The property insured shall refer to all properties and expenses specified in the Schedule of this Policy.

  Unless specifically agreed upon in writing between the Insured and the Company and appraised and value-established by professionals or assessors, the following articles and the expenses relevant thereto shall not be covered under this Policy:

  1. Gold, silver, pearls, diamonds, precious stones and jades;

  2. Antiques, articles of virtue, ancient coins, ancient books and ancient paintings;

  3. Works of art or postage stamps;

  4. Advertisements, aerials, neon, pieces of solar energy apparatus etc. on buildings;

  5. Computer system records or its making and copying costs.

  Under no circumstances shall the following articles relevant thereto be covered hereunder:

  1. Guns, ammunition or explosives;

  2. Banknotes, securities, bills, documents, files, account books or drawings;

  3. Animals, plants and agricultural crops;

  4. Mobile phones, portable computers, removable photograph apparatus or other precious articles;

  5. Vehicles licensed for general transport use.


  The Company shall indemnify the Insured in respect of the physical loss of or damage to the insured property stated in the Schedule during the period of insurance directly arising from the following perils:

  1. Fire;

  2. Explosion;

  but not including explosion of a boiler or other pressure relief devices;

  3. Lightning;

  4. Hurricane, typhoon and tornado;

  5. Storm, tempest and flood;

  but not including loss or damage caused by change in normal water level or inundation from sea water or water escape or leakage from the normal confines of any natural water course, lake or reservoir, canal or dam as well as loss of or damage to the insured property caused by storm, tempest or flood while being stored in the open or covered by or under a shed thatched with reeds, tarpaulins, straw, asphalt felt, plastic or nylon sheet;

  6. Hailstorm;

  7. Landslide, rockslide, avalanche;

  8. Volcanic explosion;

  9. Subsidence of ground;

  but not including loss or damage resulting from pile driving, groundwork or excavation;

  10. Crashing aircraft and parts or articles falling from aircraft and other flying objects;

  11. Bursting of water tank or pipe;

  but not including bursting of water tank or pipe due to rust.


  This Company shall not be liable for:

  1. Loss of or damage to the insured property or expenses caused by intentional act or gross negligence of the Insured or his representative;

  2. Loss of or damage to the insured property caused and expenses incurred by earthquake or tsunami;

  3. Depreciation, loss of market, loss of use and other consequential losses of any description;

  4. Loss of or damage to the insured property or expenses incurred arising from war, warlike operation, hostilities, armed conflicts, terrorism, conspiracy insurrection, coup d`etat, strike, riot, and civil commotion;

  5. Confiscation, requisition, destruction or damage by any action or order of any government de jure or de facto or by any public authorities;

  6. Loss of or damage to insured property directly or indirectly caused or expenses incurred by nuclear fission, nuclear fusion, nuclear weapon, nuclear material, nuclear radiation and radioactive contamination;

  7. Loss or damage caused and expenses incurred by pollution of any kind or description whatsoever such as atmosphere, land and water pollutions but this does not include loss or damage caused by pollution arising from PERILS specified in Article II the Policy;

  8. The deductibles stated in the Schedule to be borne by the Insured;

  9. Loss or damage arising from any other perils not listed in Article II of this Policy.


  1. The Company shall at its option, indemnify the Insured in respect of loss or damage falling within the Scope of Cover of the Policy by either:

  1.1 paying the amount of the actual value of the property lost or damaged or;

  1.2 paying the necessary cost of repairing or restoring the damaged property to its nearest condition immediately preceding the damage or;

  1.3 repairing or restoring the damaged property to a condition near to other property of like kind and quality.

  2. Indemnity under this Policy shall be based upon the sound market value of the property prevailing at the time of loss. If the sound market value of the damaged property is lower than the sum insured of such property, the claim shall be settled on its market value;If the sound market value of the property is in excess of the sum insured, the Company shall only be liable for such proportion of the claim as the sum insured of the damaged property bears to its sound market value. If the insured property enumerated in the Schedule is more than one item, the provision of this clause shall apply to each thereof.

  3. If a claim for loss of or damage to the insured item is settled on a total loss basis, the salvage value of such item shall be deducted from the indemnity payable by the Company. The Company may, at its option, decline the abandonment of any damaged property by the Insured.

  4. In the event of loss of or damage to any equipment item insured forming part of a pair or set, the Company shall not be liable in respect of each of such item lost or damaged for more than its proportionate part of the sum insured on the complete pair or set.

  5. In the event of any loss occurrence, the Company shall also pay the Insured for the expenses reasonably incurred for taking necessary measures to minimize loss or damage to the least extent, but in no case shall such expenses referred hereto exceed the sum insured of the insured property.

  6. Upon settlement of a claim, an endorsement shall be issued by the Company to reduce the sum insured corresponding to the property lost or damaged by the amount so settled from the date of loss, and no premium shall be refunded for the amount so reduced. If reinstatement of the sum insured is required by the Insured upon settlement of the claim, an additional premium for the reinstated amount shall be charged at an agreed rate, and be calculated on pro rata daily basis from the date of loss to the expiry of the insurance.

  7. The time of validity of a claim under this insurance shall not exceed a period of two year counting from the date of loss.


  The following Obligations shall be strictly fulfilled by the Insured and his representative:

  1. The Insured and his representative, when applying for insurance shall make true answers or descriptions to the questions in the Proposal and Questionnaire or to any other questions raised by the Company.

  2. The Insured and his representative shall pay to the Company in due course the agreed premium in the manner as provided in the Schedule and Endorsements.

