RIOTS, STRIKES, MALICIOUS DAMAGE AND CIVIL COMMOTIONS ENDORSEMENT (Code : 4.1B / 2007)

This Endorsement is attached to and forms an integral part of :

Policy Number.    :
Insured’s Name    :

It is hereby agreed and declared that:

a)    This Policy to the contrary and subject to payment of additional premium, the Insurer agrees to extend this insurance as provided in this Endorsement;
b)    notwithstanding anything which may be defined in any laws or regulations to the contrary, for the purpose of this Endorsement, all terminology printed in italics shall be deemed to mean as defined in the MEMORANDUM of this

1.    EXTENSIONS
This insurance is extended to cover :

•    Physical damage to the property and/or interest insured  directly caused by one or more of the following perils:

1.1.    Riots
1.2.    Strikes
1.3.    Locked-out Workers
1.4.    Malicious  Acts
1.5.    Civil Commotions
1.6.    Preventive Acts related to perils 1.1 up to and including 1.5.

•    Physical loss of the property and/or interest insured  directly caused by:

1.7.    Looting occurring during Riots or Civil Commotions

provided that any of these perils does not develop in an uninterrupted chain of events into one or more of the excluded perils.

2.    EXCLUSIONS
This extension does not cover all physical loss of or damage to the property and/or interest insured including loss or damage by fire  directly or indirectly caused by or contributed to or arising from or in consequence of 
2.1.    one or more of the following perils:
Insurrection/Popular Rising, Usurped Power, Revolution, Rebellion, Military Power, Invasion, Civil War, War and Hostilities, Subversive Acts, Terrorism, Sabotage or Looting (except Looting occurring during Riots or Civil Commotions).
In any action, suit or other proceedings, where the Insurer alleges that loss or damage is directly or indirectly caused by one or more of the excluded perils under this Section, the burden of proof that such loss or damage is covered shall be on the Insured.

2.2.    Total or partial cessation of works, or retarding or interruption or cessation of any process or operation.

2.3.    Permanent or temporary dispossession resulting from confiscation,  commandeering or  requisition  by  any  lawfully constituted authority or body, or unlawful occupation by any person.

2.4.    Business interruption, or any kind of consequential loss.


3.    DEDUCTIBLES
3.1.    For loss or damage arising from Item 1.1. Riots upto Item 1.4. Malicious Acts and Item 1.7. Looting occurring during Riots, including Preventive Acts thereof as specified in this Endorsement, the insured shall bear 15% (fifteen per cent) of the adjusted loss subject to minimum of Rp. 10,000,000 (ten million Rupiah) for each claim payable under this Endorsement.
3.2.    For loss or damage arising from Item 1.5. Civil Commotions and Item 1.7. Looting occurring during Civil Commotions, including Preventive Acts thereof as specified in this Endorsement, the insured shall bear 25% (twenty five per cent) of the adjusted loss subject to minimum of Rp. 100,000,000 (one hundred million Rupiah) for each claim payable under this Endorsement.

4.    CANCELLATION
This Endorsement may be cancelled at any time by the Insurer by giving written notice through Registered Letter, Facsimile, Telex or Telegram to the Insured at his last known address.
The Insurer is relieved from all liability under this Endorsement 3 (three) x 24 (twenty four) hours after the date of dispatch of written notice at 12.00 hours local time where the insured object is located.
As a result of this cancellation, the Insurer is obliged to return prorata premium for the unexpired period of insurance.

5.    MEMORANDUM
For the purpose of this Endorsement,  notwithstanding anything which may be defined in any laws or regulations to the contrary, for the purpose of this Endorsement, all terminology printed in italics shall be deemed to mean the following:
5.1.    Riots is an act of a group of at least 12 (twelve) persons, who in the execution of their common purpose cause public disturbance tumultuously with violence and damage to the property of others, not amounting to Civil Commotions or not appertaining to the act of Terrorism
5.2.    Strikes is a deliberate act  of damage, by a group of workers of at least 12 (twelve) persons or one half of the entire workforce (if the total number of workforce is less than 24 persons), refusing to work as usual in an attempt to force the employer to accept their demands or to protest against any terms of employment enforced by the employer provided that such act is not appertaining to the act of Terrorism
5.3.    Locked-out Workers is a deliberate act of damage, by a group of workers of at least  12 (twelve) persons or one half of the entire workforce (if the total number of workforce is less than twenty-four persons), to protest against the termination or suspension of a fellow employee by the employer provided that such act is not appertaining to the act of Terrorism
5.4.    Malicious Acts is an act of any person(s) deliberately causing damage to the property of others  driven  by  vengeance,  hatred , anger  or  vandalistic,  except   such  acts   done  by the employee(s) of the Insured, or any person(s) on behalf of the Insured, or by person(s) entrusted by the Insured to maintain or keep such property, or by thieves/robbers/looters provided that such act is not appertaining to the act of Terrorism
5.5.    Civil Commotions is an act of a large number of people acting together disrupting public peace and disturbance tumultuously with violence and a chain of destruction of a large number of properties, indicated by the cessation of more than one half of the normal activity of commercial/shopping or business areas or schools or public transportation in one city for at least 24 (twenty-four ) hours consecutively commencing immediately before, during or after the event provided that such act is not appertaining to the act of Terrorism
5.6.    Looting is the appropriation of property belonging to another by any person (excluding those employed by or under the control of the Insured), with the intention of permanently depriving that other of it.

