of Aviation War, Hi-Jacking And Other Perils Excess And Liability Insurance for
AIRLINES LIMITED and as may be described in the respective Primary Policies.
2. Policy Period
days inclusive Local Standard Time at the address of the Insured with an option
to extend at pro rata by up to 6 months.
3. Hazards Covered
Insured’s legal liability arising out of their aviation operations in respect
of the coverage as is afforded by the Extended Coverage Endorsement (Aviation
Liabilities) AVN 52E.
4. Limits of Liability (Ultimate Net Loss)
combined single limit (bodily injury/property damage) of
any one occurrence and in the aggregate.
Excess Limits of Liability under this Policy
Combined Single Limit (Bodily Injury/Property Damage) of
each occurrence each aircraft.
In the event that the Primary Limits dated in
paragraphs marked (a) above are reduced or exhausted this Policy shall apply
for limit stated in (b) in excess of the reduced primary limit or as a primary limit
if limit (a) is exhausted in its entirety.
Insured may reinstate once their highest respective per occurrence sub-limit is
exhausted, subject to an overall Policy aggregate limit of USD XXXXXX.
overall Policy Aggregate hereunder applies over both policies issued to OOOO
Airlines Limited (Policy No. XXXXXX) and OOOOO Airlines Limited (Policy No.
5. Primary Policy Details and Limits
described in Primary Policy
stated in Item 4.(a) above.
6. Geographical Limits
stated in the Primary Policy.
7. Premium for Period
non adjustable and includes automatic additions of aircraft however if Airlines
passenger numbers decrease by over 30% due to SARS, Avian Flu or similar type
infectious diseases pandemic return premium to be agreed by Insurers.
and payable as follows:
It is understood and agreed that the premium due at the inception of this
Policy shall be payable in the following instalments:
1: Amount XX.00% Due Date XXXXXXXXX
2: Amount XX.00% Due Date XXXXXXXXX
3: Amount XX.00% Due Date XXXXXXXXX
4: Amount XX.00% Due Date XXXXXXXXX
Notwithstanding any cancellation provision contained within the Policy, in the
event that an instalment of premium is not paid by its due date Insurers shall
have the right to terminate the cover afforded by the Policy to the Insured and
any other party(ies) protected thereby, whether by endorsement or otherwise, by
the giving of not less than Thirty (30) days notice in writing to the Insured.
Notice shall be deemed to commence from the date such notice is given by the
6A (Amended) 17.10.96
8. Address for Notices
notices required to be sent in accordance with the terms and conditions of this
Policy shall be sent via the intermediary of:-
WHEREAS the Insured has in force an Aviation
Liability Insurance (hereinafter referred to as the “Primary Policy”)
containing the Extended Coverage Endorsement (Aviation Liabilities) specified
in Item 3 of the Policy Schedule deleting all sub-paragraphs other than (b) of
the War, Hi-jacking and Other Perils Exclusion Clause (Aviation) AVN48B.
WHEREAS paragraph 3. of the said Extended Coverage Endorsement (Aviation Liabilities)
contains a sub-limit as stated in Item 4.(a) of the Policy Schedule
(hereinafter referred to as the “Primary Limit”).
this Insurance is to indemnify the Insured against all sums, in excess of the
Primary Limit, which the Insured shall become legally liable to pay as damages
for bodily injury or property damage caused by an occurrence during the Policy
Period arising out of the Hazards Covered stated in Item 3. of the Policy
ALWAYS THAT :
Liability attaches to the Insurers only after the Primary Insurers have paid or
have been held liable to pay the full amount of their respective Ultimate Net
Loss as set forth in Item 4.(a) of the Policy Schedule. The limit of the
Insurers' liability shall be such amount of Ultimate Net Loss as set forth in
Item 4.(b) of the Policy Schedule excess of the limit set forth in Item 4.(a)
of the Policy Schedule.
Notwithstanding the inclusion hereon of more than one Insured, whether by
endorsement or otherwise, the total liability of the Insurers in respect of any
or all Insureds shall not exceed the Insurers' limit of liability as stated in
paragraph 1. above.
The Insurers shall not be liable to make any payment under this Policy as a
result of the inability, refusal or failure to pay of the Primary Insurers for
any reason whatsoever, including without limitation, any financial impairment,
insolvency or liquidation.
