Provisions of the risk programme (agreement)

I. TERMS
1. The Lessor – SIA “ĀTRAIS TORŅU SERVISS”, Reg. No. 40003726915, legal and actual address: Kārļa Ulmaņa gatve 1, Riga, LV-1004.
2. Lessee – a natural or legal person who has entered into a Rental Cooperation Agreement with the Lessor and on the basis of which the Equipment owned by the Lessor is transferred to the Lessee for a fee, in accordance with the terms of the Rental Cooperation Agreement.
3. Delivery/acceptance act – concluded between the Lessor and the Lessee on the transfer of equipment for lease or acceptance of the equipment back from the Lessee, in which are indicated the equipment listing, value and rental fee.
4. Service – a risk protection service in respect of damage to equipment which, for an additional fee alongside the Rental Cooperation Agreement between the Lessor and the Lessee, ensures the reduction of material liability in respect of damage to or total loss of the rented (leased) equipment during the rental period.
5. Agreement – an annex to the Rental Cooperation Agreement, the section of the Rental Cooperation Agreement on the protection of the risk of damage the Equipment, concluded on the basis of these Terms and Conditions and the acceptance transfer acts.
6. Parties – the Lessor and the Lessee.
7. Party – the Lessor or the Lessee individually.
8. Coverage of the Territory – Republic of Latvia.
II. GENERAL PROVISIONS
9. The Parties note that:
9.1. The Lessee is obligated to maintain the rented inventory in good condition during the rental period, to return the Equipment in no worse condition than it was at the beginning of the lease term, taking into account normal wear and tear, and to compensate for any damages;
9.2. The rental cooperation agreement specifies that the Lessee is in all cases responsible for the loss, destruction, or damage of the Equipment, as well as the obligation to compensate the Lessor for the value of the damaged or worn-out inventory or any specific part of it;
9.3. The Equipment is and remains responsible for the Equipment but wishes to reduce the risk of loss for the compensation amount in the event of the destruction, damage, or loss of the inventory or part of it;
9.4. he agreement on the risk program is valid if a clause regarding the risk program is included in the Equipment acceptance act and the Lessee has complied with the terms of the rental cooperation agreement, and the Lessee has paid the invoices prepared by the Lessor within the time specified in the rental cooperation agreement;
9.5. In any case, the Lessor reduces the Lessee financial liability for damages or total loss of the leased Equipment during the lease term by no more than 90%, and the Lessee liability in any circumstances remains at 10% (Lessee deductible) of the total loss amount, which is calculated by the Lessor. The Lessee pays the loss compensation of 10% (Lessee deductible) according to the invoices prepared by the Lessor, in accordance with the terms of the rental cooperation agreement;
9.6. The risk program is applicable only when the loss to the Lessee is not compensated based on the Lessee insurance agreement and in cases where an insurance agreement has not been concluded.
III. RULES OF RISK PROGRAMME
10. The risk program regarding the Parties is valid in the Republic of Latvia, unless the Parties have agreed otherwise in writing.
11. The risk program applies to the Equipment specified in the acceptance transfer act, which has been transferred to the Lessee use (possession).
12. The risk program is effective from the moment the Lessor has handed over, and the Lessee has accepted the i Equipment with the acceptance transfer act, until the moment the Equipment has been returned to the Lessor and a return acceptance transfer act has been prepared.
13. The risk program partially exempts the Lessee from contractual liability to the Lessor arising from the terms and conditions of the rental cooperation agreement between the Parties. Under this risk program, the Lessee has a minimum deductible amount of EUR 300.00 (three hundred euros).
14. The coverage of the risk program relates to the costs of repairing the inventory, but in certain cases to the total value of the inventory in the event of destruction.
15. Under the risk program, the Lessor commits to release or reduce the Equipment financial liability to the Lessor, which is caused by sudden and unforeseen damage or loss of the Equipment, except for the exceptions specified in these provisions.
