, this insurance extends to cover the Insured's Legal Liability for such sum or
sums which should be recoverable by the Insured's employee under his personal Accident
Insurance while on business travel.
C606 24
24
E607 24-Hour Cover for Accident Rider

It is hereby understood and agreed that subject to the Limit of Indemnity stated in the schedule,
this insurance extends to cover the Insured's Legal Liability for such sum or sums which should be
recoverable by the Insured's employee under his Personal Accident Insurance (approved by CIRC
in June, 2002).
C607 24
24
20022002133
2002 6
24 Hour Extension Clause (AON)

It is hereby noted and agreed that the Indemnity to the Insured under this Policy shall be extended
to cover personal injuries/death in all cases irrespective of whether they are arising from or in
connection with the Insured' Business and/or Trade.
However, personal injuries/death arising from or in connection with or caused by or attributable to
the following risks and/or perils shall be excluded definitely:
i)self-injury, suicide, mental disorder, criminal action;
ii)any fraudulent, wilful acts being committed by the Insured or his/her beneficiaries;
iii)war, hostilities, war like operations, such as riots, strike, rebellion, uprising, revolution, civil
commotion;
iv)illness, sickness, infectious disease, pregnancy, abortion, childbirth, medical or surgical
treatments;
v)engaging in hunting, mountaineering, racing of any kind, skiing, fighting, intoxication or drugs,
insanity;
vi)nuclear radiations.
Page 114 of 159
E608 Social & Recreational Activities (Sports) Clause

Notwithstanding anything contained herein to the contrary it is hereby understood and agreed that
the indemnity provided by this Policy shall extend to include liability arising out of provision of
Sports Social and Welfare organizations sponsored by the Insured.
C608
E609 Automatic Cover of New Employees Clause

It is hereby agreed and understood that this policy shall be extended to cover the new additional
employees. The Insured shall provide the slip for the new employees (name and classification)
before 10th once a month.
Subject otherwise to the terms, conditions and exceptions of this Policy.
C609
10
Automatic Cover for New Employees Clause (AON)

It is hereby agreed and understood that the insurance by this Policy shall automatically cover all
new employees normally resident in People's Republic of China subject to declaration to the
Company quarterly and the premium shall be adjusted based on the existing rate.
It is hereby noted and agreed that:
a) the deposit premium should be prepaid at 100% of total premium within the specified period as
arranged, and the total premium of this policy are to be calculated on basis of the estimated
amount of the payroll specified in the Schedule;
b) the Insured shall declare to the Company in writing the actual and final amount of the payroll
or wage at the end of policy period and bear a payment of remaining premium to the company on
basis of actual final payroll or wage;
c) during the period when this policy is in force, the details of turnover shall be properly recorded
and the insured shall at all reasonable times allow the company to inspect such records.
C610
1 100
Page 115 of 159
C611
12
1
2
1
2
3
4
5
6
365
1 1345
Page 116 of 159
2
a
b/
c
d
e
f
g
h
120
3
E612 Indemnity for Permanent Disablement Clause

It is hereby agreed and understood, in case that the injured part and extent of the injury suffered by
the Employee is not in accordance with any one item set forth in the Indemnity Scale of this
Policy, the Company shall indemnify the insured according to the Grading Report of Permanent
Disablement issued by the capable authority, and under the guidance of the Standard for Grading
Permanent Disablement of Employees as result of Work Related Injury or Occupational Disease
GB/T16180-1996 released by the State. The indemnity shall be calculated by multiplying the
percentage set forth in the Indemnity Scale for Permanent Disablement of the Policy in respect
of the Grade of Permanent Disablement with the Limit of Indemnity stipulated in the Policy.
Indemnity Scale for Permanent Disablement
Grade of Permanent Disablement
Percentage
100%
II
80%
III
70%
IV
60%
50%
VI
40%
VII
30%
VIII
20%
VIV
10%
VV
5%
In case the disabled parts correspond to two items in GB/T16180-1996, the higher grade of the
two shall prevail if the two items are in different grades, and the upper of the two shall prevail if
Page 117 of 159
the two items are in same grade. In case the disabled parts correspond to three or more than three
items in GB/T16180-1996, the upper grade of the highest shall prevail. But in no case the grade of
Permanent Disablement we apply shall exceed the Grade I stated in the above Indemnity Scale.
C612
GB/T16180-1996
100%
80%
70%
60%
50%
40%
30%
20%
10%
5%
E613 Definition of Occupational disease Clause

The definition of Occupational Disease in this Policy is subject to the explanation of Item II of
Occupational Disease Prevention Law of the Peoples Republic of China (released on October
27, 2001), or any supplement related with Occupational Disease which is promulgated by local
authority.
Occupational Disease is refer to the disease resulting from contacting with dust, radioactive
materials and other poisonous or baneful substances whilst the employees are engaged in any
occupational activities of state owned enterprises, public institutions, private companies or any
other forms of enterprises.
The class and catalogue of Occupational Disease are regulated, adjusted and released by Health
Service Executive Section of State Council together with Labor Security Executive Section of the
State Council.
Page 118 of 159
C613
/2001 10
27
C614
1
2
3
4X X
5
6
7

Page 119 of 159
12

1
2
3

1
2
3
4
5
6

1 1345
2
a
b/
c
d
e
f
g
h
120
Page 120 of 159
21900
2500 5000
250
(AON)
1.
2.24
3.
RMB2,000,000
E615 Employers Liability Endorsement

It is hereby agreed that this policy shall cover the insured for his legal liability to employee or
employees for death, bodily injury or disease arising out of and in the course of their employment
and engagement by the Insured according to the applicable law or court decision but which is not
covered by Workers Compensation Insurance Funds according to the Workers Compensation Law.
This policy shall in addition cover any legal cost payable by the Insured and other expenses
incurred with the prior written consent of the Company.
Provided that total indemnification under this endorsement shall not exceed ______ for any one
occurrence.
Otherwise subject to the terms, exceptions and conditions contained herein or endorsed hereon of
the
C615
Page 121 of 159
____________
Service of the Insured (AON)

Under Item 2 of the Exclusions of the policy standard wording, as mutually agreed and so as to
avoid potential disputes, we shall amend the standard wording and change the wording of in the
service of the Insured to in the employment of the Insured
Workmen Clause B038 - building EL (AON)
It is hereby agreed and understood that workmen are allowed in or about the premises to carry out
alterations or repairs without prejudice to the terms of this insurance. Provided that the contract
value of such alterations and repairs does not exceed RMB5,000,000.00
/CONTRACTORS
E401 Airfreight Clause

insurance shall be extended to cover extra charges for airfreight.
Provided further that the maximum amount payable under this Endorsement in respect of
airfreight shall not exceed the amount stated below during the period of insurance.
same proportion.
Deductible:
Limit of Indemnity (any one occurrence):
Extra premium:
C401
____________________
Page 122 of 159
_________________
_____________
____________________
E402 Automatic Reinstatement of Amount Clause
It is understood and agreed that in the event of any valid claim payable under Section II of this
Policy and in the absence of written notice by the Company or the Insured to the contrary the
amount of Limit of Indemnity reduced by loss is to be automatically reinstated as from the date so
reinstated. The Insured undertakes to pay pro-rata additional premium at the original rate on the
amount of any loss to the expiry of the Period of Insurance.
C402
E404 Camps and Stores Clause

