Subject to article III of the within policy, it is hereby understood that structural alteration and extension of the buildings mentioned in this policy is allowed, as are the erection of new buildings, installation, reinstallation, replacement of machines, tools, implements, piping or other installations required for the process carried on, parts of installations and objects as well as to move all these within the premises.

In case of removal or demolition of an insured object this insurance will cover the new items substituting the removed or demolished objects up to the original amount insured.


In consideration of the premium by this Policy being provisional in that it is calculated on 75% of the sum insured hereby and is subject to adjustment on expiry of each period of insurance:

1. The insured agrees to declare to the Insurer in writing the value of his stocks (other than retail), less any amount   insured   by   Policies other than declaration policies, on the following basis namely the average of the values at risk   during the month and to make such   declaration   within   thirty   days   of   the   last   day of the calendar month, such declaration to be signed by the Insured or by a responsible person authorized to sign on his behalf.

If other policies on a declaration basis cover the stocks hereby insured the declaration shall be made so as to apportion to each policy a share of the value of the stocks insured under such declaration   policies, pro-rata   to   the respective amounts named in the policies.

In the event of a declaration not being made within 30 days mention above then the Insured shall be deemed to have declared the sum hereby at the value at risk.

On the expiry of each period of insurance the premium shall be calculated at the rate quoted on the average sum insured, namely the total of the value declared or deemed to have been declared dividend by the number of declaration due to have been made, if the resultant premium be grated than the provisional premium the Insured shall pay the difference, if it be less the difference shall be repaid to the Insured but such repayment shall not exceed one third of the provisional premium.

2. the basis of value for declarations shall be the market value and any loss hereunder shall be settled on the basis of the market value immediately anterior to the loss

3. if at the time of any loss, there be any other subsisting insurance or insurances on other than a declaration basis whether effected by the Insured or by any other person or persons covering the stocks at the time of loss over the sum insured by such insurance or insurances, and this insurer shall not be liable to contribute more than that proportion of such loss which such exceeds (or, if there be other declaration insurances covering the same stocks a ratable proportion of such excess), but not exceeding the sum insured hereby, bears to the total value of the stock.

4. if after the occurrence of a loss it is found that the amount of the last declaration previous to the loss is less than the amount that ought to have been declared then the amount which would have been recoverable by the insured shall be reduced in such proportion to the amount of the said last declaration bears to the amount that ought to have been declared.

5. Notwithstanding the occurrence of the loss it is understood that the sum insured would be maintained at all times during the currency of the Policy and the Insured therefore undertakes to pay extra premium on the amount of any loss prorata from the date of loss to the expiry of the period of insurance, the premium shall not be taken into account ion , and shall be distinct from the final adjustment of premium.

6. in the event of this policy being cancelled by the Insured during its currency (whether stocks exit of not) the premium to be retained by the Insurer shall be appropriate short period premium calculated on the average amount insured up to the date of cancellation, or 50% of the provisional premium whichever is the greater but if cancelled by the Insured after a loss has occurred the premium to be retained by the insurer shall be the prorata proportion of the premium calculated on the average amount insured on the date of cancellation plus the prorata proportion if the premium  at the date of loss to the expire of the period of insurance on the amount of loss paid, 50% of the provisional premium whichever is the greater.

7. the maximum liability of the Insurer shall not exceed the sum insured hereby and premium shall not be receivable on values insured thereof.  The sum insured may, however be increased by prior agreement with the Insurer in which event the new sum insured and the date from which it is effective will be recorded on the policy endorsement.

8. if the stocks hereby insured shall at the time of loss be collectively of greater value than the sum insured thereon, then the Insured shall be considered as being own insurer for the difference and shall bear a rateable proportion of the loss accordingly.  Every time, if more than one sum insured exit on stocks (other than retail) it shall be separately subject to this conditions

9. it is warranted that every other policy on a declaration basis covering the stocks insured hereby shall be identical in wording with this policy

10. this insurance is subject in all respect to the printed conditions of the Policy except in so far as they may be varied by this special conditions.


Warranted that during the currency of this policy no part of the premises described herein be used for manufacture or deposit or storage of merchandise.


Warranted under penalty of nullity of this Policy that during its currency, the storage of goods and the quantity of the goods stored in or upon the within mentioned premises are in compliance with the Regulations and Laws of the Republic of Indonesia.


It is hereby agreed declared that the insurance under the Policy shall extend to cover loss or damage to the property insured caused by water accidentally discharged or leaking from the Automatic Sprinkler Installation subject to First Loss sum insured (subject to a maximum of 10% of the total sum insured) and subject to a deductible of Rp. 2,500,000 any one location and further subject to all the usual conditions of the Policy and the following special conditions:

1. The liability of the Insurer shall in no case under this Endorsement and the Policy exceed the sum insured by each item of the Policy.

