<p style="text-align:justify">WHEREAS the Insured named in the Schedule hereto has made to the <strong>ALLIEDBANKERS INSURANCE CORPORATION </strong>(hereinafter called &ldquo;the Insurers&rdquo;) a written proposal and has paid the premium stated in the Schedule as consideration for the indemnity hereinafter contained for the period of Insurance stated in the Schedule.</p>

<p style="text-align:justify">Now it is hereby agreed that the Insurers will during the period covered by this Policy or any renewal thereof and subject to the Exceptions, Definitions and Conditions contained herein or endorsed hereon indemnify the Insured against &ndash;</p>

<ol>
	<li style="text-align:justify">Damage (other than by fire) to the boiler or pressure vessel described in the Schedule hereto and to other property of the Insured;<br />
	&nbsp;</li>
	<li style="text-align:justify">Liability of the Insured at law for damage to property not belonging to the Insured;<br />
	&nbsp;</li>
	<li style="text-align:justify">Liability of the Insured at law on account of fatal or non-fatal injuries to any persons other than the Insureds own employees or workmen or members of the Insured&rsquo;s family,</li>
</ol>

<p style="text-align:justify">caused by and solely due to explosion or collapse as hereinafter defined of any boiler or pressure vessel described in the Schedule whilst in the course of ordinary working.</p>

<p style="text-align:justify">Provided that the total liability of the Insurers in respect of any one boiler or pressure vessel in any one year of insurance shall not exceed the limit of indemnity set opposite thereto in the Schedule.</p>

<p style="text-align:justify">Provided also that in case of any claim against the Insured for damages as aforesaid the Insurers will in addition pay all costs and expenses recovered by any claimant against the Insured or incurred with the written consent of the Insurers in resisting such claim.</p>

<p style="text-align:justify">Exceptions</p>

<p style="text-align:justify">The Insurers shall not be liable for &ndash;</p>

<ol>
	<li style="text-align:justify">Defects due to wearing away or the wasting of the materials of a boiler or a pressure vessel whether by leakage, corrosion or by the action of the fuel or otherwise, the grooving or the fracturing of any of the parts of a boiler or a pressure vessel, or for deterioration generally, or for the development of cracks, blisters, laminations and other flaws, or for fractures, failures of joints within the range of steam or feed pipes, or for bulging and deformation due to overheating of tubes (unless such defects, fractures, failures or bulging result in explosion or collapse), or for the cracking of sections of cast-iron heating boilers or other vessels constructed of cast-iron.<br />
	&nbsp;</li>
	<li style="text-align:justify">The failure of individual tubes in boilers of the water tube, locomotive or other multi-tubular types, in superheaters or in economizers (unless such defects result in explosion or collapse).<br />
	&nbsp;</li>
	<li style="text-align:justify">Damage to property belonging to the Insured or held by him in trust or on commission for which he is responsible caused by fire arising from explosion or collapse or any other cause whatsoever, or damage to the plant resulting from any extraneous cause.<br />
	&nbsp;</li>
	<li style="text-align:justify">Damage and/or liability caused by the willful act or willful neglect of the Insured.<br />
	&nbsp;</li>
	<li style="text-align:justify">Loss sustained by stoppage of work.<br />
	&nbsp;</li>
	<li style="text-align:justify">Loss or damage which either in origin or extent is directly or indirectly, proximately or remotely occasioned by or contributed to by any of the following namely &ndash;
	<ol start="1" style="list-style-type:lower-alpha">
		<li>storm, typhoon, hurricane, volcanic eruption, earthquake or other convulsion of nature.</li>
		<li>loss or damage directly or indirectly caused by or arising out of war, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, riot, strike, lock-out, civil commotion, military or usurped power, or malicious persons acting on behalf of or in connection with any political organization, confiscation, commandeering, requisition or destruction of or damage to property by order of the government de jure or de facto by any public authority, nuclear reaction, nuclear radiation or radioactive contamination.</li>
		<li>any tests other than tests at a pressure not exceeding the maximum pressure permitted by the Inspecting Authority.</li>
	</ol>
	</li>
</ol>

