MR 14219 – Special Insurance Condition: Directional Drilling

SPECIAL INSURANCE CONDITION: DIRECTIONAL DRILLING #

This endorsement forms part of Section I and is subject otherwise to the terms, provisions, conditions, limitations and exclusions contained in the Policy or endorsed thereon except for the following:

1. Conditions
   1.1. The Insurer shall not indemnify the Insured for loss or damage occurring during directional drilling operations, unless
   1.1.1. a soil analysis required for drilling operations in accordance with latest technical standards has been carried out prior to the commencement of work, and
   1.1.2. the Insured contractor is familiar with the drilling technique.

2. Special Exclusions
   2.1. The Insurer shall not indemnify the Insured for loss or damage resulting from:
   2.1.1. missing the target point of the drilling,
   2.1.2. deviations from the scheduled direction,
   2.1.3. loss of or change in the drilling mud (e.g. bentonite), and
   2.1.4. damage to the outer insulation of the pipeline in the area of directional drilling.

3. Sum insured
   The Sum Insured shall be the drilling costs plus the material value of the pipeline to be drilled plus the value of the drilling equipment.

4. Limit of Indemnity
   The Limit of Indemnity for any one Occurrence of loss or damage shall not exceed the limit specified below.
   Limit of Indemnity:

5. Deductible
   In respect of each and every Occurrence of loss or damage, the Insurer shall not be liable for the Deductible specified below.

   Deductible: 20% of the loss amount, with a minimum of               for each and every loss/Occurrence.