Page 152 - Policy Wording - Hollard Business Binder (2020-08-26)

Spray-Irrigation Systems and Centre Pivots
1. GENERAL
SPRAY-IRRIGATION SYSTEMS AND CENTRE PIVOTS
1.1 For the purpose of this section all systems are referred to as irrigation systems.
1.2 Systems provided for in terms of sections Fire, Motor, Accidental Damage or Business All Risks must be cancelled and the cover issued under this section.
1.3 If only Fire perils are required the cover can be optionally reduced.
1.4 This is strictly accommodation business and not allowed without supporting sections.
1.5 This section indemnifies the Insured in respect of any unforeseen and sudden physical damage to the machinery described in the schedule from any cause whilst it is at work or at rest or being dismantled for the purpose of cleaning, inspection and overhaul or removal to another position or in the course of these operations themselves or subsequent re-erection within the Insured's premises.
1.6 This section is based on the Motor wording and as such on an All Risks basis.
2. UNDERSTAND THE RISK
2.1 Establish the perils required.
2.2 The policy cover is standard Comprehensive but can be reduced to either Fire perils, Third Party only or Third Party, Fire and Theft cover.
2.3 Cover is extended to include whilst being towed to another working site.
2.4 Contracting is excluded under all circumstances.
2.5 How far the system is working from main roads may impact on the theft aspect of the cover.
2.6 Obtain claims history – this is extremely important as the previous losses will indicate where the weak points are and where to apply underwriting measures.
3. UNDERWRITE THE RISK
3.1 Cover is always subject to a current maintenance contract.
3.2 Value is always replacement value.
3.3 An indication of replacement value is approximately R55 000 (fifty five thousand rand) per tower, but ancillary equipment may increase/reduce this value.
3.4 Always specify each system separately and if more than one system is listed, try to identify the system (Name the land section where operating or otherwise).
3.5 Systems older than 5 (five) years to be accompanied by an engineer's report to confirm good condition.
3.6 Suggest to the Insured that filled-in tracks which will prevent sagging or the system swinging out of line and falling over. A premium discount is applicable.
3.7 Warranties
3.7.1 It is warranted a maintenance contract will always be in place and systems are being serviced in accordance with manufacturer guidelines.
3.7.2 It is warranted, unless agreed by the Company, that all maintenance will be done by an officially appointed agent of the manufacturer.
3.7.2.1 Where the farmer conducts own maintenance a logbook must be maintained and made available on request of the Company.
3.7.2.2 No systems under warranty may be maintained by the Insured.
3.7.3 It is warranted that all cables are protected by an alarm system unless cables are replaced by optic fibre or other types. Alarms must be connected to the cell phone of the Insured or control room or local SAPS.
Commercial Underwriting Mandates and Guidelines – Binder – Version 2 2020 151