1.
MECHANICAL BREAKDOWN or FAILURE:
caused
ii.
by
negligence, misuse or abuse;
caused
by lack of maintenance (see maintenance
requirements in Section “B YOUR
RESPONSIBILITIES”);
iii.
caused by any external cause, such as fire,
lightning, explosion, the extinguishing of a fire
or subsequent demolition, aircraft and other
aerial devices or articles dropped therefrom,
collapse of buildings, theft or any attempt of
threat, earthquake, tsunami, volcanic eruption, or
other convulsion of nature, subsidence, landslide,
rock fall, avalanche, hurricane, tornado, typhoon,
cyclone or other atmospheric disturbances, flood,
inundation, escaping water from water containing
apparatus, or clearance of debris, demolition or
dismantling arising from these causes;
iv.
arising out of the FAILURE of an otherwise covered
part that does not meet manufacturers
specifications, including modification and/or
alterations to the EQUIPMENT not approved by the
manufacturers authorized representative or the
ADMINISTRATOR;
v.
caused by the application of any tool or process
during the course of maintenance, inspection,
modification or overhaul; transportation to and
from repair facility;
vi.
covered by warranty, repairers guarantee, other
service contract, or insurance policy;
vii.
of any part(s), component(s), or repair(s)
described as covered by the manufacturers warranty
for the term and meter hours of such coverage at
the time of first retail sale, whether collectible
or not;
viii.
caused by the imposition of abnormal conditions,
directly or indirectly resulting from testing,
intentional overloading or experiments;
ix.
directly occasioned by pressure waves caused by
aircraft or other aerial devices traveling at
sonic or supersonic speeds;
x.
where it is determined that for more than one (1)
month or two hundred (200) hours that the service
meter has been inaccurate, inoperative, or altered
so that the EQUIPMENT’S true usage cannot be
verified;
xi.
that is a direct result of a mechanical or
structural defect when the manufacturer has
announced a public recall or a product support
program for the purpose of correcting such defect;
xii.
due to continued operation and failure to protect
the EQUIPMENT from further damage caused by lack
of necessary coolants or lubricants;
xiii.
of a covered part which is damaged by fuel or
lubricant contamination or rust;
xiv.
that occurs prior to this CONTRACT’s ISSUE
DATE/EFFECTIVE DATE, whichever is earlier, or
after this CONTRACT’s expiration;
xv.
occasioned by or through or in consequence
directly or indirectly of any of the following
occurrences;
a.
war, invasion, acts of foreign enemies,
hostilities (whether war be declared or not),
civil war, rebellion, revolution, insurrection,
military or usurped power or confiscation or
nationalization or requisition or destruction of
or damage to property by or under the order of any
government or public or local authority;
b.
the act of any person acting on the behalf of or
in connection with any organization with
activities directed toward the overthrow by force
of the government de jure or de facto or to the
influence of it by terrorism or violence;
c.
riot, strike, lock-out, civil commotion,
confiscation, commandeering or requisition by
order of any lawfully constituted authority.
xvi.
directly or indirectly caused by or contributed to
by or arising from;
a.
ionizing radiation or contamination by
radioactivity from any nuclear fuel or from any
nuclear waste from the combustion of nuclear fuel;
b.
the radioactive, toxic, or explosive or other
hazardous properties of any explosive nuclear
assembly or nuclear component thereof;
xvii.
caused by any operation in which a load is shared
between any item of MACHINE classed as lifting
EQUIPMENT (whether covered hereunder or not)
unless otherwise agreed in writing by the
ADMINISTRATOR.
2.
Loss of time, inconvenience, bodily injury and
property damage, or other incidental or
consequential damage that results from MECHANICAL
BREAKDOWN or FAILURE, including: loss of use of
any EQUIPMENT or consequential loss of any nature
whatsoever, penalties for delay or detention, or
in connection with guarantees of performance or
efficiency.
3.
Storage, freight charges and taxes.
4.
Repairs to any non-covered parts or ground
engaging tools.
5.
Loss or damage to frame or failure of hardware
attaching covered components to the frame,
propulsion, exchangeable or replaceable parts not
contained within or forming an operational part of
the engine, transmission or final drive axle
assembly or exchangeable or replaceable parts and
attachments such as flexible drives or tools used
for cutting, drilling, grinding, polishing or
similar purposes; moulds, patterns, pulverizing
and crushing surfaces; refractory linings, ropes,
chains, belts, elevator and conveyer bands,
batteries, tires, connecting wire and cables,
flexible pipes jointing, packing material and all
other parts not made of metal (except the
insulation of electrical conductors and
non-metallic parts contained within the power
train); fuel filters cooling media, lubricants,
catalysts, chemicals or other operating media or
materials; paint, radiator hose, wiper blades,
bulbs, seat and cushion, engine tune up, supply
items such as brake clean, silicone gasket
material or welding rods, door latches, handles or
hinges, seat belts, grab rails, horn, operating
lights, radiator cap, back up alarm, ac filters,
water filters, air filters, etc.; engine dipstick
and transmission dipstick, bed liner, teeth on
shank assembly, door, window, mirror, mirror
bracket, weather stripping, track shoe/pad rebar
(grouser).
