CONTRACTOR'S ALL RISKS INSURANCE POLICY

WHEREAS the insured named in the schedule hereto had made to __________________________
Co Ltd. (hereinafter called "the Company") a written proposal by completing a proposal form
which together with any other statements made in writing by the Insured for the purpose of
this policy, is deemed to be incorporated hereto.

NOW THIS POLICY OF INSURANCE WITNESSETH that subject to and in consideration of the
Insured having paid to the Company, the premium mentioned in the schedule and subject to
the terms, exclusions, provisions and conditions contained herein or endorsed hereon the
Company will indemnify the Insured in the manner and to the extent hereinafter provided.

GENERAL EXCLUSIONS -

The Company will not indemnify the Insured in respect of loss, damage or liability directly or
indirectly caused by or arising out of or aggravated by -

a) War, Invasion, Act of foreign enemy, hostilities or War like operations (whether war be
declared or not) Civil War, rebellion, revolution, insurrection, mutiny, Civil commotion,
Military or usurped power, martial law, conspiracy, confiscation, commandeering a group
of malicious persons or persons acting on behalf of or in connection with any political
organisation, requisition or destruction or damage by order of any Government de jure or
defacto or by any Public, Municipal or Local Authority;

b) Nuclear reaction, Nuclear radiation or Radioactive contamination;

c) Willful act or willful negligence of the Insured or of his responsible representative;

d) Cessation of work whether total or partial.

In any action, suit or other proceedings where the Company, allege that by reason of the
provisions of Exclusion (a) above any loss, destruction, damage or liability is not covered by
this insurance, the burden of proving that such loss, destruction, damage or liability is covered
shall be upon the Insured.

PERIOD OF COVER -

Construction Period -

The liability of the Company shall commence, (notwithstanding any date to the contrary
specified in the Schedule) only from the time of commencement of work after the unloading of
the property specified in the schedule from any conveyance at the site specified in the
schedule whichever is earlier and shall expire on the date specified in the schedule. However,
the Company’s liability expires also for parts of the insured contract works taken over or put
into service by the Principal prior to the expiry date specified in the policy whichever shall be
earlier.

‘If actual construction period is shorter than the period indicated in the schedule, no refund of
premium shall be allowed unless specifically allowed by Insurers.’

At the latest, the insurance shall expire on the date specified in the Schedule but if the work of
construction included in the insurance is not completed within the time specified hereunder,
the Company may extend the period of insurance but the Insured shall pay to the Company
additional premium at rates to be prescribed by the Company.

GENERAL CONDITIONS –

The due observance and fulfillment of the terms of this Policy in so far as they relate to
anything to be done or complied with by the Insured and the truth of the statement
 and answers in the questionnaire and proposal made by the Insured shall be a
condition precedent to any liability of the company.

The Schedule and the Section(s) shall be deemed to be incorporated in and form part of
this Policy and expression ‘this Policy’ wherever used in this contract shall be read as
including the Schedule and the Section(s). Any word or expression to which a specific
meaning has been attached in any part of this Policy or of the Schedule or of the
Section(s) shall bear such meaning wherever it may appear.

The Insured shall at his own expense take all reasonable precautions and comply with all
reasonable recommendations of the Company to prevent loss, damage or liability and
comply with statutory requirements and manufacturers' recommendations.

a) Representatives of the Company shall at any reasonable time have the right to inspect
and examine the risk and the Insured shall provide the representatives of the
Company with all details and information necessary for the assessment of the risk.

(b) The Insured shall immediately notify the Company by Telegram and in writing
of any material change in the risk and cause at his own expense such
additional precautions to be taken as circumstances may require and the
scope of cover and/or premium shall, if necessary, be adjusted accordingly.

No material alteration shall be made or admitted by the Insured where by the risk is
increased unless the continuance of the Insurance be confirmed in writing by the
Company.

5. In the event of any occurrence, which might give rise to a claim under this Policy, the
Insured shall –

a) Immediately notify the Company by Telephone or Telegram as well as in writing

giving an indication as to the nature and extent of loss or damage;

b) take all steps within his power to minimise the extent of the loss or damage;

c) preserve the parts affected and make them available for inspection by a
representative or Surveyor deputed by the company;

d) furnish all such information and documentary evidence as the Company may
require;

e) inform the police authorities in case of loss or damage due to theft or burglary.

