Appendix 4

PROJECT INSURANCE

1. The following insurances have been procured and maintained for the Project:

a) Contractor All Risk (CAR);

b) Third Party Liability (TPL) – With Indemnity Limit of RM25 million any one
accident/event, unlimited during the period of insurance; and

c) Workmen’s Compensation (WC),

(hereinafter collectively referred to as the “Project Insurance”).

The policies of the Project Insurances are as attached herein.

2. All deductibles referred to in the insurances policies above shall be for the account of and
be paid by the Subcontractor regardless of cause of such loss or damage or liability. Any
losses as a result of any breach of conditions and/or warranties applicable to the Project
Insurances shall also be for the account of the Subcontractor. The Subcontractor shall be
responsible for the deductible amount if the claim made on the Project Insurances in
respect of the Works that was caused or contributed, whether directly or indirectly, by the
Subcontractor and/or the Subcontractor’s servants, agents and/or independent
subcontractors.

3. In so far as the Subcontractor dissatisfied with the terms and conditions of the Project
Insurances, the Subcontractor may effect at its own cost such additional insurance as it
may consider necessary.

4. The Subcontractor will comply and ensure that their subcontractors comply with the terms
and conditions of the Project Insurances and the procedures for claims notification and
administration thereunder and shall do nothing nor omit to do anything which might render
the Project Insurances voidable or cause the premiums for the Project Insurances to be
increased.

5. The Subcontractor shall ensure that all the foregoing insurances procured shall be
endorsed (to the extent permitted by law) to note the interest of the Main Contractor, China
Communications Construction Company Ltd. and/or China Communications Construction
(M) Sdn. Bhd. (hereinafter referred to as the “EPCC Contractor”) and Malaysia Rail Link
Sdn. Bhd. (hereinafter referred to as the “Employer”), and to indemnify the Main
Contractor, EPCC Contractor and the Employer and the Main Contractor’s, EPCC
Contractor’s and Employer’s Representatives, delegates or assistants and their respective
employees and others acting on or their behalf fully without any right of subrogation
against them, in respect of claims that may be made against them arising out of or in the
course of the design and execution of the Works or their duties in connection therewith or
incidental thereto. Any deficiencies in the coverage or policy limits of the Subcontractor’s
insurances shall be the sole responsibility of the Subcontractor.

6. All monies received from insurers pursuant to any claim shall be paid to the Subcontractor
by instalments on the Interim Payment Certificates. The Subcontractor shall apply such
monies to make good the loss or damage suffered or reimburse the person who has made
good or pay any person make good the loss or damage.

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7. Notwithstanding that employees of the Subcontractor shall be covered by the Workmen’s
Compensation insurance effected by the EPCC Contractor and/or Employer, the
Subcontractor shall register their respective employees and contribute under the Social
Security Scheme (SOCSO) (if so applicable) and comply with the provisions of the
Employee’s Social Security Act, 1969.

8. The Subcontractor shall not violate or knowingly permit any violation of any conditions or
terms of the policies of insurance described herein.

9. The Subcontractor shall furnish to the Main Contractor and the Employer such information
with respect to any insurances taken out by the Subcontractor pursuant to the Subcontract
(or as to any matter which may be relevant to such insurances) as the Main Contractor
and the Employer may from time to time reasonably request including, without limitation, a
copy of and access to the original of any policy effected pursuant to the Subcontract.

10. In the event of any claims that may arise pursuant to any policy procured either by
Employer, EPCC Contractor, Main Contractor or Subcontractor, the Subcontractor shall
provide relevant assistant at its own cost to pursue such claim under the policy provided
the claim arose out of the performance of the Works.

11. The coverage referred to above shall be set forth in full in the respective policy forms, and
the foregoing descriptions of such policies are not intended to be complete, nor to alter or
amend any provision of the actual policies. Neither the provision by the Employer, the
EPCC Contractor, Main Contractor or Subcontractor nor the content of any insurance
policy or certificate, nor the Main Contractor’s, EPCC Contractor’s and Employer’s
approval thereof, shall limit or relieve the Subcontractor of any of its obligations under the
Subcontract.

ATTACHMENTS:

i. Contractor’s All Risk Policy and its Endorsement copy

ii. Workmen’s Compensation Policy and its Endorsement Copy

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