MR 118 – Drilling Work for Water Wells

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon, the cover for well drilling work shall be restricted to loss or damage due to or resulting from the following named perils:

–        Earthquake, volcanism, tsunami

–        Storm, cyclone, flood, inundation, landslide

–        Blow-out and/or cratering

–        Fire/explosion

–        Artesian waterflow

–        Mud loss, which cannot be overcome by known practice

–        Collapse of hole including collapse of casing due to abnormal pressure or heaving shales, which cannot be overcome by known practice

The indemnity shall be calculated on the basis of the costs (including material) spent for drilling the well up to the very moment when the first phenomena of the above perils are apparent and the well has to be abandoned due to a hazard insured against, and the Insured shall bear a deductible of 10 % of the loss amount, minimum as stated below for any one occurrence.

Special exclusions :

The Insurers shall not be liable for

–        loss of or damage to drilling rig and drilling equipment (for which the drilling contractor may conclude a special insurance),

–        costs of fishing operations of all kinds,

–        costs of reconditioning and workover operations to restore well conditions including all stimulation work (acidizing, fracturing, etc).

Deductible       : 10 % of the loss amount

minimum ……………………any one occurrence

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