Investment process insurance policy

1. Construction and Erection All Risks (CAR/EAR) in respect of works performed for GAZ-SYSTEM
   Key terms of the CAR/EAR insurance agreement:
   • The Construction/Erection All Risks insurance, i.e. the coverage of all risks related to the construction or erection process, subject to exclusions specified in the insurance contract.
   • The insurance coverage is contracted in accordance with best market practice for this type of insurance.
   • The insurance is taken out in the form of a General Agreement covering almost all construction and installation projects, as well as refurbishment, upgrade, expansion projects carried out by and/or for GAZ-SYSTEM with the exception of off-shore investments, LNG terminal installations and those projects that do not conform to the general boundary conditions to qualify for the insurance cover.
   • The insurance covers all parties participating in the investment process, i.e. contractors, consortium members, subcontractors, suppliers, producers, designers, advisors, consultants, contract engineers, supervision inspectors and all other parties officially involved in the execution of the investment project.
   • The insurance covers the facility under construction/erection in accordance with the applicable construction contract including but not limited to (up to the contractual limit of liability):
     • equipment, furnishings and site facilities,
     • construction machinery,
     • surrounding property,
     • property during transport,
     • property during off-site storage,
     • additional costs, such as, for example, debris remrectangle, acceleration of works (overtime, working on holidays, express freight), surveyor fees and many other justified costs.
   • The contract does not cover third party liability.
   • The insurance covers the duration of the works, plus an extended maintenance period of 36 months after completion of the works and a warranty period of 12 months.
   • The contract contains solutions adapted to the dynamics of the investment process (prolonged execution time of works, suspension of works, prolonged tests and commissioning times, change in the value of the contract, additional works, inflation, etc.).
   • The contract provides for close cooperation between contractors and insurers in the loss adjustment process and guarantees the engagement of top-class specialists and experts, especially in case of complex claims.
   • The contract ensures quick settlement of claims so that the implementation of the project following the damage can proceed smoothly and any disruption to the investment process resulting from the damage is avoided or minimised (e.g. self-adjustment).
   • The contract contains provisions concerning the obligations of participants in the investment process, in particular contractors, e.g. compliance with applicable legal regulations, appropriate protection of property against theft, during transport, during off-site storage, obligation to inform about incidents/damage.

The key terms of the agreement are made available to the Contractor at the stage of the tender procedure, and the detailed term sheet for the insurance agreement is presented to the Contractor after signing the agreement with GAZ-SYSTEM.

2. Project Engineer's Liability Insurance Contract (PII)
   Key terms of the PII contract:
   • The insured activity covers all activities carried out by the design engineer, architect or civil engineer within the scope of the applicable licenses, including but not limited to preparing project documentation, exercising author's, investor's or environmental supervision, subject to exclusions expressly set out in the insurance contract.
   • The insurance covers designers, architects and civil engineers acting on behalf of GAZ-SYSTEM Within the scope of their independent roles in the construction business (including investor’s, environmental or archaeological supervision, provided that the contract with GAZ-SYSTEM so provides).
   • The insurance taken out in the form of a General Agreement covering almost all the above types of contracts carried out by and/or for GAZ-SYSTEM with the exception of the contracts that do not conform to the general boundary conditions to qualify for the insurance cover.
   • The insurance coverage is contracted in accordance with best market practice for this type of insurance.
   • The contract does not cover general third party liability.
   • The contract provides for close cooperation between contractors and insurers in the loss adjustment process and guarantees the engagement of top-class specialists and experts, especially in case of complex claims.
   • The contract ensures quick settlement of claims so that the implementation of the project following the damage can proceed smoothly and any disruption to the investment process resulting from the damage is avoided or minimised.
   • The contract includes provisions on reporting obligations in respect incidents/damage.
      

The key terms of the agreement are made available to the Contractor at the stage of the tender procedure, and the detailed term sheet for the insurance agreement is presented to the Contractor after signing the agreement with GAZ-SYSTEM.

Note: the above is provided for information purposes and cannot constitute the basis for any claims against GAZ-SYSTEM.

• Each Contractor is required to take out third party liability insurance with respect to its activity and property in connection with the performance of works for GAZ-SYSTEM, which are carried out in accordance with the terms and conditions specified in the tender documentation and the agreement concluded with GAZ-SYSTEM.
  The requirement may be fulfilled by the Contractor in the following ways:
  • present individual policy (dedicated or block policy) conforming to the minimum requirements set out by GAZ-SYSTEM, which will be confirmed by a licensed insurance broker of the Contractor or the Insurer issuing the policy.
  • take advantage of a special offer* which is consistent with the requirements of GAZ-SYSTEM as regards the adequate protection of the investment process and is can be obtained by Project Contractors from the Insurer Polski Gaz Towarzystwo Ubezpieczeń Wzajemnych at: zgloszenie.gazsystem@polskigaztuw.pl

* option available for selected types of contracts according to the conditions specified in the tender documentation.
Note: the above is provided for information purposes and cannot constitute the basis for any claims against GAZ-SYSTEM.