It is agreed and understood that the Insurers shall only indemnify the Insured for loss, damage or
liability directly or indirectly caused to camps and stores by fire, flood or inundation if these
camps and stores are located above the highest water level recorded anywhere on the site during
the last 20 years and the individual storage units are either at least 50 m apart or separated by fire
walls.
It is also agreed that the Insurer shall indemnity the insured for any one occurrence only up to a
limit of indemnity of
for camps,
for each individual storage unit.
C404
20
50 ,
E405 Construction/Erection Machinery Clause

cover under Section l of the Policy shall be extended to include loss of or damage to the
construction/erection machinery mentioned in the attached list of machinery, excluding however
1. loss or damage due to electrical or mechanical breakdown ,failure, breakage or derangement,
Page 123 of 159
freezing or coolant or other fluid, defective lubrication or lack or oil or coolant, but if as a
consequence or such breakdown or derangement an accident occurs causing external damage,
such consequential damage shall be indemnifiable.
2. loss of or damage to vehicles licensed for general road use or waterborne vessels or aircraft.
The sums insured on construction/erection machinery shall be their replacement values, which
shall mean the cost of replacement or each insured item by a new item of the same kind and the
same capacity.
Total Sum insured:
Annual Premium:
Period of Insurance: from
to
Deductible ( any one occurrence):
or 20 % of the loss amount, whichever is higher.
Extra Premium:
C405
1
2
,
______________
______________
___________ _____________
______________
__________ 20%
E406 Construction Material Clause
liability directly or indirectly caused to construction material by flood and inundation if such
construction material does not exceed three days' demand and the exceeding quantities are kept in
areas not endangered by 10-year floods.
C406
3 ,
10
E407 Construction Plant, Equipment and Machinery Clause

It is agreed and understood that the insurers shall only indemnify the insured for loss, damage or
liability directly or indirectly caused to construction plant, equipment and machinery by flood and
Page 124 of 159
inundation if ,after the execution of works or in case of any interruption, such construction plant,
equipment and machinery are kept in an area not endangered by 20-year floods.
C407
20
E408 Contractual Liability Clause

Insurers shall indemnify the Insured against any claim made in respect of liability assumed by the
Insured under any contract or agreement for bodily injury of and/or property damage to any third
party subject to the limit of indemnity stipulated under Section II of the Policy provided that such
contract or agreement has been declared to and approved in writing by the Insurers.
Extra Premium: ______________
C408
____________
E409 Contract work taken Over or Put into Service Clause
It is agreed and understood that subject to the Insured having paid the agreed
extra premium, the insurance shall be extended to cover
--loss of or damage to parts of the insured contract works taken over or put into
service if such loss or damage emanates from the construction of the items insured under section I
and happens during the period of cover.
Extra premium:
.
C409
: _______________
E410 Designers Risk Clause
insurance shall be extended to cover the cost of replacement, repair or rectification of loss of or
damage to items due to defective material and/or workmanship and/or faulty design, but the
Page 125 of 159
exclusion shall be limited to the items immediately affected and shall not be deemed to exclude
loss of or damage to correctly executed items resulting from an accident due to such defective
material and/or workmanship and/or faulty design.
This Clause is Subject otherwise to the terms, conditions and exceptions of this Policy.
Extra premium:______________
C410
________________________
Cover for Testing of Machinery and Installations
conditions contained in the Policy or endorsed thereon, the period of cover shall be extended
to include a test operation or a test loading but not beyond four weeks from the date of
commencement of the test.
If, however, a part of a plant or one or several machine(s) is (are) tested and/or put into
operation or taken over, the cover for that particular part of the plant or machine(s) and any
liability resulting therefrom ceases whereas the cover continues for the remaining parts to
which the above does not apply.
In the case of second-hand items, the insurance hereunder shall, however, cease immediately on
the commencement of the test.
C411
________________________
______________________
E412 Cross Liability Clause
Third Party Liability cover of the Policy shall apply to the insured parties named in the Schedule
as if a separate policy had been issued to each party, provided that the Insurers shall not indemnify
the Insured under this Endorsement in respect of liability for
1. loss of or damage to items insured or insurable under section I of the Policy, ever if not
recoverable due to an excess or any limit,
2. fatal or non-fatal injury or illness of employees or workmen who are or could have been insured
under Employers' Liability insurance.
The Insurers' total liability in respect of the insured parties shall not however exceed in the
Page 126 of 159
aggregate for any one accident or series of accidents arising out of one event the limit of
indemnity stated in the Schedule.
This Clause is Subject otherwise to the terms, Conditions and exclusions of this Policy.
Extra premium:
C412
,
,
, :
() ,,
;
()
:_________________
E415 Drilling Work For Water Wells Clause
It is agreed and understood that the cover for well drilling work shall be restricted to loss or
damage due to or resulting from the following named perils:
1. Earthquake, volcanism, tsunami
2. Storm, cyclone, flood ,inundation, landslide
3. Blow-out and/or cratering
4. Fire/explosion
5. Artesian waterflow
6. Mud loss, which cannot be overcome by known practice
7. Collapse of hole including collapse of casing due to abnormal pressure or heaving hales, which
cannot be overcome by known practice
The indemnity shall be calculated on the basis of the costs (including material) spent for drilling
the well up to the very moment when the first phenomena of the above perils are apparent and the
well has to be abandoned due to a hazard insured against .
Special exclusions:
The Insurers shall not be liable for
1. loss of or damage to drilling rig and drilling equipment (for which the drilling contractor may
conclude a special insurance).
2. costs of fishing operations of all kinds,
3. costs of reconditioning and workover operations to restore well conditions including all
stimulation work (acidizing ,fracturing, etc).
Deductible (any one occurrence):
or 20% of the loss amount, whichever is higher
C415
:
();
Page 127 of 159
();
();
();
();
();
()
()
() ();
() ;
() ()
____________ 20%
E416 Cost for Decontamination Clause
insurance shall be extended to cover the extra for decontaminating items which have become
radioactive in the normal course of operation and which have become radioactive in the normal
course of operation and which have been affected by an indemnifiable loss under the Policy.
This cost of decontamination includes e.g.
a
expenditure incurred before it becomes possible to repair the damage proper, e.g. costs for
decontaminating components exposed to ionizing radiation within the course of normal operation;
b
expenditure incurred in order to make the damaged item(s) accessible, e.g. for removing and
replacing shields and protective walls;
c
expenditure incurred for the purpose of protecting the personnel repairing the damage, e.g.
for protective clothing, work breaks, or limitation of the exposure to radiation, etc;
d
additional expenditure incurred because the damage item(s) cannot be repaired and must be
replaced owing to contamination which arose during normal operation;
e
expenditure for such tests, checks and acceptance surveys as are obligatory after a loss has
been repaired;
f
expenditure for removing and disposing of radioactive debris.
The Total indemnity payable under this Endorsement shall, however, not exceed the amount of for
any one accident.
The specified limit shall not apply, however, to the cost of conventional repair of the affected
item(s) covered under the Policy.
This clause is subject otherwise to the terms, conditions and exceptions of this Policy.
C416
Page 128 of 159
E417 Special Conditions Concerning Safety Measures with Respect to Precipitation, Flood
and Inundation
conditions contained in the Policy or endorsed thereon, the Insurers shall only indemnify the
Insured for loss, damage or liability caused directly or indirectly by precipitation, flood and
inundation if adequate safety measures have been taken in designing and executing the project
involved. Adequate safety measures shall mean that allowance is made for precipitation, flood and
inundation up to a return period of 10 years for the location insured and the entire policy period on
the basis of the statistics prepared by the meteorological agencies.
Loss, damage or liability resulting from the Insureds not immediately removing obstructions (eg
sand, trees) from watercourses, whether carrying water or not, in order to maintain free waterflow
shall not be indemnifiable.
C417
10
E421 Existing Structures and/or Surrounding Property Clause

