Australian Aviation Underwriting Pool Proprietary Limited A.C.N. 004 489 810 Your Aviation Insurance Policy - Helicopter EDITION 1 Section 1: ABOUT THIS POLICY 1. YOUR RELATIONSHIP WITH US We have authorised our Agent to enter into this Policy (which includes the Coverage Schedule and any endorsement(s) with you on behalf of each of us and to do all things we are able to do under or in connection with this Policy. You have made to our Agent or there has been made to our Agent on your behalf a proposal which is incorporated into and forms part of this Policy. By this Policy we insure you in respect of helicopter(s) and certain risks involved in operating helicopter(s). Any claim made under this Policy or any proceedings commenced in relation to this Policy must be made to or commenced against our Agent. Our Agent has the power to make, in its own name, any demand or commence or defend any legal action arising out of or incidental to this Policy so that the demand or action shall be as good and effective as if made or commenced by or against each of us. Should any amount of money become payable to you under this Policy each of us has agreed to pay to you, your executors, administrators or assigns the portion of that amount calculated by reference to the percentage appearing beside each of our names in the Coverage Schedule and no more. None of us nor our Agent shall have to pay to you, your executors, administrators or assigns any moneys owing or owed by another of us whether the moneys are owed under this Policy or not. 2. WHAT YOU GET UNDER THIS POLICY If you pay the agreed premium and observe the Essential Terms set out in Section 5 we agree to provide you with the insurance cover described in this Policy for the Policy period of cover and any other period for which this Policy is renewed. However, the total amount of our combined liability under this Policy is limited to the relevant amount or amounts stated in the Coverage Schedule under the headings "Limit of our Liability" less any deductable payable to you. Furthermore and importantly, except as provided in Essential Term No. 1, under no circumstances will we pay any moneys under this Policy where your liability or the loss of or damage to the helicopter arose or occurred in any of the circumstances described in Section 4. Section 2: DEFINITIONS In this Policy: WE, OUR, US "We", or "Our" or "Us" refers to the insurance companies named on the first page of the Coverage Schedule. YOU, YOUR "You" or "Your" refers to the Assured(s) named in the Coverage Schedule. OUR AGENT "Our Agent" refers to Australian Aviation Underwriting Pool Proprietary Limited. COVERAGE SCHEDULE "Coverage Schedule" means the Schedule to this Policy which sets out details relevant to your insurance cover including the limits of our liability in respect of the risks for which this Policy covers you. Please read it. HELICOPTER "Helicopter" means the helicopter(s) identified in the Coverage Schedule and includes its engine(s), instruments and equipment (including radio and navigation equipment listed in the Aircraft or Radio Log Book) and any additional instruments and equipment specifically referred to in the proposal and in respect of which we have agreed to provide cover. IN MOTION "In motion" means all periods during which the helicopter is airborne, its rotors are turning and/or its engines are being started or are running. NOT IN MOTION "Not in motion" means all periods other than those during which the helicopter is in motion. SALVAGE SERVICES "Salvage Services" means any service which would have been a salvage service whether maritime or under contract had it been rendered by or in relation to a vessel and which was rendered by or in relation to the helicopter in or over the sea or any tidal water or on or over the shores of the sea or any tidal water. OPERATIONAL LEGISLATION "Operational Legislation" means all provisions in force from time to time of the Air Navigation Act, Civil Aviation Act, Air Navigation Regulations, Civil Aviation Regulations, Air Navigation Orders, Civil Aviation Orders and orders, requirements, notices, directions, circulars and approvals issued by the Civil Aviation Authority, the Department of Transport and Communications or by any other competent authority. SERVICEABLE PERIOD "Serviceable Period" means the amount of use or time after which, according to any system of maintenance, a unit of the helicopter should be overhauled or replaced. SYSTEM OF MAINTENANCE "System of Maintenance" means a system of maintenance or schedule of maintenance approved and/or published from time to time pursuant to operational legislation or, where no such system of maintenance or schedule of maintenance has been so approved and/or published, any maintenance system appearing in the helicopter's flight manual or in the relevant manufacturer's manual. OVERHAUL COST "Overhaul Cost" means those costs which are or would be incurred in