iNduStrial SPecial PlaNt (iSP) - UAA · iNduStrial SPecial PlaNt (iSP) Product Disclosure Statement...

iNduStrial SPecial PlaNt (iSP)Product Disclosure Statement and Policy wording

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Date of preparation: 31 August 2011Date effective: 31 August 2011QM2003-0811

PART 1 – PRODUCT DISCLOSURE STATEMENT

A. About this bookletThis document is a Product Disclosure Statement (PDS) and Insurance Policy Wording.

If the Insured is :

• A small business with less than 20 employees, or amanufacturerwithlessthan100employees;and

• requestingcoverforMotorVehicleswithacarryingcapacityoflessthan2tonne(whetherforpersonalorbusinessuse);

thisbookletbecomesaProductDisclosureStatementforthatpart of the insurance.

TheinformationprovidedinthisbookletisdesignedtoassisttheInsuredmakeaninformeddecisionabouttheirinsuranceneeds. Important Notices contains information you need to knowbeforetakingoutaPolicyincludingthecost,theInsurersdispute resolution system and cooling off rights. The Policy Wordingdetailsallthebenefits,terms,conditionsandexclusionsrelatingtothePolicy.IfweissueyouwithaninsurancePolicy,youwillbegivenaPolicySchedule.ThePolicySchedulesetsout the specific cover selected by you and should be readtogetherwiththePolicyWording.

Other documents may form part of the PDS. Any such documents willbedatedandwillincludeastatementidentifyingthemaspartofthePDS.Ifanymajoromissions,updatesorcorrectionsneedtobemadetothePDSaSupplementaryPDSmaybeprovided.IneithercasetherelevantdocumentwillbeprovidedtotheInsuredwiththePDS.

The Policy Wording and the Policy Schedule forms the legal contract between the Insured and Insurer, so please keeptheminasafeplaceforfuturereference.IfyourequirefurtherinformationaboutthisproductpleasecontactyourFinancialServices Provider.

B. Who provides this insuranceThePolicyisunderwrittenbyQBEInsurance(Australia)Limited(QBEAustralia),ABN78003191035,AFSLicenceNo.239545of82PittStreet,Sydney.

ThisPolicyisarrangedbyUnderwritingAgenciesofAustraliaPty Limited (UAA), ABN 86 003 565 302, AFS LicenceNo.238517of175ScottStreetNewcastle.

In arranging this Policy UAA are acting under an authoritygiventoitbyQBE.ItwillbeactingastheagentofQBEnotas agent for the Insured.

PART 1 – PRODUCT DISCLOSURE STATEMENT 1

A. Aboutthisbooklet 1

B. Whoprovidesthisinsurance 1

AboutQBEAustralia 2

AboutUAA 2

C. Important Information 2

PART 2 – POLICy WORDINg 5

A. GeneralSection 5

B. GeneralDefinitions 5

C. GeneralExclusionsforSections1to7 7

D. GeneralExclusionsforSections1to5 8

E. GeneralExclusionsforSections6and7 9

F. GeneralConditions 11

SECTION 1 – DAMAgE 14

A. TheCover 14

B. TheIndemnity 14

C. AdditionalBenefit 14

SECTION 2 – HIRED-IN PLANT (LIABILITy TO OWNER) 14

A. TheCover 14

B. TheIndemnity 15

C. AdditionalBenefit 15

D. DefinitionsforSection2 15

SECTION 3 – ADDITIONAL BENEFITS 16

AdditionalBenefitsapplyingto Sections1and2automatically 16

AdditionalBenefitapplyingtoSection1automaticallyandtoSection2onlyifshown intheSchedule 17

AdditionalBenefitsapplyingto Section1or2onlyifshownintheSchedule 17

SECTION 4 – FINANCIAL PROTECTION 18

A. The Cover 18

B. TheIndemnity 19

C. DefinitionsforSection4 20

SECTION 5 – BREAKDOWN 20

A. The Cover 20

B. TheIndemnity 20

SECTION 6 – ROAD RISK 20

A. The Cover 20

B. LimitsofIndemnity 20

C. AdditionalBenefits 20

D. Exclusions 22

SECTION 7 – BROADFORM LIABILITy 22

A. The Cover 22

B. LimitsofIndemnity 22

C. AdditionalBenefits 23

D. Exclusions 23

Index Page

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About QBE AustraliaQBE Insurance (Australia) Limited is amember of theQBEInsuranceGroup(ASX:QBE).QBEInsuranceGroupisAustralia’slargestinternationalgeneralinsuranceandreinsurancegroup,andoneofthetop25insurersandreinsurersworldwide.Thecompany has been operating in Australia since 1886 andcontinues to provide industry-leading insurance solutions that are focused on the needs of intermediaries and their clients. QBEisahouseholdnameinAustralianinsurance,backedbysizeableassets,andwell knownasastrongand financiallysecure organisation

About UAAUAAisoneofAustralia’sleadingspecialistunderwritingagenciesformobileplantandconstructionequipment.Thecompanythat is now UAAwas founded in 1972 in Newcastle NSWwhere our current head office and administration centre islocated.InsupportofourAustraliawideclientbase,wehaveadditional offices located in Brisbane, Sydney,Melbourne,Adelaide and Perth.

UAAbecameanunderwritingagencyin1988andasof1July2008,UAAisamajorityownedsubsidiaryofQBEInsuranceGroup.UAA’sfocusisondevelopinglongtermrelationshipsbuiltonmutualrespect,trustandreliability.

C. Important Information1. The Policy: Contents and Structure

(a) ThetermsofthecontractofinsurancebetweentheInsurer and the Insured are recorded in thePolicy,whichismadeupof:

(1) thePolicySchedule;

(2) the parts of the General Section and other Sections in thisdocument indicatedby theScheduleasbeingincludedinthecontractofinsurance;

(3) theEndorsements;and

(4) theImportantNoticesintheProposal.

(b) Sections1,2,4,5,6and7eachcontainatleasttwosub-sections:

(1) TheCover–whichdefineswhatthingsandeventsareinsured;and

(2) The Indemnity or Limits of Indemnity – whichexplainswhatandhowmuchtheInsurerwillpay.

(c) Section 3 contains Additional Benefits relevant toSections 1 and 2.

(d) TheInsurershallnotbeliabletoindemnifytheInsuredunderSection4(ConsequentialLoss)unlesstheInsuredconcurrentlyholdsDamagecoverunderSection1,BreakdownDamagecoverunderSection5oranothercontractof insuranceprovidingcoverequivalent toSection1orSection5.

(e) TheInsurershallnotbeliabletoindemnifytheInsuredunderaSectionthatisnotshownintheScheduleasincluded in the Policy.

Part 1 – (PDS)

2. Significant Benefits and Features

Damage Covers sudden and unforeseen physical loss or Damage to a Machine during the Period of Insurance

Hired-In Plant (LiabilitytoOwner)

CoverstheInsuredforliabilitytotheownerofahiredMachineforsudden and unforeseen physical loss or Damage during the Period of Insurance.

FinancialProtection

Covers the Insured for ConsequentialLossthatoccursduring the Indemnity Period if a Machine suffers Damage or BreakdownDamagecausingInterruption.

Breakdown CoversBreakdownDamagethatoccurs in a Machine during the Period of Insurance.

RoadRisk CoversLegalLiabilityforPropertyDamage arising from a Machine beingusedasaRoadVehicleduring the Period of Insurance.

BroadformLiability CoversLegalLiabilityforPersonalInjury,PropertyDamageandAdvertisingInjurycausedbyanOccurrenceinconnectionwiththeBusiness.

3. Duty of Disclosure – What the Insured must tell the Insurer

Beforeyouenterintoacontractofgeneralinsurancewithan Insurer, the Insuredhasaduty,under the InsuranceContracts Act 1984 to disclose to the Insurer certaininformationneededbythe Insurer todecidewhether toinsuretheInsuredandanyoneelsetobe insuredunderthePolicyandonwhatterms.TheDutyofDisclosureisdifferentdependingonwhetherthisisanewPolicyornot.

New business

Where the Insured is entering into this Policy for the first time(thatis,itisnewbusinessandisnotbeingrenewed,varied,extendedorreinstated)theInsuredmusttelltheInsurereverythingtheyknowandthatareasonablepersoninthecircumstancescouldbeexpectedtotelltheInsurer,inanswertothespecificquestionstheInsurerasks.WhenansweringthesequestionstheInsuredmustbehonest.

Who needs to tell the Insurer

It is important to understand the Insured answers theInsurersquestionsinthiswayfortheInsuredandanyoneelsetobecoveredbythePolicy.

Non-Disclosure

IftheInsuredfailstocomplywiththeirDutyofDisclosure,theInsurermaybeentitledtoreduceitsliabilityunderthecontract in respect of a claim or may cancel the policy. If theInsuredanswerstheInsurersquestionsfraudulently,theInsurer may also have the option of avoiding the contract fromthebeginning.

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Renewals, variations, extensions and reinstatements

Once the Policy is entered into and is no longer newbusinessthentheInsured’sdutytotheInsurerchanges.TheInsuredisrequiredbeforethecontractisrenewed,varied,extendedorreinstated,totelltheInsurereverythingtheyknowandthatareasonablepersoninthecircumstancescouldbeexpectedtoknow,thatisrelevanttotheInsurer’sdecisiononwhethertoinsuretheInsuredandanyoneelsetobeinsuredunderthePolicy,andifso,onwhatterms.

You do not have to tell the Insurer about any matter

– thatdiminishestherisk;

– thatisofcommonknowledge;

– thattheInsurerknowsorshouldknowintheordinarycourseofOurbusinessasanInsurer;or

– whichweindicatewedonotwanttoknow.

Non-Disclosure

IftheInsuredfailstocomplywiththeirDutyofDisclosure,theInsurermaybeentitledtoreduceitsliabilityunderthecontract in respect of a claim or may cancel the policy. If theInsuredanswerstheInsurersquestionsfraudulently,theInsurer may also have the option of avoiding the contract fromthebeginning.

4. Changes to the Insured’s circumstances

The InsurancePolicy isbasedonwhat the Insuredhastold the Insurer. If something changes, please contactyour Financial Services Provider to ensure your coverremains unaffected.

TheInsurermustbenotifiedofanythingthatchangesthevalueofyourassetsoraboutachangetoyourbusiness.WhenyoutelltheInsurerofanychangestoyourbusinessyouwillbeissuedwitharevisedPolicyScheduleandyoumaybeaskedtopayadditionalpremium.IftheInsuredfails toadvise the Insurerofall changes,unfortunately,yourpolicymaynotprovidethecoveryouneedandwemay not pay part or all of a claim.

5. The cost of this insurance Policy

The total Premium is the amount the Insured is charged forthisinsurancePolicy.Itincludestheamountwhichhasbeencalculatedfortheriskandthetaxesandgovernmentchargesapplicable.ThePremiumandtaxesandgovernmentchargeswillbeshownonthePolicySchedule.

Whencalculating thePremiumanumberof factors aretakenintoaccount.TheseandthedegreetowhichtheyaffectyourPremium,willdependontheinformationyougivetous.ThekeyfactorsthatimpactPremiuminclude:

(a) thetypeofBusinesstheInsuredoperatesandwhichsectionsyouelecttotakecoverunderandtheSumInsuredthatisrelevanttoyourBusiness.Inaddition,your claims history may also impact the Premium.

(b) iftheInsuredelectstohaveahigherorlowerExcesswherethisisanoption.

(c) For plant and equipment,mobileMachines, staticMachinesandMotorVehiclesthetype,age,locationanduseoftheseMachinesand/orMotorVehicles,alongwiththeageandexperienceoftheoperatorordriver may impact on the Premium.

(d) ForBroadformLiabilitytheturnoveroftheBusiness,thenumberofstaff,wageroll,engagementofcontractorsand/orlabourhirepersonnelmayimpactthePremium

6. Overdue Premium

TheInsuredmustpaythePremiumontimeotherwisethePolicymaynotoperateandtherewillbenocover.

7. Paying your annual Premium

The Insuredmust pay the annual Premium by the duedatetoyourFinancialServicesProvider.IfyourPremiumisunpaidbythisdateoryourpaymentisdishonouredthisPolicywillnotoperateandtherewillbenocover.

8. Cooling-off information

The Insured may return an insurance Policy after the decision tobuy it, thePolicymaybecancelledand fullrefund received. To do this the Insured should notify the FinancialServicesProviderelectronicallyorinwritingwithin21 days from the date the Policy commenced.

This cooling-off right does not apply if the Insured has madeorisentitledtomakeaclaim.Evenafterthecooling-offperiodends, the Insuredstillhascancellation rightshowevertheFinancialServicesProvidermaydeductcertainamounts from any refund for administration costs or any non-refundabletaxes.

If the Insured’sPolicy is foranevent thatwillstartandfinishwithin the 21 day cooling-off period, the Insuredcanonlyexercisetherightbeforetheeventstartsortheexpiryofthecooling-offperiod,whicheveristheearlier.

9. Average

(a) ImportantNotice5intheProposalnotifiedtheInsuredabout‘Average’,whichistheconsequenceofunder-insurance(seeGeneralConditionF.1).

(b) InSections1,2and5,the‘Average’formulaapplieswhere theSum Insured for the relevantMachine islessthan90%of itsMarketValuecalculatedatthetime of Damage.

10. Excess

AnExcessistheamounttheInsuredmayberequiredtopayifaclaimismade.TheexcessesapplicablearesetoutinthePolicySchedule.AnyadditionalexcessesareshowninPart2,TermsandconditionsofthisPolicywording.