<p style="text-align:justify">Definitions</p>

<p style="text-align:justify">The following terms when used in the policy shall have the undermentioned meanings &ndash;</p>

<ol>
	<li style="text-align:justify">&ldquo;Boiler&rdquo; shall mean any fire closed container or a combined container-piping system in which steam is generated under pressure.&nbsp; When used in the Schedule the term &ldquo;boiler&rdquo; includes fittings, built-in superheaters and economizers but does not include steam or feed-water piping or separate economizers, the explosion of such items being covered by the policy only if specifically listed in the Schedule.<br />
	&nbsp;</li>
	<li style="text-align:justify">&ldquo;Vessel&rdquo; shall mean any unfired closed container under steam or air pressure.<br />
	&nbsp;</li>
	<li style="text-align:justify">&ldquo;Explosion&rdquo; shall mean the sudden and violent rending or tearing apart of the structure of a boiler or vessel, or any part or parts thereof by force of internal steam, air or fluid pressure, causing bodily displacement or said structure accompanied by the forcible ejectment of its containers.<br />
	<br />
	&ldquo;Explosion&rdquo; shall also mean any damage to the structure of the boiler by force of the sudden and accidental combustion of ignited furnace of flue gases.<br />
	&nbsp;</li>
	<li style="text-align:justify">&ldquo;Collapse&rdquo; shall mean the sudden and dangerous distortion of any part of a boiler or vessel caused by the crushing stress of external steam of fluid pressure whether attended by rupture or not; it shall not mean any slowly developing deformation due to any cause.</li>
</ol>

<p style="text-align:justify">Flue Gas Explosion:&nbsp; In accordance with the definition of the word &ldquo;Explosion&rdquo;, it is hereby expressly understood and agreed that indemnity provided by the policy shall extend to apply to damage (other than by fire) liability costs and expenses as set forth in the Policy directly consequent upon and solely due to explosion of ignited gases in the furnaces of flues of such plant.</p>

