INSURANCE OF THE PROPERTY. 6.1 The Lessee is obliged to conclude, with an insurer acceptable to the Lessor and on the terms and conditions specified in the Agreement (including the Special Conditions), a property insurance contract on the Property, as well as a motor third party liability insurance contract, where the Property is subject to registration in the traffic register. The insurance contracts shall be concluded immediately, but not later than on the day of transfer of possession of the Property to the Lessee. It shall be forbidden for the Lessee to use the Property (including to enter into traffic) before the insurance contract(s) and the insurance cover take effect. 6.2 The Lessee is obliged to ensure validity of the insurance contracts and guarantee a constant insurance cover under the terms and conditions of the Agreement during the term of the Agreement, and to appropriately renew and/or extend the insurance contracts, as required. 6.3 Both the property insurance contract and the motor third party liability insurance contract (including the insurance policy issued under the contract) shall be concluded with a term of at least one year, with the insurance premium payable thereof being paid in a lump sum upon entry into the contract. The Property shall be ensured under the property insurance contract in the amount of its market value and/or reinstatement value, with the self-retention rate established in the amount acceptable to the Lessor. The property insurance contract shall cover all risks related to the possession and use of the Property (including traffic accidents, natural disasters, fire, burglary, robbery and acts of vandalism). The insurance cover shall be valid all over Europe (except for the CIS countries). 6.4 The list of insurers acceptable to the Lessor, the self retention acceptable to the Lessor and/or other details regarding the insurance of the Property are available at the Lessor’s branch offices or on the Lessor’s website (▇▇▇.▇▇▇.▇▇). The Lessor shall have the right to make changes in the list of insurers acceptable to the Lessor. Where the Property has been insured by an insurer which is not acceptable to the Lessor but which was included in the list of insurers acceptable to the Lessor at the time of conclusion of the insurance contract, the Lessee shall have the obligation, upon expiry of the insurance contract and/or the insurance policy, to conclude a new insurance contract with an insurer acceptable to the Lessor. 6.5 Upon agreement with the Lessor, the Lessee may conclude insurance contracts via the Lessor. In this case, the Lessor shall conclude the insurance contract(s) on its own behalf but at the expense of the Lessee. Upon the Lessee’s request, the Lessor shall finance the insurance payments to be made under the insurance contracts concluded via the Lessor. In this case, interest shall be charged from the Lessee on the payments. The Lessee shall make all payments arising from the insurance contract(s) concluded via the Lessor either on the basis of the Insurance Payment Schedule prepared by the Lessor and/or on the basis of separate invoices to be presented by the Lessor. 6.6 Upon conclusion of the property insurance contract (including via the Lessor), the Lessee is obliged, upon the insurer's demand, to allow the Property to be inspected by the insurer or the insurer's representative, and to provide the insurer with truthful information any significant circumstances related to the Property as well as any factors liable to add to the insurance risk, and to immediately report any change of such circumstances during the validity of the insurance contract. 6.7 The Lessee is obliged to establish the Lessor as the beneficiary in the insurance contract. Insurance contracts shall always be concluded in such a way that in case of an insured event the Lessor would be the beneficiary of the financial compensation and the insurer would transfer the insurance indemnity to the Lessor’s account (or, based on the Lessor's written application, to the account of the repair service provider or of the Lessee). 6.8 The Lessee is obliged to submit to the Lessor the valid Property insurance policies at the latest on the date of transfer of possession of the Property to the Lessee and/or the extended policies (in case of extension of the policies) at the latest within seven (7) calendar days prior to the expiry of the valid insurance policy/policies, by sending an e-mail to ▇▇▇▇▇▇@▇▇▇.▇▇. 6.9 Should the Lessee fail to submit the insurance policies to the Lessor in a timely manner or to conclude insurance contract(s) altogether, the Lessor shall have the right to conclude the insurance contract(s), on its own behalf and at the expense of the Lessee, with an insurer(s) chosen by the Lessor in accordance with the provisions of the Agreement, and to demand from the Lessee full compensation of any costs incurred thereof, with the Lessor also entitled to finance the insurance payments to be made under the above insurance contract(s), in which case the Lessor shall pay, in addition to compensation for the insurance payments, any interest calculated on the insurance payments (on the basis of the Insurance Payment Schedule prepared by the Lessor and/or on the basis of separate invoices to be presented by the Lessor). 6.10 The Lessee is obliged to appropriately fulfil all of the obligations of the policyholder and/or the Property owner arising from the insurance contract, to refrain from any activity or failure to act which may, pursuant to the Property insurance contract, result in the amendment or cancellation of the contract, increase the insurance premium, trigger an insured event or add to the probability of occurrence of an insured event. 