The Insuredmayhave theoption to reduce theExcesspayableintheeventofaclaimbypayingahigherPremium,orelecttopayahigherExcessintheeventofaclaimandpayalowerPremium.PleasediscusstheseoptionswithyourFinancialServiceProvider.

Part 1 – (PDS)

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11. Payment of Excess

IntheeventofaclaimunderSection6or7,theInsuredisrequiredtopaytheExcesstoUAAwithin14daysafterbeingrequestedtodoso.

12. Time limits in calculation of entitlements in Sections 2 and 4

Before there is any entitlement to indemnity for HiringChargesinSection2(Hired-InPlant)andforConsequentialLossinSection4(FinancialProtection)theperiodofdaysofcontinuouspreventionofor interferencewithnormaluseoftheMachineshownintheSchedulemustelapsefollowingtheDamageorBreakdownDamage.

13. Safety Precautions and Procedures

(a) ThisPolicyconcernsmachinerywhoseoperationishazardous.GeneralConditionF.2imposesobligationsontheInsured,itsEmployeesandagents,includinganobligationtocomplystrictlywith:

(1) manufacturers’anddistributors’recommendationsandguidelines;and

(2) systems and procedures imposed or recommended bylaw,internationalstandards,AustralianStandardsandindustrystandards;

forservicing,maintaining,usingandoperatingMachines.

(b) IfDamageresults froma failure tocomplywith theobligationsreferredtoin13(a)above,theInsurermaybeentitledunderGeneralConditionF.2andGeneralExclusionD.2torefusetopaytheindemnityagainstthat Damage or to significantly reduce the amount thattheInsurerwillpay.

(c) SomeexclusionsdonotapplyiftheInsuredsatisfiesthe Insurer that the Insured has compliedwith therecommendations,guidelines,systemsandproceduresandtakenstepstoavoidDamageoccurring.

14. Interests of Third Parties

Theinterestsofthirdparties(e.g.financiers,lessors,etc.)inMachinesarenotcoveredbythePolicy(excepthirers,underAdditionalBenefits7and15inSection3).However,if in the Proposal the Insured has identified third party intereststobecoveredandtheyarenotedassuchintheSchedule,theymayhaverightsunderSections1to5.

15. How Goods and Services Tax (GST) affects any payments made by the Insurer

TheInsurerwill reducetheGSTamountpayablebytheamountofanyInputTaxCredittowhichtheInsuredisorwouldbeentitledifarelevantacquisitionismade.Inthesecircumstances, the Input Tax Creditmay be claimablethroughtheInsured’sBusinessActivityStatement(BAS).

The Insured must advise the Insurer of their correct Australian BusinessNumberandTaxablePercentage.

16. How to make a claim

PleasecontactyourFinancialServicesProvidertomakea claim. The Insurer will only accept responsibility forrepairsorpaymentstothirdpartiesunderaclaimwheretheInsuredhastoldusaboutthembeforehandandyourclaimhasbeenaccepted.Fulldetailsofwhatyoumustdo for the Insurer to consider your claim are listed under General Conditions F.4 Claims procedure and F.5 Co-operation in claims of this Policy.

17. Privacy

UAAiscommittedtoprotectingtheprivacyofpersonalinformationinaccordancewiththePrivacyAct1988(Cth).UAA’s privacy principles, set out at www.uaa.com.au,explainwhatpersonal information iscollected from theInsured,why it is collected, how itwill be used and towhomitcanbedisclosed.

SeethefullUAAPrivacyStatementatwww.uaa.com.auortheInsurer’sPrivacyPolicyatwww.qbe.com.

18. General Insurance Code of Practice

The Insurer is a signatory to the General Insurance Code of Practice. The Code aims to:

• promotemore informed relations between insurersandtheircustomers;

• improveconsumerconfidenceinthegeneralinsuranceindustry;

• provide better mechanisms for the resolution ofcomplaintsanddisputesbetweeninsurersandtheircustomers;and

• commitinsurersandtheprofessionalstheyrelyuponto higher standards of customer service.

19. Dispute resolution

The Insurer will do everything possible to provide aquality service to the Insured. However, we recognizethatoccasionallytheremaybesomeaspectofourserviceoradecisionwhichwehavemadethatanInsuredmaywishtoqueryordrawtoourattention.

The Insurer has a Complaints and Dispute Resolution ProcedurewhichundertakestoprovideananswertoanInsured’scomplaintwithin15workingdays.

TomakeacomplaintoraccesstheInsurer’sinternaldisputeresolutionservice,pleasecontactUAAorthenearestQBEofficeandasktospeaktoadisputeresolutionspecialist.

Where the Insured is a small business, and not happywith the Insurers answer, or it has takenmore than 15workingdaystorespond,the InsuredmayhaveaccesstotheFinancialOmbudsmanService(FOS).FOSresolvescertaininsurancedisputesbetweenconsumersandinsurersandwillprovideanindependentreviewatnocosttotheInsured.TheInsurerisboundbythedeterminationoftheFOS but the determination is not binding on you. ThecontacttelephonenumberandaddressofFOSisavailableuponrequest.

Part 1 – (PDS)

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20. Financial Claims Scheme

ThisPolicyisaprotectedPolicyundertheFinancialClaimsScheme(FCS),whichprotectscertainInsured’sandclaimantsintheeventofanInsurerbecominginsolvent.Intheunlikelyevent of QBE becoming insolvent the Insuredmay beentitledtoaccesstheFCS,providedthe Insuredmeetstheeligibilitycriteria.MoreinformationmaybeobtainedfromAPRA-www.apra.gov.auor1300131060.

21. Cancelling the Policy

How the Insured may cancel this Policy

• The Insuredmay cancel this Policy at any time bytellingtheInsurerinwritingthatyouwanttocancelit.YoucandothisbygivingthenoticetoyourFinancialServices Provider.

• WheretheInsuredinvolvesmorethanoneperson,thePolicywillonlybecancelledwhenawrittenagreementto cancel the Policy is received from all persons named as the Insured.

How the Insurer may cancel this Policy

• The Insurer may cancel this Policy in any of thecircumstances permitted by law by informing theInsuredinwriting.

• TheInsurerwillgivetheInsuredthisnoticeinpersonorsendittotheaddresslastknowntous.

The premium

TheInsurerwillrefundtotheInsured80%oftheproportionof the Premium for the remaining Period of Insurance. A refundwillnotbegivenwheretheunusedportionofyourPremium is $10 or less.

PART 2 – POLICy WORDINg

A. general SectionIn consideration of the Insured’s payment of the PremiumtotheInsurer,theInsureragreestoindemnifytheInsuredinaccordancewiththetermsofthePolicy.

B. general DefinitionsAdvertising Injury means:

1. defamation;

2. infringementofcopyright,titleorslogan;

3. infringementoftrademarkorservicemark;

4. unfaircompetitionormisappropriationofadvertisingideasorstyleofdoingbusiness;or

5. invasionofprivacy;

inanypublicadvertisementorarisingoutofadvertisingactivitiesbyorfortheInsuredfororinthecourseoftheBusiness.

Australian Dangerous Goods Code means the edition of the AustralianCodefortheTransportationofDangerousGoodsbyRoadandRail(oritsequivalent)thatiscurrentatthetimeofan Occurrence causing Property Damage or Personal Injury.

Breakdown Damage means the sudden and unexpectedbreaking,distortion,seizing,failureorbreakdownofamechanical,electrical or electronic part of a Machine:

1. occurringwhiletheMachineisinoperationinthecourseoftheBusiness;

2. causeddirectlyandsolelybyadefectofthepart;and

3. preventing normal use of the Machine.

BusinessmeansthebusinessoftheInsuredasshownintheSchedule.

Capacity in relation to aMachine is determinedby factorsincluding:

1. recognisedstandards;

2. legislationandregulations;

3. manufacturers’recommendations;

4. loadcharts;

5. ConfigurationoftheMachine.

Company means any legal entity other than a natural person.

ConfigurationofaMachineisdeterminedbyacombinationof factors including:

1. thelengthandangleofanyjiborboom;

2. theweightoftheload;

3. thedistancebetweentheloadandtheMachine;

4. thenatureandinclineofthesurfaceonwhichtheMachineisstandingorresting;

5. theplacementandextensionofoutriggers;

6. theweatherconditions;

Part 1 – (PDS) / Part 2 – Policy Wording

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7. thespeedoflifting,lowering,luffingorslewing;

8. counterweighting.

Damage means:

1. suddenandunexpectedphysicalloss,damageordestructionofaMachine,butexcludesbreaking,distortion,seizing,failureorbreakdownofapartofaMachinecausedbyadefectofthepart(whetherBreakdownDamageorotherwise);or

2. permanentlossbytheft.

Dangerous Goods means things classified as ‘dangerousgoods’ortheirequivalentintheAustralianDangerousGoodsCode,but doesnot includegoodsclassified as ‘goods toodangeroustobetransported’.

Defence Costsmeans in Sections 6 and 7 the reasonableandproperlyincurredlegalcostsandexpensesofdefendingagainstaclaimagainsttheInsuredforLegalLiability.

Dry Hiremeans thehireof aMachinewhere thepersonorCompany hiring out the Machine does not provide any person involved in the operation of the Machine.

Employeemeansapersonwho,duringthePeriodofInsuranceandintheordinarycourseoftheBusiness,is:

1. employedbyanInsuredunderacontractofservice;

2. apprenticedtoanInsured;

3. labourhirepersonnelengagedbyanInsured;

4. deemedtobeanemployeeorworkerofanInsuredunderworkers’compensationlegislation;or

5. adirectororpartnerofanInsuredwhileperformingemployeeduties.

EndorsementmeansanyendorsementshownintheScheduleundertheheading‘Clauses’.

Excess means the amount stated in the Schedule for a Machine or a Section that:

1. the indemnity shall exceed before the Insurer shall beliabletopaytheindemnity;and

2. shall:

(a) forSections1to5,bedeductedfromtheindemnitypayablebytheInsurer;

(b) forSections6and7,bepaid to the Insurerby theInsured.

Insured means those named in the Schedule as the Insured.

InsurermeansQBEInsurance(Australia)Limited(ABN78003191035,AFSLicenceNo.239545).

Legal Costs means in Section 2:

1. theInsured’sreasonableandproperlyincurredlegalcostsandexpensesofdefendingagainstaclaimofLiabilitytoOwner;and

2. the legal costs and expensesof a claim for Liability toOwneragainsttheInsuredincurredbyapersonorCompanyother than:

(a) theInsured;or

(b) anEmployeeoradirectororpartneroftheInsured;

thattheInsuredisliabletopay.

Legal Liability means an Insured’s liability at law to paycompensation and legal costs to a person or Company other than an Insured.

Limit Any One Loss means the amount stated in the Schedule as‘LimitAnyOneLoss’foraSection.

Machine means an item of machinery identified in the Schedule for the purposes of one or more of Sections 1 to 5 only,includinganyattachmentacquiredbytheInsuredwithorforthe Machine that:

1. isidentifiedintheSchedule;

2. ispermanentlyattachedtotheMachine;or

3. hasaMarketValueatthecommencementofthePeriodofInsurance(oratthedateonwhich,duringthePeriodofInsurance,theMachinewasaddedtotheSchedule)nogreaterthan$10,000or10%oftheSumInsured,whicheveris the lesser.

Market ValuemeansthemarketvalueintheInsured’slocalarea taking into account, among other things, depreciationandwear and tear, but excludes stamp duty on transfers,registrationanddealerwarrantycostsandcharges.

Motor Vehicle means:

1. amotor vehicle intended to be propelled onwheels orself-laid tracks bymeans other than human or animalpower;and

2. a trailer or vehicle being towed or becoming detachedwhilebeingtowedbyamotorvehicle;

butexcludesrailandtramrollingstock.

[Note:aMachinecanalsobeaMotorVehicle.]

North America means:

1. theUnitedStatesofAmericaorCanada;and

2. anystateorterritoryincorporatedinoradministeredbyorfromtheUnitedStatesofAmericaorCanada.

Occurrence means:

1. asingleevent;

2. aseriesofeventsattributabletothesamesinglesourceorcause;or

3. continualorrepeatedexposuretosubstantiallythesamegeneral conditions.

Overloading means:

1. inrelationtoaMachinebeingacraneorbeingengagedin a lifting operation:

(a) lifting,carrying,movingorlowering;or

(b) attemptingtolift,carry,moveorlower;

a load that is or becomes greater than theMachine’sCapacityatanytimeduringtheliftingoperation,havingregardtotheMachine’sConfiguration;

2. in relation to all Machines:

placingontheMachinealoadheavierorlargerthanallowedbylawortheMachine’sspecifications.

Period of Insurance means the period of cover of the contract ofinsuranceasshownintheSchedule.

Part 2 – Policy Wording

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Personal Injury means:

1. bodily injury death, sickness, disease, illness, physicaldisablement,shock,fright,mentalanguishormentalinjury;

2. false arrest, false imprisonment, wrongful detention ormaliciousprosecution;

3. wrongfulentryorwrongfuleviction;

4. publicationorutteranceofalibel,slanderorotherdefamatoryordisparagingmaterial;or

5. assaultorbatterynotcommittedbyoratthedirectionofanInsured,exceptifreasonablycommittedforthepurposeofpreventingoreliminatingdangertopersonsorproperty;

ineachcasebothunintendedandunforeseenbytheInsured.