2. It is expressly stipulated and made a condition thereof that the Insured shall maintain functioning alarm or watchman service insofar as it is under his control or supervision.

3. Further provided that such discharge or leakage of water shall no be occasioned by or happen though:

a. Repairs or alterations to the buildings or premises

b. The automatic sprinkler installation being either repaired, removed or extended

c. The order of the Government or of any Municipal Local or other Competent Authority.

d. Explosion, the blowing – up of buildings or blasting

e. Defects in construction or condition of which the Insured is aware

f. Condensation or deposits on the Automatic Sprinkler Installation

Additional premium for this extension is 5% of the first loss limit.                


In the case of loss, it shall be lawful and necessary for the Insured, his or their factors, servants and assignees, to use, labor and travel for, in and about the defense, safeguard and recovery of the property covered hereunder and part thereof without prejudice to this insurance, nor shall the acts of the Insured of the company in recovering, saving and preserving the property covered case of loss be considered a waiver or an acceptance of abandonment.  The expenses so incurred shall be borne by the Insured and the company proportionately to the extent of their respective interest. 


It is hereby agreed that the property insured by this Policy (other than any stock in trade or merchandise) is covered in respect of the perils hereby insured against whilst temporarily removed for cleaning, renovation, repair or other similar purposes elsewhere on the same premises or any other premises in the Republic of Indonesia and in transit thereto and there from by road, rail or inland waterway.

Provided always that:

1)     The amount recoverable under this extension in respect of each item of this Policy shall not exceed the amount which would have been recoverable had the loss occurred in that part of the premises from which the property is temporarily removed nor in respect of any loss occurring elsewhere than at the said premises, 10 percent of the sum insured by this Policy after deducting there from the value of any building (exclusive of fixtures and fittings), stock in trade or merchandise hereby insured.

2)     This extension does not apply to property if and so far as it is otherwise insured

3)     As regards losses occurring elsewhere than at the premises from which the property is temporarily removed this extension does not apply to:

a)     Motor vehicles and motor chassis licensed for normal road use,

b)     Property held by the insured in trust, other than machinery and plant

This clause is subject otherwise to all the terms and conditions of the Policy to which it is attached.


The insurance by this Policy extends to include tenants improvement and alteration to Landlord’s property insofar as the Insured is responsible therefore.


Both the Insurer and the Insured are entitled to terminate this Insurance upon 30 (thirty) days notice in writing being given.  Such termination should be effected by registered letter.

When the Insurer terminates the Insurance, he id obliged to return pro rata premium for unexpired Insurance.  If it is the Insured who terminated the Insurance premium will be calculated on the short terms rate laid down in the current Insurance for the completed period of Insurance.


In the event of the Insured’s Property being left loaded in the vehicles or freight containers overnight while in, on or about the premises hereby insured the insurer will indemnify the Insured for the loss of or damage to such Property caused by fire or any other peril insured hereby, providing always that the Insurer’s Liability shall not exceed the sum insured of such Property under the Policy.


It is hereby understood and agreed that this insurance is issued as a contract for a period of 12 months; the insurance premium shall be payable in full as soon as possible but no later than 30 days as from.  If claim occurs within such grace period the Insured is liable under the Original Policy.

It is further understood and agreed that in the event the Insurance Premium is not paid on ___________ at the latest, the Insurance coverage will automatically cancelled on the following day with the proviso that the insurance premium calculated on short period scale shall be paid to the Insurer for the period from commencement date until cancellation date


Workmen are allowed in and about any of the described premises for the purpose of making new erections or alteration, repair, decoration, plant installation, general maintenance and the like without prejudice to the terms and conditions of the Policy.

If the Underwriters allege that by reason of this exclusion, any loss, damage, cost or expense is not covered by this insurance the burden of proving the contrary shall be upon the Assured.

In the event any portion of this clause is found to e invalid or unenforceable, the remainder shall remain in full force and effect.


Herby noted and agreed that this insurance shall not in any case to cover Earthquake, Fire following Earthquake, Volcanic eruption and Tsunami.

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  • adi wrote on 23 July, 2015, 10:03

    pak imam…kalo klausul sue and labor fungsinya apa ya

    Sue and Labour adalah untuk mengganti biaya-biaya penyelamatan atau perbaikan yang dilakukan sendiri oleh karyawan Tertanggung (tidak melibatkan pihak ketiga), biaya-biaya dimaksud biasanya berupa upah lembur, ongkos-ongkos, dan biaya material yang digunakan

  • Dika wrote on 23 August, 2018, 16:10

    Pak Imam, untuk structural alternation clause, apakah dikenakan tambahan premi?

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