All other terms and conditions of the Policy remain unchanged.
(This wording is a translation of the original version in Bahasa Indonesia; in the event of any dispute arising from the interpretation of any meaning herein, the terms and conditions shall be interpreted according to the original Bahasa Indonesia version).

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RIGHT OF RESOURCES CLAUSE

It is noted and agreed that in the event of claim arised, the Insured has right to utilize materials for the purpose of continuity production; subject to claim has been reported to Insurer.

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REPLACEMENT WITH SMALLER AND/OR CHEAPER PROPERTY

Notwithstanding the provisions of Clause 4.3, Basis of Settlement Clause 4.4.4 is extended to include the following paragraph.
If any lost or destroyed Property Insured is replaced by smaller and/or cheaper property, then the Insurer shall pay to the Insured, in addition to the cost of such smaller and/or cheaper property, the difference between the cost of reinstatement of the lost or destroyed Property Insured that would have been incurred if such property had been reinstated in accordance with the Policy Definition (4.1) of “Reinstatement Value” and the cost of the said smaller and/or cheaper property. This paragraph shall override the limitations of the Output Replacement Clauses, to the extent that they may conflict.

The provisions of Average/Under insurance Condition 7.2 do not apply to this endorsement.

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RETURN OF PREMIUM CLAUSE

In the event of the gross profit earned (or a proportionately increase multiple thereof when the maximum indemnity period exceeds twelve months) during the accounting period of twelve months most nearly concurrent with any period of insurance, as certified by the Insured's auditors, being less than the sum insured thereon a pro rata return of premium not exceeding 50 percent 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 said difference as is not due to such damage.

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REPLACEMENT VALUE CLAUSE.

It is hereby declared and agreed that in the event of the property insured  of the within policy being destroyed or damaged the basis upon  which the amount payable under this policy is to be calculated shall be the cost of replacing with property of the same kind or type but not superior to or more extensive than the insured property subject to the following special provisions and subject also to the terms and conditions of the policy except insofar as the same may be varied hereby.

Special Conditions :
1.    The work replacement or reinstatement (Which may carried out upon another site and in any manner suitable to the requirements of the Insured ,subject to the liability of the Company not being thereby increased) must be commenced and carried out with reasonable dispatch and in any case must be completed within 12 months after the destruction or damage or within such further time as the company  may (during the said 12 Months) in writing allow : otherwise no payment beyond the amount which would have been payable under the policy, if this memorandum had not been incorporated therein, shall be made.
2.    Until expenditure has been incurred by the Insured in replacing or reinstating the property destroyed or damaged , the company shall not be liable for any payment in excess of the amount which would have been payable under the policy if this memorandum had not been incorporated therein.
3.    If at the time of replacement or reinstatement the sum representing the cost which would have incurred  in replacement or reinstatement if the whole of the property covered had been destroyed ,exceeds the sum insured thereon at the breaking out of a by fire or at the commencement of any destruction of or damage to such property by any other peril insured against by this Policy, then the Insured shall be considered as being his own insurer for the excess and shall bear a rateable  proportion  of the loss accordingly .Each item of the Policy (If more than one) to which this memorandum applies shall be separately subject to the foregoing provision.
4.    This memorandum shall be without  force or effect if ;
(a)    The Insured fails to intimate to the company within 6 months from the date destruction or damage or such further time as the company may in writing allow his intention to replace or reinstate the property destroyed or damaged.
(b)    The Insured is unable or unwilling to replace or reinstate the property destroyed or damaged on the same or another site.