Policy means:

1. theSchedule;

2. the parts of the General Section and other Sections of thisdocument that theScheduleshowsare included inthecontractofinsurance;

3. theEndorsements;and

4. theImportantNoticesintheProposal.

Pollutantsmeansanysolid,liquid,gaseousorthermalirritantorcontaminant,includingbutnotlimitedtosmoke,vapour,soot,fumes,acids,alkalis,chemicalsandwastematerials.Wasteincludesmaterialtoberecycled,reconditionedorreclaimed.

Premium means the amount that the Insurer shall charge for insurance under this Policy including any amounts for GST.

Productsmeansthefollowingaftertheyhaveleftthepossessionand control of an Insured:

1. tangiblegoodssold,handled,distributed,supplied,grown,extracted, produced,made,manufactured, processed,treated,altered,serviced,repaired,installed,assembled,erectedorconstructedbytheInsuredinthecourseoftheBusiness;

2. containersandpackagingofsuchtangiblegoods(otherthan a vehicle or a Machine).

Product Defect means a defect in or harmful quality of aProductcausedbyanerrororomissionunintendedbyandnotknowntotheInsured,includinganerrorinoromissionofadvice concerning the use or storage of the Product.

Property Damage means:

1. physicaldamage,lossordestructionoftangibleproperty,includingresultantlossofuseofthatproperty;or

2. lossofuseoftangiblepropertythathasnotbeenphysicallydamaged,lostordestroyed;

bothunintendedandunforeseenbytheInsured.

Proposal means the proposal for this contract of insurance.

Road Vehicle means:

1. aMotorVehiclethatisboth:

(a) registeredforuseasamotorvehicleasrequiredbylaw;and

(b) identifiedintheSchedule;or

2. atrailer,thatisboth:

(a) beingtowedorbecomesdetachedwhilebeingtowedbyaMotorVehicleregisteredforuseasamotorvehicleandidentifiedintheSchedule;and

(b) itself registered foruseasavehicleas requiredbylaw.

Schedule means the schedule for this contract of insurance.

Sum Insuredmeansthemaximumamountpayableforindemnity,being:

1. forSections1,2,3and5:theamountstatedintheScheduleforaMachine;

2. for Section 4: the amount stated in theSchedule for aCoverOption;

3. forSections6and7:theamountstatedintheSchedulefortheSection;

4. foranAdditionalBenefit: theamount for theAdditionalBenefitstatedintheScheduleorintheAdditionalBenefititself.

Territorial Limits means Australia.

Tool of Trademeans, in relation to theuseoroperationofa Road Vehicle orMotor Vehicle, any function for which itis designed other than road transport or use or operation primarily asaRoadVehicleorMotorVehicle. (SuchToolofTradefunctionsincludebutarenotlimitedtolifting,lowering,carryingotherthanroadtransport,grading,levelling,scraping,digging,shovelling,bulldozing,pumping,spraying,discharging,tipping,crushing,chipping,mulchingandmixingother thanmixingduringroadtransport.)

UAA means the Insurer’s agent: Underwriting Agencies ofAustraliaPtyLimited(ABN86003565302,AFSLicenceNo.238517).

Watercraftmeansathingintendedtofloat,submergeormovein,onorunderwater.

Wet Hiremeans thehireofaMachinewhere thepersonorCompany hiring out the Machine provides a person to operate the Machine.

C. general Exclusions for Sections 1 to 71. The Insurer shall not indemnify the Insured against any

loss,damageorliability(includingLegalLiability)causeddirectlyorindirectlyby,arisingfromorinconnectionwith:

(a) sonicpressurewavesinconnectionwithaircraftandotheraerialdevices;

(b) radioactive,toxic,explosiveorotherhazardouspropertiesofanynuclearassemblyornuclearcomponent;

(c) ionisingradiationsorcontaminationbyradioactivityfromanynuclearfuelorfromanynuclearwastefromthe combustion of nuclear fuel (such combustionincluding any self-sustaining process of nuclear fission and/orfusion);

(d) nuclearweaponsmaterial;

(e) war,invasion,actsofforeignenemy,hostilities(whetherwarbedeclaredornot),civilwar,rebellion,revolution,insurrection,militaryorusurpedpower;


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(B)withalevelofdrugsoralcoholinthebreath,bloodorurineinexcessofthatpermittedbylaw to operate aMachine or drive aMotorVehicle;

unless the Insured proves that the Insured:

(C)didnotconsenttotheMachinebeingoperatedbythatperson;or

(D)didnotbreachGeneralConditionF.2(d)andwasunawareandcouldnotreasonablyhavebeenawareofthemattersin(A)and(B)above;

(4) deliberateorrecklessOverloadingofaMachine,whetherornotwithanInsured’sknowledge;

(5) deliberately or recklessly incorrect loading ofa Machine, whether or not with an Insured’sknowledge;

(6) operationofaMachinewhileitsload-measuringinstrumentsorlimitersaredefective,inoperativeor turnedoff,whetherornotwithan Insured’sknowledge;

(7) failureof:

(A) anInsured;

(B) a director or partner of an Insured or anEmployee;or

(C) a person engaged in the operation of the Machine;

toservice,maintain,useoroperatetheMachinestrictlyincompliancewithsystemsandproceduresimposedor recommendedby law, InternationalStandards, Australian Standards, industrystandardsandmanufacturers’anddistributors’recommendationsorguidelines,whetherornotwithanInsured’sknowledge;

(8) acts or omissions of:

(A) anInsured;

(B) a director or partner of an Insured or anEmployee;or

(C) a person engaged in the operation of the Machine;

with the intention of causing, or with recklessdisregardoftheriskofcausing,injuryordamageto person or property, whether or not with anInsured’sknowledge;

(9) lackof,inadequateorincorrectlubricant,coolant,oilorotherdryorliquidsubstance,unlesscausedbyDamagetoaMachine,whetherornotwithanInsured’sknowledge;

(10)testsorexperimentsimposingabnormaloperatingconditionsonaMachine,whetherornotwithanInsured’sknowledge;

(11)defectsindesign;

(12) use of a Machine that:

(A) hasnotbeencommissionedasacommerciallyoperatingmachine;

(f) expropriation including lawful seizure, resumption,confiscation,nationalisation,destructionordamagetopropertybyorundertheorderofanygovernmentorpublicorlocalauthority;

(g) looting, sacking or pillaging following any eventsstatedin(e)or(f)above;

(h) anybusinessactivitiesotherthantheBusiness;

(i) any:

(1) act, including the use of force or violence (orthreat of force or violence), by any person orgroupofpeopleactingaloneoronbehalfoforinconnectionwithanyorganisationorgovernmentthatisdoneforpolitical,religious,ideologicalorethnicreasonswiththeintentiontoinfluenceanygovernmentorputthepublicoranysectionofthepublicinfear;or

(2) anyactionincontrolling,preventing,suppressing,retaliating against or responding to any act referred toin(1)above.

2. The Insurer shall not indemnify the Insured against anything in respectofwhich the Insured is entitled to indemnityunderanothercontractofinsurancethatisrequiredtobeeffectedbyorunderalawinAustralia.

3. TheInsurershallnotindemnifytheInsuredagainstdamages,penalties or interest for delay or detention.

D. general Exclusions for Sections 1 to 51. The Insurer shall not indemnify the Insured against:

(a) anyloss,damage,liabilityorcostscauseddirectlyorindirectlyby,arisingfromorinconnectionwith:

(1) useofaMachineforanunlawfulpurpose,unlesstheInsuredprovesthattheInsuredwasunawareand could not reasonably have been aware ofsuchuse;

(2) operationofaMachinebyanyperson:

(A) notqualified,suitablylicensedorexperienced;

(B) notlicensed,holdinganimproperlyobtainedlicenceornotcomplyingwithlicenceconditions;or

(C) suffering from a physical or mental impairment ofability;

tooperatetheMachine,unlesstheInsuredprovesthat the Insured:

(D)didnotconsenttotheMachinebeingoperatedbythatperson;or

(E) didnotbreachGeneralConditionF.2(d)andwasunawareandcouldnotreasonablyhavebeenawareofthemattersin(A),(B)and(C)above;

(3) operationofaMachinebyanyperson:

(A) under the influenceoforaffectedbydrugsoralcohol;or


9

(B) isaprototypeorexperimentalmachine;or

(C) isbeingdevelopedorisstillinthecourseofdevelopment;

(b) physicaldamageordestructionof:

(1) asafetyorprotectivedevicecausedbytheoperationofsuchsafetyorprotectivedevice;

(2) tyres caused by the application of brakes orbursting,puncturing,cuttingorwearing;

(3) batteries caused by a defect in the batteries,unless thedefectwascausedbyDamagetoaMachine;

(4) foundationsormasonry;

(5) tools,cuttingedges,drillbits,moulds,patterns,non-metallic linings,pulverising,hammeringorcrushingsurfaces,flexiblepipes,trailingcables,drivingbeltsorbands,andanyparts requiringregularperiodicreplacement;

(c) physicaldamageordestructionof,oranylossfromorliabilityorcostsforphysicaldamageordestructionof,anypartofaMachinecausedby:

(1) the application of a tool or process to the part during inspection,maintenance,servicing,modificationorrepair;

(2) scratching or chipping of painted or polished surfaces;

(d) lossofaMachineoranypart thereofcausedbyorarising from the exercise by another of a right orpurported right to ownership or possession of theMachineoranypartthereof;

(e) anyloss,damage,liabilityorcostsinrespectofwhichanInsuredhasreleasedorwaivedanyInsured’srightto recovery, indemnityorcontribution fromanotherexcepttotheextentthatAdditionalBenefit7(Indemnitytohirer–WetHire)orAdditionalBenefit15(Hired-outplant–damagewaivers)inSection3appliestosuchreleaseorwaiver;

(f) any legal liability ofwhatsoever nature other than asprovidedinSection2andAdditionalBenefit7(Indemnitytohirer–WetHire)orAdditionalBenefit15(Hired-outplant–damagewaivers)inSection3.

2. In the event of physical damage or destruction of a part ofaMachinecausedby:

(a) wearandtear,corrosion,rusting,erosion,fatigueorgradualdeteriorationofthepart;

(b) breaking,distortion,seizing,burning,failureorbreakdownofthepart;or

(c) BreakdownDamageofthepart;

the Insurer shall not indemnify the Insured against:

(d) thephysicaldamageordestructionofthepart;

(e) any loss,damage, liabilityorcostscauseddirectlyorindirectlybyorarisingfromorinconnectionwithphysicaldamageordestructioncausedbythephysicaldamage or destruction of the part to any other part oftheMachine,unlesstheInsuredprovesthat:

(1) noEmployeeorpersonwhowasengagedintheoperation,maintenanceorservicingoftheMachinenoranyInsuredwasawareandcouldreasonablyhavebeenawareofsuchcause;

(2) theInsuredtookreasonablestepstoavoid,prevent,detectanddiscoversuchcause;

(3) theMachinewasbeingoperatedbya suitablylicensed,qualifiedandexperiencedoperatoratthetimewhenthedamageordestructionoccurred;and

(4) suchcausewasnotreasonablycapableofbeingdiscovered or revealed by or in the course ofinspection,maintenanceorservicingoftheMachinethatwascarriedoutorshouldhavebeencarriedout according to:

(A) manufacturer’sanddistributor’srecommendationsorguidelines;and

(B) systems and procedures imposed orrecommendedbylaw,InternationalStandards,Australian Standards and Industry Standards.

3. OtherthanasprovidedinAdditionalBenefits1(Damagetoliftedgoods),6(Employees’propertydamage),7(Indemnityto hirer –Wet Hire) and 15 (Hired-out plant – damagewaivers)inSection3:

(a) the Insurer shall not indemnify any person or Company other than an Insured having an interest in a Machine unless the person or Company is named in the Schedule asaninterestedparty;and

(b) asagainstanyinterestedpartymakingaclaim,theInsurer,without limitinganyotherdefence,shallbeentitled to rely on any defence that the Insurer has against an Insured.

E. general Exclusions for Sections 6 and 7(SeealsoExclusionsinSections6and7.)

1. The Insurer shall not indemnify the Insured against Legal Liability:

(a) Employer’s liability

arisingfromPersonalInjurytoanEmployee:

(1) arising from any relationship described in theGeneralDefinitionof‘Employee’;

(2) imposedbyworkers’compensationlegislation,anindustrialaward,anagreementoradetermination;

(3) for which legislation relating to workers’compensation requires the Insured to haveinsurance;or

(4) forwhichtheInsuredhasthebenefitofastatutoryindemnity or insurance policy under legislation relatingtoworkers’compensation.

(b) Changes in compulsory insurance law

of a kind to which a statutory indemnity schemeor insurance that the Insuredwas required tohavebylaw(includingworkers’compensationandmotor


10

vehicle legislation) applied at the commencement of thePeriodofInsurance,evenifbeforetheOccurrencetheschemehasceasedtoapplyortherequirementto have such insurance has ceased.

(c) Contractual liability

(1) assumed by an Insured under a contract oragreement,excepttotheextentthat:

(A) theliabilitywouldhavebeenimpliedbylawintheabsenceofsuchcontractoragreement;

(B) theliabilityarisesfromaprovisionofawrittencontract for lease of real or personal property otherthanaprovisionthatobligestheInsuredto effect insurance or provide indemnity in respectofthesubject-matterofthecontract;or

(C) theliabilityisassumedbytheInsuredunderawarrantyoffitnessorqualityoftheInsured’sproducts;

or

(2) forwhichanInsuredhasreleasedorwaivedallorpartoftheInsured’srighttorecoverindemnity,contributionordamagesfromanother.

