Club Marine - Allianz

Club Marine Business and Marina OperatorsPackageProduct Disclosure Statement and Policy Document

POL555 0915 Club Marine Business & Op Policy_D6.indd 1POL555 0915 Club Marine Business & Op Policy_D6.indd 1 27/01/16 12:00 PM27/01/16 12:00 PM

General InformationThe General Information set out below is provided for your information only. It does not form part of the insurance contract

with you, and is not part of the policy.

Nothing contained in the General Information imposes contractual obligations on you or us, or creates contractual rights.

These are contained in the policy.

Claims madeSection 13 of the policy operates on a ‘claims made and notifi ed’ basis. This means that the policy section covers you

for claims made against you and notifi ed to us during the period of insurance.

The policy section does not provide cover in relation to:

• acts, errors or omissions actually or allegedly committed prior to the retroactive date of the policy (if such a date

is specifi ed);

• claims made after the expiry of the period of insurance even though the event giving rise to the claim may have

occurred during the period of insurance;

• claims notifi ed or arising out of facts or circumstances notifi ed (or which ought reasonably to have been notifi ed) under

any previous policy;

• claims made, threatened or intimated against you prior to the commencement of the period of insurance;

• facts or circumstances of which you fi rst became aware prior to the period of insurance, and which you knew or ought

reasonably to have known had the potential to give rise to a claim under this policy section;

• claims arising out of circumstances noted on the proposal form for the current period of insurance or on any previous

proposal form.

Where during the period of insurance you give notice in writing to us of any facts that might give rise to a claim against you

as soon as reasonably practicable after you become aware of those facts but before the expiry of the period of insurance,

you may have rights under Section 40(3) of the Insurance Contracts Act 1984 to be indemnifi ed in respect of any claim

subsequently made against you arising from those facts, notwithstanding that the claim is made after the expiry of the

period of insurance. Any such rights arise under the legislation only. The terms of the policy section and the effect of the

policy section is that you are not covered for claims made against you after the expiry of the period of insurance.


1

Table of contentspage

Introduction 2

Summary of the Available Sections 3

General Defi nitions 9

General Exclusions 12

General Conditions 15

Section One – Marina Liability 20

Section Two – Material Damage

(Building, Contents And Stock) 26

Section Three – Business Interruption 35

Section Four – Watercraft Repairer’s Liability 40

Section Five – Public And Products Liability 47

Section Six – Vessels, Piers And Pontoons 53

Section Seven – Crime 61

Section Eight – General Property 65

Section Nine – Commercial Motor 67

Section Ten – Employee Dishonesty 74

Section Eleven – Machinery Breakdown 76

Section Twelve – Taxation Audit Costs 80

Section Thirteen – Occupational Liability 82

Section Fourteen – Transit 89


2

The Policy is made up of the following sections:

Section One – Marina Liability

Section Two – Material Damage (Building, Contents and

Stock)

Section Three – Business Interruption

Section Four – Watercraft Repairer’s Liability

Section Five – Public and Products Liability

Section Six – Vessels, Piers and Pontoons

Section Seven – Crime

Section Eight – General Property

Section Nine – Commercial Motor

Section Ten – Employee Dishonesty

Section Eleven – Machinery Breakdown

Section Twelve – Taxation Audit Costs

Section Thirteen – Occupational Liability

Section Fourteen – Transit

If Your Occupation, as shown in the Schedule, is related

to or in connection with a Marina Business (as defi ned in

Section One), all other sections are available to You once

You have taken up Section One – Marina Liability and

Section Five – Public and Products Liability. However, if:

• Your Occupation as shown in the Schedule is related

to or in connection to a Marina Business but You have

not taken up both Section One and Section Five; or

• Your Occupation as shown in the Schedule is not

related or not connected to a Marina Business;

the automatic coverage mentioned above is not available

and You are only covered for the Sections that are

specifi ed as applicable in the Schedule.

Additionally, please note that You will not be allowed

to take out only a single Section of the Policy.

These sections provide different insurance coverage as

detailed in each section of the Policy. If the defi nitions

in any section is inconsistent with any of the general

defi nitions in the Policy, the defi nitions in the section

shall prevail in respect of cover under that section to the

extent of any inconsistency.

Each section (comprising the information contained

in the Schedule, in the Policy wording and in any

endorsement) must be read in conjunction with the

General Conditions and General Exclusions and other

documents setting out the terms of the Policy, as though

it were a separate policy.

You are not automatically insured under each section.

You are only covered for the sections that are specifi ed

as applicable in the Schedule.

IntroductionWelcome and thank You for choosing the Club Marine

Business and Marina Operators Package Policy.

About Club Marine and AllianzThe insurer of this product is Allianz Australia Insurance

Limited ABN 15 000 122 850 (Allianz) AFS Licence No.

234708.

Allianz is one of Australia’s largest general insurers.

We utilise years of local expertise, combined with global

experience to offer a wide range of products and services

to Our customers. As a member of the worldwide Allianz

Group, We are committed to continuous improvement

of Our products and services and strive to achieve this

through knowledge transfer within the Group, dedicated

technical research units, sharing globally new product

developments and a wide range of risk management

services.

Club Marine Limited AFS Licence No. 236916 (ABN 12 007

588 347) of 40 The Esplanade Brighton, Victoria 3186 is

an Australian organisation that specialises in providing

insurance products for pleasurecraft and commercial

leisure craft. Evolving from a background of over 40

years as a specialist in pleasurecraft insurance, Club

Marine provides boat owners and their families with an

integrated range of services designed to maximise their

enjoyment on the water.

Club Marine is a related body corporate and an agent of

Allianz. Please refer to the Financial Services Guide of

Club Marine and its authorised representatives for full

details of their authority and contact Club Marine in the

fi rst instance.

About this insuranceThis is an important document. You should read it

carefully before making a decision to purchase this

insurance.

It will help You to:

• decide whether this insurance will meet Your needs;

and

• compare it with other products You may be

considering.

Please note that any recommendation or opinion in this

document is of a general nature only and does not take

into account Your objectives, fi nancial situation or needs.

You need to decide if this insurance is right for You and

You should read all of the documents that make up the

Policy to ensure You have the cover You need.

Preparation date: 21/12/2015.


3

Summary of the available sectionsPlease note that this is a limited summary only and

not a full description of the covers. Each cover noted is

subject to terms, conditions, exclusions and limitations

that are not listed in the summary. You need to read the

cover sections and the policy to properly understand

the cover provided.

Section One – Marina LiabilityThis Section covers You for amounts that You are legally

liable to pay as compensation for certain Personal Injury

and/or Property Damage which occurs in connection

with Your Marina Business (as defi ned).

Section Two – Material Damage (Building, Contents and Stock)This Section covers You for loss or Damage to Your

covered buildings, their contents (including machinery

and electronic equipment), employees’ tools and

Watercraft in the open air at Your Situation(s). Note that

this Section will only cover loss or Damage to Watercraft

of a type that is not covered under Section Six – Vessels,

Piers and Pontoons, such as Damage caused by fi re,

earthquake and tropical cyclone.

Loss or Damage caused by theft to Property Insured at the

Situation(s) is only covered under Section Seven – Crime,

if included in the Schedule.

Section Two also provides a number of additional

benefi ts (with sub-limits), such as:

• employees’ tools of trade,

• expediting expenses,

• temporary removal (vehicles and contents) and

• Parts and Accessories in transit.

Section Three – Business InterruptionThis Section covers You for the consequential loss that

You sustain from an Event resulting in a claim under

Sections Two – Material Damage (Building, Contents

and Stock) or Seven – Crime.

Section Four –Watercraft Repairer’s LiabilityThis Section covers You for amounts You are legally liable

to pay as compensation for certain Property Damage and,

if included in the Schedule, certain Personal Injury which

occurs in connection with Your Watercraft Repair Activity

(as defi ned).

It also provides a number of optional benefi ts.

We only cover those parties shown in the Schedule unless

otherwise stated in the Policy as being a person or entity

entitled to cover.

We cover You for the Period of Insurance shown on the

Schedule and the maximum amount We will pay under

the Policy will not exceed the Sum Insured or the Limit of

Indemnity shown on the Schedule.


4

Section Ten – Employee DishonestyThis Section covers You for the loss of Your covered

property resulting from the fraudulent or dishonest

conduct of Your Employees.

Section Eleven – Machinery BreakdownThis Section covers You against the breakdown of Your

covered Machinery and Electronic Equipment (cover

for loss, Damage and boiler explosion not caused by

breakdown is available under Section Two – Material

Damage (Building, Contents and Stock).

Optional benefi ts for the restoration of data and

increased cost of working are also available.

Section Twelve – Taxation Audit CostsThis Section covers the costs of retaining professional

advisers to respond to a Tax Audit required by an

Australian statutory authority. This Section does not

cover fi nes or interest that You may have to pay as a

result of the Tax Audit.

Section Thirteen – Occupational LiabilityThis Section has three components:

a. Directors and Offi cers;

b. Errors and Omissions; and

c. Employment Practices Liability.

These will cover You for Claims You are legally liable to

pay as compensation for Wrongful Acts and Employment

Practices as defi ned.

For example:

a. where You have incorrectly issued certifi cation for

seaworthiness; or

b. where You have given incorrect advice in relation to

the modifi cation or specifi cation of a Watercraft; or

c. where You have made an error in the arrangement

of fi nance or insurance (no cover is provided for

“personal advice” in relation to any fi nancial product

covered by the Corporations Act 2001).

Section Fourteen – TransitThis Section covers loss or Damage to parts and

Watercraft while in Transit

No workers compensation cover

This Policy does not include workers compensation

cover. Such cover is compulsory for employers and You

should arrange separate insurance.

Section Five – Public and Products LiabilityThis Section covers You for amounts You are legally liable

to pay as compensation for certain Personal Injury and/

or Property Damage which occurs in connection with

Your Marine Business.

This Section also provides cover for Property Damage

to Your customers’ goods that You are legally liable for

up to a limit of $500,000 per Occurrence. This Section

also covers You for Property Damage that occurs to a

customer’s Watercraft as a result of faulty workmanship

during servicing (such as engine seizure if the oil was not

replaced during service).

Section Six – Vessels, Piers and PontoonsThis Section covers You for loss or Damage to

Your covered Vessels, Vessels that You display and

demonstrate for the purpose of sale and Your working

Vessels used exclusively in the course of Your Marine

Business, including any Vessel used for hire or reward.

In addition, this Section also covers Your fl oating Piers

and Pontoons. It also covers You for Your legal liability to

pay compensation to third parties for Damage or Injury

caused by Your Vessel(s) including Your legal liability to

pay compensation to third parties for Damage or Injury

caused by Your fl oating Piers and Pontoons.

Section Seven – CrimeThis Section covers You for theft of Your covered property,

loss of money and breakage of Glass. It also provides a

number of additional benefi ts, such as:

• employees’ tools of trade,

• replacement of locks and keys,

• temporary protection and

• Damage to window frames.

Section Eight – General PropertyThis Section covers You against Accidental Damage to

Your own covered property (such as Your tools of trade

and laptop computers) whilst away from Your Situation

in Australia.

Section Nine – Commercial MotorThis Section covers You for Damage to Your covered

Vehicles and Your liability to pay for Damage or Injury

caused by Your covered Vehicles to third parties (other

than injury covered by a CTP policy). This Section is

not designed to cover any privately-owned Vehicles

or Vehicles which are not primarily used for Your

Marine Business.


5

What is coveredWhere We have entered into a Policy with You, We will

insure You for:

• loss or Damage caused by one or more of the covered

insured events; and

• the other covered benefi ts, as set out in the Policy.

Other persons may be entitled to cover, but only if

specifi ed as so entitled and limited only to the extent and

interest specifi ed.

Cover is provided on the basis:

• that You have paid or agreed to pay Us the premium

for the cover provided;

• of the verbal and/or written information provided by

You which You gave after having been advised of Your

Duty of Disclosure.

If You failed to comply with Your Duty of Disclosure

or have made a misrepresentation to Us, We may be

entitled to reduce Our liability under the Policy in respect

of a claim and/or We may cancel Your Policy. If You have

told Us something which is fraudulent, We also have the

option of avoiding Your Policy (i.e. treating it as if it never

existed).

Your Duty of Disclosure and the consequences of

nondisclosure, are set out under the heading ‘Your Duty

of Disclosure’, on page 6.

Some words have special meaningsCertain words used in the Policy have special meanings.

The General Defi nitions section of this document on

pages 9, 10 and 11 contain such terms. In some cases,

certain words may be given a special meaning in a

particular Section of the Policy when used or in the other

documents making up the Policy.

Headings are provided for reference only and do not form

part of the Policy for interpretation purposes.

Understanding Your Policy and its important terms and conditionsWhen You enter into the Policy You confi rm and warrant

that You have read or will read the Policy documents

when provided to You.

Your obligation to comply with the Policy terms and conditionsYou are required to comply with the terms and

conditions of the Policy. Please remember that if You do

not comply with any term or condition, We may (to the

extent permitted by law) decline or reduce any claim

payment and/or cancel Your Policy.

Our contract with You Where We agree to enter into a Policy with You it is a

contract of insurance between Us and You (see the

defi nition of “You” for details of who is covered by this

term). The Policy consists of:

• this document which sets out the standard terms

of Your cover and its limitations;

• Your current Schedule issued by Us. The Schedule

is a separate document, which shows the insurance

details relevant to You. It may include additional

terms, conditions and exclusions relevant to You that

amend the standard terms of this document. Only

those Sections shown as covered in Your Schedule

are insured; and

• any other change to the terms of the Policy otherwise

advised by Us in writing (such as an endorsement or

Supplementary PDS). These written changes may vary

or modify the above documents.

These are all important documents and should be

carefully read together and kept in a safe place for future

reference.

We reserve the right to change the terms of the Policy

where permitted to do so by law.

Any new or replacement Schedule We may send You,

detailing changes to Your insurance or the Period of

Insurance, will become the current Schedule, which

You should carefully read and retain.

Cooling off period and cancellation rightsYou can exercise Your cooling off rights and cancel

the Policy within fourteen (14) days of the date You

purchased the Policy and receive a refund of the

premium paid, provided You have not exercised any right

or power under the Policy (e.g made any claim) and these

rights and powers have not ended.

We may deduct any reasonable administrative and

transaction costs incurred by Us that are reasonably

related to the acquisition and termination of the Policy

and any government taxes or duties We cannot recover,

from Your refund amount.

After the cooling off period has ended, You still have

cancellation rights, however We may deduct a pro rata

proportion of the premium for time on risk, plus any

reasonable administrative costs and any government

taxes or duties We cannot recover (refer to “2.

Cancellation rights” on page 15, for full details).


6

Minimum premiums may apply.

In some cases, discounts may apply if You meet certain

criteria We set. Any discounts/entitlements only apply

to the extent any minimum premium is not reached.

If You are eligible for more than one, We also apply

each of them in a predetermined order to the premium

(excluding taxes and government charges) as reduced by

any prior applied discounts/entitlements. Any discounts

will be applied to the base premium calculated prior to

any taxes being added.

When You apply for this insurance, You will be advised of

the total premium amount payable, when it needs to be

paid and how it can be paid. This amount will be set out

in the Schedule, which will be sent to You after the entry

into the Policy. If You fail to pay We may reduce any claim

payment by the amount of premium owing and/or cancel

the Policy.

Renewal procedure Before Your Policy expires We will advise You whether We

intend to offer renewal and if so on what terms.

This document also applies for any offer of renewal We

may make, unless We tell You otherwise.

It is important that You check the terms of any renewal

offer before renewing to satisfy Yourself that the details

are correct. In particular, check the Sum Insured

amounts and Excess(es) applicable and to ensure the

levels of cover are appropriate for You.

Please note that You need to comply with Your Duty of

Disclosure before each renewal (see below).

Your Duty of DisclosureBefore entering into a contract of general insurance with

Us, You have a duty, under the Insurance Contracts Act

1984 and the Marine Insurance Act 1909 (as applicable)

to disclose to Us every matter which:

• You know; or

• a reasonable person in the circumstances could

be expected to know,

is relevant to Our decision whether to accept the risk

of the insurance and, if so, on what terms.

You have the same duty to disclose those matters to Us

before You renew, extend, vary or reinstate a contract of

general insurance.

This duty applies until the Policy is entered into (or

renewed, extended, varied or reinstated as applicable).

Your duty however does not require disclosure of any

matter:

• that diminishes the risk to be undertaken by Us; or

• that is of common knowledge; or

If more than one person is insured under the Policy, a

failure or wrongful action by one of those persons may

adversely affect the rights of any other person insured

under the Policy.

How to make a claimIf You need to make a claim under the Policy, please refer

to 9. Claims procedure on page 16.

How We Calculate Your premiumThe amount of Your premium is determined by taking a

number of different matters into account. You can seek

a quote at any time.

It is important for You to know in particular that the

premium varies depending on the information We

receive from You about the risk to be covered by Us.

The higher the risk is (e.g. high claims experience), the

higher the premium will be. Based on Our experience and

expertise as an insurer, We decide what factors increase

Our risk and how they should impact on the premium.

We calculate Your premium on the basis of information

that We receive from You when You apply for insurance.

Some factors impacting premiums include:

• Your nominated Sum Insured;

• where Your Marine Business is situated;

• the materials used in the construction of Your

Building(s);

• the nature of Your Marine Business;

• security measures used for Your Property Insured

(e.g. alarms, deadlocks); and

• any additional Excess You nominate to pay above Our

basic Excess. This means that when You purchase

a Policy You may elect to take a higher Excess in the

event of a claim, which will reduce the cost of Your

premium. If You are interested in this, You should ask

Your intermediary to supply You with quotes based

on differing amounts of Excesses.

Your premium also includes amounts that take into

account Our obligation to pay any relevant compulsory

government charges, taxes or levies (e.g. Stamp Duty,

GST, Emergency and Fire Services Levy) in relation to

Your Policy. These amounts will be set out separately on

Your Schedule of insurance as part of the total premium

payable.

In cases where We are required to pay an estimated

amount (e.g. for Fire Services Levies) based on criteria

set by the Government, We allocate to the Policy Our

estimate of the amount We will be required to pay. We

may over or under recover in any particular year but We

will not adjust Your premium because of this. You can

ask Us for more details if You wish.


7

Who We disclose Your personal information to

We may disclose Your personal information to others with

whom We have business arrangements for the purposes

listed in the paragraph above or to enable them to offer

their products and services to You. These parties may

include insurers, intermediaries, reinsurers, insurance

reference bureaus, related companies, Our advisers,

persons involved in claims, external claims data collectors

and verifi ers, parties that We have an insurance scheme in

place with under which You purchased Your Policy (such

as a fi nancier or motor vehicle manufacturer and/or

dealer). Disclosure may also be made to government, law

enforcement, dispute resolution, statutory or regulatory

bodies, or as required by law.

Disclosure overseas

Your personal information may be disclosed to other

companies in the Allianz Group, business partners,

reinsurers and service providers that may be located in

Australia or overseas. The countries this information

may be disclosed to will vary from time to time, but may

include Canada, Germany, New Zealand, United Kingdom,

United States of America and other countries where the

Allianz Group has a presence or engages subcontractors.

We regularly review the security of Our systems used for

sending personal information overseas. Any information

disclosed may only be used for the purposes of collection

detailed above and system administration.

Access to Your personal information and complaints

You may ask for access to the personal information We

hold about You and seek correction by calling 1300 360

529 EST 8am–6pm, Monday to Friday. Our Privacy Policy

contains details about how You may make a complaint

about a breach of the privacy principles contained in the

Privacy Act 1988 (Cth) and how We deal with complaints.

Our Privacy Policy is available at www.allianz.com.au.

Telephone call recording

We may record incoming and/or outgoing telephone

calls for training or verifi cation purposes. Where We have

recorded a telephone call, We can provide You with a

copy at Your request, where it is reasonable to do so.

General Insurance Code of Practice The General Insurance Code of Practice was developed

by the Insurance Council of Australia to further raise

standards of practice and service across the insurance

industry through promoting better communication

between insurers and customers and outlining a

standard of practise and service to be met by insurers.

We keenly support the standards set out in the Code.

You can obtain more information on the Code of Practice

and how it assists You by contacting Us. Contact details

are provided on the back cover of this document.

• that We know or, in the ordinary course of Our

business as an insurer, ought to know; or

• as to which compliance with Your duty is waived by Us.

Non-disclosure

Where the Insurance Contracts Act applies, if:

• You fail to comply with Your duty of disclosure, We may

be entitled to reduce Our liability under the contract in

respect of a claim, cancel the contract or both;

• Your non-disclosure is fraudulent, We may also have

the option of avoiding the contract from its beginning.

Where the Marine Insurance Act applies, if You fail to

comply with Your duty of disclosure, We may avoid the

contract from its beginning.

Who does the duty apply to?

The duty of disclosure applies to You and everyone that

is an insured under the Policy. If You provide information

for another insured, it is as if they provided it to Us.

Privacy noticeAt Allianz, We give priority to protecting the privacy

of Your personal information. We do this by handling

personal information in a responsible manner and in

accordance with the Privacy Act 1988 (Cth).

How We collect Your personal information

We usually collect Your personal information from You

or Your agents. We may also collect it from Our agents

and service providers; other insurers and insurance

reference bureaus; people who are involved in a claim or

assist Us in investigating or processing claims, including

third parties claiming under Your Policy, witnesses

and medical practitioners; third parties who may be

arranging insurance cover for a group that You are a

part of; law enforcement, dispute resolution, statutory

and regulatory bodies; marketing lists and industry

databases; and publicly available sources.

Why We collect Your personal information

We collect Your personal information to enable Us to

provide Our products and services, including to process

and settle claims; offer Our products and services and

those of Our related companies, brokers, intermediaries

and business partners that may interest You; and

conduct market or customer research to determine

those products or services that may suit You. You can

choose not to receive product or service offerings from Us

(including product or service offerings from Us on behalf

of Our brokers, intermediaries and/or Our business

partners) or Our related companies by calling the Allianz

Direct Marketing Privacy Service Line on 1300 360 529,

EST 8am–6pm Monday to Friday, or going to our website’s

Privacy section at www.allianz.com.au.


8

Updating this PDSWe may need to update this PDS from time to time if

certain changes occur where required and permitted

by law. We will issue You with a new PDS or a

Supplementary PDS or other compliant document to

update the relevant information except in limited cases.

Where the information is not something that would be

materially adverse from the point of view of a reasonable

person considering whether to buy this insurance, We

may issue You with notice of this information in other

forms or keep an internal record of such changes (You

can get a paper copy free of charge by contacting Us

using Our details on the back cover of this PDS).

Other documents may form part of Our PDS and the Policy.

If they do We will tell You in the relevant document.

Further information and confi rmation of transactionsIf You require further information about this insurance

or wish to confi rm a transaction, please contact Us.

Complaints – Internal and External Complaints ProcedureIf You are dissatisfi ed with Our service in any way

contact Us and We will attempt to resolve the matter

in accordance with Our Internal Dispute Resolution

procedures. To obtain a copy of Our procedures contact

Us on 13 2664 EST 8am-6pm. A dispute can be referred

to the Financial Ombudsman Service Australia (FOS)

subject to its terms of reference. It provides a free and

independent dispute resolution service for consumers

who have general insurance disputes falling within its

terms and its contact details are:

The Financial Ombudsman Service Australia

Phone: 1800 367 287

Post: GPO Box 3, Melbourne, Victoria 3001

Website: www.fos.org.au

Agency arrangements and agent’s remunerationIf Your Policy has been issued through Our agent, or a

broker who is acting under a binder agreement with Us,

then they are acting as Our agent and not as Your agent.

If Your Policy has been issued by a broker, other than a

broker acting under an agency/binder arrangement with

Us, then the broker is acting as Your agent.

When the Policy has been arranged through an

intermediary, remuneration (such as commission) is

payable by Us to them for arranging the insurance. You

can ask them or Us for more information.

Financial Claims SchemeIn the unlikely event Allianz Australia Insurance

Limited were to become insolvent and could not meet

its obligations under this Policy, a person entitled to

claim may be entitled to payment under the Financial

Claims Scheme. Access to the Scheme is subject to

eligibility criteria and for more information see APRA

website at http://www.apra.gov.au and the APRA hotline

on 1300 55 88 49.


9

Defined Event means a covered Event shown in the

relevant individual Section.

Directors’, Partners’ and Employees’ Personal Property

means clothing and personal effects (other than tools

of trade), belonging to Your directors, partners and

employees or their Family Members.

Documents means records, computer tapes or disks,

written or printed books, letters, certifi cates, written or

printed documents or forms of any nature (excluding

Money) You own or are responsible for.

Electronic Data means facts, concepts and information

converted to a form useable for communications, display,

distribution, interpretation, or processing by electronic

or electromechanical data processing or electronically-

controlled equipment, and includes programs, software

and other coded instructions for such equipment.

Event means any one event or series of events arising

from any one originating source or cause.

Excess means either the amount of money specifi ed in

the Schedule or Policy as the Excess for each applicable

Section that You must contribute as the fi rst payment

for each claim, or the period specifi ed in the Schedule

or Policy for which no payment will be made by Us.

Family Member means any person who is or was at any

time:

a. Your parent, sibling or child;

b. Your spouse, Spouse Equivalent, domestic partner

or domestic companion; or

c. a parent, sibling or child of a person in Clause b.

above.

Flood means the covering of normally dry land by water

that has escaped or been released from the normal

confi nes of any of the following:

a. a lake (whether or not it has been altered or modifi ed);

b. a river (whether or not it has been altered or modifi ed);

c. a creek (whether or not it has been altered or modifi ed);

d. another natural water course (whether or not it has

been altered or modifi ed);

e. a reservoir;

f. a canal; or

g. a dam.

Hail means precipitation of particles of ice (hailstones)

from clouds, falling either separately or collected into

irregularly-shaped balls.

Indemnity means that if there is Damage directly caused

by any of the covered Events, We will, at Our option:

a. pay to You the Market Value of the Damaged Property

Insured immediately prior to the Damage occurring; or

General Defi nitionsThese defi nitions have special meaning and apply to all

Sections of Your Policy, unless they are defi ned differently

in the relevant Section.

Accidental Damage means Damage which occurs because

of a sudden, unforseen and unintended happening. Note:

Section One has a more specifi c defi nition of this term.

Approved Safe means a burglar resistant container

designed for the storage of Money and valuables, which:

a. is claimed in writing by the manufacturer to be ‘torch

and drill resistant’; and

b. is securely attached to the Building in accordance

with the manufacturer’s instructions; and

c. weighs more than 200 kg when empty; or

d. weighs more than 100 kg when empty and is fi rmly

affi xed to the Building structure.

Approved Safe includes automatic teller machines.

Note: A ‘document safe’, ‘fi re safe’, ‘records safe’, ‘media/

data safe’, ‘home/domestic safe’ or other container

weighing less than 200 kg is not an Approved Safe for the

purpose of the Policy.

Bailee means an individual who has temporary rightful

possession, but not the legal ownership, of another’s

property.

Basis of Settlement means the method by which a

claim is adjusted under the Policy. This will be either

Reinstatement and Replacement or Indemnity according

to the method You have selected in those Sections where

a choice is available and specifi ed in the Schedule, or

otherwise as stated in the appropriate section of the

Policy.

Building(s) mean the building(s) at the Situation(s),

including outbuildings, breakwaters, underground

services, walls, gates and fences, signs, hail nets,

landlord’s fi xtures and fi ttings of every kind and

description and additions forming part of the building

complex, travel hoists, lifting and handling equipment.

Contents means contents of every description, including

improvements to Buildings You make as a tenant not

otherwise excluded, but it does not include Stock in

Trade or Customers’ Goods.

Customers’ Goods means goods and/or merchandise,

including Watercraft, held by You in trust or on

commission.

Damage(d) means physical loss, destruction or Damage.

Declared Value(s) means the amount(s) You have

declared in the Proposal.


10

the unused value of postage stamps, revenue stamps,

instant lottery tickets, metropolitan transport tickets, cab

charge vouchers, phone cards, credit cards, stored-value

cards, traveller’s cheques, bearer bonds, coupons and the

contents of franking machines.

Optional Benefit means the optional benefi t described

as being available in certain Sections of Your Policy.

Optional benefi ts that are covered are shown as being

operative in the Schedule.

Parts and Accessories means replacement parts and

accessories for Watercraft.

Period of Insurance means the period commencing on the

effective date and ending on the expiry date as shown in

the Schedule.

Policy means this document, the Schedule, Proposal

and any endorsement, specifi cation, attachment or

memoranda affi xed to it and any other document that

parties agree in writing will form part of the Policy.

Premises means that area within the confi nes of the

Building(s) at the Situation(s).

Property Insured means all real and tangible personal

property shown as insured in the Schedule in respect of

each Section, and not otherwise excluded, which belongs

to You, or for which You are legally responsible, or for

which You have assumed responsibility to insure prior

to the occurrence of any Damage.

Proposal means the application form completed by You

or on Your behalf or the quotation slip submitted on

Your behalf in which You provided the information upon

which We relied to enter into Your Policy.

Reinstatement means the cost necessary to repair or

rebuild the Property Insured to a condition substantially

the same as, but not better or more extensive than, its

condition when new.

Reinstatement or Replacement means, Reinstatement

and/or Replacement, where relevant.

Replacement means the cost necessary to replace the

Property Insured with property substantially the same

as, but not better or more extensive than, its condition

when new.

Rewriting of Records means the cost of restoration of

computer records, Documents, manuscripts, securities,

deeds, specifi cations, plans, drawings, designs, business

books and other records of every description.

Schedule means the most current Schedule to Your Policy

that We give You which specifi es details such as the

Sections that apply (including Optional benefi ts), Policy

number, relevant Property Insured, Excess(es), Limits of

Indemnity, Sub limits and premium. It also includes any

documents that We and You agree in writing will form

part of the Schedule.

b. pay to You the cost of replacing or repairing the

Damaged Property Insured; or

c. repair or replace the Damaged Property Insured.

We may deduct a reasonable allowance for depreciation,

age, and wear and tear before making any payment.

Limit of Indemnity or Sum Insured mean the same thing

when used in the Policy, being the relevant amount(s)

specifi ed in the Policy that We will not pay more than for

any one loss or series of losses arising out of a covered

Event, subject to any particular Sub limits and where the

Policy specifi cally states otherwise.

Marina means the marina at the Situation(s) shown

in the Schedule.

Marine Business means the Marine Business described in

the Schedule but does not cover activities broader than:

i. a Marina Business as defi ned in Section One – Marina

Liability, if included in the Schedule;

ii. the sale of Watercraft and the sale of Parts and

Accessories;

iii. the inspection of Watercraft, reporting on the

condition of Watercraft, the provision of advice or sea

worthiness, and the recommendation of/for repairs

and/or parts required to/for Watercraft;

iv. the service, repair and maintenance of Watercraft

and machinery, or parts thereof;

v. the issuance of documentation to facilitate the

registration of Watercraft or their transfer of title;

vi. a boat agency business or boat dealership business as

described in Section Six – Vessels, Piers and Pontoons,

if included in the Schedule;

vii. a Watercraft Repair Activity as described in Section

Four –Watercraft Repairer’s Liability, if included in

the Schedule;

viii. the ownership and/or occupation of the Situation(s);

ix. other activities incidental to Your ownership and/or

operation of a Marine Business, as declared to and

accepted by Us.

Market Value means the value We determine as being

the amount of money it would cost to replace the

Property Insured with a similar item of the same make,

model, age and condition as Your Property Insured

immediately prior to the loss or Damage but excluding

costs and charges for registration, compulsory third party

insurance, stamp duty transfer, dealer warranty costs,

allowance for dealer profi t or transfer fees.

Money means current coin, bank notes, currency notes,

cheques, credit card sales/service vouchers, postal

orders, money orders, negotiable and non-negotiable

securities and valuable Documents, promissory notes,


11

Vehicle does not include any machine, trailer or

attachment that is made to travel, move, operate or be

drawn on rail tracks or by a pulley, conveyor or cable

system, including but not limited to gondolas and

chairlifts.

Watercraft means any Vessel, craft or thing (other than

a Hovercraft or submersible) designed to fl oat on or in

or travel on or through water.

We, Us, Our, Allianz means Allianz Australia Insurance

Limited ABN 15 000 122 850 AFS Licence No. 234708 of

2 Market Street, Sydney NSW 2000.

You, Your(s) means either the person(s) or the entity(ies)

named as The Insured in the Schedule.

Sea means all oceans, seas, bays, ports or tidal waters.

Situation(s) means the Situation(s) stated in the

Schedule.

Spouse Equivalent means a person, whether of the same

sex or not, who ordinarily lives with You in a genuine

personal and domestic relationship similar to the

relationship of husband and wife.

Stock Card means Your accounting record, either on

paper or in electronic form, where You record the

complete details of Watercraft, including the actual

purchase price and the actual cost of improvements to

such items, but excluding amounts that are otherwise

recoverable by You. Stock Card shall also mean Your

accounting record where You record jobs, including work

undertaken on Customers’ Goods.

Note: We are entitled to inspect the invoices used to

prepare Your Stock Cards and make any adjustment to

the Stock Card value if Your Stock Card differs from the

actual invoices.

Stock in Trade means:

a. Stock of Watercraft, trailers including the value

of work done;

b. stock of general merchandise (including stock

of cigarettes and alcohol);

c. stock of Parts and Accessories, component parts used

by You, raw materials, containers and packaging

materials;

d. stock of petrol, fuels, oils, engine additives and other

consumables used for Watercraft.

Stock of Watercraft means Your stock of Watercraft and

Watercraft held on consignment at the Situation(s) for

the purpose of sale in the course of Your Marine Business.

Sub limit means the relevant sub limit shown in the Policy

for a particular item or Event that We will not pay more

than.

Territorial limits means that geographical area anywhere

within Australia unless stated otherwise within an

individual Section or in the Schedule.

Total loss means where Your Property Insured is lost or

stolen and not recovered within a reasonable period of

time, or where it is Damaged and We consider the cost of

repairing it is uneconomical or greater than the Limit of

Indemnity, Sum Insured, Sub limit, Market Value or Stock

Card value, whichever is the lesser.

Vehicle(s) means any type of machine on wheels or on

self-laid tracks made or intended to be self-propelled by

other than manual or animal power and any trailer or

other attachment made or intended to be drawn by such

machine.


12

iii. conduct intended to cause loss, Damage

or liability with reckless disregard for the

consequences;

by You or any person acting with Your knowledge,

consent or connivance. For the purposes of a Claim

made under Section Thirteen – Occupational Liability

only, this General exclusion does not apply to persons

the subject of Specifi c exclusion 11. Dishonesty in

that Section.

e. Territorial limits

for an Event or otherwise occurring or arising outside

the Territorial limits except as specifi cally stated

otherwise in the appropriate Section.

2. Consequential loss, legal liability and defectsExcept as specifi cally provided otherwise, Your Policy

does not cover:

a. consequential loss of any kind, including loss

resulting from delay or lack of performance, loss of

contract or depreciation in value of any un Damaged

Property Insured;

b. legal liability of whatsoever nature;

c. Damage caused by faults or defects known to You

or any employee whose knowledge in law would be

deemed to be Yours and which was not disclosed to

Us at the time Your Policy was entered into.

3. Computer technologyYour Policy does not cover any loss or Damage to any

appliance, machinery, equipment or other property

which is a computer or which contains or comprises

any computer technology (including computer chip or

control logic), and which fails to perform or function in

the precise manner for which it was designed for any

reason arising from the performance or functionality of

such computer technology (including computer chip or

control logic).

4. Information Technology RiskPolicy Sections Five – Public and Products Liability

and Thirteen – Occupational Liability do not cover

claims arising directly or indirectly out of or in any way

connected with Your internet operations, including, but

not limited to, the following:

a. The use of electronic mail systems by You or Your

employees, including part-time and temporary staff,

and others acting on Your behalf;

b. Access through Your network to the world wide web

or a public internet site by You or Your employees,

including part-time and temporary staff, and others

acting on Your behalf;

General exclusionsThese General exclusions are applicable to all Sections

of Your Policy and apply whether or not Your Policy may

otherwise cover an Event.

