Insurance liability

During the insurance period, if the direct material damage or loss of the subject-matter insured (hereinafter referred to as "loss") is caused by natural disasters or accidents, the insurer shall be liable for compensation in accordance with the provisions of this insurance contract.
In the event of an insured accident caused by the reasons mentioned in the preceding paragraph, the insurer shall also be liable for the loss of the insured object caused by taking necessary and reasonable measures to rescue the insured object or prevent the spread of the disaster in accordance with the provisions of this insurance contract.
After the occurrence of an insured accident, the insurer shall also be liable for the necessary and reasonable expenses paid by the insured to prevent or reduce the loss of the subject-matter insured in accordance with the provisions of this insurance contract.

Exemption from liability

The insurer shall not be liable for the losses and expenses caused by the following reasons:
（1） Intentional or gross negligence of the applicant, the insured and their representatives;
（2） Administrative or judicial acts;
（3） War, similar acts of war, hostilities, military action, armed conflict, strike, riot, insurrection, coup, rebellion and terrorist activities;
（4） Earthquake, tsunami and their secondary disasters;
（5） Nuclear radiation, nuclear fission, nuclear fusion, nuclear pollution and other radioactive pollution;
（6） Air pollution, land pollution, water pollution and other non radioactive pollution, except for non radioactive pollution caused by insurance accidents;
（7） Inherent or potential defects, natural wear and tear, natural loss of the subject-matter insured, atmospheric (climate or temperature) change, normal water level change or other gradual change reasons, material change, mildew, dampness, rat bite, insect moth, bird peck, oxidation, corrosion, leakage and baking;
（8） Theft and robbery.
The insurer shall not be liable for the following losses and expenses
（1） The subject-matter insured suffers various indirect losses caused by the insured accident;
（2） Loss of the subject-matter insured due to wrong design, defect of raw materials or poor workmanship;
（3） Losses caused by lightning, rainstorm, flood, storm, tornado, hail, typhoon, hurricane, Blizzard, ice cream, sandstorm and other external ancillary facilities of buildings such as billboards, antennas, neon lights, solar devices, insurance objects stored in open air or simple buildings, and simple buildings;
（4） Boiler and pressure vessel explosion causes its own loss;
（5） Loss of mechanical or electrical equipment not caused by external force;
（6） The loss of operated machinery or electrical equipment caused by improper operation and technical defects of the insured and his employees;
（7） Shortage found during inventory;
（8） Losses and expenses caused by interruption of public power supply, water supply, gas supply and other energy supply for any reason;
（9） The deductible specified in this insurance contract or calculated according to the deductible ratio specified in this insurance contract.