Insurance (Paraphrasing a Word Document)
Part A
This section shall fall under the guidance of three clauses herein referred to as clause 18, clause 19, and clause 20 as indicated below. In the event of the need for a judicial review, an alternative shall apply for Clause 18 and clause 19.
It is a requirement for the contractor to obtain the necessary insurance policy for all items mentioned under Clause 16.1 that covers against any eventuality within the period that such items are under the custody of the contractor. This not excluding the liabilities on the part of the contractor as indicated under Clause 16.2 and all other items whether in transit to or off the site.
Clause 19: Insurance for Public Liability
It is a requirement for the contractor to obtain a single insurance policy for public liability for the principal together with the contractor covering all persons working with, working under, and working for the contractor in relation to the contract with the observation of the rights of all these parties together with their interests and their third parties liabilities. The contractor shall ensure that such a policy covers the principal’s liability to the contractor on property damage not covered under Clause 18 and loss of life or physical harm upon any person on liability not covered by workers compensation insurance. The amount for which such a policy is undertaken shall not be short of the stated sum assured by the insurance policy as indicated in the annex unless stated otherwise.
Clause 20: Employees Insurance
It is a requirement for the contractor to obtain the necessary insurance policy against loss of life or physical harm upon any person working for the contractor in accordance with the set laws for the period under which such a worker shall be discharging his or her duties for the contractor under the contract. The policy shall cover all persons working with, working under, and working for the contractor in relation to the contract
Part B
It is a requirement for the contractor to grant a written notification to the principal that details any claims in response to Clause 18 and 19, and the progress of the same. It is also the contractor’s duty to ensure that subcontractors adhere to this requirement by informing the principal of similar undertakings. The principal shall also notify the contractor of all claims settled.
Part C
Clause 21.2: Non-compliance to Insurance Requirements
Failure by either party to satisfy the other of compliance with the insurance requirements as stipulated by Clause 18, 19 or 20, the unsatisfied party shall be at liberty to carry the whole burden including the payments of premium as a debt to the non-compliant party. In the event the contractor is non-compliant, the principal is at liberty to withhold payments until such time the contractor produces evidence of compliance that satisfies the principal. The rights stipulated under Clause 21.2 add to other rights.
Part B (Task 22)
Similarly, by observing Clause 42.1 with respect to the contract, whichever party whether the contractor or the principal shall pay to the other party the full amount of all claims payment committed by one party on behalf of the other within 28 days after the superintendent receives such claims or within 14 days after the superintendent informs both parties of such claims. The payment shall be effected with or without a certificate of claim.
Note that Clause '42.1 outlining the contract’s special condition stipulates that it is necessary for the Superintendent to issue a certificate of payment to both the contractor and the principal after a claim is received within 10 days if not 15. It is also a requirement for either party to pay to the other the payment owed within 15 working days if not 28 days after the superintendent receives such claims or within 14 days after the superintendent gives out the claim certificates to both parties.
It is useful to note that under the special conditions requirements the administrative time for claim progress is reduced by 5 days to a final of 10 days and by 13 days to a final of 15 days.
