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MACHINERYOPTIONSINSPECTION CONTRACT AND INSURANCE POLICY WORDING
CONTENTSThank you for choosing AllianzEngineering, Construction & Power.Part 1Inspection Contract 1Inspection Service Definitions2The Contract4Inspection Service Conditions6Inspection Service Complaints Procedure14Part 2Machinery Options Insurance PolicyInsurance DefinitionsCover OptionsLimit of LiabilityInsurance Cover ExtensionsReinstatement and Public AuthoritiesInsurance Cover ExclusionsInsurance Cover General ExclusionsInsurance Cover General ConditionsInsurance Cover Claims ConditionsInsurance Complaints ProcedureNotifying a ClaimFinancial Services Compensation SchemeFair Processing Notice1516181920222325273032323233Our technical expertise built over many years ofproviding engineering insurance and inspectionproducts and services means you can trust us to bethere when you need us.If you need further details or have any questions, yourbroker or local Allianz Engineering, Construction & Powerbranch will be delighted to help. Alternatively help andguidance can be obtained from:Allianz EngineeringHead OfficeHaslemere RoadLiphookHampshireGU30 7UNUKThe insurance cover provided by this Policy may bevaried by clauses printed in the Schedule.Please read both the Policy and Schedule to make surethat you have the insurance cover and InspectionService required.
Machinery Options – Inspection Contract and Policy WordingPart 1Inspection ContractPlease read this section if you selected to purchase Inspection Services. If you didnot purchase Inspection Services, Part 1 is not relevant – please refer to Part 2which contains the Machinery Options Insurance policy.Allianz Engineering Inspection Services Limited (referred to as ‘the Inspection Company’)will carry out Inspections for the Client named in the Schedule in accordance with andsubject to the terms of this Contract.Please read all the pages of this Contract andSchedule carefully to ensure that your Inspectionrequirements are met.For Allianz Engineering Inspection Services LimitedSimon McGinnDirector1
Machinery Options – Inspection Contract and Policy WordingInspection Service DefinitionsThe following words and expressions have been given the specificmeaning set out below and shall have the same meaning whereverthey appear in the Contract unless the context states otherwise:GroupYou, Your, The Customer, company, person(s) or other legal entitynamed in the Schedule.In relation to the Inspection Company, the Inspection Company,any subsidiary or any holding company from time to time of theInspection Company, and any subsidiary from time to time of aholding company of the Inspection Company (with “subsidiary” and“holding company” defined as per section 1159 of the CompaniesAct 2006).Competent PersonHealth & Safety LawThe Inspection Company and/or any engineer surveyor, standardsengineer, special service engineer, principal engineer or othersuch appropriately qualified person authorised and employed orcontracted by the Inspection Company to perform the InspectionService (as the context may require).The Health & Safety Law that is applicable in the relevant area withinthe Territorial Limits including Health and Safety at Work etc Act1974.ContractAn examination or inspection of Plant or equipment on behalf of theClient of a type required by legislation or regulation (or as otherwiseagreed between the Inspection Company and the Client). Certainregulations require thorough examinations to be undertaken whilstothers require inspections. For the purpose of this Contract, thetwo expressions are synonymous and the generic expression usedthroughout is “Inspection”.ClientThe Contract between the Client and the Inspection Company forthe Inspection Service which includes these conditions together withthe Schedule and (where agreed between the parties) any proposalmade by the Client to the Inspection Company. In the event of anyconflict between the Client’s proposal and these conditions, theseconditions shall prevail.Contract PeriodInspectionInspection CompanyThe period of the Contract shown in the Schedule.Us, We, Allianz Engineering Inspection Services Limited trading asAllianz Engineering, Construction & Power and Allianz Engineering.Enforcing AuthorityInspection ServiceThe regulatory body or organisation that is responsible for ensuringthat the Health and Safety Law is enforced within the TerritorialLimits.An Inspection of Plant by a Competent Person and (where applicable)in accordance with the requirements of such statutory provisions asapply to the Plant and the provision of a report of the Inspection byelectronic means.FeeThe amount shown in the Schedule.Moved About Plant (MAP)Force Majeure EventAny item of Plant that is not inspected at a permanent Site during aninspection cycle (the periodicity between inspections).An event outside the reasonable control of a party including withoutlimitation: riot; civil unrest; military action or terrorism; damage to ordestruction of premises, equipment or data; earthquake, storm, flood,or other natural disaster; severe weather; industrial action, strikes orlock-outs by employees of third parties; inability to obtain supplies ofpower, fuel, or transport; and/or exercise of emergency powers byany governmental authority whether national, regional or local.2Normal Working Hours8.00 am to 6.00 pm (including travel time) Monday to Fridayexcluding public bank and local holidays.
