What is this product about?

This policy provides coverage against sudden and unforeseen physical losses or damages to storage tanks such as palm oil tanks or fuel oil tanks which are susceptible to many forms of accident or extraneous damage which include impact damage, bursting, splitting, rupture and collapse. The policy can also cover the loss of contents in the tanks.

What are the covers / benefits provided?

This policy covers two aspects:

• Physical loss or damage to your storage tanks due to any accidental extraneous causes unless specifically excluded under the policy
• Physical loss of the contents of any storage tank following indemnifiable loss or damage to the tank

What is the insured property?

The interest insured under this Policy such as the storage tanks and contents of any storage tank as described in the Policy Schedule and situated in the location of risk named in the Schedule of the Policy.

Period of Insurance

Duration of cover is for one year. You need to renew your insurance Policy annually.

How much premium do I have to pay?

The premium you have to pay may vary depending on the type, condition (age) and nature of the use of your storage tanks and their contents, the past loss experience and our underwriting requirements.

What is the payment mode and how do I pay the premium?

This is an annual policy and you may pay your premium in full either by cash or cheque or bank transfer.

What are some of the key terms and conditions that I should be aware of?

• Duty of disclosure
  - You must give all the facts which you know or ought to know.
  - You must ensure that the proposal form is completed accurately as it forms the basis of the insurance contract.
• Sum insured
  You must ensure that the storage tanks and their contents are insured at the appropriate amount.
  For the tank, it is the cost of replacement of the Insured tank by new tank of the same kind and capacity which means its replacement costs including, e.g. freight, customs duties and dues, if any and erection costs.
  For the contents of the tank is the maximum value of contents likely to be stored in the tank(s) at any one time.
• Under-insurance
  If the sum insured in your policy is less than the actual value at the time of loss, you are deemed to have underinsured and have self-insured the difference. This average condition will apply in the event of a claim. You shall be considered as being Your own Insurer for the difference, and shall bear a rateable proportion of the loss accordingly.
• Contribution Condition
  If at the time of any loss destruction or damage happening to any subject matter insured there be any other subsisting insurances whether by You or by any other person or persons covering the same subject matter, We shall not be liable to pay or contribute more than their rateable proportion of such loss destruction or damage.
• Claims Notification
  - In the event of a claim, you must notify us as soon as reasonably possible, but no later than 14 days from the date of the accident.
  - You must submit the claim documents to us within 30 days from the date of the loss or such further time as we may in writing allow.
• Deductible/Excess
  This is the amount of loss that you have to bear before we indemnify you of a loss.
• Premium Warranty
  Premium must be paid in full and received by us within 30 days from the inception date of the cover, otherwise the cover is automatically cancelled and you will still be responsible to pay the proportion of premium for the period we have been on risk.

What are the exclusions under this policy?

This policy does not cover losses such as:

1. Damage to any Tank unless such damage immediately prevents or makes unsafe its continued use.
2. Wearing away or wasting of the material of the Tank by leakage, corrosion or otherwise slowly developing deformation or distortion, blisters, laminations flaws.
3. Loss or damage arising during dismantling or erection or caused by or arising out of any process of cleaning, repairing or testing.
4. Damage to glass, enamel or other similar lining unless such damage arises out of an accident causing damage for which the Insurer is responsible under this Policy to other parts of the Tank.
5. Loss or damage caused by fire arising from any cause whatsoever, lightning, explosion, aircraft and other aerial devices or articles dropped therefrom, earthquake, bursting or overflowing of water containing apparatus, flood, or theft or any attempt thereat.
6. Loss of use of tank or other consequential loss or any nature whatsoever.
7. Costs of re-leveling any Tank whether resulting from subsidence or otherwise.
8. War, invasion, act of foreign enemy, hostilities (whether war be declared or not) civil war, rebellion, revolution, insurrection, military or usurped power, riot, strike, lock-out or civil commotion.
9. Radioactive and nuclear energy risks
10. Loss, destruction or damage directly occasioned by pressure waves caused by aircraft and other aerial devices traveling at sonic or supersonic speeds.
11. Acts of terrorism.

Note: This list is not exhaustive. Please refer to the policy contract for the full list of terms and conditions under this policy.

What are the pre-acceptance conditions for this product?

• Tanks not more than 20 years old.
• No loss/claims for the past 3 years.
• Insured has never been declined, cancelled, or refused coverage previously.

Can I cancel my policy?

You may cancel the policy by giving Us ten (10) working days’ notice in writing. Upon cancellation, you are entitled to a refund of the premium based on the unexpired period of insurance less 10% administration charge provided no claims have been made during the current policy period.

No refund of premium for any cancellation of policy if premium is charged on minimum premium.