1. Your Policy does not cover loss, Damage or liability:

a. War

caused by or arising from any war, whether war be

declared or not, hostilities or rebellion, civil war,

revolution, insurrection, military or usurped power,

invasion, or act of foreign enemy unless otherwise

specifi ed in a Policy section;

b. Radioactive Contamination, Chemical, Biological, Bio-

Chemical and Electromagnetic Weapons

In no case shall this Policy cover loss Damage

liability or expense directly or indirectly caused by or

contributed to by or arising from:

i. ionising radiations from or contamination by

radioactivity from any nuclear fuel or from any

nuclear waste or from the combustion of nuclear

fuel (including any self-sustaining process of

nuclear fi ssion or fusion);

ii. the radioactive, toxic, explosive or other

hazardous or contaminating properties of any

nuclear installation, reactor or other nuclear

assembly or nuclear component thereof;

iii. any weapon or device employing atomic or

nuclear fi ssion and/or fusion or other like reaction

or radioactive force or matter;

iv. the radioactive, toxic, explosive or other

hazardous or contaminating properties of any

radioactive matter. The exclusion in this sub-

clause does not extend to radioactive isotopes,

other than nuclear fuel, when such isotopes

are being prepared, carried, stored, or used for

commercial, agricultural, medical, scientifi c or

other similar peaceful purposes; or

v. any chemical, biological, bio-chemical, or

electromagnetic weapon.

c. Lawful seizure

caused directly or indirectly by the lawful seizure,

detention, confi scation, nationalisation or requisition

of the Property Insured;

d. Wilful acts

caused directly or indirectly by any actual or alleged:

i. dishonest, fraudulent, criminal, unlawful, or

malicious act;

ii. wilful breach of any statute, contract or duty;


13

7. Electronic DataNotwithstanding any provision to the contrary in Policy

Sections Two – Material Damage (Building, Contents and

Stock), Three – Business Interruption, Seven – Crime,

Eight – General Property or Twelve – Taxation Audit Costs

or any endorsements thereto:

a. Your Policy does not insure:

i. the total or partial destruction, distortion, erasure,

corruption, alteration, misinterpretation or

misappropriation of Electronic Data;

ii. any error in creating, amending, entering, deleting

or using Electronic Data; or

iii. the total or partial inability or failure to receive,

send, access or use Electronic Data for any time or

at all;

from any cause whatsoever, regardless of any other

contributing cause or event, whenever it may occur.

b. However, in the event that a peril listed below (being

a peril insured by Your Policy but for this exclusion) is

caused by any of the matters described in Clause a.

above, Your Policy, subject to all its provisions, will

insure:

i. physical loss of or Damage or destruction to

Property Insured directly caused by such listed

peril, and/or

ii. consequential loss insured by Your Policy.

Further, this exclusion does not apply in the event

that a peril listed below (being a peril insured by

Your Policy but for this exclusion) causes any of the

matters described in Clause a. above:

Accidental Damage other than non-physical Damage,

fi re, lightning, thunderbolt, explosion, implosion,

earthquake, subterranean fi re, volcanic eruption,

impact by aircraft or aerial object dropped therefrom,

impact by road vehicle or animal, sonic boom, theft

which is a consequence of theft of any computer

and/or computer hardware and/or fi rmware and/or

microchip and/or integrated circuit and/or similar

device containing such Electronic Data, breakage of

glass, the acts of persons taking part in riots or civil

commotions or of striking and/or locked-out workers

or of persons taking part in labour disturbances, storm

and/or tempest and/or rainwater and/or wind and/

or Hail, water and other liquids and/or substances

discharged and/or overfl owing and/or leaking from

any apparatus and/or pipes at the Situation.

c. For the purposes of the Basis of Settlement provisions

in Your Policy, computer systems records includes

Electronic Data as defi ned in Clause a. above.

The terrorism exclusion in Your Policy prevails over this

exclusion.

c. Access to Your intranet (meaning internal company

information and computing resources) which is

made available through the world wide web for Your

customers or others outside Your organisation; and

d. The operation and maintenance of Your web site.

5. TerrorismUnless otherwise provided for in the Terrorism Insurance

Act, notwithstanding any provision to the contrary within

Your Policy or any endorsement thereto, Your Policy

excludes and does not cover death, injury, illness, loss,

Damage, liability, cost or expense directly or indirectly

caused by, contributed to by, resulting from or arising

out of or in connection with any act of terrorism, as

defi ned herein, regardless of any other cause or event

contributing concurrently or in any other sequence to

the loss.

An “act of terrorism” includes any act, or preparation

for action, or threat of action designed to infl uence

the government de jure or de facto of any nation or

any political division thereof, or in pursuit of political,

religious, ideological or similar purposes to intimidate

the public or a section of the public of any nation by any

person or group(s) of persons, whether acting alone or

on behalf of or in connection with any organisation(s)

or government(s) de jure or de facto, and which:

a. involves violence against one or more persons; or

b. involves Damage to property; or

c. endangers life other than that of the person

committing the action; or

d. creates a risk to health or safety of the public or a

section of the public; or

e. is designed to interfere with or to disrupt an

electronic system.

Your Policy also excludes and does not cover death,

injury, illness, loss, Damage, cost or expense directly or

indirectly caused by, contributed to by, resulting from,

or arising out of or in connection with any action in

controlling, preventing, suppressing, retaliating against,

or responding to any act of terrorism.

6. AsbestosNotwithstanding any provision to the contrary within

Policy Sections One – Marina Liability, Four – Watercraft

Repairer’s Liability, Five – Public and Products

Liability, and Thirteen – Occupational Liability or any

endorsement to them, Your Policy shall not apply to and

does not cover any actual or alleged liability whatsoever

for any claim or claims for loss(es) or Damage directly or

indirectly arising out of, resulting from or in consequence

of, or in any way involving, asbestos, or any materials

containing asbestos in whatever form or quantity.


14

15. Events and types of DamageWe will not pay for loss or Damage caused directly or

indirectly by or in connection with or arising from or

occasioned through:

a. corrosion, rust, change in temperature, mechanical or

electrical breakdown (unless insured under Section

Eleven – Machinery Breakdown) or derangement of

machinery or equipment, dampness, dryness, wet

or dry rot, shrinkage, evaporation, loss of weight,

contamination, change in colour, fl avour, texture

or fi nish, vermin, insects;

b. wear and tear, lack of reasonable maintenance,

gradual deterioration or erosion;

c. the presence of magnetic fl ux, or any loss of

magnetism (except caused by lightning) or loss of or

Damage to data carrying media.

We will not pay for loss, Damage or liability caused

directly or indirectly by or in connection with or arising

from or occasioned through:

d. intentionally, recklessly caused by or incurred with

Your or Your employees, consent or arising from

Your or Your employees’ failure to take reasonable

precautions to prevent accidents which may give rise

to a claim under this Policy;

e. Your being involved in any illegal trade or venture;

f. circumstances where You or Your employees have

waived or restricted Your rights of recourse against

any person, unless previously agreed in writing by Us;

g. any permanent or temporary alteration (which

includes occupation, use and physical changes) to

property situated at or brought onto the Situation

which increases the risk of loss, Damage or liability

where You or Your employees have failed to notify

Us of any such alteration as soon as reasonably

practicable;

h. You, Your managers, Your employees or anyone for

whom You are legally responsible being, with Your

or Your managers’ knowledge, under the infl uence

of alcohol and/or drugs;

i. Your failure to comply with all statutory or other

obligations and regulations imposed by any authority

relating to inspection and testing;

j. any breach by You, or with Your consent, of any law, by-

law, government, local government, statutory authority,

or other legally constituted public body’s regulation

dealing with the storage of hazardous goods;

8. Provision of fi nancial services as AFS licensee or giving personal adviceYour Policy does not cover liability arising out of the

provision of any fi nancial services under Your own

Australian Financial Services Licence pursuant to

Chapter 7 of the Corporations Act or the provision of

“personal advice” as that term is defi ned in Chapter 7

of that Act.

9. Dumping of spoilYour Policy does not cover loss, Damage or liability

arising from the dumping of spoil.

10. Aircraft, hovercraft, helicopter, seaplaneYour Policy does not cover loss, Damage or liability arising

from Your management or operation of any aircraft,

hovercraft, helicopter, seaplane or any other airborne

craft or any air strip, area or building upon which such

craft land or manoeuvre or in which they are housed,

maintained or repaired.

11. Travel hoists, lifting and handling equipmentYour Policy does not cover loss, Damage or liability

arising from the use of any power operated lifting

equipment, cranes, travel hoists and similar equipment

unless Section One – Marina Liability and/or Section

Two – Material Damage (Building, Contents and Stock)

and/or Section Five – Public and Products Liability and/

or Section Eleven – Machinery Breakdown are included in

the Schedule.

12. Operation of any vesselYour Policy does not cover loss, Damage or liability

arising from Your management or operation of any vessel

or Watercraft on the water in which You have an interest

as owner, charterer or managers or in respect of any act,

omission, event or accident unless Section Six – Vessels,

Piers and Pontoons is included in the Schedule.

13. Salvage operationsYour Policy does not cover loss, Damage or liability

arising from or connected with any salvage operations.

14. VehiclesYour Policy does not cover loss, Damage or liability arising

from the ownership or operation of any Vehicle which is

required by law to be licensed for use on any road unless

insured under Section Nine – Commercial Motor.


15

General conditionsThese general conditions are applicable to all Sections

of Your Policy. Each Section of Your Policy also contains

specifi c conditions that are applicable to that Section.

In some cases, further specifi c conditions may be

included in the Schedule and/or in an endorsement

We issue to You.

If You do not meet the applicable general conditions

and specifi c conditions (other than the cancellation

condition), We may cancel Your Policy and/or reduce or

refuse to pay a claim, to the extent permitted by law.

1. Reasonable care and maintenanceYou must take all reasonable care:

a. to prevent loss, Damage or liability;

b. to maintain the Property Insured and Premises

and Situation in sound condition, in particular to

minimise or avoid theft (by maintaining security

devices), loss, Damage or liability;

c. to comply with all statutory obligations, by-laws,

regulations, public authority requirements and

safety requirements, including those relating to fi re

appliances and the use and storage of hazardous

goods;

d. to comply with the manufacturer’s recommendations

for the use and maintenance of all Property Insured;

e. to minimise any loss, Damage or liability;

f. to only employ competent employees, agents and

contractors and ensure they meet the requirements

specifi ed in Clauses a. to e. above.

2. Cancellation rightsa. In addition to Your Cooling off rights detailed earlier,

the Insured(s) may cancel the Policy at any time by

telephoning Us.

b. We have the right to cancel the Policy where

permitted by and in accordance with law. For

example, We may cancel:

i. if You failed to comply with Your Duty of

Disclosure; or

ii. where You have made a misrepresentation to Us

during negotiations prior to the issue of the Policy;

or

iii. where You have failed to comply with a provision

of the Policy, including the term relating to

payment of premium; or

iv. where You have made a fraudulent claim under

the Policy or under some other contract of

insurance that provides cover during the same

period of time that the Policy covers You,

k. the failure to store all resins, fi bre glass, solvents,

cellulose based materials and the like outside the

Buildings in suitable metal or brick structures, except

for the amount of such materials that is required

inside the Buildings in the course of conducting Your

Marine Business activities for that day, in which case

these materials shall be kept inside the Buildings in

secure metal containers;

l. the failure to incorporate Your standard trading

conditions of Your business into every agreement for

the provision of Your Marine Business activities.


16

6. Waiver of subrogation rightsWe will not be liable to pay for loss, Damage or liability

if You agree, or have agreed, to limit or exclude any right

of recovery against any third party who would be liable

to compensate You with respect to that loss, Damage or

liability.

7. Other insuranceYou must give Us written notice of any insurance

or insurances already effected, or which may be

subsequently effected, covering, whether in whole or in

part, the subject matter of the various Sections of Your

Policy.

8. Claims preparation expensesExcept where otherwise specifi cally provided in a Section

of Your Policy, We will pay for the professional fees (other

than for loss adjusters) as may be payable by You, and

such other reasonable expenses necessarily incurred

(with Our prior consent) by You, and not otherwise

recoverable, in the preparation of any claim accepted by

Us to be valid under Your Policy. The most We will pay is

the lesser of $10,000 in total or 25% of the claim amount

otherwise payable.

9. Claims procedurea. As soon as You become aware of anything happening

which may result in a claim under Your Policy, You

must, at Your own expense (unless the expense is

covered under Clause 8. Claims preparation expenses

above):

i. immediately inform the police of any malicious

Damage, theft, fraudulent conduct, attempted

theft or loss of property;

ii. contact Us as soon as possible by telephone

or facsimile to advise how the loss, Damage or

liability occurred;

iii. take all reasonable action to recover lost or stolen

property and minimise the claim;

iv. as far as possible, preserve any products,

appliances, plant or other items which might

prove necessary or useful as evidence until We

have had an opportunity to inspect them;

v. take all reasonable precautions to prevent any

further loss or Damage to the Property Insured.

We will cover the reasonable cost of such work if

We accept Your claim.

vi. give Us all the information, proof and assistance

We may require to prosecute, defend or settle

Your claim, including details of any other

insurance effected by You or on Your behalf;

and We may do so by giving You three (3) business

days notice in writing of the date from which the

Policy will be cancelled. The notifi cation may be

delivered personally or posted to You at the address

last notifi ed to Us.

c. Subject to d., if You or We cancel the Policy We may

deduct a pro rata proportion of the premium for time

on risk, reasonable administrative and transaction

costs related to the acquisition and termination of the

Policy We incur and any government taxes or duties

We cannot recover.

d. In the event that You have made a claim under the

Policy and We have agreed to pay the full sum insured

for Your property no return of premium will be made

for any unused portion of the premium.

3. Non Payment of Premium by Instalments – Right to refuse a claimWhere You pay Your premium by instalments, You must

ensure that they are paid on time. If an instalment has

remained unpaid for a period of at least fourteen (14)

days, We may refuse to pay a claim. We will notify You

if an instalment has not been paid.

4. Alteration to riskIf You become aware of any changes to the facts or

circumstances which existed when this insurance

commenced that alter the nature of the risk (for example,

the nature, or type, of Your Marine Business), or any

other circumstances that affect the Situation or Property

Insured in a way that would increase the risk of loss,

Damage or liability, You must notify Us in writing. If We

agree to the change, We will do so in writing and You

must pay Us any additional premium We may require.

5. UnoccupancyIf Your Building, or the Premises You occupy, is not or

will not be occupied for any period in excess of sixty (60)

consecutive days, We will not pay for Damage to Property

Insured otherwise covered under:

a. Section Two – Material Damage (Building, Contents

and Stock):

i. fi re;

ii. explosion;

iii. leakage of water or liquid;

iv. malicious acts;

v. Accidental Damage;

b. Section Seven – Crime;

c. Section Eleven – Machinery Breakdown;

unless You have Our prior agreement in writing and You

agree to pay any additional premium We may require.


17

v. if You recover or fi nd any lost or stolen Property

Insured for which We have paid a claim, You

must:

• inform Us immediately; and

• give Us the recovered or found Property

Insured if We request You to do so;

d. If You advise Us of loss or Damage to Property

Insured, as set out in this general condition:

i. We may, or anybody We appoint may:

• enter, take or keep possession of the Buildings

where the loss or Damage occurred;

• take or keep possession of such of the Property

Insured as We may reasonably require for the

purposes of Our investigations; and

• if We accept liability, sell such Property

Insured or dispose of it in a reasonable

manner.

You are not entitled to abandon such Buildings

or Property Insured to Us. If We enter, take or

keep possession of the Buildings or the Property

Insured, it will not be an admission of liability nor

will it affect any of Your obligations under Your

Policy;

ii. and if We elect or become bound to reinstate

or replace any Property Insured, You must at

Your own expense produce and give Us all such

plans, documents, books and information as We

reasonably may require;

iii. We will not be bound to reinstate any Property

Insured exactly or completely, but only in a

reasonable manner in all the circumstances. In

no case will We be bound to pay in respect of any

of the Property Insured more than the Limit of

Indemnity or Sum Insured.

10. Reinstatement of Limit of Indemnity/Sum InsuredIn the event of Damage insured under Policy Sections

Two – Material Damage (Building, Contents and Stock),

Three – Business Interruption, Seven – Crime and

Fourteen – Transit, the amount by which the Limit of

Indemnity or Sum Insured is reduced as a consequence

of the loss or Damage will be automatically reinstated as

from the date of loss or Damage, provided that:

a. there is no written request from You or written notice

by Us to the contrary;

b. the Section is an operative Section of Your Policy; and

c. You pay the premium which We require for the

reinstatement.

vii. as soon as reasonably practicable after the loss,

Damage or relevant Event (or any further time

which We may allow in writing), deliver to Us a

written claim including as detailed an account

as is reasonably practicable of the circumstances

surrounding the loss, Damage or Event, and

the amount claimed. You must provide Us with

a statutory declaration verifying the matters

identifi ed in i.-vi above, if requested;

viii. immediately send Us copies of any claim, writ,

summons, or full details of any relevant legal

or other proceedings such as an impending

prosecution or inquest that You receive or of

which You become aware;

ix. at all times, give Us all the information and

assistance We may reasonably require;

b. You must not:

i. admit liability for, or offer or agree to settle, any

claim without Our written consent;

ii. authorise the repair or replacement of anything

without Our agreement unless for safety reasons

or to minimise or prevent further imminent loss,

Damage, liability or injury;

c. After You have advised Us of any loss, Damage or

liability as set out in this general condition:

i. You must comply with all the terms of the general

conditions and specifi c conditions before We will

meet any claim under Your Policy;

ii. We have the right to recover from any person

against whom You may be able to claim any

amounts paid by Us and We will have full

discretion in the conduct, settlement or defence

of any claim in Your name. The amount recovered

will be applied fi rst to reducing the amount by

which Your loss exceeds the Excess applied. Any

balance remaining after You have been fully

compensated for Your loss, up to the amount We

have paid to You to settle Your claim (including

Our legal fees for recovery), will be retained by Us;

iii. We may take over and conduct, in Your name,

the defence or settlement of any claim and We

will have full discretion in the conduct of any

proceedings in connection with the claim;

iv. We may pay You the Limit of Indemnity or Sum

Insured under the applicable Section (after

deduction of any sum or sums already paid by

Us) or any lesser amount for which a claim or

claims under that Section may reasonably be

settled. After We have paid You, We will no longer

be liable for the claim(s) (or future conduct of the

claim(s)) except for costs and expenses incurred

up until the time We pay You, that We previously

agreed to pay;


18

iii. Where Your Policy insures business interruption,

We will (where relevant) pay You on Your claim

by reference to the GST exclusive amount of any

supply made by Your Marine Business that is

relevant to Your claim.

c. Disclosure – Input tax credit entitlement

If You register, or are registered, for GST, You are required

to tell Us Your entitlement to an input tax credit on

Your premium. If You fail to disclose or understate Your

entitlement, You may be liable for GST on a claim We

may pay. Your Policy does not cover You for this GST

liability, or for any fi ne, penalty or charge for which You

may be liable.

13. Interests of other partiesThe insurable interest of those lessors, fi nanciers,

trustees, mortgagees, owners and all other parties having

a legal interest or charge over the Property Insured,

and who are specifi cally noted in Your records, shall

be automatically included as third party benefi ciaries

without notifi cation or specifi cation for their respective

interests in the Property Insured. The nature and extent

of such interest is to be disclosed to Us in the event of loss

or Damage. Any other persons not in this category or not

named on the Proposal or Schedule are not covered and

cannot make a claim. All third party benefi ciaries must

comply with the terms and conditions of Your Policy.

14. Cross liabilityWhere the protection provided by Your Policy covers the

interest of more than one party, any act or omission of

an individual party will not prejudice the rights of the

remaining parties, subject to:

a. General exclusion 1.d. Wilful acts; and

b. the remaining parties, immediately on becoming

aware of any act or omission that increases the risk

of loss, Damage or liability, giving notice in writing

to Us and, on demand, paying such reasonable extra

premium as We may require;

c. the Limits of Indemnity and Sub limits within each

Section applying as though this general condition did

not apply.

15. Multiple ExcessesIf a claim is made in relation to an Event where more

than one Excess applies within one Section, You only

have to pay the highest applicable Excess under that

Section, except where that Section specifi es that the

Excesses are additional or cumulative.

11. Actions of parties other than YouThe acts or omissions of:

a. a tenant of Yours; or

b. the owner of or another tenant in the Building or

Situation;

which breach any provision of Your Policy will not affect

Your entitlement to cover provided that:

c. the act or omission was committed without Your

prior knowledge; and

d. You notify Us of the happening or existence of the act

or omission as soon as You become aware of it; and

e. You pay any reasonable extra premium that We

require.

12. GST NoticeYour Policy has a GST provision in relation to Your

premium and Our payment to You for claims. It may

have an impact on how You determine the amount of

insurance You need. Please read the Policy carefully.

Seek professional advice if You have any queries about

GST and Your insurance.

a. Limit of Indemnity/Sum Insured

All monetary limits in Your Policy may be increased for

GST in some circumstances (see below);

b. Claim settlements – Where We agree to pay

When We calculate the amount We will pay to You, We

will have regard to the items below:

i. Where You are liable to pay an amount for GST

in respect of an acquisition relevant to Your

claim (such as services to repair a Damaged item

insured under Your Policy), We will pay the GST

amount.

We will pay the GST amount in addition to the

Limit of Indemnity or Sum Insured or other limits

shown in Your Policy or in the Schedule.

If Your Limit of Indemnity or Sum Insured is not

suffi cient to cover Your loss, We will only pay the

GST amount that relates to Our settlement of

Your claim.

We will reduce the GST amount We pay by the

amount of any input tax credits to which You are

or would be entitled;

ii. Where We make a payment under Your Policy as

compensation instead of payment for a relevant

acquisition, We will reduce the amount of the

payment by the amount of any input tax credit

that You would have been entitled to had the

payment been applied to a relevant acquisition;


19

22. Prohibited cover or paymentsIrrespective of any other provision of the Policy, We

shall not be deemed to provide cover or be liable to pay

any claim or provide any benefi t (including a refund of

premium) hereunder to the extent that the provision of

such cover, payment of such claim or provision of such

benefi t would contravene or otherwise expose Us to

any penalty, sanction, prohibition or restriction under

United Nations resolutions or the trade or economic

sanctions, laws or regulations of Australia, New Zealand,

the European Union, United Kingdom or United States

of America.

16. Governing law and jurisdictionYour Policy is governed by the laws of Australia. Any

dispute relating to Your Policy shall be submitted to the

exclusive jurisdiction of an Australian Court within the

State or Territory in which Your Policy was issued.

17. More Specifi c Policy SectionWe will not indemnify You or pay for any claim under

more than one Section of Your Policy for the same loss,

Damage or liability.

Where more than one Section of Your Policy covers the

claim, or would have covered the claim had You selected

or purchased it, the Section that is more specifi cally

designed to cover the relevant claim applies and We

will not pay anything under the least specifi c Section(s),

unless specifi cally provided for otherwise in the Policy.

18. Security devicesAll security devices at the Situation, including but

not limited to alarms, bollards, cameras, gates, locks,

lighting, safes and shutters, must be well maintained and

made operative whenever the Situation is unoccupied.

19. HeadingsHeadings have been included for ease of reference only.

The provisions of the Policy are not to be construed or

interpreted by reference to such headings.

20. SalvageIf Your Property Insured is a Total Loss and We have

agreed to pay the Market Value, Stock Card value or

agreed value for Your Property Insured:

a. the wreckage of Your tangible property will become

Our property, and

b. We will keep the proceeds of any salvage sale.

21. Claims recoveriesIf You recover any Property Insured after We have made

payment to You for it in settlement of a claim:

a. for Property Insured other than Money: such property

will belong to Us subject to Your right to reclaim it

upon repayment of any amount paid by Us;

b. for Money: such Money will fi rst be applied to any

uninsured loss borne by You and the remainder paid

to Us.


20

Our total aggregate liability during any one Period of

Insurance will not exceed the Limit of Indemnity. The

Limit of Indemnity is inclusive of and not additional to

any applicable Excess.

Marina Business means, and is limited to, Your ownership

and/or operation of the Marina, which includes:

a. waterfront facilities including hoists, cranes

and cradles used in connection with the Marina

operations, moorings, berths, ramps, piles, wharfs,

jetties, docks, slipways, pontoons and walkways on,

over or immediately adjacent to water subject to tidal

movement;

b. fl oating plant and equipment used within the

confi nes of the Marina;

c. working boats used to ferry customers to and from

moored Watercraft;

d. Your physical and legal control of Watercraft owned

by third parties, including whilst You are relocating

such Watercraft within the confi nes of the Marina;

e. the provision of services to Watercraft including fuel,

water and sewage removal;

f. the provision of moorings, berths, buoys and the like;

g. storage of customers Watercraft;

h. hauling and/or lifting out, slipping and/or launching

of customers Watercraft;

i. activities incidental to the above.

Medical Persons means legally-qualifi ed, enrolled and

registered medical practitioners, legally-qualifi ed

registered nurses, dentists and fi rst aid attendants.

Occurrence means any event or events resulting in

Personal Injury or Property Damage neither expected nor

intended by You. Any series of events consequent upon or

attributable to one source or originating cause, including

continuous or repeated exposure to substantially the

same general conditions, which result in Personal

Injury and/or Property Damage, are deemed to be one

Occurrence.

Personal Injury means death, bodily injury, sickness,

disease, disability, shock, fright, mental anguish and

mental injury.

Pollutants means any solid, liquid, gaseous or thermal

irritant or contaminant, including but not limited to

smoke, vapour, soot, fumes, acids, alkalis, chemicals

or waste. Waste includes material to be recycled,

reconditioned or reclaimed.

Property Damage means:

a. Damage to, physical loss of or physical destruction

of tangible property that occurs during the Period of

Insurance, including any resultant loss of use; or

Section One – Marina LiabilityThe coverWhere this Section is shown as insured on the Schedule,

Your Policy insures all amounts which You become

legally liable to pay as compensation (excluding

punitive, exemplary, aggravated Damages and any

additional Damages resulting from the multiplication

of compensatory Damages) for Personal Injury and/

or Property Damage fi rst occurring as a result of an

Occurrence in connection with Your Marina Business

that happens during the Period of Insurance, up to the

Limit of Indemnity;

PROVIDED You have limited Your liability for loss of

or Damage by incorporating Your standard trading

conditions into the agreement with the owner of the

Watercraft or their authorised representative prior to

providing Your services.

Defi nitions

Aircraft means any Vessel, craft or device made or

intended to fl y or move in or through the atmosphere

or space.

Employment Practices means any wrongful or unfair

dismissal, failure to promote, negligent reassignment,

negligent disciplinary action, denial of natural justice,

refusal to employ, demotion, negligent evaluation,

harassment, invasion of privacy, defamation, misleading

representation or advertising, sexual harassment or

discrimination in respect of employment, or prospective

employment, by You.

Hovercraft means any Vessel, craft or device made or

intended to fl oat on or in or travel on or through the

atmosphere or water on a cushion of air provided by a

downward blast.

Incidental Contracts means

a. any written rental agreement or lease of real property

which does not impose on You an obligation to insure

such property or any liability regardless of fault; or

b. any written contract with any public authority for

the supply of water, gas or electricity but only to the

extent of indemnifying any such authority in respect

of liability arising out of Your Marina Business and

excepting contracts for the performance of work or

provision of services by You.

Limit of Indemnity means the amount stated in the

Schedule. This is the maximum amount We will pay

for any claim or claims arising from one Occurrence,

provided that, for all legal liability directly or indirectly

arising out of or in any way related to Your products,


21

erected, installed, repaired, serviced, treated, sold,

supplied (including services) or distributed by You,

(including any container other than a Vehicle).

ExcessYou must pay the Excess shown in the Schedule for

this Section for each Occurrence, including for any

supplementary payments made.

Supplementary paymentsSubject to the provisos below, in addition to the

Limit of Indemnity, We will also make the following

supplementary payments:

a. all charges, expenses and legal costs incurred by Us

and/or by You with Our prior written consent in the

investigation, reporting, settlement or defence of any

claim or suit for compensation for which:

i. You are entitled to cover under this Section; or

ii. You would be entitled to cover under this Section

if such claim or suit were to be sustained;

b. all legal costs taxed against You in any such suit or

claim and all interest on the judgment or settlement

amount accruing after the entry of judgment against

You until We have paid, tendered or deposited in

court such part of the judgment to the extent that it

does not exceed the Limit of Indemnity;

c. all expenses incurred by You for providing fi rst

aid to others for Personal Injury for which You are

covered by this Section (other than medical expenses

prohibited by law);

Provided that:

d. if a payment exceeding the Limit of Indemnity has

or is required to be made to dispose of a claim, Our

liability to make supplementary payments will be

limited to the proportion of the supplementary

payments as the Limit of Indemnity bears to the

amount paid or required to be paid to dispose of the

claim. Where the application of this Clause means

that You are liable to repay supplementary payments

to Us, We may set off the amount that You oWe Us

against any other entitlements You have under the

Policy;

e. supplementary payments in connection with claims

made and/or actions instituted against You within

the United States of America or Canada or claims

and actions to which the laws of the United States of

America or Canada apply will form part of the Limit of

Indemnity and not be additional to it.

b. loss of use of tangible property that has not been

physically Damaged, physically lost or physically

destroyed, provided such loss of use is caused by

physical Damage to, physical loss of or physical

destruction of other tangible property that occurs

during the Period of Insurance.

Territorial limits means that geographical area anywhere

within the confi nes of the Marina.

Worker means any person employed by You or deemed to

be employed by You pursuant to any law.

Workers Compensation Law means any law relating to

compensation for injury to Workers.

You, Your, Yours means:

a. the Insured shown in the Schedule;

b. any subsidiary companies of the Insured referred to

in Clause a. above existing at the commencement

date of the Period of Insurance as shown in the

Schedule, whose place of incorporation is within

Australia or its external territories;

c. i. any company acquired by, and whose operations

are controlled and managed by, You or a company

referred to in Clause b. above during the Period of

Insurance as a result of consolidation, merger or

purchase;

ii. any subsidiary company that is incorporated

by You, or by a company referred to in Clause b.

above, during the Period of Insurance;

Provided that:

iii. any such acquisition or incorporation is notifi ed

to Us within ninety (90) days;

iv. the newly-acquired or incorporated company

is incorporated within Australia or its external

territories;

v. the newly-acquired or incorporated company

conducts the same type of business as Your

Marine Business;

d. i. any director, executive offi cer, employee or

partner of You or a company referred to in Clauses

b. or c. above, but only while acting within the

scope of their duties in such capacity; and

e. any principal in respect of such principal’s vicarious

liability for the acts or omissions of the Insured

shown in the Schedule or a company referred to in

Clauses b. or c. above, in the performance of work for

such principal, subject always to the extent of cover

and Limit of Indemnity provided in the Policy.

Your Products means anything (after it has ceased to

be in Your physical possession or under Your control)

manufactured or deemed to have been manufactured,

constructed, extracted, produced, processed, assembled,


22

to the owners or within 180 days after the work is

completed by You, whichever occurs fi rst;

iii. if You have purchased Section Four – Watercraft

Repairer’s Liability.

3. Rectifi cation of faulty workmanship consequent upon Damage

Where You are required to perform or re-perform, in

whole or part, work on any property which:

a. You had contracted to perform work or service on

prior to the Occurrence causing Damage; and

b. the performance or re-performance of the work or

service is made necessary by that same Occurrence

causing the Damage;

in addition to any indemnity provided elsewhere in this

Section in respect of resultant Damage, Your Policy is

extended to include:

c. the wholesale cost of parts; and

d. the net labour cost;

required to perform or re-perform the work.

The most We will pay under this Additional benefi t is

$25,000 for all claims in the aggregate for any one Period

of Insurance.

Specifi c exclusion 24.Faulty workmanship will not

operate in respect of this Additional benefi t.

Optional benefi tsThe following Optional benefi ts are only operative when

included as covered in the Schedule.

1. Pollution liability

Notwithstanding Specifi c exclusion 12 – Pollution, We

will indemnify You for legal liability incurred by You

for Personal Injury or Property Damage incurred to

third parties caused by an Event which is identifi ed as

occurring at an instantaneous moment in time during

the Period of Insurance, is Accidental and neither

expected nor intended by You, and became known to You

within 72 hours after its commencing and is reported to

Us within 72 hours thereafter.

In addition, We will also cover the costs of clean up

and/or reduction of a Pollutant hazard up to a limit of

$1,000,000 each and every loss or series of losses caused

by an Event.

Irrespective of the above, We will not provide cover for or

in relation to:

a. fi nes, penalties, punitive Damages, exemplary

Damage, treble Damages or any other Damages

resulting from the multiplication of compensatory

Damages;

Additional benefi tsUnless stated otherwise, We will pay for the following

Additional benefi ts only to the extent that the Limit of

Indemnity is not otherwise exhausted.

1. Salvage/removal of wreck

We will pay for the reasonable costs and charges of

salvage and/or removal of a wreck.

2. Watercraft repairer’s liability

Notwithstanding Specifi c Exclusion 21. Repairs to

Watercraft, cover under this Section is extended to

include Your liability to pay compensation in respect of:

a. Property Damage to any Watercraft which is in Your

physical or legal control for the purpose of repair,

servicing or maintenance and includes shifting and

moving within the limits of the Marina at which the

work is being carried out, and including trial trips

that do not exceed 15 kilometres from the Marina;

b. Property Damage to any other Watercraft upon which

You are working except Watercraft at sea other than

whilst on trial trips that do not exceed 15 kilometres

from the Marina;

c. Property Damage to contents or other property on or

discharged from any of the Watercraft referred to in

Clauses a. or b. above;

d. Property Damage to machinery or equipment of any

Watercraft, whilst such machinery or equipment is

removed from such Watercraft and is in Your physical

or legal control for the purpose of being worked upon,

including whilst in transit between such Watercraft

and the Premises or whilst in transit to or from

specialist repairers’ or manufacturers’ premises;

e. removal of a wreck;

f. Property Damage to third party property occurring in

the course of or arising from Your service, repair or

maintenance of Watercraft.

Cover for oil or petrol tank vessels or vessels carrying

explosives or other fl ammable liquids is excluded.

Specifi c exclusion 21.Repairs to Watercraft will not


This Additional benefi t does not apply:

i. if the revenue You derive from Your repair, service

and maintenance of Watercraft activities constitutes

more than 20% of Your gross revenue or $200,000

whichever is the lesser, as at the commencement of

the Period of Insurance;

ii. unless the Property Damage is discovered and

reported to Us in writing within 180 days of delivery


23

We will indemnify You or Your employees in respect of

Your legal liability should Watercraft being operated

by You or Your employees in the course of Your Marina

operations or, which may break away from Your Marina

and You become legally liable to pay compensation for:

1. loss of life of, or injury to any person;

2. loss of, or Damage to, or expense in connection

with any fi xed or moveable object or property of

whatsoever nature;

3. costs or expenses of, or incidental to, the removal of

the wreck of the Watercraft when such is compulsory

by law;

4. costs and expenses, incurred with Our approval, of

investigating and/or defending any claim or suit

against You arising out of a liability or an alleged

liability covered above.

This optional benefi t excludes:

a. Any loss of, Damage to, or expense in connection with,

any property owned by, leased to, or rented to, You;

b. Any claim by any employee of Yours;

c. Any liability assumed by You beyond that imposed by

law in the absence of contract.

The deductible applicable to the coverage provided by

this Section shall apply to the coverage granted by this

Optional benefi t.

Specifi c exclusionsYour Policy does not cover any liability:

1. Aircraft, Hovercraft

directly or indirectly arising out of or in any way

connected with:

a. the ownership, possession, maintenance, repair,

operation or use by You or on Your behalf; or

b. any of Your Products which are incorporated into the

structure, machinery or controls;

of any Aircraft or Hovercraft.

2. Asbestos

General exclusion 6. Asbestos applies.

3. Assault and battery


connected with assault and/or battery committed by You

or at Your direction.

This Specifi c exclusion 3 will not apply when such

assault and/or battery is committed for the purpose

of preventing Personal Injury or Property Damage or

avoiding or minimising danger to a person.

b. any site or location used in whole or in part for the

handling, processing, treatment, storage, disposal or

dumping of any waste materials or substances;

c. the cost of evaluating and/or monitoring and/

or controlling seepage and/or Pollution and/or

contaminating substances;

d. the cost of testing, monitoring, containment,

treatment, detoxifying, removing, neutralising

and/or nullifying and/or cleaning up seepage and/

or Pollution and/or contaminating substances on

property at any time owned and/or leased and/or

rented by You and/or under Your control whether or

not any of the foregoing are or should be performed

by You or by others;

e. the actual, alleged or threatened discharge,

dispersal, release or escape of Pollutants caused by

any Products that have been discarded, dumped,

abandoned or thrown away by others;

f. radioactive material or asbestos.