Machinery Options – Inspection Contract and Policy WordingInspection Service Definitions continuedPlantThe machinery and equipment shown or summarised in theSchedule.ScheduleThe Schedule attached to these conditions and forming partof the Contract.SitesThe locations shown in the Schedule.Territorial LimitsGreat Britain, Northern Ireland, The Isle of Man, the ChannelIslands and the Republic of Ireland (to the extent only wherethe Inspection Company provide the Inspection Service to anoffice or branch of a UK domiciled Client).3
Machinery Options – Inspection Contract and Policy WordingThe ContractThe Inspection Company shall during the Contract Period subject toearlier termination provide the Client with an Inspection Service forPlant within Normal Working Hours at the Sites within the TerritorialLimits.For the avoidance of doubt the Client acknowledges that:i Statutory regulations made under Health and Safety Law requirethe Client to have the Plant inspected. The provision of theInspection Service does not relieve the Client of this responsibility.The Client acknowledges that it is their legal responsibility to havethe Plant inspected in accordance with all applicable legislationincluding Health and Safety Law and the Inspection Companyshall have no liability to the Client for any fines or other penaltiesincurred by the Client in this regard (including without limitationany fees for intervention levied against the Client by the EnforcingAuthority);ii the Inspection Company may, if requested by the Client andwithout prejudice to the exclusion in Clause iii 1), providea “Combined Report and Written Scheme of Examination”but only for a single item pressure system included withinthe Inspection Service. The Client must advise the InspectionCompany immediately in writing of any changes or modificationsto its single pressure system, its use and operation which occurbetween the date of this Contract and the issuance of the WrittenScheme of Examination by the Inspection Company to the Client;iii the Inspection Service will not include any services not specificallydetailed within the Contract including without limitation thefollowing services (although such services may be availablesubject to additional charges and the conclusion of a separateagreement between the parties):1 preparation of a multi-item Written Scheme of Examination;2tagging systems for Plant (Tagcheck);3non destructive testing (NDT) of Plant;4 provision of a professional to give consultancy services toinclude but not be limited to advice, guidance and training;5 any inspections beyond the scope of the Client’s Schedulerelating to this Contract;6additional and/or one off Inspections of Plant; and7 r evisiting and reinspecting an item of Plant where the Inspection Company has identified that the item of Plantis a danger to persons;4iv it is responsible (at its own cost) for the care, custodymaintenance, repair and control of the Plant atall times;v the purpose of the Inspection Service is only to identify andassess defects in the workings of the Plant and where requiredby regulation the deterioration that affects the safety of the Plant,but not defects in existing designs or in any proposed designchanges;vi it is solely the Client‘s obligation to ensure that the design of itsPlant and any part of it is fit for purpose and reasonably safe, bothby:1 arranging such analysis of its design as may be foundnecessary; and2 promptly rectifying any design defects of which they are orought to be aware, including:a any design defects to which any CompetentPerson may, without obligation, drawattention; and/orb by taking the Plant out of service until thesematters have been attended to;vii unless agreed in writing between the Inspection Companyand the Client, the Inspection Company will not undertake theapproval or the verification of the fitness for purpose of anydesign or design features of the Plant or any part of the Plant andobservations and recommendations made by the CompetentPerson on aspects of a design that affects safety, shall not implythat the Inspection Company accepts any responsibility for thefitness for purpose of the design;viii unless agreed in writing between the Inspection Company andthe Client, the Inspection Company shall not:1 carry out any witnessing of ultrasonic, radiographic or othertests of a non-routine nature or any proof load, load, stability,anchorage or similar tests; or2 specify, re-inspect, verify or approve repairs unless agreed inwriting between the Inspection Company and the Client orunless required to do so by a regulation;ix the Inspection Company has and accepts no responsibility orliability for damage sustained to the Plant as a result of the failureof the Plant to withstand a test applied as part of the InspectionService; and