<p style="text-align:justify">Conditions</p>

<ol>
	<li style="text-align:justify">The Insured shall take all reasonable steps to maintain the insured property in efficient working order, and to ensure that no item is habitually or intentionally overloaded.&nbsp; The Insured shall fully observe all government, statutory, municipal or other binding regulations in force concerning the operation of the insured property.<br />
	&nbsp;</li>
	<li style="text-align:justify">&nbsp;
	<ol start="1" style="list-style-type:lower-alpha">
		<li>The&nbsp; Insurer&rsquo;s&nbsp; officials&nbsp; shall&nbsp; at&nbsp; all&nbsp; reasonable times have the right to inspect and examine&nbsp; any&nbsp; property&nbsp; insured&nbsp;hereunder and the Insured shall provide the officials of the Insurers with all details and information necessary for&nbsp; the assessment of the risk.&nbsp; The Insurers shall provide the Insured with a copy of the inspecting official&rsquo;s report, which shall, however, be treated as strictly confidential, both by the Insured and the Insurers.<br />
		&nbsp;</li>
		<li>If&nbsp; an&nbsp; essential increase in the original risk has occurred, the Insured will forthwith notify the Insurers in&nbsp; writing.&nbsp;This applies also if fuel is to be used other than that for which the boiler was designed or which was used at the time of effecting the insurance.&nbsp; Non-compliance with this condition will result in suspension of this Insurance in respect of the item or items where the increase of risk has occurred.<br />
		&nbsp;</li>
	</ol>
	</li>
	<li style="text-align:justify">In the event of any occurrence which might give rise to a claim under the Policy the Insured shall
	<ol start="1" style="list-style-type:lower-alpha">
		<li>immediately notify the Insurers by telephone or telegram as well as in writing;</li>
		<li>take all steps within his power to minimize the extent of the loss or damage;</li>
		<li>preserve&nbsp; the&nbsp; damaged or defective parts and make them available for inspection by an official or surveyor of&nbsp; the&nbsp;Insurers;</li>
		<li>furnish all such information and documentary evidence as the Insurers may require;<br />
		<br />
		<span style="font-size:13px">the Insurers may at their own option repair, reinstate or replace what is damaged or pay in cash for the loss or damage.</span><br />
		<br />
		<span style="font-size:13px">The Insurers shall not be liable for the cost of any repairs undertaken by the Insured without the permission in writing of the Insurers.</span><br />
		<br />
		<span style="font-size:13px">The Insurers shall not be liable for any loss or damage arising out of any occurrence of which no notice has been received by the Insurers within fourteen (14) days of its occurrence.</span><br />
		<br />
		<span style="font-size:13px">Upon notification of a claim being given to the Insurers, the Insured may carry out the repairs or replacement of any minor damage, but in all other cases a representative of the Insurers shall have the opportunity of inspecting the damage before any alterations are effected.&nbsp; If an inspection by a representative of the Insurers does not take place within a period of ten (10) days from the date of the notification of the claim, the Insured shall be entitled to proceed with the repairs or replacement.&nbsp; Nothing contained herein shall prevent the Insured from taking such steps as are absolutely necessary to maintain the operation of the plant.</span><br />
		<br />
		<span style="font-size:13px">The liability of the Insurers under this Policy in respect of any item of property sustaining damage, for which indemnity is provided, shall cease if the said item continues in operation without being repaired to the satisfaction of the Insurers.</span><br />
		<br />
		<span style="font-size:13px">The amount of any loss or damage for which an Insurer may be liable, under this policy, shall be paid within thirty (30) days after proof of loss is received by the Insurer and ascertainment of the loss or damage is made either by agreement between the Insured and the Insurer or by arbitration; but if such ascertainment is not had or made within sixty (60) days after such receipt by the Insurer of the proof of loss, then the loss or damage shall be paid within ninety (90) days after such receipt.&nbsp; Refusal or failure to pay the loss or damage within the time prescribed herein will entitle the Assured to collect interest on the proceeds of the policy for the duration of the delay at the rate of six percent (6%) per annum, unless such failure or refusal to pay is based on the ground that the claim is fraudulent.</span><br />
		&nbsp;</li>
	</ol>
	</li>
	<li style="text-align:justify"><span style="font-size:13px">​</span>If a claim is in any respect fraudulent, or if any false declaration is made or used in support thereof, or if any fraudulent means or devices are used by the Insured or anyone acting on his behalf to obtain any benefit under this Policy, or if a claim be made and rejected and an action or suit be not commenced either in the Insurance Commission or any Court of competent jurisdiction within twelve (12) months from receipt of notice of such rejection, or in case of arbitration taking place as provided herein, within twelve (12) months after due notice of the award made by the arbitrator or arbitrators or umpire, then the claim shall for all purposes be deemed to have been abandoned and shall not thereafter be recoverable hereunder.<br />
	&nbsp;</li>
	<li style="text-align:justify">The Insured shall at the expense of the Insurers do and concur in doing and permit to be done, all such acts and things as may be necessary or required by the Insurers in the interest of any rights, or remedies, or of obtaining relief or indemnity from parties (other than those insured under this Policy) to which the Insurers shall be or would become entitled or subrogated upon their paying for or making good of any loss or damage under the Policy, whether such acts and things shall be or become necessary or required before or after the Insured&rsquo;s indemnification by the Insurers.<br />
	&nbsp;</li>
	<li style="text-align:justify">No admission, offer, promise, payment or indemnity shall be made or given by or on behalf of the Insured without the written consent of the Insurers who shall be entitled if they so desire to take over and conduct in the name of the Insured the defense or settlement of any claim for indemnity or damage or otherwise and shall have full discretion in the conduct of any proceedings or in the settlement of any claim and the Insured shall give all such information and assistance as the Insurers may require.<br />
	&nbsp;</li>
	<li style="text-align:justify">This insurance may be terminated at the request of the Insured, in which case the Insurers will retain the customary short-period rate for the time the policy has been in force.&nbsp; This Insurance may also at any time be terminated at the option of the Insurers by seven (7) days&rsquo; notice to that effect being given to the Insured in which case the Insurers shall be liable to repay a ratable proportion of the premium for the unexpired term from the date of cancelment.<br />
	<br />
	<span style="font-size:13px">However, no notice of cancellation shall be effective unless it is based on the occurrence, after the effective date of the policy, of one or more of the following:</span>
	<ol start="1" style="list-style-type:lower-alpha">
		<li>conviction of a crime arising out of acts increasing the hazard Insured against;</li>
		<li>discovery of fraud or material misrepresentation;</li>
		<li>discovery of willful or reckless acts or omissions increasing the hazard Insured against;</li>
		<li>physical changes in the property insured which result in the property becoming uninsurable; or</li>
		<li>a determination by the Commissioner that the continuation of the policy would delete or would place the Insurer in violation of this code.<span style="font-size:13px">​</span><br />
		<br />
		<span style="font-size:13px">All notices of cancellation shall be writing, mailed or delivered to the named Insured at the address shown in the policy, and shall state (a) which of the grounds set forth above is relief upon and (b) that, upon written request of the named Insured, the Insurer will furnish the facts on which the cancellation is based.</span><br />
		<br />
		Unless the Insurer at least forty-five (45) days in advance of the end of the policy period mails or delivers to the named Insured at the address shown in the policy notice of its intention not to renew the policy or to condition its renewal upon reduction of limits or elimination of coverages, the named Insured shall be entitled to renew the policy upon payment of the premium due on the effective date of the renewal.&nbsp; Any policy written for a term of less than one (1) year shall be considered as if written for a term of one (1) year.&nbsp; Any policy written for a term longer than one year or any policy with no fixed expiration date shall be considered as if written for successive policy periods or terms of one year.<br />
		&nbsp;</li>
	</ol>
	</li>
	<li style="text-align:justify">All differences as to the amount of any loss or damage covered by this Policy shall be referred to the decision of an arbitrator to be appointed by the parties in difference or if they cannot agree upon a single arbitrator to the decision of two arbitrators one to be appointed in writing by each of the parties within thirty (30) days after having been required in writing so to do by either of the parties or in case of disagreement between the arbitrators to the decision of an umpire to be appointed in writing by the arbitrators before entering on the reference and an award by the arbitrator or arbitrators or umpire shall be a condition precedent to any right of action against the company.<br />
	&nbsp;</li>
	<li style="text-align:justify">Whenever a claim arises under the Policy and the same loss or damage is covered by any other insurance, the Insurers shall not be liable to pay or contribute more than their ratable proportion of any claim for such loss or damage.&nbsp; If such other insurance is subject to any condition of average to the Insurers this Policy shall be subject to such conditions in a like manner.</li>
</ol>