cover under Section I shall be extended according to the following provisions to cover sudden and
unforeseen physical loss of or damage to the structures stated below caused by or arising out of
the construction or erection of the items insured under Section I, e.g. due to vibration, removal or
weakening of support, lowering of ground water, underpinning, tunnelling or other operations
involving supporting elements or the subsoil.
Loss of or damage to the structures stated below shall only be covered if prior to the
Page 129 of 159
commencement of the works their condition is found to be satisfactory and/or the necessary safety
measures have been taken. The Insured shall produce the Insurers a report stating the condition of
the structures before the beginning of the works.
The following shall be excluded:
1. loss or damage attributable to errors or omissions in the designing of the works;
2. loss or damage consisting in cracks that impair neither the stability of the structure nor the
safety of its users.
Should further safety measures become necessary during construction, the expenses incurred for
such measures shall not be indemnifiable under the Policy.
Structures for which this Endorsement is applicable:
Limit of indemnity:
any one occurrence
Aggregate limit of indemnity:
Deductible(any one occurrence):
or 20% of the loss amount, whichever is higher.
Extra premium:
.
C421
1
2
()
_____________
_____________
_____________ 20%
_____________
E423 Extended Maintenance Clause
insurance shall be extended for the maintenance period specified hereunder to cover loss of or
damage to the contract works
--caused by the insured contractor(s) in the course of the operations carried out for the purpose of
complying with the obligations under the maintenance provisions of the contract,
--occurring during the maintenance period provided such loss or damage was caused on the site
during the construction period before the certificate of completion for the lost or damaged section
was issued.
Page 130 of 159
Maintenance cover: from

to
Extra premium:
.
C423
:___________
:_________________
holidays and express freight(excluding airfreight).
same proportion.
Limit of indemnity:
any one occurrence
Extra premium:
C425
()
_______________
___________
____________________
E426 Fire-Fighting Facilities Clause
It is agreed and understood that the Insurers shall only indemnify the Insured for loss or damage
resulting directly or indirectly from fire and/or explosion if the following requirements are
fulfilled:
1. Adequate fire-fighting equipment and extinguishing agents of sufficient capacity must always
be available at the site and ready for immediate use.
2. A sufficient number of workmen must be fully trained in the use of such equipment and must be
available for immediate intervention at all times.
Page 131 of 159
3. If storage of material for the construction or erection of the contract works is necessary, storage
must be subdivided into storage units not exceeding the equivalent value of per storage unit. The
individual storage units must either be at least 50 m apart or separated by fire-proof walls.
All inflammable material(such as shuttering material not fitted for concreting, litter, etc) and
especially all inflammable liquids and gasses must be stored at a sufficiently large distance from
the property under construction or erection and any hot work.
4. Welding, soldering or the use of an open flame in the vicinity of combustible material is only
permitted if at least one workman suitably equipped with extinguishers and well trained in firefighting is present.
5. At the beginning of testing all fire-fighting facilities designed for the operation of the plant must
be installed and serviceable.
C426
()
()
()
50
()
()
___________
E428 Guarantee Period Clause
insurance shall be extended for the guarantee period specified hereunder to cover solely loss of or
damage to the insured items resulting form faults in erection, faulty design, defective material or
casting, and/or bad workmanship, but excluding the costs the Insured would have incurred for
rectifying the original fault had such fault been discovered before the loss occurred.
This extension shall not cover any loss or damage arising directly or indirectly from or in
connection with fire ,explosion and/or any Acts or God nor shall it cover any third party liability.
Guarantee cover from
to
Deductible (any one occurrence) or 20% of the loss amount. whichever is higher.
Extra premium:
C428
Page 132 of 159
__________
____________ 20%
__________
E429 Hydrocarbon Processing Industries Clause 1
It is agreed and understood that the following shall apply to this insurance:
As from the introduction of any hydrocarbons into the plant
1. a deductible of
for Section 1 of the policy is applicable ,which shall also apply in case of fire
and explosion damage,
2. the Insurers shall not be liable for loss of or damage to
a . catalysts unless included by endorsement ,
b. reforming units due to overheating or creaking of any tubes,
c. the insured plant due to overheating or cracking following an exothermic reaction,
d. the insured plant due to the prescribed techniques not being followed on purpose or due to the
cutting out of safety devices,
as well as for any liability resulting therefrom.
C429 1
()___
_______
()
1. ()
2.
3.
4. ,
E430 Hydrocarbon Processing Industries Clause 2

It is agreed and understood that subject to the Insured having paid the agreed extra premium,
under Special Condition 1 for Hydrocarbon Processing industries shall be replaced by the
following wording:
"catalysts unless such loss or damage is caused by an indemnifiable loss of or damage to the
insured plant and/or apparatus,"
Extra premium:
C430 2
Page 133 of 159

() 1 ( )
______________
E431 Inland Transit Clause
It is agreed and understood that subject to the insured having paid the agreed extra premium,
Section I of this insurance shall be extended to cover loss of or damage to the property insured
whilst in transit to the contract site other than on waterways or by air within the territorial limits of
the People's Republic of China provided that property insured whilst in transit has qualified
packing.
Total value of property:
Extra Premium:
C431
E432 Laying Water Supply and Sewer Pipes Clause

It is agreed and understood that the Insurers shall indemnify the Insured for any loss ,damage or
liability due to the flooding or silting of pipes, trenches or shafts only up to the maximum length
of open trench stated below, partially or completely excavated, for any one loss event.
The Insurers shall be liable only if
1. the pipes, immediately after laying, have been secured in such a manner by back filling that
they cannot be displaced if the trench is flooded;
2. the pipes, immediately after laying, have been closed to prevent water, silt or the like from
penetrating;
3. the trenches of tested pipe sections have been back filled immediately upon completion of the
pressure test.
Maximum length:
metres.
C432
,
,
Page 134 of 159

(), ,
(), ,
(),
____________
E433 Laying Pipelines, Ducts and Cables Clause
It is agreed and understood that the insurers will indemnify the Insured for any loss or damage due
to storm, rain, flood, inundation such as sanding, silting up, muddying up, erosion, collapse and
floating up of pipes, ducts or cables, sustained by completely or partly excavated open trenches
and/or items laid therein, up to a maximum length of
.km open trench any one loss event.
The Insured shall made sure that plugging facilities are available near the pipe ends for emergency
purposes and that pipe ends exposed to flooding are plugged before any interruption during idle
work periods such as nights and holidays.
C433
_________
E434 Leak search costs when Laying Pipelines Clause
It is agreed and understood that the Insurers shall indemnify the Insured also for the following
items under this Policy:
1. Leak search costs following a hydrostatic test (including the cost of leasing special apparatus,
cost of operation and transport of such apparatus);
2. Earthwork on a trench not damaged in itself, such earthwork becoming necessary in the search
for and repair of leaks, e.g. excavation, uncovering of the pipeline, backfilling;
provided that
1. the leak has been caused by an indemnifiable event or is attributable to faulty execution on the
site, and
2.
% of the welding seams have been X-rayed and any deficiencies discovered thereby have
been removed properly.
Indemnity shall be limited in the aggregate to:
per testing section during one policy period
Costs caused by faulty repair of welding seams shall be excluded from the cover.
C434
Page 135 of 159
() ()
()
_____%
___________
E435 Maintenance Visits Clause

insurance shall be extended for the maintenance period specified hereunder to cover solely loss of
or damage to the contract works caused by the insured contractor(s) in the course of the operations
carried out for the purpose of complying with the obligations under the maintenance provisions of
the contract.
Maintenance cover: from
to
Extra premium:
C435
___________
_________________
E436 Marine Cargo Insurance (50/50) Clause
It is agreed and understood that the Insured is requested to
1. Inspect the materials and equipment for possible damage incurred during transit upon their
arrival at the contract site. In the case of unpacked goods where damage is evident such damage is
to be reported under Marine Cover,
2. In the case of packed goods which are left in their packing until a later date, the packing is to be
usually inspected for signs of possible damage to the goods. If any sign of damage is visible, the
goods themselves are to be reported under the Marine Cover.
3. When the Packing of the goods manifests no sign of damage and the goods are therefore left
packed, any damage discovered when they are unpacked will be assumed to have occurred during
transit unless there is dear evidence from the nature of the damage that it could only have occurred
after expiry of the marine insurance.
4. If, however ,no clean evidence can be deduced as to when the damage was caused, the
settlement of the loss will be shared equally between marine insurance and this insurance.
C436
Page 136 of 159

