22.1.7  Government as insured under private party insurance

Government shall be an insured party under the policies procured by the private party save in respect of those policies under which typically only the private party or its relevant sub-contractors can be insured, such as professional indemnity insurance. The extent of government's rights and interests in respect of specific insurance policies, such as public and products liability insurance and workers' compensation insurance, will be detailed in the project agreement. The actual terms in which government's interest is set out in the policies are very important, as the words used will define the extent to which cover is extended and thus the circumstances under which government can claim on the insurance.70

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70 It is only stipulation on the policy that enables this. No form of words in the project agreement will create such a right for government.