This Policy does not apply to claims excluded by
the NUCLEAR RISKS EXCLUSION CLAUSE AVN 38B;
the NOISE AND POLLUTION AND OTHER PERILS EXCLUSION CLAUSE AVN 46B applicable as
per Primary Policy;
the DATE RECOGNITION EXCLUSION CLAUSE AVN 2000A, with write backs as per the
Date Recognition Limited Coverage Clause AVN 2001A/AVN 2002A, but as regards
Contingent policies writeback clauses amended in accordance with standard
the CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999 EXCLUSION CLAUSE AVN 72
the ASBESTOS EXCLUSION CLAUSE 2488 AGM00003
to this Policy.
the event of the coverage provided under the Extended Coverage Endorsement
(Aviation Liabilities) specified in Item 3 of the Policy Schedule contained in
the Primary Policy is cancelled or withdrawn for any reason by the primary
insurers this Policy is extended to apply as primary insurance to the fullest
extent of the coverage provided by the said Endorsement including the Insured’s
to the passengers (and for their baggage and personal effects) of any aircraft
operator to whom the Primary Policy affords cover for liability to its
passengers arising out of its operation of aircraft;
for cargo and mail while it is on board the aircraft of any aircraft operator
to whom the Primary Policy affords cover for liability for such cargo and mail
arising out of its operation of aircraft
always to the Total Limits stated in Item 4 (b) of the Policy Schedule.
extension of coverage provided by this Special Provision shall cease at such
time as the Insured reinstates coverage under the Primary Policy, said date to
be advised to Insurers, and an additional premium, shall be due hereunder for
the period this special provision is on risk, subject no losses during the
term "Ultimate Net Loss" means the amount payable in settlement of
the liability of the Insured after making deductions for all recoveries and
other valid and collectible insurances, excepting however the Primary Policy,
and shall exclude all Costs.
term "Costs" means interest accruing after entry of judgement,
investigation, adjustment and legal expenses (excluding, however, all office
expenses of the Insured, all expenses for salaried employees of the Insured and
general retainer fees for counsel normally paid by the Insured).
Policy is non-cancellable except by mutual agreement between Insured and
Insurers hereon, however all cover hereunder in respect of the deletion of
sub-paragraph (a) of Clause AVN 48B is automatically terminated
upon the hostile detonation of any weapon of war employing atomic or nuclear
fission and/or fusion or other like reaction or radioactive force or matter
wheresoever or whensoever such detonation may occur and whether or not the
Insured Aircraft may be involved.
THAT if an Insured Aircraft is in the air when (a) occurs, then the cover
provided by this Policy (unless otherwise cancelled, terminated or suspended)
shall continue in respect of such an Aircraft until completion of its first
landing thereafter and any passengers have disembarked.
Notwithstanding the above, if the Insured
elects to pay the premium in quarterly instalments then Insurers reserve the
right to issue 30 (thirty) days notice of cancellation in the event of
non-payment of the due instalment. Such notice shall be given by the Insurers
to the Insured via the address set forth in Item 8. of the Policy Schedule.
notwithstanding the above, it is agreed that the Insured has the rights to
cancel this Policy at pro rata policy terms in the event of ICAO initiative or
any similar option being rendered available to the Insured hereon and which
they may choose to take up.
Incurring of Costs
the event of claim or claims arising which appear likely to exceed the Primary
Limit, no Costs shall be incurred by the Insured without the consent of the
Apportionment of Costs
incurred by or on behalf of the Insured with the consent of the Insurers, and
for which the Insured is not covered by the Primary Insurers, shall be
apportioned as follows:-
Should any claim or claims become adjustable prior to the commencement of trial
for not more than the Primary Limit, then no Costs shall be payable by the
Should, however, the amount for which the said claim or claims may be so
adjustable exceed the Primary Limit, then the Insurers, if they consent to the
proceedings continuing, shall contribute to the Costs incurred by or on behalf
of the Insured in the ratio that their proportion of the Ultimate Net Loss as
finally adjusted bears to the whole amount of such Ultimate Net Loss.
In the event that the Insured elects not to appeal a judgement in excess of the
Primary Limit the Insurers may elect to conduct such appeal at their own cost
and expense and shall be liable for the taxable court costs and interest
incidental thereto, but in no event shall the total liability of the Insurers exceed
their limits of liability as provided for herein, plus the expenses of such
Application of Recoveries
recoveries or payments recovered or received subsequent to a loss settlement
under this Policy shall be applied as if recovered or received prior to such
settlement and all necessary adjustments shall then be made between the Insured
and the Insurers, provided always that nothing in this Policy shall be
construed to mean that losses under this Policy are not payable until the Insured's
Ultimate Net Loss has been finally ascertained.
Attachment of Liability
to pay under this Policy shall not attach unless and until the Primary Insurers
shall have admitted liability for the Primary Limit or unless and until the
Insured has by final judgement been adjudged to pay an amount which exceeds
such Primary Limit and then only after the Primary Insurers have paid or been
held liable to pay the full amount of the Primary Limit.