()
()
,
()
,
() 50%
Motor Contingent Liability (AON)

The Insurers will provide indemnity to the Insured against legal liability arising out of the use of
any motor vehicle not the property of the Insured by any employee or officer of any of the Insured
parties in the course of the performance of the Insured Contractors.
The indemnity will not apply to legal liability
a. inrespect of loss of or damage to such vehicle or to property conveyed therein;
b. in respect of which the Insured is entitled to indemnity under any other insurance; and arising
out of the Peoples Republic of China.
E437 Non-Survey Clause
It is noted and agreed that in respect of any claim under Section I where the estimated amount
does not exceed
(net of any applicable excess) the claim shall be admitted without survey and
the Insured may proceed with repairs without prior consultation with Insurer provided they furnish
to Insurer a full written accident report with substantiating documents and keep a photographic
record of any damage. Notwithstanding the foregoing the Insurer reserve the right to inspect the
loss site.
C437
____________
E439 Offsite Storage Clause

It is agreed and understood that this Policy shall be extended to cover the property insured whilst
being stored elsewhere than at the site specified in the Schedule provided that the value of such
offsite property is included in the Sum Insured subject to the following :
1. offsite premises;
2. value of offsite property;
Page 137 of 159
3. storage period
It is warranted that security guard(s)shall be kept on duty round the clock at the above named
premises, which shall be fit in with the requirements of the property stored.
The limit of indemnity for any one accident per storage:__________
C439
,
:
()
()
()
:
() 24 ;
()
: __________________
E442 Plans and Documents Clause
It is agreed and understood that the Insurers shall indemnify the Insured for costs incurred in rewriting or re-drawing plans and drawings or other contract documents lost, destroyed or damaged
as a result of a peril hereby insured against subject to the following limits of indemnity .
The limit of indemnity for any one accident :____________
C442
: __________________
E443 Premium Installment Clause
It is agreed and understood that the total premium under this Policy shall be paid in
____installments on the following conditions:
No. of Installment Amount to be paid Date of Payment
In case the Insured fails to pay a required premium on the above-specified date, The Insurers shall
not be liable for any loss of and/or damage to the subject matters insured arising during the period
from the date of payment to the day when such belated premium has been paid. Until the Insured
has paid all the premiums on this Policy, the Insurers shall be entitled to make deductions in
respect of unpaid premium from the amount of claims paid and to be paid for any recoverable
claims where the aggregate amount of claims paid and to be paid exceeds that unpaid premium.
C443
Page 138 of 159
_____:
E444 Prevention Measure Clause

It is hereby declared and agreed that in the event of actual damage (or imminent damage, with
prior notice to and approval from Insurers) to the Insured Property, Insurer will pay the reasonable
costs necessary in preventing, minimizing or reducing damage to the Insured Property which
would have been recoverable hereunder.
C444

It is agreed and understood that the Insurers shall indemnify the Insured for costs in respect of
Architects', Surveyors' and Consulting Engineers' Fees necessarily incurred by the Insured in the
reinstatement of the property insured consequent upon its loss, destruction or damage by any peril
hereby insured against, but not any fees for the preparation of a claim or estimate of loss, being
understood that the amount payable for such fees shall not exceed the amount authorized under the
scales of the related professional department regulating such charges prevailing at the time of the
destruction or damage subject to the limit of indemnity stipulated in the Schedule of the Policy.
C445
E446 Reactor Pressure Vessel with Internals Clause

insurance shall be extended to cover the reactor pressure vessel and its internals (with the
exception of fuel and absorber elements )1. No distinction shall be made between cost of
Page 139 of 159
conventional repair and cost due to decontamination. The total indemnity payable under this
Endorsement shall not exceed the amount of .for any one accident.
The external limits of the reactor pressure vessel are defined as shown in the attached drawing .
Extra Premium:
Fuel elements, i.e. fuel material (fissionable, fertile, compounding and alloying material), fuel
cladding as well as associated support structures.
Absorber elements, i.e. shut-down rods, control rods and shim rods as well as associated structural
material.
C446
()
______
: ________________
:
----- ()
-----
It is agreed and understood that the Insurers shall indemnify the Insured for costs and expenses
incurred in :
1. removing debris ;
3. sharing up of mopping of the portion or portions of the property insured by this Policy
destroyed or damaged by fire or by any other peril hereby against subject to the limit of indemnity
stipulated in the Schedule of the Policy.
C447
1
2
E450 Strike, Riot and Civil Commotion Clause

Policy shall be extended to cover loss or damage due to strike, riot and civil commotion which for
the purpose of this Endorsement shall mean(subject always to the Special Conditions hereinafter
Page 140 of 159
contained) loss of or damage to the property insured directly caused by

1. the act of any person taking part together with others in any disturbance of the public peace
(whether in connection with a strike or lock-out or not) not being an occurrence mentioned in
condition 2 of the Special Conditions hereof,
2. the action of any lawfully constituted authority in suppressing or attempting to suppress any
such disturbance or in minimizing the consequences of any such disturbance,
3. the willful act of any striker or locked-out worker performed in furtherance of a strike or in
resistance to a lock-out,
4. the action of any lawfully constituted authority in preventing or attempting to prevent any such
act or in minimizing the consequences of any such act.
Provided that it is hereby further expressly agreed and declared that
1. all the terms, exclusions, provisions and conditions of the Policy shall apply in all respects to
the insurance granted by this extension save in so far as the same are expressly varied by the
following Special Conditions, and any reference to loss or damage in the wording of the Policy
shall be deemed to include the perils hereby insured against,
2. the following Special Conditions shall apply only to the insurance granted by this extension,
and the wording of the Policy shall apply in all respects to the insurance granted by the Policy as if
this Endorsement had not been made thereon.
Special Conditions
1. This insurance shall not cover
a) loss or damage resulting from total or partial cessation of work or the retarding, interruption or
cessation of any process or operation,
b) loss or damage occasioned by permanent or temporary dispossession resulting from
confiscation, commandeering or requisition by any lawfully constituted authority,
c) loss or damage occasioned by permanent or temporary dispossession of any building resulting
from the unlawful occupation by any person of such building,
Provided nevertheless that the Insurers are not relieved under b or c above of any liability to the
Insured in respect of physical damage to the property insured occurring before dispossession or
during temporary dispossession.
2 This insurance shall not cover any loss or damage occasioned by or through or in consequence,
directly or indirectly, of any of the following occurrences, namely
a) war, invasion, act of foreign enemy, hostilities or warlike operations (whether war be declared
or not), civil war,
b) mutiny, civil commotion assuming the proportion of or amounting to a popular rising, military
rising, insurrection, rebellion, revolution, military or usurped power,
c) any act of any person acting on behalf of or in connection with any organization with activities
directed toward the overthrow by force of the government de jure or de facto or to the influencing
of it by terrorism or violence.
In any action, suit or other proceeding, where the Insures allege that by reason of the provisions of
this condition any loss of damage is not covered by this insurance, the burden of proving that such
loss or damage is covered shall be upon the Insured.
3 This insurance may at any time be terminated by the Insurers on notice to that effect being
given by registered post at the Insurer's last known address, in which case the Insurers shall be
liable to repay a ratable proportion of the premium for the unexpired term from the date of
Page 141 of 159
termination.
This clause is Subject otherwise to the terms, conditions and exclusions of this policy.
Limit of indemnity
any one occurrence
Deductible
any one occurrence
Extra Premium
C450
() ()
()
()
()
()
()
1.
(2)
(3)
(2)(3)
2.
1()
2
3
()
3.
________________
_______________
E451 Structures in Earthquake Zones Clause
liability arising out of earthquake if the Insured proves that the earthquake risk was taken into
account in design according to the official building codes valid for the site and that the qualities of
material and workmanship and the dimensions on which the calculations were based were adhered
to.
Page 142 of 159
C451
E452 Time Schedule Clause