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REPLACEMENT WITH DIFFERENT PROPERTY

Notwithstanding the provisions of Basis of Settlement Clauses, if the Insured elects to reinstate destroyed Property Insured with dissimilar property whether or not to be used for a similar purpose as the destroyed Property Insured, the Insurer shall pay the lesser of :
the cost of the dissimilar property, or
an amount equal to the replacement cost which would have been payable if the destroyed Property Insured had been reinstated by similar property in a condition equal to but not better or more extensive than its condition when new.

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REPLACEMENT COST CLAUSE

It is understood that in the event of loss or damage settlement shall be based upon the cost of repairing, replacing, or reinstating (whichever is the less) with material of like kind and quality without deduction for depreciation, subject to the following provisions:
(a)    The repairs, replacement or reinstatement (all herein after to as “replacement” must be executed with due diligence and dispatch).
(b)    Until replacement has been effected the amount of liability under this Policy in respect of loss shall be limited to the actual cash value at the time of loss.
(c)    If replacement with material of like kind and quality is restricted or prohibited any by laws, ordinary or law, any increased cost of replacement due there to shall not be covered by this endorsement.
(d)    The underwriters liability for loss under this Policy including this Endorsement shall not exceed the smallest of the following amounts.
(e)    The amount of the Policy applicable to the destroyed or damage property.
(f)    The replacement cost of the property of any part thereof identical with such property and intended for the same occupancy and use.
(g)    The  amount actually and necessarily expended in replacing said property or any part thereof.

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REPLACEMENT FIRE PROTECTION EQUIPMENT (following Fire Loss)

The insured by this Policy extends to cover loss of or damage to the fire extinguishing appliances caused by the Insured perils. This extension is deemed to include the cost reasonably incurred of refilling the fire extinguishing appliances providing always that such cost is incurred as a direct result of the use of the fire extinguishing appliances for the extinguishment of fire endangering the safety of the Insured  property. The Company will not be liable for the first for each and every loss in respect of the costs of refills. Provided always that the liability of the Company in respect of such wages and costs shall be limited to those necessarily and reasonable incurred in extinguishing fires at or adjoining the situation of the property insured by this policy or immediately threatening to involve such property.
Provided further that otherwise the insurance under this endorsement and the policy shall be subject to all the terms, limitations, stipulations, exclusions, provisos and exceptions printed on, expressed in, endorsed upon or attached to the policy and provided also that all of the conditions of the policy (except in so far as they may be hereby varied) shall apply as if they had been incorporated herein.

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RENT CLAUSE

It is hereby noted and agreed that in the event that the rented building cannot be occupied or used for at least 72 hours due to damage or destruction following a fire or other peril insured against, subject to the following provisions, the Company will indemnify the insured for the rent already paid to the landlord for the rental period that has not elapsed from the time that the building cannot reasonably be occupied or used.

The indemnity payable by the Company in this case will be calculated taking into account the compensation received by the insured from the landlord.

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REPAIR CLAUSE

This policy is held to indemnify loss or damage caused by fault or work or lack of skill during the work of repair and cleaning to the subject matter of the insurance

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REMOVAL PERMISSION CLAUSE

It is hereby understood and agreed that this policy extends to cover loss and/or damage to property insured hereunder when such property is moved from locations or premises affected by the perils insured hereunder.

It is further agreed that the policy extends to cover such property in any other place to which the insured property has been moved in order to preserve it from the perils insured hereunder.

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REMOVAL PERMIT CLAUSE

It is hereby understood and agreed that this policy shall be extended to cover against all direct loss and/or damage caused by the removing of property hereunder insured, from locations or premises effected by the perils insured hereunder, and also to cover during the term of ten (10) days, such property in any other place where it should be necessary to move the insured property in order to preserve it from the perils insured hereunder or to maintain if safe from the perils of the occurrence.

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REMOVAL DEBRIS

The insurance under this Section includes in addition to the Sum Insured stated in the Schedule all costs and expenses necessarily incurred by the Insured for :

a.    Removing the debris of (including silt and mud and the like) and the disposal of such
b.    Dismantling or demolishing
c.    Shoring up or propping
d.    Dewatering

Any property insured which is or could be imminently lost or damaged and which forms part of the indemnity provided by this Policy

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REMOVAL OF DEBRIS CLAUSE (first loss limit of US$. XX,000.-)

In consideration of the payment of an additional premium this policy extends to indemnify the Insured in respect of:
The cost of removal of debris, demolition and any temporary repairs necessary (including the Insured's legal liability for the cost of removal of debris, demolition, and temporary repairs in regard to adjoining premises, roadways or waterways, as well as on the site) consequent upon the destruction of or damage to any property, insured by the Insured's Fire Policy (or Policies) occasioned by fire or any other peril thereby insured against.
Provided always:
(a)    That such cost is not recoverable under any other Policy of insurance;
(b)    That the indemnity afforded by this insurance shall not apply to or included liability assumed by the Insured under any agreement entered into after the commencing date of this insurance unless such liability would have attached to the Insured in the absence of such agreement.
(c)    The liability of the company under this clause in respect of any time shall in no case exceed US$. 100,000.- of the sum insured thereby.

