3.  INSURANCE

3.1.  The Sub-Contractor hereby covenants with the Beneficiary that it has effected a policy of [                  ] insurance covering the liabilities of the Sub-Contractor under the Sub-Contract and under this Deed for negligence, with a limit of indemnity of not less than £[  ] ([   ] million pounds) and an excess of not more than £[         ] ([     ] million pounds) for any occurrence or series of occurrences arising out of any each and every event and that it will maintain such insurance with reputable insurers carrying on business in the European Union from the date hereof until 12 years after expiry or termination of the Sub-Contract provided that such insurance is generally available in the market at commercially reasonable rates and (for the avoidance of doubt) provided further that payment of any increased or additional premiums required by insurers by reason of the Sub-Contractor's own claims record or other acts omissions matters or things peculiar to the Sub-Contractor will be deemed to be within the reasonable rates.

3.2.  The Sub-Contractor shall immediately inform the Beneficiary if for any period such insurance is not or ceases to be available on commercially reasonable terms and shall obtain in respect of such period such reduced level of insurance as is available and would be fair and reasonable in the circumstances for the Sub-Contractor to obtain.

3.3.  As and when reasonably required by the Beneficiary the Sub-Contractor will produce for inspection documentary evidence that the insurance referred to in clause 3.1 and 3.2 is being properly maintained and that payment has been made in respect of the last preceding premium due thereunder.