It is agreed and understood that the following shall apply to this insurance:
The construction and/or erection time schedule together with any other statements made in writing
by the Insured for the purpose of obtaining cover under the Policy as well as technical information
forwarded to the Insurers is deemed to be incorporated herein.
The Insurers shall not indemnify the Insured in respect of loss or damage caused by or arising out
of or aggravated by deviations from the construction and/or erection time schedule exceeding the
number of weeks stated below unless the Insurers had agreed in writing to such a deviation before
the loss occurred.
Deviation from time schedule:
weeks
C452
_____________
E453 Time Adjustment Clause
It is agreed and understood that any loss of or damage to the insured property arising during any
one period of seventy two (72) consecutive hours, caused by storm, typhoon, tempest, flood or
earthquake shall be deemed as a single event and therefore to constitute one occurrence with
regard to the Excesses provided for herein, For the purpose of the foregoing the commencement of
any such seventy two (72) hour period shall be decided at the discretion of the Insured it being
understood and agreed, however, that there shall be no overlapping in any two or more such
seventy two (72)hour periods in the event of damage occurring over a more extended period of
time.
C453
72
72 72
72
Page 143 of 159
E456 Underground Cables, Pipes and Other Facilities Clause

It is agreed and understood that the Insurers shall only indemnify the Insured in respect of loss of
or damage to existing underground cables and/of pipes or other underground facilities, if prior to
the commencement of works, the Insured has inquired with the relevant authorities about the exact
position of such cables, pipes or other underground facilities and takes all necessary steps to avoid
damage to them.
1. Claims in respect of loss of or damage to such underground facilities which are in the same
position as shown on the underground maps (drawings indicating the position of the underground
facilities) shall be payable after applying a deductible of 20% of the loss amount or the deductible
stated under below, whichever is the greater.
2. Claims in respect of loss of or damage to underground facilities incorrectly shown on the
underground map shall be payable after applying the deductible stated under below.
3. The indemnity shall in any case be restricted to the repair costs of such cables, pipes or other
underground facilities, any consequential damage and penalties being excluded from the cover.
Deductibles (any one occurrence):
1.
2.
C456
():
()
()
1.___________ 20%
2.____________ 20%,
E457 Unexploded Bombs Clause
It is agreed and understood that any loss of or damage to the insured property by hidden bombs,
land mines, torpedoes, ammunition or other engines of war left concealed or below ground or
underwater prior to the commencement of operations insured by this Policy shall not be
considered as "war risks" as excluded by General Exclusion .
C457
"
"
Page 144 of 159
E459 Vibration, Removal or Weakening of Support Clause

It is agreed and understood that subject to the Insured having paid the agreed extra premium,
Section II of this insurance shall be extended to cover liability consequent upon loss or damage
caused by vibration or by the removal or weakening of support.
Provided always that
1. the Insurers will indemnify the Insured in respect of liability for loss or damage to any property
or land or building only if such loss or damage results in the total or partial collapse;
2. the Insurers will indemnify the Insured in respect of liability for loss or damage to any property
or land or building only if prior to the commencement of construction its condition is sound and
the necessary loss prevention measures have been taken;
3. the Insured if required shall before commencement of construction and at his own expense
prepare a report on the condition of any endangered property or land or building.
The Insurers will not indemnify the Insured in respect of liability for
1.loss or damage which is foreseeable having regard to the nature of the construction work or the
manner of its execution,
2. superficial damage which neither impairs the stability of the property, land or buildings nor
endangers their users,
3. the costs of loss prevention or minimization measures which become necessary during the
period of insurance.
Limit of indemnity (any one occurrence):
Aggregate limit of indemnity:
Extra premium:
C459
Page 145 of 159

E461 Exclusion of Tunnels and Galleries Clause
It is agreed and understood that the Insurers shall not indemnify the Insured in respect of
1. grouting of soft rock areas and/or other additional safety measures even if their necessity arises
only during construction,
2. overbreak excavation in excess of the minimum excavation provided in the plans and the
additional expenses resulting therefrom for refilling of cavities,
3. expenses incurred for dewatering even if the quantities of water originally expected are
exceeded substantially,
4. loss or damage due to breakdown of the dewatering system if such breakdown could have been
avoided by sufficient stand-by facilities,
5. expenses incurred for additional insulation and facilities for the discharge of run-off and/or
underground water.
C461
()
()
()
()
()
E462 Exclusion of Dams and Water Reservoirs Clause

It is agreed and understood that the Insurers shall not indemnify the Insured in respect of
1. grouting of soft rock areas and/or other additional safety measures even if their necessity arises
only during construction,
2. expenses incurred for dewatering even if the quantities of water originally expected are
exceeded substantially,
3. loss or damage due to breakdown of the dewatering system if such breakdown could have been
avoided by sufficient stand-by facilities,
4. expenses incurred for additional sealing or waterproofing and additional facilities for the
discharge of run-off and/or underground water,
5. loss or damage due to subsidence if caused by insufficient compacting,
6. cracks and leakage.
C462
()
() ,
()
Page 146 of 159
()
()
()
E463 Exclusion of Earthquake Clause

It is agreed and understood that the Insurers shall not indemnify the Insured for loss, damage or
liability directly or indirectly caused by or resulting from earthquake.
C463
E464 Exclusion of Flood and Inundation Clause

liability directly or indirectly caused by or resulting from flood and inundation.
C464
E465 Exclusion of Crops, Forests and Cultures Clause

liability directly or indirectly caused to crops, forests and/or any cultures during the execution of
the contract works.
C465
C466 Exclusion of Removal of Debris from Landslides Clause

It is agreed and understood that the Insurers shall not indemnify the insured in respect of
1. expenses incurred for the removal of debris from landslides in excess of the costs of excavating
the original material from the area affected by such landslides,
2. expenses incurred for the repair of eroded slopes or other graded areas if the Insured has failed
to take the measures required or to take them in time.
C466
Page 147 of 159
E467 Exclusion of Used Machinery Exclusion Clause

It is agreed and understood that the Insurers shall not indemnify the Insured for loss of or damage
to the insured used items
1. attributable to previous operation,
2. attributable to dismantling (if dismantling is not covered),
3. in respect of any non-metallic parts.
C467
()
() ()
()
Other Insurance Clause (Marsh)