2. General sales

Specifi c exclusion 19 – Building and rebuilding and

exclusion 20 – Other commercial operations do not

apply.

We will indemnify You up to a limit of $1,000,000 each

and every loss or series of losses caused by the one

insured Event in respect of legal liability incurred by

You as outlet for chandlery, provisions and/or general

merchandise, including liability arising out of goods sold.

This optional benefi t excludes any liability out of:

a. faulty design and/or manufacture; or

b. misrepresentation or misdescription of property

for sale.

3. Catering

Specifi c exclusion 20 – Other commercial operations and

exclusion 22 – Certain bodily injury does not apply.

We will indemnify You up to a limit of $1,000,000 each

and every loss or series of losses caused by the one

insured Event in respect of legal liability incurred by You

as owners and/or providers of club house, restaurant bar

and general catering facilities including liabilities arising

out of the supply and/or sale of food and drink.

Where You arrange with other external parties the

provision of any of these facilities, cover under this

Optional benefi t is subject to all rights of recourse

against those other external parties being maintained.

4. P & I endorsement

Specifi c exclusion 22 – Certain bodily injury does not

apply.


24

8. Erections, alterations and additions

directly or indirectly arising out of, or in any way

connected with, the construction, erection, alteration,

demolition of and/or addition to Buildings by You or on

Your behalf.

9. Loss of use

for loss of the use of tangible property (not having been

physically Damaged or destroyed) directly or indirectly

arising out of or in any way connected with:

a. a delay in or lack of performance by You or on Your

behalf in relation to any contract or agreement; or

b. the failure of Your Products to meet the level of

performance, quality, fi tness or durability expressly

or impliedly warranted or represented by You.

This Specifi c exclusion 9.b. does not apply to the loss of

use of other tangible property resulting from the sudden

and accidental physical Damage to or destruction of Your

Products after such products have been put to use by any

person or organisation other than You.

10. Participation

for Personal Injury to any person or Property Damage

to the property of any person directly or indirectly

arising out of or in any way connected with, the actual

participation of such person in any sport, exercise or

activity such as but not limited to racing, competitive

water sports and water skiing.

The term Participation, as used in this Specifi c exclusion

10 includes the participation, training or practice for,

supervision or control of such activities.

This Specifi c exclusion 10 does not apply to Personal

Injury or Property Damage caused by any fault or defect in

equipment provided by You at any Situation owned and/or

occupied by You for the purpose of Your Marina Business.

11. Penalties, liquidated Damages, punitive, exemplary and/or aggravated Damages

for fi nes or penalties imposed by law or liquidated

Damages or punitive, exemplary and/or aggravated

Damages and any additional Damages resulting from the

multiplication of compensatory Damages.

12. Pollution


connected with:

a. the actual, alleged or threatened discharge, dispersal,

release or escape of Pollutants;

b. the testing, monitoring, clean-up, removal,

containment, treatment, detoxifying or neutralising

of Pollutants, whether or not any of the foregoing are

or should be performed by You or by others;

4. Contractual liability

assumed under any contract or agreement.

This Specifi c exclusion 4 does not apply to:

a. liability that would have been implied by law in the

absence of such contract or agreement;

b. liability assumed by You under a warranty of fi tness

or quality regarding Your Products;

c. written contracts declared to and approved by Us in

writing;

d. liability assumed under Incidental Contracts.

5. Defamation, libel and slander


connected with, the publication or utterance of any

libellous, slanderous, defamatory or disparaging

material:

a. made prior to the commencement of the Period of

Insurance;

b. made at Your direction or with Your authority and

with knowledge of its falsity; or

c. related to advertising, broadcasting, telecasting or

publishing activities conducted by You or on Your

behalf.

6. Defect in design


connected with, design, specifi cation or formula provided

by You or any error or omission in respect of such design,

specifi cation or formula.

This exclusion 6. will not apply in respect of any design,

specifi cation or formula in any of Your Products, which

was not provided for remuneration (such as a fee or

commission) whether mixed with remuneration for

other services or not.

7. Employer’s liability

a. for Personal Injury to any Worker.

If You are required by law to insure or otherwise fund,

whether through self insurance, statutory fund or

other statutory scheme, all or part of any common

law liability (whether limited or not) for such

Personal Injury; or

b. imposed by:

i. any Workers Compensation Law;

ii. the provisions of any industrial award or

agreement or determination or any contract of

employment or workplace agreement where such

liability would not have been imposed in the

absence of such industrial award, agreement or

determination;

iii. any law relating to Employment Practices.


25

17. Smoking

for any Personal Injury directly or indirectly arising out of,

or in any way connected with, the inhalation or ingestion

of or exposure to:

a. tobacco or tobacco smoke; or

b. any ingredient or additive present in any articles,

items or goods which contain or include tobacco.

18. Vehicles


connected with, the ownership, maintenance, service,

repair, possession, operation, use or legal control by You

or on Your behalf of any Vehicle.

19. Building and rebuilding


connected with building or rebuilding Watercraft,

chandlering, rigging or painting.

20. Other commercial operations


connected with the operation of any commercial

business other than Your Marina Business at the

Situation(s), including, but not limited to, the operation

of commercial Watercraft, cafés, restaurants or

nightclubs.

21. Repairs to Watercraft


connected with painting or mechanical or structural

repairs to Watercraft.

22. Certain bodily injury

for Personal Injury, unless the Personal Injury occurred

on a Watercraft on water or boarding or alighting from

the Watercraft.

23. Contractors and sub contractors

for bodily injury to contractors and sub contractors or

their employees.

24. Faulty Workmanship

for the cost or expenses incurred in performing,

reperforming, completing, re-completing, correcting or

improving any work or service undertaken or provided by

You or on Your behalf.

c. the actual, alleged or threatened discharge,



abandoned or thrown away by others.

13. Product defect

for Property Damage to Your Products if such Damage

directly or indirectly arises out of or is in any way

connected with:

a. any defect in them or their harmful nature;

b. their unsuitability for the purpose for which they were

intended; or

c. their inherent vice or ineffi ciency or ineffectiveness.

14. Product recall


connected with, the removal, withdrawal, recall,

inspection, repair, reconditioning, replacement or loss

of use of Your Products or any property of which such

Products form a part if they are withdrawn from the

market or from use because of any known or suspected

defect or defi ciency in them.

15. Professional liability


connected with the provision by You or any one on

Your behalf to provide professional advice, surveys

or inspections of Watercraft or any error or omission

connected therewith.

This Specifi c exclusion 15. does not apply to:

a. the rendering of or failure to render medical advice

by Medical Persons employed by You to provide fi rst

aid and other medical services on Your Premises,

other than where Your Marine Business involves the

provision of professional medical services or advice

(which includes dental and veterinary services and

advice) and the provision or sale of medication or

other medical equipment, prosthetics, aids or devices

of any description;

b. Personal Injury or Property Damage where such

professional advice or service is not given or provided

for any remuneration, such as a fee or commission.

16. Property in physical or legal control

for Property Damage to:

a. property owned by or leased or rented to You; or

b. property in Your physical or legal control.

Provided that this Specifi c exclusion 16 will not apply to

liability for Damage to Watercraft owned by third parties.


26

Section Two – Material Damage (Building, Contents and Stock)The coverWhere this Section is shown as insured on the Schedule,

We will pay You in accordance with the applicable

Basis of Settlement if any of the Property Insured shown

in the Schedule under this Section is Damaged at the

Situation(s) by any sudden, unexpected and unforeseen

Event not otherwise excluded occurring during the Period

of Insurance.

Defi nitions

Accidental Damage means Damage, other than by fi re,

Flood, lightning, thunderbolt, explosion, implosion,

earthquake, subterranean fi re, volcanic eruption, impact,

aircraft and/or other aerial devices and/or articles

dropped therefrom, sonic boom, the acts of persons

taking part in riots or civil commotions or of striking and/

or locked-out workers or of persons taking part in labour

disturbances or of malicious persons or the acts of any

lawfully constituted authority in connection with the

foregoing acts or in connection with any confl agration

or other catastrophe, storm and/or tempest and/or

rainwater and/or wind and/or Hail, water or other liquids

or substances discharged, overfl owing or leaking from

apparatus, appliances, pipes or any other system at

the Situation(s) or elsewhere. This defi nition replaces

the defi nition of Accidental Damage in the General

Defi nitions in the Policy in Section 2 only.

Debris means:

1. the residue of Damaged Property Insured; or

2. materials deposited on the Situation as a result of

Damage covered by this Section;

but excludes any material which can cause Pollution

or Contamination and which is deposited beyond the

boundaries of the Situation.

Declared Values are the values of Property Insured at each

Situation declared by You and calculated as applicable in

accordance with the Basis of Settlement.

Pollution or Contamination means Damage or loss

arising out of the discharge, dispersal, release or escape

of smoke, vapours, soot, fumes, acids, alkalis, toxic

chemicals, liquids or gases, waste materials or other

irritants, contaminants or pollutants into or upon any

property, land, atmosphere or any watercourse or body of

water (including groundwater).

Specifi c conditions

1. Premium adjustment

Where the premium for this Section has been calculated

on the estimates given by You, You must keep accurate

records containing all relevant particulars of Your

estimates and at any reasonable time allow Us to inspect

such records.

Following the expiry of the Period of Insurance You must

supply Us with such records as We may reasonably

require to determine what the actual fi gures were for the

Period of Insurance.

The difference between the premium based on the

actual fi gures at the end of the Period of Insurance and

the premium calculated at inception will be paid by

or allowed to You, as the case may be, in any event a

minimum retained premium equivalent to 75% of the

full premium based on the initial estimates or as may

otherwise be agreed, will be retained by Us.

We agree to waive any adjustment of premium where the

difference between the actual and the estimate given to

Us by You is less than 10%.

2. Reasonable care and maintenance

You must:

a. take reasonable precautions to prevent the

manufacture, sale or supply of defective products;

b. at Your expense, take reasonable action to trace,

recall or modify any products containing any defect

or defi ciency, which defect or defi ciency You have

knowledge of or have reason to suspect.

If You do not meet the above condition, We may

cancel Your Policy and/or reduce or refuse to pay a

claim

3. Underinsurance

We require You to insure the maximum potential risk.

If You do not, You are underinsured and We may pay

You less in the event of a claim calculated in accordance

with either the Policy wording or the Marine Insurance

Act 1909 which takes into account the degree of

underinsurance.


27

k. on empty Premises awaiting demolition: the salvage

value of building materials, fi xtures and fi ttings;

l. on storm, tempest, rainwater and Hail Damage

to hail nets, textile canopies, awnings and blinds:

Replacement less 10% for each twelve (12) month

period or part thereof that has elapsed since

installation.

For the purpose of determining the classifi cation

under which any Property Insured falls, We agree to

accept the designation applied to such property by

You in Your records, providing such property is not

specifi cally excluded by this Section and falls within

any relevant defi nition.

2. For the purpose of this Section, the terms

Reinstatement or Replacement will apply as follows:

Reinstatement or Replacement (Applicable to Buildings

and Contents in Clauses 1.a., 1.i. and 1.j. of the Basis of

Settlement):

The amount payable will be Reinstatement or

Replacement of the Damaged Property Insured at the

time of its Reinstatement or Replacement, subject to

the following provisions and subject also to the terms,

conditions and Limits of Indemnity in this Section.

“Reinstatement” will mean:

a. where Property Insured is wholly destroyed, in the

case of a Building, the rebuilding of it, or, in the case

of property other than a Building, the replacement of

it with similar property, in either case rebuilding or

replacing it in a condition equal to, but not better or

more extensive than, its condition when new;

b. where Property Insured is Damaged in part only,

the repair of the Damage and the restoration of

the Damaged portion of the Property Insured to a

condition substantially the same as, but not better

or more extensive than, its condition when new,

and including demolition or destruction of sound

property necessary for the purpose of this repair or

restoration;

Provided that:

c. the work of rebuilding, replacing, repairing or

restoring, as the case may be (which may be carried

out upon any other site and in any manner suitable

to Your requirements, but subject to Our liability

not being increased), must be commenced and

carried out within a reasonable period, failing which

We will not pay more than the Indemnity value of

the Damaged Property Insured at the time of the

happening of the Damage;

d. where Property Insured consists of equipment,

machinery or plant and We settle Your claim using

an item or items with greater function, capacity

or output, and the new installed cost of such

Sea means all oceans, seas, bays, ports or tidal waters.

Storm Surge means the short period rise or fall of the sea

level produced by a cyclone.

Water includes snow, sleet or Hail.

Basis of Settlement1. The Basis of Settlement will be:

a. on Buildings and Contents (other than those specifi ed

below): Reinstatement or Replacement, as set out in

Clauses 2. to 7. below, where applicable, unless stated

as Indemnity in the Schedule;

b. on Total loss of Your Stock of Watercraft: the Market

Value of the Watercraft but not exceeding the Stock

Card value;

c. on Total loss of customers’ Watercraft: the Market

Value of the Watercraft plus the net cost of service or

repair performed as shown in Your Stock Card;

d. on Customers’ Goods other than Watercraft: the

Indemnity value;

e. on partial loss of Watercraft and Customers’ Goods:

the cost of repairs as assessed by an assessor

appointed by Us. In determining the assessed cost of

repairs, We will take into account discounts You may

reasonably be able to achieve when arranging bulk

purchases of repair services;

f. on Parts and Accessories and Stock in Trade other

than Watercraft and stock contained in Basis of

Settlement 1.g.: Replacement;

g. on stock of cigarettes, alcohol, DVDs and videos: the

Indemnity value;

h. on computer systems records, Documents, deeds,

wills, agreements, manuscripts, specifi cations, plans,

drawings, designs, business books and other records

of every description: the cost of reinstating, replacing,

reproducing or restoring them, including information

contained in or on them, but excluding the value to

You of that information; or, if this is not required,

replacement of materials such as blank stationery at

the time and place of the Damage.

The maximum amount We will pay for any one Event

is $25,000 unless such other amount is specifi ed

in the Schedule against the Sub limit “Rewriting of

Records”;

i. on Directors’, Partners’ and Employees’ Personal

Property (other than tools of trade): Reinstatement or

Replacement;

j. on employees’ tools of trade: Reinstatement or

Replacement;


28

f. We will not pay for the additional costs incurred

in complying with any Act, regulation, by-law or

requirement which You had been required to comply

with prior to the happening of the Damage.

4. Floor space ratio index (plot ratio)

Where Reinstatement or Replacement is shown on

the Schedule and the Buildings are Damaged and

Reinstatement of the Damage is limited or restricted by:

a. any Act of Parliament or Regulation under an Act; or

b. any by-law or regulation of any Municipal or other

Statutory Authority;

resulting in the reduction of the fl oor space ratio index

(plot ratio) of the site, then We will pay, in addition to any

amount payable on Reinstatement of these Buildings, the

difference between:

c. the actual costs incurred in Reinstatement subject to

the reduced fl oor space ratio index (plot ratio); and

d. the estimated cost of Reinstatement at the time of

Damage had the reduced fl oor space ratio index (plot

ratio) not applied.

Our liability arising from any one Event for Damage or

expenses caused by any of the Events covered by this

Section will not exceed in aggregate the Declared Value

stated in the Schedule for the Building that is the subject

of the claim.

5. Undamaged foundations

If, where a Building is destroyed but the foundations

are not, and, due to the exercising of statutory powers

and/or authority by any government department, local

government or other statutory authority, Reinstatement

of the Building has to be carried out upon another site,

then the abandoned foundations will be considered to be

destroyed.

Provided that, if the presence of the abandoned

foundations increases the resale value of the original

Building site, then the increase in resale value will be

regarded as salvage and be payable to Us.

6. Abandoned un Damaged portion of a Building

If Building(s) are Damaged and, due to the exercise of

statutory powers or delegated legislation or authority by

any government department, local government or other

statutory authority, Reinstatement of such Building is

carried out upon another site, then the abandoned un

Damaged portion of such Building shall be deemed to

have been destroyed. However, the presence of such

abandoned undamaged portion of the Building increases

the sale value of the original site, the increase in sale

value shall be regarded as salvage and the amount

thereof shall be payable to Us by You upon completion

of any sale of the site or shall be deducted from the total

replacement property is greater than the replacement

cost of the Damaged property, the amount payable is

the lesser of:

i. Replacement; or

ii. that proportion of the new installed cost of the

replacement item or items which the output of

the property Damaged bears to the output of the

replacement item or items.

e. when any Property Insured to which this Clause

applies is Damaged in part only, Our liability will not

exceed the sum representing the cost which We could

have been called upon to pay for Reinstatement if the

Property Insured had been wholly destroyed.

3. Extra cost of Reinstatement: (Applicable to

Buildings, machinery and plant under Basis of Settlement

1.a.)

Where Reinstatement or Replacement Basis of

Settlement is shown in the Schedule, this Section extends

to include the extra cost of Reinstatement (including

demolition or dismantling) of Damaged Property Insured

necessarily incurred to comply with the requirements of

any Act of Parliament or Regulation made under an Act

or any by-law or the regulation of any municipal or other

statutory authority, subject to the following provisions

and subject also to the terms and conditions of this

Section and Sub limit against this item.

Provided that:

a. the work of Reinstatement must be commenced and

carried out within a reasonable period, failing which

We will not pay more than the amount which would

have been payable under Your Policy if this additional

coverage had not been included;

b. the work of Reinstatement may be carried out wholly

or partially upon any other site, if the requirements of

the Act, regulation or by-law necessitate it, subject to

Our liability not being increased;

c. all other fi re and perils insurances covering the

Property Insured effected by You or on Your behalf are

on a similar basis;

d. if the cost of Reinstatement of Damaged Property

Insured is less than 50% of that which would have

been the cost of Reinstatement if the Property Insured

had been totally destroyed, the amount We will pay

will be limited to the greater of:

i. the extra cost necessarily incurred in reinstating

only that portion Damaged; or

ii. the Sub limit shown in the Schedule against Extra

Costs of Reinstatement (if stated in the Schedule);

e. Our total liability will not exceed 50% of the Declared

Value specifi ed in the Schedule for the relevant

Property Insured;


29

the relevant Additional benefi t, or if no amount is shown

in the Schedule, then the amount paid will be limited to

the amounts shown below. Additional benefi ts 11., 15.,

16., 17. and 18. will be paid in addition to the Limit of

Indemnity. All other Additional benefi ts will only be paid

to the extent that the Limit of Indemnity is not otherwise

exhausted.

1. Removal of Debris

a. The removal, storage and/or disposal of Debris, or

the demolition, dismantling, shoring up, propping

up, underpinning or other temporary repairs of any

Property Insured;

b. The removal, storage and/or disposal of Debris from

premises, roadways, services, railways or waterways

owned by any other person or entity where You

are required by law to remove, store or dispose of

such Debris resulting from Damage, providing such

liability has not arisen from any agreement made

by You after the commencement of the Period of

Insurance unless liability would have attached in the

absence of such agreement;

c. The demolition and removal of any Property Insured

belonging to You, providing such demolition

and removal is necessary for the purpose of the

Reinstatement or Replacement.

Provided that such costs are incurred following Our

written consent. The maximum amount We will pay for

any one Event is $20,000 or 20% of the Declared Value of

the Property Insured, whichever is the greater, unless

such other amount is specifi ed in the Schedule.

2. Temporary protection

Temporary protection and safety of Property Insured

pending replacement or repair of Damage covered by this

Section, to a maximum of $25,000 any one Event.

3. Professional fees

Architects, surveyors, consulting engineers, legal and

other fees and clerks of works’ salaries for estimates,

plans, specifi cations, quantities, tenders and supervision

necessarily incurred in Reinstatement because of

Damage to Property Insured, but not costs, fees and

salaries for preparing any claim under Your Policy,

provided that such costs are incurred with Our written

consent.

4. Government fees

Any fee, contribution or other impost payable to any

government, local government or other statutory

authority where payment of the fee, contribution or

impost is a condition precedent upon the obtaining of

consent to reinstate any Property Insured, provided that

We will not be liable for payment of any fi nes and/or

penalties imposed upon You by any such authorities.

amount otherwise payable by Us under Your Policy,

whichever shall occur later.

All differences relating to the amount of such increase

in site value shall forthwith be referred to the decision

of two registered valuers; one to be appointed by each

of the parties to the Policy. If the two valuers do not agree,

their differences shall be referred to the decision of a

third valuer, appointed by the President of the Australian

Institute of Valuers, as an expert whose decision shall

be binding.

7. Special conditions applying to Basis of Settlement

a. Until You actually incur the cost of Reinstatement, We

will not pay any more than We would be required to

pay to indemnify You under the Policy;

b. The amount recoverable will not include any

cost incurred by You in complying with any Act,

regulation, by-law or requirement with which You

had been required to comply before the happening of

the Damage.

Limit of IndemnityOur liability arising from any one Event at any one

Situation will not exceed the Limit of Indemnity stated in

the Schedule in respect of the Property Insured that is the

subject of the claim.

ExcessYou must bear the Excess that applies to this Section.

a. In respect of Damage caused by Hail to Stock of

Watercraft in the open air, the Excess will be:

a. $1,000 for each Watercraft; and

b. $30,000 in total for any one Event

b. In respect of Damage caused by earthquake,

subterranean fi re, volcanic eruption or tsunami, the

Excess will be the lesser of:

a. $20,000; or

b. an amount equal to 1% of the total Declared Value

for all of Your Buildings, Contents and Stock in

Trade at the Situation.

Additional benefi tsUpon a claim being admitted under this Section, We will

pay for the consequential, reasonable and necessary

costs that are incurred for Additional benefi ts 1. to 10.,

15., 17. and 18.

For Additional benefi ts 11. to 14., 16., 19. and 20, We will

extend cover as specifi ed.

Our liability for Additional benefi ts 1. to 20. will be

limited to the amount shown in the Schedule against


30

(unless such other amount is specifi ed in the Schedule),

whichever is the lesser.

12. Temporary removal

We will cover Property Insured (other than laptop

computers, Directors’, Partners’ and Employees’ Personal

Property and employees’ tools of trade) while temporarily

removed to other situations within the Territorial limits.

Provided that:

a. this Additional benefi t is subject to all other Sub

limits expressed elsewhere within this Section (e.g.

Accidental Damage);

b. for Watercraft, this Additional benefi t will apply to

Watercraft temporarily removed from the Situation

for the purposes of service, repair, the fi tting of Parts

and Accessories, temporary and incidental storage,

display or sale, but does not provide cover while

Watercraft are being driven under their own power.

The maximum We will pay pursuant to this Clause

b. will be the lesser of $50,000 or 20% of the sum of

the Declared Value for Stock of Watercraft and for

Customers’ Watercraft;

c. for Contents and Stock in Trade other than

Watercraft, the maximum We will pay pursuant to

this Additional benefi t will be the lesser of $10,000 or

10% of the Declared Value for Contents and Stock in

Trade (excluding the value of Watercraft) unless such

other amount is specifi ed in the Schedule;

d. this Additional benefi t will not apply to any Property

Insured which has been removed for a period greater

than ninety (90) days without Our prior written

consent;

e. while temporarily removed Property Insured is in

transit, cover is limited to Damage arising out of:

i. fi re;

ii. lightning or thunderbolt;

iii. explosion;

iv. Flood;

v. earthquake;

vi. impact by aircraft or other aerial devices or

articles dropped therefrom;

vii. riot, civil commotion, striking and/or locked-out

workers;

viii. malicious Damage;

ix. storm and/or tempest;

x. water bursting, overfl owing or discharging or

leaking from water tanks, pipes or apparatus;

xi. sprinkler leakage;

5. Directors’, Partners’ and Employees’ Personal Property

The repair or Replacement of Directors’, Partners’ and

Employees’ Personal Property which is Damaged by an

Event covered by this Section, but only if such property

was at the Situation at that time. The maximum We will

pay under this Additional benefi t is $5,000 for any one

person and a maximum of $10,000 for any one Event.

6. Employees’ tools of trade

The repair or Replacement of employees’ tools that are

Damaged by an Event covered by this Section, but only

if such property was at the Situation at that time. The

maximum We will pay under this Additional benefi t is

$5,000 for any one employee and a maximum of $10,000

for any one Event unless such other amount is specifi ed

in the Schedule against the Sub limit for Employees’ tools

of trade.

7. Liability to make enquiries

The costs and expenses incurred in respect of Your legal

liability to make enquiries, consequent upon Damage to

the Property Insured, limited to $10,000 for any one Event.

8. Cost of clearing drains

The cost of clearance of drains blocked by Debris caused

by any sudden, unexpected and unforeseen Event,

including expenses necessarily incurred in clearing

and/or replacing drains, gutters, sewers, etc. at or in the

vicinity of the Situation, limited to $10,000 for any one

Event.

9. Fire extinguishment costs

The reasonable costs, not exceeding $25,000 (unless such

other amount is specifi ed in the Schedule), for any one

Event, necessarily incurred by You in the extinguishment

of any fi re at Your Situation, or any fi re that threatens

Your Property Insured.

This will include the wages of employees necessarily and

reasonably incurred in extinguishing the fi re and the cost

of replenishing fi re-fi ghting appliances.

10. Expediting Expenses

The costs and expenses incurred by You for 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,

limited to $5,000 in respect of any one Event unless such

other amount is specifi ed in the Schedule.

11. Capital additions

Cover, as Property Insured, any alterations and additions

during the Period of Insurance to the Property Insured,

other than Stock in Trade, to an amount not exceeding

10% of the Declared Value for such property or $500,000


31

17. Loss of land value

We will cover the reduction in land value resulting

from the requirements of any statute or regulation

or any municipal or statutory authority that does not

allow rebuilding or only allows partial rebuilding at the

Situation following Damage covered under this Section.

Provided that:

a. the amount payable shall be calculated by

subtracting the land value after rebuilding or after We

have agreed that rebuilding is not possible from the

land value before Damage less any sum paid by any

authority to You by way of compensation; and

b. the maximum amount We will pay for this Additional

benefi t will be 10% of the Declared Value shown

for Buildings at the Situation where the Damage

happened or $100,000, whichever is the lesser.

18. Temporary protection at new situation

We will cover, for a period of up to thirty (30) consecutive

days during the Period of Insurance from the fi rst use of

any new Situation, Property Insured at that new Situation

that is used by You for Your Marine Business.

Provided that:

a. this temporary cover is not available to property that

cannot be correctly designated to one of the items/

categories of Property Insured that is shown in the

Schedule as covered;

b. this temporary cover is only available to property that

is of a similar type to that insured by this Section;

c. this temporary cover is limited to 10% of the highest

Declared Value shown in the Schedule for that item of

property;

d. the new situation has buildings, fi re protection and

security features that are similar to those at one of the

Situations shown in the Schedule;

e. cover for that Property Insured will cease unless You

provide Us with full details of the new situation, and

We agree to provide cover, and We agree on Limits

of Indemnity, and You agree to pay any additional

premium We may require;

f. in no case shall the temporary cover provided under

this Additional benefi t extend beyond the Period of

Insurance.

19. Minimisation of Damage

We will cover Property Insured removed from Your

Premises if Your Premises are threatened by an Event

covered by this Policy Section, provided that the purpose

of the removal is to prevent or minimise Damage.

The maximum amount We will pay for any one Event for

this Additional benefi t is $25,000.

xii. Vehicle collision or overturning although Vehicles

forming part of the Property Insured are not

covered whilst being used under their own power.

13. Documents

We will cover Documents, as Property Insured, anywhere

within the Territorial limits up to a limit of the lesser of

5% of the Contents Declared Value or $10,000 while:

a. in the actual possession of any of Your partners,

directors or authorised employees including while

held in their private residence or in their locked

Vehicle;

b. in the actual possession of any other person to whom

the Documents have been entrusted or with whom

the Documents have been deposited in the normal

course of business;

but excluding:

c. Documents in transit by courier or post.

14. Exploratory costs

We will cover the reasonable costs of identifying and

locating the source of the Damage for which a claim is

payable, where such Damage is caused by the discharge,

overfl owing or leakage from fi xed apparatus, fi xed

appliances, fi xed pipes or other systems used to hold

or convey liquid of any kind, but We will not pay for the

repair or Replacement of such apparatus, appliances,

pipes or other systems which give rise to the Damage.

The maximum amount We will pay under this Additional

benefi t is limited to $20,000 for each Event.

15. Landscaping

We will cover the reasonable cost of landscaping, which

term includes trees, shrubs, plants and lawns but not

roadways and paths. Specifi c exclusions 1.j. and 1.k. will

not apply to this Additional benefi t.

We will not pay for Damage to landscaping caused by

storm, tempest or Water.

The maximum amount We will pay under this Additional

benefi t is limited to $10,000, unless such other amount is

specifi ed in the Schedule.

16. Seasonal increases in the Stock Values

We will cover an increase the Declared Value for Stock in

Trade by 30% during the following periods:

a. from sixty (60) days before Christmas to the twentieth

day following, both days inclusive; and

b. from thirty (30) days before Easter Sunday to the

twentieth day following, both days inclusive;

unless stated otherwise in the Schedule.


32

b. it is unavailable for sale for a period exceeding

fourteen (14) continuous days,

We will pay You an additional amount equal to the lesser

of 5% of the Stock Card value at the time of Damage or the

amount We will otherwise pay You in accordance with

the Basis of Settlement for each Watercraft. We will not

pay more than $10,000 for any one Watercraft.

Specifi c exclusions

1. Property

We will not pay for loss or Damage to:

a. property undergoing construction, erection,

alteration or addition when the value of work

exceeds 20% of the Declared Value on Buildings at the

Situation, or $500,000, whichever is the lesser;

b. vacant Premises undergoing demolition;

c. property while in transit, other than:

i. during the incidental movement of the property

within Situations occupied by You; and/or

ii. as provided under Additional benefi t 12.

Temporary removal, Additional benefi t 13.

Documents, and Additional benefi t 20. Parts and

Accessories in transit;

d. Money;

e. jewellery, furs, bullion, precious metals or precious

stones, unless they are on the Premises at the

Situation at the time of the Damage, and then limited

to an amount not exceeding $2,000 per item and

$10,000 in total;

f. works of art, antiques, sporting memorabilia and

curios, unless they are on the Premises at the

Situation at the time of the Damage, and then limited

to an amount not exceeding $2,000 per item and

$10,000 in total;

g. any locomotive, rolling stock, or aircraft, including

their accessories and/or parts;

h. Vehicles or trailers, Watercraft, caravans or

motorcycles, other than for Your Stock in Trade and

Customers’ Goods while at or parked immediately

adjacent to the Situation or as allowed for in

Additional benefi t 12. Temporary removal. This

exclusion will not apply to unregistered forklifts used

by the Insured at the Situation.

i. livestock, animals, birds or fi sh;

j. standing timber, growing crops and pastures;

k. land, provided that this exclusion will not apply to

structural improvements that are not otherwise

excluded in this Section or as described in Additional

benefi t 17. Loss of land value;

20. Parts and Accessories in transit

We will cover Parts and Accessories up to $10,000 for any

one load while in transit between:

a. a manufacturer’s or wholesaler’s premises and Your

Situation;

b. Your Situation and Your customers’ premises;

in a Vehicle or trailer owned or driven by You, Your

employee, or Your Family Member working in Your

Marine Business, and caused by fi re, Flood, Vehicle

collision or overturning.

21. Advertising costs

Where Your Stock of Watercraft is Damaged by Hail

and covered under this Section, We will pay for Your

advertising costs expended on such Damaged Watercraft

after Damage, up to a maximum of $200 for any one

Watercraft and limited in total to $10,000 for any one

Event in relation to all Watercraft.

Such expenditure must be over and above Your normal

advertising expenditure and for the sole purpose of

avoiding or diminishing the loss that would otherwise

have occurred and must be supported by evidence of

costs incurred.

Optional benefi tsThe following Optional benefi t is operative only when


1. Fusion

We will cover You against Damage to any part or parts

of the electrical, electromechanical and electronic

machines, switchboards, installations or apparatus

forming part of the Property Insured (excluding rectifi ers,

radio, television or amplifying equipment of any

description) caused by the actual burning out of such

part or parts by the electric current therein.

We will not pay under this Optional benefi t for:

a. loss of use, depreciation, wear and tear;

b. Damage to:

i. lighting or heating elements, fuses or protective

devices;

ii. electrical contacts at which sparking or arcing

occurs in ordinary working.

c. more than $2,000 for any one Event at any one

Situation.

2. Diminished Value Allowance

Where a Watercraft is Damaged by Hail and covered

under this Section, and:

a. We agree that it must be sold for less than the

expected selling price; or


33

i. Pollution or Contamination at the Situation

resulting from fi re, lightning, explosion, aircraft

or other aerial devices or articles dropped

therefrom, riot, civil commotion, striking and/or

locked-out workers, persons taking part in labour

disturbances, malicious Damage, earthquake,

storm, the bursting, overfl owing, discharging

or leaking of water tanks, apparatus or pipes,

sprinkler leakage or impact by any Vehicle,

Watercraft or animal;

ii. any of the perils listed in Clause i. above resulting

from Pollution or Contamination;

f. mechanical, hydraulic, electrical or electronic

breakdown, failure, malfunction or derangement of

any machine or electrical or electronic device except

to the extent You have cover for this under Optional

benefi t 1. Fusion;

g. Accidental Damage, unless specifi ed in the Schedule

as insured and then only up to the Sub limit specifi ed

in the Schedule;

h. Flood, unless specifi ed in the Schedule as insured

and then only up to the Sub limit specifi ed in the

Schedule;

i. the action of the Sea, tidal wave, Storm Surge or high

water, except that caused by or arising from tsunami;

j. seepage or percolation of Water or Water entering the

Premises because of structural defects, faulty design

or faulty workmanship;

k. erosion, subsidence, earth movement or collapse,

unless Damage is caused by or results from an

earthquake or seismological disturbance;

l. the actions of birds, vermin, moths, termites, or

other insects, mildew, mould, disease, wet or dry

rot, change of colour, evaporation, dampness of

atmosphere or variations in temperature;

m. wear and tear, corrosion, rust or oxidation,

fading, chipping, scratching or marring, gradual

deterioration or the development of fl aws, or any

normal upkeep or making good;

n. error or omission in design, plan or specifi cation or

failure of design;

o. normal settling, seepage, shrinkage or expansion in

Buildings or foundations, walls, pavements, roads

and other structural improvements;

p. faulty materials or faulty workmanship;

q. creeping, heaving or vibration;

r. inherent vice or latent defect;

s. change in texture or fi nish;

t. smut or smoke from industrial operations;

l. bridges, canals, roadways, tunnels, railway tracks,

dams and reservoirs (other than tanks) and their

contents;

m. docks, wharves, piers and pontoons or similar

structures, not forming part of any Building,

Damaged by tidal movement, high tide, swell,

tsunami, Storm Surge or other action of the Sea.

n. mining property located beneath the surface of the

ground, unless otherwise stated in this Section;

o. retaining walls, caused by wind and/or Water;

p. property in the open air, if caused by wind and/or

Water, unless such property comprises or forms

part of a permanent structure designed to function

without the protection of walls or roof. This exclusion

will not apply to display and promotional items, Your

Stock in Trade and Customers’ Goods;

q. Damage to glass that can be insured under Policy

Section Seven – Crime;

r. Watercraft or fl oating piers and pontoons for which

cover could have been obtained under, or would

have been covered but for the effect of any Specifi c

exclusion within, Section One – Marina Liability,

Section Four – Watercraft Repairer’s Liability or

Section Six – Vessels, Piers and Pontoons.

2. Events and types of Damage

We will not pay for loss or Damage caused directly or

indirectly by or in connection with or arising from or

occasioned through:

a. the incorrect siting of buildings;

b. demolition, other than demolition by or ordered by

a public authority provided that such demolition or

order for demolition work does not exceed the lesser

of $250,000 or 20% of the total Declared Values on

Building and Contents. This Clause does not override

Specifi c Exclusion 2.a. or Property exclusions 1.a. and

1.b. above;

c. unexplained or inventory shortage or disappearance

resulting from clerical or accounting errors or

shortage in the supply or delivery of materials to or

from You or loss induced by deception;

d. spontaneous combustion, fermentation or heating

or any process involving the direct application of

heat, provided that this exclusion will be limited to

the item or items immediately affected and will not

extend to other property Damaged as a result of such

spontaneous combustion, fermentation or heating;

e. Pollution or Contamination except loss or destruction

of or Damage to Property Insured at Your Situation

caused by:


34


1. Hazardous goods

Unless otherwise specifi cally provided for elsewhere in this

Section, the storage and use of hazardous goods usual to

Your Marine Business is allowed in quantities and manner

as permitted by the relevant law, by-law or regulation of

any government, local government, statutory authority or

other legally constituted public body.