The Company shall not in any case be liable for loss, damage or liability of which no notice
has been received by the Company within 14 days of its occurrence.

Upon notification being given to the Company under this condition the Insured may carry
out the repair or replacement of any minor damage not exceeding Rs. 2,500/-. In all other
cases a representative of the Company shall have the opportunity of inspecting the loss or
damage before any repairs or alterations are affected. If a representative of the Company
does not carry out the inspection within a period of time which could be considered as
adequate under the circumstances the Insured is entitled to proceed with the repairs or
replacement.

The liability of the Company under this Policy in respect of any item sustaining damage
shall cease if said item is not repaired properly without delay.

6. The Insured shall at the expense of the Company do and concur in doing and permit to be
done all such acts and things as may be necessary or required by the Company in the
interest of any rights or remedies, or of obtaining relief or indemnity from parties (other
 than those Insured under this Policy) to which the Company shall be or would become
entitled or subrogated upon their paying for or making good any loss or damage under this
Policy, whether such acts and things shall be or become necessary or required before or
after the Insured's indemnification by the Company.

7. If any dispute or difference shall arise as to the quantum to be paid under this Policy
(liability being otherwise admitted) such difference shall independently of all other
questions be referred to the decision of a sole arbitrator, to be appointed in writing by the
parties to or, if they cannot agree upon a single arbitrator within 30 days of any party
invoking Arbitration, the same shall be referred to a panel of three Arbitrators comprising
of two Arbitrators - one to be appointed by each of the parties to the dispute/difference,
and the third Arbitrator to be appointed by such two Arbitrators and arbitration shall be
conducted under and in accordance with the provisions of the Arbitration and Conciliation
Act 1996.

It is clearly agreed and understood that no difference or dispute shall be referable to

arbitration as hereinbefore provided, if the Company has disputed or not accepted liability
under or in respect of this Policy.

It is hereby expressly stipulated and declared that it shall be a condition precedent to any
right of action or suit upon this Policy that the award by such Arbitrator/Arbitrators of the
amount of the loss or damage shall be first obtained.

8. If a claim is in any respect fraudulent, or if any false declaration is made or used in support
thereof, or if any fraudulent means or devices are used by the Insured or any one acting on
his behalf to obtain any benefit under this Policy, or if a claim is made and rejected and no
action or suit is commenced within three months after such rejection or, in case of
arbitration taking place as provided therein, within three months after the Arbitrator or
Arbitrators or Umpire have made their award, all benefits under this Policy shall be
forfeited.

9. If at the time any claim arises under this Policy there be any other insurance covering the
same loss, damage or liability the Company shall not be liable to pay or contribute more
than their rateable proportion of any claim for such loss, damage or liability.

10. This insurance may be terminated at the request of the Insured at any time in which case
the Insurers will refund appropriate premium amount subject to the following conditions -

i) Claims experience under the policy as on date of cancellation should be less than 60
% of reworked premium.

ii) ‘The unexpired period is not less than 3 months or 25 % of the policy period whichever
is less’.

iii) Testing period should not have commenced.

This insurance may also at any time be terminated at the option of the Company by 15
days notice to that effect being given to the Insured in which case the Companies shall be
liable to repay on demand a rateable proportion of the premium for the unexpired term
from the date of cancellation.

SECTION I - MATERIAL DAMAGE -

The Company hereby agrees with the Insured (subject to the exclusions and conditions
contained herein or endorsed hereon) that if, at any time during the period of insurance stated
in the said Schedule, or during any further period of extension thereof the property (except
packing materials of any kind) or any part thereof described in the said Schedule be lost,
damaged or destroyed by any cause, other than those specifically excluded hereunder, in a
manner necessitating replacement or repair the Company will pay or make good all such loss
or damage upto an amount not exceeding in respect of each of the items specified in the
Schedule the sum set opposite thereto and not exceeding in the whole the total sum insured
hereby.

The Company will also reimburse the Insured for the cost of clearance and removal of debris

following upon any event giving rise to an admissible claim under this Policy but not exceeding

in all the sum (if any) set opposite thereto in the Schedule.