overhauling or replacing (whichever is necessary) any unit which has completed its serviceable period. UNIT "Unit" means a part or assembly of parts (including any sub-assemblies) which has been assigned a serviceable period as a part or an assembly. An engine for propulsion or auxiliary power, complete with all items from the helicopter necessary for test cell running, shall constitute a single unit. PASSENGER "Passenger" means a person who is on board the helicopter (including a person in the process of embarking or disembarking) for the purpose of carriage but does not include a pilot in command. AUSTRALIA "Australia" means the Commonwealth of Australia but NOT including Australian Antarctic Territory, Macquarie Island, Territory of Heard Island and McDonald Islands or territorial waters adjacent thereto. POLICY PERIOD OF COVER "Policy period of cover" means the period so identified on the Coverage Schedule or such lesser period of cover which is stated in the Coverage Schedule, or any endorsement, in respect of any particular helicopter and/or risk. Section 3A: YOUR HELICOPTER COVER 1. We will, at our option, pay for, replace or have repaired any accidental loss of or damage (including malicious damage not caused by you or with your consent) to the helicopter or any of its unit(s) or component part(s) which are temporarily detached from the helicopter for or in connection with overhaul or repair or for safekeeping (unless the helicopter has been fitted with other similar unit(s) or component part(s)in which case the fitted unit(s) or component part(s) and not those detached are insured) which occurs during the Policy period of cover whilst the helicopter is In Motion or Not in motion if such cover is shown under the subheading "Section 3A cover" in the Coverage Schedule. 2. Your cover under paragraph 1 includes cover for damage to a turbine engine caused by sudden ingestion of foreign object(s) which requires immediate withdrawal of the engine from service. Ingestion damage cover is subject to the ingestion deductible stated in the Coverage Schedule. 3. In the event of a forced landing of the helicopter (if insured in motion) howsoever caused we will pay the reasonable costs of moving the helicopter to a place of safety even though no impact damage resulted from the forced landing. 4. We will pay, in addition to any other payment we may make under this Section, the reasonable costs of action you take in accordance with Essential Term No. 6 up to 10 percent of the sum for which the helicopter is insured. 5. Subject to paragraph 14 the basis of settlement of any claim made under this Section where there is a total loss (which includes a constructive or arranged total loss) of the helicopter shall be the relevant limit of our liability as stated in the Coverage Schedule. 6. In the event we exercise our option to replace the helicopter, the replacement shall be of the same make and type and in reasonably like condition unless you and we agree otherwise. 7. It shall be your obligation to pay in respect of each helicopter and each claim: (a) your deductible as stated in the Coverage Schedule; and (b) that portion of the overhaul cost of any unit(s) or component part(s) repaired or replaced as the used time bears to the serviceable period. 8. Should more than one deductible be payable under this Section as a result of one occurrence only one such deductible shall be paid. That one deductible shall be the highest deductible stated in the Coverage Schedule applicable to the occurrence. 9. We will not pay for loss of or damage to any unit(s) or component part(s) of the helicopter directly caused by the actual work of maintenance or repair. 10. We will not pay for wear and tear, gradual deterioration, structural defects OR electrical, hydraulic or mechanical failures. However, this exception is limited to any loss of or damage to the unit(s) immediately affected by such causes. We will pay for accidental loss of or damage to other unit(s) due to such causes. 11. We will not pay for any general average contribution, sue and labour charges or salvage services rendered to the helicopter. 12. If the helicopter is damaged, the relevant limit of our liability as stated in the Coverage Schedule shall be reduced by the amount of the damage and the reduced limit shall continue until repairs are commenced. Once repairs are commenced and if you pay any extra premium we may require, the limit of our liability shall increase by the amount of the repairs completed at any given time until the limit of our liability in respect of the helicopter is fully reinstated to that set forth in the Coverage Schedule or until cover under this Policy ceases. 13. We will only pay for repairs and transport of labour and materials by the most economical method unless you and we agree otherwise. 