Machinery Options – Inspection Contract and Policy WordingThe Contract continuedx in providing the Inspection Service, the InspectionCompany follows the SAFed Health and Safety PassportScheme. Any requirement or request by the Client for theprovision of the Inspection Service to meet the standardsof any other passport or similar scheme shall be thesubject of a separate, written agreement and may involvepayment of an adjusted Fee including but not limited toDisclosure and Barring Service (DBS) checks; supply chainassessments; Safety Assessment Schemes.5
Machinery Options – Inspection Contract and Policy WordingInspection Service Conditions1 The Inspection Company shall:1.1 carry out the Inspection Service with all due care in a safemanner;1.2 comply with the Client’s safe systems of work as agreedwith the Competent Person;2.3 will make a charge in addition to the Fee shown in the1.3 provide the Inspection Service within Normal WorkingHours;1.4 give the Client reasonable prior notice of its intention toattend Sites and where applicable, advise the Client of theneed to prepare the Plant for Inspection; and1.5 produce a report, containing the particulars as required bythe relevant Health and Safety Law and regulations, as soonas is reasonably practicable and in any event not later thanfourteen (14) calendar days following completion of anInspection.2 The Inspection Company:2.1 may appoint contractors to carry out the whole or any partof the Inspection Service, provided that it uses appropriatelyqualified and accredited contractors and remainsresponsible at all times for their acts and omissions;2.2 may decline to carry out an Inspection if:i in its opinion, to do so would pose a risk to the6health, safety or welfare of the Competent Personor to the Client or to any other person who may beaffected; including but not limited to where there isno responsible person on site who can advise of anyevent (planned or unplanned) or in the event of anemergency, can initiate emergency procedures; orii the Client or any employee, agent, contractor or othersuch person associated with the Client behaves in athreatening or abusive manner towards the CompetentPerson or any other employee, agent or contractor ofthe Inspection Company (and any such threatening orabusive behaviour shall constitute a material breach ofthe Contract on the part of the Client for the purpose ofClause 5.3 i);Schedule if:i the Client requests and the Inspection Company agreesto carry out an Inspection outside Normal WorkingHours;ii for safety reasons more than one Competent Person isnecessary to carry out the Inspection;iii the Client requires Inspection reports in paper form orrequires a special reporting regime;iv the Client requires the Inspection Company to useand/or interface with the Client’s electronic systems(including without limitation any asset managementsystem) in connection with provision of the InspectionService;v the Client requires the Competent Person to undertakeinduction sessions, training or to comply with permit towork or other risk assessment regimes or proceduresspecific to the Client’s own health, safety and welfareprocedures of which the Inspection Company was notmade aware when the Contract was established orrenewed;vi the Client fails to prepare or make the Plant availableto the Competent Person in accordance with theseconditions on an agreed pre-appointed date and time;vii the Competent Person is delayed from commencing anInspection by more than fifteen (15) minutes becausethe Client has failed to comply with their obligationsunder Section 3 of this Contract; and/orviii the Competent Person is delayed from leaving theSites by more than fifteen (15) minutes because of theClient’s requirements for services including but notlimited to on-site meetings, verbal or written reportsthat are additional to the Contract.