6.
Undercarriage components on track-type and track
belt machines-including sprockets, drive wheels,
track assemblies, track belts, track rollers,
mid-wheels, idlers, roller frames tensioning
system and non-powered axles.
7.
Radiator.
8.
Engine attachments such as alternator, starter,
air compressor and air conditioning compressor.
9.
External hoses and lines for oil, water, and air
(except hydrostatic lines & hoses between the
drive pump and motor).
10.
The cost of establishing preventative procedures
or the cost of recall by the Manufacturer of the
covered EQUIPMENT or any part thereof nor the cost
of alterations, additions, improvements or
overhauls.
11.
Additional loss or damage which is occasioned by
the CONTRACT HOLDER or operator’s failure to use
all reasonable precautions to protect the
EQUIPMENT from any further loss or damage after a
MECHANICAL BREAKDOWN or FAILURE has occurred.
12.
The cost of tear down, disassembly or assembly if
coverage cannot be applied.
13.
Any costs if verifiable proof of maintenance, as
required in Section B, “YOUR RESPONSIBILITIES” is
not furnished on request.
14.
Any wastage of material, wearing away or wearing
out of any part of the EQUIPMENT caused by or
resulting from ordinary usage, rust, boiler scale,
other deposits, erosion, corrosion, cavitation or
deterioration due to chemical or atmospheric
conditions, or other scratching of painted or
polished surfaces and or other environmental
conditions. Slowly developing, deformation,
distortion, cracks, fractures, blisters,
laminations, flaws or grooving or the making good
of defective tube joints or other defective joints
or seams unless such defects in damage otherwise
covered under this CONTRACT.
15.
Any legal liability of whatsoever nature;
16.
Damage to a covered component that is caused by
the failure of a non-covered component.
17.
Minor adjustments.
18.
Notwithstanding any provision to the contrary
within the CONTRACT (or within any other
endorsement which forms part of this CONTRACT),
this CONTRACT does not provide coverage for land
(including but not limited to land on which the
covered EQUIPMENT is located), water or air,
however and wherever occurring, or any interest or
right therein. Seepage and/or pollution and/or
contamination. Any loss, damage, cost or expense,
or any increase in covered loss, damage, cost or
expense, or any loss, damage, cost, expense, fine
or penalty, which is incurred, sustained or
imposed by order, direction, instruction or
request of, or by an agreement with, any court,
government agency or any public or military
authority, or threat thereof, (and whether or not
as a result of public or private litigation),
which arises from any kind of seepage or any kind
of pollution and/or contamination, or threat
thereof, whether or not caused by or resulting
from use of the covered EQUIPMENT, or from steps
or measures taken in connection with the
avoidance, prevention, abatement, mitigation,
remediation, clean up or removal of such seepage
or pollution and/or contamination or threat
thereof . The term “any kind of seepage or any
kind of pollution and/or contamination” as used
herein includes (but is not limited to); Seepage
of, or pollution and/or contamination by,
anything, including but not limited to, any
material designated as a “hazardous substance” by
the United States Environmental Protection Agency
or as “hazardous material” by the United States
Department of Transportation, or defined as a
“toxic substance” by the Canadian Environmental
Protection Act, or any substance designated or
defined as toxic, dangerous, hazardous or
deleterious to persons or the environment under
any other Federal, State, Provincial, Municipal,
or other law, ordinance or regulation; and the
presence, existence, or release of anything which
endangers or threatens to endanger the health,
safety or welfare of persons or the environment.
19.
Replacement parts and repairs made by US pursuant
to the CONTRACT coverage shall assume only the
unused portion of this CONTRACT and not extend the
stated CONTRACT period.
20.
This CONTRACT does not cover any loss, damage,
cost, claim, or expense, whether preventative,
remedial or otherwise, directly or indirectly
arising out of or relating to:
a: the
calculation, comparison, differentiation,
sequencing or processing of data involving the
date change to the year 2000, or any other date
change, including leap year calculations, by any
computer system, hardware program, or software
and/or any microchip, integrated circuit or
similar device in computer equipment or
non-computer equipment, whether the property of
the CONTRACT HOLDER or not; or
b:
any change, alteration, or modification involving
the date change to the year 2000, or any other
date change, including leap year calculations, to
any such computer system, hardware, program or
software and/or any microchip, integrated circuit
or similar device in computer equipment or non-
computer equipment, whether the property of the
CONTRACT HOLDER or not. This clause applies
regardless of any other clause or event that
contributes concurrently or in any sequence to the
loss, damage, cost, claim or expense.