6.11 Upon occurrence of an insured event, the Lessee shall be obliged to apply all measures to save the Property and prevent further damage, to immediately report the insured event to the insurer, law enforcement authorities and/or the Rescue Board, and fulfil other obligations stipulated in the insurance contract, and to inform the Lessor at the latest within three (3) calendar days of the circumstances related to the damaging or destruction of the Property. 6.12 In case of occurrence of an insured event, the Lessee is obliged to represent the Lessor in communication with the insurer, the police, vehicle register, repair service provider and any other parties in connection with the occurrence of an insured event, insurance indemnity and issues related to the reinstatement and repairing of the Property. The Lessor shall have the right to personally participate in the negotiations at any time. 6.13 In case of damage to the Property, the Lessee shall be obliged to reinstate the Property at his/her own expense as soon as possible, and to inform the Lessor of the measures taken to reinstate the Property. The Lessee is obliged to select contractors who would provide the work with a warranty acceptable to the Lessor. 6.14 In case of an insured event, where the Property is destroyed or rendered unfit for use, is stolen or lost, etc., the insurance indemnity shall be used, to the extent possible, to compensate to the Lessor any fees and expenses which are related to the acquisition of the Property and which are yet to be compensated by the Lessee to the Lessor under the Agreement, as well as the outstanding Financed Amount (including Residual Value of Property) and any expenses and damage (including financing expenses) borne by the Lessor through premature termination of the Agreement. 6.15 In a case where the Property is destroyed, damaged, lost, etc. without any compensation payable by the insurer for any reason, or in a case which is not considered an insured event under the insurance contract and is not thus to be compensated by the insurer, or in a case where the insurance indemnity transferred to the Lessor’s account does not cover all expenses and damage borne by the Lessor as specified in clause 6.14, the Lessee shall be obliged to compensate to the Lessee for the expenses and damage (or the outstanding amount) specified in clause 6.14. The Lessee is obliged, within 14 (fourteen) calendar days after receiving the corresponding notice from the Lessor, to compensate to the Lessor the uncompensated expenses and damage borne by the Lessor. 6.16 The Lessee’s disagreement with the insurer’s decision with regard to the non- recognition of the destruction or damage of the Property as an insured event or refusal to compensate for the damage, and the corresponding legal disputes, shall not exempt the Lessee from the timely and appropriate fulfilment of the obligation stipulated in clause 6.15 of the Agreement in front of the Lessor. 6.17 Upon expiry of the Agreement, the Lessor shall have the contractual right and the Lessee’s authorisation to terminate any insurance contracts concluded for the insurance of the Property. 6.18 All insurance premiums as well as other expenses and/or damage related to the insurance (including recourse actions filed by insurers against the Lessee with regard to the Property) shall be paid by the Lessee. Where the Lessor has borne any expenses and/or damage, the Lessee shall be obliged to immediately and fully compensate the expenses and/or damage to the Lessor.
Appears in 2 contracts
Sources: Operational Lease Agreement, Operational Lease Agreement
INSURANCE OF THE PROPERTY. 6.1 The Lessee is obliged to conclude, with an insurer acceptable to the Lessor and on the terms and conditions specified in the Agreement (including the Special Conditions), a property insurance contract on the Property, as well as a motor third party liability insurance contract, where the Property is subject to registration in the traffic register. The insurance contracts shall be concluded immediately, but not later than on the day of transfer of possession of the Property to the Lessee. It shall be forbidden for the Lessee to use the Property (including to enter into traffic) before the insurance contract(s) and the insurance cover take effect.
6.2 The Lessee is obliged to ensure validity of the insurance contracts and guarantee a constant insurance cover under the terms and conditions of the Agreement during the term of the Agreement, and to appropriately renew and/or extend the insurance contracts, as required.
6.3 Both the property insurance contract and the motor third party liability insurance contract (including the insurance policy issued under the contract) shall be concluded with a term of at least one year, with the insurance premium payable thereof being paid in a lump sum upon entry into the contract. The Property shall be ensured under the property insurance contract in the amount of its market value and/or reinstatement value, with the self-retention rate established in the amount acceptable to the Lessor. The property insurance contract shall cover all risks related to the possession and use of the Property (including traffic accidents, natural disasters, fire, burglary, robbery and acts of vandalism). The insurance cover shall be valid all over Europe (except for the CIS countries).