14. You do not have any right to abandon the helicopter to us or our Agent. However, if as a result of a claim made by you we either pay to you the full amount of the relevant limit of our liability as stated in the Coverage Schedule or replace the helicopter, we may require you to transfer all your rights, title and interest in the helicopter to our Agent and we shall be entitled to the proceeds of the sale of the helicopter. 15. Should the helicopter be missing without trace for a period of thirty (30) consecutive days the helicopter shall be deemed to be a total loss for the purposes of this Section. Section 3B: YOUR LIABILITY TO OTHER PERSONS COVER 1. We will pay, up to the relevant limit of our liability stated in the Coverage Schedule, such sums which you, or a pilot authorised by you who is within the class of pilots described in the Coverage Schedule, or any employer of such a pilot who may be held legally liable for the pilot's acts or omissions, are legally liable to pay as compensation (excluding interest and legal costs awarded and punitive or exemplary damages) for accidental bodily injury (including death) of other persons or accidental damage to the property of other persons which occurs during the Policy period of cover and is caused directly by the helicopter or by any person or object falling from the helicopter. 2. If we make a payment under paragraph 1 of this Section, we will also pay the amount of any interest and legal costs which are awarded. However, if the amount of the judgement on, or settlement of, any claim exceeds the limit of our liability under this Section, we will only pay that part of the interest and legal costs awarded which the limit of our liability under this Section bears to the amount of the judgement or settlement. When calculating the amount of the judgment or settlement, interest and legal costs awarded and punitive or exemplary damages will be excluded. 3. In addition we will pay for any legal costs incurred with our written consent in defending any claim made in respect of an occurrence which is covered under this Section. However, if any person indemnified under this Section is liable to pay compensation under any judgment or settlement and that payment exceeds the relevant limit of our liability, we are only liable to pay that part of the legal costs as the limit of our liability under this Section bears to the compensation payable (excluding interest and legal costs awarded or agreed and punitive or exemplary damages) and we have the right to recover from that person as a debt due and payable any part of such costs we have paid in excess of our liability. 4. If at the time of any occurrence giving rise to a claim under this Section the number of passengers in the helicopter exceeds the Declared Passenger Seating Capacity of the helicopter as stated in the Coverage Schedule and a limit of our liability for any one passenger appears in the Schedule, the maximum amount we have to pay in respect of each passenger shall not exceed the amount obtained by dividing the limit of our liability for all passengers in respect of any one occurrence as stated in the Coverage Schedule by the number of passengers in the helicopter at the time of the occurrence. 5. We will not pay under this Section in respect of any claim: (a) under workers' compensation, employees' compensation, accident compensation or equivalent legislation other than a subrogation claim brought by an insurer to recover sums paid pursuant to such legislation; (b) arising out of the death or injury of any person in the course of or in connection with his or her employment by the party claiming indemnity under this Section. (c) arising our of the loss of or damage to property or injury to animals belonging to any person insured under this Section or in their custody or control other than passengers' baggage or freight if insured by this Policy; (d) arising out of any liability owed by you or a pilot under instruction to a pilot in command unless limit of such liability is stated in the Coverage Schedule and the pilot to whom the liability is owed is within the class of pilots described in the Coverage Schedule. (e) arising out of death or injury or damage to property caused directly by the descent, impact or landing of any parachutist who has intentionally exited the helicopter (not being a passenger or pilot in command escaping from the helicopter in an emergency). 