2. Contractual agreements

Where You enter into a lease for occupancy of any

Building and the terms of the lease contain a disclaimer

clause in favour of the lessor, or You have been required

by contractual agreement to release railways, local

governments, governments or semi-government

authorities from liability arising from Damage covered

under this Section, this insurance will not be prejudiced

by You agreeing to such disclaimers or agreements.

3. Underinsurance

In the Event of Damage to the Property Insured, We will

be liable for no greater proportion of the Damage than

the Declared Value bears to 85% of:

a. where the Basis of Settlement is Reinstatement

or Replacement, the relevant Reinstatement or

Replacement cost of the Property Insured;

b. where the Basis of Settlement is Indemnity, the value

of the Property Insured;

on the day of commencement of the Period of Insurance.

This Clause will not apply if the amount of the Damage

is less than 5% of the Declared Value.

Every Situation insured and Property Insured type is

separately subject to this Clause. If You have more than

one Situation, We will make reasonable allowance for

the normal movements of Stock in Trade between Your

Situations.

This Specifi c condition will not apply to each of the

Additional benefi ts or Basis of Settlement 3. Extra cost

of Reinstatement.

4. Automatic sprinklers, alarms and/or chemical extinguishers

If an installation of automatic sprinklers and/or an

automatic external alarm signal connected with a fi re

brigade station, and/or fully charged portable chemical

extinguishers of approved design as permitted by the

local fi re authority having jurisdiction, are in or on any

Building insured under this Section, then You must use

due diligence in maintaining all such equipment in good

working order.

u. the roots of trees or other plants;

v. kidnapping, bomb threat, hoax, extortion, or any

attempt thereat;

w. any breach by You, or with Your consent, of any law, by-

law, government, local government, statutory authority,

or other legally constituted public body’s regulation

dealing with the storage of hazardous goods;

x. access by persons not authorised by You to access

Your computer systems and records;

y. the explosion, implosion, rupture, collapse, bursting,

cracking or overheating of any boiler (other than a

boiler used for domestic purposes), economiser or

pressure Vessel (including pipes, valves and other

apparatus forming part of the boiler or pressure

Vessel) for which a certifi cate is required to be issued

under the terms of any statute or regulation.

However, if You can verify that You have in all respects

complied with the usage, inspection, maintenance

and replacement requirements of all applicable

standards, laws and regulations, We will pay up to a

limit of $20,000 for the explosion, implosion, rupture,

collapse, bursting, cracking or overheating of any

boiler, economiser or pressure Vessel (including

pipes, valves and other apparatus forming part of the

boiler or pressure Vessel) of a boiler, economiser or

pressure Vessel any one Event.

The provisions of this exclusion will only apply to the

boiler and/or pressure Vessel affected.

The provisions of this exclusion shall not apply to

Policy Section Three – Business Interruption.

z. fraud or dishonest acts, embezzlement, forgery,

erasure, counterfeiting and misappropriation by

electronic means or otherwise;

aa. loading or unloading, delivery or dispatch;

bb. loss induced by deception;

cc. testing, intentional overloading or experiments;

dd. the processing of Property Insured;

ee. the cessation of work, whether total or partial, or the

cessation, interruption or retarding of any process

or operation as a result of any industrial dispute.

This exclusion shall not apply to any Damage caused

directly by persons participating in an industrial

dispute;

ff. loss or Damage as a result of theft or attempted theft;

gg. Hail Damage to Your Stock of Watercraft in the open

air unless specifi ed in the Schedule.

We will pay for Damage to Property Insured proximately

caused by any circumstances not excluded under this

Section, notwithstanding that other causes identifi ed in

Specifi c exclusions 2.f. to 2.ff contributed to the Damage.


35

Section Three – Business InterruptionThe coverWhere this Section is shown as insured on the Schedule,

We will indemnify You, in accordance with the Basis of

Settlement, against loss resulting from interruption of or

interference with the Marine Business in consequence of

Damage occurring during the Period of Insurance:

1. to Insured Property for which You are insured by Us or

would have been had there not been an Excess, under

Section Two – Material Damage (Building, Contents

and Stock) or Section Seven – Crime;

2. to any boiler, pressure Vessel, compressor or

economiser at the Situation for which a certifi cate is

required to be issued under the terms of any statute

or regulation;

3. to other property which, had it been insured under

Your Policy, would have resulted in an admissible

claim under Section Two – Material Damage

(Building, Contents and Stock) or Section Seven –

Crime and which occurs:

a. within 20 kilometres of Your Situation which

prevents the use of or access to the Situation;

and

b. at any electricity station or substation, gas works

or water works of a public supply undertaking

from which You obtain electric current, gas or

water, provided that where the public supply

undertaking is not at or immediately adjacent to

Your Situation, the interruption of supply must

extend for longer than forty-eight (48) hours.

The Policy will not indemnify You against loss

resulting from interruption of or interference with

the Marine Business in consequence of Damage

for the fi rst 48 hours of loss of the public supply;

4. arising from compulsory closure or evacuation of the

whole or part of the Situation by order of a competent

public authority as a result of:

a. infectious or contagious disease manifested

by any person while at the Situation;

b. vermin or pests or defects in the drains or other

sanitary arrangements at the Situation;

c. the outbreak of a notifi able human infectious

or contagious disease occurring within a

20 kilometre radius of the premises;

d. poisoning directly caused by the consumption

of food or drink provided at the Situation;

Written notice of all alterations and additions to any such

installations whether in Buildings owned by You or not

must be given by You to Us without delay and if, in the

exercise of due diligence in the proper maintenance of the

automatic sprinkler equipment, it becomes necessary:

a. to disconnect any water supply to the sprinkler

installation; or

b. to remove any sprinkler; or

c. to render any alarm inoperative;

in any portion of any Building under Your control for

any period exceeding twenty-four (24) hours in total,

spread over the hours of daylight of not more than

three (3) consecutive days. Notice of it must be given by

You to Us beforehand, except in cases of emergency or

impracticability only, when such notifi cation must be

given with the least possible delay.

In the Event of any failure by You to comply with the

above, We will not be liable for Damage to any Property

Insured caused or contributed to by such disconnection,

removal or rendering inoperative.

5. One Event for Earthquake, cyclone and Hail

Only for the purpose of the application of any Excess,

all Damage caused by earthquake, volcanic eruption,

subterranean fi re or atmospheric condition occurring

during each period of seventy-two (72) consecutive hours

will be considered as one Event, whether any of these

causes is continuous or sporadic in its sweep and/or

scope and the Damage is due to the same seismological

or atmospheric conditions. Each Event will be considered

to have commenced on the fi rst happening of any such

Damage and not within the period of any previous Event.

6. Waiting period for Hail and cyclone Damage

Cover for Hail or cyclone Damage to Property Insured will

not commence until forty-eight (48) hours after 4pm on

the day We agree to cover You for the relevant Property

Insured. This applies to each item of Property Insured

from the time it is added to the cover.


36

the Damage that corresponds with the Indemnity Period

(appropriately adjusted where the Indemnity Period

exceeds twelve (12) months).

Turnover means the money (less discounts, if any

allowed) paid or payable to You for goods sold and

delivered and for services rendered in course of the

Marine Business at the Situation.

Uninsured Working Expenses means those expenses You

chose not to insure as shown in Your Proposal.

Basis of SettlementWe will pay You:

1. Gross Profi t

the actual loss of Gross Profi t due to a reduction in

Turnover and increase in cost of working. The amount

payable will be:

a. Reduction in Turnover

in respect of reduction in Turnover: the sum produced

by applying the Rate of Gross Profi t to the Shortage in

Turnover;

b. Increase in Cost of Working

in respect of increase in cost of working: the additional

expenditure necessarily and reasonably incurred for the

sole purpose of avoiding or diminishing the reduction

in Turnover that, but for that expenditure, would have

taken place during the Indemnity Period in consequence

of the Damage, but not exceeding the sum produced by

applying the Rate of Gross Profi t to the amount of the

reduction so avoided;

c. Expense saving

less any sum saved during the Indemnity Period in

respect of the charges and expenses of the Marine

Business payable out of Gross Profi t that cease or are

reduced in consequence of the Damage.

2. Payroll

loss in respect of Payroll which is limited to loss due to a

reduction in Turnover and increase in cost of working.

The amount payable will be:


in respect of reduction of Turnover:

i. during the part of the Indemnity Period beginning

with the occurrence of the Damage and ending not

later than the number of weeks specifi ed in the

Schedule after that; the sum produced by applying

the Rate of Payroll to the Shortage in Turnover

during that part of the Indemnity Period less any

saving during that part of the Indemnity Period,

through reduction in the amount of Payroll paid in

consequence of the Damage;

e. murder or suicide occurring in or at the Situation.

However, there is no cover under Defi ned Event

4.a. or .c. due to Highly Pathogenic Avian Infl uenza

in Humans or any and other disease declared to

be a quarantinable disease under the Quarantine

Act 1908 (including amendments).

The maximum combined amount We will pay

for losses arising from closure or evacuation is

$200,000 any one Period of Insurance.

5. to fl oating Piers and Pontoons insured under Section

6, Part A and resulting from one of the defi ned perils

(i) to (viii) listed on page 54 of the Policy wording.

Defi nitions

Annual Turnover means the Turnover during the 12

months immediately before the date of the Damage.

Declared Value are the values of Gross Profi t and

Payroll declared by You and calculated as applicable in

accordance with the Basis of Settlement.

Gross Profit means the amount by which the sum of

the Turnover and the amount of the closing stock and

work in progress exceeds the sum of the amount of the

opening stock and work in progress and the amount of

the Uninsured Working Expenses. The amounts of the

opening and closing stocks and work in progress will be

arrived at in accordance with Your normal accountancy

methods with due provision being made for depreciation.

Indemnity Period means the period beginning with the

occurrence of the Damage and ending not later than the

number of months specifi ed in the Schedule thereafter

during which the results of the Marine Business are

affected in consequence of the Damage.

Payroll means the remuneration (including but not

limited to payroll tax, bonuses, holiday pay, workers

compensation insurance premiums and/or accident

compensation levies, superannuation and pension fund

contributions and the like) of all Your employees.

Piers and Pontoons has the same meaning for the

purposes of this section as defi ned in Section 6.

Rate of Gross Profit means the proportion that the Gross

Profi t bears to the Turnover during the fi nancial year

immediately before the date of the Damage.

Rate of Payroll means the proportion that the Payroll

bears to the Turnover during the fi nancial year

immediately before the date of the Damage.

Shortage in Turnover means the amount by which the

Turnover during a period, in consequence of the Damage,

falls short of the part of the Standard Turnover for that

period.

Standard Turnover means the Turnover during the period

in the twelve (12) months immediately before the date of


37

5. Floating Piers and Pontoons

The following provisions apply to calculation of claims

for fl oating Piers and Pontoons:

A claim under item 5 on page 36 shall be supported by

revenue fi gures for berth fees and fuel sales and other

income generated directly related to the berthing of

vessels or use of the Damaged Pier or Pontoon for the

corresponding period for the previous year.

a. Concurrent repairs

Where insured repairs to fl oating Piers and Pontoons

and uninsured repairs, servicing or maintenance

are conducted concurrently and extend the period

of business interruption beyond that required for

rectifi cation of other insured Damage, any loss of

Gross Profi t arising solely from Pier and Pontoon work,

excluding applicable Excess, shall be apportioned

equally between You and Us for the common period that

both insured and uninsured repairs to Damaged fl oating

Piers and Pontoons is conducted.

If the time necessary to effect Damage repairs is extended

by any other non-insured repairs or maintenance work

the Period of Indemnity is limited to the time that would

have been taken to effect Damage repairs had they been

effected without the non-insured repairs.

b. Separate repair period

Where due to a single insured Event, the Piers and

Pontoons are prevented from earning income during

repairs for up to three separate occasions, these separate

occasions may be aggregated, provided that the repairs

are completed within 12 months of the expiry of the

period of Insurance of this Policy

Limit of IndemnityOur liability under this Section will not exceed the

relevant Declared Value stated against each item or

option in the Schedule nor the Limit of Indemnity for any

one Event at any one Situation.

Additional benefi tsOur liability for these additional benefi ts will be limited to:

a. the amount shown in the Schedule for the relevant

additional benefi t; or

b. if no amount is shown then as provided below;

subject to the extent that the Limit of Indemnity for this

Section is not otherwise exhausted.

1. Computer

This Section extends to include loss (not otherwise

recoverable) resulting from interruption of, or

interference with, the Marine Business occasioned by

Damage to computer installations, including ancillary

equipment and data processing media utilised by You

anywhere in Australia.

ii. during the remaining part of the Indemnity Period;

the sum produced by applying the Rate of Payroll

to the Shortage in Turnover during that part less

any saving during that part, through reduction in

the amount of Payroll paid in consequence of the

Damage, but not exceeding the amount produced by

applying the percentage of the Rate of Payroll to the

Shortage in Turnover during the remaining part of

the Indemnity Period, increased by such amount as is

deducted for savings under the terms of Clause 2.a.i.;

b. Increase in cost of working

in respect of increase in cost of working; so much of

the additional expenditure described in Clause 1.b. as

exceeds the amount payable under that clause, but

not more than the additional amount that would have

been payable in respect of reduction in Turnover under

the provisions of Clauses 2.a.i. and 2.a.ii. had such

expenditure not been incurred.

3. Loss of rent receivable

the loss of rent receivable and amounts due for services

rendered and/or recoverable expenses. We will pay the

amount by which rent and amounts for services rendered

and/or recoverable expenses received or receivable

during the Indemnity Period falls short of the amount

that it may be reasonably estimated would have been

received during that period had the Damage not occurred

(including the additional expenditure necessarily and

reasonably incurred for the sole purpose of avoiding

or diminishing the loss of rent and loss of amounts for

services rendered and/or recoverable expenses) less any

sum saved during that period in respect of the charges or

expenses payable out of rent that cease or are reduced in

consequence of the Damage.

4. Adjustment for trends

When calculating the Rate of Gross Profi t, Annual

Turnover, Standard Turnover and Rate of Payroll in this

Section (including Specifi c condition 9. New business)

such adjustments will be made:

a. as may be necessary, to provide for the trend of the

Marine Business; and

b. for variations in, or special, or other, circumstances

affecting the Marine Business;

either before or after the Damage or which would have

affected the Marine Business had the Damage not

occurred, so that the adjusted fi gures represent as nearly

as may be reasonably practicable the results that but

for the Damage would have been obtained during the

relevant period after the Damage.


38

1. Additional increase in cost of working

the increase in cost of working (not otherwise recoverable

under Your Policy) necessarily and reasonably incurred

during the Indemnity Period in consequence of the Damage

for the purpose of avoiding or diminishing reduction in

Turnover and/or resuming and/or maintaining normal

Marine Business operations and/or services.

2. Accounts receivable

all sums due to You from customers that You are unable

to collect because of Damage to records of accounts

receivable. We will also pay collection expenses in excess

of normal collection costs made necessary because of

the Damage as well as interest charges at the rate Your

bank applies on any loan to offset impaired collections

pending repayment of such sums made uncollectible by

such Damage. If You cannot accurately establish the total

amount of accounts receivable outstanding as at the date

of loss, the amount will be computed as follows:

a. determine the amount of all outstanding accounts

receivable at the end of the same fi scal month in the

year immediately preceding the year in which the loss

occurs;

b. calculate the percentage of increase or decrease in

the average monthly total of accounts receivable for

the year immediately preceding the month in which

the loss occurs, as compared with such average for

the same months of the preceding year;

c. the amount determined under Clause a. above,

increased or decreased by the percentage calculated

under Clause b. above, will be the agreed total

amount of accounts receivable as of the last day of

the fi scal month in which said loss occurs;

d. the amount determined under Clause c. above, will be

increased or decreased in conformity with the normal

fl uctuation in the amount of accounts receivable

during the fi scal month involved, consideration

being given to the experience of the Marine Business

since the last day of the last fi scal month for which

statements have been rendered less:

i. the amounts of such accounts evidenced by

records not suffering Damage or otherwise

established or collected by You;

ii. an amount to allow for probable bad debts that

would normally have been uncollectible by You;

iii. all unearned interest and service charges; and

iv. settlement or term discounts normally allowed.

3. Claims preparation expenses

the reasonable professional fees as may be payable by

You, and such other reasonable expenses necessarily

incurred (with Our prior consent) by You and not

otherwise recoverable, for preparation of a claim

2. Additional premises

If You acquire or use during the Period of Insurance

any other Premises within the Territorial limit for the

purpose of the Marine Business We will treat any Damage

relating to those Premises as covered by this Section of

Your Policy provided that We are advised of the use or

acquisition of the Premises within 30 days and You agree

to pay the additional premium We require.

3. Fines, Damages and Penalties

Under this Section, We will also pay for:

a. fi nes or Damages for breach of contract resulting

from non-completion or late completion of orders.

We will not pay for exemplary, punitive or aggravated

Damages; or

b. the discharge of contract purchases, cancellation

notices, fi nes or Damages for breach of contracts for

the purchase of goods or services You cannot use

during the Indemnity Period, less the value of these

goods to You or the amount received for their sale;

but only where these payments are due to Damage to the

Property Insured which resulted in an admissible claim

under Policy Sections Two – Material Damage (Building,

Contents and Stock) or Seven – Crime.

Under this Additional benefi t, the maximum We will pay

is 5% of the relevant Limit of Indemnity within any one


4. Government incentives

The loss of Gross Profi t is extended to include the loss

of any Government incentives, subsidies or market

development allowances You are entitled to in relation to

the Marine Business.

This only applies if the loss of these benefi ts was caused

by Damage to the Property Insured that resulted in an

admissible claim under Policy Sections Two or Seven

within any one Period of Insurance.

5. Multi tenanted or retail commercial complex

Loss to Your Marine Business if it is situated in any

commercial complex of which the Premises forms part

or in which the Premises are contained, that prevents or

hinders the use of or access to the Premises which results

in cessation or diminution of trade, including cessation

or diminution of trade due to temporary falling away of

potential custom.

Optional benefi tsWhen the applicable Optional benefi t is shown as

operative in the Schedule and consequent upon a claim

being admitted under this Section, We will also pay You

up to the amount shown in the Schedule for:


39

Provided that the amount arrived at under the provisions

of Clause 2.a.i. will not exceed the amount that is

deducted under Clause 2.a.i. for savings effected during

the increased number of weeks.

4. Departmental clause

If Your Marine Business is conducted in departments

and the trading results of each department can be

determined independently then Clauses 1.a. and 1.b.

of the Basis of Settlement will apply separately to each

department affected by the Damage.

5. Salvage sale clause

If following Damage giving rise to a claim under this

Section You hold a salvage sale during the Indemnity

Period, Clause 1.a. of the Basis of Settlement is amended

to read as follows:


in respect of reduction in Turnover; the sum calculated

by applying the Rate of Gross Profi t to the Shortage in

Turnover (less the Turnover for the period of the salvage

sale) from which shall be deducted the Gross Profi t

actually earned during the period of the salvage sale.

and Clause 2.a. of the Basis of Settlement is amended to

read as follows:

b. Reduction in Turnover

In respect of reduction in Turnover:

i. during the part of the Indemnity Period beginning

with the occurrence of the Damage and ending not

later than the number of weeks specifi ed in the

Schedule after that; the sum produced by applying

the Rate of Payroll to the Shortage in Turnover

during that part of the Indemnity Period (less the

Turnover for the period of the salvage sale) less any

saving during that part of the Indemnity Period,

through reduction in the amount of Payroll paid in

consequence of the Damage;

ii. during the remaining part of the Indemnity Period;

the sum produced by applying the Rate of Payroll

to the Shortage in Turnover during that part (less

the Turnover for the period of the salvage sale) less

any saving during that part, through reduction in

the amount of Payroll paid in consequence of the

Damage, but not exceeding the amount produced by

applying the percentage of the Rate of Payroll to the

Shortage in Turnover during the remaining part of

the Indemnity Period, increased by such amount as is

deducted for savings under the terms of Clause 2.a.i.;

iii. the amount of insured Payroll recovered from the

Turnover during the period of the salvage sale shall

be deducted from the amount otherwise payable

under the Basis of Settlement Clauses 2.a.i. and 2.a.ii.

accepted by Us as valid under this Section and Section

Two – Material Damage (Building, Contents and Stock)

of the Policy.

4. Suppliers’ and/or customers’ premises

Loss resulting from interruption of or interference with

the Marine Business in consequence of Damage to

property at the Premises anywhere in Australia of Your

direct suppliers or customers which shall be deemed to

be loss resulting from Damage to property used by You at

the Situation.

The maximum We will pay under this Optional benefi t,

in respect of any one loss or series of losses arising out

of the one Event or occurrence is 20% of the Limit of

Indemnity shown in the Schedule.


1. Adjustment of premium

In the event of the Gross Profi t earned (or a

proportionately increased multiple of it when the

Indemnity Period exceeds fi fty-two (52) weeks) during

the accounting period of twelve (12) months most nearly

concurrent with any Period of Insurance, as certifi ed by

Your auditors), being less than the Declared Values in

this Section, a pro-rata return of premium not exceeding

50% of the premium paid for the Period of Insurance will

be made in respect of the difference. If any Damage has

occurred giving rise to Indemnity under this Section, the

return will be made in respect only of so much of that

difference as is not due to that Event.

2. Underinsurance

If the Declared Values for Gross Profi t at the

commencement of each Period of Insurance is less than

the sum produced by applying the Rate of Gross Profi t

to 85% of the Annual Turnover, (or its proportionately

increased multiple of it, where the Indemnity Period

exceeds fi fty-two (52) weeks) the amount payable under

this Section will be proportionately reduced.

If the Declared Value for Payroll at the commencement of

each Period of Insurance is less than the amount produced

by applying the Rate of Payroll to 85% of the Annual

Turnover (or its proportionately increased multiple, where

the Indemnity Period exceeds fi fty-two (52) weeks) the

amount payable will be proportionately reduced.

This condition will not apply if the amount of the claim

does not exceed 5% of the Declared Values for this Section.

3. Consolidated period (Payroll)

At Your option, the number of weeks referred to in Clause

2.a.i. of the Basis of Settlement may be increased to the

number of weeks specifi ed in the Schedule under the

heading “Consolidated Period”.


40

Section Four – Watercraft Repairer’s LiabilityThe coverWhere this Section is shown as insured on the Schedule,





of compensatory Damages) by reason of Your legal

liability for:

a. Damage to any Watercraft which is in Your physical

or legal control for the purpose of repair and/or

maintenance and includes shifting and moving

within the limits of the port at which the work is

being carried out, and Trial Trips;

b. Damage to any other Watercraft while You are

undertaking their repair, service and/or maintenance,

but excluding Watercraft at sea that are not on a

Trial Trip;

c. Damage to contents or other property on or

discharged from any of the Watercraft referred to in

Clauses a. or b. above;

d. Damage to machinery or equipment of any

Watercraft, whilst such machinery or equipment

is removed from such Watercraft and is in Your

physical or legal control for the purpose of repair,

service and/or maintenance, including whilst in

transit between such Watercraft and Your Premises

or whilst in transit to or from specialist repairers’ or

manufacturers’ premises;

e. Your Products installed by You during repair, service

and/or maintenance of any Watercraft;

f. removal of wreck.

g. Damage to third party property, occurring in

the course of or arising from Your Watercraft

Repair Activity,

Provided such liability results from Your negligence or,

that of Your servants, agents or subcontractors which

occurs within the Territorial Limits during the Period of

Insurance up to the Limit of Indemnity.

Defi nitions



or space.

6. Alterations and forfeiture

We will not pay any claim under this Section if the

Marine Business is wound up or carried on by a

liquidator, administrator or a receiver or is permanently

discontinued.

7. Turnover elsewhere after Damage

If, after Damage at the Situation, during the Indemnity

Period You or others on Your behalf operate the Marine

Business from a situation other than as specifi ed in the

Schedule then the turnover from that situation will be

taken in to account when calculating the Turnover.

8. Books of account

Any particulars or details contained in Your books of

account or other business books or documents that may

be required by Us for investigating or verifying any claim

made under this Section may be produced and certifi ed

by Your auditors and their certifi cate will be prima facie

evidence of the particulars and details to which the

certifi cate relates.

The words and expressions used in this Section will have

the meanings usually attached to them in Your books

and accounts unless otherwise defi ned in Your Policy.

9. New business

In the event of Damage occurring at the Situation before

the completion of the fi rst year of trading of the Marine

Business, the terms “Rate of Gross Profi t”, “Annual

Turnover”, “Standard Turnover” and “Rate of Payroll”

shall have the following meanings wherever they appear

in this Section:

“Rate of Gross Profi t” means the proportion that the

Gross Profi t bears to the Turnover during the period

between the date of commencement of the Marine

Business and the date of the Damage.

“Annual Turnover” means the actual Turnover

achieved during the fi rst year of operations, from the

commencement of the Marine Business to the date of the

Damage, converted to a 12 month equivalent fi gure.

“Standard Turnover” means the Turnover achieved

between the date of commencement of the Marine

Business and the date of the Damage, converted to the

selected Indemnity Period.

“Rate of Payroll” means the proportion that the Payroll

bears to the Turnover during the period between the date

of commencement of the Marine Business and the date

of the Damage.


41


Occurrence.

Personal Injury means death, bodily injury, sickness,

disease, disability, shock, fright, mental anguish and

mental injury.



smoke, vapour, soot, fumes, acids, alkalis, toxic chemicals

toxic liquids, toxic gasses or waste materials. Waste

materials includes materials to be recycled reconditioned

or reclaimed or other irritants and contaminants.

Pollution means the discharge, dispersal, release or

escape of smoke, vapours, soot, fumes, acids, alkalis, toxic

chemicals, toxic liquids, toxic gasses, waste materials

(includes materials to be recycled reconditioned or

reclaimed) or other irritants, contaminants or Pollutants

into or upon any property, land, the atmosphere or any

water course or body of water (including ground water).

Service, Repair and Maintenance Terms and Conditions

means any written agreement defi ning or limiting Your

legal responsibility for Watercraft in Your care custody

and control and for the provision of Your Watercraft

Repair Activity which has been declared and approved by

Us prior to commencement of work.

Territorial limits means:

a. that geographical area anywhere within Australia or

its external territories;

b. those geographical areas elsewhere in the world but

only in respect of:

i. travelling executives or Non-manual Sales

Representatives who are normally resident in

Australia;

ii. Your Products exported to anywhere in the world

except the United States of America or Canada or

any country, territory or protectorate to which the

laws of the United States of America or Canada

apply.

Trial Trip means a trial trip from the port at which the

repairs or maintenance were carried out which are

within 150 kilometres from such port.

Watercraft Repair Activity means only the activity of

repair, service and/or maintenance of Watercraft. It does

not mean the building and rebuilding of Watercraft or

any other part of Your business that is not the activity of

repairing, servicing and/or maintaining Watercraft.




compensation for injury to Workers or employees.








employment, by You.

Gross Earnings means the total charges (collected or

uncollected) made by You as Watercraft Repairer during

the Period of Insurance. No deduction shall be made from

the gross earnings in respect of any sub-contracted work.




downward blast.

Incidental Contracts means:

any written rental agreement or lease of real property

which does not impose on You:

a. an obligation to insure such property;

b. any liability regardless of fault; or

c. any written contract with any public authority for

the supply of water, gas or electricity but only to

the extent of indemnifying any such authority in

respect of liability arising out of Your Watercraft

repair business and excepting contracts for the

performance of work or provision of services by You.




including for all legal liability directly or indirectly arising

out of or in any way related to Your Products, Our total

aggregate liability during any one Period of Insurance

will not exceed the Limit of Indemnity. The Limit of

Indemnity is inclusive of and not additional to any

applicable Excess.




Non-manual Sales Representatives means Your agents,

servants or employees who are involved solely in the

marketing of Your Products, but does not mean any such

person who undertakes the manufacture, maintenance

or repair of Your Products, whether or not such activities

are incidental to the marketing of Your Products.








42

ExcessYou must bear the Excess shown in the Schedule for

this Section for each Occurrence, including for any

supplementary payments made.

Additional benefi t

Rectifi cation of faulty workmanship consequent upon Damage

Where You are required to perform or re-perform, in

whole or part, work on any property which:





causing the Damage;









of Insurance.

Specifi c exclusion 26.Faulty Workmanship will not









i. You are entitled to cover under this Section; or

ii. You would be entitled to cover under this Section

if such claim or suit were to be sustained;

b. all legal costs ordered against You in any such suit or


amount accruing after the entry of judgment against


court such part of the judgment as does not exceed

the Limit of Indemnity;



covered by this Section (other than medical expenses

prohibited by law);



b. any subsidiary companies of the Insured referred to

in Clause a. above existing at the commencement

date of the Period of Insurance as shown in the

Schedule, whose place of incorporation is within

Australia or its external territories;





purchase;


by you, or by a company referred to in Clause b.


Provided that:



iv. the newly-acquired or incorporated company



v. the newly-acquired or incorporated company


territories;





ii. any shareholder of a company referred to in

Clauses a., b. or c. above, but only while acting

within the scope of their capacity as shareholders

of such company;

e. any principal in respect of such principal’s vicarious

liability for the acts or omissions of the Insured

shown in the Schedule or a company referred to in

Clauses b. or c. above, in the performance of work for

such principal, subject always to the extent of cover

and Limit of Indemnity provided in the Policy.




constructed, extracted, produced, processed, assembled,

erected, installed, repaired, serviced, treated, sold,

supplied (including services) or distributed by You,

(including any container other than a Vehicle) or used to

package or contain Your Product(s). Excluding second–

hand or used parts.


43

e. the actual, alleged or threatened discharge,



abandoned or thrown away by others;

f. radioactive material or asbestos.

2. Detention

This Section is extended to cover all amounts which You

become legally liable to pay as compensation (excluding


additional Damages resulting from the multiplication of

compensatory Damages) for detention of any Watercraft

as a consequence of Damage to such Watercraft resulting

in a claim which is recoverable under a., b. or d. of The

cover outlined in this Section. However, this extension

shall not cover any legal liability for detention assumed

under contract or otherwise that extends the liability

imposed upon You by law in the absence of such contract.

3. Personal Injury





of compensatory Damages) for death or Personal Injury

fi rst occurring during the Period of Insurance as a result

of an Occurrence in the course of and arising from Your

Watercraft Repair Activity.

4. Travelling Workmen





compensatory Damages) when You or Your employees

are on board a Watercraft at sea or in any port for the

purpose of carrying out Your Watercraft Repair Activity,

notwithstanding that You or Your employees may be

signed on as members of the Watercraft’s crew.

Specifi c exclusionsYour Policy does not cover any liability, costs or expenses:



connected with:






2. Asbestos

General exclusion 6. Asbestos applies.

Provided that:

d. if a payment exceeding the Limit of Indemnity has or is

required to be made to dispose of a claim, Our liability

to make supplementary payments will be limited to

the proportion of the supplementary payments as

the Limit of Indemnity bears to the amount paid or

required to be paid to dispose of the claim. Where the

application of this Clause means that You are liable

to repay supplementary payments to Us, We may set

off the amount that You oWe Us against any other

entitlements You have under the Policy;







Optional benefi tsThe following Optional benefi ts are only operative when


1. Pollution liability

Notwithstanding Specifi c exclusion 16 – Pollution, We

will indemnify You against legal liability for Personal

Injury or Property Damage incurred to third parties for

Pollution up to a limit of $1,000,000 each and every loss

or series of losses caused by an event which is identifi ed

as occurring at an instantaneous moment in time

during the Period of Insurance, is accidental and neither

expected nor intended by You, and became known to You

within 72 hours after its commencing and is reported to

Us within 72 hours thereafter.

Irrespective of the above, We will not provide cover for or

in relation to:

a. fi nes, penalties, punitive Damages, exemplary

Damage, treble Damages or any other Damages

resulting from the multiplication of compensatory

Damages;

b. any site or location used in whole or in part for the

handling, processing, treatment, storage, disposal or

dumping of any waste materials or substances;

c. the cost of evaluating and/or monitoring and/

or controlling seepage and/or Pollution and/or

contaminating substances;

d. the cost of testing, monitoring, containment,

treatment, detoxifying, removing, neutralising

and/or nullifying and/or cleaning up seepage and/

or Pollution and/or contaminating substances on

property at any time owned and/or leased and/or

rented by You and/or under Your control whether or

not any of the foregoing are or should be performed

by You or by others;


44


a. for Personal Injury to any Worker if You are required

by law to insure or otherwise fund, whether through

self insurance, statutory fund or other statutory

scheme, all or part of any common law liability

(whether limited or not) for such Personal Injury;

b. for Personal Injury to any workman or other person

employed in any capacity whatsoever by Your agents,

contractors or sub contractors; or

c. for Personal Injury to Your agents, contractors and

sub contractors;

d. imposed by:



agreement or determination or any contract

of employment or workplace agreement where

such liability would not have been imposed in

the absence of such industrial award, agreement

or determination;

iii. any law relating to Employment Practices;

iv. any statutory or common law liability in respect

of Personal Injury of any Worker or other person

employed in any capacity whatsoever by You, Your

agents, contractors or sub contractors when such

Personal injury arises out of or in the course of the

employment of such Worker or other persons.

9. Loss or Damage notifi cation

in respect of any loss or Damage covered by this Section

unless discovered and reported to Us in writing within

one (1) year of delivery to the owners or within one

(1) year after the work is completed by You, whichever

may fi rst occur.

10. Loss of use









11. Misdescription


connected with misrepresentation or misdescription

of property for sale.

3. Building and rebuilding


connected with building or rebuilding of Watercraft.





This Specifi c exclusion 4 will not apply when such

assault and/or battery is committed for the purpose of

preventing Personal Injury or Damage or eliminating

danger to a person.


assumed under any contract or agreement other than

one which has been specifi cally declared to and agreed

by Us.

This Specifi c exclusion 5 does not apply to:





c. written contracts declared to and approved by Us

in writing;




connected with, the publication or utterance of any

libellous, slanderous, defamatory or disparaging material:

a. made prior to the commencement of the Period

of Insurance;





behalf.

7. Defect in design



by You and/or manufacture of Your Products or any error

or omission in respect of such design, specifi cation or

formula and/or manufacture of Your Products.



was not provided or given for remuneration (such as a fee

or commission) whether mixed with remuneration for



45

17. Product defect

for Damage to Your Products if such Damage directly or

indirectly arises out of or is in any way connected with:



intended; or


18. Product recall


connected with, the removal, withdrawal, recall,








connected with the provision by You or any one on Your

behalf of professional advice or any error or omission




a. property owned by, used by or leased or rented to You;

or

b. property in Your physical or legal control other than

property referred to under the heading “The cover” a.,

c. and d. above.

21. Smoking

for any Personal Injury directly or indirectly arising out of,

or in any way connected with, the inhalation or ingestion

of or exposure to:




22. Strike, lockout, labour disturbance

arising from any strike, lockout, labour disturbance, riot,

civil commotion or act of any person taking part in any

such occurrence, or from any act of any person acting

maliciously;

23. Truck, automobile, or other mechanically propelled vehicle

arising from the existence, maintenance, or use of:

a. any licensed truck, automobile, or other mechanically

propelled Vehicle;

12. Oil or petrol tank Watercraft or Watercraft carrying explosives or other fl ammable liquids

in respect of or arising in connection with an oil or petrol

tank Watercraft or Watercraft previously engaged in

carrying explosives or infl ammable liquids or gasses

or arising in connection with work:

a. on or near any fuel tank or pipeline of an oil burning

Watercraft;

b. on or near any bunker space of any coal burning

Watercraft.

13. Participation

for Personal Injury to any person or Damage to the

property of any person directly or indirectly arising out of

or in any way connected with, the actual participation of

such person in any sport, exercise or activity such as but

not limited to racing, competitive water sports and water

skiing.

The term Participation as used in this Specifi c exclusion

13 includes the participation, training or practice for,


14. Penalty clauses

for payments under penalty clauses, detention,

demurrage, loss of time, loss of freight, loss of charter,

loss of market or any other consequential loss

whatsoever, in respect of property referred to in this

Section.


for fi nes or penalties imposed by law or liquidated

Damages or punitive, exemplary and/or aggravated

Damages and any additional Damages resulting from the

multiplication of compensatory Damages.

