MR 510 – Cover in Respect of Loss of Rental for Leased Electronic Data Processing (EDP) Equipment

COVER IN RESPECT OF LOSS OF RENTAL FOR LEASED ELECTRONIC DATA PROCESSING (EDP)  EQUIPMENT #

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon, cover will be extended according to the following conditions :

Scope of Cover

The Insurers hereby agree with the Insured that if material damage indemnifiable under Section 1 of this Policy, however limited to occurrences for which the Insured is liable under the leasing contract, gives rise to a total or partial interruption of operation of the EDP equipment entered in the schedule, the Insurers will indemnify the Insured, as hereinafter provided, for loss of rental for leased EDP equipment as a consequence of such loss or damage up to an amount not exceeding the agreed indemnification per day and not exceeding in all the sum insured in any one year of insurance, provided always that such interruption occurs during the period of insurance stated in the schedule or during any subsequent period for which the Insured pays and the Insurers may accept the premium for the renewal of this Policy.

Special Exclusions to  the Endorsement

The Insurers shall, however, not be liable for any loss of rental sustained as a result of

1. restrictions imposed by public authorities concerning the reconstruction or operation of the EDP equipment insured;
2. the necessary funds not being available to the Insured in time for repairing or replacing damaged or destroyed equipment;
3. delayed or impossible procurement of spare parts;
4. delay due to the employment of foreign experts.

Provisions Applying to the Endorsement

Memo 1 – Sum Insured

It shall be requirement of this insurance that the sum insured stated in the schedule is the amount of annual rental payable under the lessing contract.  The sum insured shall be based on the amounts agreed per day and per month as specified in the schedule.

Memo 2 – Basis of Indemnity

In the event of failure of the EDP equipment insured the Insurers shall be liable for the loss of rental that   can be proved to have been sustained for the period during which the operation of the leased EDP equipment is interrupted or interfered with, but at the most for the indemnity period limit agreed.

The indemnity period shall commence with the occurrence of the accident.

The Insured shall bear that proportion of each claim which corresponds to the time excess agreed.

If it is found following an interruption of the operation of the EDP equipment insured that the loss of rental sustained during the period of interruption is higher than the proportionate share of the annual sum insured applicable to this period, the Insurers shall be liable to indemnify the Insured only in respect of that proportion of the agreed annual sum insured which is applicable to the period of interruption, duly taking into account the indemnity period agreed.

Any savings in cost shall be taken into account when calculating the indemnity amount to be paid by the Insurers.

As from the date of an indemnifiable occurrence the sum insured shall be reduced for the remaining period of Insurance by the amount of indemnity paid, unless the sum insured is reinstated.