6. CIVIL AVIATION (CARRIERS' LIABILITY) ACTS You are not covered under this Section for any liability you owe to passengers under Part IV of the (Commonwealth) Civil Aviation (Carriers' Liability) Act 1959 or the corresponding Act of any Australian State or Territory in force from time to time unless such cover is endorsed on this Policy. Section 4: WHAT WE DO NOT COVER 1. You are not covered if at the time of an occurrence giving rise to the claim: A The helicopter is being used with your knowledge and/or consent for any illegal purpose or for any use other than those stated in the Coverage Schedule or the helicopter is outside the geographical limits stated in that Schedule unless - (a) you or a pilot authorised by you who is within the class of pilots described in the Coverage Schedule were compelled by a disaster or the happening of some event beyond your or such pilot's control to use the helicopter for such a purpose or outside those geographical limits; or (b) the helicopter is rendering salvage services and we are given notice of this as soon as possible and you agree to pay an additional premium we require. B. The helicopter is being piloted with your knowledge and/or consent by any person other than those named or otherwise described in the Coverage Schedule as pilots. C. The helicopter or any of its units or component parts are being transported with your knowledge and/or consent by any means except as a result of an accident giving rise to a claim under Section 3A. D. The helicopter is, with your knowledge and/or consent, left unattended in the open without reasonable precautions having been taken for its safety. E. The helicopter is, with your knowledge and/or consent being used for: (a) pylon racing; (b) record attempts ; (c) aerial seeding or fertilization, dusting, spraying or baiting; (d) mustering, fish spotting, feral animal control; (e) low flying other than for the purposes of operations: (i) permitted under operational legislation; and (ii) included in the uses specified in the Coverage Schedule; and (iii) conducted by pilots specified in the Coverage Schedule who also hold appropriate approvals under operational legislation for such operations; (f) any form of flying involving abnormal hazards (other than (a)-(d) above); (g) experimenting with or testing new parts (other than replaced similar parts), new devices or new designs; and the occurrence is caused or contributed to by any of these activities. F. The pilot is not licensed or authorised under operational legislation to conduct the operation. 2. This Policy does not extend to provide cover in respect of an interest in the helicopter which is not your interest. 3. CONTRACTUAL LIABILITY You are not covered for any liability you have assumed under any agreement other than a contract of carriage of passengers or goods except to the extent that you would have been liable if the agreement had not been entered into. 4. OTHER POLICIES You are not covered under this Policy in respect of any claim to the extent that the risk is or should be insured by or would but for the existence of this Policy be insured by your employer's liability policy or an equivalent policy required by or deemed to be in force by any workers' compensation, employees' compensation, accident compensation or equivalent legislation. If at the time of an occurrence giving rise to a claim under this Policy the risk is insured by or would but for the existence of this Policy be insured by any other aviation hull and/or liability policy or policies you are not covered except to the extent that the amount of 00any such claim exceeds the amount payable under such other policy or policies. However, we will not pay any amount in excess of the relevant limit of our liability under this Policy. 5. RADIOACTIVE CONTAMINATION You are not covered for loss, damage or liability directly or indirectly caused by or contributed to by or arising from ionizing radiations or contamination by radioactivity. 6. WAR, HIJACKING AND OTHER POLITICAL PERILS You are not covered in respect of claims directly or indirectly caused by or arising out of: (a) War, invasion acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection, martial law, military or usurped power or attempts at usurpation of power; (b) Any hostile detonation of any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter; (c) Strikes, riots, civil commotions or labour disturbances; (d) Any act of one or more persons, whether or not agents of a sovereign power, for political or terrorist purposes and whether the loss or damage resulting therefrom is accidental or intentional; (e) Any malicious act or act of sabotage; (f) Confiscation, nationalisation, seizure, restraint, detention, appropriation, requisition for title or use by or under the order of any government (whether civil, military or de facto) or public or local authority; (g) Hijacking or any unlawful seizure or wrongful exercise of control of the helicopter or crew in flight (including any attempt at such seizure or control) made by any person or persons on board the helicopter acting without the consent of the Assured. Furthermore this Policy does not cover claims arising whilst the helicopter is outside your control by reason of any of the above perils. The helicopter shall be deemed to have been restored to your control on the safe return of the helicopter to you at an airfield not excluded by the geographical limits of this Policy, and entirely suitable for the operation of the helicopter. Such safe return shall require that the helicopter be parked with engines shut down and under no duress. 