6.4 The list of insurers acceptable to the Lessor, the self retention acceptable to the Lessor and/or other details regarding the insurance of the Property are available at the Lessor’s branch offices or on the Lessor’s website (▇▇▇.▇▇▇.▇▇). The Lessor shall have the right to make changes in the list of insurers acceptable to the Lessor. Where the Property has been insured by an insurer which is not acceptable to the Lessor but which was included in the list of insurers acceptable to the Lessor at the time of conclusion of the insurance contract, the Lessee shall have the obligation, upon expiry of the insurance contract and/or the insurance policy, to conclude a new insurance contract with an insurer acceptable to the Lessor.
6.5 Upon agreement with the Lessor, the Lessee may conclude insurance contracts via the Lessor. In this case, the Lessor shall conclude the insurance contract(s) on its own behalf but at the expense of the Lessee. Upon the Lessee’s request, the Lessor shall finance the insurance payments to be made under the insurance contracts concluded via the Lessor. In this case, interest shall be charged from the Lessee on the payments. The Lessee shall make all payments arising from the insurance contract(s) concluded via the Lessor either on the basis of the Insurance Payment Schedule prepared by the Lessor and/or on the basis of separate invoices to be presented by the Lessor.
6.6 Upon conclusion of the property insurance contract (including via the Lessor), the Lessee is obliged, upon the insurer's demand, to allow the Property to be inspected by the insurer or the insurer's representative, and to provide the insurer with truthful information any significant circumstances related to the Property as well as any factors liable to add to the insurance risk, and to immediately report any change of such circumstances during the validity of the insurance contract.
6.7 The Lessee is obliged to establish the Lessor as the beneficiary in the insurance contract. Insurance contracts shall always be concluded in such a way that in case of an insured event the Lessor would be the beneficiary of the financial compensation and the insurer would transfer the insurance indemnity to the Lessor’s account (or, based on the Lessor's written application, to the account of the repair service provider or of the Lessee).
6.8 The Lessee is obliged to submit to the Lessor the valid Property insurance policies at the latest on the date of transfer of possession of the Property to the Lessee and/or the extended policies (in case of extension of the policies) at the latest within seven (7) calendar days prior to the expiry of the valid insurance policy/policies, by sending an e-mail to ▇▇▇▇▇▇@▇▇▇.▇▇.
6.9 Should the Lessee fail to submit the insurance policies to the Lessor in a timely manner or to conclude insurance contract(s) altogether, the Lessor shall have the right to conclude the insurance contract(s), on its own behalf and at the expense of the Lessee, with an insurer(s) chosen by the Lessor in accordance with the provisions of the Agreement, and to demand from the Lessee full compensation of any costs incurred thereof, with the Lessor also entitled to finance the insurance payments to be made under the above insurance contract(s), in which case the Lessor shall pay, in addition to compensation for the insurance payments, any interest calculated on the insurance payments (on the basis of the Insurance Payment Schedule prepared by the Lessor and/or on the basis of separate invoices to be presented by the Lessor).
6.10 The Lessee is obliged to appropriately fulfil all of the obligations of the policyholder and/or the Property owner arising from the insurance contract, to refrain from any activity or failure to act which may, pursuant to the Property insurance contract, result in the amendment or cancellation of the contract, increase the insurance premium, trigger an insured event or add to the probability of occurrence of an insured event.
6.11 Upon occurrence of an insured event, the Lessee shall be obliged to apply all measures to save the Property and prevent further damage, to immediately report the insured event to the insurer, law enforcement authorities and/or the Rescue Board, and fulfil other obligations stipulated in the insurance contract, and to inform the Lessor at the latest within three (3) calendar days of the circumstances related to the damaging or destruction of the Property.
6.12 In case of occurrence of an insured event, the Lessee is obliged to represent the Lessor in communication with the insurer, the police, vehicle register, repair service provider and any other parties in connection with the occurrence of an insured event, insurance indemnity and issues related to the reinstatement and repairing of the Property. The Lessor shall have the right to personally participate in the negotiations at any time.
6.13 In case of damage to the Property, the Lessee shall be obliged to reinstate the Property at his/her own expense as soon as possible, and to inform the Lessor of the measures taken to reinstate the Property. The Lessee is obliged to select contractors who would provide the work with a warranty acceptable to the Lessor.
6.14 In case of an insured event, where the Property is destroyed or rendered unfit for use, is stolen or lost, etc., the insurance indemnity shall be used, to the extent possible, to compensate to the Lessor any fees and expenses which are related to the acquisition of the Property and which are yet to be compensated by the Lessee to the Lessor under the Agreement, as well as the outstanding Financed Amount (including Residual Value of Property) and any expenses and damage (including financing expenses) borne by the Lessor through premature termination of the Agreement.
