Loss Payable Clause

LOSS PAYABLE CLAUSE #

Claim payable more than US 100,000 hereunder shall be payable to the Bank as per Bankers clause (the “Security Agent”) and claim less than or equal to US 100,000 shall payable to Insured account. In the event of non-payment of premiums when due, the Insurers undertake not to exercise any right of cancellation which they may have without giving 4(four) weeks prior written notice of such cancellation to the Security Agent. The Security Agent may, but shall not be obliged to, pay any balance of such premiums which may be in default and it is expressly understood that the Security Agent all expectation or reasons for refusing payment which they might possibly raise against the Insured Including the reasons stated in Articles 251,252 and paragraphs 1 & 2 of Article 253

of the Indonesian Commercial Code. The Security Agent shall be advised by the Insurers :

1. Immediately of any material changes which are proposed to made to any of the terms of the Insurances or if the underwriters or reinsurers thereof case to be underwriters or reinsures thereof and :
2. not later than 14 (fourteen) days prior to the expiry of any of the Insurances if instructions have not been received for the renewal or further renewal thereof and in the event of Instructions being received to renew or further renew, the details thereof.

The Insurers shall also promptly advise the Security Agent in writing of any or omissions of which the Insurers are aware that might render this policy void or make the same invalid or enforceable in whole or in part.