16. Pollution


connected with:










abandoned or thrown away by others.


46


The premium for this Section has been calculated on the

estimate of Gross Earnings given by You. You must keep

accurate records containing all relevant particulars of

Your Gross Earnings and at any reasonable time allow Us

to inspect such records.

Following the expiry of the Period of Insurance You must

supply Us with such records as We may reasonably



The difference between the premium based on the

actual fi gures at the end of the Period of Insurance and

the premium calculated at inception will be paid by

or allowed to You, as the case may be. In any event a

minimum retained premium equivalent to 75% of the

full premium based on the initial estimates or as may

otherwise be agreed, will be retained by Us.

We agree to waive any adjustment of premium where the

difference between the actual and the estimate given to

Us by You is less than 10%.


You must:







7. Reconstruction or conversion

It is a condition of this Section that before work

commences involving the reconstruction or conversion

of any Watercraft which entails a change in dimension,

tonnage or type, You must advise Us and the coverage

under this Section in respect of such Watercraft shall

depend on Us agreeing to continue such coverage.

8. Underinsurance

We require You to insure the maximum potential risk.

If You do not, You are underinsured and We may pay

You less in the event of a claim calculated in accordance

with either the Policy wording or the Marine Insurance

Act 1909 which takes into account the degree of

underinsurance.

b. any unlicensed truck, automobile, or other

mechanically propelled Vehicle outside Your

Premises or Situation.

24. Watercraft in storage

in respect of or arising in connection with any Watercraft

accepted by You solely to be stored.

25. Watercraft owned or operated by you

being collision liability, towers liability or liability arising

out of the navigation of any Watercraft owned or operated

by You or any affi liated or subsidiary entity or party.

26. Faulty Workmanship

incurred in performing, re-performing, completing,

re-completing, correcting or improving any work or

service undertaken or provided by You or on

Your behalf.


1. Assignment

No transfer of interest under this Section or in any moneys

which may be or may become payable under this Section

is to be binding on or recognised by Us unless a dated

notice of such transfer of interest is signed by You, and by

the party to whom the interest is being transferred to is

provided to Us before the payment of any claim or return

of premium being made under this Section. Nothing in

this condition is to be considered as an agreement by Us

to a sale or transfer to a new management.

2. Contracts entered into

Before conducting Your Watercraft Repair Activity for any

Watercraft that is wholly or partly used for commercial

purposes You must enter into a written contract consisting

of or incorporating Your Service, Repair and Maintenance

Terms and Conditions, or to the extent permitted by law

We will not pay a claim under this Section.

3. Fidelity Guarantee Exclusion Clause

In no case shall this Section indemnify You for any event

occasioned by or happening through the fraudulent

or dishonest acts, fraudulent misappropriation,

embezzlement and forgery by You or Your employee(s)

acting alone or in collusion with any other person(s).

4. Non-Contribution Clause

This Section does not cover any 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 Policy be

insured by any other existing policy or policies. However

this Policy will cover You in respect of any excess beyond

the amount which would have been payable under such

other policy had this Policy not been effected.


47

Limit of Indemnity is inclusive of and not additional to

any applicable Excess.




Non-manual Sales Representatives means Your agents,

servants or employees who are involved solely in the

marketing of Your Products, but does not mean any such

person who undertakes the manufacture, maintenance

or repair of Your Products, whether or not such activities

are incidental to the marketing of Your Products.








Occurrence.

Personal Injury means:

a. death, bodily injury, sickness, disease, disability,

shock, fright, mental anguish and mental injury; or

b. i. false arrest, wrongful detention or imprisonment,

malicious prosecution and humiliation;

ii. wrongful entry or eviction;

iii. assault or battery;

iv. libel, slander, defamation of character or invasion

of right of privacy.



smoke, vapour, soot, fumes, acids, alkalis, chemicals

or waste. Waste includes material to be recycled,

reconditioned or reclaimed.

Property Damage means:

a. physical Damage to, physical loss of or physical

destruction of tangible property including any

resultant loss of use; or

b. loss of use of tangible property that has not been

physically Damaged, physically lost or physically

destroyed, provided such loss of use is caused by

physical Damage to, physical loss of or physical

destruction of other tangible property.

Territorial limits means:

a. that geographical area anywhere within Australia

or its external territories;

Section Five – Public and Products LiabilityThe coverWhere this Section is shown as insured on the Schedule,





of compensatory Damages) for Personal Injury and/or

Property Damage fi rst occurring within the Territorial

limits during the Period of Insurance as a result of an

Occurrence in connection with Your Marine Business,

up to the Limit of Indemnity.

Defi nitions



or space.








employment, by You.




downward blast.

Incidental Contracts means:

a. any written rental agreement or lease of real property

which does not impose on You:

i. an obligation to insure such property; or

ii. any liability regardless of fault;

b. any written contract with any public authority for

the supply of water, gas or electricity but only to the

extent of indemnifying any such authority for liability

arising out of Your Marine Business and excepting

contracts for the performance of work or provision of

services by You.




provided that, for all legal liability directly or indirectly

arising out of or in any way related to Your Products,

Our total aggregate liability during any one Period of

Insurance will not exceed the Limit of Indemnity. The


48





ii. any shareholder of a company referred to in

Clauses a., b. or c. above, but only while acting

within the scope of their capacity as shareholders

of such company;

e. any principal in respect of the liability of such

principal arising out of the performance by You or

a company referred to in Clauses b. or c. above, of

any contract or agreement for the performance of

work for such principal. However, only to the extent

required by such contract or agreement, and limited

always to the extent of cover and Limit of Indemnity

provided in Your Policy;

f. any offi ce bearer or member of a social and/

or sporting club, canteen, welfare or childcare

organisation or fi rst aid, fi re or ambulance service

formed with the consent of any of the parties in

Clauses a., b., c. or d. above and which is incidental to

Your Marine Business.




constructed, grown, extracted, produced, processed,

assembled, erected, installed, repaired, serviced, treated,

sold, supplied (including services) or distributed by You,

including any container (other than a Vehicle).

ExcessYou must bear the Excess that applies to this Section

for each Occurrence, including any supplementary

payments made.








i. You are entitled to cover under Your Policy; or

ii. You would be entitled to cover under Your Policy if

such claim or suit were to be sustained;

b. all legal costs ordered against You in any such suit or


amount accruing after the entry of judgement against


court such part of the judgement as does not exceed

the Limit of Indemnity;

b. those geographical areas elsewhere in the world but

only in respect of:

i. travelling executives or Non-manual Sales

Representatives who are normally resident in

Australia;

ii. Your Products exported to anywhere in the world

except the United States of America or Canada or

any country, territory or protectorate to which the

laws of the United States of America or Canada

apply.

Tool of Trade means a Vehicle which has any tool or plant

forming part of or attached to or used in connection with

it while such tool or plant is in operation for the purpose

of the Marine Business, but does not include:

a. Vehicles while in transit to or from or within any

place of work; or

b. Vehicles used for transport or haulage.




compensation for injury to Workers or employees.



b. any subsidiary companies of Clause a. above,

existing at the commencement date of the Period

of Insurance as shown in the Schedule, whose place

of incorporation is within Australia or its external

territories;





purchase;


by You or by a company referred to in Clause b.


Provided that:



iv. the newly acquired or incorporated company



v. the newly acquired or incorporated company


territories;


49



causing the Damage;









of Insurance.

Specifi c exclusion 9. Faulty workmanship will not operate

in respect of this Additional benefi t.

Specifi c exclusionsYour Policy does not cover any liability:



connected with:






2. Asbestos

as described in General exclusion 6. Asbestos.





This specifi c exclusion 3. will not apply when such

assault and/or battery is committed for the purpose

of preventing Personal Injury or Property Damage or

eliminating danger to a person.


assumed under any contract or agreement.






c. those written contracts shown in the Schedule;




covered by Your Policy (other than medical expenses

prohibited by law);

Provided that:

d. if a payment exceeding the Limit of Indemnity has or is

required to be made to dispose of a claim, Our liability

to make supplementary payments will be limited to

the proportion of the supplementary payments as

the Limit of Indemnity bears to the amount paid or

required to be paid to dispose of the claim. Where the

application of this Clause means that You are liable

to repay supplementary payments to Us, We may set

off the amount that You oWe Us against any other

entitlements You have under Your Policy;







Additional benefi ts

1. Incidental work on Watercraft and components

Notwithstanding Exclusion 21. Watercraft, cover under

this Section is extended to include the fi tting, servicing,

maintenance or repair of:

a. lighting, electrical wiring and air conditioning units;

and

b. engine components,

of Watercraft less than 20 metres in length where

the revenue You derive from these fi tting, servicing,

maintenance and repair activities constitutes less

than 20% of Your gross revenue as declared at the

commencement of the Period of Insurance or $200,000


However this Additional benefi t does not apply to the

fi tting, servicing, maintenance or repair of navigation

and safety equipment.

The cover provided by this Additional benefi t does not

aggregate with any cover provided by Section One -

Marina Liability or Section Four – Watercraft Repairer’s

Liability. You can only claim under one of these

Sections (where applicable) for liability arising from

the same Event.

2. Rectifi cation of Faulty Workmanship Consequent Upon Damage

Where You are required to perform or re-perform in

whole or part work on any property which:




50

9. Faulty workmanship

for the cost or expenses incurred in performing, re-

performing, completing, re-completing, correcting or

improving any work or service undertaken or provided by

You or on Your behalf.

10. Loss of use









This Specifi c exclusion 10.b. does not apply to the loss of

use of other tangible property resulting from the sudden

and accidental physical Damage to or destruction of Your

Products after such products have been put to use by any

person or organisation other than You.

11. More specifi c Policy Section

for which Indemnity is provided (whether You have

selected that Section or not), or would have been

provided but for any applicable Excess, under a more

specifi c Policy Section shown as such in the Schedule.

12. Participation

for Personal Injury to any person or Property Damage

to the property of any person directly or indirectly

arising out of or in any way connected with the actual

participation of such person in any sport, exercise or

activity such as but not limited to rally driving, motor

racing, any Vehicle activity on a race track, competitive

motor sports, aerobics, athletics, football, aquatic, aerial

or equestrian activity.

The term ‘participation’ as used in this exclusion

includes the participation, training or practice of,


This Specifi c exclusion 12. does not apply to Personal

Injury or Property Damage caused by any fault or defect

in equipment provided by You at any Situation owned

and/or occupied by You for the purpose of Your Marine

Business.


for fi nes or penalties imposed by law or liquidated,



compensatory Damages.



connected with the publication or utterance of any

libellous, slanderous, defamatory or disparaging

material:

a. made prior to the commencement of the Period of

Insurance;





behalf.

6. Defect in design



by You or any error or omission in respect of such design,

specifi cation or formula.



was not provided for remuneration (such as a fee or

commission) whether mixed with remuneration for



a. for Personal Injury to any Worker, if You are required

by law to insure or otherwise fund, whether through

self insurance, statutory fund or other statutory

scheme, all or part of any common law liability

(whether limited or not) for such Personal Injury; or

b. imposed by:



agreement or determination or any contract of

employment or workplace agreement where such

liability would not have been imposed in the

absence of such industrial award, agreement or

determination;

iii. any law relating to Employment Practices.

8. Erections, alterations and additions


connected with the construction, erection, alteration,

demolition of and/or addition to Buildings by You or on

Your behalf.

This Specifi c exclusion 8. will not apply to any alteration

of or addition to Buildings owned and/or occupied by You

where the cost of such alterations or additions does not

exceed $500,000 unless such other amount is specifi ed in

the Schedule.


51

other than where Your Marine Business involves the

provision of professional medical services or advice

(which includes dental and veterinary services and

advice) and the provision or sale of medication or

other medical equipment, prosthetics, aids or devices

of any description;

b. Personal Injury or Property Damage where such

professional advice or service is not given or provided

for any remuneration, such as a fee or commission.



a. property owned by or leased or rented to You;

b. property in Your physical or legal control.

Provided that this Specifi c exclusion 18. does not apply to

liability for Damage to:

a. Buildings including landlords’ fi xtures and fi ttings

used by You for Your Marine Business (including

permanent fi xtures) which are leased or rented to

You and which You are not required to insure for

Property Damage;

b. Buildings, including their Contents, not owned, leased

or rented to You but temporarily occupied by You

for the purpose of carrying out work in connection

with Your Marine Business, but We will not pay for

Damage to that part of the property on which You are

or have been working which arises out of such work;

c. Vehicles in Your physical or legal control not

belonging to You or used by You or on Your behalf,

where such Damage occurs while the Vehicles are in

a car park which is not owned or operated for reward

by You as part of Your Marine Business;

d. property (other than Vehicles) belonging to visitors or

Your employees; or

e. property other than listed in (a) to (d) above in Your

physical or legal control (except for that part of any

property that is undergoing any process or is being

worked upon where Damage arises out of such

process or work) for which You have not assumed any

responsibility to obtain insurance.

Our liability under Clauses c., d., and e. is limited to:

f. $500,000 for Watercraft or Parts and Accessories

thereof; or

g. $25,000 for property other than Watercraft or Parts

and Accessories thereof;

any one Occurrence, unless a higher amount is shown in

the Schedule.

14. Pollution


connected with:



This Specifi c exclusion 14.a. will not apply to liability

for Personal Injury or Property Damage where such

discharge, dispersal, release or escape is caused by

a sudden, identifi able, unintended and unexpected

happening which takes place in its entirety at a specifi c

time and place;

b. the testing, monitoring, cleaning up, removal,







abandoned or thrown away by others; or

d. the actual, alleged or threatened discharge, dispersal,

release or escape of Pollutants in the United States

of America or Canada or in any country to which the

laws of the United States of America or Canada apply.

15. Product defect

for Property Damage to Your Products if such Damage

directly or indirectly arises out of or is in any way

connected with:



intended; or


16. Product recall


connected with the removal, withdrawal, recall,








connected with the provision by You, or any one on Your

behalf, of professional advice or any error or omission



a. the rendering of or failure to render medical advice

by Medical Persons employed by You to provide fi rst

aid and other medical services on Your Premises,


52

oxygen cutting or heating or other related heat producing

or spark-producing operations.

23. Marina Liability or Watercraft Repairer’s Liability or Vessels

which could be covered by, or would have been covered

but for the effect of any Specifi c exclusion within,

Section One – Marina Liability, Section Four – Watercraft

Repairer’s Liability or Section Six – Vessels, Piers and

Pontoons.


1. Discharge of liabilities

We may at any time pay to You or on Your behalf for all

claims against You:

a. the amount of the Limit of Indemnity (after deduction

of any sum or sums already paid by Us); or

b. any lesser sum for which the claim or claims may be

settled.

Upon such payment We will relinquish conduct or

control of the defence of all claims against You and be

under no further liability under Your Policy in connection

with such claim or claims.

Provided that We will pay for costs, charges and expenses

recoverable from You in respect of the period prior to the

date of such payment (whether or not this is pursuant

to an order made subsequently) or incurred by Us or by

You with Our written consent prior to the date of such

payment.


The premium for this Section has been calculated on the

estimates given by You. You must keep accurate records

containing all relevant particulars of Your estimates and

at any reasonable time allow Us to inspect such records.

Following the expiry of the Period of Insurance, You

must supply Us with such records as We may reasonably


Period of Insurance. If the actual fi gures are more than

the estimate, You must pay the additional premium

for the difference. If the actual fi gures are less, We will

refund You the difference, unless a minimum premium

was charged.


You must:







We will not pay for any item or event which could be

covered by, or would have been covered but for the effect

of any Specifi c exclusion within, Section One – Marina

Liability, Section Seven – Crime or Section Nine –

Commercial Motor.

19. Smoking

for any Personal Injury directly or indirectly arising out of

or in any way connected with the inhalation or ingestion

of or exposure to:




20. Vehicles


connected with the ownership, possession, operation,

use or legal control by You or on Your behalf of any

Vehicle:

a. which is registered or is required under any

legislation to be registered.

This Specifi c exclusion 20.a. will not apply to liability for

Personal Injury or Property Damage:

i. arising entirely within the confi nes of Your

Situation(s);

ii. arising beyond the limits of any carriageway

or thoroughfare or caused by the loading or

unloading of any Vehicle or trailer;

iii. arising from the use of any Vehicle as a Tool of

Trade;

b. where such liability is required by virtue of any

legislation to be insured under a policy of bodily

injury insurance;

21. Watercraft


connected with:

a. the ownership, possession, operation or use by You or

on Your behalf; or


structure, machinery or control;

of any Watercraft, the hull of which exceeds 20 metres

in length.

22. Welding and allied processes


connected with You or other persons working on Your

behalf not having strictly complied with the Australian

Standard 1674.1-1997 “Safety in welding and allied

processes – Fire precautions”, as set out in the Standard

or as amended, when involved in welding, thermal or


53

c. Your working Vessels used exclusively in the course of

Your Marine Business, including any Vessels used for

hire or reward; and

d. any Vessels owned by You or, if You are a proprietary

limited company, Your shareholders or directors.

In survey means that the Vessel has been surveyed and

passed by the relevant statutory regulatory authority

without any outstanding conditions.

Masts, Spars, Rigging and Sails means masts, booms,

fi ttings, spinnaker poles, standing and running rigging

and sails.

Motor means stern-drive units, inboard and outboard

engines described in the Schedule, and includes the

propeller, shaft, gearbox, skeg, jet unit, wiring harness,

instruments, portable fuel tank, battery and control

cables and generator.

Net Income means Your total earnings from Your working

Vessel refl ecting gross revenue less average Running

Costs, depreciation, interest, taxes and other expenses

during the previous 12 months for the period during

which the gross revenue accrued.

Personal Effects means personal items belonging to You

or Your Family Members, limited to clothing, shoes,

waterproof gear and linen.

Personal Use means the incidental and temporary use of

Insured Vessels owned by You and used by You or Your

authorised employees for recreational purposes.

Personal Watercraft means a small, lightweight watercraft

designed to be operated by a person sitting, standing

or kneeling on it, with motorcycle-like handlebars and

squeeze throttle, usually jet-propelled, and including

brands such as Jet Ski, Wave Runner and Sea-Doo.

Piers and Pontoons means fl oating piers, quays, jetties,

pontoons, docks not forming part of any Building

which is used at Your Situation in the provision of Your

Business activities for the purpose of berthing or mooring

of Watercraft.

Running Costs means direct costs related to keeping Your

working Vessel operating, based on the average direct

costs during the 12 months prior to the loss or Damage to

the Vessel.

Salvage Charges means reasonable charges and expenses

incurred by You in preventing or minimising any loss or

damage covered by Part A of this Section, including costs

associated with removal of the wreck.

Storm means adverse or unusual weather and sea

conditions which have been caused by winds measuring

Force 10 or more on the Beaufort wind scale.

Tools means tools kept permanently on the Insured

Vessel for emergency and breakdown purposes.

Section Six – Vessels, Piers and PontoonsThe CoverWhere this Section is shown as insured in the Schedule,

We will pay You in accordance with the Basis of

Settlement set out below in:

1. Part A – Loss or Damage to the Insured Vessel and loss

or Damage to Piers and Pontoons caused by any of the

specifi ed perils; and

2. Part B – Legal Liability to Third Parties.

Defi nitions

Accidental Loss or Damage means physical loss and/

or Damage (including theft) which results from an

unforeseen and unintended Event.

Boat Tender means a Vessel’s tender or dinghy (and its

motor), provided it is used to service the Vessel and is not

more than 4 metres in length or a Personal Watercraft.

Diving Equipment means recognised and commercially

manufactured sports diving equipment, including

regulators, tanks and buoyancy compensation devices

owned by You.

Equipment and Accessories means safety equipment that

meets statutory or other legal requirements, and any

other equipment, including boat canopies, Fishing Gear,

Water Ski Equipment, Diving Equipment and Tools, but

excluding Personal Effects and anything not owned by You.

Fishing Gear means rods, reels, tackle and other similar

equipment used for the purpose of recreational/sport

fi shing owned by You.

Geographic Limits means all waters within Australia and

those waters off the coast of Australia, as restricted or

noted on the Schedule.

Hull means the hull, deck, cabin, deck fi xtures and fi ttings

on or below the deck.

Injured or Injury means bodily injury caused solely and

directly by accidental, violent, external and visible

means, including exposure to the elements caused by

these means.

Insured Vessel means:

a. Your stock of Vessels held for the purpose of display,

demonstration and sale in the course of Your Marine

Business;

b. third party Vessels in Your physical and legal control

for the purpose of repair, service, maintenance,

display, demonstration and sale in the course of Your

Marine Business;


54

v. explosion;

vi. earthquake or volcanic eruption;

vii. accidents in loading, discharging or moving stores,

gear, equipment, machinery or fuel at the Marina;

viii. malicious acts;

provided such loss or Damage has not resulted from the

lack of due diligence by You or Your managers;

Basis of Settlement applicable to Part AThe Basis of Settlement will be:

1. for Fishing Gear, Water Ski Equipment, Diving

Equipment and Tools:

repair or replacement, but We will not pay more than

$500 any one Event.

2. for Personal Effects:

repair or replacement, but We will not pay more than

$200 for each item and $1,000 any one Event.

3. for Motors more than fi ve (5) years old which can not

be repaired:

reimbursement for the cost of new mechanical and

electrical components for the Motor, but We will not

pay more than the Market Value of the Motor.

4. for Vessels, at Our option, We will:

a. repair or replace Your Vessel; or

b. pay You the reasonable cost of repairing or

replacing Your Vessel; or

c. if Your Vessel is a Total Loss, pay You the Market

Value or the Limit of Indemnity shown in the

Schedule whichever is the lesser, unless the Vessel

is part or all of Your Stock of Watercraft in which

case We will pay You the Stock Card value.

5. for Piers and Pontoons at Our option, We will:

a. repair or replace Your Piers and Pontoons; or

b. pay You the reasonable cost of repairing or

replacing Your Piers and Pontoon; or

c. pay You the Market Value or the Limit of

Indemnity shown in the Schedule, whichever

is the lesser, if Your Piers and Pontoons are a

Total Loss.

Limit of Indemnity applicable to Part AWe will not pay more than the Limit of Indemnity shown

in the Schedule for any one Event.

ExcessYou must pay Us the Excess shown in the Schedule.

Total Loss means the loss of a Vessel or damage to a

Vessel which We consider to be uneconomical to repair,

or which requires repairs costing more than the Market

Value of the Vessel or the Limit of Indemnity.

Vessel means a boat or Personal Watercraft, including its:

a. Hull(s);

b. Motor(s);

c. Masts, Spars, Rigging and Sails;

d. trailer (including its power winch);

e. Equipment and Accessories;

f. Boat Tender.

Water Ski Equipment means commercially manufactured

water skis and equipment.

Your Business means:

i. a Marina Business as defi ned in Section One – Marina

Liability;

ii. the display, demonstration and sale of Vessels, the

sale of Parts and Accessories and/or the delivery of

Vessels by Sea;

iii. the inspection of Vessels, reporting on the condition

of Vessels, the provision of advice or sea worthiness,

and the recommendation of/for repairs and/or Parts

required to/for Vessels;

iv. the service, repair and maintenance of Vessels and

machinery, or Parts thereof;

v. the issuance of documentation to facilitate the

registration of Vessels or their transfer of title;

vi. the arranging of fi nance and/or insurance for Vessels

that You sell;

vii. the ownership and/or occupation of the Situation(s);

other activities incidental to Your ownership and/or

operation of Your Business, as declared to and accepted

by Us.

Part A – Loss or DamageThe Cover applicable to Part AWe will pay You in accordance with the Basis of

Settlement applicable to this Part A if the Insured Vessel

suffers Accidental Loss or Damage, or the fl oating Piers

and Pontoons suffer loss or Damage caused by any of the

following perils during the Period of Insurance:

i. Storm;

ii. fl ood;

iii. fi re or lightning;

iv. collision with or impact by any Vessel, vehicle, railway

locomotive, aircraft or anything dropped therefrom;


55

7. Strikes, terrorist, political motive and malicious acts

Cover under this Section is extended to include Damage

caused to the Insured Vessel by strikers, locked out

workers or persons taking part in labour disturbances,

riots or civil commotions or, any terrorist or any person

acting from a political motive.

Optional Extension applicable to Part A

1. Working Vessels loss of hire/earnings

This optional extension is available only for Your working

Vessels used exclusively in the course of Your Marine

Business, including any Vessels used for hire or reward.

We will indemnify You for Your loss of Net Income where

Your working Vessel is partially or totally prevented from

earning income as a result of loss or Damage caused

by an insured Event under Part A occurring during the

Period of Insurance other than:

a. loss, Damage or expense caused by acts of war, civil war,

revolution, rebellion, insurrection, civil strife or hostile

acts by or against a belligerent power, governmental

acts, requisition or seizure by legal process;

b. loss, Damage or expense caused by strikers, locked

out workers or persons taking part in labour

disturbances, riots, civil commotions, or any terrorist

or any person acting from a political motive;

but always excluding loss of income arising from:

c. delay;

d. insolvency, or Your or Your clients’ inability to pay;

e. the Specifi c exclusions applicable to Part A and

f. any fi ne or penalty.

Unless otherwise specifi ed in the Schedule:

• The maximum period of indemnity is 30 consecutive

calendar days after the application of the Excess

specifi ed below.

• The maximum amounts We will pay will be:

i. up to $1,000 per day.

ii. up to $30,000 in the aggregate any one loss or

series of losses caused by an insured Event.

• The Excess applicable shall be the fi rst 30 days

that the working Vessel is prevented from earning

Net Income as a result of an insured Event. This

Excess shall not apply in the event of a Total Loss or

constructive total loss of the working Vessel.

The limits expressed in i. and ii above or as may be

otherwise agreed and shown in the Schedule will be

reduced in the event of a claim. However, the limits will

be automatically reinstated in the event of a partial

Additional benefi ts applicable to Part A

1. Trailered Vessels

The cover under this Section is extended to include cover

for the Insured Vessel while in transit by road for the

sole purpose of delivery following sale or other purposes

directly associated with Your Business including whilst

on Personal Use.

If the Insured Vessel’s length overall is 10 metres

or more, the transit by road (including loading or

unloading) shall be conducted by a professional Vessel

haulier otherwise, no claim will be payable for such loss

or damage in transit.

2. Reasonable Salvage Charges

In addition to the Limit of Indemnity, We will also pay

Salvage Charges.

3. Pollution hazard

If the Insured Vessel is deliberately Damaged by Federal,

State or Local authorities exercising their rights under

current legislation in order to prevent or minimise an

environmental hazard /pollution resulting from an

insured Event and provided this has not resulted from

You or Your employees lack of due diligence.

4. Grounding

If the Insured Vessel is grounded We will pay the cost of

inspecting the Hull to see if it is Damaged provided that:

• the grounding was accidental and not deliberately

caused by You or with Your knowledge; or

• the Insured Vessel was deliberately grounded to avoid

or minimise further Damage to the Insured Vessel

following an accident.

5. Piers and Pontoons Cleaning costs

The cover under this Section is extended to include the

reasonable costs and expenses incurred in cleaning Piers

and Pontoons which have been affected by the accidental

spillage of, or contamination or pollution by oil and fuel

arising from any one accident or a series of accidents

arising from the one Event, without application of the

Excess, provided that such a spillage, contamination or

pollution has not resulted from the lack of due diligence

by You or Your managers and up to a limit of $15,000.

6. War

The cover under this Section is extended to include cover

for the Insured Vessel if Your Insured Vessel whilst afl oat

suffers loss or Damage due to any acts of war, civil war,

revolution, rebellion, insurrection, civil strife or hostile

acts by or against a belligerent power.


56

Specifi c exclusions applicable to Part AWe will not pay for:

1. Accidental Loss or Damage to cameras, portable

radios, mobile phones, tools of trade, moorings,

provisions and fuel;

2. theft by a Bailee or theft by deception;

3. Accidental Loss or Damage to an outboard Motor

when secured to the Insured Vessel or the Boat

Tender in a manner other than that specifi ed or

recommended by the manufacturer of the Motor, the

Vessel or the Boat Tender;

4. Accidental Loss or Damage to Fishing Gear, Diving

Equipment, or Water Ski Equipment, unless:

a. they were on or being used on the Insured Vessel

at the time of Accidental Loss or Damage; or

b. they were stolen and there is physical evidence of

violent and forcible entry into the Insured Vessel

and/or violent or forcible removal of them.

5. Accidental Loss or Damage to sails caused by the

wind or water;

6. Accidental Loss or Damage caused by wear and tear,

deterioration, vermin, corrosion, electrolysis, mould,

inherent vice and/or lack of maintenance;

7. malicious Damage caused by You, Your employees or

agents, or Family Members of You, Your employees or

Your agents;

8. mechanical parts that are not fi tted or used in

accordance with the manufacturer’s specifi cations;

9. Accidental Loss or Damage to a Motor caused by or

resulting from seizure and/or overheating unless

caused by an accident which is otherwise covered

under this Section of the Policy;

10. consequential loss of any kind, including loss

resulting from delay or lack of performance, loss of

contract or depreciation in value of any un Damaged

property other than that specifi ed in the Optional

Extension - Working Vessels loss of hire/earnings on

page 55, where this extension is taken and noted on

Your Policy Schedule;

11. loss or Damage to tyres or wheel rims of Your trailer

caused by braking, punctures, cuts or bursts;

12. the cost of repairing or replacing any part of the

Insured Vessel or the Piers and Pontoons due to fault

or error in design or construction or latent defect;

13. the costs of remedying a fault or error in design,

materials, manufacture or construction or any cost

or expense incurred by reason of betterment or

alteration in design or construction or latent defect;

loss, provided You pay Us any appropriate additional

premium plus government charges (where applicable).

The limits in i and ii will not be reinstated in the event of

Total Loss or constructive Total Loss.

If You sell the working Vessel, this optional benefi t is

automatically cancelled but We will return a pro-rata net

monthly premium, provided there are no claims on this

Policy prior to cancellation.

Loss of Hire Claims Provisions

• Notifi cation – All possible claims are to be reported

to Us as soon as possible and We are to be notifi ed

before any repairs are carried out.

• Claim Calculation – The gross revenue for a claim

under this Policy shall be supported by booking

schedules for the corresponding period for the

previous year. If no evidence can be provided to

substantiate that the working Vessel would have

earned any income during the period of indemnity,

the daily indemnity shall be limited to the Running

Costs of the working Vessel for that period.

• Recoveries – Where a recovery for loss of Net Income

is obtained from a third party and You have been

indemnifi ed under the Policy for loss of Net Income,

We are entitled to this recovery to the extent of the

amount recovered.

• Promptness of Repairs – All repairs shall be arranged

with due diligence and promptness. We have the

right to request You to incur any expenses that would

reduce Our liability under this Policy provided We

shall pay for these expenses.

• Concurrent Repairs – Where Damage repairs are

carried out at the same time as other repairs which

are immediately necessary for the safety of the

working Vessel or to allow the working Vessel to earn

Net Income and which are not claimable under this

Policy, the Net Income lost during such time as is

common to both types of work in excess of the Excess

shall be divided equally between You and Us. If the

time necessary to effect Damage repairs is extended

by any other repairs which are immediately necessary

for the safety of the working Vessel or to allow the

working Vessel to earn Net Income, the period of

indemnity is limited to the time that would have been

taken to effect Damage repairs caused by the insured

event had they been effected without the said other

repairs.

• Separate Repair Period – Where due to a single

insured Event, the working Vessel is prevented from

earning Net Income during repairs for up to three

separate occasions, these separate occasions may be

aggregated, provided that the repairs are completed

within 12 months of the expiry of this Policy.


57

Limit of Indemnity applicable to Part BWe will not pay more than the Limit of Indemnity shown

in the Schedule for any one Event.

ExcessYou must pay Us the Excess shown in the Schedule.

Additional benefi t applicable to Part B

1. Legal expenses

We will also pay for all costs that We incur, or that You

incur with Our permission, in defending any claim for

compensation against You for which You are entitled

to cover under this Section or would be entitled to if the

claim for compensation were to be sustained.

Optional benefi ts applicable to Part BThe following Optional benefi t is operative only when


1. Pollution Liability

Specifi c exclusion 7. will not operate in respect of this

optional benefi t.

When specifi ed in the Schedule, this section is extended

to indemnify You or any person permitted by You to

control Your Insured Vessel against Legal Liability for:

• Damage to property caused by accidental discharge,

emission, spillage or leakage upon or into waters or

land of oil, petroleum products, effl uent or sewage

from Your Vessel;

• any costs associated with the cleaning up of an

accident site following an insured Event provided

that You are Legally Liable for the clean up and the

discharge, emission, spillage or leakage, subject to

a limit of $500,000 each and every loss or series of

losses caused by the one insured Event;

provided the discharge, emission, spillage or leakage

did not arise from Your wilful negligence or wilful

misconduct or with Your knowledge.

This optional benefi t excludes:

1. death, bodily injury or illness;

2. contractual or assumed liability;

3. any loss of use or consequential loss;

4. breach of any Federal, State or Local legislation

regulating or controlling the discharge, spillage,

emission or leakage of oil or any other substance

into navigable waters or elsewhere or removal

of or liability for discharge, spillage, emission or

leakage.

14. the cost of repairing or replacing any part of the

Insured Vessel due to mechanical and/or electrical

breakdown or failure;

15. the cost of improving or altering the Insured Vessel or

the Piers and Pontoons;

16. Accidental Loss or Damage during transport by road,

rail, air or sea unless the Insured Vessel is designed

to be towed on a trailer and all laws and regulations

have been complied with;

17. Accidental Loss or Damage arising as a result of the

mooring used by the Insured Vessel not being:

a. of a suitable design and weighting for the Insured

Vessel;

b. appropriately sited; or

c. regularly maintained on at least an annual basis

and kept in good order.

Specifi c conditions applicable to Part A

1. Underinsurance

In the event of Damage to an Insured Vessel, We will be

liable for no greater proportion of the Damage than the

Declared Value bears to 85% of:

a. the Market Value of the Property Insured; or

b. the Stock Card value if the Vessel is part of Your Stock

of Watercraft;

on the day of commencement of the Period of Insurance.

Underinsurance will not apply if the amount of the

Damage is less than 5% of the Declared Value.

The Underinsurance clause does not apply to each of the

Additional benefi ts, Optional benefi ts or to customers’

Vessels in Your physical and legal control for the purpose

of sale, repair, service and/or maintenance.

Part B – Legal LiabilityThe Cover applicable to Part BWe will pay all amounts which You become legally

liable to pay as compensation for death or Injury and/

or Accidental Loss or Damage to property including

any attempted or actual raising, removal or destruction

of the wreck of the Insured Vessel or the fl oating Piers

and Pontoons, or any neglect or failure to raise, remove

or destroy the Insured Vessel or the fl oating Piers and

Pontoons fi rst happening during the Period of Insurance

and arising out of the use of the Insured Vessel or the

fl oating Piers and Pontoons up to the Limit of Indemnity

shown in the Schedule.


58

8. for any fi nes or penalties and/or aggravated, punitive

or exemplary Damages;

9. for any relief or recovery other than monetary

amounts;

10. arising from a contract that imposes on You a liability

which You would not otherwise have;

11. for the accidental death or bodily Injury of a person

who is employed or contracted by You or any person

who could or should have been covered by or

pursuant to a statutory compensation scheme;

12. that is in any part covered in any way by any:

a. statutory or compulsory insurance policy or

statutory or compulsory insurance; or

b. compensation scheme or fund, even if the

amount recoverable is nil.

Optional benefi ts applicable to Part A and Part BThe following Optional benefi ts are operative only when


1. Personal Use

Specifi c exclusion applicable to Part A and Part B clause

11 – Personal Use will not apply.

2. Social Yacht Racing

In respect of races only, Specifi c exclusion applicable

to Part A and Part B clause 5 – Racing will not apply,

provided that:

a. the Insured Vessel is a yacht and forms part of Your

Stock of Watercraft;

b. the race course does not exceed 15 nautical miles in

length measured by the most direct route; and

c. spinnakers and/or extras are not being used.

3. Yacht Racing

In respect of races only, Specifi c exclusion applicable

to Part A and Part B clause 5 – Racing will not apply,

provided that:

a. the Insured Vessel is a yacht and forms part of Your

Stock of Watercraft; and

b. the race course does not exceed 50 nautical miles in

length measured by the most direct route.