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REMOVAL OF DEBRIS CLAUSE (10% of TSI and within the Sum Insured)

On first loss basis
(a)    The insurance under this heading is not subject to the Average Clause:
In consideration of the payment of an additional premium this policy extends to indemnify the Insured in respect of :
The cost of removal of debris, demolition and any temporary repairs necessary (including the Insured's legal liability for the cost of removal of debris, demolition, and temporary repairs in regard to adjoining premises, roadways or waterways, as well as on the site) consequent upon the destruction of or damage to any property, insured by the Insured' s Fire Policy (or Policies) occasioned by fire or any other perils thereby insured against.
Provided always :
-    that such cost is not recoverable under any other Policy of Insurance;
-    that the indemnity afforded by this insurance shall not apply to or included liability assumed by the Insured under agreement entered into after the commencing date of this insurance unless such liability would have attached to the Insured in the absence of such agreement.
(b)    Sum insured : within the sum insured
which in no case shall exceed 10% of the total sum insured on building(s) and/or contents.

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REMOVAL OF DEBRIS CLAUSE (LIMIT Rp. XXX.000.000,-)

On the Cost and Expenses necessarily incurred by the Insured in the removal of debris dismantling or demolishing shoring up or propping of the portion or portions of the property insured by this Policy destroyed or damage by fire or by any other peril hereby insured.
The liability of the Company under this clause and the Policy in respect of any item shall in no case exceed the sum insured thereby.

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REMOVAL OF DEBRIS CLAUSE

On the Cost and Expenses necessarily incurred by the Insured in the removal of debris dismantling or demolishing shoring up or propping of the portion or portions of the property insured by this Policy destroyed or damage by fire or by any other peril hereby insured.
The liability of the Company under this clause and the Policy in respect of any item shall in no case exceed 10% (ten percent) of the sum insured.

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REINSTATEMENT VALUE CLAUSE

It is hereby declared and agreed that in the event of the property insured being destroyed the basis upon which the amount payable under ………………………….. of the Policy is to be calculated shall be the cost of replacing or reinstating on the same site property of the same kind or type but not superior to or more extensive than the insured property when new, subject to the following Special provisions and subject also to the terms and conditions of the Policy except insofar as the same may be varied hereby.

Special Provisions
1.    The work of replacement or reinstatement (which may be carried out upon another site and in any manner suitable to the requirements of the Insured subject to the liability of Insurer not being thereby increase) must be commenced and carried out with reasonable dispatch and in any case must be completed within 12 month after the destruction or damage or within such further time as the Insurer may (during the said 12 month) in writing allow otherwise no payment beyond the amount which would have been payable under the Policy if this memorandum had not been incorporated therein shall be made.
2.    Until expenditure has been insured by the Insured in replacing or reinstating the property destroyed or damaged the Insurer shall not be liable for any payment in excess of the amount which would have been payable under the Policy if this memorandum had not been incorporated therein.
3.    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 thereon at the breaking out of any fire or at the commencement of any destruction of or damage to such property by any other peril insured against by this Policy the Insured shall be considered as being his own insurer for the excess and shall bear a ratable proportion of the loss accordingly. Each item of the Policy (if more than one) to which this memorandum applies shall be separately subject to the foregoing provision.
4.    No payment beyond the amount which would have been payable under the policy if this memorandum had not been incorporated therein shall be made if at the time of any destruction or damage to any property insured hereunder such property shall be covered by any other insurance effected by or on behalf or the Insured which is not upon the identical basis or reinstatement set forth herein.
5.    This memorandum shall be without force or effect if
a.    The insured fails to intimate to the Insurer within 6 month from the date of destruction or damage such further time as the insurer may in writing allow his intention to replace or reinstate the property destroyed or damaged.
b.    The insurer unable or unwilling to replace or reinstate the property destroyed or damaged on the same or another site.

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