LOSS PAYABLE CLAUSE

In accordance to the Banker’s Clause attached in policy, any claim less than or equal to USD. XXX,XXX shall payable to PT XXX account unless the Bank shall give it’s written consent that any such claim shall be released to the Insured.

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 Bank. 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 Bank shall not be liable for any non-payment of premiums.

The Bank shall be advised by the Insurers:
(i)    Immediately of any material changes which are proposed to be made to any of the terms of the insurances or if the underwriters or reinsurers thereof cease to be underwriters or reinsurers thereof and;
(ii)    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 Bank in writing of any act or omission of which the Insurers are aware that might render this policy void or make the same invalid or unenforceable in whole or in part.
 
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