2. Water Skiing

The Part B cover is extended to include cover for water

skiing or aquaplaning activities conducted with the

Insured Vessel for:

• accidental death of, or Injury to, a water skier being

towed by the Insured Vessel;

• accidental death of, or Injury to, any person caused

by a water skier who is being towed by the Insured

Vessel;

• property Damage caused by a water skier who is

being towed by the Insured Vessel.

However, this Optional benefi t will not operate unless:

• all equipment used for the water skiing or

aquaplaning activities was commercially

manufactured and in good condition and repair;

• in addition to the person being in control of the

Insured Vessel, an observer was also aboard the

Insured Vessel;

• the observer was competently able to and was

observing those engaged in the water skiing or

aquaplaning activity; and

• all legal requirements were being adhered to at the

time of the accident.

Specifi c exclusions applicable to Part BWe will not cover any legal liability:

1. incurred by boat builders, repairers, yacht clubs or

other marina operators unless they are in charge of

or in control of the Insured Vessel in an emergency

for the purpose of minimising any loss or Damage

covered by Part A – Loss or Damage;

2. arising from the Motors, Masts, Spars, Rigging, Sails,

Equipment and Accessories where they are not on

and/or used on the Insured Vessel, Boat Tender or

trailer;

3. incurred while the Insured Vessel is attached to or

accidentally detached from a motor vehicle;

4. for Accidental Loss or Damage occurring to property

owned by You or in Your physical or legal control or

owned by any person using the Insured Vessel or in

their physical or legal control;

5. for disease that is transmitted by You or anyone using

the Insured Vessel;

6. arising from the towing of any persons or objects in

the air;

7. any claim arising directly or indirectly from pollution

or contamination by any substance unless the

Schedule includes optional benefi t Pollution Liability

for Section 6 of the Policy;


59

d. a person who has been refused boat or motor vehicle

insurance within the last fi ve (5) years, unless We

have given Our consent in writing.

This exclusion does not apply if You can prove that:

e. You did not know or had no reason to suspect that

the person in control of the Insured Vessel was such a

person; or

f. as a result of an unforeseen emergency, it was

reasonable for such a person to assume control of the

Insured Vessel.

5. Racing

occurring whilst the Insured Vessel is being used for

racing, speed tests or time trials.

6. Over-powered Vessel

arising as a result of the Insured Vessel being fi tted with

a Motor more powerful than that recommended by the

manufacturer of its Hull.

7. Vessel Condition

arising as a result of the unseaworthiness, lack of repair

or maintenance of the Insured Vessel.

8. Water Skiing

arising as a result of the use of the Insured Vessel or any

other Vessel for water skiing. This exclusion does not

apply in relation to Optional benefi t applicable to Part B

2. Waterskiing

9. Safeguard

arising as a result of the lack of reasonable care,

protection and/or security of the Insured Vessel or other

property.

10. Speed

arising as a result of the Insured Vessel or any Vessel

covered by the Policy exceeding the maximum speed

recommended by the manufacturer of the Hull of the

Vessel or the Maximum Speed shown on Your Schedule.

11. Personal Use


connected with Personal Use of the Insured Vessel.

12. Gelcoat Degradation

caused to the Insured Vessel by the failure of or

degradation to the gelcoat, barrier coating or hull

sheathing.

13. Piers and Pontoons

arising:

a. directly or indirectly arising out of the incorrect siting

of Piers and Pontoons;

4. Time Trials

In respect of any time trial or speed test only, Specifi c

exclusion applicable to Part A and Part B 5.Racing will not

apply, provided that:

a. the time trial or speed test is being conducted under

the control or regulation of the Australian Power Boat

Association or one of its affi liated entities;

b. the Insured Vessel does not exceed 30 knots; and

c. the Insured Vessel forms part of Your Stock of

Watercraft.

Specifi c exclusions applicable to Part A and Part BWe will not pay for any loss, Damage, Injury or liability:

1. Geographic Limits

occurring outside of the Geographic Limits or

subsequent to the Insured Vessel being outside the

Geographic Limits. However, if the Insured Vessel is

outside of the Geographic Limits:

a. as a result of circumstances beyond the reasonable

control of the person in charge or control of the

Insured Vessel; or

b. to reasonably respond to an unforseen emergency;

We will continue to provide cover, provided that as soon

as possible:

c. the Insured Vessel returns to within the Geographic

Limits (except in the case of Total Loss); and

d. You notify Us, without delay, of the circumstances

taking it beyond the Geographic Limits.

2. Customs and Immigration

subsequent to the Insured Vessel clearing Australian

Customs and Immigration for the purpose of leaving

Australian waters. This exclusion will not apply once

the Insured Vessel clears Australian Customs and

Immigration after its return to Australia.

3. Vessels on loan

if You lend an Insured Vessel for any purpose other than

for demonstration and sale of the Insured Vessel.

4. Persons in Control

occurring whilst the Insured Vessel is under the

control of:

a. an unlicensed person when a licence is necessary;

b. a person without adequate experience to reasonably

control the Insured Vessel;

c. a person under the infl uence of alcohol or drugs; or


60

d. evidence to support the amount of any Accidental

Loss or Damage, including written and itemised

quotations for the repair of any Damage; and

e. photographs or other documentation that may

substantiate Your claim.

3. Modifi cations to an Insured Vessel

You must notify Us as soon as possible if You modify

an Insured Vessel from the manufacturer’s original

specifi cations. When We receive this information, We

may:

a. alter the terms and conditions of the Policy;

b. charge You an additional premium;

c. cancel the Policy; or

d. decide not to offer to renew the Policy.

4. Survey warranty

For any Insured Vessel used for hire or reward, it is hereby

declared and agreed that:

a. no liability shall attach to Us when the Insured Vessel

at the time of Accidental Loss or Damage does not

comply with all appropriate government authority

regulations at the home port;

b. the Insured Vessel is at all times In Survey and

operating within the specifi ed limits as permitted

by the appropriate government authority.

b. as a result of the lack of repair or maintenance of the

Piers and Pontoons;

c. where Piers and Pontoons or similar structures, form

part of any Building;

d. as result of subsidence, landslip, erosion or heave;

e. through the actions of birds, vermin, moths, termites,

or other insects, mildew, mould, disease, wet or dry

rot, change of colour;

f. from wear and tear, corrosion, rust or oxidation,

fading, chipping, scratching or marring, gradual

deterioration or the development of fl aws, or any


g. from error or omission in design, plan or specifi cation

or failure of design;

h. through remedying a fault in design, materials,

manufacture or construction or any cost or expense

incurred by reason of betterment or alteration in

design or construction;

i. from faulty materials or faulty workmanship;

j. through inherent vice or latent defect;

k. through change in texture or fi nish;

l. in respect of any Piers and Pontoons in the course of

construction, erection, dismantling or re-erection

other than in the course of inspection, maintenance,

repair or removal to another working position in the

Marina or where the Piers and Pontoons are located.

Specifi c conditions applicable to Part A and Part B

1. Prevention of further Damage or loss

You must take all reasonable precautions to prevent any

further loss or Damage to the Insured Vessel and other

property. In particular, following the submersion of the

Insured Vessel, You should:

a. fl ush out, oil and dry the Motor; and

b. dry all other electrical equipment and components.

We will cover the reasonable cost of such work if We

accept Your claim.

2. Records You Must Keep

You must keep accurate business records during the

period of insurance which You must make available to Us

should We so request, including:

a. documentation of purchases and sales of Vessels;

b. all documentation relevant to the ownership or

purchase of the Vessels and other property;

c. any service records relevant to the Vessels and other

property;


61

v. Money in Your personal custody or the custody

of persons that You have authorised, while

contained in Your /their private residences, but

Our liability will cease at Bank closing time on the

next Bank business day or forty-eight (48) hours,

whichever is the later, following the day on which

the Money was taken into custody;

vi. Approved Safes or Strongrooms at the Premises

caused by unauthorised persons attempting to

gain entry to the Approved Safe or Strongroom.

b. Outside Business Hours

Money at the Premises outside Business Hours not

in a securely locked, Approved Safe or Strongroom.

3. Glass

Breakage of Glass at the Situation.

Basis of SettlementThe Basis of Settlement will be as follows:

1. Theft

In respect of theft:

a. on Contents (other than those specifi ed below):

Reinstatement or Replacement unless specifi ed

otherwise in the Schedule;

b. on Total loss of part or all of Your Stock of Watercraft,

customers’ Watercraft: the Market Value of the

Watercraft but not exceeding the Stock Card value;

c. on partial loss of Watercraft including customers’

Watercraft: the cost of repairs as assessed by an

assessor appointed by Us;

d. on Parts and Accessories and other Stock in Trade

(other than Watercraft and general merchandise):

Reinstatement or Replacement;

e. on Parts and Accessories from, or within, Stock of

Watercraft: Indemnity value;

f. on Customers’ Goods other than Watercraft:

Reinstatement or Replacement;

g. on general merchandise, (including stock of cigarettes,

alcohol, DVDs and videos): Indemnity value;

h. on computer systems, records, Documents, deeds,

wills, agreements, manuscripts, specifi cations,

plans, drawings, designs, business books and other

records of every description: the cost of reinstating,

replacing, reproducing or restoring them, including

the information contained in them or on them,

but excluding the value to You of that information;

or, if this is not required, the Replacement cost of

materials as blank stationery at the time and place

of the Damage;

Section Seven – CrimeThe coverWhere this Section is shown as insured on the Schedule,


Settlement for a Defi ned Event which occurs during the


Defi nitions

Bank means a bank, building society, credit union or

similar fi nancial institution.

Breakage means a fracture extending through the entire

thickness of the Glass.

Business Hours means the period You or persons

authorised by You are at the Situation for the purpose of

conducting the Marine Business.

Glass means fi xed internal or external glass, fi xed and

hanging mirrors, washbasins, lavatory pans and cisterns

which You own or are legally responsible for. For the

purpose of this defi nition, glass includes laminates,

perspex and plastics.

Strongroom means a burglar resistant room that has been

designed to resist fi re and concerted attack by hand-

held or power-operated tools and has been specifi cally

designed for the storage of Money and valuables.

Defi ned Events

1. Theft

Damage of the Property Insured at the Situation as a

result of:

a. theft or attempted theft; or

b. violence or threat of violence or intimidation either to

You, Your employees or customers.

2. Money

Damage to, or attempted theft of:

a. Combined

i. Money in transit to or from the Premises while in

Your personal custody or the custody of persons

that You have authorised;

ii. Money while contained in the night safe of any

Bank at which You normally transact business

provided that Our liability for Money in night

safes will cease at Bank closing time on the next

business day following deposit;

iii. Money at the Premises during Business Hours;

iv. Money at the Premises outside Business Hours in

a securely locked Approved Safe or securely locked

Strongroom;


62

Limit of IndemnityWe will not pay more than the relevant Limit of

Indemnity shown against each item in the Schedule

other than as provided in the Additional benefi ts.


Additional benefi tsFollowing a claim being admitted under this Section,

We will pay;

a. the reasonable and necessary costs that are incurred

for Additional benefi ts 1 to 9 and 15 and 16; and

b. up to the amount specifi ed for Additional benefi ts

10 to 14.

Any cover under Additional benefi ts 7, 8, 12, 14, 15 and

16 will be paid in addition to the Limit of Indemnity. All

other Additional benefi ts will only be paid to the extent

that the Limit of Indemnity is not otherwise exhausted.

1. Damage to the Building at the Situation

For Damage to the Building and/or its fi xtures and fi ttings

caused by visible, forcible and violent entry to or exit from

the Building: up to a maximum of $5,000 for any one Event,

unless another amount is specifi ed in the Schedule.

2. Temporary protection

For temporary protection of Property Insured pending

repair or replacement following Damage by a Defi ned

Event: up to a maximum of $5,000 for any one Event.

3. Directors’, Partners’ and Employees’ Personal Property

For the repair or Replacement of Directors’, Partners’ and

Employees’ Personal Property that is stolen or Damaged

by a Defi ned Event, but only if such property is not

otherwise insured: up to a maximum of $2,000 for any

one person and $5,000 for any one Event.

4. Employees’ tools of trade

For the repair or Replacement of employees’ tools of

trade that are stolen or Damaged during theft following

visible, violent and forcible entry covered by this Section,

but only if such property is not otherwise insured.

Subject to the Limit of Indemnity not being otherwise

exhausted: the maximum We will pay is $2,000 for

any one employee and $5,000 for any one Event unless

another amount is specifi ed in the Schedule.

i. on Directors’, Partners’ and Employees’ Personal

Property: Reinstatement or Replacement;

j. on employees’ tools of trade: Reinstatement or

Replacement;

k. if the Basis of Settlement is Reinstatement, We will

not pay more than the Indemnity value until You

incur the cost of Reinstatement.

2. Money

In respect of Money:

a. not described more specifi cally in Clauses b. or c.

below; Indemnity;

b. in the form of traveller’s cheques, discount house

vouchers or unsold lottery tickets; Your cost of

purchase;

c. in the form of a security with a subscription,

conversion or redemption privilege:

i. if the security

• has been entered into on an “arms length”

basis; and

• has a specifi ed expiry date which is within

twelve (12) months of the theft or Damage;

and

• the expiry value of the security is contractually

set;

the value at expiration; or

ii. if the security is other than as described in Clause

c. i. above - Indemnity.

d. for Approved Safes and Strongrooms:

i. where Damaged beyond repair: Replacement;

ii. where Damage can be repaired: Reinstatement.

We will also pay for the demolition or destruction

of sound property necessary for the purpose of

Reinstatement or Replacement resulting from theft or

attempted theft of Money.

3. Glass

a. on Glass (other than illuminated signs): the cost

of replacing the Glass with Glass of the necessary

specifi cation, quality and manufacture to comply

with the requirements of any statutory authority,

including the cost of installation; or

b. on illuminated signs: Reinstatement or Replacement

or the Indemnity value if not repaired or replaced.

We will not pay more than the benefi t provided in the

Additional benefi ts below or the Limit of Indemnity

shown against illuminated signs in the Schedule.


63

Watercraft unless such other amount is specifi ed in

the Schedule;

c. this Additional benefi t will not apply to any Property

Insured which has been removed for a period greater

than ninety (90) days without Our prior written

consent.

9. Death following assault

For accidental death within twelve (12) months as a

direct result of injury to You, Your directors, partners

or any person employed by You resulting from their

protecting or attempting to protect Property Insured from

theft at the Situation, We will pay up to a maximum of

$10,000 during the Period of Insurance. This benefi t shall

be payable to the estate of the deceased person.

10. Tenanted Premises

Damage to the Building where You are a tenant and for

which You are legally liable to pay under the terms of

Your lease, provided the Damage occurs from theft or

attempted theft of Property Insured up to a maximum of

$1,000 for any one Event.

11. Contents in the Open

For securely fi xed Contents in the open or within an open-

sided Building, stolen or Damaged during theft, up to a

limit of $2,000 or the Sub limit shown in the Schedule. To

this extent, Specifi c exclusion 1.a.xi. will not apply.

12. Seasonal increases in the Limit of Indemnity

Increase in the Limit of Indemnity for Stock in Trade and

Money Defi ned Event 2.a.i, ii, iii and iv, by 30% during the

following periods:

a. from sixty (60) days before Christmas to twenty (20)

days following, all days inclusive; and

b. from thirty (30) days before Easter Sunday to twenty

(20) days following, all days inclusive;

unless stated otherwise in the Schedule.

13. Theft by employees

For theft by, or the fraud or dishonesty of Your employees,

We will pay up to a maximum of $2,500 during the Period

of Insurance. To this extent, Specifi c exclusions 1.b.ii and

2.c.i. applicable to this Section are modifi ed.

This Additional benefi t will not accumulate with any

cover under Section Ten – Employee Dishonesty.

14. Bank and public holidays

On days that are gazetted Bank or public holidays, where:

a. Defi ned Event 2.a. Combined is covered, We will

increase the Limit of Indemnity for this Defi ned Event

by the lesser of an additional 100% or $50,000;

and

5. Rewriting or replacing records

For rewriting or replacing necessary written records or

printed Documents, computer system business records,

plans or designs, records that were stolen or Damaged

during theft following visible, violent and forcible entry

at the Situation up to a maximum of $20,000 for any

one Event. We will not pay for the cost of obtaining any

information to be written or recorded.

6. Documents

For Documents anywhere within the Territorial limits

(other than at the Situation) that were stolen or Damaged

during theft following visible, violent and forcible entry to

the premises or Vehicles: up to a limit of $10,000 or 5% of

the Contents’ Limit of Indemnity, whichever is the lesser.

7. Replacement keys and locks

For:

a. replacing locks and/or keys and/or combinations

including locks and keys of Your Stock of Watercraft

and/or the cost of opening safes, where, because of

theft, the keys and/or combinations are stolen, or

there are reasonable grounds to believe the keys may

have been duplicated;

b. replacing and developing security fi lm where it is

exposed because of a covered Event.

The maximum We will pay under this Additional benefi t

is $5,000 for any one Event unless another amount is

specifi ed in the Schedule.

8. Temporary removal

For Property Insured (other than laptop computers,

Directors’, Partners’ and Employees’ Personal Property

and employees’ tools of trade) temporarily removed to

other premises within the Territorial limits and that were

stolen or Damaged during theft following visible, violent

and forcible entry to the premises.

Provided that:

a. for Watercraft, this Additional benefi t will apply to

Watercraft temporarily removed from the Situation

for the purposes of service and/or repair and/or

the fi tting of Parts and Accessories, temporary and

incidental storage, display or sale but does not

provide cover while any Watercraft are being driven

under their own power. We will not pay more than

the greater of 20% of the Limit of Indemnity against

the relevant item of Property Insured or the amount

shown in the Schedule as the maximum value of any

one Watercraft.

b. for Contents and Stock in Trade other than

Watercraft, the maximum We will pay for this

Additional benefi t will be 20% of the Limit of

Indemnity on Stock in Trade excluding Stock of


64

vii. Stock of Watercraft whilst on water;

viii. Stock in Trade and Contents after business hours,

unless there is visible, violent and forcible entry

into, or exit from, the Situation or Premises;

ix. fi xtures and fi ttings unless they are secured to

Buildings;

x. Property Insured from within a Building, unless

stolen by a person or persons concealed within

the Building where there is visible, violent and

forcible exit from the Building;

xi. Property Insured not within a Building, other than

Stock of Watercraft;

xii. Parts and Accessories from Your Stock of

Watercraft, unless the Watercraft is itself stolen;

xiii. Glass or the cost of replacing signage,

ornamentation, refl ective materials and burglar

alarm tapes and connections attached to the

Glass;

xiv. Watercraft, other than Your:

a. customers’ Watercraft; and

b. Stock of Watercraft;

xv. Watercraft for which cover could have been

obtained under, or would have been covered but

for the effect of any Specifi c exclusion within,

Section One – Marina Liability or Section Six –

Vessels, Piers and Pontoons.

b. We will not pay for loss or Damage caused directly

or indirectly by or in connection with or occasioned

through:

i. an act committed by:

a. any of Your Family Members;

b. any persons while lawfully at the Situation;

ii. embezzlement or misappropriation by You or any

person employed by You;

iii. fi re;

iv. the relaxation of or change to any security

precaution that affects its effi ciency without Our

written consent;

v. theft or any attempt at theft of Property Insured

from an Approved Safe, Strongroom or security

enclosure opened by a key or by use of the details

of a combination, either of which has been left

at the Situation or Premises while closed for

business;

vi. the dishonest manipulation of any database or

computer system;

b. Defi ned Event 2.b. Outside Business Hours is covered,

We will increase the Limit of Indemnity for this

Defi ned Event by $1,000.

These increases will apply until the closing time of the

Bank on the next business day after the holiday.

In respect of Defi ned Event 3 – Glass, We will not pay

more than a combined total of $5,000 any one Event for

the following Additional benefi ts.

15. Frames, Tiles and Stock

For repairing Damage to window or door frames or tiled

shopfronts and repairing or replacing Stock in Trade.

16. Alarm tapes, signage and temporary shuttering

For:

a. temporary shuttering and security;

b. replacing signage, ornamentation, refl ective

materials and alarm tapes;

c. after-hours services by repairers including express

delivery and overtime;

d. Damage to illuminated signs including perspex and

plastic signs, not otherwise insured.

Optional benefi ts

Parts and Accessories

Where the Schedule shows that this Optional benefi t is

operative, We will cover parts and Accessories attached

to Your customer’s Watercraft, or Stock of Watercraft

under this Section, even if the Watercraft itself is not

stolen. To this extent, Specifi c exclusion 1.a.xii below will

not apply.


1. Theft

In respect of Defi ned Event 1 – Theft, We will not pay for:

a. loss of or Damage to:

i. Money;

ii. cigarettes, tobacco and alcohol unless included

in the Schedule;

iii. jewellery, furs, bullion, precious metals or

precious stones for an amount in excess of $2,000

in total;

iv. works of art, antiques and curios or sporting

memorabilia for an amount in excess of $2,000

in total;

v. live animals, birds or fi sh or any other living

creature; or

vi. plants, shrubs, landscaping or growing crops,

pastures or standing timber;


65

Section Eight – General PropertyThe coverWhere this Section is shown as insured on the Schedule,


Settlement if any of the Property Insured is Damaged

by any sudden, unexpected and unforeseen occurrence


Basis of SettlementThe Basis of Settlement will be:

1. Repairable Items

for repairable items: Reinstatement or the estimated cost

of Reinstatement if You choose to replace the item.

2. Unrepairable Items

For unrepairable items: Reinstatement or Replacement.

3. Unspecifi ed Items of Tools of Trade

For unspecifi ed tools of trade: We will not pay more than

$2,000 for any one item.

Limit of IndemnityWe will not pay more than the relevant Limit of

Indemnity shown against each item in the Schedule for

this Section for any one Event.


Specifi c exclusionsWe will not pay for:

1. Perils exclusions

loss or Damage caused by or connected in any way with:

a. spontaneous combustion, fermentation, heating or

any process involving the direct application of heat,

deterioration and putrefaction of refrigerated goods;

b. any tsunami, tidal wave or other action of the Sea;

c. theft of property in the open air;

d. fraudulent or dishonest acts, embezzlement, forgery,

erasure, counterfeiting or misappropriation by

electronic means or otherwise;

e. unexplained inventory shortages or disappearances;

f. shortage in the supply or delivery of materials to or

from You;

g. deception;

vii. unexplained disappearances or unexplained

shortages, whether resulting from clerical or

accounting errors or shortages in supply or

delivery of materials to or by You;

viii. fraudulent conversion or theft by deception or

false pretences committed by a Bailee.

2. Money

In respect of Defi ned Event 2 – Money, We will not pay for

loss of or Damage to or attempted theft of Money:

a. due to shortages arising directly or indirectly from

or in any way connected with clerical or accounting

errors, breakdown or malfunction of any machine or

electrical or electronic device or errors in receiving or

paying out;

b. not discovered within seven (7) working days of the

insured Event;

c. through collusion, embezzlement or

misappropriation by:

i. You, Your directors, partners or any person

employed by You or them; or

ii. Family Members of those in Clause i. above.

d. carried by commercial money carriers or collectors or

common carriers;

e. in an unattended Vehicle;

f. in an Approved Safe or Strongroom opened by a key or

by use of details of a combination either of which has

been left on Your Premises while closed for business;

g. arising directly or indirectly out of or in any way

connected with the dishonest manipulation of any

database or computer system.

3. Glass

In respect of Defi ned Event 3 – Glass, We will not pay for:

a. any disfi guration, crack, chip, imperfection in or on

the Glass other than Breakage;

b. Damage arising directly or indirectly from fi re,

artifi cial heat, lightning, subterranean fi re, Flood,

explosion, earthquake, volcanic eruption or impact by

aircraft or articles dropped therefrom;

c. Damage to Glass when in transit or while being fi tted

into position or altered or removed from its fi tting, or

while its fi tting is being removed, altered or worked

on;

d. Damage to Glass forming part of Your Stock in Trade.


66

2. Property exclusions

loss or Damage to:

a. Vehicles, caravans, trailers, motorcycles, Watercraft,

aircraft or aerial devices or their accessories;

b. Property Insured during the course of and as a result

of its processing;

c. Property Insured in the course of construction,

erection, renovation or demolition;

d. glass or items of a brittle nature;

e. Money, jewellery, furs, bullion, precious metals or

precious stones;

f. curios or works of art;

g. mobile phones, photographic equipment, computer

equipment unless specifi ed in the Schedule;

h. any guns, sporting equipment or musical

instruments while they are in use;

i. Property Insured in the open air caused by wind,

rainwater or Hail unless such property is designed to

function without the protection of walls or roofs;

j. Property Insured should it be lost or Damaged

during use or recovery while in use underground,

underwater or within inaccessible locations;

k. livestock, animals, birds, fi sh, land, standing timber

or growing crops and pastures.

h. loading or unloading, delivery or dispatch;

i. demolition;

j. testing, intentional overloading or experiments;

k. any process of heat treatment, welding, grinding,

cutting, drilling, shaping or the application of tools

to the Property Insured;

l. doors, lids, catches, latches, locks or any door or lid

closing or securing mechanism or device, which is

faulty or has pre-existing Damage;

m. faulty packing or storage containers;

n. mechanical, hydraulic, electrical or electronic

breakdown, failure, malfunction or derangement

of any machine or electrical or electronic device or

temperature controlling equipment;

o. moths, termites or other insects, vermin, rust

or oxidation, mildew, mould, contamination or

pollution, wet or dry rot, corrosion, change of

colour, dampness, light, variations in or extremes

of temperature, evaporation, disease, inherent vice,

latent defect, change in fl avour, texture or fi nish, or

smut or smoke from industrial operations;

p. wear and tear, fading, scratching or marring, chipping

or denting, gradual deterioration, developing fl aws,


q. data processing or media failure or breakdown,

or malfunction of a processing system, including

operator error or omission, or computer virus;

r. theft other than:

i. theft resulting from forcible and violent entry

evidenced by visible Damage to the securely

locked portion of any Building or Vehicle

containing the Property Insured. Where an

ungaraged Vehicle containing the Property

Insured is left overnight, We will not pay unless

the Vehicle is securely locked and fi tted with an

active operational audible alarm; or

ii. theft by armed hold-up occurring at the Premises;

or

iii. theft from the Premises following assault

or violence or threat of immediate assault

or violence to You, Your employees or Your

customers.


67

Insured Vehicles

1. Specifi ed Vehicles

If the Schedule identifi es Vehicles as “Specifi ed Vehicles”,

the Policy will cover those Vehicles specifi ed in the

Schedule.

Excesses applicable to Part A and Part B

1. Basic Excess

The Basic Excess is shown in the Schedule and is the fi rst

amount You must bear for each claim.

2. Age Excess

If the Insured Vehicle was being driven by or was in the

charge of a driver under the age of twenty fi ve (25), in

addition to the Basic Excess, You must bear the Age

Excess shown in the Schedule.

3. Inexperienced driver Excess

If the Insured Vehicle was being driven by or was in the

charge of a driver aged twenty fi ve (25) years or over

but who has not held the Australian driver’s licence

required to drive the subject Vehicle for at least two (2)

years, in addition to the Basic Excess, You must bear the

Inexperienced driver Excess shown in the Schedule.

4. Faultless Excess

You will not have to bear the Basic Excess, Age Excess or

Inexperienced driver Excess, if:

a. in Our opinion, the accident was not Your fault and

You have supplied the name, address and Vehicle

registration number of the person responsible; and

b. the Damaged Vehicle is a sedan, station wagon, utility

or goods-carrying Vehicle under two (2) tonnes gross

Vehicle mass.

5. Certain Damage

You will not have to bear the Age Excess or Inexperienced

driver Excess if You are claiming for:

a. windscreen or window glass Damage only for one

single claim per Period of Insurance;

b. theft;

c. Hail, storm or Flood Damage;

d. Malicious Damage; or

e. Damage to the Insured Vehicle while parked.

Section Nine – Commercial MotorThe coverWhere this Section is shown as insured on the Schedule,


Settlement set out below in:

1. Part A – Loss or Damage; and

2. Part B – Liability to Third Parties.

This Policy is not designed to insure any Vehicle privately

owned by a director, principal, manager, shareholder

or employee or Family Member of a director, principal,

manager, shareholder or employee that is not used

primarily for business purposes in relation to Your

Marine Business.

Defi nitions

Agreed value means the agreed value stated in Your

Schedule which We insure Your Insured Vehicle for.

Insured Vehicle means a Vehicle insured by this Section.

Malicious Damage means intentional Damage done to the

Vehicle by someone else without Your consent.

Specified Driver(s) means the drivers listed as Specifi ed

Drivers in the Schedule.

Specified Vehicle(s) means the Vehicles identifi ed as

Specifi ed Vehicles in the Schedule.

Substitute Vehicle means a Vehicle not belonging to You,

which is used by You with the consent of the owner

whilst Your Vehicle cannot be used because it is

undergoing repair or service.

Sum Insured means the Sum Insured stated in Your

Schedule.

Vehicle means:

1. all:

a. registered motor vehicles;

b. vehicles for which You are legally responsible;

including, motorcycles, mobile machines, trailers and

caravans that are Yours or for which You are legally

responsible; and

2. any manufacturer’s tools, accessories, equipment

and options fi tted to the vehicles referred to in Clause

1. above.


68

2. Accommodation and Travelling Expenses

If the Insured Vehicle is on a journey and:

a. suffers Accidental Damage and is unable to be driven;

or

b. is lost by theft and not found within a reasonable

time;

We will pay the reasonable cost for essential temporary

accommodation expenses or travelling expenses

incurred by You to complete the journey or return to the

point of departure, up to a maximum of $500 for any one

Event.

3. Additional accessories

We will pay for loss of or Damage to any equipment and

apparatus of the Insured Vehicle as maintained by You,

including radio receivers, tape recorders, compact disc

players, navigational equipment or telephones built into

the Insured Vehicle (but excluding mobile phones) up

to a maximum of $1,500 for any one Event unless such

other amount is specifi ed in the Schedule.

4. Death of Your driver

This Additional benefi t applies to Specifi ed Vehicles only.

We will pay for funeral expenses following the death of

the driver of the Insured Vehicle caused directly by the

accident up to a maximum of $5,000 (unless such other

amount is specifi ed in the Schedule) for any one Event

less any amount payable by any accident compensation

authority or medical fund.

5. Emergency car hire

Where Your Insured Vehicle is a sedan, station wagon

or utility and Your Insured Vehicle is Damaged in an

accident and can not be driven, or is Damaged by an

attempted theft and can not be driven, We will pay the

daily rental rate of a hire vehicle for up to two consecutive

days when the loss is reported to Us within 48 hours of

occurrence.

Any such rental will be arranged through Our preferred

suppliers when the loss is reported. Additional charges

incurred, other than the daily rental rate, for any such

rental are excluded.

6. Emergency repairs

We will reimburse You for the cost of emergency repairs

which may be necessary to enable You to drive Your

Insured Vehicle to the point of departure after it is

involved in an accident, suffers Malicious Damage, or

is stolen and recovered in a damaged condition.

The maximum We will pay in respect of any one Event

is $500.

Part A – Loss or Damage to VehiclesDefi ned Events applicable to Part A1. Accidental Damage, including Damage caused by fi re,

Hail, Flood, storm or earthquake;

2. loss by theft and not found or

3. Malicious Damage.

Basis of Settlement applicable to Part AIf during the Period of Insurance a Defi ned Event occurs

to an Insured Vehicle, We will at Our option:

• replace, reinstate or repair Your Insured Vehicle; or

• pay You the reasonable cost to repair Your Insured

Vehicle to its condition before it was Damaged; or

• if Your Insured Vehicle is a Total loss, and Your

Schedule shows that Your Insured Vehicle is insured

for Market Value or Sum Insured: We will pay You the

Market Value or the Sum Insured whichever is the

lesser.

• if Your Insured Vehicle is a Total loss, and Your

Schedule shows that Your Insured Vehicle is insured

for Agreed value: We will pay You the Agreed value.

Limit of Indemnity applicable to Part AWe will not pay more than the Market Value, or Sum

Insured whichever is the lesser or Agreed Value if

relevant, for any one Insured Vehicle for any one claim

made during the Period of Insurance.

Additional benefi ts applicable to Part AThe following covers are:

a. in addition to the relevant Market Value/Sum

Insured/Agreed value; and

b. only available in addition to a claim for loss or

Damage covered under this Part A; and

c. only available if the loss or Damage exceeds the

relevant Excesses payable.

1. Towing

Following a Defi ned Event, We will pay the reasonable

cost of protection, removal and towing of the Insured

Vehicle to the nearest repairer, place of safety or any

other place to which We agree to.


69


We will pay You the reasonable costs necessarily

incurred for the cleanup and removal of debris from

an Insured Vehicle up to a maximum of $5,000 for any

one Event, unless such other amount is specifi ed in the

Schedule.

13. Signage or sign writing

We will pay for any loss of or Damage to signage and

artwork where Reinstatement is required up to a

maximum of $2,000 for any one Event unless such other

amount is specifi ed in the Schedule.

14. Vehicle return

Where the Insured Vehicle is a sedan, station wagon or

utility and is Damaged in an accident and unable to be

driven, We will pay up to a maximum of $500 for any

one Event to return the Insured Vehicle to its original

destination or point of departure, whichever is required

by You.

15. Vehicle being transported

We will pay for loss or Damage where the Insured Vehicle

is being transported by road, rail, Sea or air between any

places within Australia. This cover will not apply where

more than one Vehicle is being transported in any one

conveyance.

16. Replacement Vehicle


Where the Insured Vehicle is a sedan or station wagon

and is declared a Total loss within two (2) years of its fi rst

registration We will, at Your option (and with the consent

of any fi nancier where applicable), replace the Insured

Vehicle with a new Vehicle of the same make, model,

series and accessories (subject to local availability). If a

replacement Vehicle is not currently available, We will

pay You either the Market value or Agreed value of Your

Vehicle, whichever is shown in the Schedule, less any

applicable Excesses.

17. Total loss of a leased or fi nanced Vehicle


Where the Insured Vehicle is subject to a lease or fi nance

contract and suffers a Total loss, We will:

a. for leased Vehicles, pay You or the lessor the

difference between the residual value under the lease

and Market value of the Vehicle less any discount of

fi nance or interest charges for the unexpired period

of the lease agreement;

b. for fi nanced Vehicles (other than leased Vehicles),

pay You or the fi nancier the difference between the

Market value and the cost to pay out the fi nance

contract at the date of the loss or Damage less any

7. Employees vehicles

We will cover an employee owned Vehicle whilst being

used in connection with Your business and with Your

consent. However, We will not pay for claims if there is

any other insurance for the same Event at the time of the

accident or loss, except for any amount in excess of the

limit of indemnity under the other insurance.

The maximum cover We will pay in respect of any one

Event is $50,000.

8. Gates, ropes, chains and tarpaulins

We will pay for claims for theft of any gates, ropes, chains

or tarpaulins which are accessories to Your Insured

Vehicle when they are lost as a result of theft of Your

entire Insured Vehicle up to a maximum of $1,500 any

one Event.

9. Modifi cation to Vehicle


We will pay for costs incurred to modify the Insured

Vehicle if its driver is permanently disabled as a direct

result of injuries received in the accident up to a

maximum of $3,000 for any one Event less any amount

payable by any accident compensation authority or

medical fund.

10. General average

If the Insured Vehicle is being transported by Sea

between places within Australia or New Zealand during

the Period of Insurance, We will pay Your contribution

for general average and salvage charges where such

maritime conditions apply up to the Limit of Indemnity

or the Insured Vehicle’s Market Value, whichever is the

lesser, whether or not loss or Damage is suffered by the

Insured Vehicle by a Defi ned Event applicable to Part A.

11. Re-keying and re-coding

If the keys to Your Insured Vehicle are stolen We will pay

for the replacement of Your Insured Vehicle’s keys and

the necessary re-coding of Your Insured Vehicle’s locks.

The maximum We will pay is:

• The amount by which the cost to re-key and/or re-

code Your Insured Vehicle exceeds the Basic Excess

payable for the claim, up to a maximum amount of

$1,000 per Vehicle, or a maximum of $10,000 for any

one Event.

This benefi t will only apply if:

• The theft of Your keys has been reported to the police,

and the keys have not been stolen by an employee,

Family Member, invitee or person who resides with

You, and

• You are not entitled to cover under any other policy.


