<p style="text-align:justify">This Policy is issued in consideration of the payment by the Insured of the total premium and documentary stamps stipulated above, to the <strong>ALLIEDBANKERS INSURANCE CORPORATION</strong> (hereinafter called the Company) for insuring the property or properties described above, in the sum or several sums opposite thereto, subject to the foregoing stipulations and conditions and to the conditions printed on the succeeding pages hereof, which are hereby specially referred to and made a part of this policy together with such other provisions, agreements or conditions as may be endorsed hereon or added hereto; and no officer of this Company shall have the power to waive or be deemed to have waived any provision or condition of this Policy unless such waiver, if any, shall be written hereon or attached hereto, nor shall any privilege or permission affecting the insurance under this Policy exist or be claimed by the Assured to exist unless so written or attached, in such manner as prescribed under Section 50 of the Insurance Code.</p>

<p style="text-align:justify"><strong>POLICY CONDITIONS</strong></p>

<ol>
	<li style="text-align:justify"><strong>MISREPRESENTATION AND FRAUD.&nbsp;</strong>This policy shall be void if the Assured has concealed or misrepresented any material factor or circumstance concerning the insurance or the subject thereof or in case of any fraud, attempted fraud or false swearing by the Assured touching any matter relating to this insurance or the subject thereof, whether before or after a loss.</li>
	<li style="text-align:justify"><strong>VALUATION.&nbsp;</strong>Unless otherwise provided in form attached, this Company shall not be liable beyond the actual value of the property at the time any loss or damage occurs and the loss or damage shall be ascertained or estimated according to such actual cash value with proper deduction for depreciation, however caused, and shall in no event exceed what it would then cost to repair or replace the same with material of like kind and quality.</li>
	<li style="text-align:justify"><strong>PAIR AND SET.&nbsp;</strong>It is understood and agreed that, in the event of loss of, or damage to any article or articles which are a part of a set, the measure of loss or damage to such article shall be a reasonable and fair proportion to the total value of the set, giving consideration to the importance of said articles, but in no event shall such loss or damage be construed to mean total loss of set.</li>
	<li style="text-align:justify"><strong>PARTS.&nbsp;</strong>In case of loss or injury to any part of the insured property consisting when complete for sale or use, of several parts, this Company shall only be liable for the insured value of the part lost or damaged.</li>
	<li style="text-align:justify"><strong>SUE AND LABOR.</strong>&nbsp;In case of loss or damage; it shall be lawful and necessary for the Assured, his or their factors, servants and assigns, to sue, labor, and travel for, in and about the defense, safeguard and recovery of the property insured hereunder, or any part therefore without prejudice to this insurance, nor shall the acts of the Assured or this Company in recovering, saving and preserving the property insured in case of loss or damage, be considered a waiver or an acceptance of abandonment to the charge whereof this Company will contribute according to the rate and quantity of the sum herein inured.</li>
	<li style="text-align:justify"><strong>NOTICE OF LOSS.&nbsp;</strong>The Assured shall as soon as practicable report to the Company every loss or damage which may become a claim under this policy and shall also file with the Company within ninety (90) days from the date of loss a detailed sworn proof of loss.&nbsp; Failure by the Assured to report the said loss or damage and to file such sworn proof of loss as hereinbefore provided shall invalidate any claim under this policy for such loss.</li>
	<li style="text-align:justify"><strong>DOUBLE RECOVERY.&nbsp;</strong>No loss shall be paid hereunder if the Assured has collected the same from others.</li>
	<li style="text-align:justify"><strong>SETTLEMENT CLAUSE.&nbsp;</strong>The amount of any loss or damage for which the Company may be liable under this Policy shall be paid within thirty (30) days after proof of loss is received by the Company and ascertainment of the loss or damage is made either by agreement between the Assured and the Company or by arbitration; but if such ascertainment is not had or made within sixty (60) days after such receipt by the Company of the proof of loss, then the loss or damage shall be paid within ninety (90) days after such receipt.</li>
	<li style="text-align:justify"><strong>REINSTATEMENT.&nbsp;</strong>Every claim paid hereunder reduces the amount insured by the sum so paid unless the same be reinstated by payment of additional premium thereon.</li>
	<li style="text-align:justify"><strong>EXAMINATION UNDER OATH.&nbsp;</strong>The Assured shall submit, and so far as in within his or their power shall cause all other persons interested in the property and members of the household and employees to submit, to examinations under oath by any persons named by the Company, relative to any and all matters in connection with a claim and subscribe the same, and shall produce for examination all books of account, bills, invoices, and other vouchers or certified copies thereof if originals be lost, at such reasonable time and place as may be designated by the Company or its representatives and shall permit extracts and copies thereof to be made.</li>
	<li style="text-align:justify"><strong>ARBITRATION CLAUSE.&nbsp;</strong>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 to do so 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.</li>
	<li style="text-align:justify"><strong>BENEFIT OF INSURANCE.&nbsp;</strong>This&nbsp;insurance&nbsp;shall&nbsp;in&nbsp;no way inure directly or indirectly to the benefit of any carrier or other bailee.</li>
	<li style="text-align:justify"><strong>SUBROGATION.&nbsp;</strong>In the event of any payment under this policy the Company shall be subrogated to all the Assured&rsquo;s rights of recovery against any person or organization and the Assured shall execute and deliver instruments and papers and do whatever else is necessary to secure such rights.</li>
	<li style="text-align:justify"><strong>SUIT AGAINST COMPANY.&nbsp;</strong>If a claim be made and rejected and an action or suit be not&nbsp;commenced either in the Insurance Commission or any Court of competent jurisdiction within&nbsp;twelve (12) months from receipt of notice of such rejection, or in case of arbitration taking place&nbsp;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.</li>
	<li style="text-align:justify"><strong>CANCELLATION</strong>.&nbsp;This Policy shall not be cancelled by or on behalf of the Company except in accordance with and pursuant to the provisions of Sections 64 and 65 of the Insurance Code.&nbsp; In the event of such cancellation, the Company shall refund the paid premiums less the earned portion thereof to the Assured.&nbsp; Likewise, this policy may be cancelled on the short rate basis set forth in the short rate cancellation table at the request of the Assured.</li>
	<li style="text-align:justify"><strong>CIVIL CODE WAIVER. </strong>&nbsp;IT IS HEREBY DECLARED AND AGREED that the provision of Article&nbsp;1250 of the Civil Code of the Philippine 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;. .&nbsp; shall not apply in determining the extent of liability under the provisions of this Policy.</li>
	<li style="text-align:justify"><strong>NUCLEAR EXCLUSIONS.</strong>&nbsp; This Policy does not cover &ndash;
	<ol style="list-style-type:lower-alpha">
		<li>Loss or destruction of or damage to any property whatsoever or any loss or expense whatsoever resulting or arising therefrom or any consequential loss;</li>
		<li>Any legal liability of whatsoever nature directly or indirectly caused by or contributed&nbsp;&nbsp; to, by, or arising from ionizing radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel.&nbsp; For the purpose of this exclusion only combustion shall include any self-sustaining process of nuclear fission.</li>
	</ol>
	</li>
</ol>

