Format Dx Project Works - Eskom

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GENERAL MEMORANDA APPLICABLE TO ALL SECTIONS (Continued)
MEMO 14 - CANCELLATION CLAUSE
This Policy shall continue unless terminated by 30 (thirty) days notice in writing given by the Insurer to the
Contractor at its registered address or by the Contractor to the Insurer as the case may be.
Notwithstanding the aforementioned Cancellation at the option of the Insured the insurance provided by this
policy shall continue to apply to any Contract in respect of which tenders have a closing date prior to the
expiry of such period of notice. In relation to any such Contract the cover granted under this Policy shall
continue and all the Terms, Exceptions and Conditions of this Policy shall mutatis mutandis apply until
completion of such Contracts and the maintenance period stipulated in the Contract documents. In the
event of the Insured exercising this option The Insurer shall be notified of such intention at the time of notice
of Cancellation is given and the premium shall be adjusted proportionately at the rates applicable under the
Policy and any additional premium due paid to the Insurer.
The aforegoing provisions shall also apply in the event of the Policy being lapsed.
MEMO 15 – SA JURISDICTION
This insurance is governed by the laws of The Republic of South Africa and the courts of The Republic of
South Africa shall have jurisdiction in all matters arising hereunder.
MEMO 16 – ABANDONMENT
In the event of stoppage or work on any contract site from any cause for a period of three consecutive
months cover under this Policy shall be suspended in respect of that contract site unless its continuance
shall be agreed in writing with the Insurers.
MEMO 17 – FOLLOW THE LEAD CLAUSE
Where more than one Reinsurer subscribes to this insurance it is agreed that all Reinsurers subscribing
hereto will be bound by the decision of the leading Reinsurer and will follow the same rates, conditions, claim
settlements and all matters relating to the insurance granted by this policy as may be agreed by the leading
Reinsurer.
It is further agreed that all endorsements hereto will be legally binding on all Reinsurers when signed by the
leading Reinsurer.
The only exceptions are Indemnity limit, nor shall claim repudiations by the leading Reinsurer be binding on
Co –Reinsurers.