(d) Admissions of liability

whichanInsuredhasincurredsolelybyreasonofanexpress,impliedorconstructiveadmissionofliability.

(e) Property in an Insured’s physical possession or legal control

for damage to or loss of:

(1) anyproperty(notincludingpremises)whilebeingusedoroperatedbyanInsured;

(2) any vehicle or trailer in a car park owned oroperatedbyanInsuredforreward;

(3) anypartofanypropertyonwhichanInsuredisworkingwherethedamageisdirectlycausedbysuchwork;or

(4) anypropertyinthephysicalpossessionorlegalcontrol of the driver of a vehicle unless the property is suspended from a Machine designed to lift that property.

(f) Pollution

(1) for Personal Injury or Property Damage arising directlyorindirectlyoutoforcausedby,throughorinconnectionwiththedischarge,dispersal,release,seepage,migrationorescapeofPollutantsintooruponland,theatmosphere,oranywater,includinganywatercourseorbodyofwater,unlesssuchdischarge,dispersal,release,seepage,migrationor escape is sudden, identifiable, unexpectedandunintendedandtakesplaceinitsentiretyataspecifictimeandplaceoutsideNorthAmerica;

(2) the cost of preventing, removing, nullifying orcleaning up any contamination or pollution as a consequenceofthedischarge,dispersal,release,seepage,migrationorescapeofanyPollutants,but

thisexclusiondoesnotapplytoremovalornullifyingorcleaningupcostswhichareconsequentuponasudden,identifiable,unexpectedandunintendedhappeningwhichtakesplaceinitsentiretyataspecifictimeandplaceoutsideNorthAmerica;or

(3) Personal Injury or Property Damage arising directly or indirectlyoutoforcausedby, throughor inconnectionwiththeactual,allegedorthreateneddischarge,dispersal,release,seepage,migrationorescapeofPollutantscausedbyanyProductthat has been discarded, dumped, abandonedorthrownawaybyothers;

andtheInsurer’saggregateliabilityunder(1)and(2)aboveforalldischarges,dispersals,releases,seepages,migration or escape of Pollutants during the Period ofInsuranceofthisPolicyshallnotexceedtheSumInsured.

(g) Asbestos

caused directly or indirectly by, arising from, inconsequence of, contributed to or aggravated byasbestosinwhateverformorquantity.

(h) Fines, penalties and exemplary, aggravated or punitive damages

for:

(1) finesorpenalties;

(2) exemplary,aggravatedorpunitivedamages;

(3) additional damages resulting from the multiplication ofcompensatorydamages;or

(4) liquidateddamages.

(i) Property owned by an Insured

fordamagetopropertyownedbyanInsured.

2. Information technology and computer data, programmes and storage media

(a) The Insurer shall not indemnify the Insured against LegalLiabilityforPersonalInjuryandPropertyDamagearisingdirectlyorindirectlyfromorinconnectionwith:

(1) anInsured’sInternetOperations;

(2) the provision of computer or telecommunication servicesbyoronbehalfofanInsured;

(3) theuseofanycomputerequipmentorprogramme,whethermadeorownedbyanInsuredoranyoneelse;or

(4) anyharmfulcomputerprogrammeincludingbutnotlimitedtoacomputervirus,worm,logicbombortrojanhorse;

butthisExclusionshallnotapplytoPersonalInjuryorPropertyDamagecausedbyorarisingoutofanydocumentspreparedorpublishedbyanyoneotherthananInsuredoranEmployeeinrespectofuseofor safety instructionsorwarnings foranycomputerequipmentorprogramme.


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(b) Internet Operations means:

(1) useofelectronicmailormessagingsystemsbyanInsuredoranEmployee,includingpart-timeandtemporarystaffandotherswithinanInsured’sBusinessorotherscommunicatingwithanInsured’sBusinessbyelectronicmailormessaging;

(2) accessthroughanInsured’snetworktotheworldwideweborapublicinternetsitebyanInsuredoranEmployee,includingpart-timeandtemporarystaff,contractorsandotherswithinanInsured’sBusiness;

(3) accesstoanInsured’sintranet(internalcompanyinformationandcomputingresources)which ismadeavailablethroughtheworldwidewebforanInsured’scustomersorothersoutsideanInsured’sBusiness;and

(4) operationandmaintenanceofanInsured’swebsite.

3. Interested parties

SubjecttothecoverprovidedinAdditionalBenefitsC.2(Extendedroadriskcoverfordriversandpassengers),C.6(Coverforprincipals)andC.8(Hired-outRoadVehicles)inSection6andAdditionalBenefitC.3(Coverforothers)inSection7,theInsurershallnotindemnifyapersonorCompanynotnamedasanInsuredeveniftheperson’sorCompany’sinterestisnotedintheSchedule.

F. general Conditions 1. Average

ForSections1,2and5,iftheSumInsuredforaMachineislessthan90%ofitsMarketValueimmediatelypriortotheDamageorBreakdownDamage,exceptintheeventofdestructionorpermanentlossbytheftoftheMachinetheindemnityshallbereducedaccordingtotheformula:

(IndemnityxSumInsured)

90%ofMarketValue

2. Compliance with recommendations, guidelines, standards and legislation

The Insured shall at all times:

(a) service,maintain,useandoperatetheMachinesandanyvehiclesstrictlyinaccordancewith:


(2) systems and procedures imposed or recommended by law, International Standards, AustralianStandardsandindustrystandards;

(b) ensurethatanyoneservicing,maintaining,using,orengaging in the operation of the Machines and any vehiclescompliesstrictlywith:


(2) systems and procedures imposed or recommended by law, International Standards, AustralianStandardsandindustrystandards;

(c) notpermitunqualifiedor inadequatelyexperiencedpersons to engage in the operation or use of the Machinesandanyvehicles;

(d) ensure that anyone operating or using aMachine,RoadVehicleorMotorVehicleis:

(1) qualifiedandadequatelyexperiencedtooperateoruseit;

(2) providedwithsuitabletraininginitsoperationorusebeforeoperatingorusingit;and

(3) not suffering from a physical or mental impairment ofabilitytooperateoruseit;

3. Reasonable Precaution

TheInsuredshallatalltimestakeallreasonableprecautionstopreventloss,damage,injuryorliability.

4. Claims procedure

(a) Assoonasan Insuredbecomesawareofanythingthat gives rise to or could give rise to a claim under thePolicy,theInsuredshall:

(1) immediatelynotifyUAAbytelephone;

(2) takeallprecautionstopreventorreduceDamage,BreakdownDamage,PropertyDamage,PersonalInjury,ConsequentialLoss,LiabilitytoOwnerorLegalLiability(includingcarryingoutnecessaryminorrepairswithoutfirstobtainingtheapprovaloftheInsurer);

(3) retain any damaged Machine or vehicle or parts thereof;and

(4) providetoUAAfulldetailsoftheclaiminwritingwithinthreedays.

(b) Anynotice,processorsummonstobeservedbytheInsuredontheInsurermaybeservedonUAA,whichisauthorisedtoenteranappearanceontheInsurer’sbehalf.

5. Co-operation in claims

The Insured shall:

(a) atitsownexpenseprovidetoUAAanditsagents(includingassessors,investigatorsandlegalrepresentatives)allcooperationandassistancerequiredbyUAA,includingbutnotlimitedtoprovidingormakingavailable:

(1) all information and documents:

(A) to establish title, ownership and right topossession of property, including but notlimitedtomachinesandmotorvehicles;

(B) to establish the cause of the Damage,Breakdown Damage, Consequential Loss,PropertyDamageorPersonalInjury;

(C) relatingtotheInsured’sclaimfororentitlementto indemnity, including but not limited toquantificationoftheindemnity;

(D)astotheservicing,maintenanceandoperationofanyequipment, includingbutnot limitedtoMachinesandmotorvehicles;


12

(E) constituting any contract or arrangemententered intobyor onbehalf of an Insured,includingbutnotlimitedtocontractsofhire;

(F) to defend against any claim of Liability toOwner or Legal Liabilitymade against theInsured;and

(2) all relevantpersons for interviews,statements,assistance and the provision of documents and information;

(b) atitsownexpensepreserveandprotectagainstdamageorlossallproperty,documentsandrecordsrelevantto a potential or actual claim under the Policy.

6. Fraud / Utmost good faith

(a) TheInsuredshallatalltimescomplywiththeInsured’sduty of utmost good faith and shall not provide false ormisleadinginformationtotheInsurerorUAA.

(b) TheInsuredshallanswertruthfully,honestlyandwithdue diligence any requests for information by theInsurerorUAA.

7. Defence of claims against the Insured

(a) If aclaim forLiability toOwnerunderSection2orLegalLiabilityunderSections6or7ismadeagainstthe Insured,the Insurershallhavetherightbutnottheobligationto:

(1) investigatetheclaim;

(2) instructlawyerstoadviseontheclaim;

(3) instructlawyerstorepresenttheInsured;

(4) instructlawyerstoconducttheInsured’sdefence;

(5) negotiatesettlementoftheclaim;and

(6) directsettlementoftheclaim.

(b) AnInsuredshallnotmakeanyoffer,payment,admissionorsettlement,resolve,assumeanyobligation,consenttoanyorder,orincuranycostsorexpensesinrelationto a claim against an Insuredwithout the Insurer’spriorwrittenconsent.

8. Basis of the Sum Insured

(SeealsoGeneralConditionsF.1(Average)andF.9(PremiumAdjustment).)

TheSumInsuredforSections1,2and5shallbetheMarketValueatthecommencementofthePeriodofInsurance,whichtheInsuredshalldeclaretotheInsureratthattime.

9. Premium adjustment

(a) If Section 2 applies, the Premium for Section 2 iscalculated at the commencement of the Period of Insurance as aminimum deposit premium, basedontheInsured’sestimateoftotalhiringchargesforMachines to be hired in by the Insured during thePeriod of Insurance.

(b) IfthetotalhiringchargespaidbytheInsuredduringthePeriodofInsuranceforMachineshiredinbytheInsured is different from the estimate provided at thecommencementof thePeriodof Insurance, the

PremiumshallbeadjustedandtheInsuredshallpayorreceivethedifferencebetweentheadjustedPremiumand the minimum deposit premium.

10. Right of inspection

(a) TheInsurershallhavetherightbutnottheobligationtoinspectorexamineanypropertyorrecordsrelatingtotheInsured’sbusiness,includingbutnotlimitedtoMachines,atanytimeduringthePeriodofInsurance.

(b) TheInsuredshallatitsownexpenseassistininspectionsorexaminationsoftheMachines.

11. Notification of changes materially affecting the insurance

(a) TheInsuredshallnotifytheInsurerinwritingassoonaspossibleofanychangemateriallyvaryinganyfactsorcircumstancesexistingatthecommencementofthePeriodofInsurance,includingbutnotlimitedto,changes in the information contained in the Proposal.

(b) TheInsurershallnotindemnifyagainsttherisksarisingfrom thematerial changes unless, beforeDamage,BreakdownDamage,PropertyDamageorPersonalInjuryinconnectionwiththoserisksoccurs,theInsurerhasagreedinwritingtoextendthePolicy.

(c) FollowingtheInsured’snotificationtotheInsurerofsuch material changes the Insurer shall have the right tovarytheSumsInsured,Excess,Premiumsortheterms of the Policy.

12. Use of Machines underground

ForthepurposesofSections1to5:

(a) the Insured shall not use or operate a Machine undergroundunless,priortosuchuseoroperation:

(1) theInsuredhasnotifiedtheInsurerinwritingthatsuchuseoroperationisintended;and

(2) the Insurerhasagreed inwriting toextend thePolicytocoversuchuseoroperation;

(b) thePolicyshallnotcoverDamagetoorBreakdownDamage in a Machine while used or operatedundergroundunlesstheInsurerhasagreedinwritingtoextendthePolicytocoversuchuseoroperation.

13. Use of Machines in connection with drilling or wells


(a) the Insured shall not use or operate a Machine for or inconnectionwithoil,gasorgeothermaldrillingorwellsunless,priortodoingso:

(1) theInsuredhasnotifiedtheInsurer;and

(2) the Insurerhasagreed inwriting toextend thePolicytocoversuchuseoroperation;

(b) thePolicyshallnotcoverDamagetoorBreakdownDamageinaMachineoccurringwhilebeingusedoroperated in connectionwithoil, gasor geothermaldrillingorwellsunless,priortosuchuseoroperationtheInsurerhasagreedinwritingtoextendthePolicyto cover such use or operation.


13

14. Placement of Machines on Watercraft


(a) the Insured shall not place a Machine on a Watercraft unless,priortodoingso:

(1) theInsuredhasnotifiedtheInsurer;and

(2) the Insurerhasagreed inwriting toextend thePolicytocovertheMachinewhileontheWatercraft;

(b) thePolicyshallnotcoverDamagetoorBreakdownDamageinaMachinewhileonaWatercraftunless,prior to suchplacement, the Insurer has agreed inwritingtoextendthePolicytocoversuchplacement.

15. Subrogation

UponaneventgivingrisetoaclaimunderthePolicy:

(a) theInsurershallbeentitledimmediatelytopursue;

(b) theInsuredshallconsenttotheInsurer’spursuing;and

(c) theInsuredshallatitsownexpenseco-operatewithandassisttheInsurerinpursuing;

theInsured’slegalrightstorecoverfromothers.