In the event of any other valid and collectible insurance protecting the interests of the Named
Insured, as respects this project, exists at the time of loss the insurance under this policy shall be
considered primary and specific insurance, and such other valid and collectible insurance which
may exist shall not contribute to the payment of any loss until the amount of this policy shall have
been exhausted as respects the interests of the Named Insured.
The above paragraph shall however not apply where contractors /subcontractors have or are
required to provide their own insurance policies. In the event that coverage is provided by any
contractors policy(ies) this policy will only provide difference in conditions or excess coverage to
that provided by the contractors.
Authorized Visitor (Houlder)
It is hereby noted and agreed that the Insurers shall also indemnify the Insured in respect of all
sums which the Insured shall become legally liable to pay for:
i) accidental death, bodily injury, illness or disease suffered by any authorized visitors by the
Insured arising out of the performance of the contract and/or activities connected with the
organisation and performance of events, campaigns and the like
ii) accidental loss or damage to physical property of any authorized visitors by the Insured
arising out of the performance of the contract and/or activities connected with the organisation and
performance of events, campaigns and the like.
Page 148 of 159
The intention of this extension is to cover authorized visitors who are visiting the site on
occasional basis but who are not involved directly in daily supervision or performance of the
contract works.
Basis of Indemnity Clause (Houlder)
The Company shall, subject to the terms, provisions and conditions of the Policy, indemnify the
Insured on the basis of the full cost of repairing, reinstating, replacing or making good property
lost, damaged or destroyed even though such costs may vary from the original construction costs.
Contract Works taken over or put into service (Houlder)
It is agreed and understood that otherwise subject to the terms, exclusions and conditions
contained in the Policy or endorsed hereon, the insurance shall be extended to cover
- loss of or damage to parts of the insured contract works taken over or put into service if such loss
or damage emanates from the construction of the items insured under section I and happens during
the period of cover.
Cross Liability Clause (Houlder)
It is agreed and understood that the Section II of this insurance shall apply to the insured parties
named in the Schedule as if a separate policy had been issued to each party, provided that the
Insurers shall not indemnify the Insured under this Endorsement in respect of liability for
-- loss of or damage to items insured or insurable under Section I of the Policy, ever if not
recoverable due to an excess or any limit,
-- fatal or non-fatal injury or illness of employees or workmen who are or could have been
insured under Workmen's Compensation and/or Employers' Liability insurance.
The Insurers' total liability in respect of the insured parties shall not however exceed in the
aggregate for any one accident or series of accidents arising out of one event the limit of
indemnity stated in the Schedule.
Designer Risks (Limit: RMB2,000,000 AOA & RMB10,000,000 in aggregate) (Houlder)
It is agreed and understood that otherwise subject to the terms, exclusions and conditions
contained in the Policy or endorsed hereon, Section I of this insurance shall be extended to
indemnify the Insured for loss or damage as a result of an accident due to fault, defect, error, or
omission in or failure of any design plan or specification of the permanent works but shall always
exclude that part of the Insured Property directly affected by such fault, defect, error or omission
in or failure of the design plan or specification.
Page 149 of 159
Employees Effect Clause (Limit: RMB20,000 per employee) (Houlder)

The insurance by Section I shall be extended to cover loss of or damage to the tools clothing and
personal effects of the Insured's employees subject to a limit of RMB20,000 per employee.
Cover of Employers Property Clause (Houlder)
conditions contained in the Policy or endorsed thereon, Section II of this insurance shall be
extended to indemnify the Insured for liability in respect of loss of or damage to any building,
structure or property belonging to the Employer in the care, custody or control of an insured
Contractor in connection with the execution of the Insured Contract.
Escalation Clause 20% (Houlder)
conditions contained in the Policy or endorsed thereon, if during the period of insurance the total
value of the insured property of Section I Material Damage shall exceed the Sum Insured of
Section I specified in the Schedule, then such increased values shall automatically be insured up to
but not exceeding 20% of the stated Sum Insured.
Expediting Expenses (Limit: 20% of Adjusted Loss) (Houlder)
In the event of any part of the property insured sustaining damage for which the Insurers are liable
the indemnity provided by the Policy is extended to include:
Cost incurred for delivery of any part or parts by airfreight or express freight or special delivery.
In the execution of authorized repairs for extra labour overtime costs necessary to expedite
reinstatement, replacement or repair, including Sunday Holiday and Night Work.
Provided always that the Insurers Liability for each and every loss in respect of such extra
expenses shall not exceed 20% of adjusted loss.
Final Contract Sum Adjustment Clause (Houlder)
The Insured shall within three months of the expiration of the Period of Insurance furnish to the
Insurers a declaration of the Final Contract Sum and if such sum shall differ from the Contract
Sum the premium shall be adjusted accordingly.
Fire Extinguishment Costs (Limit: RMB500,000 any one loss) (Houlder)
This Policy is extended to cover:
a) all costs incurred in the extinguishment of a fire;
b) all costs incurred in the removal of water and/or substances;
c) all cleaning expenses;
Page 150 of 159
d) the erection of temporary barricades

arising from loss or damage by any peril hereby insured against.
Fire extinguishment and other costs shall not be considered in the determination of replacement
value on the application of any clause forming a part of this Policy.
Ground Subsidence Clause (Houlder)
Without prejudice to the cover provided under the Third Party Section of this Policy in respect of
legal liability for loss of or damage to third party property, the cover provided under this Section
shall extend to include the cost of reinstating and/or consolidating subsidence or collapse of
ground or surfaces surrounding the works whether on or off site in consequence of loss of or
damage to works or temporary works insured under this Section.
Inland Transit (Limit: RMB5,000,000; Excess: 5% of loss amount) (Houlder)
It is agreed and understood that Section I of this insurance shall be extended to cover loss of or
damage to the property insured occurring during transit elsewhere within the territorial limits of
Jiangsu Province in the People's Republic of China provided that the maximum amount payable
under this Endorsement does not exceed RMB5,000,000 for any one loss.
Limit: RMB5,000,000;Excess: 5% of Loss Amount
Local Authorities Reinstatement Clause (Houlder)
Section I of this Policy extends to include such additional cost of reinstatement of the Property
Insured suffering damage as may be incurred solely by reason of the necessity to comply with
building or other regulations under or framed in pursuance of any ordinance, law, statute or with
bye-laws of any municipal or local authority
Provided that:
the amount recoverable under this extension shall not include:
a) the cost incurred in complying with any of the aforesaid regulations or bye-laws
i) in respect of Damage not insured by this Section;
ii) under which notice has been served on the Insured prior to the damage;
iii) in respect of undamaged Property Insured other than alternations necessary as part
of the reinstatement.
b) the amount of any rate tax duty development or other charge or assessment arising out
of capital appreciation which may be payable in respect of the Property Insured by reason of
compliance with any of the aforesaid regulations or bye-laws.
the work of reinstatement must be commenced and carried out with reasonable dispatch and may
be carried out wholly or partially upon another site subject to the liability of Insurers under this
extension not being increased.
Page 151 of 159
Marine Insurance 50/50 Clause (Houlder)

Where separate Marine Insurance has been effected by the Insured it is agreed that in the event of
loss of or damage to the Insured Property due to a peril insured against being discovered after the
risk has terminated under the Marine Insurance and, if after proper investigation it is not possible
to ascertain whether the cause of such loss or damage happened prior to the termination of the
Marine venture or subsequently, it is understood and agreed that the Insurers hereon shall
contribute equally between the Marine Insurers and this insurance, such contribution to be without
prejudice to subsequent final apportionment of the claim as may be agreed between the Insurers
hereon and the Marine Insurers in the light of the terms and conditions of the respective policies.
It is further agreed that in the event of the excess under the Policy, being different from the excess
under the Marine Insurance Policy in settling claims as described above, each Insurers shall
deduct 50% of its appropriate excess from its 50% share of the adjusted claim.
It is hereby understood and agreed that the rights of the Insured shall not be prejudiced by the
failure of any surveyors nominated by the Marine Insurers to protect Marine Insurers rights of
subrogation.
Non-negligence Clause (Houlder)
It is hereby agreed that:
The Policy is extended to cover the Employer and Contractor for legal liability for damage to third
party property caused by vibration or the removal or weakening of support and
The Policy is extended to cover the Employer for any loss or expenses following damage to
property other than the works caused by collapse, subsidence, vibration, weakening or removal of
support or lowering of ground water.
Provided that:
Immediately upon discovery of damage to property caused by vibration or by the removal or
weakening of support due or alleged to be due to any operations of the Insured or any person
acting on his behalf, the Insured shall suspend operations carry out repairs and install additional
supports to the damaged property. If the Insured shall fail to comply with his special provision,
the Insurers shall be under no liability for any claims in respect of the damaged property.
The Insurers shall not liable for:
a. claim in respect of damage to buildings under demolition or declared by the Public Works
Department to be dangerous;
b. any expenses incurred in taking safety measure to prevent damage to property
c. claims in respect of loss or damage to buildings or other structures caused by cracking or
otherwise, unless the stability of the building or structure or the safety of its users is impaired.
Page 152 of 159
Off-Site Storage (Limit: RMB5,000,000) (Houlder)