6.15 In a case where the Property is destroyed, damaged, lost, etc. without any compensation payable by the insurer for any reason, or in a case which is not considered an insured event under the insurance contract and is not thus to be compensated by the insurer, or in a case where the insurance indemnity transferred to the Lessor’s account does not cover all expenses and damage borne by the Lessor as specified in clause 6.14, the Lessee shall be obliged to compensate to the Lessee for the expenses and damage (or the outstanding amount) specified in clause 6.14. The Lessee is obliged, within 14 (fourteen) calendar days after receiving the corresponding notice from the Lessor, to compensate to the Lessor the uncompensated expenses and damage borne by the Lessor.
6.16 The Lessee’s disagreement with the insurer’s decision with regard to the non- recognition of the destruction or damage of the Property as an insured event or refusal to compensate for the damage, and the corresponding legal disputes, shall not exempt the Lessee from the timely and appropriate fulfilment of the obligation stipulated in clause 6.15 of the Agreement in front of the Lessor.
6.17 Upon expiry of the Agreement, the Lessor shall have the contractual right and the Lessee’s authorisation to terminate any insurance contracts concluded for the insurance of the Property.
6.18 All insurance premiums as well as other expenses and/or damage related to the insurance (including recourse actions filed by insurers against the Lessee with regard to the Property) shall be paid by the Lessee. Where the Lessor has borne any expenses and/or damage, the Lessee shall be obliged to immediately and fully compensate the expenses and/or damage to the Lessor.
Appears in 1 contract
Sources: Financial Lease Agreement
INSURANCE OF THE PROPERTY. 6.1 The Lessee is obliged to conclude, with an insurer acceptable to the Lessor and on the terms and conditions specified in the Agreement (including the Special Conditions), a property insurance contract on the Property, as well as a motor third party liability insurance contract, where the Property is subject to registration in the traffic register. The insurance contracts shall be concluded immediately, but not later than on the day of transfer of possession of the Property to the Lessee. It shall be forbidden for the Lessee to use the Property (including to enter into traffic) before the insurance contract(s) and the insurance cover take effect.
6.2 The Lessee is obliged to ensure validity of the insurance contracts and guarantee a constant insurance cover under the terms and conditions of the Agreement during the term of the Agreement, and to appropriately renew and/or extend the insurance contracts, as required.
6.3 Both the property insurance contract and the motor third party liability insurance contract (including the insurance policy issued under the contract) shall be concluded with a term of at least one year, with the insurance premium payable thereof being paid in a lump sum upon entry into the contract. The Property shall be ensured under the property insurance contract in the amount of its market value and/or reinstatement value, with the self-retention rate established in the amount acceptable to the Lessor. The property insurance contract shall cover all risks related to the possession and use of the Property (including traffic accidents, natural disasters, fire, burglary, robbery and acts of vandalism). The insurance cover shall be valid all over Europe (except for the CIS countries).
6.4 The list of insurers acceptable to the Lessor, the self retention acceptable to the Lessor and/or other details regarding the insurance of the Property are available at the Lessor’s branch offices or on the Lessor’s website (▇▇▇.▇▇▇.▇▇). The Lessor shall have the right to make changes in the list of insurers acceptable to the Lessor. Where the Property has been insured by an insurer which is not acceptable to the Lessor but which was included in the list of insurers acceptable to the Lessor at the time of conclusion of the insurance contract, the Lessee shall have the obligation, upon expiry of the insurance contract and/or the insurance policy, to conclude a new insurance contract with an insurer acceptable to the Lessor.
6.5 Upon agreement with the Lessor, the Lessee may conclude insurance contracts via the Lessor. In this case, the Lessor shall conclude the insurance contract(s) on its own behalf but at the expense of the Lessee. Upon the Lessee’s request, the Lessor shall finance the insurance payments to be made under the insurance contracts concluded via the Lessor. In this case, interest shall be charged from the Lessee on the payments. The Lessee shall make all payments arising from the insurance contract(s) concluded via the Lessor either on the basis of the Insurance Payment Schedule prepared by the Lessor and/or on the basis of separate invoices to be presented by the Lessor.
6.6 Upon conclusion of the property insurance contract (including via the Lessor), the Lessee is obliged, upon the insurer's demand, to allow the Property to be inspected by the insurer or the insurer's representative, and to provide the insurer with truthful information any significant circumstances related to the Property as well as any factors liable to add to the insurance risk, and to immediately report any change of such circumstances during the validity of the insurance contract.