16. Salvage

In the event of the destruction of a Machine or part of a MachineagainstwhichtheInsurerhasagreedtoindemnifythe Insured, theownershipof theMachineorpartshallpassimmediatelytotheInsurer,unlesstheInsurernotifiestheInsuredinwritingotherwise.

17. Jurisdiction

ThePolicyshallbeinterpretedbythecourtsofandaccordingtothelawsoftheAustralianStateorTerritoryinwhichthePolicywasissued.

18. Cancellation of the Policy

(a) TheInsuredmaycancelthewholeoranySectionofthePolicyatanytimebyprovidingthreedays’noticeinwritingtoUAA.

(b) IftheInsuredcancels,theInsurershallrefundtotheInsured80%ofthePremiumrelatingtothecancelledpartofthePolicyfortheunexpiredpartofthePeriodofInsuranceonaproratabasis.

(c) TheInsurermaycancelthewholeoranySectionofthePolicyinaccordancewiththeInsuranceContractsAct,1984.

(d) IftheInsurercancels,theInsurershallrefundtotheInsured the Premium relating to the cancelled part ofthePolicyfortheunexpiredpartofthePeriodofInsurance.

19. Discovery of Products Defects

IntheeventthatanInsuredbecomesawareofaProductDefect, the Insured shall locate and recall all relevantProductsat itsownexpense,regardlesswhetherornotPersonal Injury or Property Damage has already occurred.

20. Two or more named as the Insured (cross-liability)

IftheSchedulenamestwoormoreInsureds:

(a) forSections1to5:

(1) each one is both individually and collectivelyresponsible for the Insured’s compliance withtheconditionsofthePolicy;and

(2) asagainsteachInsuredtheInsurershallbeentitledtorelyonanydefenceavailableagainstanyotherInsured;

(b) forSections6and7,eachInsuredshallbetreatedasifaseparatepolicyhadbeenissuedtothatInsured,butthisConditionshallnotoperateto increasetheInsurer’sliabilitybeyond:

(1) thelimitsofliabilityinthePolicy;and

(2) theliabilityoftheInsurerhadthisConditionnotbeenincludedinthePolicy.

21. Indemnity for those not named as Insured

If the terms of the Policy entitle a person or Company not namedasanInsuredintheScheduletobeindemnifiedunder the Policy:

(a) theperson’sorCompany’sentitlementissubjecttothat personorCompany complyingwith the termsof thePolicyas if thepersonorCompanywereanInsured;and

(b) asagainstsuchpersonorCompanytheInsurershallbeentitledtorelyonanydefenceavailableagainstanInsuredasifthepersonorCompanywereanInsured.

22. Payment of Excess

TheInsurershallnotbeliabletoindemnifyanInsuredunderSections6or7 if the Insureddoesnotpay theExcesswithin14daysafterbeingrequestedtodoso.

23. Non-aggregation of Excess

IfoneeventorOccurrencegivesrisetoloss,damageorliabilityagainstwhichtheInsurerisliabletoindemnifyanInsuredundermorethanoneSection,thesinglehighestExcessapplicableshallapplyonceinrespectoftheindemnitypayableunderallofthoseSections.

24. Goods and Services Tax (GST)

(a) TheInsured’sGSTstatusshallaffecttheamountofanyindemnitypayablebytheInsurerunderthePolicy.

(b) TheInsuredshallinformtheInsureroftheInsured’s:

(1) AustralianBusinessNumber;and

(2) TaxablePercentage,beingtheInsured’sentitlementto an Input Tax Credit on the Premium as apercentage of the total GST on that Premium.

(c) If the Insured:

(1) isnotregisteredforGST,theSumInsuredandanylimitofindemnityshallbeinclusiveofGST


14

(2) isregisteredforGST,theSumInsuredandanylimitofindemnityshallbeexclusiveofGSTandtheInsurer shall also pay any GST that the Insured is liabletopayinrespectofanyacquisitionincludedintheindemnity;

buttheInsurershallnotpayanyGSTtotheextentthat the Insured is entitled, orwould ifmakingthe relevantacquisitionbeentitled, toan InputTaxCredit.

(d) The Insured shall refund to the Insurer or pay any amountofGSTpayableasaresultoftheInsured’sincorrect advice.

(e) The Insurer shall pay only the amount of GST (less the Insured’sentitlementtoanInputTaxCredit)basedonthe amount that the Insurer pays under the Policy and anyrelevantacquisitionincludedintheindemnity.

(f) ForthepurposeofthisGeneralConditionandwheneverusedelsewhereinthePolicy,theexpressions“GST”,“Input TaxCredit” and “acquisition” shall have thesamemeaningasinANewTaxSystem(GoodsandServicesTax)Act1999andrelatedlegislation.

25. Other insurance

IntheeventofaclaimunderthePolicy,theInsuredshallnotifytheInsurerofandprovidetheInsurerwithacopyofanyotherinsurancepolicyconcerningthesamesubject-matter.

26. Interpretation

NothinginanExclusionshallbeconstruedtoextendtheliabilityof the Insurerbeyond its liability in theabsenceoftheExclusion.

SECTION 1 – DAMAgE

A. The CoverThe Insurer shall indemnify the Insured against Damage to a Machine that occurs:

1. withintheTerritorialLimits;and

2. during the Period of Insurance.

B. The Indemnity1. The indemnity under this Section against Damage to a

Machineshallnotexceedtheleastof:

(a) inthecaseofphysicaldamage,thereasonablecostof:

(1) repairingtheMachine;and

(2) re-commissioning, re-erecting and re-installingtheMachine;

to restore it to a condition equal to its conditionimmediatelypriortotheDamage;

(b) theMarketValueoftheMachineimmediatelypriortotheDamage;

(c) an amount that indemnifies the Insured against the DamagetotheMachine;

(d) the Sum Insured.

2. TheindemnityunderB.1aboveshallnotincludeanycostsofthekindreferredtoinAdditionalBenefit5inSection3.

3. TheaggregateofallindemnitypayableunderthisSectionandanyAdditionalBenefitunderSection3applying tothisSection inconnectionwithDamagetotwoormoreMachinescausedbytheoneeventshallnotexceedtheaggregateoftheLimitsAnyOneLossshownintheSchedulefor this Section and Section 3.

4. The Insurershall,at itsoption, indemnifythe Insured inaccordancewithB.1by:

(a) repairing the Machine to a condition equal to itsconditionimmediatelypriortotheDamage;or

(b) payingtheindemnitytotheInsured.

5. TheExcessshallapplytoeachMachineforeacheventofDamage,butifoneeventcausesDamagetotwoormoreMachinessimultaneously,thehighestExcessapplicableto any of those Machines shall apply once in respect of all those Machines under this Section.

C. Additional BenefitSubstitute Machines

1. TheInsurershallindemnifytheInsuredinaccordancewiththetermsofthisSectionagainstDamagetoaSubstituteMachineas if theSubstituteMachinewere identified inthe Schedule for this Section.

2. Substitute Machinemeans,forthepurposeofthisAdditionalBenefitonlyamachine:

(a) beingusedbyanInsuredasatemporaryreplacementforaMachinewhiletheMachineisundergoingrepair,maintenanceorservicing;

(b) equivalent insize,functionandmarketvaluetotheMachineforwhichitisasubstitute;and

(c) only until the Machine is returned to the Insured followingrepair,maintenanceorservicing.

SECTION 2 – HIRED-IN PLANT (LIABILITy TO OWNER)

A. The Cover1. TheInsurershallindemnifytheInsuredagainstLiabilityto

OwnerarisingfromDamagetoaMachinehiredinbytheInsured that occurs:

(a) withintheTerritorialLimits;

(b) duringthePeriodofInsurance;

(c) duringtheperiodofhire;and

(d) whiletheMachineisinthephysicalpossessionandcontrol of the Insured.

Part 2 – Policy Wording / Section 1 / Section 2

15

B. The Indemnity1. TheindemnityunderthisSectionagainstLiabilitytoOwner

for the cost of repair or replacement of a Machine shall notexceedtheleastof:

(a) inthecaseofphysicaldamage,thereasonablecostof:

(1) repairingtheMachine;and

(2) re-commissioning, re-erecting and re-installingtheMachine;

to restore it to a condition equal to the conditionimmediatelypriortotheDamage;

(b) theMarketValueoftheMachineimmediatelypriortotheDamage;

(c) an amount that indemnifies the person or Company fromwhomtheInsuredhiredtheMachineagainsttheDamagetotheMachine;

(d) theInsured’sliabilityforrepairorreplacementoftheMachine under the hire contract.

2. TheindemnityunderB.1aboveshallnotincludeanycostsofthekindreferredtoinAdditionalBenefit5inSection3.

3. TheindemnityagainstLiabilitytoOwnerforhiringchargesfortheMachineshallbethelesserof:

(a) theamountshownfor‘HiringCharges’intheScheduleless the aggregate of all amounts already paid bythe Insurer under this Section during the Period of InsuranceforhiringchargesinrespectoftheMachine;

(b) theamountofhiringchargesfortheMachinepayablebytheInsuredunderthehirecontractforthedurationof the Indemnity Period.

[Note:TheInsured’sobligationtomitigateitslossunderGeneralConditionF.4(a)(2) includesexercisinganyrightunderthehirecontracttominimisetheInsured’sliabilitytotheowner.]

4. TheaggregateofallindemnitypayableunderthisSectionandanyAdditionalBenefitunderSection3applying tothisSection inconnectionwithDamagetotwoormoreMachines arising from the one event shall not exceedtheaggregateof theLimitsAnyOneLossshownintheSchedule for this Section and Section 3.

5. TheExcessshallapplytoeachMachineforeacheventofDamage,butifoneeventcausesDamagetotwoormoreMachinessimultaneously,thehighestExcessapplicableto any of those Machines shall apply once in respect of all those Machines under this Section.

C. Additional Benefit1. On-Hire on Dry Hire terms (optional Additional

Benefit)

(a) IftheScheduleshowsboththatthisAdditionalBenefitapplies and that the Business includes the hire ofmachines toothers,A.1(d)of thisSectionshallnotapply and the Insurer shall indemnify the Insured againstLiabilitytoOwnerarisingfromDamagetoaMachinehiredinbytheInsuredonDryHiretermsifthe Damage occurs:

(1) duringthePeriodofInsurance;

(2) duringtheperiodofhire;and

(3) whiletheMachineison-hiredtoanotherpersonor Company on Dry Hire terms.

(b) TheSumInsuredforthisAdditionalBenefitshallbetheamountshownintheScheduleforthisAdditionalBenefit.

2. Legal Costs

(a) Ifaclaim forLiability toOwner ismadeagainstanInsured,theInsurershallalsopay:

(1) theLegalCostsinrelationtothatclaimtowhichtheInsurerhasagreedinwritingbeforetheLegalCostsareincurred;and

(2) thelegalcostsandexpensesofaclaimforLiabilitytoOwneragainsttheInsuredincurredbyapersonor Company other than an Insured or a director orpartnerofanInsuredthattheInsuredisliableto pay.

(b) The indemnityforLegalCostsshallnotexceedthebalanceof$50,000afterdeductingtheaggregateofallamountsforLegalCostsandcostsunder(a)abovealreadypaidbytheInsurerunderthisSectionduringthe Period of Insurance.

D. Definitions for Section 2Indemnity Period means the period of continuous Interruption:

1. commencingattheendoftheInitialPeriod;and

2. ending at the earlier of:

(a) repairorreplacementoftheMachine;

(b) the end of the number of weeks of the ‘IndemnityPeriod’shownintheSchedule.

Initial Periodmeanstheperiodending14daysaftertheInsuredgives notice of the Interruption to the Insurer.

Interruptionmeanspreventionoforinterferencewiththenormaluse or operation of the Machine to perform the functions for whichitwasdesignedinthecourseoftheBusinesscausedbyandcommencinguponitsDamage.

Liability to Owner means the Insured’s liability under theexpressorimpliedtermsofthehirecontractforaMachinetopay,intheeventofDamagetotheMachine:

(a) thecostofrepairorreplacementoftheMachine;and

(b) hiringchargesfortheMachinewhileitisunabletobeusedinconsequenceoftheDamage;

butdoesnotincludeliabilityfordemurrageoranyotherdirectorconsequentiallossofthepersonorCompanyfromwhomthe Insured hired the Machine.

Section 2

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SECTION 3 – ADDITIONAL BENEFITS

Additional Benefits applying to Sections 1 and 2 automatically1. Damage to lifted goods

(a) The Insurer shall indemnify:

(1) theInsured;or

(2) anownerofgoodswho isnotan Insuredas ifsuchownerwasanInsured;

againstsuddenandunexpectedphysicaldamageordestructionofthegoodsoccurringwhilethegoodsareboth:

(3) inthepossessionandcontroloftheInsured;and

(4) suspendedfromaMachinedesignedtoliftthem.

(b) There shall be no indemnity under this AdditionalBenefitagainst:

(1) damage or destruction of the goods caused directly orindirectlybyorarisingfromadefectinorthefragilityofthegoodsortheircontainer;or

(2) anylegalliabilityofwhatsoevernature.

(c) TheSumInsuredandExcessforthisAdditionalBenefitshallbetheamountsshownintheSchedulefor‘DamagetoLiftedGoods’andthelimitsofindemnityunderB.intherelevantSectionshallotherwiseapplyasifthegoodswereaMachine.

2. Multiple Crane Operation

(a) The Insurer shall indemnify the Insured against Damage toaMachineoccurringwhileitisbeingusedinaMultipleCrane Operation during the Period of Insurance.