70

c. if the broken windscreen or window glass is the only

Damage to Your Vehicle; and;

d. If Your Vehicle is a sedan, station wagon, utility or

goods carrying vehicle under two (2) – tonne gross

vehicle mass.

2. Hire costs following an accident

Where Your Insured Vehicle is a sedan, station wagon or

utility and the loss or Damage is caused by an accident,

We will assist You in paying the cost of a hire vehicle:

• Up to 42 days rental of a sedan, station wagon or

utility where We arrange the rental; or

• Up to 21 days but no more than a maximum of $75

per day or maximum $2,000 each Vehicle per claim

where We are unable to arrange such rental.

Specifi c exclusions applicable to Part AWe will not pay for:

1. Loss of Use

loss or Damage suffered because You cannot use the

Insured Vehicle.

2. Wear and Tear and Breakdown

loss or Damage caused by wear and tear, rust, corrosion,

depreciation, or mechanical, structural, electrical or

computer failures, malfunctions or non-performance.

3. Tyres

Damage to tyres or wheel rims caused by braking, road

punctures, cuts or bursts.

4. Old Damage

the costs of repairing pre-existing Damage, or the costs

of fi xing faulty repairs which were done before the

commencement of Your Policy.

5. Intentional Damage

loss or Damage intentionally caused by You or a person

acting with Your express or implied consent.

6. Safeguard of Vehicle

further loss or Damage to the Insured Vehicle following

a Defi ned Event, unless reasonable steps were taken to

protect or safeguard the Insured Vehicle after the Defi ned

Event.

discounts and deductions for the unexpired period of

the fi nance contract.

We will not meet any payments in arrears or interest

accrued thereon. The maximum We will pay under this

Additional benefi t is $10,000 for any one Vehicle during

the Period of Insurance.

18. Damage to personal effects or personal property

If We admit a claim under Part A of this Section, We will

also pay up to $1,000 for Damage to personal effects

belonging to You or Your employees. We will not pay

for mobile phones, Money, furs, jewellery, watches or

computers.

19. Vehicle return following theft

Where the insured Specifi ed Vehicle is stolen and then

recovered, We will pay up to $500 for the cost of returning

the Vehicle to its normal place of garaging or Your

Situation.

20. Hire costs following theft or fi re


Where the Insured Vehicle is a sedan, station wagon or

utility and the loss or Damage is caused by fi re or theft,

We will assist You in paying the cost of a hire Vehicle:

a. up to $75 per day, but no more than a maximum of

$2,000 for this Vehicle during the Period of Insurance;

or

b. until recovery of the Vehicle or settlement of the

claim, whichever is the earlier; and

c. provided the theft or fi re has been reported to Us and

to the police.

Optional benefi t applicable to Part AYour Schedule will show which, if any, of the following

policy options apply. The following options are only

available to a claim covered under Part A provided the

amount exceeds the Excess payable.

1. Removal of basic excess for windscreen claims

When Your Schedule shows that the removal of the

Basic Excess for windscreen claims option applies, if the

windscreen or window glass in Your Insured Vehicle is

accidentally broken We will not apply an Excess to Your

claim.

This option only applies:

a. if the fracture extends through the entire thickness of

the glass or, in the case of laminated windscreens, a

fracture extends through all layers of the windscreen;

b. to one claim in any one Period of Insurance;


71

We will also cover the legal liability of a passenger

travelling in or getting into or out of the Insured Vehicle

with Your permission, or the permission of a currently

licensed driver driving or in charge of the Insured Vehicle

with Your consent.

We will not pay:

d. if the Event or series of related Events that give rise

to the legal liability or any part of it is covered or

indemnifi ed in any way by any:

i. statutory or compulsory insurance policy or any


ii. compensation scheme or fund, even if the

amount recoverable is nil.

e. any amount of a claim over that recoverable under

any:

i. statutory or compulsory insurance policy or any


ii. compensation scheme or fund.

f. if the legal liability would have been covered or

indemnifi ed in any way if You had not failed to:

i. insure Your Vehicle;

ii. register Your Vehicle; or

iii. comply with the requirements of any statutory or

compulsory insurance policy or any statutory or

compulsory insurance or compensation scheme

or fund.

g. for legal liability to any:

i. person driving or in charge of the Insured Vehicle;

ii. of Your employees; or

iii. Family Members of persons described in Clause i.

or ii. above.

h. for legal liability for any psychological or psychiatric

injury (other than it being directly caused by or

arising from serious physical bodily injury of the

person suffering the psychological or psychiatric

injury).

i. unless You or the person claiming under this Section

have notifi ed Us of a claim under this Section within

six (6) months of You or that person fi rst becoming

aware of an intention to make a claim against You or

that person.

j. for legal liability caused by or arising from an

intentional act by You or any other person.

k. any amount of exemplary, punitive or aggravated

Damages.

Part B – Liability to Third PartiesBasis of Settlement applicable to Part BSubject to the applicable Excesses, Conditions,

exclusions and Limit of Indemnity:

1. Property Damage

We will cover Your legal liability to pay compensation for

loss or Damage to someone else’s property caused by a

Vehicle accident, which is partly or fully Your fault and

occurs during the Period of Insurance.

This cover will apply only if Your legal liability for loss or

Damage to someone else’s property arises out of the use

of:

a. the Insured Vehicle; and/or

b. a caravan or trailer towed by the Insured Vehicle.

We will also cover the following persons as if they were

You in accordance with this Part B.1., for their legal

liability for loss or Damage to someone else’s property:

c. any person who is driving, using or in charge of the

Insured Vehicle with Your permission;

d. a passenger travelling in the Insured Vehicle or who is

getting into or out of the Insured Vehicle;

e. Your employer, principal or partner, arising from

Your use of the Insured Vehicle.

However, We will not cover liability:

f. for loss or Damage to Your own property; Your Family

Member’s property or to property which is in Your

possession, custody or control;

g. which is insurable under any statutory or compulsory

insurance policy or any statutory or compulsory

insurance or compensation scheme or fund covering

such legal liability.

2. Bodily injury (CTP gap liability)

We will also cover You, or a currently licensed driver

of the Insured Vehicle driving the Vehicle with Your

consent, for legal liability for death or bodily injury

caused by or arising from the use of the Insured Vehicle,

if the Insured Vehicle is registered for use on a public

road when the liability is incurred, for one or more of the

following events:

a. driving or being in charge of;

b. carrying goods on (which may fall from);

c. loading or unloading;

the Insured Vehicle or a Substitute Vehicle.


72

3. Trailers

for Damage caused or contributed to by more than the

legally permitted number of trailers being attached to the

Insured Vehicle.

4. Personal Property/Property in Your Custody

for Damage to property belonging to or in the custody of

You or any person entitled to cover under Part B.

5. Fines, Penalties, Punitive Damages

for any fi nes, penalties, or aggravated, exemplary or

punitive Damages.

6. Radioactive materials

if Your Insured Vehicle is being used for or is attached to

or is towing a Vehicle, mobile machine and /or trailer, for

the commercial transport of radioactive materials.

7. Dangerous Goods

if the Insured Vehicle is being used for, or in connection

with, the transportation, storage, loading or unloading

of Dangerous Goods (as defi ned in the Australian

Dangerous Goods Code) unless the method of

transportation complies with the Australian Dangerous

Goods Code and all other legislative and regulatory

requirements. We will not pay more than $250,000 for

each Event even when You meet those requirements.

8. Vehicle used on rails

if the Insured Vehicle is used on rails or tracks at the time

of an accident.

9. Hooks and hoists

for claims caused by goods falling from the hook or

hoisting apparatus of any crane or similar lifting

equipment.

General exclusions applicable to Part A and Part BWe will not pay if:

1. Driving Under the Infl uence of Drugs/Alcohol

the Damage, loss or injury is caused while the Insured

Vehicle is being driven by any person impaired by or

under the infl uence of any drug or alcohol, or by any

person with a percentage of drugs or alcohol in their

breath or blood in excess of that allowed by law. However,

if You can prove You did not know that the driver of the

Insured Vehicle was so affected, We will cover You but

not the driver of the Insured Vehicle.

Additional benefi ts applicable to Part BTo the extent that the Limit of Indemnity is not otherwise

exhausted, We will cover:

1. Loading and Unloading

Accidental Damage to someone else’s property during

the Period of Insurance caused by the loading and

unloading of the Insured Vehicle.

2. Uninsured Motorists

Damage to the Insured Vehicle during the Period of

Insurance caused by an accident with another Vehicle

during the Period of Insurance if:

a. the driver of the other Vehicle was at fault;

b. the other Vehicle was uninsured; and

c. You can tell Us who the other driver was and identify

the other Vehicle.

The amount We will pay is $5,000 less any applicable

Excess unless such other amount is specifi ed in the

Schedule.

We will not pay if We admitted a claim under Part A of

this Section.

3. Substitute Vehicle

Accidental Damage during the Period of Insurance to

someone else’s property, caused while You were driving

a Substitute Vehicle. We will not pay if the Vehicle was

subject to a self-drive hire agreement, or for Damage to

the Vehicle You were driving.

4. Falling Goods

Accidental Damage to someone else’s property is caused

by goods falling from Your Vehicle.

Specifi c exclusions applicable to Part BWe will not pay:

1. Unregistered Vehicles

if Your Vehicle is unregistered at the time of the Event

giving rise to the claim.

2. Tool of Trade

for liability for Damage to underground services, pipes,

cables, or similar objects, caused by or arising from the

use of the Insured Vehicle, or liability for Damage to any

land or fi xed property resulting in any way from vibration

or from the removal or weakening of or interference with

support to land, Buildings or any other property resulting

from the use of the Insured Vehicle.

If the Insured Vehicle comes into direct contact with

overhead cables, wires or conduits, We will pay only for

the repair of the direct physical Damage so caused, up to

a maximum of $100,000 for each Event.


73

11. Seizure of Vehicle

Your legal interest in the Insured Vehicle ceases, or the

Insured Vehicle is seized or taken possession of by any

persons lawfully entitled to do so.

12. Illegal Purpose

the Insured Vehicle is used for any illegal purpose with

Your consent.

13. War

the loss or Damage is caused by war, foreign hostilities,

civil war, rebellion, revolution, insurrection, military or

usurped power or looting, sacking or pillage following

any of these events.

Specifi c conditions applicable to Part A and Part B

1. Changes to Your Vehicles

You must advise Us immediately if during the Period of

Insurance the Insured Vehicle is modifi ed in a manner

that affects its value or performance in any way.

When We receive this information, We may:

a. alter the terms and conditions of Your Policy; or

b. charge You an additional premium; or

c. decide against offering to renew Your Policy.

2. Keeping evidence of the value of the insured property

You should keep evidence of the value of all property

covered under this Section of Your Policy. You should

also keep evidence of the amount of any loss, Damage

or destruction.

3. Prevention of loss or Damage

You must take all reasonable precautions to prevent

injury, loss or Damage, including securing the

Insured Vehicle against unauthorised entry when it is

unattended. You must keep Your Vehicle in good repair.

4. Automatic Additions and Deletions

This Additional benefi t applies only to Specifi ed Drivers

and Specifi ed Vehicles.

We will allow You to replace:

a. Your Vehicles and/or include additional Vehicles;

b. Your Specifi ed Drivers and/or include additional

Specifi ed Drivers;

to those You declared to Us at the commencement of the

Period of Insurance provided that:

2. Submitting to Test

the driver of the Insured Vehicle refuses a request from

a person with legal authority to take a breath, blood

or other test to determine the percentage of drugs or

alcohol in the person’s breath or blood.

Although We will not cover the driver of the Vehicle if the

driver refused to submit to the test, We will indemnify

You if You can prove that You did not consent to or

condone the driver refusing to submit to the test.

3. Unlicensed Drivers

the loss or Damage is caused while the Insured Vehicle

is being driven (with Your consent) by any person who

is not licensed under any relevant law to drive such

a Vehicle.

4. Overloaded Vehicle

the Insured Vehicle is used to carry or tow a load or

carry passengers greater than that for which the Insured

Vehicle was constructed.

5. Unroadworthy Condition

the Insured Vehicle is used in an unroadworthy or unsafe

condition. However, We will cover You if You can prove

that the condition could not reasonably have been

detected by You or that the loss, Damage or liability was

not caused by or contributed to by the unroadworthy or

unsafe condition.

6. Approved Fuel Systems

loss or Damage is caused by a fuel system which does not

comply with the relevant Australian Standard.

7. Tests

the Insured Vehicle is being tested other than in

connection with service or repair by a person who is

qualifi ed to carry out the service or repair or who is acting

under the supervision of such a person.

8. Participation

the Insured Vehicle is participating in or used in

connection with, rally driving, motor racing, any activity

on a racetrack, competitive motor sport event, an

experiment, contest or other motor sports event.

9. Hire or Reward

the Insured Vehicle is used for carrying passengers for

hire or reward, except for a private pooling arrangement

or when You receive a travelling allowance from Your

full-time employer.

10. Hire for Your vehicle

Your Vehicle is being used or let for hire.


74

Section Ten – Employee DishonestyThe coverWhere this Section is shown as insured on the Schedule,

We will indemnify You for any loss of Property Insured

(including Money) occasioned by or arising out of the

fraudulent or dishonest act(s) of an Employee, whether

acting alone or in collusion with others, provided that:

1. the loss occurs during the Period of Insurance;

2. the loss is discovered not later than twelve (12)

months after the expiry of the Period of Insurance or

not later than three (3) months after the termination

of the employment of the Employee, whichever

occurs fi rst.

Defi nition

Employee means any person who is employed by You

in the Marine Business who You compensate by salary,

wages, commission or other benefi t and have the right at

all times to govern, control and direct in the performance

of their work. An employee does not include:

a. a partner, director or trustee unless they are acting

in their capacity as an employee; or

b. any broker, factor, consignee or independent

contractor or employees of independent contractors.

Limit of IndemnityWe will not pay more than the Limit of Indemnity shown

in the Schedule for:

1. Individual Employee

any:

a. one Employee; or

b. loss that arises out of the act or acts of any one

Employee or for which that Employee is concerned

or implicated by acting in collusion with any other

person.

The Limit of Indemnity will be reduced by the total claims

payable by Us for losses resulting from the acts of that

Employee in any period before the current Period of

Insurance;

2. All Employees

all Employees for all losses suffered during the Period

of Insurance. We will automatically reinstate the Limit

of Indemnity, but only in respect of this Clause 2., once

during the Period of Insurance to the original amount

immediately preceding such claim, subject to the

payment of any extra premium We may require.

c. such Vehicles are of a substantially similar type to the

Vehicles declared by You to Us at the commencement

of the Period of Insurance or are otherwise approved

by Us in writing;

d. such Specifi ed Drivers have not been declined motor

vehicle insurance by any insurer in the three (3) years

prior unless accepted by Us in writing;

e. You notify Us of any change to Your Specifi ed Vehicles

or Specifi ed Drivers within thirty (30) days of the

change occurring; and

f. You must pay Us any additional premium We require.


75

2. loss arising from the conduct of an Employee if You

had knowledge or information of any prior act of

fraud or dishonesty by that Employee;

3. loss arising from a failure to make payment of,

or default under, any loan or credit transaction

obtained from or made by You whether authorised or

unauthorised, unless there is fraud or dishonesty by

an Employee;

4. loss arising out of a change or variation in the

method of conducting the Marine Business that

results in information furnished to Us in any Proposal

or application for this insurance or any supporting

documentation being different in some material

degree;

5. consequential loss (for example, loss of use of the

Property Insured) or other loss of any kind not

specifi cally referred to in this Section;

6. loss of Property Insured owned, managed, held in

trust for or controlled by a superannuation fund.


1. Checks and precautions

You must perform all checks or precautions described

by You in any Proposal for this insurance or any

documentation supporting the Proposal. You must also

perform appropriate probity checks prior to engaging any

new Employee who will carry responsibility for handling

Money and Stock in Trade.

2. Change in Business arrangements

You must inform Us immediately in writing and obtain

Our written consent if there has been any change in:

a. the method of conducting the Marine Business

resulting in the facts differing in some material

degree from those described in the Proposal for this

insurance or any supporting documentation;

b. the ownership of the Marine Business without Our

prior written consent.

3. Claims against employees

In the Event of any loss being discovered, You must, to

the extent allowed by law, retain all salary, commission

moneys or assets that are the property of the Employee

for whose conduct a claim is made and which are or may

come within Your control, and You must apply them

towards making good the amount of the loss.

4. Dishonest employee

You must give to Us written notice immediately upon

the discovery of any conduct of any Employee that

is fraudulent or dishonest or of reasonable cause for

suspicion about any such conduct, or of any lack of

integrity by an Employee whether giving rise to a claim or


Additional benefi ts

1. Retroactive cover

If You held a prior policy of employee dishonesty

insurance immediately before obtaining cover under

this Section and You suffer a loss that would have been

recoverable by You under the prior policy, except for the

fact that the time within which to discover any loss had

expired, We will cover You in accordance with the terms,

conditions and limitations of this Section as if the loss

had happened during the Period of Insurance, provided:

a. We will not be liable for any loss arising from any act

of fraud or dishonesty committed more than twelve

(12) months before the commencement of this

Section;

b. the cover We provide falls within, and will not be

in addition to, the Limit of Indemnity shown in the

Schedule;

c. recovery under this Section for the loss will not

exceed the amount that would:

i. be recoverable under this Section had the acts

or defaults been committed immediately before

discovery; or

ii. have been recoverable under the prior policy had

it continued in force until the discovery of the loss;


2. Unidentifi able Employee

We will indemnify You in accordance with this Section

regardless of You being unable to identify the specifi c

Employee whose conduct has given rise to the loss,

provided that:

a. You have insured for the conduct of all Employees;

and

b. You have reported the loss to the Police and in a

written report, the Police indicate that the loss was

likely to have been caused by the fraudulent or

dishonest conduct of one or more Employees.

Specifi c exclusionsWe will not pay for any:

1. loss or part of a loss, the proof or quantifi cation of

which depends upon any shortage revealed by an

inconsistency in any accounting records, an inventory

computation or enumeration, a comparison of

inventory records with an actual physical count, or a

profi t and loss computation;


76

Section Eleven – Machinery BreakdownThe coverWhere this Section is shown as insured on the Schedule,


Settlement for Breakdown of Your Property Insured

occurring during the Period of Insurance.

Note: This Section does not cover You for Accidental

Damage to Your Machinery or Electronic Equipment

(including explosion or collapse of boilers and pressure

Vessels). This type of cover, if required, can be obtained in

Sections Two and Three.

Defi nition

Blanket Machinery means all the Machinery at the

Situation other than Electronic Equipment and Specifi ed

Machinery, up to the amount stated as the Limit Any One

Loss stated in the Schedule.

Breakdown means any sudden and unforeseen Damage

caused by malfunction or failure which becomes

apparent at the time it occurs and requires immediate

repair or replacement to enable normal operation to

continue.

Electronic Equipment means computers, scanners,

printers, photocopiers, facsimile machines, electronic

cash registers, electronic scales, checkout scanners,

electronic data processors, modems, servers, disc drives,

visual display units, telecommunication equipment,

control equipment, electronic testing, tuning and/or

analysing equipment and other electronic equipment

described in the Schedule but excluding television

receivers, plasma or LCD screens, video or DVD recorders/

players and gambling machines.

Machinery means refrigeration units, air conditioning

units, electrical motors, fans, pumps, air compressors,

boilers, pressure Vessels, hoists, lathes, drilling or

boring machinery and other machinery described in the

Schedule, including any interconnecting cabling and

piping but excluding:

a. Electronic Equipment;

b. Vehicles or mobile or portable machinery.

Property Insured means Specifi ed Machinery, Electronic

Equipment, Blanket Machinery and/or additional

Machinery or Electronic Equipment at the Situation.

Specified Machinery means Machinery identifi ed as

Specifi ed Machinery in the Schedule

not. We will not pay for any loss occurring after the date

of discovery of such conduct.

5. Dual signed cheques

All cheques, account withdrawal or funds transfer

forms drawn to a sum in excess of $5,000 must be

countersigned by another authorised offi cer who must,

independently of Your Employee(s) drawing the cheque,

accounts withdrawal or funds transfer form, examine

the supporting vouchers or requisitions or check against

an authorised payment list prepared and checked

independently of the drawer of the cheque, accounts

withdrawal or funds transfer form.

It is a further condition of cover provided in this

Section that arrangements be in place with Your bank

or fi nancial service provider to not honour cheques,

accounts withdrawal or funds transfer forms drawn

to a value in excess of $5,000 that have not been

countersigned by Your authorised offi cer.

6. Key Security

Watercraft keys must be securely locked inside an

Approved Key Cabinet or Approved Safe while the

Premises are unoccupied.


77

2. Temporary hire and expediting costs

We will pay the following reasonable and necessary

costs of hiring temporary items that are similar to the

Machinery and/or Electronic Equipment specifi ed in the

Schedule and expediting the repair of the Breakdown.

The cost of:

a. hiring the temporary Machinery and/or Electronic

Equipment for use at the Situation;

b. effecting temporary repairs to the item that will form

part of the fi nal repairs;

c. overtime or air freight within Australia (but not on a

specifi cally chartered aircraft), necessary to expedite

permanent repairs to the item;

d. consultants’ fees in connection with the hire and

repair of the item if You have obtained Our approval.

The most We will pay will be the lesser of $5,000 or 50% of

the cost of repair for the item.

3. Insulating oil and refrigerant gas or liquid

We will pay the reasonable and necessary costs of

cleaning, storing, recycling and replacing:

a. insulating oil in transformers, capacitors or

switchgear; and

b. refrigerant gas or liquid in air conditioning or

refrigeration units.

The most We will pay will be $3,000 any one Event.


We will pay the reasonable and necessary costs of the

removal, storage and/or disposal of debris from the

Situation or the demolition, dismantling, shoring up,

propping, underpinning or other temporary repairs of

any Property Insured. The most We will pay will be $5,000

any one Event in addition to the Limit of Indemnity.

Optional benefi tsThe following Optional benefi ts are operative only when

included in the Schedule as insured and then for the

amount specifi ed.

We will also pay for:

1. Deterioration of stock

the deterioration of perishable stock, that You own or for

which You are responsible, resulting from a change in

temperature, caused by:

a. a Breakdown in the refrigeration Machinery for which

a claim has been admitted under this Section;

b. the accidental escape of refrigerant liquid or gas from

the refrigeration Machinery in Clause a. above or from

pipes forming part of it;

Basis of SettlementThe Basis of Settlement will be, at Our option:

1. Repairable items

for Damaged Electronic Equipment and Machinery,

where the Damage is repairable: We will restore the

Damaged portion to a condition substantially the same

as but not better or more extensive than its condition

when new, provided that the work is carried out within

a reasonable period. If it is not carried out within a

reasonable period We may treat it as unrepairable;

2. Unrepairable Machinery

for items of Machinery that cannot be repaired:

a. less than fi ve (5) years old: Replacement;

b. more than fi ve (5) years old: the Market Value;

3. Unrepairable Electronic Equipment

for items of Electronic Equipment that can not be

repaired: Replacement with an item of equal or (nearest

but higher) performance or capacity.

Limit of IndemnityUnless We specifi cally state that an Additional benefi t or

Optional benefi t is in addition to the Limit of Indemnity,

for any one Event We will not pay more than the relevant

Limit of Indemnity shown in the Schedule:

1. for each item of Specifi ed Machinery;

2. for any computer or item of Electronic Equipment;

For Blanket Machinery, We will not pay more than the

Limit Any One Loss for any one item.


Additional benefi tsWhen We have agreed to pay a claim under this Section,

We will provide the following Additional benefi ts where

relevant:

1. Additional Items

After successful installation and commissioning, We will

cover as Property Insured any additional items You buy

after the commencement of the Period of Insurance that

are similar to the Machinery or Electronic Equipment

specifi ed in the Schedule, for the lesser of:

a. 30 days; or

b. until You advise Us of the purchase and You agree to

pay Us any additional premium that We may require.

We will not pay more than $20,000 for any one Event

under this Additional benefi t.


78

ii. periods of interruption due to the need for

cleansing, adjustment, inspection, maintenance

or overhaul;

g. for more than four weeks extension of interruption

due to delays in the repair or restoration of items of

foreign manufacture where such delays result from

one or more of the following:

i. restrictions, measures or regulations imposed by

any government authority;

ii. the time required to obtain replacement

component parts or complete items overseas;

iii. the time required to transport parts or complete

items between the Situation and the overseas

place of repair or restoration;

iv. the time required to engage and transport

overseas specialists or consultants to attend local

repairs;

h. for any increase in the cost of working occurring

because of loss of or Damage to Your records, data,

or software caused by computer virus, being an

executable program or computer code segment

that is self-replicating, requires a host program or

executable disc segment in which it can be contained,

and which destroys or alters the host program or

other computer code or data, causing undesired

program or computer system operation.



We will not cover:

a. any item or Event covered under or for which cover

could be obtained under, Section Two – Material

Damage (Building, Contents and Stock), including

boiler explosion;

b. any item exceeding $200,000 new Replacement value;

c. research, medical and/or biological diagnostic

equipment;

d. refrigeration or display cabinet housing;

e. submersible pumps (greater than 4kw), bore pumps,

turbine pumps, or helical rotor pumps;

f. domestic items;

g. vending or amusement machines or coin operated

machines;

h. lawn maintenance equipment;

i. lifts and escalators;

j. hand held tools;

k. reticulating electrical wiring, liquid or gas piping;

c. the operation of fuses or overload devices protecting

the Machinery in Clause a. above;

d. failure of the public power supply to the point of

attachment to the Building resulting from Accidental

Damage outside the Situation.

2. Restoration of data

the costs incurred for the purpose of restoring data

lost because of Breakdown of Electronic Equipment for

which a claim has been admitted under this Section,

to a condition equivalent to that existing prior to the

Breakdown, including the cost of overtime necessarily

incurred, provided that:

a. the data is backed up daily and precautions existing

or agreed to for its safeguarding and retention are

maintained and observed at all times;

b. We will not pay more than the Sub limit shown in the

Schedule for this Optional benefi t;

c. We will not pay for any loss of or Damage to records

caused by access to Your computer systems and

records by people not authorised by You.

3. Increased cost of working

the increased cost of working incurred during a period

not exceeding three months from the date that increased

working costs are fi rst incurred, following interruption

to the normal operation of an insured item of Electronic

Equipment for which a claim has been admitted under

this Section, provided that:

a. the cost is proved to have been necessarily and

reasonably incurred during the period, over and

above the normal expenses You would have incurred

during the period for the operation of the item;

b. We will not be liable to make any payments under

this Optional benefi t unless You have produced to

Our reasonable satisfaction all accounts, invoices,

receipts and other documentation substantiating

that the expenditure has been incurred;

c. A two day Excess applies to this Optional benefi t. The

amount of the Excess will be two days multiplied by

the average daily increased cost of working for the

period of interruption.

We will not pay:

d. for more than the costs actually incurred by You; and

e. more than the Sub limit shown in the Schedule for

this Optional benefi t;

f. for any expenses incurred during:

i. periods of interruption due to alterations,

improvements or additions to the insured items;


79


1. Inspection

Our representatives will have the right to inspect and

examine the Property Insured at any reasonable time.

2. Claims procedure

Once You have advised Us that You intend to make a

claim, You may commence necessary repairs to mitigate

Your loss provided You keep any Damaged or replaced

parts for Our inspection.

We will not be liable to make any payment under

this Section unless You have produced to Our

reasonable satisfaction all accounts, estimates,

invoices, receipts and other documentation

showing that repairs have been effected or

Replacement has taken place, as the case may be.

3. Maintained and serviced

All Property Insured under this Section and shown

in the Schedule must be maintained and serviced in

accordance with the manufacturer’s specifi cations. We

will not be liable if You do not comply with this condition.

4. Underinsurance

a. Electronic Equipment

If Your declaration of new replacement value of Property

Insured is less than 85% of its actual replacement

cost, We will not pay more than the proportion which

Your declaration bears to 85% of the replacement cost.

Underinsurance will not apply if the amount of the

Damage is less than 5% of the declared replacement value.

b. Blanket Machinery

The number of machine items declared either:

i. in the Proposal Form; or

ii. in a subsequent written declaration to Us;

must be the actual total of the Property Insured items

present at the Situation at the time of the declaration.

If at the time of the loss or Damage it is found that the

declared total number of Property Insured items is

less than the total number present at the time of the

declaration, the amount payable by Us will be reduced in

proportion to the amount of the under declaration.

l. belts, ropes, wires, chains, rubber tyres, dies or

exchangeable tools, engraved cylinders, objects made

of glass or porcelain, ceramics, refractory linings, felt

sieves or fabrics, jointings or packings (including

lubrication, oil, fuel, catalysts or refrigerants) unless

specially shown as insured in the Schedule.


We will not cover:

a. Damage caused by shrinkage, inherent defects

or diseases, natural deterioration or natural

putrefaction or spoilage;

b. Damage caused by improper storage or stowage,

collapse of packing material, storage structure,

deviations from designers’ specifi cations or

instructions;

c. penalties for delay or detention;

d. wasting or wearing away or wearing out of any part

of an insured item caused by or naturally resulting

from ordinary use or working, gradual deterioration,

erosion, rust, corrosion, scale or oxidation (due to

normal atmospheric conditions or otherwise), loss

or Damage due to pitting, scratching of painted or

polished surfaces, adjustment or cleaning;

e. the cost of converting refrigeration and/or

airconditioning units from the use of C.F.C.

(chlorofl uorocarbon) refrigerant gas to any other type

of refrigerant gas;

f. the cost of any:

i. alterations, additions, improvements or overhauls;

ii. temporary repairs unless those temporary repairs

form part of the fi nal repairs and do not increase

the fi nal repair costs;

g. loss or Damage due to any act of the power supplier,

including withholding, restricting or load shedding

the supply of electricity;

h. loss or Damage arising out of the machinery or

electronic equipment being subjected to tests

involving abnormal stresses or arising out of it being

intentionally overloaded; or

i. loss or Damage arising prior to successful initial

commissioning or during test or experimentation;

j. loss or Damage due to faults or defects known to You;

k. loss or Damage due to failure to comply with

statutory requirements relating to safeguarding or

operation of the Machinery or Electronic Equipment

(whether the requirements are known to You or not);

l. the costs for repairing or replacing if the

manufacturer, supplier, agent or any other person

is responsible under the terms of a maintenance

agreement.


80

c. has issued an assessment or amended assessment

about Your liability to pay an amount under any

relevant legislation.

You and Your means as defi ned in the General defi nitions

but extended to include Your directors and their Family

Members who normally who reside with them at the time

the Tax Audit commences.

Limit of IndemnityWe will pay no more than the Limit of Indemnity as

specifi ed in the Schedule for this Section. This is the

maximum We will pay for any one Tax Audit or related

Tax Audits during the Period of Insurance.


Specifi c exclusionsWe will not pay:

1. for any legal liability, court costs, fi nes, penalties, tax,

penalty tax or interest;

2. for any routine enquiries or enquiries made by an

Auditor which are not identifi ed as being either

preliminary to or relating to a Tax Audit;

3. for Professional Fees incurred:

a. prior to the commencement of the Tax Audit;

b. after the Tax Audit has been completed;

c. due to Your improper, unwarranted or unjustifi ed

refusal or failure to comply with any lawful

request made by an Auditor for the production

of documents or the supply of information.

Refusal or failure to comply will not be deemed

to be improper, unwarranted or unjustifi ed if You

refuse or fail to comply upon the written advice of

Your accountant or solicitor;

d. from audits or investigations under customs

legislation;

e. from Tax Audits which You were notifi ed of or

knew of prior to the Period of Insurance;

f. from Tax Audits of income received or earned, or

where the source of income is outside of Australia

or where the services giving rise to the Tax Audit

are performed by persons or entities ordinarily

resident outside of Australia;

g. as a result of any fraudulent act or omission

committed by You or on Your behalf or by Your

employee;

Section Twelve – Taxation Audit CostsThe CoverWhere this Section is shown as insured on the Schedule,

We will pay You for the Professional Fees You reasonably

and necessarily incur within Australia in connection

with a Tax Audit which commences during the Period

of Insurance.

Defi nitions

Auditor means an offi cer of a statutory authority who

is properly authorised to conduct the Tax Audit.

Professional Fees means:

a. fees paid to registered tax agents, fi nancial advisers,

fi nancial institutions, company auditors, accountants

and solicitors who are not Your employees or Family

Members, for the preparation of evidence to be

submitted to the Auditor;

b. overtime paid by You to Your employees to prepare

for or represent You in any Tax Audit;

c. travelling and accommodation expenses incurred

by You or Your employees.

Tax Audit means the investigation of Your Marine

Business’ current and prior years’ fi nancial affairs by an

Australian statutory authority following the lodgement of

Your return and the making of an assessment (including

a self-assessment) regarding Your obligation to pay:

a. income tax;

b. fringe benefi ts tax;

c. capital gains tax;

d. wholesale and sales tax;

e. payroll tax;

f. goods and services tax; or

g. superannuation contributions tax.

h. carbon tax

For the purpose of this Section, the Tax Audit commences

at the time You fi rst receive notice that the Auditor

proposes to conduct a Tax Audit, and is completed when

the Auditor:

a. has given written notice to You to that effect;

b. notifi es You that they have made fi ndings in

connection to a Tax Audit and notifi ed You of those

fi ndings and/or of the actions the Auditor proposes to

take in connection with those fi ndings; or


81

d. permit Us, when necessary, to instruct Your

accountants and solicitors in matters relating to Your

Tax Audit. When We do this, the Professional Fees

will include the fees payable to Your accountants

and solicitors arising from Our instruction of Your

accountants and solicitors. This does not mean that

We will take over or represent You during the Tax

Audit.

We or Our duly appointed agent may conduct Our own

investigation into any matter which is or may be the

subject of the Tax Audit.

h. which are ordinarily associated with the

maintenance and upkeep of Your Marine Business

accounts, returns, taxation and fi nancial records,

and the preparation prior to lodgement of Your

accounts, returns, taxation and fi nancial records

as required by any relevant legislation;

i. more than 12 months after the commencement

of the Tax Audit, unless You can show that

completion of the Tax Audit has been delayed

because of the conduct of the Auditor;

j. if the return in relation to which the Tax Audit is

proposed to be conducted was not reviewed by a

registered tax agent prior to lodgement;

k. if You have not maintained and kept all records

that You are required to maintain and keep

or should or would maintain and keep in the

ordinary course of Your Marine Business;

l. for Your directors or their Family Members for any

personal matter or any commercial activity other

than matters which solely and directly relate

to their performance of duties for Your Marine

Business.


1. Errors

If You or any person acting on Your behalf become aware

of any error in any return of income or other documents

supplied to a statutory authority, You must notify that

statutory authority without delay.

2. Tax returns

You must submit all returns and documents within the

time limits prescribed by the relevant statutory authority

or within any extensions of time as lawfully granted by

the relevant statutory authority.

3. Income disclosure

You must make a full, complete and accurate disclosure

of all income (including capital gains), turnover and

expenses required by any tax legislation.

4. Conduct during the Tax Audit

You agree to:

a. keep Us fully informed of all material matters about

the Tax Audit;

b. send Us copies of all correspondence about Your Tax

Audit within fi ve (5) working days of receiving them;

c. instruct Your accountants and solicitors to provide Us

with all relevant documents and information about

Your Tax Audit;


82

Employee means:

a. any person currently or formerly employed by You;

b. Your current and former directors and/or principals;

but excludes Independent Contractors, any employees

of Independent Contractors, any Contract Worker, any

Deemed Employee or any Temporary Worker.

Employment Practice(s) means any of the following

practices directed against Employees, Deemed

Employees, Contract Workers, Temporary Workers or any

applicant for employment:

a. wrongful refusal to employ an applicant for

employment;

b. wrongful failure to promote an Employee;

c. wrongful demotion, negligent evaluation, negligent

reassignment or wrongful or negligent disciplinary

action;

d. wrongful termination of employment, including

constructive dismissal;

e. unlawful workplace harassment or discrimination;

and/or

f. oral or written publication of material that slanders,

defames or libels an Employee or violates or invades

an Employee’s right of privacy.

Hovercraft means any vessel, craft or device made or


atmosphere or water on a cushion of air provided by

a downward blast.

Independent Contractor means any person who is

engaged by You to perform a contract for services.

Official Investigation means an offi cial investigation,

inquiry or examination by any statutory authority

empowered to investigate Your Marine Business.