<p style="text-align:justify"><strong>N O T I C E</strong></p>

<p style="text-align:justify">The Insurance Commissioner, with offices in Manila, is the government official in charge of the enforcement of all laws relating to insurance and has supervision over insurance companies.&nbsp; He is ready at all times to render assistance in settling any controversy between an Insurance Company and a policyholder relating to insurance matters.</p>

<p style="text-align:justify">For your protection, you are requested to read this Policy in full, including its conditions, and if it is not in accordance with your intentions, please return it immediately for correction.</p>

<p style="text-align:justify"><strong>CIVIL CODE ARTICLE 1250 WAIVER CLAUSE</strong></p>

<p style="text-align:justify">IT IS HEREBY DECLARED AND AGREED that the provision of Article 1250 of the Civil Code of the Philippines (Republic Act No. 386) which reads:<br />
<br />
&ldquo;In case an extraordinary inflation or deflation of the currency stipulated should supervene, the value of the currency at the time of the establishment of the obligation shall be the basis of payment,&rdquo;&hellip;</p>

<p style="text-align:justify">shall not apply in determining the extent of liability under the provisions of this Policy.</p>

<p style="text-align:justify"><strong>OMNIBUS CLAUSE</strong></p>

<p style="text-align:justify">All applicable provisions of Presidential Decree No. 1460, otherwise known as the Insurance Code of 1978, as amended, as of the date of effectivity, latest renewal or latest reinstatement of this policy/certificate/contract of insurance, as the case may be, and all existing laws obligatory upon insurance companies as may be pertinent are deemed incorporated in this policy/certificate/contract of insurance and will supersede any agreement/contract inconsistent therewith.</p>