  3. During the period of this insurance, the Insured shall at his own expense take all reasonable precautions, including paying sufficient attention to and putting into practice the reasonable recommendations of the Company, prudently selecting the workmen and employees and complying with all statutory regulations and safety operation procedures.

  4. In the event of any occurrence which gives or might give rise to a claim under this Policy, the Insured or his representative shall:

  4.1 notify the Company immediately and within seven (7)days or any further period as may be agreed by the Company in writing, furnish a written report to indicate the course, probable reason and extent of loss or damage;

  4.2 take all necessary measures to avoid aggravation of the loss or damage and minimize it to the least extent;

  4.3 preserve the spot affected and defective parts before an inspection is carried out by a representative or surveyor from the Company;

  4.4 furnish all such information and documentary evidence as the Company may require for supporting the claim.


  1. Policy Effect

  The due observance and fulfilment of the terms and conditions of this Policy in so far as they relate to anything to be done or complied with by the Insured shall be a condition precedent to any liability of the Company under this Policy.

  2. Policy Voidance

  This Policy shall be voidable in the event of misrepresentation, misdescription or non-disclosure made by the Insured or his representative in any material particular in respect of this insurance.

  3. Policy Termination

  Unless its continuance be admitted by the Company in writing, this Policy shall be automatically terminated if:

  3.1 the insurable interest of the Insured is lost;

  3.2 the risk of loss or damage is increased.

  After termination of the Policy, the premium shall be refunded to the Insured calculated on pro rata daily basis for the period from the date of termination to the date of expiry.

  4. Policy Cancellation

  This Policy may be canceled at any time at the request of the Insured in writing or at the option of the Company by giving a fifteen (15) days prior notice to the Insured. In the former case the Company shall retain a premium calculated on short term rate basis for the time the Policy has been in force while in the latter case such premium shall be calculated on pro rata daily basis.

  5. Forfeit of Benefit

  If the claim is in any respect fraudulent, or if any fraudulent means or devices are used by the Insured or his representative to obtain any benefit under this Policy or if any loss or damage is occasioned by the intentional act or in the connivance of the Insured or his representative, then in any of these cases, all the rights and benefits of the Insured under this Policy shall be forfeited, and all consequent losses arising therefrom including the amount of claim paid by the Company shall be indemnified by the Insured.

  6. Reasonable Inspection

  The representative of the Company shall at any suitable time be entitled to attend the site and inspect or examine the risk explosure of the property insured. For this purpose, the Insured shall provide full assistance and all details and information required by the Company as may be necessary for the assessment of the risk. The above mentioned inspection or examination shall in no circumstances be held as any admission to the Insured by the Company.

  7. Double Insurance

  Should any loss, damage, expenses or liability recoverable under the Policy be also covered by any other insurance, the Company shall only be liable to pay or contribute his proportion of the claim irrespective as to whether the other insurance is arranged by the Insured or others on his behalf, or whether any indemnification is obtainable under such other insurance.

  8. Subrogation

  Where a third party shall be held responsible for the loss or damage covered under this Policy, the Insured shall, whether being indemnified by the Company or not, take all necessary measures to enforce or reserve the right of recovery against such third party, and upon being indemnified by the Company, subrogate to the Company all the right of recovery, transfer all necessary documents to and assist the Company in pursuing recovery from the responsible party.

  9. Dispute

  All disputes under this insurance arising between the Insured and the Company shall be settled through friendly negotiations. Where the two parties fail to reach an agreement after negotiations, such dispute shall be submitted to arbitration or to court for legal actions. Unless otherwise agreed, such arbitration or legal action shall be carried out in the place where the defendant is domiciled.


  The following provisions shall be applied to all parts of this Policy and shall override the other terms and conditions of this Policy if any conflict arises.


  Policy No.:

  WHEREAS THE INSURED named in the Schedule hereto has made to the ______ Insurance Company (hereinafter called "the Company") a written Proposal which together with any other statements made by the insured for the purpose of this Policy is deemed to be incorporated herein and has paid to the Company the premium stated in the Schedule.

  NOW THIS POLICY OF INSURANCE WITNESSES that subject to the terms and conditions contained herein or endorsed hereon the Company shall indemnify the insured for the loss or damage sustained during the period of insurance stated in the Schedule in the manner and to the extent hereinafter provided.

  By the ________ Insurance Company

  _________________________ Authorised Signature

  Date of Issue:

  Place of Issue:


  Policy No.:

  1. Name and Address of the Insured

  1.1 The Insured:

  1.2 Address:

  2. Location of the Property Insured:

  3. Nature of Trade:

  4. Insured Items and Sums Insured:

  Insured Items Sums Insured

  4.1 Property Insured

  4.1.1 Building(s) (including decoration):

  4.1.2 Machinery and Equipment:

  4.1.3 Furniture and Fixture:

  (including office equipment and supplies)

  4.1.4 Stock:

  4.1.5 Others:

  4.2 Additional Expenses:

  4.2.1 Removal of Debris fees:

  4.2.2 Fire Extinguishing Expenses:

  4.2.3 Professional Fees:

  4.2.4 Other Expenses:

  Total Sum Insured:

  5. Deductible (any one accident):

  6. Period of Insurance: ___ months.

  From 00:00 of _________ to 24:00 hours of ______

  7. Premium Rate:

  Total Premium:

  8. Date of Payment:

  9. Jurisdiction:

  This Policy is governed by law of the People's Republic of China.

  10. Special Provisions:


  _________ Insurance Company