(b) Multiple Crane Operation means the use of twoormore liftingmachines together, as described inthe edition of Australian Standard AS2550.1 or itsequivalentcurrentatthetimeoftheOperation.

(c) If the Insured or any person or Company engaged in the Multiple Crane Operation did not adopt and complywiththeproceduresandrequirementssetoutintheeditionofAustralianStandardAS2550.1oritsequivalentcurrentatthetimeoftheOperation,thereshallbenoindemnityunderthisAdditionalBenefit.

3. Expediting Costs

(a) IftheInsurerisliabletoindemnifytheInsuredundertherelevantSectionagainstDamagetoaMachine,the Insurer shall also indemnify the Insured against theExpeditingCosts.

(b) Expediting Costsmeansthereasonableadditionalcosts necessary to effect immediate temporary repairs ortoexpeditepermanentrepairstotheMachine.

(c) TheSumInsuredforthisAdditionalBenefitshallbethelesserof$10,000or20%oftheindemnitypayableagainst the Damage to the Machine under the relevant Section.

(d) If the Insured has not obtained the consent of theInsurerpriortoincurringtheExpeditingCosts,thereshallbenoindemnityunderthisAdditionalBenefit.

4. Recovery costs – no Damage

(a) IfaMachinebecomesimmobilisedorinaccessibleandunabletobeusedwithoutphysicaldamageordestructionandasa resultofasuddenandunexpectedeventoccurringduringthePeriodofInsurance,theInsurershall indemnify the Insured against the reasonableandnecessarycostsincurredwiththeInsurer’spriorwrittenconsentofrecoveringorattemptingtorecoverthe Machine.

(b) The indemnity under this Additional Benefit shallnotexceed$50,000or,ifanamountisstatedintheSchedulefor‘RecoveryCosts’,thatamount.

(c) TheExcessshallapplytoeachevent.

5. Recovery costs – Damage

(a) IftheInsurerisliabletoindemnifytheInsuredundertherelevantSectionagainstDamagebeingphysicaldamageordestructionofaMachine,theInsurershallalso indemnify the Insured against the reasonableandnecessarycosts,incurredwiththeInsurer’spriorwrittenconsent,of:

(1) if theMachine is destroyed, disposing of theMachine;

(2) dismantling, recovering and transporting theMachineforthepurposeofrepairingtheDamage;

(3) returningtheMachinetowhereitisusuallykeptfollowingthecompletionoftherepair;

(4) protecting the Machine from further Damagependingrepair;

(5) removing debris and fluids that have escapedfrom the Machine as a result of the Damage.

(b) The indemnityunder thisAdditionalBenefitshallnotexceed$250,000or,ifanamountisstatedintheSchedulefor‘RecoveryandTransportCosts’,thatamount.

(c) TheExcessshallapplytoeachMachineforeacheventof Damage.

6. Employees’ property damage

(a) The Insurer shall indemnify an Employee againstdamage,destructionorlossbytheftoftheEmployee’spersonalpropertycausedbyorarisingfromDamageto aMachine againstwhich the Insurer is liable toindemnify the Insured.

(b) TheindemnityunderthisAdditionalBenefitshallnotexceedtheleastof:

(1) thereasonablecostofrepairoftheproperty;

(2) theMarketValueofthepropertyimmediatelypriortotheDamage;

(3) anamountthatindemnifiestheEmployeeagainstthedamage,destructionorlossoftheproperty;

(4) $5,000.

Section 3

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7. Indemnity to hirer – Wet Hire

(a) Where:

(1) the Insured has hired out a Machine to a hirer on WetHireterms;and

(2) the hire agreement provides that:

(A) the Insured shall arrange insurance against DamagetotheMachineforthehirer;or

(B) theInsuredshallreleasethehirerfromliabilityforDamagetotheMachine;

the Insurer shall indemnify the hirer according to the terms of the relevant Section against Damage to the Machineoccurringwhileonhiretothehirer.

(b) TheindemnityunderthisAdditionalBenefitshallnotexceedthelesserof:

(1) the insurance or release that the hire agreement requirestheInsuredtoprovidetothehirer;

(2) the Sum Insured.

8. Appreciation in value

If:

(a) DamagetoaMachineoccurs;

(b) itsMarketValuewasequaltoorlessthanitsSumInsuredat the commencement of the Period of Insurance or thedateduringthePeriodofInsurancewhenitwasaddedtotheSchedule;and

(c) itsMarket Value immediately prior to the DamageexceededtheSumInsured;

for the purpose of indemnity against the Damage the Sum InsuredshallincreasebytheamountoftheincreaseoftheMarketValuebutbynomorethan25%oftheSumInsured.

9. Extra costs of reinstatement

IfrepairofaMachinewouldcausetheMachinetobeinaconditionbetterthanimmediatelypriortotheDamagebecauseeither:

(a) ofarequirementtocomplywithlegislation:

(1) withwhichtheInsuredisrequiredtocomplyasaresultoftheDamageandtoallowtheInsuredtorecommencenormaluseoftheMachine;and

(2) whichwasnotarequirementwithwhichtheInsuredwouldhavebeenrequiredtocomplyregardlesswhetherornottheDamagehadoccurred;

or

(b) repairrequiresapartthatisnolongeravailable;

the Insurershallpay for the repair,but theamountpayableforsuchrepairunderthisAdditionalBenefitinadditiontotheindemnityaslimitedunderclauseB.oftherelevantSectionshallnotexceedthelesserof:

(c) 10%oftheSumInsured;

(d) $50,000or,ifanamountisstatedintheSchedulefor‘ExtraCostsofReinstatement’,thatamount.

Additional Benefit applying to Section 1 automatically and to Section 2 only if shown in the Schedule10. Additions/deletions of machines

(a) The Insurer shall indemnify the Insured in accordance withthetermsoftherelevantSectionifDamagetoanAdditionalMachineoccurswithin60daysafteritsacquisitionbytheInsured.

(b) Additional Machinemeans,forthepurposeofthisAdditionalBenefitonly,amachine:

(1) notidentifiedintheSchedule;

(2) acquiredby the Insuredby purchase, lease orhire-purchase after the commencement of the PeriodofInsurance;

(3) havingaMarketValueatthetimeofitsacquisitionbytheInsurednogreaterthantheamountshownintheSchedulefor‘AdditionalMachines’;and

(4) ofatypesimilartotheMachinesidentifiedintheSchedule.

(c) The Sum Insured for an Additional Machine under this AdditionalBenefitshallbetheamountshownintheSchedulefor‘AdditionalMachines’.

(d) There shall be no indemnity under this AdditionalBenefit against Damage to an AdditionalMachineoccurringmorethan60daysafteritsacquisitionbythe Insured unless the Insured has:

(1) provided to the Insurer a written declarationdisclosingtheacquisitionoftheAdditionalMachineand all matters relevant to its insurance under the Policy;and

(2) paid the additional Premium for insuring the Additional Machine.

(e) IftheInsuredrequeststheInsurerinwritingtodeleteaMachinefromtheScheduleasfromaspecifieddate,the Insurer shall refund to the Insured the Premium forthedeletedMachinefortheunexpiredpartofthePeriod of Insurance andGeneral Condition F.18(b)shall not apply.

Additional Benefits applying to Section 1 or 2 only if shown in the Schedule11. Agreed value

(a) IftheScheduledescribestheSumInsuredforaMachineunder the relevant Section as ‘Agreed Value’, theindemnity under the relevant Section shall not belimitedbytheMarketValueoftheMachine,butshallbethelesserof:

(1) inthecaseofphysicaldamage,thereasonablecost of:

(A) repairingtheMachine;and

(B) re-commissioning,re-erectingandre-installingtheMachine;

Section 3

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to restore it to a condition equal to its conditionimmediatelypriortotheDamage;

(2) the Sum Insured.

(b) There shall be no indemnity under this AdditionalBenefit unless, before the commencement of thePeriod of Insurance:

(1) theInsuredprovidedtotheInsurer;and

(2) theInsureragreedwith;

alicensedvaluer’swrittenassessmentoftheMarketValueoftheMachine.

12. Market Value Plus

(a) IftheScheduledescribestheSumInsuredforaMachineunderSection1as‘MarketValuePlus’,theindemnityagainstDamagebeingtotalphysicallossordestructionoftheMachineshallbe:

(1) theSumInsured;or

(2) iftheMarketValueoftheMachineimmediatelyprecedingsuchDamageislessthan85%oftheSumInsured,thatMarketValueplus15%.

(b) Under this Additional Benefit, the Insured is notobligedtoprovideavaluationcertificatepriortothecommencement of the Period of Insurance.

13. Owner’s protection – excluding Dry Hire

(a) ExclusionsD.1(a)(2)toD.1(a)(7)andGeneralConditionF.2(a) in theGeneralSection shall not apply to therelevantSectioniftheExclusionorGeneralConditionwouldapplyowingtoconductofanEmployee.

(b) There shall be no indemnity under this AdditionalBenefitif,atthetimeoftheDamage:

(1) theEmployeewas:

(A) anowneroftheMachine;

(B) anInsured;

(C)adirectororpartnerofanInsured;or

(D)actingwiththeknowledgeof,orwasinfluencedby,anowneroftheMachine,anInsured,oradirectororpartnerofanInsured;

or

(2) theMachinewashiredoutbytheInsuredonDryHire terms.

14. Owner’s protection plus – including Dry Hire and Wet Hire

(a) ThisAdditionalBenefitappliestoMachinesoperatedbytheInsuredorhiredoutbytheInsuredonDryHireor Wet Hire terms.

(b) ExclusionsD.1(a)(2)toD.1(a)(7)andGeneralConditionF.2(a) in theGeneralSection shall not apply to therelevantSectioniftheExclusionorGeneralConditionwouldapplyowingtoconductofanEmployee,thehirer,oranypersonengagedintheoperationoftheMachine.

(c) There shall be no indemnity under this AdditionalBenefitif,atthetimeoftheDamage,theEmployee,thehirer,orthepersonengagedintheoperationoftheMachinewas:

(1) anowneroftheMachine;

(2) anInsured;

(3) adirectororpartnerofanInsured;or

(4) actingwiththeknowledgeof,orwasinfluencedby, an owner of theMachine, an Insured, or adirector or partner of an Insured.

(d) NothinginthisAdditionalBenefitshallaffecttheInsurer’srightsofsubrogation,includingagainstthehirer.

[Note:AdditionalBenefits13and14areavailableonlyasalternativestoeachotherandtheapplicableoneshallbeshownasapplyingintheSchedule.]

15. Hired-out plant – damage waivers

(a) Where:

(1) the Insured has hired out a Machine to a hirer on DryHireterms;and

(2) thehireagreementbetweentheInsuredandthehirer provides that:

(A) theInsuredshallarrangeforthehirertobeinsuredagainstDamagetotheMachine;or

(B) theInsuredshallreleasethehirerfromliabilityforDamagetotheMachine;

the Insurer shall indemnify the Insured or the hirer according to the terms of the relevant Section against DamagetotheMachineoccurringwhileitisonhireto the hirer.

(b) TheindemnityunderthisAdditionalBenefitshallnotexceedtheinsuranceorreleasethatthehireagreementrequirestheInsuredtoprovidetothehirer.

(c) There shall be no indemnity under this AdditionalBenefit if, at the time of the Damage, any personengaged in the operation of the Machine:

(1) wasanInsured;or

(2) wasadirectororpartnerofanInsured.

SECTION 4 – FINANCIAL PROTECTION

A. The Cover1. TheInsurershallindemnifytheInsuredagainstConsequential

LossthatoccursduringtheIndemnityPeriodifDamagetoorBreakdownDamageinaMachineoccurs:

(a) withintheTerritorialLimits;and

(b) duringthePeriodofInsurance;

and causes Interruption.

2. ThereshallbenoindemnityunderthisSectionunless:

(a) the Machine is insured against:

(1) Damage under Section 1 or other insurance equivalenttoSection1;or

Section 3 / Section 4

19

(2) Breakdown Damage under Section 5 or otherinsuranceequivalenttoSection5;

and

(b) theInsurerorotherinsurershaveagreedtoindemnifytheInsuredagainsttheDamageorBreakdownDamagethat caused the Interruption.

3. IfA.2(a)(2)ofthisSectionapplies,GeneralExclusionD.2(e)shall not apply to this Section.

4. The Insured shall take all reasonable steps to reduceConsequentialLoss,includingusingorhiringaSubstituteMachine during the Indemnity Period.

5. TheInsurershallhavetherightbutnottheobligationtoarrangethehirebytheInsuredofaSubstituteMachineduring the Indemnity Period.

6. There shall be no indemnity against anyConsequentialLoss that the Insured could have avoidedby taking allreasonablestepstoreduceConsequentialLoss,includingusingorhiringaSubstituteMachineduringtheIndemnityPeriod.

B. The Indemnity1. TheaggregateofallindemnitypayableunderthisSection

arisingfromtheoneeventshallnotexceedtheaggregateoftheLimitAnyOneLossshownintheScheduleforthisSection.

2. TheInsurershallindemnifytheInsuredagainstConsequentialLossinaccordancewithwhicheverofthefollowingCoverOptionstheScheduleshowsapplytothisSection:

Cover Option 1 – Loss of Revenue and Increased Cost of Working

TheInsured’sfinanciallossresultingfromtheInterruptioncalculatedasfollows:

[(A–B)+C]–D

Cover Option 2 – Loss of Revenue


(A–B)–D

Cover Option 3 – Increased Cost of Working


C – D

Cover Option 4 – Lease Payments Protection

EachLeasePaymentfortheMachinethatfirstbecomesdueandpayablebytheInsuredduringtheIndemnityPeriodunderaleaseorhire-purchaseagreement,calculatedas90%of:

(a) theamountoftheLeasePaymentequivalenttothepaymentforonefullmonth, if theIndemnityPeriodislessthanonemonth;or

(b) theamountof theLeasePaymentscalculatedonadailypro-ratabasis,iftheIndemnityPeriodexceedsone month.

