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                            5228.301 Policy.
        
                  NMCARS
NMCARS
Change Number: NMCARS Change 18-22 Effective Date: 07/11/2022
PartPart 5201Part 5202Part 5203Part 5204Part 5205Part 5206Part 5207Part 5208Part 5209Part 5211Part 5212Part 5213Part 5214Part 5215Part 5216Part 5217Part 5219Part 5222Part 5223Part 5225Part 5227Part 5228Part 5229Part 5230Part 5231Part 5232Part 5233Part 5234Part 5235Part 5236Part 5237Part 5239Part 5241Part 5242Part 5243Part 5245Part 5246Part 5248Part 5249Part 5250Part 5252Annex 1Annex 2Annex 3Annex 4Annex 5Annex 6Annex 7Annex 8Annex 9Annex 10Annex 11Annex 12Annex 13Annex 14Annex 15Annex 16Annex 17Annex 18Annex 19Annex 20Annex 21Annex 22Annex 23Annex 24Annex 25
Subpart5228.35228.90
Section5228.3015228.3055228.307
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5228.301 Policy.5228.301 Policy.    (a)(1) DON policy is to rely upon the commercial insurance industry to the maximum extent practicable to protect contractors against risks arising under contracts. However, it may be preferable or necessary to provide Government indemnification--       (A) Where there is a continuing program, such as for nuclear vessels, and insurance premium costs over a period of time could equal the amount of coverage;       (B) Where war risk is involved;       (C) Where the cost of insurance is so excessive it is unreasonable and constitutes a "turndown quotation";       (D) Where the Government risk is rated only on its isolated experience and not shared with the risks of others, whether or not the risk is unusually hazardous;       (E) Where an urgent requirement allows insufficient time to receive a competitive insurance quotation;       (F) Where the degree of risk is either very small or catastrophic; or       (G) Where indemnification of the deductible portion of insurance coverage will substantially reduce insurance costs.       (b) All matters concerning indemnification shall be referred to DASN(P) for decision or recommendation sufficiently in advance of contract award. **5228.301-90 Authority to act.****5228.301-91 Payment of claims to third parties.****Parent topic:**  Subpart 5228.3 - INSURANCE
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