7. NOISE AND POLLUTION AND OTHER PERILS A. You are not covered for claims directly or indirectly occasioned by, happening through or in consequence of: (i) noise (whether audible to the human ear or not), vibration, sonic boom and any phenomena associated with them; (ii) pollution and contamination of any kind whatsoever; (iii) electrical and electromagnetic interference; (iv) interference with the use of property; unless caused by a crash explosion or collision or recorded inflight emergency causing abnormal helicopter operation. B. With respect to any provision in this Policy concerning our duty (if any) to investigate or defend claims, such provision shall not apply and we shall not be required to defend: (i) claims excluded by Clause A, or (ii) a claim or claims covered by this Policy when combined with any claims excluded by Clause A (referred to below as "Combined Claims"). C. In respect of any Combined Claims, we shall (subject to proof of loss and the limits of this Policy) reimburse you for that portion of the following items which may be allocated to the claim or claims covered by this Policy: (i) damages awarded against you, and (ii) defence fees and expenses incurred by you. D. Nothing in this part shall override any radioactive contamination or other exclusion clause attached to or forming part of this Policy. SECTION 5: ESSENTIAL TERMS 1. We are not liable to make any payment to or on behalf of you unless you observe and fulfil all the Essential Terms of this Policy and any other obligations imposed on you by this Policy (including any endorsement). Nor are we liable to make any payment to or on behalf of any other person otherwise entitled to indemnity under Section 3B of this Policy unless that person observes and fulfils all such Essential Terms and obligations. However, we shall not decline to make payment in respect of any claim made under Section 3B of this Policy in relation to the death, injury or damage to the property of other persons who at the time of the accident were not passengers, merely because: (a) you and/or any other person otherwise entitled to indemnity under this Policy failed to observe the Essential Terms or failed to fulfil any of the obligations imposed by this Policy, and/or (b) the operation of paragraph 1 of Section 4 of this Policy excludes our liability. If we do many any such payment we have the right subject to law to recover from the persons against whom the claim is made (or the executors, administrators or assigns of those persons), as a debt due and payable, the total amount we have paid. However, we will only exercise this right where the occurrence giving rise to the claim was caused or materially contributed to by the failure to observe Essential Term No. 3 or by participation in any of the conduct referred to in paragraph 1 of Section 4 of this Policy. This right is in addition to the right we have under Essential Term No. 10 by way of subrogation. 2. The exclusions set out in this Policy apply equally to any other person otherwise entitled too indemnity under this Policy as if that person were you. 3. You shall comply with all operational legislation and shall take all reasonable steps to ensure that all operational legislation is complied with by any pilot of the helicopter, your agent(s) and employee(s) and that the helicopter is airworthy at the commencement of each flight. 4. All Log Books and operational or other records in connection with the helicopter shall be produced on request to our Agent or any assessor appointed by our Agent. 5. You shall use due care and do everything reasonably practicable to avoid or lessen any loss covered by this Policy. Without our written consent you are not to: (i) admit any liability or fault; (ii) pay or offer or promise to pay any moneys; in respect of any claim or occurrence covered by this Policy. 6. In the event of the helicopter sustaining damage which may be covered by Section 3A of this Policy you shall immediately take any action that may be necessary to ensure the safety of the damaged helicopter and its equipment and accessories. No dismantling or repairs shall be commenced without our consent except such as may be necessary in the interests of safety or to prevent further damage. 7. We shall be entitled at any time and for so long as we desire to take absolute control of all negotiations and proceedings and in your name to settle or defend or pursue any claim. We may at any time upon giving written notice to you abandon the pursuit or the defence of any claim which we have undertaken but, if we do, we shall (except where you have or your representative has been dishonest or withheld relevant information) pay our share of any costs incurred in connection with such pursuit or defence up to the date we gave you notice. 