MR 1367 – Special Conditions: Components along the Hot-gas Path of Gas Turbines

SPECIAL CONDITIONS: COMPONENTS ALONG THE HOT-GAS PATH OF GAS TURBINES #

This endorsement forms part of section 1
and is subject otherwise to the terms, provisions, conditions and exclusions
contained in the policy of insurance or endorsed thereon.

1. Condition 

1.1. In the event of an occurrence to a component or components in the hot-gas path which have a life expectancy appreciably shorter than that of the gas turbine, the amount indemnifiable in respect of the items thus affected shall be depreciated.
The amount payable shall be calculated by taking

1.1.1. the expired life (EL) in equivalent working hours of the component at the time of occurrence, and
1.1.2. the normal life expectancy (NLE) in hours of the component according to the latest specification issued by the manufacturer and then applying them in the relationship (1 -EL/NLE) to the total replacement costs (installed within the plant) of the component.

1.2. Should the normal life expectancy for any component or components indicated by the manufacturer be found to be in conflict with the operational and/or claims experience, an agreement on more realistic component life expectancies shall be reached between the insured and the insurer and shall supersede such advices of the manufacturer.