EXCLUSIONS TO SECTION - I

The Company, shall not, however, be liable for –

a) the first amount of the loss arising out of each and every occurrence shown as Excess in
the Schedule;

b) loss discovered only at the time of taking an inventory;

c) normal wear and tear, gradual deterioration due to atmospheric conditions or lack of
use or obsolescence or otherwise, rust, scratching of painted or polished surfaces or
breakage of glass;

d) loss or damage due to faulty design;

e) the cost of replacement, repair or rectification of defective material and/or

workmanship, but this 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;

f) the cost necessary for rectification or correction of any error during construction unless
resulting in physical loss or damage;

g) loss of or damage to files, drawings, accounts, bills, currency, stamps, deeds, evidence
of debt, notes, securities, cheques, packing materials such as cases, boxes, crates;

h) any damage or penalties on account of the Insured's non-fulfillment of the terms of

delivery or completion under his Contract of construction or of any obligations assumed
there under or lack of performance including consequential loss of any kind or description
or for any aesthetic defects or operational deficiencies;

i) loss of or damage to vehicles licensed for general road use or water borne vessels or
Machinery/Equipment mounted or operated or fixed on floating vessels/craft/barges or
aircraft.

PROVISIONS APPLYING TO SECTION - I

Memo 1 - SUM INSURED –

It is a requirement of this Insurance that the sum of insurance stated in the schedule shall not
be less than the completely erected value of the property inclusive of freights, custom duty,
erection cost and the insured undertakes to increase or decrease the amount of insurance in
the event of any material fluctuation in the level of wages or prices. Provided always that such
increase or decrease shall take effect only after the same has been recorded on the policy by
the Company.
If in the event of the occurrence of a loss, or damage it is found that the Sum insured
representing the completely erected value of the property and/or of particular item involved is
less than the amount required to be insured, then the amount recoverable by the insured
under this policy shall be reduced in such proportion as the Sum Insured bears to amount
required to be insured.

Memo 2 - PREMIUM ADJUSTMENT –

The Sum Insured under the Policy representing the complete value of the contract works shall
be adjustable at completion of the construction on the basis of actual values to be declared by
the insured in respect of freight and handling charges, customs dues and construction cost and
difference in premium shall be met with by payment at the rate agreed to or by the insured as
the case may be. Any increase or decrease in the Prime cost of materials shall not be the
subject matter of premium adjustment.

Memo 3 - REINSTATEMENT OF SUM INSURED –

In the event of loss or damage the Insurance shall notwithstanding be maintained in force
during the period of insurance for the Sum Insured the Insured undertaking to pay a pro-rata
additional premium on the full amount of each claim for the loss or damage from the date of
such loss to the expiry of the period of Insurance.

Memo 4 - BASIS OF LOSS SETTLEMENT –

In the event of any loss or damage the basis of any settlement under this Policy shall be -

a) in the case of damage which can be repaired the cost of repairs necessary to restore the
property to their condition immediately before the occurrence of the damage less
salvage, or

b) in the case of a total loss - the actual value of the property immediately before the
occurrence of the loss less salvage;

however, only to the extent the cost claimed has to be borne by the Insured and to the
extent they are included in the Sum Insured and provided always that the provisions
and conditions have been complied with.

All damages, which can be repaired, shall be repaired, but if the cost of
repairing any damage equals or exceeds the value of the property immediately
before the occurrence of the damage, the settlement shall be made on the basis
provided for in (b) above.

The cost of any provisional repairs will be borne by the Company if such repairs constitute
part of the final repairs and do not increase the total repair expenses.

The cost of any alterations, additions and/or improvements shall not be recoverable under
this Policy.

Memo 5 - EXTENSION OF COVER –

Any extra charges incurred for overtime, work on holidays, express freight (excluding air
freight) are not covered by this insurance unless agreed upon at an additional premium to be
prescribed by the Company.

Memo 6 - CONSTRUCTION PLANT AND MACHINERY –

Loss of or damage to Construction Plant and Machinery excludes loss or damage directly
caused by its own explosion or its own mechanical or electrical breakdown or derangement.