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

<ol>
	<li style="text-align:justify"><strong>PROPERTY INSURED</strong> &ndash; Covering upon the property and equipment described in the policy including appurtenances thereof, attached thereto and/or contained thereon, for an amount not exceeding that shown with respect of each scheduled item so stated in the Description.&nbsp;Warranted by the Assured that the property insured hereunder is in sound condition at the time&nbsp;of attachment of this Policy.</li>
	<li style="text-align:justify"><strong>LIMIT OF LIABILITY</strong> &ndash; It is agreed that the limits of liability for which this Company may be&nbsp;&nbsp; liable for any loss, disaster or casualty including salvage charges, sue and labor, or other expenses, or all combined, shall not exceed &nbsp;<u>P4,320,000.00</u></li>
	<li style="text-align:justify"><strong>THIS POLICY INSURES AGAINST:</strong><br />
	<strong>ALL RISKS OF DIRECT PHYSICAL LOSS OR DAMAGE FROM ANY EXTERNAL CAUSE&nbsp;&nbsp; TO THE INSURED PROPERTY (INCLUDING GENERAL AVERAGE AND SALVAGE CHARGES FOR WHICH THE ASSURED BECOMES LEGALLY LIABLE) EXCEPT AS HEREINAFTER PROVIDED.</strong></li>
	<li style="text-align:justify"><strong>THIS</strong> <strong>POLICY DOES NOT INSURE AGAINST:</strong>
	<ol start="1" style="list-style-type:lower-alpha">
		<li>Loss or&nbsp; Damage to&nbsp; the property insured caused by or resulting from wear and tear,&nbsp;gradual deterioration, inherent vice, latent defect, mechanical breakdown, corrosion,&nbsp; rust, dampness&nbsp; of&nbsp; the&nbsp; atmosphere or freezing unless such damage is result of a loss covered by this Policy;</li>
		<li>Loss or&nbsp; damage&nbsp; to&nbsp; electrical&nbsp; appliances&nbsp; or&nbsp; devices&nbsp; of&nbsp; any kind, including wiring caused&nbsp;by electrical currents, artificially generated unless&nbsp; fire&nbsp; ensues, and then only for this Company&rsquo;s proportion of loss caused by such ensuing fire;</li>
		<li>Loss&nbsp;or&nbsp;damage&nbsp;caused&nbsp;by&nbsp;repairing,&nbsp;adjustment&nbsp;servicing,&nbsp;or&nbsp;maintenance&nbsp;operation,&nbsp;unless fire or explosion ensues&nbsp;and&nbsp;then&nbsp;only&nbsp;for&nbsp;the loss or damage from such ensuing&nbsp;fire or explosion;</li>
		<li>Theft, wrongful&nbsp;conversion&nbsp;or&nbsp;embezzlement&nbsp;by&nbsp;Assured&rsquo;s&nbsp; employees or by any&nbsp;person to whom the insured property is entrusted.</li>
		<li>Loss or damage to tires or tubes due and confined&nbsp; to&nbsp; blowout, bruises, cuts&nbsp; or other&nbsp;causes&nbsp; inherent&nbsp; in&nbsp; the&nbsp; use&nbsp; of&nbsp; the&nbsp; equipment, unless&nbsp; such&nbsp; damage is the result of&nbsp; a loss covered by this Policy;</li>
		<li>Loss or&nbsp;damage occasioned byweight&nbsp;of&nbsp;a&nbsp;load&nbsp;exceeding&nbsp;the&nbsp;registered lifting or&nbsp;supporting capacity of any machine;</li>
		<li>Loss or damage&nbsp; caused&nbsp; by&nbsp; or&nbsp; resulting&nbsp; from&nbsp; strikes,&nbsp; lockouts, labor disturbances, riots, civil&nbsp; commotions, or&nbsp; the&nbsp; acts&nbsp; of&nbsp; any&nbsp; person&nbsp; or&nbsp; persons&nbsp;taking&nbsp;part in such&nbsp;occurrence or disorder;</li>