Maintenance of Primary Policy
is a condition of this Policy that the Primary Policy shall be maintained in
full effect during the currency of this Policy
except for any reduction or exhaustion of the aggregate limits contained
therein solely by payment of claims in respect of occurrences during the Policy
except as otherwise provided herein,
failure to maintain the Primary Policy in full effect shall not invalidate
cover under this Policy but in event of such failure the Insurers shall only be
liable to the same extent as they would have been had the Primary Policy been
maintained in full effect.
the extent of the coverage provided by this Policy, this Policy is subject to
the same warranties, terms, conditions, definitions and exclusions (except as
regards the premium, the obligation to investigate and defend, the renewal
agreement, if any, the amount and limits of liability other than the deductible
or self-insurance provision where applicable, AND EXCEPT AS OTHERWISE PROVIDED
HEREIN) as are contained in or may be added to the Primary Policy prior to the
happening of an occurrence for which claim is made hereunder.
the extent that the Primary Policy incorporates the provisions of contracts and
agreements entered into by the Insured this Policy shall likewise apply.
Notification of Claims
the event of an occurrence likely to give rise to a claim hereunder notice
shall be given by the Insured to the Insurers via the address set forth in Item
8. of the Policy Schedule as soon as reasonably possible.
False or Fraudulent Claims
the Insured shall make any claim, knowing the same to be false or fraudulent as
regards amount or otherwise, this Policy shall become void and all claims
hereunder shall be forfeited.
Law and Jurisdiction
Policy shall be governed by and construed in accordance with the law of Taiwan
Republic of OOOO and each party agrees to submit to the exclusive jurisdiction
of the Courts of Taiwan Republic of OOOO.
Variation in Risk
there be any change in the operation of the Insured which might reasonably be
regarded by the Insurers as increasing their risk in degree or frequency,
immediate notice thereof shall be given to the Insurers.
of all additions of aircraft as required to be given under the Primary Policy
shall also be given to Insurers hereon.
RISKS EXCLUSION CLAUSE
This Policy does not cover:
loss of or destruction of or damage to any property whatsoever or any loss or
expense whatsoever resulting or arising therefrom or any consequential loss
any legal liability of whatsoever nature
or indirectly caused by or contributed to by or arising from:
the radioactive, toxic, explosive or other hazardous properties of any
explosive nuclear assembly or nuclear component thereof;
the radioactive properties of, or a combination of radioactive properties with
toxic, explosive or other hazardous properties of, any other radioactive
material in the course of carriage as cargo, including storage or handling
ionising radiations or contamination by radioactivity from, or the toxic,
explosive or other hazardous properties of, any other radioactive source whatsoever.
It is understood and agreed that such radioactive material or other radioactive
source in paragraph (1)(b) and (c) above shall not include:
depleted uranium and natural uranium in any form;
radioisotopes which have reached the final stage of fabrication so as to be
usable for any scientific, medical, agricultural, commercial, educational or
This Policy, however, does not cover loss of or destruction of or damage to any
property or any consequential loss or any legal liability of whatsoever nature
with respect to which:
the Insured under this Policy is also an insured or an additional insured under
any other insurance policy, including any nuclear energy liability policy; or
any person or organisation is required to maintain financial protection
pursuant to legislation in any country; or
the Insured under this Policy is, or had this Policy not been issued would be,
entitled to indemnification from any government or agency thereof.
Loss, destruction, damage, expense or legal liability in respect of the nuclear
risks not excluded by reason of paragraph (2) shall (subject to all other
terms, conditions, limitations, warranties and exclusions of this Policy) be
covered, provided that:
(i) in the case of any claim in respect of
radioactive material in the course of
as cargo, including storage or handling incidental thereto, such carriage shall
in all respects have complied with the full International Civil Aviation
Organisation "Technical Instructions for the Safe Transport of Dangerous
Goods by Air", unless the carriage shall have been subject to any more
restrictive legislation, when it shall in all respects have complied with such
this Policy shall only apply to an incident happening during the period of this
Policy and where any claim by the Insured against the Insurers or by any
claimant against the Insured arising out of such incident shall have been made
within three years after the date thereof;
in the case of any claim for the loss of or destruction of or damage to or loss
of use of an aircraft caused by or contributed to by radioactive contamination,
the level of such contamination shall have exceeded the maximum permissible
level set out in the following scale:
Maximum permissible level
Health and Safety Regulations) surface contamination
over 300 cm2)
gamma and low toxicity alpha Not exceeding 4
other emitters Not exceeding 0.4
the cover afforded hereby may be cancelled at any time by the Insurers giving
seven days' notice of cancellation.
AND POLLUTION AND OTHER PERILS EXCLUSION CLAUSE
This Policy does not cover claims directly or indirectly occasioned by,
happening through or in consequence of:-
noise (whether audible to the human ear or not), vibration, sonic boom and any
phenomena associated therewith,
pollution and contamination of any kind whatsoever,
electrical and electromagnetic interference,
interference with the use of property;
caused by or resulting in a crash fire explosion or collision or a recorded
in-flight emergency causing abnormal aircraft operation.