Memo 7 - SURROUNDING PROPERTY –

Loss of or damage to property located on or adjacent to the site and belonging to or held in
care custody or control of the Principal (s) or the Contractor(s) shall only be covered if
occurring directly due to the construction of the items insured under Section I and happening
during the period of cover, and provided that a separate Sum therefore has been entered in
the Schedule under Section I, for Principal’s surrounding specified property. This cover does
not apply to construction/erection machinery, plants and equipment.

Memo 8 - MAJOR PERILS/AOG Perils –

The major peril/Acts of God claims shall mean claims arising out of –

a) Earthquake - Fire & Shock

b) Landslide/Rockslide/Subsidence
c) Flood/Inundation
d) Storm/Tempest/Hurricane/Typhoon/Cyclone/Lightning or other atmospheric
disturbances.
e) Collapse
f) Water damage for ‘wet’ risks i.e. contract involving works in rivers, canals, lakes or sea.
Memo 9. REINSTATEMENT OF THE INDEMNITY LIMIT -

Reinstatement of the indemnity limit on payment of additional premium after occurrence of

claim can be allowed for extensions like express freight, overtime, surrounding property,
airfreight. However, in respect of Third Party Liability, reinstatement can be allowed upto
overall limit of Rs.1 crore during entire Policy period.

Memo 10. THIRD PARTY LIABILITY -

Third party liability (TPL) cover cannot be granted during extended maintenance.

SECTION II - THIRD PARTY LIABILITY -

The company will indemnify the insured against -

a) legal liability for accidental loss or damage caused to property of other persons including
property held in trust by or under custody of the Insured for which he is responsible
excluding any such property used in connection with construction thereon.

b) legal liability (liability under contract excepted) for fatal or non-fatal injury to any persons
other than the Insured's own employees or workmen or employees of the owner of the
works or premises or other firms connected with any other construction work thereon, or
members of the Insured's family or of any of the aforesaid; directly consequent upon or
solely due to the construction of any property described in the Schedule.

Provided that the total liability of the Company during the period of Insurance under this
cause shall not exceed the limits of Indemnity set opposite thereto in the Schedule.

In respect of a claim for compensation to which the indemnity provided herein applies, the
Company will, in addition, indemnify the Insured against -

a) all costs and expenses of litigation recovered by any claimant from the Insured,

b) all costs and expenses incurred with the written consent of the Company.
The exclusion contained in paragraphs (d), (f) & (g) in Section I of this Policy shall apply also to
this Section.

EXCLUSIONS TO SECTION II -
The Company will not indemnify the Insured in respect of -

1. The Excess stated in the Schedule to be borne by the Insured in any one occurrence
related to property damage.

2. Expenditure incurred in doing or redoing or making good or repairing or replacing anything

covered or coverable under Section I of this Policy;

3. Liability consequent upon -

a) bodily injury to or illness of employees or workmen of the Contractor(s) or the

Principal(s) or any other firm connected with the project which or part of which is
insured under Section I, or members of their families;

b) Loss of or damage to property belonging to or held in care custody or control of the

Contractor(s), the Principal(s) or any other firm connected with the project which or
part of which is insured under Section - I, or an employee or workman of one of the
aforesaid;

c) any accident caused by vehicles licensed for general road use or by waterborne
vessels or aircraft;

d) any agreement by the Insured to pay any sum by way of indemnity or otherwise unless
such liability would have attached also in the absence of such agreement.

CONDITIONS APPLYING TO SECTION II -

1. No admission, offer, promise, payment or indemnity shall be made or given by or on behalf

of the Insured without the written consent of the Company who shall be entitled, if they so
desire, to take over and conduct in the name of the Insured the defence or settlement of
any claim or to prosecute for their own benefit in the name of the Insured any claim for
indemnity or damage or otherwise and shall have full discretion in the conduct of any
proceeding or in the settlement of any claim and the Insured shall give all such information
and assistance as the Company may require.

2. The company may, so far as any accident is concerned, pay to the Insured the limit of
indemnity for anyone accident/ anyone period, but deducting therefrom in such case any
sum/s already paid as compensation in respect thereof or any lesser sum for which the
claim or claims arising from such accident can be settled and the company shall thereafter
be under no further liability in respect of such accident under this section.