		<li>Loss or damage caused directly or indirectly, by: (a) enemy attacked by armed forces,&nbsp;including action taken by&nbsp; military, naval, or&nbsp; air forces&nbsp; in&nbsp; resisting&nbsp; an&nbsp; actual&nbsp; or&nbsp; an&nbsp; immediately&nbsp;impending&nbsp;&nbsp; enemy&nbsp;attack;&nbsp;or&nbsp;(b)&nbsp;invasion,&nbsp;insurrection,&nbsp;rebellion,&nbsp;evolution, civil&nbsp; war, usurped&nbsp; power; or (c)&nbsp;seizure or destruction under quarantine or&nbsp;Customs&nbsp;regulations,&nbsp;confiscation&nbsp;by&nbsp;order&nbsp;of&nbsp; any&nbsp; government, or&nbsp; Public&nbsp; authority,&nbsp;or risks of contraband or illegal transportation or trade;</li>
		<li>Consequential loss&nbsp;or&nbsp;damage&nbsp;of&nbsp;any&nbsp;kind&nbsp; or description whatsoever including (a)&nbsp; delay&nbsp;in&nbsp;completing, negotiating&nbsp; and&nbsp; loss&nbsp; of contracts; (b) deterioration and loss of market.</li>
	</ol>
	</li>
	<li style="text-align:justify">Notwithstanding any other conditions contained herein it shall be optional with the Company in&nbsp;the event of loss or damage to the property insured to take delivery of such property;&nbsp;and also repair or replace the property lost or damaged with other of like&nbsp;kind and&nbsp; quality within reasonable time, provided notice of such intention is given within fifteen (15) days after receipt of satisfactory proof of loss.</li>
	<li style="text-align:justify"><strong>DEDUCTIBLE&nbsp;</strong>-&nbsp;Each&nbsp;claim for loss or damage shall be adjusted separately and from the&nbsp; amount of each such adjusted claim or the applicable limit of liability, whichever is less, the sum of&nbsp; 1<u>% of sum insured each and every loss</u>&nbsp; shall be deducted.</li>
	<li style="text-align:justify"><strong>CO-INSURANCE&nbsp;</strong>-&nbsp;This Company shall not be liable for a greater proportion of any loss or damage to the property scheduled herein than the total sum insured under said schedule bears to ONE HUNDRED (100%) percent of the actual cash value of said property at the time such loss or damage shall happen.</li>
	<li style="text-align:justify"><strong>VALUATION -&nbsp;</strong>This Company shall not be liable beyond the actual cash value of the property at the time any loss or damage occurs and the loss or damage shall be ascertained or estimated according to such actual cash value with proper deduction for depreciation however caused,&nbsp;but in no event to exceed the amount of insurance; each item scheduled herein to be deemed separately insured.</li>
</ol>

<p style="text-align:justify">Sec. 77.&nbsp; An insurer is entitled to payment of the premium as soon as the thing insured is exposed to the peril insured against.&nbsp; Notwithstanding any agreement to the contrary, no&nbsp;&nbsp; policy&nbsp; or&nbsp; contract of&nbsp;&nbsp;&nbsp;&nbsp; insurance issued by an insurance company is valid and binding unless and until the premium thereof has been paid, except in the case of a life or industrial life policy whenever the grace period provision applies.</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&nbsp;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 own protection you are requested to read this Policy in full including its conditions,&nbsp;and if it is&nbsp;not in accordance with your intentions, please return it immediately for correction.</p>

<p style="text-align:justify">DOCUMENTARY STAMPS to the value stated on this Policy are affixed and properly cancelled on the duplicate copy of the Policy.</p>
