Endorsement 1367 Special conditions: components along the hot-gas path of gas turbines

CM insurance – Endorsement 1367
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.
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