Cover Option 5 – Lease Value Protection

The Lease Value for theMachine if, by reason of theDamageorBreakdownDamage:

(a) theMachine isdestroyedorpermanently lostor, intheopinionoftheInsurer,theMachineisuneconomictorepair;and

(b) the Lease Value becomes due and payable by theInsuredundertheleaseorhire-purchaseagreement;

calculatedastheamountbywhichtheLeaseValueexceedstheamountoftheindemnityfortheDamageorBreakdownDamageunderSection1or5ortheotherequivalentinsurancereferredtoinA.2ofthisSection,butnotexceeding20%of the amount of that indemnity.

3. InCoverOptions1,2and3:

A= the averageweekly revenuedirectly to the Insureddirectly from use of the Machine in the course of the Business for thewhole period of the Insured’spossessionorownershipoftheMachineduringthe12 months immediately preceding the Damage or Breakdown Damage, multiplied by the number ofweeksoftheIndemnityPeriod;

B= therevenuefromuseoftheMachineoraSubstituteMachine in the course of the Business during theIndemnityPeriod;

C = the increase in the cost of normal use of the Machine in thecourseoftheBusinessreasonablyandnecessarilyincurredbytheInsuredduringtheIndemnityPeriodtoreducelossofrevenue,togetherwiththecostofhireofaSubstituteMachineduringtheIndemnityPeriod;

D = all savings during the Indemnity Period in the cost of use of the Machine resulting from the Damage or BreakdownDamage.

4. UnderCoverOption4,theInsurershallnotindemnifytheInsured against any balloon payment or residual valuepayment for the Machine.

5. UnderCoverOptions4and5,theInsurershallnotindemnifythe Insured against:

(a) anypaymentthatfirstbecamedueforpaymentbeforetheoccurrenceoftheDamageorBreakdownDamage;and

(b) anyinterestonsuchpayment.

6. TheaggregateofindemnityagainstallConsequentialLossunder a Cover Option during the Period of Insurance shall notexceedtheSumInsuredforthatCoverOption.

7. TheindemnityforConsequentialLossarisingfromeacheventofDamageorBreakdownDamageshallnotexceedthebalanceoftheSumInsuredfortherelevantCoverOption,after deducting the aggregate of all amounts already paid bytheInsurerundertheCoverOptionduringthePeriodof Insurance.

Section 4

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C. Definitions for Section 4Consequential Loss means the financial loss of the Insured describedinwhicheverCoverOptionisshownintheScheduleto apply to this Section.

Indemnity Period means the period of continuous Interruption:

1. commencingattheendoftheInitialPeriod;and

2. ending at the earlier of:

(a) repairorreplacementoftheMachine;

(b) the end of the number of weeks of the ‘IndemnityPeriod’shownintheSchedule.

Initial Period meanstheperiodending14daysaftertheInsuredgives notice of the Interruption to the Insurer.

Interruption means prevention of or interferencewith thenormal use or operation of a Machine to perform the functions forwhichitwasdesignedinthecourseoftheBusinesscausedbyandcommencinguponitsDamageorBreakdownDamage.

Lease Payment means a periodic payment for the Machine under a lease or hire-purchase agreement relating to the Machine.

Lease ValuemeansthetotalamountremainingtobepaidandnotalreadydueandpayablefortheMachineunderthetermsof the lease or hire-purchase agreement relating to the Machine immediatelyprecedingtheDamageorBreakdownDamage.

Substitute Machinemeansoneormoremachinesused,orhiredandused,bytheInsuredasasubstitutefororalternativetotheMachinebyreasonoftheInterruption.

SECTION 5 – BREAKDOWN

A. The Cover1. TheInsurershallindemnifytheInsuredagainstBreakdown

Damage that occurs in a Machine:

(a) withintheTerritorialLimits;and

(b) duringthePeriodofInsurance.

2. GeneralExclusionD.2(d)shallnotapplytothisSection.

B. The Indemnity1. TheaggregateofallindemnitypayableunderthisSection

arisingfromtheoneeventshallnotexceedtheaggregateoftheLimitAnyOneLossshownintheScheduleforthisSection.

2. TheindemnityagainstBreakdownDamageoccurringinaMachineunderthisSectionshallnotexceedtheleastof:

(a) thereasonablecostof:

(1) dismantling and transporting the Machine if necessaryforthepurposeofrepairingthepart;

(2) repairing(including,ifnecessary,replacing)theparttoaconditionequaltoitsconditionimmediatelypriortotheBreakdownDamage;and

(3) re-commissioning, re-erecting and re-installingtheMachinefollowingtherepair;

(b) theMarketValueoftheMachineimmediatelypriortotheBreakdownDamage;

(c) an amount that indemnifies the Insured against the BreakdownDamage;

(d) the Sum Insured.

3. The indemnity for the replacement of a part that is no longer available shall not exceed themanufacturer’sorsupplier’slastpublishedpriceforthatpart.

4. TheExcessshallapplytoeachMachineforeacheventofBreakdownDamage.

SECTION 6 – ROAD RISK

A. The CoverTheInsurershallindemnifytheInsuredagainstLegalLiabilityfor Personal Injury or Property Damage:

1. firstoccurringduringthePeriodofInsurance;and

2. causedbyanOccurrencewithintheTerritorialLimitsarisingfromusing,operatingortowingaRoadVehicleprimarilyasavehicleinconnectionwiththeBusiness.

B. Limits of Indemnity1. The indemnity for Legal Liability arising from the one

OccurrenceshallnotexceedtheSumInsuredandshallbefurtherlimitedasfollows:

(a) forLegalLiabilityarisingfromorinconnectionwithDangerousGoods,thebalanceofthesumof$500,000after deducting the aggregate of all amounts already paid under this Section during the Period of Insurance bytheInsurerforLegalLiabilityofsuchkind.

2. IftheInsuredismorethanonepersonorCompany,theSum Insured (includingas limited inB.1(a)above) shallapply to the aggregate of all Legal Liability of all suchpersons and Companies arising directly or indirectly from the one Occurrence.

3. TheExcessshallapplyperOccurrence toall indemnityunder thisSection, inclusiveofany indemnityunderanAdditionalBenefit.

C. Additional Benefits1. Defence Costs

(a) The Insurer shall:

(1) havetherightbutnottheobligationtoconductthe defence against a claim against the Insured underthisSection;and

(2) indemnify the Insured against the Defence Costs incurred by the Insured with the prior writtenconsent of the Insurer in relation to a claim against theInsuredforLegalLiabilityagainstwhichtheInsurer is liable to indemnify the Insuredunderthis Section.

Section 4 / Section 5 / Section 6

21

(b) ThetotalamountpayablebytheInsurerforDefenceCostsunderC.1(a)aboveshallnotbelimitedbytheSumInsuredforthisSection,butiftheLegalLiabilityexceedstheindemnityaslimitedunderB.above,theindemnityfortheDefenceCostsshallbereducedtothat proportion of the Defence Costs as the indemnity aslimitedunderB.abovebearstotheLegalLiability.

[Note:GeneralConditionF.7(a)givestheInsurertherightto investigate, instruct lawyers to represent the Insuredand conduct the Insured’s defence, and negotiate anddirectthesettlementofaclaim.]

2. Extended Road Risk cover for drivers and passengers

‘Insured’shallinclude,inthisSectiononly:

(a) a person:

(1) using,operatingor towingaRoadVehiclewiththeInsured’spermission;

(2) holdingavalidAustraliandriver’slicence;and

(3) neitherineligiblefornorpreviouslyrefusedmotorvehicleinsuranceofanydescription;

or

(b) a passenger in, on, boarding or alighting from theRoadVehiclewiththeInsured’spermission.

3. Extended Road Risk cover for substitute vehicles

‘Road Vehicle’ shall include aMotor Vehicle registeredforuseasaMotorVehicleasrequiredbylawthatisnotownedbyanInsuredbutisinanInsured’spossessioninsubstitutionforaRoadVehiclewhiletheRoadVehicleisundergoing repairs or servicing.

4. Extended Road Risk cover for vehicle additions and deletions

(a) TheInsurershallindemnifytheInsuredagainstLegalLiabilityforPersonalInjuryorPropertyDamagefirstoccurring during the Period of Insurance and caused byanOccurrencecausedbyorarising fromusing,operating or towing a Road Vehicle primarily as aMotorVehicleinconnectionwiththeBusinessthat:

(1) isnotidentifiedintheSchedule;and

(2) was firstacquiredby the Insuredbypurchase,lease or hire-purchase:

(A) after the commencement of the Period of Insurance;and

(B) nomorethan60daysbeforetheOccurrence.

(b) There shall be no indemnity under this AdditionalBenefitinconnectionwithanOccurrencemorethan60daysafteracquisitionoftheMotorVehiclebytheInsured unless the Insured has:

(1) provided to the Insurer a written declarationdisclosing the acquisitionof theMotorVehicleand all matters relevant to its insurance under thisSection;and

(2) paid the Premium charged by the Insurer forinsuringtheMotorVehicle.

(c) IftheInsuredrequeststheInsurerinwritingtodeleteaRoadVehiclefromtheScheduleasfromaspecifieddate,theInsurershallrefundtotheInsuredthePremiumforthedeletedRoadVehiclefortheunexpiredpartofthePeriodofInsuranceandGeneralConditionF.18(b)shall not apply.

5. Extended Road Risk cover for conditionally or temporarily registered vehicles

Thedefinitionof‘RoadVehicle’shallincludeaMotorVehicleidentified in the Schedule that is not registered as at the commencementofthePeriodofInsurance,butisfullyorconditionally registered or is operating under a temporary road permit at the time of the Occurrence.

6. Cover for principals

The Insurer shall indemnify the principal in any contract withanInsuredasiftheprincipalwereanInsuredunderthis Section, but only against the principal’s vicariousLegalLiabilityforPropertyDamagecausedbyorarisingfromtheInsuredusing,operatingortowingaRoadVehicleprimarily asaMotorVehicle for theprincipal under thecontractwiththeprincipalinthecourseoftheBusiness.

7. Cover as principal

InrespectofaMotorVehiclenotownedorsuppliedbyorhiredtoanInsured,theInsurershallindemnifytheInsuredagainstLegalLiabilityforPropertyDamagecausedbyorarisingfromapersonotherthananInsuredusing,operatingortowingtheMotorVehicle:

(a) fororonbehalfoftheInsured;

(b) withtheauthorityoftheInsured;

(c) inconnectionwiththeBusiness;and

(d) during the Period of Insurance.

8. Hired out Road Vehicles – damage waivers

(a) Where:

(1) theInsuredhashiredoutaRoadVehicletoahireronDry-Hireterms;and

(2) thehireagreementbetweentheInsuredandthehirer provides:

(A) that the Insured shall arrange insurance for the hireragainstlegalliabilityofthekindprovidedbythisSection;or

(B) that the Insuredshall releasethehirer fromliabilityforlegalliabilityincurredbytheInsuredarisingfromthehirerusing,operatingortowingtheRoadVehicle;

the Insurer shall indemnify the hirer according to the termsofthisSectionasifthehirerwereanInsured.

Section 6

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D. ExclusionsInadditiontotheExclusionsintheGeneralSection:

1. TheInsurershallnotindemnifytheInsuredagainstLegalLiabilitycauseddirectlyorindirectlyby,arisingfromorinconnectionwith:

(a) using,operatingortowingaRoadVehicle:

(1) inarace,speedtrialorreliabilitytrial;

(2) whileinanunsafeorunroadworthycondition;

(3) tocarryalargernumberofpassengersthanallowedbylaworbyitsspecifications;

(4) tocarryortowaloadheavierorlargerthanallowedbylaworbyitsspecifications;

(5) tocarry,orotherwiseinconnectionwith,asubstanceclassifiedas‘goodstoodangeroustotransport’or their equivalent in theAustralianDangerousGoodsCode;

(6) for an unlawful purpose, unless the InsuredprovesthattheInsuredwasunawareandcouldnotreasonablyhavebecomeawareofsuchuse;

(7) byaperson:

(A) notproperlyqualifiedorsuitablyexperiencedtouse,operateortowtheRoadVehicle;

(B) notlicensed,orholdinganimproperlyobtainedlicence,ornotcomplyingwithlicenceconditionstouse,operateortowtheRoadVehicle;or

(C) suffering from a physical or mental impairment of ability to use, operate or tow the RoadVehicle;

(D)under the influenceoforaffectedbydrugsoralcohol;or

(E) withalevelofdrugsoralcoholinthebreath,bloodorurineinexcessofthatpermittedbylawtodrivetheRoadVehicle;

ineachcasein(A)to(E)aboveunlesstheInsuredproves that it:

(F) did not consent to the Road Vehicle beingoperatedordrivenbythatperson;and

(G)wasunawareandcouldnotreasonablyhavebecome aware of thematters in (A) to (E)above;

(8) primarilydesignedforlifting,lowering,loadingorunloadingwhenperformingoneormoreofsuchfunctions;

(b) usingoroperating:

(1) aRoadVehicle;or

(2) anymachine, tool or apparatus attached to orformingpartofaRoadVehicle;

asaToolofTrade;or

(c) delivering or collecting a load to and from a Road Vehicle,butnottheoperationofloadingorunloadingaRoadVehicle.