With respect to any provision in the Policy concerning any duty of Insurers to
investigate or defend claims, such provision shall not apply and Insurers shall
not be required to defend
claims excluded by Paragraph 1 or
a claim or claims covered by the Policy when combined with any claims excluded
by Paragraph 1 (referred to below as "Combined Claims").
In respect of any Combined Claims, Insurers shall (subject to proof of loss and
the limits of the Policy) reimburse the Insured for that portion of the
following items which may be allocated to the claims covered by the Policy:
damages awarded against the Insured and
defence fees and expenses incurred by the Insured.
Nothing herein shall override any radioactive contamination or other exclusion
clause attached to or forming part of this Policy.
RECOGNITION EXCLUSION CLAUSE
Policy does not cover any claim, damage, injury, loss, cost, expense or
liability (whether in contract, tort, negligence, product liability,
misrepresentation, fraud or otherwise) of any nature whatsoever arising from or
occasioned by or in consequence of (whether directly or indirectly and whether wholly
the failure or inability of any computer hardware, software, integrated
circuit, chip or information technology equipment or system (whether in the
possession of the Insured or of any third party) accurately or completely to
process, exchange or transfer year, date or time data or information in
connection with any change of year, date or time; whether on or before or after
such change of year, date or time;
any implemented or attempted change or modification of any computer hardware,
software, integrated circuit, chip or information technology equipment or
system (whether in the possession of the Insured or of any third party) in
anticipation of or in response to any such change of year, date or time, or any
advice given or services performed in connection with any such change or
any non-use or unavailability for use of any property or equipment of any kind
whatsoever resulting from any act, failure to act or decision of the Insured or
of any third party related to any such change of year, date or time;
any provision in this Policy concerning any duty of Insurers to investigate or
defend claims shall not apply to any claims so excluded.
(RIGHTS OF THIRD PARTIES) ACT 1999 EXCLUSION CLAUSE
rights of a person who is not a party to this insurance or reinsurance to
enforce a term of this insurance or reinsurance and/or not to have this
insurance or reinsurance rescinded, varied or altered without his consent by virtue
of the provisions of the Contracts (Rights of Third Parties) Act 1999 are
excluded from this insurance or reinsurance.
policy does not cover any claims of any kind whatsoever directly or indirectly
relating to, arising out of or in consequence of:
actual, alleged or threatened presence of asbestos in any form whatsoever, or
any material or product containing, or alleged to contain, asbestos; or
obligation, request, demand, order, or statutory or regulatory requirement that
any Insured or others test for, monitor, clean up, remove, contain, treat,
neutralize, protect against or in any other way respond to the actual, alleged
or threatened presence of asbestos or any material or product containing, or
alleged to contain, asbestos.
this exclusion shall not apply to any claim caused by or resulting in a crash
fire explosion or collision or a recorded in-flight emergency causing abnormal
any other provisions of this Policy, Insurers will have no duty to investigate,
defend or pay defence costs in respect of any claim excluded in whole or in
part under paragraphs 1 or 2 hereof.
OTHER TERMS AND CONDITIONS OF THE POLICY REMAIN UNCHANGED.
AND EMBARGO CLAUSE
anything to the contrary in the Policy the following shall apply:
If, by virtue of any law or regulation which is applicable to an Insurer at the
inception of this Policy or becomes applicable at any time thereafter,
providing coverage to the Insured is or would be unlawful because it breaches
an embargo or sanction, that Insurer shall provide no coverage and have no
liability whatsoever nor provide any defence to the Insured or make any payment
of defence costs or provide any form of security on behalf of the Insured, to
the extent that it would be in breach of such law or regulation.
In circumstances where it is lawful for an Insurer to provide coverage under
the Policy, but the payment of a valid and otherwise collectable claim may
breach an embargo or sanction, then the Insurer will take all reasonable
measures to obtain the necessary authorisation to make such payment.
In the event of any law or regulation becoming applicable during the Policy
period which will restrict the ability of an Insurer to provide coverage as
specified in paragraph 1, then both the Insured and the Insurer shall have the
right to cancel its participation on this Policy in accordance with the laws
and regulations applicable to the Policy provided that in respect of
cancellation by the Insurer a minimum of 30 days notice in writing be given. In
the event of cancellation by either the Insured or the Insurer, the Insurer
shall retain the pro rata proportion of the premium for the period that the
Policy has been in force. However, in the event that the incurred claims at the
effective date of cancellation exceed the earned or pro rata premium (as
applicable) due to the Insurer, and in the absence of a more specific provision
in the Policy relating to the return of premium, any return premium shall be
subject to mutual agreement. Notice of cancellation by the Insurer shall be
effective even though the Insurer makes no payment or tender of return premium.
SUBJECT TO THE
POLICY TERMS, CONDITIONS, LIMITATIONS AND EXCLUSIONS.