It is agreed and understood that Section I of this insurance shall be extended to cover loss of or
damage to Insured Property occurring whilst in storage elsewhere within the territorial of Kunshan
in the People's Republic of China subject to a limit of RMB5,000,000 for any one loss.
Plan and Document Clause (Limit: RMB100,000) (Houlder)
The insurance hereby is extended to indemnify the Insured against the necessarily incurred costs
of re-writing or re-drawing of plans and drawings or other contract documents lost, destroyed or
damaged subject to a limit of RMB100,000 any one accident as a result of perils insured
hereunder.
Prevention Measure Clause (Houlder)
It is agreed that in the event of actual damage (or imminent damage, with prior notice to and
approval from Insurers) to the Insured Property, Insurer will pay the reasonable costs necessary in
preventing, minimizing or reducing damage to the Insured Property which would have been
recoverable hereunder. Provided that the total amount recoverable shall not exceed the respective
sum insured under any insured item of Section I of this Policy.
Show Flats / Mock-Up Flats, Sales Offices and Top-Up Ceremony (Limit: RMB5,000,000
for Material Damage) (Houlder)
It is hereby understood and agreed that the Policy shall extend to cover the works in respect of
show flats / mock-up flats, sales offices and top-up ceremony and liability of the Insured arising
therefrom or in connection therewith in respect of Third Party bodily injury or property damage,
as well as the operation / activity after completion during the Period of Insurance.
Testing and Commissioning (Houlder)
conditions in the Policy or endorsed thereon, Section I of this Insurance shall be extended to cover
mechanical and electrical breakdown as a consequence of the testing and commissioning of
machinery and installations forming part of the Insured Property described in Item 1 on the
Schedule
If a part of such machinery and installations or one or several machines is/are tested and/or put
into operation or taken over by the Employer the cover for that particular part of machine(s) and
any liability resulting therefrom ceases whereas the cover continues for the remaining parts.
The Company will not indemnify the Insured in respect of loss of or damage to machinery and
installations undergoing testing or commissioning due to defective material, casting or
workmanship other than faults in erection.
Page 153 of 159
Vibration or Removal or Weakening of Support Extension(Limit: RMB20,000,000 in

aggregate; Excess: 10% of Loss) (Houlder)
It is agreed and understood that otherwise subject to the terms exceptions and conditions contained
in the Policy or endorsed hereon, the Section II of this Policy shall be extended to indemnify the
Insured for liability in respect of any damage which results in the collapse or impairing the
structural stability of any building or structure or which endangers its users caused by or resulting
from vibration or removal or weakening of support.
Provided that:
a. prior to the occurrence of such damage the condition of such building or structure was sound
and all necessary safety precautions had been taken
b. upon discovery of damage which does not immediately result in the collapse or impairing the
structural stability of any building or structure or any part thereof and which is caused by or
alleged to be caused by or resulting from vibration or removal or weakening of support arising out
of any operations in connection with the execution of the Contract the Insured shall immediately
suspend such operations and shall at their own expenses carry out repairs and take whatever safety
precautions that become necessary
c. the Insurers shall not indemnify the Insured in respect of damage caused by or resulting from
vibration or removal or weakening of support to building or structure which is subject to a
demolition order or being declared as unsafe by the competent Authority.
It is further declared and agreed that, notwithstanding anything contained to the contrary, this
Policy shall be extended to indemnify the Insureds legal liability for bodily injury or property
damage of third party occasioned by or resulting from any loss or damage caused by vibration or
by removal or weakening of support.
Pre-Appointment of Loss Adjuster (SGS-GAB Robins (China) Company Limited / Jinhui
Loss Adjuster Limited) (Houlder)
It is noted and agreed that in respect of any claim under this Policy the Company agreed to appoint
the following Chartered Loss Adjuster firm to adjust the claim and all the costs and expenses will
be bonded by the Company.
-GAB Robins (China) Co., Ltd.
Jinhui Loss Adjuster Limited
/Marine Cargo & Inland
Concealed Damage Clause (AON)

It is understood and agreed that in respect of shipments insured hereunder which are received at
destination but not unpacked, this policy is extended to cover losses arising from perils insured
Page 154 of 159
against while in transit, which are not ascertained until the opening of the packages, provided such
opening occurs not later than (120) days after arrival at destination and, in the absence of proof to
the contrary, such losses are to be considered as having occurred during the voyage covered under
this policy.
Nothing contained herein, however, shall be construed to limit the coverage elsewhere provided
herein.
CONCEALED DAMAGE CLAUSE (30 DAYS)(Marsh)
In the event of delay in opening packages at the insured destination, any damage discovered upon
opening which can reasonably be attributed to having occurred during the insured voyage shall be
adjusted in accordance with all other provisions of this policy; provided that the delay in opening
does not exceed thirty days from the date of arrival at the insured destination.
Special Clause for Marine/EAR 50/50 Clause (Marsh)
In the event of loss of or damage to insured interest which is simultaneously the subject to claims
under this Policy and under EAR Insurance Policy being discovered after the risk has terminated
under Marine Insurance Policy and after proper investigation, it is not possible to ascertain
whether the cause of such loss or damage happened before such termination of the risk or
thereafter, it is understood and agreed that the insurers hereon shall contribute 50% of the adjusted
claim provided the EAR insurers also agree to contribute 50% of such contribution to be without
prejudice to subsequent final appointment as between such insurers and insurer hereon
Loading and Unloading Clause (Marsh)
The risk of unloading goods at point of arrival on import and/or inland transit is also extended to
cover in this policy as deemed to be in the ordinary course of transit. The risk of loading goods at
point of origin on export and/or inland transit is also extended to cover in this policy as deemed to
be in the ordinary course of transit.
Temporary Storage (30 Days) (Marsh)
This policy extends to cover 30 days temporary storage in a shipping company's warehouse or
airline company's terminal awaiting delivery.
DEFERRED UN-PACKING -90 DAYS (Marsh)
It is agreed that any loss or damage discovered on opening cases and/or packages (even after risk
has ceased hereunder) shall be deemed to have occurred during the transit insured hereunder ( and
irrespective of attachment of Assured's interest) and shall be paid for accordingly unless proof
conclusive to the contrary be established, it being understood that any cases and/or packages
showing visible signs of damage must be opened immediately. This agreement shall, however,
only apply where such loss or damage is discovered within ninety days of arrival of the goods at
the consignee's or other final warehouse.
Page 155 of 159
STORAGE EXTENSION (Marsh)

