Section 5: Insurance

Setting Up @ PKFZ > Rules & Regulations

Section 5: Insurance

PKFZ Rules & Regulation
Section 5: 
Insurance

5.1.0
Insurance of Buildings
5.1.1

Free Zone Clients are required to have their premises insured against fire and other natural disasters, as per the Lease/Tenancy Agreement.

5.1.2
The Lessee/Tenant shall at all times during the Sub-Lease Term, effect and maintain with a reputable insurance company acceptable by the PKFZ Management:

  1. insurance for the replacement and reinstatement of the Premises;
  2. insurance for the inherent defects arising in respect of the Premises;
  3. public risk insurance relating to the Premises;
  4. insurance against any liability which may arise at common law or by virtue of any relevant workers’ compensation legislation in relation to the Premises or the constrution of the Premises; and
  5. any other insurance that the PKFZ Management shall deem fit and appropriate

The Lessee/Tenant shall :-

  1. place all insurance policies specified above :

    i) for such amounts; and
    ii) covering such risks and containing such conditions, endorsement and exclusions,

    as are reasonably acceptable or required by the PKFZ Management and/or any relevant authority.

  2. not make any exclusions, endorsements or alterations to any of the insurance policies unless with the prior written consent of the PKFZ Management and/or the relevant authorities whose consent shall not be unreasonably witheld.
  3. provide the PKFZ Management with certified copies of the said insurance policies and all renewal certificates and endorsement slips within three (3) working days of receipt by the lessee / tenant of such copies of policies, renewal certificates and endorsement slips from the insurance company (Open Land Only).
  4. punctually pay all premiums in respect of the said insurance policies and their renewals.
  5. bear and pay all insurance excess amounts required to be paid or imposed under the said insurance policies in the event a claim is or claims are made under such insurance policies, and
  6. promptly effect replacement of the insurance policies with other reputable insurance companies acceptable by the Sub-Committee as a substitute to any of the said insurance policies which have been cancelled or become void for any reason whatsoever.
5.1.3

For premises erected by the client, the client shall be responsible for arranging the insurance, which shall be in the name of the client’s company. The policy shall be sufficient to cover clearance and replacement costs of the structure, fixtures, fittings and all completed basic services promoted by the PKFZ Management. The policy must be presented before the Building Completion Certificate can be issued.

5.1.4

For premises erected by the Free Zone Management, (LOB,LIU) the insurance will be arranged by the PKFZ Management on behalf of the Lessee. The insurance shall be in the name of the Free Zone Management. The client shall be required to pay a contribution to the insurance premium. This will take the form of an annual standard charge which is to be tabulated based on the minimum premium value divided over the leased period. The Master Policy will be available for inspection on request, via the Administration Department and Lease Section.

5.1.5

Insurance of “contents” of any building shall be at the discretion of lessees. The PKFZ Management will not be liable for any loss or damage to Lessees’ contents, due to any reason, including theft or natural calamities.

5.1.6

All other insurances referred to in the Lease Agreement shall remain the responsibility of the Lessee.