8. You must immediately give to our Agent a full and truthful written description of any event likely to result in a claim being made under this Policy. You must also immediately give to our Agent any letter, writ, summons or statement of claim you receive relating to any claim under or occurrence covered by this Policy. 9. You shall not do anything to harm our interests and shall assist us and our Agent in any way we or our Agent reasonably require. If required by us or our Agent, you shall attend inquests hearings and trials and shall assist in reaching settlements, in obtaining and giving evidence, in securing the attendance of witnesses and in the conduct of litigation. 10. We have the right to recover any payment made by us from any person you may be able to hold liable or responsible and we shall have full discretion in the conduct, defence or settlement of any claim in the conduct, defence or settlement of any claim and to take any action in your name. You and any other person entitled to claim under this Policy will not hinder these rights and will give us and our Agent all information, assistance and co-operation we or our Agent may require. 11. Should we make any payment to or on behalf of any of you under Section 3A in circumstances where we are not liable to pay another or others of you because the other or others are in breach of Essential Term No. 3 or because any of the Exclusions in paragraph 1 of Section 4 apply, we have the right to recover as a debt due and payable from the other or others or their executors, administrators or assigns the total amount we have paid in such circumstances. 12. You must be honest in all your dealings with us, our Agent and any assessor appointed by our Agent. If you or any person acting on your behalf is not honest in making a claim, whether as regards amounts or otherwise, we are not liable in respect of that claim or in respect of the occurrence giving rise to that claim. 13. If there is any change in the circumstances, magnitude or nature of any of the risks covered by this Policy after this Policy is in force you must give our Agent immediate notice of the change. We are not liable for any claim arising after such a change unless our Agent has been notified of the change and we have accepted it. 14. This Policy shall not be transferred or assigned either in whole or in part without our written consent to the transfer or assignment appearing on this Policy. 15. You and we agree that this Policy shall not be construed as a policy of marine insurance. 16. We may cancel this Policy on any of the grounds set out in section 60 of the Insurance Contracts Act 1984 by giving notice in writing of the proposed cancellation to you either personally or by post to your last address known to us. Such notice shall have effect to cancel this Policy at 4.00 p.m. on the third business day after the day on which the notice was given to you or at any later time specified in the notice. If we cancel this Policy, we will return in respect of the unexpired period of cover a pro rata portion of the premium. In the event of cancellation by you, the premium shall be adjusted on the basis of our receiving or retaining the customary short term premium charged by our Agent, details of which will be provided upon request. You are not entitled to a return of premium if any monies have been paid or are payable by us under this Policy. 17. Your cover under this Policy remains in force whilst the helicopter is being used: (a) by the Civil Aviation Authority in connection with the normal activities of the Authority and whilst being operated by designated Authority personnel subject to our approval being gained for such use for a period intended to be in excess of seven (7) days; (b) with your approval for type endorsement of any pilot, subject always to such pilot satisfying any minimum flight experience requirements set out in the Coverage Schedule; (c) for emergency medical or mercy flight(s) in respect of an injured or incapacitated person; (d) in connection with search and rescue services provided pursuant to operational legislation. 18. In the event of an award being made both against you (or your Estate) and against any other person(s) covered under this Policy (or their Estate or Estates) you shall to the extent of your liability be entitled to priority in respect of any moneys payable by us. 19. The inclusion of more than one of you as being covered under this Policy shall not in any way affect the rights of any of you, it being the intent of this Policy to protect you in the same manner as though each of you had been issued with a separate policy. However, irrespective of there being more than one of you covered under this Policy, whether by endorsement or otherwise, our total liability under this Policy shall not exceed the relevant limit(s) of our liability stated in the Coverage Schedule. 20. This Policy shall be construed according to the laws in force from time to time of the State or Territory of Australia stated in the Coverage Schedule.