16. Exceptions to the application of the risk program concerning the Equipment financial liability:
16.1. as a result of terrorism (terrorism – acts of terrorism or the result thereof, regardless of any other cause, which by chance or otherwise have contributed to the loss, damage or expense. In the context of this Condition, terrorism means violence or dangerous activity which endangers human life, tangible or intangible property or infrastructure, with the intent to influence any government or to keep the public or any section thereof in fear);
16.2. in the event of war, military invasion, civil war, insurrection, revolution, rebellion, military or other usurpation of power;
16.3. strike, riot, resistance movement, imposition of curfew or siege or other incidents and events followed by siege or imposition of curfew;
16.4. as a result of confiscation, compulsory acquisition, requisition, nationalisation and/or other compulsory orders by the government and/or local authority;
16.5. due to the use of inadequate and/or substandard materials or components;
16.6. malicious intent, unlawful act or gross negligence of the Lessee’s employees using the inventory;
16.7. breach of applicable laws, regulations, building codes, technical operation and/or fire safety rules;
16.8. due to blasting;
16.9. due to testing, overloading, experimentation or use of the equipment for any purpose or work other than that for which the equipment is intended;
16.10. if the equipment is used while under the influence of alcohol, drugs or other toxic/psychotropic substances, this shall also apply to cases where the driver of the equipment has evaded or refused to be tested for the influence of alcohol, drugs, psychotropic or other intoxicating substances, or has used such substances after a traffic accident until such testing has been carried out;
16.11. for the same cause which has previously caused a loss which has been indemnified under the risk programme if, after the occurrence of the first event of loss, the Hirer has received specific and reasonable recommendations from the Lessor to remedy the cause of the loss, but the Hirer has not taken appropriate action to remedy the existing defect;
16.12. if the defect or other hazard giving rise to the consequential loss was known or should have been known to the Hirer before the risk programme came into force or within a reasonable time (to enable the hazard to be remedied) before the occurrence of the event of loss;
16.13. due to electromagnetic fields and/or electromagnetic radiation (including radiation);
16.14. as a result of exposure to ionising radiation or radioactive contamination, nuclear fuel, nuclear waste, nuclear weapons, nuclear materials;
16.15. by fraud, misappropriation or extortion;
16.16. equipment on or working in close proximity to water on ships, platforms, pontoons, barges and ferries;
16.17. equipment which is used without the right to operate/use the equipment or the necessary qualifications, if such qualifications or rights to operate/use the equipment are required by law or regulation;
16.18. equipment which has been sublet;
16.19. consequential damages of any kind (including but not limited to: penalties, fines, lost profits and/or demurrage);
16.20. loss or damage resulting from any criminal offence other than theft, robbery or vandalism within the meaning of the terms of this Risk Programme;
16.21. loss or damage resulting from theft, robbery or vandalism where the Equipment is left unlocked outside working hours, security systems are not activated or are not properly supervised;
16.22. the Lessee has failed to pay the Lessor’s invoices in accordance with the procedure set out in the Rental Cooperation Agreement;
16.23. the Lessee has failed to report the fact of damage within 24 hours after the event or becoming aware of such event;
16.24. false information has been given about the circumstances of the loss or the amount thereof;
16.25. the cause of the damage is inappropriate and incorrectly chosen working methods, or failure to comply with the installation and operating instructions, laws and regulations, the Rental Cooperation Agreement and the documents arising therefrom;
16.26. damage to regularly replaceable parts (e.g. drills, knives, tyres, saws or other cutting blades, ropes, tapes, chain accumulators, connecting wires and cables, flexible pipes and similar parts, if this is the only damage to the Equipment;
16.27. losses resulting from minor external defects in the inventory such as scratches or graffiti or the cleaning of stickers;
16.28. damage caused by, or cleaning costs incurred as a result of, sandblasting, painting, plastering or other similar work causing significant soiling of the Equipment, including staining of concrete or asphalt;
16.29. it is not possible to ascertain the extent of the damage or the circumstances under which it occurred.
17. The Lessee undertakes to notify the Lessor in case of loss of Equipment without undue delay, but not later than within 24 hours after the occurrence of the event or becoming aware of such event, by taking the following mandatory actions:
17.1. implement measures to prevent the loss from increasing;
17.2. report to the police, fire and rescue service, State Labour Inspectorate or other authority (State Environmental Service, etc.) carrying out the relevant rescue work or investigating the circumstances of the accident, in accordance with the procedure laid down by the laws and regulations, taking into account the nature of the accident;
17.3. record the circumstances of the loss, such as the national registration number of the vehicle of the other party to the accident, the details of witnesses, the circumstances of the place where the loss occurred and any other information that may be useful in establishing the circumstances;
17.4. if possible, take photographs or video footage;
17.5. to the extent possible, make every effort to ensure that evidence is obtained to prove the damage or loss and the fault of third parties;
17.6. inform the Lessor, providing it with a description of the circumstances of the incident, an estimate of the extent of the damage and any other information that may be useful to clarify the circumstances.
IV. MANDATORY ACTION IN THE EVENT OF DAMAGE TO INVENTORY
18. Ensure that people in the vicinity of the Equipment are protected from any danger and are safe.
19. as a result of the accident, first aid must be administered, the emergency number 112 must be notified immediately if a person has been injured and the instructions given by the emergency number must be followed.
20. Take such measures as will maintain general safety and help to prevent an increase in damage and preserve the Lessor’s property.
21. Take such other reasonable steps as in the circumstances would reasonably be expected.
22. Report to the police, fire and rescue service or other authority (state environmental service, etc.) carrying out the relevant rescue work or investigating the circumstances of the accident, in accordance with the procedure laid down by law, considering the nature of the accident.
23. Record the circumstances of the loss, e.g. the national registration number of the vehicle of the other party to the accident, witnesses, the circumstances of the loss and any other information that may be useful to clarify the circumstances.
24. Inform the Lessor by providing a description of the circumstances of the accident, an estimate of the extent of the damage and any other information that may be useful in ascertaining the circumstances and agree with the Lessor on further action.
ĀTRAIS TOŅU SERVISS, SIA
1st September 2024 wording