draft standard transmission service agreement for ... - Ministry of Power

ARTICLE: 9
9 INSURANCES
9.1 Insurance:
Draft Standard Transmission Services Agreement
9.1.1 The TSP shall effect and maintain or cause to be effected and
maintained during the Construction Period and the Operating Period,
Insurances against such risks, with such deductibles and endorsements
and co-beneficiary/insured, as may be necessary under
a. any of the Financing Agreements,
b. the Laws, and
c. in accordance with Prudent Utility Practices.
The Insurances shall be taken effective from a date prior to the date of
the Financial Closure till the Expiry Date.
9.2 Evidence of Insurance cover:
9.2.1 The TSP shall furnish to the Lead Long Term Transmission Customer
copies of certificates and policies of the Insurances as soon as they are
effected and renewed by or on behalf of the TSP from time to time in
terms of Article 9.1
9.3 Application of Insurance Proceeds:
9.3.1 Save as expressly provided in this Agreement, the policies of Insurances
and the Financing Agreements, the proceeds of any insurance claim
made due to loss or damage to the Project or any part of the Project
shall be first applied to reinstatement, replacement or renewal of such
loss or damage.
9.3.2 If a Natural Force Majeure Event renders the Project no longer
economically and technically viable and the insurers under the
Insurances make payment on a “total loss” or equivalent basis, the
portion of the proceeds of such Insurance available to the TSP (after
making admissible payments to the Lenders as per the Financing
Agreements) shall be allocated to the TSP and the Long Transmission
Customers shall have no claim on such proceeds of the Insurance.
9.3.3 Subject to the requirements of the Lenders under the Financing
Agreements, any dispute or difference between the Parties as to whether
the Project is no longer economically and technically viable due to a
Force Majeure Event or whether that event was adequately covered in
accordance with this Agreement by the Insurances shall be determined
in accordance with Article 16.
9.4 Effect on liability of the Long Term Transmission Customers
[Insert Name of the TSP] Page 36 of 109