Machinery Options – Inspection Contract and Policy WordingInspection Service Conditions continued3 The Client shall:3.1 ensure that all documentation (including listsand/or details of Plant) provided to the InspectionCompany is true, complete and accurate in allrespects;3.2 provide the Competent Person with:i safe access to and egress from the Sites;ii a safe working environment on the Sites;iii a safe and suitable physical means by which togain access to carry out the Inspection of thePlant e.g. ladders; scaffolding; mobile elevatingworking platform;iv suitable rescue arrangements (including but notlimited to standby men) should the CompetentPerson be required to work at heights and/or inconfined spaces; andv access to suitable welfare facilities and first aidarrangements;3.3 properly prepare, clean, cool, decommission anddismantle the Plant as necessary to enable theCompetent Person to carry out the Inspection;3.4 reassemble the Plant following completion of theInspection;3.5 co-operate with and upon request provide theCompetent Person with such information and datarelating to the Plant as he requires to conduct theInspection Service;3.6 inform the Inspection Company if the CompetentPerson or other such person associated with theInspection Company behaves in a threatening orabusive manner towards the Client or any otheremployee, agent or contractor of the Client;3.7 provide the Inspection Company with a minimumof two (2) working days‘ notice in writing of theintention to cancel or postpone a planned Inspection.When such notice is not provided, the InspectionCompany shall be entitled to charge for its wastedcosts and the cost of resources it is unable toreallocate;3.8 notify the Inspection Company either on or before therenewal date of the Contract of its intention to renewsuch Contract. In the event that the Client decidesto allow the Contract to lapse but fails to notify theInspection Company prior to any Inspection Servicebeing undertaken, the Client shall be liable to pay for theInspection Company’s fee in respect of such InspectionService;3.9 notify the Inspection Company in writing of any changeto their contact details;3.10 provide the Inspection Company with the locationdetails in writing of any Moved About Plant at least ten(10) working days, prior to the Inspection due date; and3.11 notify the Inspection Company in writing at leasttwenty-one (21) days prior to an Inspection of anyidentification or security requirements necessary for aCompetent Person to gain access to the Site. Any dataof the Competent Person obtained from such requestshall not be kept by the Client longer than is strictlynecessary.4 FeesThe Inspection Company and the Client agree that:4.1 the Client, either itself or through their insurancebroker, will pay the amount shown in the Schedule(the Fee) in cleared funds to a bank accountnominated in writing by the Inspection Companywithin thirty (30) calendar days of the date of theInspection Company’s invoice or, if different, suchperiod as is specified on the insurance broker’sinvoice;4.2 the Fee is calculated on Plant as notified to theInspection Company by the Client at the start of theContract Period;4.3 where the parties have agreed that an item of Plantwill not have an Inspection at least annually, theInspection Company may agree to apportion theFee for the Inspection Services for that Plant oversubsequent Contract Periods;7
Machinery Options – Inspection Contract and Policy WordingInspection Service Conditions continued4.4 where the Plant is not made available by or on behalf of the4.12 should any undisputed invoice remain unpaid for a furtherClient in accordance with the terms of the Contract for anInspection, the Inspection Company will issue a “Plant NotAvailable” notice and will seek to rearrange a time to carryout the Inspection. The Fees will remain payable in respectof the initial Inspection and additional Fees will be chargedfor any return visits required as a result of the Plant notbeing made available. The provisions of Clause 9.4 will alsoapply;twenty-one (21) calendar days following receipt by theClient of a notice from the Inspection Company thatpayment has become overdue, the Inspection Companywill be entitled to suspend all Inspections until such time asthe invoice is settled in full, with the Inspection Companyproviding no guarantee that Plant will be able to beinspected following resumption of Inspections in time forit to not become overdue. It is the Client’s responsibility torearrange Inspection of such Plant or take it out of serviceand the Inspection Company will have no liability to theClient in such circumstances should the Plant becomeoverdue for Inspection.4.5 the Fee may be adjusted after the Inspection is undertakenshould:i the details of the Plant notified to the InspectionCompany for the purposes of calculating the Fee differfrom the Plant on Site requiring an Inspection Service; orii anything beyond the reasonable control of theInspection Company (including without limitation achange in applicable legislation) increase the cost to theInspection Companyof provision of the Inspection Service;4.6 the Client may add or delete individual items of Plant fromthe categories of Plant shown in the Schedule during theContract Period. The Client acknowledges that the Fee maybe adjusted at any time to take account of such changes andthe Client will pay or the Inspection Company will refundthe difference between the Fee and the adjusted Fee as thecase may be;5 Termination of Contract5.1 The Inspection Company may terminate the Contract onthirty (30) calendar days notice. If the Client has paid theFee in full the Client shall be entitled to a refund of the Feesin respect of Inspections outstanding.5.2 The Inspection Company may terminate the Contractwith immediate
providing engineering insurance and inspection Part 1 products and services means you can trust us to be there when you need us. If you need further details or have any questions, your broker or local Allianz Engineering, Construction & Power branch will be delighted to help. Alternatively help and guidance c