Official Investigation Costs means reasonable costs,

charges and expenses of legal representation necessarily

incurred by a Director or Offi cer with Our consent for any

legally compellable attendance by the Director or Offi cer

at an Offi cial Investigation.

Subsidiary means subsidiary as defi ned in section 46 of

the Corporations Act 2001.

Temporary Worker means a person whom You employ to

substitute for a permanent Employee on leave or to meet

seasonal or short-term workload conditions.

Wilful or Wilfulness means acting with intentional or

reckless disregard for the consequences of the act or

failure to act.

Section Thirteen – Occupational LiabilityThe CoverWhere this Section is shown as insured on the Schedule,

We will indemnify You in accordance with the Insuring

Clauses and these terms.

This Section is offered on a ‘claims made and notifi ed

basis’. This means that this Section will only respond

to Claims fi rst made against You, and which You notify

Us of, during the Period of Insurance. To the extent

permitted by law, We will not pay for any Claim that You

notify Us of after the Period of Insurance has expired.

Defi nitions

Aircraft means any vessel, craft or device made or

intended to fl y or move in or through the atmosphere or

space.

Back Pay means the amount You are legally liable to pay

to Your Employee arising from an order of reinstatement

or re-employment. Back pay is limited to the amount

You are legally liable to pay Your Employee for the period

between the time of termination of the Employee’s

employment, and the time the Employee is reinstated or

re-employed.

Claim means a:

a. written or verbal demand for compensation;

b. civil proceeding seeking compensation or Damages;

or

c. summons or other statutory notice legally compelling

attendance by a Director or Offi cer at an Offi cial

Investigation.

Contract Worker means a person engaged by You through

a labour hire fi rm under an agreement between You

and the labour hire fi rm, to perform duties related to the

conduct of Your Marine Business. Contract Worker does

not include a Temporary Worker.

Costs and Expenses means all reasonable legal and other

costs and expenses and Offi cial Investigation Costs

necessarily incurred in the investigation, defence or

settlement of any Claim.

Deemed Employee means any person deemed to be an

Employee under any law.

Director(s) or Officer(s) means any person who is,

during the Period of Insurance, or was, at the time of the

Wrongful Act that gave rise to a Claim, Your director,

offi cer, principal, executive, manager, Employee or other

person concerned with or taking part in the management

of Your Marine Business.


83

We will not pay for:

a. any amount You are obliged to pay pursuant to

statute, award, contract of employment or other

implied or express obligation, except Back Pay;

b. relief or recovery for other than monetary amounts;

c. any order, award or agreement requiring You to make

a payment calculated by reference to or arising out

of the unexpired portion of a fi xed term or fi xed task

contract of employment.

Limit of IndemnityThe Limit of Indemnity is the amount stated in the

Schedule for each Insuring Clause. This is the maximum

We will pay for any one Claim made during the Period

of Insurance for each Insuring Clause. The Limit of

Indemnity is inclusive of all Costs and Expenses and any

costs and expenses awarded against You.

The Aggregate Limit of Indemnity for each Insuring

Clause is the maximum We will pay in respect of all

Claims made during the Period of Insurance for that

insuring clause. The aggregate Limit of Indemnity

for each Insuring Clause is equal to twice the Limit of

Indemnity for that Insuring Clause.


Additional benefi t

1. Costs And Expenses

As part of the Limit of Indemnity, We will pay the Costs

and Expenses that We incur or that You incur with Our

written permission.

2. Employee dishonesty

In respect of Insuring Clause 2 – Errors and Omissions,

Specifi c exclusion 11, Dishonesty will not apply to

the advice, acts, omissions and breaches of Your

Employees, consultants, contractors and agents if

You can demonstrate that You, and/or Your Directors,

Offi cers, shareholders and principals, had no knowledge

of and were not complicit in nor condoned the relevant

Wrongful Act. The most We will pay for this Additional

benefi t will be $250,000. It forms part of the Limit of

Indemnity and is not in addition to it.

Optional benefi t

1. Insolvent Trading

When the Schedule shows that this Optional benefi t

is operative, Specifi c exclusion 39. Insolvent trading is

deleted and will not operate.

Wrongful Act means:

a. for Insuring Clause A – Directors and Offi cers, any act,

error, omission, neglect, breach of duty, misstatement

or misleading statement.

b. for Insuring Clause B – Errors and Omissions, any act,

error, omission or breach of the Trade Practices Act or

similar legislation enacted in each state or territory.

Insuring Clause A – Directors and Offi cersWhere this Cover is shown as insured on the Schedule,

We will:

1. Directors, offi cers and company reimbursement

a. indemnify Your Directors or Offi cers for all sums

which they are legally liable to pay; and

b. reimburse You for amounts for which You have

indemnifi ed Your Directors or Offi cers as permitted or

required;

as compensation for any Claim that is fi rst made against

Your Directors or Offi cers, and notifi ed to Us, during the

Period of Insurance for a Wrongful Act committed or

alleged to have been committed in the conduct of their

duties to Your Marine Business.

2. Offi cial Investigation

pay for the Offi cial Investigation Costs where the notice

of the Offi cial Investigation was fi rst served upon You or

Your Directors or Offi cers, and notifi ed to Us, during the


Insuring Clause B – Errors and OmissionsWhere this Cover is shown as insured on the Schedule,

We will indemnify You for all sums which You are legally

liable to pay as compensation for any Claim (including

but not limited to Damages, judgments and settlements)

that is fi rst made against You, and notifi ed to Us, during

the Period of Insurance in respect of a Wrongful Act

committed or alleged to have been committed in the

conduct of Your Marine Business.

If a Claim is admissible under both Insuring Clause A

– Directors and Offi cers and Insuring Clause B – Errors

and Omissions, We will admit the Claim under Insuring

Clause B – Errors and Omissions only.

Insuring Clause C – Employment Practices LiabilityWhere this Cover is shown as insured on the Schedule,

We will indemnify You for all sums which You are legally

liable to pay as compensation for any Claim that is fi rst

made against You, and notifi ed to Us, during the Period

of Insurance, by an Employee alleging an Employment

Practice.


84

8. Known Claims

made, threatened or intimated against You prior to the


9. Known circumstances

arising from or directly or indirectly attributable to or in

consequence of any fact or circumstance:

a. for which written notice has been given, or could

reasonably have been given, under any other policy;

or

b. of which You fi rst became aware prior to the Period of

Insurance and which You knew or ought reasonably

to have known might give rise to a Claim of the kind

covered under this Section.

10. Changed operations

directly or indirectly based on an Employment Practice

that occurs on or after a requirement for physical

modifi cations to Your Premises, fi xtures, fi ttings, plant or

equipment, or changes to Your usual business operations.

11. Dishonesty

arising directly or indirectly out of, or in any way

connected with:

a. any dishonest, fraudulent, criminal, illegal or

malicious advice, act, error or omission;

b. any advice, error, act or omission committed with a

reckless disregard for the consequences thereof;

c. any Wilful breach of any statute, regulation,

governmental order, order or award of any court or

tribunal, contract or duty;

by:

d. You or any of Your Directors and Offi cers,

shareholders or principals;

e. Your Employees, consultants, contractors or agents;

where such act, error, omission, advice, violation or

breach is established in fact.

For the purpose of this Specifi c exclusion, the conduct

of one person shall not be imputed to any other person.

12. Defamation

based on or arising directly or indirectly from

defamation, except in respect of a Claim under Insuring

Clause C – Employment Practices.

13. Molestation

based on or arising directly or indirectly from the sexual

molestation of, interference with or harassment of

any person (whether a minor or an adult) by You, any

Director or Offi cer, contractor, Employee or any person

performing volunteer or paid services for You or on

Your behalf.

Specifi c exclusionsWe will not pay in respect of any Claim:

1. Jurisdiction

brought in a court of law or arbitral tribunal outside

of Australia.

2. Territorial limit

where the relevant Wrongful Act or Employment Practice

was committed or is alleged to have been committed

outside of Australia.

3. Assumed duty or obligation

based on or arising directly or indirectly out of any

liability, duty or obligation assumed under any contract

or agreement, but this Specifi c exclusion does not apply

to liability that would have been implied by law in the

absence of such contract or agreement.

4. Workers Compensation and CTP

arising directly or indirectly from liability ordinarily

insured or insurable under any statutory workers

compensation insurance, scheme or fund or compulsory

third party motor vehicle insurance.

5. Other legislation

based on or arising directly or indirectly from any liability

or obligation under:

a. laws relating to occupational health and safety;

b. laws concerning procedural and notifi cation

requirements in the case of termination of

employment due to redundancy;

c. laws relating to contracts alleged to be harsh, unfair,

unconscionable or contrary to public interest.

6. Family members and related companies

brought or maintained by, or on behalf, or for the

benefi t, of:

a. You or Your Family Members; or

b. any director, principal, shareholder or proprietor

or their Family Members; or

c. companies which have more than 10% of their

shares owned, or benefi cially owned, or managed

or controlled by any individual described in Clause a.

or b. above.

7. Fines and penalties

arising directly or indirectly from the penal or criminal

provisions of any law, nor will We pay for fi nes, penalties

or liquidated Damages or any portion of a judgment,

settlement or award that represents aggravated, punitive

or exemplary Damages.


85

21. Aircraft and Hovercraft




b. any of Your products which are incorporated into the



22. Trading debts

based on or arising directly or indirectly from any trading

debt or business liabilities incurred by You or any

guarantee given by You for a debt.

23. Breach of contract

based on or arising directly or indirectly from any

breach of contract, warranty (other than a warranty of

authority), guarantee or indemnity, unless such duty,

obligation or liability would have existed in the absence

of contract, warranty, guarantee or indemnity.

24. Superannuation trustees liability

based on or arising directly or indirectly from any actual

or alleged violation or breach of the responsibilities,

obligations or duties owed by any Director or Offi cer as

fi duciaries, trustees, administrators or other persons

charged with duties relating to any superannuation,

pension, profi t sharing, health and welfare or other

employee benefi t plan or trust established or maintained

for the purpose of providing pensions, annuities or any

other form of benefi ts to Your Employees or employees of

any other entity.

25. Personal profi t

based on or arising directly or indirectly from You or Your

Directors or Offi cers:

a. gaining in fact a personal profi t or advantage to

which they were not lawfully entitled; or

b. receiving remuneration to which they were not

lawfully entitled or to which the Director or Offi cer

was subsequently found not to be lawfully entitled.

26. Insider trading


Director or Offi cer having used or made available to

others information concerning the affairs of an entity

which was not generally available to a seller or purchaser

of securities in that entity, whether or not the Director or

Offi cer gained any benefi t.

14. Privacy, eviction, detention and prosecution

the invasion of rights of privacy (except in respect

of a Claim under Insuring Clause C – Employment

Practices), wrongful entry or eviction, false arrest,

false imprisonment, wrongful detention, malicious

prosecution or humiliation.

15. Assault

based on or arising directly or indirectly from any assault

or battery committed by You or at Your direction unless

committed for the purpose of preventing or eliminating

danger to persons or property.

16. Faulty workmanship

based on or arising directly or indirectly from any costs

or expenses incurred in performing, re-performing,

completing, re-completing, correcting or improving any

work or service undertaken or provided by You or on Your

behalf.

17. Outside fi nancing arrangements


fi nancing or credit arrangement (whether by way of

loan, lease, hire purchase or otherwise) in respect of any

property unless:

a. You are or were the owner or Bailee of such property;

and

b. the arrangement is or was in relation to the sale of

such property by You.

18. Agency activities

based on or arising directly or indirectly from Your failure

to correctly follow the credit acceptance or underwriting

procedures specifi ed by a fi nancial institution or general

insurer. This Specifi c exclusion will not apply in the event

that You can demonstrate to Our satisfaction that Your

Employees and contractors have been inducted into and

regularly received further training in the credit acceptance

and underwriting procedures of those institutions.

19. Personal Advice

based on or arising directly or indirectly from You giving

Personal Advice in relation to a Financial Product.

“Personal Advice” and “Financial Product” have the same

meanings as defi ned by the Corporations Act 2001.


based on or arising directly or indirectly from property

which is owned by or leased or rented to You or property

in Your physical or legal control for which cover could be

obtained under any other Section of this Policy.


86

33. Pollution



release or escape of pollutants;

This Specifi c exclusion will not apply to liability for

injury or property Damage where such discharge,

dispersal, release or escape is caused by a sudden,

identifi able, unintended and unexpected happening

which takes place in its entirety at a specifi c time

and place;



of pollutants, whether or not any of the foregoing are



dispersal, release or escape of pollutants caused by

any products that have been discarded, dumped,

abandoned or thrown away by others; or

d. the actual, alleged or threatened discharge, dispersal,

release or escape of pollutants in the United States

of America or Canada or in any country to which the

laws of the United States of America or Canada apply.

34. Offi cial Investigations

based on or arising directly or indirectly from the

investigations of a regulator or external administrator if

You instigated or assisted in the investigation (other than

by legal compulsion) or the investigation was instigated

in Your name.

35. Retroactive Date


Wrongful Act or Employment Practice committed, or

allegedly committed, prior to the date for which You

were fi rst covered by insurance for such Wrongful Acts

and Employment Practices or such other date if shown

in the Schedule. This Specifi c exclusion will not apply if

‘unlimited’ is shown in the Schedule.

36. Death or injury

based on or arising directly or indirectly from any death,

injury, sickness, disability, disease, stress, emotional

distress, or the loss of, or Damage to, or loss of use of

tangible property. This Specifi c exclusion will not apply

to Insuring Clause B – Errors and Omissions or Insuring

Clause C – Employment Practices, in respect of emotional

distress.

37. Strike


lockout, strike, picket line, stand-down, related worker

replacement(s), or other similar actions resulting from

industrial disputes or negotiations.

27. Return of remuneration

based on or arising directly or indirectly from the return

by a Director or Offi cer (or any person or entity related or

associated with the Director or Offi cer) of remuneration,

whether the remuneration was paid or received with

or without the prior subsequent approval of Your

shareholders.

28. Prospectuses


disclosure or omission of information in any public

offering document, prospectus or information

memorandum prepared for the specifi c purpose of the

sale or purchase of equity in, or the raising of capital or

funds for, Your Marine Business.

29. Uninsured entities

based on or arising directly or indirectly from a Wrongful

Act or Employment Practice committed or alleged to have

been committed by You or Your Directors or Offi cers in

respect of any parent, Subsidiary, associated or related

organisation, unless it is shown as insured in the Schedule.

30. Subsidiaries


Wrongful Act in respect of a Subsidiary:

a. prior to Your acquisition of the Subsidiary; or

b. after Your disposal of the Subsidiary.

This Specifi c exclusion does not apply to Insuring Clause

C – Employment Practices.

31. Mergers and acquisitions


Wrongful Act or Employment Practice committed, or

allegedly committed, after You:

a. consolidate with or are merged into or with another

entity; or

b. become a Subsidiary of another entity.

32. Lodgement of documents


lodgement or non-lodgement of any business, legal,

accounting, fi nancial, government or statutory returns

found to contain unsupported or deliberately misleading or

misrepresented information or any return lodged outside

lodgement dates prescribed by the relevant authority.


87

Offi cers may elect to contest such a Claim. If You or Your

Directors or Offi cers make such election, Our maximum

liability in connection with such Claim will be the

amount for which the Claim could have been so settled

plus the Costs and Expenses incurred with Our written

consent up to the date of such election.

We shall not require You or Your Directors or Offi cers to

contest any Claim unless a senior counsel (appointed

by Us) advises that such Claim should be contested.

In determining such advice the senior counsel shall

take into consideration the economic viability of such

a course, the Damages and costs likely to be recovered

by the claimant, the prospects of a successful defence

and the likely Costs and Expenses. The cost of the senior

counsel’s advice is to be treated as being part of the Costs

and Expenses.

5. Confi dentiality

You, Your Directors or Offi cers must not disclose, either

personally or through any person or entity acting on Your

or their behalf or at Your or their direction, to any third

party:

a. the existence of Your Policy; or

b. the nature of the liability indemnifi ed; or

c. the Limit of Indemnity; or

d. the amount of premium paid.

However, You and Your Directors or Offi cers may disclose

the above matters to the extent that:

e. You or Your Directors or Offi cers are required to do so

by the law; or

f. We consent to the disclosure in writing.

6. Assignability

You and Your Directors or Offi cers must not assign Your

Policy, or any rights under Your Policy, without Our prior

written consent.

7. Severability

The Proposal takes effect as a separate Proposal for each

Director or Offi cer.

8. Imputation

Where more than one entity or person is insured under

Your Policy:

a. failure by You or a Director or Offi cer to comply with

any duty of disclosure; or

b. misrepresentation by You or a Director or Offi cer to

Us before Your Policy commences; or

c. failure by You or a Director or Offi cer to comply with

any term or condition of Your Policy,

38. Industrial disputes

based on or arising directly or indirectly from industrial

disputes, other than industrial disputes relating to

an unfair dismissal comprising an application by an

Employee on the basis that termination of employment

is harsh, unjust or unreasonable.

39. Insolvent trading

based on or arising directly or indirectly from Your

trading while insolvent or Your inability to pay debts as

and when they fall due. In respect of Insuring Clause C –

Employment Practices, We will not pay in respect of any

Claim made against You on or after the date You become

bankrupt, insolvent or are placed in administration.


1. Multiple Claims

All related or connected Wrongful Acts or Employment

Practices shall be deemed to jointly constitute a single

Wrongful Act or Employment Practice. If a single

Wrongful Act or Employment Practice results in more

than one Claim, all such Claims shall jointly constitute

one Claim for the purposes of this Section and only one

Excess and one Limit of Indemnity shall be applicable in

respect of such Claim.

2. Claims reporting

You must notify Us in writing of any Claim made against

You during the Period of Insurance and as soon as

practicably possible.

3. Conduct, defence and settlement

You and Your Directors or Offi cers agree not to settle

any Claim, incur any Costs and Expenses, make any

admission, offer or payment or otherwise assume

any contractual obligation with respect to any Claim

without Our written consent. Such consent shall not be

unreasonably withheld. We will not pay in respect of any

settlement, Costs and Expenses, admission, offer, payment

or assumed obligation to which We have not consented.

We shall be entitled at any time to conduct, in Your name

or the name of the Director or Offi cer, the defence or

settlement of any Claim and any recovery action.

We may, if We believe that any Claim will not exceed

the Excess, instruct You or Your Directors or Offi cers to

conduct the defence of the Claim. In such a situation, We

will still indemnify You and Your Directors or Offi cers in

accordance with the Basis of Settlement in respect of any

balance after such Excess has been paid.

4. Dispute as to contest/settlement

If We recommend settlement in respect of any Claim

and You or Your Directors or Offi cers do not agree that

such Claim should be settled, You or Your Directors or


88

If We cannot agree with You on allocation:

e. the dispute shall be submitted to a senior counsel

to determine a basis for allocation. In determining

the basis for allocation the counsel shall take into

consideration the factors contained in Clauses a.

to d. above. If We cannot agree with You upon the

appointment of senior counsel within a reasonable

time, counsel will be such person as the President of

the New South Wales Bar Association appoints;

f. We agree to advance the Costs and Expenses to You

or Your Directors or Offi cers that We consider are

covered by this Section until a different allocation

is resolved in accordance with Clause e. above or

otherwise. When the allocation is determined, it will

apply retrospectively.

13. Non aggregation of cover

The covers provided by Insuring Clause A – Directors and

Offi cers and Insuring Clause B – Errors and Omissions do

not aggregate and We will not pay more than the Limit of

Indemnity for Insuring Clause A – Directors and Offi cers

or Insuring Clause B – Errors and Omissions for any

Wrongful Act.

will not prejudice the right of any other entity or person

to indemnity under Your Policy. However, this Clause

only applies if:

d. the relevant entity or person is innocent of, and has

no knowledge of, such conduct; and

e. as soon as practicable after becoming aware of the

conduct, they notify Us of all facts relating to such

conduct.

9. Offi cial Investigation

We may elect at any time to appoint legal representatives

to observe or represent You or Your Directors or Offi cers

at an Offi cial Investigation.

10. Co-operation

You and Your Directors or Offi cers must, at Your or

their own expense, give Us and Our investigators and

legal representatives all information and assistance

which We or they require and cooperate fully with Us

and Our investigators and legal representatives in any

proceedings arising out of a Claim or in any Offi cial

Investigation, irrespective of whether or not indemnity

has been extended.

We will not pay anything if You and Your Directors or

Offi cers do not fully co-operate with Us as required.

11. Mitigation

You and Your Directors or Offi cers must, at Your own

cost, use all due diligence and do and concur in doing all

things reasonably practicable to avoid or diminish any

amount that We are liable to pay.

12. Allocation

If a Claim gives rise to both a loss and/or Costs and

Expenses which are covered under this Section and a loss

and/or Costs and Expenses which are not covered under

this Section, We will negotiate with You in good faith to

agree on a basis for allocation, taking into consideration

the relative legal exposures of, and relative benefi ts

obtained by, the parties to the Claim and also the matters

involved. In such negotiations, We and You shall take into

consideration factors such as (but not limited to):

a. whether the Claim is principally in relation to covered

or uncovered parties and matters;

b. the number of causes of action directed to covered

and uncovered parties and matters;

c. who derives the benefi t from the resolution of the

litigation and/or transaction; and

d. Your relative legal exposure, compared to that of the

uncovered parties.


89

d. Other Work

Should additional work be required to the Property

Insured, Transit will:

i. cease from the time it is lifted from the

Conveyance and placed on the ground or loading

dock immediately adjacent to the Conveyance

at the location where the additional work will be

carried out; and

ii. reattaches when the Property Insured is lifted

from the ground or loading dock immediately

adjacent to the Conveyance at the location where

the additional work will be carried out; and

iii. continue during its uninterrupted transportation

on the Conveyance until this location and will

continue until ending in accordance with c. above.

Defi ned Events

1. Fire, Collision and Overturning

Where “Fire, Collision and Overturning” is shown as

insured on the Schedule, the Defi ned Event will be:

fi re, Flood, lightning, earthquake, riots, strikes, civil

commotion, collision and/or overturning of the

Conveyance; or

2. Fire, Collision and Overturning and Theft

Where “Fire, Collision and Overturning and Theft” is shown

as insured on the Schedule, the Defi ned Event will be:

fi re, Flood, lightning, earthquake, riots, strikes, civil

commotion, collision and/or overturning of the

Conveyance or theft from the locked Conveyance

following forcible and violent entry; or

3. All Risks not excluded

Where “All Risks not excluded” is shown as insured on

the Schedule, the Defi ned Event will be:

any Event (not otherwise excluded in this Section under

“Specifi c exclusions” or under “General exclusions”

applicable to all Sections of the Policy or other general

conditions that apply to the Policy). If You have this cover,

Damage includes general average and salvage charges

adjusted or determined according to the contract of

affreightment and/or governing law or practice.

In respect of shipments in containers, provided

documentary evidence is produced to substantiate the

quantity loaded into a container, the fact that the

container’s seal is intact at unloading point shall not

invalidate claims of theft, pilferage, shortage and

non-delivery.

Where packages are not opened on arrival, any concealed

loss or Damage caused by an Event covered by this

insurance, which may become evident when the Property

Section Fourteen – TransitThe CoverWhere this Section is shown as insured in the Schedule,


Settlement if any of the Property Insured shown in the

Schedule under this Section is Damaged while in Transit

anywhere within the Territorial Limits by a Defi ned Event

as selected by You and shown on the Schedule occurring


If You import Property Insured from overseas, cover

under this Section will attach from the time You have

an insurable interest in the Property Insured on arrival

within the Territorial limits. We will pay for loss or Damage

caused by Defi ned Event 1, irrespective of whatever other

cover has been chosen and shown on Your Schedule.

Defi nitions

Conveyance means the Vehicle, Vessel, aircraft or train

by which the Property Insured is being transported.

Property Insured means Stock of Watercraft, stock of

general merchandise and Parts and Accessories, owned

by You or for which You have acquired an insurable

interest.

Transit means the period during which the Property

Insured is being transported by road, rail, Sea, air parcel

post or courier:

a. Commencement

starting from the time the Property Insured is lifted

from the ground or loading dock immediately

adjacent to the Conveyance at the warehouse or place

of storage; and

b. Journey

continuing during its uninterrupted transportation

on the Conveyance; and

c. Completion

ending once it has been lifted from the Conveyance

and placed on the ground or loading dock

immediately adjacent to the Conveyance at:

i. the consignee’s or other warehouse or place

of storage at the fi nal destination; or

ii. any other warehouse or place of storage other than

at the fi nal destination which You elect to use,

unless due to circumstances beyond Your control, the

contract of carriage or transit is terminated and the

Property Insured is left other than at a place described in

Clause a. or b. above, in which case this cover will remain

in force for a period of up to thirty (30) days at that place,

subject to prompt notice being given to Us.


90

2. Additional expenses

expenses that You necessarily and reasonably incur in

minimising or averting loss or Damage resulting from a

Defi ned Event that would otherwise be covered by this

Section. These expenses are payable in addition to any

amount recoverable under the Policy Section but Our

liability for this Additional benefi t shall be limited to the

amount of the loss or Damage avoided by incurring these

expenses.

3. Unloading, storage and forwarding

any extra charges reasonably incurred in unloading,

storing and forwarding Your Property Insured to the

original destination following a Defi ned Event. We will

only pay if the Limit of Indemnity per Conveyance is not

otherwise exhausted.

Optional benefi tThe following Optional benefi ts are operative only when


1. Diminished Value Allowance

Where a Watercraft is Damaged whilst in Transit and

covered under this Section and:

a. We agree that it must be sold for less than the

expected selling price; or

b. it is unavailable for sale for a period exceeding

fourteen (14) days,

We will pay You an additional 5% of the lesser of the Stock

Card value or the wholesale value at the time of Damage.

2. Institute Cargo Clauses

This Optional benefi t only applies to the extent that cover

is subject to the Marine Insurance Act 1909 (Cth). The

Basis of Settlement will be replaced by Institute Cargo

Clauses (A) 1/1/82, subject to:

a. Institute Replacement Clause 1/1/34 (CL. 161);

b. U.S.A. & Canada Endorsement for the Institute

Radioactive Contamination, Chemical, Biological,

Bio-Chemical and Electromagnetic Weapons

Exclusion Clause 10/11/03 – USCAN B 29/01/04;

c. Joint Excess of Loss Committee Information

Technology Hazards Clause 16/11/01, 2001/2003

(CL.365);

d. Institute Radioactive Contamination, Chemical,

Biological, Bio-Chemical and Electromagnetic

Weapons Exclusion Clause 10/11/03; and

e. Institute Cyber Attack Exclusion Clause 10/11/03.

Insured is unpacked, shall be recoverable under this

Section provided that:

a. the Property Insured is opened and inspected within a

period of ninety (90) days from the time the Property

Insured entered the warehouse or place of storage at

the destination named in the Policy; and

b. the packages show no outward signs of loss or

Damage at the time of entry into the warehouse

or place of storage.

In no case shall this cover any loss, Damage or expense

to the Property Insured while the Property Insured is in

storage other than on the Conveyance.

Basis of Settlement1. Where Property Insured has been Damaged and

cannot be repaired, We will pay:

a. for Watercraft: the Market Value of the Watercraft,

but not exceeding the Stock Card value;

b. for other Property Insured, stock of general

merchandise and Parts and Accessories: the

invoice value.

2. Where Property Insured has been Damaged and

can be economically repaired: We will pay the cost

necessary to reinstate or repair the Damaged property

to a condition substantially the same as, but not

better or more extensive than, its condition at the

time of the Damage.

For each category of Property Insured in Clauses 1. or

2. above, We will also pay the cost of freight where that

cost has not already been included in the calculated

settlement values.

Limit of IndemnityWe will not pay more than the Limit of Indemnity per

Conveyance shown in the Schedule for any one Event

subject to the Additional benefi ts.


Additional benefi tsWhen We have agreed to pay a claim following the

occurrence of a Defi ned Event, We will also pay for:

1. Debris removal

all costs and expenses incurred in unloading and/

or removal and/or disposal of the Property Insured

in addition to the Limit of Indemnity but subject to a

maximum of 10% of the Limit of Indemnity or $50,000,

whichever is the lesser. We do not cover costs and

expenses that are recoverable by You under any other

policy of insurance.


91



We will not pay for:

a. Money, jewellery, watches, furs, antiques, paintings,

works of art, precious metals, precious stones

or articles composed of any of them, explosives,

petroleum products in bulk or gas in bulk, livestock,

cigarettes, tobacco, wines, spirits or other alcoholic

beverages;

b. goods carried by You for payment or reward.


We will not pay for any loss, Damage, cost, or expense

arising directly or indirectly out of or in any way

connected with:

a. ordinary leakage, ordinary loss in weight or volume,

or ordinary wear and tear of the Property Insured;

b. insuffi ciency or unsuitability of packing or

preparation of the Property Insured (including

stowage in a container or lift-van, but only when such

stowage is carried out prior to the commencement of

cover under this Section by You or Your employees);

c. inherent vice or nature of the Property Insured;

d. delay, (including delays caused by a Defi ned Event,

other than amounts payable for general average

and salvage charges), loss of market, depreciation or

deterioration;

e. insolvency or fi nancial default of the owners,

managers, charterers, or operators of the Conveyance;

f. unseaworthiness of the Vessel or craft or unfi tness

of any other Conveyance, container or lift-van for the

safe carriage of the Property Insured.

We will pay if You are able to prove that You or Your

employees did not know of the unseaworthiness or

unfi tness of the Conveyance at the time the Transit

commenced;

g. capture, seizure, arrest, restraint or detainment

(piracy excepted), and the consequences thereof or

any attempted threat;

h. the Conveyance being driven by any person whose

faculties are impaired by any drug or intoxicating

liquor or by any person who is convicted of driving,

at the time the loss or Damage occurs, under the

infl uence of intoxicating liquor or by any person with

a percentage of alcohol in their breath or blood in

excess of the percentage permitted by law. However,

We will pay if You are able to prove that You did

not know that the driver of the Conveyance was

so affected;

i. theft unless there has been visible proof of forcible

and violent entry;

j. unexplained shortage or disappearance;

k. loss from an unattended Vehicle:

i. left overnight unless within securely locked

premises;

ii. otherwise, unless securely locked.


1. Claims Procedure

In the event of Damage to Property Insured under this

Section You and Your agents must:

a. claim immediately on the carrier;

b. give immediate notice to Us or Our agents;

c. not give clean receipts where goods are in doubtful

condition, except under written protest;

d. take such measures as may be reasonable to avert or

minimise such loss; and

e. ensure that all rights against carriers, Bailees or other

third parties are properly preserved and exercised.

2. Pairs and Sets

In the event of Damage to Property Insured forming part

of a pair or set (caused by a Defi ned Event), We will not

pay any more than the value of the part which is lost or

Damaged.

3. No cover for carrier

Cover will not be provided for the benefi t of the carrier or

other Bailee.

4. Waiver

Measures taken by You or by Us to save, protect or recover

the Property Insured will not be considered as a waiver or

acceptance of abandonment or otherwise prejudice the

rights of either party.

5. Action within reasonable time

You will act within a reasonable time with regard to all

circumstances within Your control.

6. Records

You will keep an accurate record of sales turnover and

allow Us reasonable access to inspect those records.


92

7. Constructive Total loss

We will not pay Your claim for constructive Total loss

unless the Property Insured is reasonably abandoned:

a. due to the actual Total loss appearing to be

unavoidable, or

b. the cost of completing the Transit of the Property

Insured (including recovery, reconditioning and

forwarding) would exceed the value of the Property

Insured on arrival.

8. General Average Clause

For the purpose of claims for general average

contributions and salvage charges recoverable

hereunder, the interest shall be deemed to be insured for

its full contributory value and irrespective of any Excess

or deductible.


For all enquiries please call your insurance intermediary

Allianz Australia Insurance Limited (Allianz)

AFS Licence No. 234708

ABN 15 000 122 850

2 Market Street Sydney NSW 2000

Telephone: 13 2664 POL5

55C

ML

01/1

6


L ENTITY / COMPANY IDENTIFICATION

This document is an SPDS that supplements and updates the Club Marine Business and Marina Operators Package Product Disclosure Statement and Policy Document (“PDS”) dated 21 De-cember 2015 and is issued by the insurer Allianz Australia Insurance Limited ABN 15 000 122 850 AFS Licence No. 234708 of 2 Market Street, Sydney NSW 2000. This SPDS must be read together with the PDS and any other current SPDS that You are given which updates or amends the PDS. The PDS is amended as follows:

Introduction

THE ‘COMPLAINTS – INTERNAL AND EXTERNAL COMPLAINTS PROCEDURE’ SECTION IS DELETED AND REPLACED AS FOLLOWS:

Complaints - Internal and external complaints procedure

If You are dissatisfied with Our service in any way contact Us and We will attempt to resolve the matter in accordance with Our Internal Dispute Resolution procedures. To obtain a copy of Our procedures, use Our contact details on the back cover. If You are not satisfied with Our decision or a decision is not reached within 45 days, You may lodge a complaint with an external dispute resolution scheme which is independent and free to You (subject to its relevant terms and rules) as follows:

The Australian Financial Complaints Authority:

Online: www.afca.org.au

Email: [email protected]

Phone: 1800 931 678

Mail: Australian Financial Complaints Authority GPO Box 3 Melbourne VIC 3001.

THE ‘FINANCIAL CLAIMS SCHEME’ SECTION IS DELETED AND REPLACED AS FOLLOWS: Financial Claims scheme

In the unlikely event Allianz Australia Insurance Limited were to become insolvent and could not meet its obligations under the Policy, a person entitled to claim may be entitled to payment under the Financial Claims Scheme. Access to the Scheme is subject to eligibility criteria. More infor-mation can be obtained from http://www.fcs.gov.au.

CLUB MARINE

SUPPLEMENTARY PRODUCT DISCLOSURE STATEMENT (SPDS) – BUSINESS AND MARINA OPERATORS PACKAGE Preparation date: 01 February 2019

http://www.fcs.gov.au/

http://www.fcs.gov.au/

THE FOLLOWING SECTION ‘TERRORISM INSURANCE ACT’ IS INCLUDED TO PAGE 8 OF THE PDS.

Terrorism Insurance Act

We have determined that the Policy (or part of it) is a policy to which the Terrorism Insurance Act 2003 (Cth) (“Act”) may apply. We may elect to reinsure part or all of Our liability under the Act with the Commonwealth Government reinsurer, the Australian Reinsurance Pool Corporation (ARPC).

As a consequence, We may be required to pay a premium to ARPC and that amount (together with the cost of that part of the cover provided by Us and administrative costs associated with the Act) is reflected in the premium charged to You. As with any other part of Our premium, it is sub-ject to government taxes and charges.

For further information contact Us or the intermediary.

General definitions

A NEW DEFINITION OF “ACT OF TERRORISM” IS ADDED AS FOLLOWS: “Act of Terrorism” means any act, or preparation in respect of action designed to influence the government de jure or de facto of any nation or any political division thereof, or in pursuit of politi-cal, religious, ideological or similar purpose to intimidate the public or a section of the public of any nation by any person or group(s) of persons whether acting alone or on behalf of or in con-nection with any organisation(s) or government(s) de jure or de facto, and which: a. involves violence against one or more persons; or b. involves Damage to property; or c. endangers life other than that of the person committing the action; or d. creates a risk to health or safety of the public or a section of the public; or e. is designed to interfere with or to disrupt an electronic system.

General exclusions

GENERAL EXCLUSION - 5. TERRORISM IS DELETED AND REPLACED AS FOLLOWS: 5. Terrorism

The following exclusions apply to the extent permitted by law (including but not limited to as provided under the Terrorism Insurance Act 2003 (Cth)) notwithstanding any provision to the contrary within this Policy or any endorsement to it:

The Policy excludes and does not cover death, injury, illness, loss, Damage, destruction, liability, cost or expense directly or indirectly caused by, contributed to by, resulting from or arising out of or in connection with:

(i) any Act of Terrorism; (ii) any action in controlling, preventing, suppressing, retaliating against, or responding to

any Act of Terrorism;

(iii) biological, chemical, nuclear or radioactive contamination, pollution, weapons or ex-plosion arising from an Act of Terrorism;

(iv) non-material damages or non-physical damages of any kind arising from or in any way connected with an Act of Terrorism; or

(v) any threat of an Act of Terrorism,

regardless of any other cause or event contributing concurrently or in any other sequence to the loss.

Club Marine - Allianz

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