3.1 Subject to paragraph 3.2, Project Co may include the premiums paid by Project Co to take out and maintain the Operational Insurances in accordance with Clause 53 in the Monthly Service Payment in accordance with paragraph 1 (Monthly Service Payment) of Section 2 (Calculation of Service Payments) of this Schedule Part 14 (Payment Mechanism) on the basis of the cost incurred by Project Co and supported by an appropriate premium notices from the relevant insurer.
3.2 There shall be excluded from the premiums referred to in paragraph 3.1, a sum equal to any portion of the premiums attributable to any issue or factor other than circumstances generally prevailing in the relevant insurance market and circumstances attributable to malicious damage to the Facilities or the claims history or re-rating of the Authority or any Authority Party.