6.7 The Lessee is obliged to establish the Lessor as the beneficiary in the insurance contract. Insurance contracts shall always be concluded in such a way that in case of an insured event the Lessor would be the beneficiary of the financial compensation and the insurer would transfer the insurance indemnity to the Lessor’s account (or, based on the Lessor's written application, to the account of the repair service provider or of the Lessee).
6.8 The Lessee is obliged to submit to the Lessor the valid Property insurance policies at the latest on the date of transfer of possession of the Property to the Lessee and/or the extended policies (in case of extension of the policies) at the latest within seven (7) calendar days prior to the expiry of the valid insurance policy/policies, by sending an e-mail to ▇▇▇▇▇▇@▇▇▇.▇▇.
6.9 Should the Lessee fail to submit the insurance policies to the Lessor in a timely manner or to conclude insurance contract(s) altogether, the Lessor shall have the right to conclude the insurance contract(s), on its own behalf and at the expense of the Lessee, with an insurer(s) chosen by the Lessor in accordance with the provisions of the Agreement, and to demand from the Lessee full compensation of any costs incurred thereof, with the Lessor also entitled to finance the insurance payments to be made under the above insurance contract(s), in which case the Lessor shall pay, in addition to compensation for the insurance payments, any interest calculated on the insurance payments (on the basis of the Insurance Payment Schedule prepared by the Lessor and/or on the basis of separate invoices to be presented by the Lessor).
6.10 The Lessee is obliged to appropriately fulfil all of the obligations of the policyholder and/or the Property owner arising from the insurance contract, to refrain from any activity or failure to act which may, pursuant to the Property insurance contract, result in the amendment or cancellation of the contract, increase the insurance premium, trigger an insured event or add to the probability of occurrence of an insured event.
6.11 Upon occurrence of an insured event, the Lessee shall be obliged to apply all measures to save the Property and prevent further damage, to immediately report the insured event to the insurer, law enforcement authorities and/or the Rescue Board, and fulfil other obligations stipulated in the insurance contract, and to inform the Lessor at the latest within three (3) calendar days of the circumstances related to the damaging or destruction of the Property.
6.12 In case of occurrence of an insured event, the Lessee is obliged to represent the Lessor in communication with the insurer, the police, vehicle register, repair service provider and any other parties in connection with the occurrence of an insured event, insurance indemnity and issues related to the reinstatement and repairing of the Property. The Lessor shall have the right to personally participate in the negotiations at any time.
6.13 In case of damage to the Property, the Lessee shall be obliged to reinstate the Property at his/her own expense as soon as possible, and to inform the Lessor of the measures taken to reinstate the Property. The Lessee is obliged to select contractors who would provide the work with a warranty acceptable to the Lessor.
6.14 In case of an insured event, where the Property is destroyed or rendered unfit for use, is stolen or lost, etc., the insurance indemnity shall be used, to the extent possible, to compensate to the Lessor any fees and expenses which are related to the acquisition of the Property and which are yet to be compensated by the Lessee to the Lessor under the Agreement, as well as the outstanding Financed Credit Amount (including Residual Value of Property) and any expenses and damage (including financing expenses) borne by the Lessor through premature termination of the Agreement.
6.15 In a case where the Property is destroyed, damaged, lost, etc. ., without any compensation payable by the insurer for any reason, or in a case which is not considered an insured event under the insurance contract and is not thus to be compensated by the insurer, or in a case where the insurance indemnity transferred to the Lessor’s account does not cover all expenses and damage borne by the Lessor as specified in clause 6.14, the Lessee shall be obliged to compensate to the Lessee for the Lessor all expenses and damage damages (or the outstanding amount) specified in clause 6.14. The Lessee is obliged, within 14 (fourteen) calendar days after receiving the corresponding notice from the Lessor, to compensate to the Lessor the uncompensated expenses and damage borne by the Lessor.
6.16 The Lessee’s disagreement with the insurer’s decision with regard to the non- recognition of the destruction or damage damaging of the Property as an insured event or refusal to compensate for the damage, and the corresponding legal disputes, shall not exempt the Lessee from the timely and appropriate fulfilment of the obligation stipulated in clause 6.15 of the Agreement in front of the Lessor.
6.17 Upon expiry of the Agreement, the Lessor shall have the contractual right and the Lessee’s authorisation to terminate any insurance contracts concluded for the insurance of the Property.
6.18 All insurance premiums as well as other expenses and/or damage related to the insurance (including recourse actions filed by insurers against the Lessee with regard to the Property) shall be paid by the Lessee. Where the Lessor has borne any expenses and/or damage, the Lessee shall be obliged to immediately and fully compensate the expenses and/or damage to the Lessor.
Appears in 1 contract
Sources: Financial Lease Agreement