2. TheInsurershallnotindemnifytheInsuredagainstLegalLiabilityforPersonalInjurywhere,atthetimeandplaceoftheOccurrence,theRoadVehiclewasunderastatutoryschemefor,orwasrequiredbylawtobeinsuredagainst,liabilityforpersonalinjury(whetherlimitedornot),excepttotheextentthattheschemeorinsurancedoesnot,byreasonother thanan Insured’sbreachof law,whollyorpartiallyindemnifytheInsuredagainstthatLegalLiability.

SECTION 7 – BROADFORM LIABILITy

A. The CoverTheInsurershallindemnifytheInsuredagainstLegalLiabilityforPersonalInjury,PropertyDamageorAdvertisingInjury:

1. firstoccurringduringthePeriodofInsurance;and

2. causedbyanOccurrenceinconnectionwiththeBusiness.

B. Limits of Indemnity1. The indemnity for Legal Liability arising from the one

OccurrenceshallnotexceedtheSumInsuredandshallbefurtherlimitedasfollows:

(a) forLegalLiabilityarisingfromProducts,thebalanceofthe Sum Insured after deducting the aggregate of all amountsalreadypaidbytheInsurerunderthisSectionduring thePeriodof Insurance forLegalLiability inconnectionwithProducts;

(b) forLegalLiabilityforsuchpartofPropertyDamagebeing physical damage or destruction of, but notresultantlossofuseof,tangiblepropertyinthephysicalpossession or legal control of:

(1) an Insured,adirectororpartnerofan Insured,oranEmployee,otherthan:

(A) propertyexcludedbyExclusionE.1(e)intheGeneralSection;

(B) premisesleased,rentedorhiredtotheInsured;

(2) the driver of a vehicle while such property issuspended from a Machine designed to lift that property(seeExclusionE.1(e)(4) intheGeneralSection);

thebalanceofthesumof$250,000afterdeductingtheaggregateofallamountsalreadypaidbytheInsurerunder this Section during the Period of Insurance forLegalLiabilityforPropertyDamageofsuchkind;

(c) for Legal Liability for PropertyDamage caused by,arisingfromorinconnectionwith:

(1) vibration;

(2) removal or weakening of or interference withsupportforlandorbuildings;

thebalanceofthesumof$500,000afterdeductingtheaggregateofallamountsalreadypaidbytheInsurerunder this Section during the Period of Insurance forLegalLiabilityforPropertyDamageofsuchkind.

Section 6 / Section 7

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2. IftheInsuredismorethanonepersonorCompany,theSumInsured(includingaslimitedinB.1(a)toB.1(c)above)shallapplytotheaggregateofallLegalLiabilityofallsuchpersons and Companies arising directly or indirectly from the one Occurrence.

3. TheExcessshallapplyperOccurrence toall indemnityunder this Section.

C. Additional Benefits1. Defence Costs

(a) The Insurer shall:

(1) havetherightbutnottheobligationtoconductthe defence against a claim against the Insured underthisSection;and

(2) indemnify the Insured against the Defence Costs incurred by the Insured with the prior writtenconsent of the Insurer in relation to a claim against theInsuredforLegalLiabilityagainstwhichtheInsurer is liable to indemnify the Insuredunderthis Section.

(b) ThetotalamountpayablebytheInsurerforDefenceCostsunderC.1(a)aboveshallnotbelimitedbytheSumInsuredforthisSection,butiftheLegalLiabilityexceedstheindemnityaslimitedunderB.above,theindemnityfortheDefenceCostsshallbereducedtothat proportion of the Defence Costs as the indemnity aslimitedunderB.abovebearstotheLegalLiability.

[Note:GeneralConditionF.7(a)givestheInsurertherightto investigate, instruct lawyers to represent the Insuredand conduct the Insured’s defence, and negotiate anddirectsettlementofaclaim.]

2. Additional payments

The Insurer shall indemnify the Insured against cost incurred bytheInsured:

(a) insupplyingfirstaidinconnectionwiththePersonalInjury;or

(b) for temporary repairs, shoring up or protection ofphysicalpropertynecessitatedbythePropertyDamage;

buttheindemnityforsuchcostshallnotexceedthebalanceof the Sum Insured after deducting the aggregate of all amountsalreadypaidby the Insurerunder thisSectionduring the Period of Insurance for Legal Liability andAdditionalPayments;

3. Cover for others

The Insurer shall indemnify, as if theywere an Insuredunder this Section:

(a) asubsidiarycompanyoftheInsuredifincorporatedwithinAustralia;

(b) anEmployee, executive officer, director, partner orshareholderoftheInsuredorasubsidiarycompanyinC.3(a)above,butineachcaseonlywhenthatLegalLiabilityarisesfromtheiractingwithinthescopeoftheirdutiesfortheInsured;

(c) aseniorexecutiveEmployee,directororpartneroftheInsuredorasubsidiarycompanyinC.3(a)above,butineachcaseonlywhenthatLegalLiabilityarisesfromworkcarriedoutforthembyEmployees;

(d) anoffice-bearerormemberofany:

(1) canteenorsocial,sporting,welfareorchild-careorganisation;or

(2) firstaid,fireorambulanceservice;

formedbytheInsuredorwiththeInsured’sconsent,but onlywhen that Legal Liability arises from theiractingwithinthescopeoftheirdutiesfortheInsured,organisationorservice;

(e) the principal in any contract with an Insured, butonlyagainst theprincipal’svicariousLegalLiabilityfor Personal Injury or Property Damage caused byorarising fromthe Insuredperformingwork for theprincipalunderthecontractwiththeprincipalinthecourseoftheBusiness.

D. ExclusionsInadditiontotheExclusionsintheGeneralSection,theInsurershallnotindemnifytheInsuredagainstLegalLiabilitycauseddirectlyorindirectlyby,arisingfromorinconnectionwith:

1. Motor Vehicles

theownership,possession,operation,useortowingbyoronbehalfofanInsuredofaMotorVehiclethat,atthetime and place of the Occurrence:

(a) wasunderastatutoryindemnityschemefor,orwasrequired by law to be insured against, liability forpersonalinjuryorpropertydamage(whetherlimitedornot);or

(b) was required by law to be registered for use as avehiclebutwasunregistered;or

(c) wasregisteredforuseasavehicle;

butthisExclusionshallnotapplytoLegalLiabilityfor:

(d) PersonalInjurytotheextentthatthestatutoryindemnityschemeorinsurance,byreasonotherthananInsured’sbreachoflaw,doesnotindemnifytheInsuredagainstthatLegalLiability;

(e) Property Damage occurring during:

(1) useoroperationoftheMotorVehicleasaToolofTrade;

(2) useoroperationofanymachine,toolorapparatusattachedtoorformingpartoftheMotorVehicleasaToolofTrade;

(3) use or operation of aMotor Vehicle primarilydesignedforlifting,lowering,loadingorunloadingtoperformoneormoreofsuchfunctions;

(4) theoperationofloadingorunloadingtheMotorVehicle;

(5) use or operation of the Motor Vehicle in thetemporary possession or custody of the Insured forthepurposeofparkingit;and

Section 7

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(6) drivingtheMotorVehicleonapublicfootpathorpublicpedestrianwalkwayforthepurposeoftheMotorVehicle’saccessbetweenitsconveyanceandtheplaceofeitherperformingworkorundergoingservicing,maintenanceorrepair.

2. Professional risks

theprovisionof,failuretoprovide,orerrororomissioninprovision of a professional service or advice (other than first-aid or any medical or non-medical emergency services totheperson)byanInsuredoranotherpersonorCompany,but this Exclusion shall not apply when the service oradvicewasprovidedbyanInsuredfornochargeorfee.

3. Designs, plans, specifications, patterns and formulas

anydesign,plan,specification,patternorformulaprovidedby an Insured or another person or Company, but thisExclusionshallnotapplywhensuchthingswereprovidedbyanInsuredfornochargeorfee.

4. Faulty workmanship

thecostofperforming,completing,correctingorimprovinganyworkundertakenbytheInsured.

5. Products defect

(a) adefectinorharmfulqualityofanyProductthatwasknownorsuspectedtoexistbyanInsuredbeforetheProductleftthepossessionandcontroloftheInsured;

(b) anInsured’sbreachofGeneralConditionF.19oranInsured’sfailure,afterbecomingawareofaProductDefect,tolocateandrecalltheProduct;

(c) Property Damage to Products caused directly or indirectlybyorarisingfromanydefect,harmfulnatureorunsuitabilityoftheProducts.

6. Aircraft, hovercraft and Watercraft

theownership,maintenance,operationoruseof:

(a) aircraft;

(b) hovercraft;

(c) Watercraftgreaterthan10metresinlength,unless:

(1) theWatercraftisbeingoperatedbyanindependentcontractor;or

(2) theWatercraftisnotownedorbeingoperatedbyan Insuredbut isbeingused forentertainmentforthepurposeoftheBusiness.

7. Aircraft products

anyProductthatis,orthatanInsuredcouldreasonablybeexpectedtoknowis,installedinorusedinanaircraft.

8. Loss of Use

lossofuseoftangiblepropertythathasnotbeenphysicallydamaged,lostordestroyedcauseddirectlyorindirectlybyorarisingfrom:

(a) delayorlackofperformanceofanagreementbyoronbehalfofanInsured;or

(b) failureofProductstomeetthelevelofperformance,quality, fitness or durability expressly or impliedlywarranted or represented by an Insured, but thisExclusionshallnotapply to lossofuseof tangibleproperty resulting from sudden and accidental physical damage, lossordestructionofProductsafter theyareputtousebypersonsorCompaniesotherthanan Insured.

9. Battery and assault

batteryorassaultcommittedbyoratthedirectionofanInsuredexceptforthepurposeofpreventingorremovingdanger to persons or property.

10. Discrimination, harassment and unfair dismissal

discrimination,harassmentorunfairdismissal.

11. Advertising

(a) Advertising Injury arising out of:

(1) breachofcontract,otherthanmisappropriationofadvertisingideasunderanimpliedcontract;

(2) thewrongdescriptionofthepriceofanInsured’sproduct;or

(3) the failure of an Insured’s product to conformwithadvertisedperformanceorquality;

or

(b) AdvertisingInjuryincurredbyanInsuredwhoseprincipaloccupationorbusinessisadvertising,broadcasting,publishingortelecasting.

12. Defamation

thepublicationorutteranceofanydefamatoryordisparagingmaterial:

(a) priortothecommencementofthePeriodofInsurance;

(b) byanInsuredoratanInsured’sdirectionwithknowledgeofitsfalsity;or

(c) iftheInsured’sbusinessisadvertising,broadcastingor telecasting.

13. Vibration and removal of support

(a) vibration;or

(b) removalorweakeningoforinterferencewithsupportforlandorbuildings;

exceptasprovidedinB.1(c)ofthisSection.

14. Tobacco

theinhalationoringestionof,orexposureto:

(a) tobacco,tobaccoproductsorderivativesoftobacco;

(b) tobaccosmoke;

(c) anyingredientoradditivepresentinanyarticles,itemsorgoodsthatalsocontainorincludetobacco.

Section 7

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15. North America

Personal Injury and Property Damage:

(a) occurringinNorthAmerica;

(b) thesubjectofaclaimorproceedingsinNorthAmerica;or

(c) subjecttothelawofNorthAmerica;

but this Exclusion shall not apply if the Legal Liabilityarises fromor in connectionwith thepresenceoutsidetheTerritorialLimitsofanypersonreferredtoinAdditionalBenefitC.3(b)ofthisSectionwhois:

(d) normallyresidentwithintheTerritorialLimits;and

(e) notundertakingorperformingmanualworkorsupervisionofworkofanykindinNorthAmerica;

in which event the total amount payable for the LegalLiabilityandDefenceCostsshallnotexceedthelimitofindemnityunderB.ofthisSection.

16. Products Recall

loss,costsorexpenseincurredbytheInsuredforlossofuse,withdrawal, recall, inspection, repair, replacement,adjustment, removal or disposal of Products or anytangiblepropertyofwhichtheyformpartiftheProductsarewithdrawn from themarketor fromusebecauseofaknownorsuspecteddefect,deficiency,inadequacyordangerous condition of the Products.

Section 7

Contact:

Head Office NewcastleHunter Mall Chambers175 Scott StPO Box 656Newcastle NSW 2300P: (02) 4925 6666F: (02) 4929 6621

Sydney OfficeLevel 9, 56 Station StParramatta NSW 2150P: (02) 9848 6645F: (02) 9848 6522

Perth Office49 Ord StPO Box 1664West Perth WA 6872P: (08) 9481 3773F: (08) 9481 8773

Brisbane Office5/192 Evans RdPO Box 202Salisbury QLD 4107P: (07) 3272 7502F: (07) 3272 7503

Melbourne OfficeSuite 1, 1st Floor176-178 High StreetPO Box 2130Preston VIC 3072P: (03) 9495 1633F: (03) 9495 1644

Adelaide OfficeLevel 13,45 Pirie StreetAdelaide SA 5000P: (08) 8213 5318F: (08) 8202 2300

w: www.uaa.com.au e: [email protected]

Industrial Special Plant (ISP) is underwritten by QBE Insurance (Australia) Limited. ABN 78 003 191 035, AFSL 239545 of 82 Pitt Street, Sydney. Underwriting Agencies of Australia Pty Ltd (UAA). ABN 86 003 565 302, AFSL 238517

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