It is hereby agreed that this policy extends to cover property insured hereunder while in Bond
and/or other stores at destination and then until delivered to final warehouse, all at cover terms,
subject to the payment of an agreed additional premium of 100% per month or part thereof and
subject to a declaration of such storage.
GENERAL AVERAGE AND SALVAGE CHARGES (Marsh)
General Average and Salvage Charges contributions shall be payable in full irrespective of insured
value.
HOISTING RISKS (Marsh)
Against all risks of physical loss and/or damage from any external cause. Coverage takes effect
when the hoisting commences and cover accidental damage to the cargoes arising out of the
hoisting operation but excludes any loss caused by the infidelity of employees of the Insured or
their sub-contractors or persons to whom the property insured in entrusted.
Coverage ceases when the property has been hoisted and thence to the destined floor of the
Insured.
Excluding any loss and/or damage due to collapse of the stand for hoisting.
Excluding the risks of war, insurrection, rebellion, revolution, civil war or action taken by
governmental authority in hindering, combating or defending against such an occurrence seizure
or destruction under quarantine or Customs regulation. Confiscation by order of any government
or public authority, or risks of contraband or illegal transportation trade.
Warranted hoisted by professional hoister only.
STRIKE, RIOT AND CIVIL COMMOTION (Marsh)
It is agreed and understood that subject to the Insured having paid the agreed additional
premium, this Policy shall extend to cover loss of or damage to the insured property described in
the Schedule due to strike, riot and civil commotion including the loss or damage caused by the
act of any striker whilst occurring in the transportation shown in the Schedule and the loss or
damage caused by looting occurring at the time of strike, riot and civil commotion, excluding the
loss or damage arising from confiscation, commandeering or requisition or destruction by order of
the government or any relative public authority.
EXTRA EXPENSES (Marsh)
The Limits of Liability stated in the Schedule are extended to include reasonable costs
Page 156 of 159
and expenses incurred by the Insured including but not limited to express carriage rates and extra
payments for overtime, night, Sunday or holiday working incurred in connection with the repair or
reinstatement of the property insured arising from an event insured by this Policy.
PREMIUM ADJUSTMENT (Marsh)
In consideration of certain percentage of deposit premium being paid to Insurance Company by
the Insured at the policy inception, it is agreed that the Insured shall keep accurate records of
shipments during period of insurance and the final premium shall be adjusted in accordance with
the actual value of transportation at the Policy expiration.
DEFERRED UNPACKING 90 DAYS (Marsh)
It is agreed that any loss or damage discovered on opening cases and/or packages (even after risk
has ceased hereunder ) shall be deemed to have occurred during the transit insured hereunder (and
irrespective of attachment of Assured's interest) and shall be paid for accordingly unless proof
conclusive to the contrary be established, it being understood that any cases and/or packages
showing visible signs of damage must be opened immediately. This agreement shall, however,
only apply where such loss or damage is discovered within ninety days of arrival of the goods at
the consignee's or other final warehouse.
TRANSHIPMENT CLAUSE (Marsh)
This policy extends to cover transhipment or inland transit with no additional premium charged to
the Insured.
/Money
Key Clause (AON)
All keys and duplicate keys of the safe must be in the custody of two persons rather than one
person, and are removed from the premises at night, except where absolutely necessary, and at all
other time when the premises are closed for business. During the business hours, the captioned
keys should be rested in a hidden place.
Subject otherwise to the terms, conditions and extensions of the policy.
Loss of or Damage to Safe, Strongroom, Cash register & Container / Drawer
(Limit:RMB20,000) (Marsh)
It is hereby noted and agreed that this policy extends to cover the damage to safe, strongroom,
cash register & container/drawer due to theft. Provided the limit of liability under this extension
shall not exceed RMB20,000 which limit shall be addtional to the limit any one loss stated
in the policy.
For the purpose of this extension the word "Theft" shall mean:
1) Theft committed upon the premises of the said situation;
2) Theft or any attempt threat by a person feloniously concealed on the premises of the said
Page 157 of 159
situation.
Subject otherwise to the terms, conditions and extensions of the policy.
(: 10%) (Marsh)
10
Money in Unlocked Receptacles After Business Hours (Limit:3,000) (Marsh)

It is hereby noted and agreed that this policy extends to cover the loss of money in unlocked
receptacles after business hours due to theft. Provided that the limit of liability under this
extension shall not exceed RMB3,000 any one loss for the money in premises as stated in the
policy.
For the purpose of this extension the word "Theft" shall mean:
1) Theft committed upon the premises of the said situation
2) Theft or any attempt threat by a person feloniously concealed on the premises of the said
situation.
Subject otherwise to the terms, conditions and exclusions of the policy.
(: RMB50,000) (Marsh)
,
RMB50,000.00
Automatic Reinstatement of Indemnity Limit Clause (HSBC)

It is agreed and understood that in the event of loss or damage to the insured item ascribed in the
Schedule of this Policy, the amount payable for such loss or damage shall be automatically
therefore calculated pro rata from the date of loss to the expiration of this Policy.
Extend to Cover Loss of or Damage to Personal Effects or Clothing of Employees being
attacked whilst carrying or handling money on behalf of Insured (RMB5,000.- per person)
(HSBC)
It is agreed that this policy extend to cover loss of or damage to personal effects or clothing of
employees being attacked whilst carrying or handling money on behalf of Insured.
Limit of Indemnity: CNY5,000.00 per person.
Page 158 of 159
/Fidelity Guarantee
Prima Facie Evidence (AON)
It is hereby declared and agreed that the Company shall pay for claims where the Company is
satisfied that prima facie evidence indicates dishonesty of the Insured employees. Provided a
report be made immediately to the Police so that prosecution action can be taken against the
defaulting employee. The Insured undertakes to reimburse the Company for the claim money
should the defaulting employee be found by the Court to be innocent subsequently.
Temporary Substitute (AON)
It is hereby declared and agreed that this Policy is extended to cover any employee who takes over
the duties temporarily as a substitute for and in the same capacity as an employee in the Policy
schedule during the period that the latter is on leave. Provided always that the amount guaranteed
in respect of the employee so taking over the acting as a temporary substitute shall be identical to
that in respect of the employee who is insured in the Policy schedule.
12 Months Discovery Period (HSBC)
It is hereby agreed and understood that this insurance shall not be extended to cover any act of
fraud or dishonesty committed by the Employee unless such act of fraud or dishonesty is
discovered during the aforesaid Period of Indemnity or within twelve months thereafter or within
twelve months after the death dismissal or retirement of the Employee whichever event shall first
happen.
Page 159 of 159

Comprehensive Extensions

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Comprehensive Extensions

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Comprehensive Extension Clauses

E126 Off Premises Property Clause................................................................................................40

E701 Premium Adjustment Clause................................................................................................105

E410 Designers Risk Clause.........................................................................................................123

Authorized Visitor (Houlder)..........................................................................................................146

E001 Breach of Condition Clause

Currency Clause (AON)

E003 Loss Payee Clause

Loss Notification Clause (AON)

E005 Approved Loss Adjuster Clause

will be bonded by the Company.

Nominated Adjuster (Marsh)

GAB Robins China Co., Ltd. or

Payment On Account Clauses (Marsh)

E007 60 Days Notice Of Cancellation Clause

E008 Breach of Warranties Clause

Breach of Warranties (AON)

E009 Non-Invalidation Clause

Non-vitiation Clause (HSBC)

E010 Automatic Extension of Period of Insurance (60 Days)

E011 Bankruptcy, Insolvency or Termination

E012 Financial Interests

E014 Losses in Progress

E016 Subrogation Waiver

E017 Multiple Insureds (Non-Vitiation) Clause

E021 Loss Payee Clause

E101 Agreed Value Insurance Clause

E102 All Other Contents Clause

annual period of insurance with a deductible of

All Other Contents Clause (HSBC)

E105 Automatic Cover Clause

E107 Average Relief Clause

Average Relief Clause (80%-including Stocks) B006 (AON)

Basis Of Valuation (HSBC)

Brand and Trademark (Marsh)

E109 Breakage of Glass Clause

E110 Burglary Insurance Clause

E111 Capital Additions Clause

Computer Systems Records (Marsh)

E113 Co-Insurance Clause (85%)

Cost Of Re-erection Clause (Marsh)

E114 Deterioration of Stock Clause

C115 Designation Of Property Clause

in the insured's books.

E116 Earthquake Extension Clause

Earthquake & Tsunami Clause (HSBC)

Subject otherwise to the terms, conditions and exceptions of this Policy.

permanent restoration shall accrue to the Insurer.

Extra Perils Extension Clause (HSBC)

sum insured by each item of the Policy.

ordinance or law regulating the construction or repair of building.

E118 Fire Extinguishing Expenses Clause

E119 Full Theft

E120 Flood Damage

E121 Floating Stock Clause

Forklift Liability within the Premises (AON)

E123 Inland Transit Extension

Inland Transit Clause (HSBC)

Inhibition Clause (Marsh)

(1) Coastal erosion

Leased Property Clause (AON)

Mortgagee Clause (AON)

Loss Payable and Notice of Cancellation Clause (HSBC)