General Exclusion
The Insurers will not indemnify the Insured in respect of loss (including consequential loss) destruction damage or expense whatsoever directly or indirectly caused by or arising out of or aggravated by
Exclusions :
1. War, invasion,
act of foreign enemy, hostilities or warlike operations (whether war be
declared or not) or civil war; Mutiny, Riots, Strike, locked out workers,
malicious acts, looting, civil commotion, military rising, insurrection,
rebellion, revolution, military or usurped power, confiscation, requisition or
nationalization, acts of terrorism committed by a person acting on behalf of or
in connection with any organization. “Terrorism” means an act by any person
using force to create public fear in an attemp to achieve a goal which
according to public opinion has a political background.
2.1 Ionizing
radiation or contamination by radioactivity from any nuclear fuel or from any
nuclear waste from the combustion of nuclear fuel.
2.2 The radioactive
toxic explosive or other hazardous properties of any explosive nuclear assembly
or nuclear component thereof.
3. Willful act or
willful negligence of the Insured or of his representatives.
4. Total or partial
cessation of work.
In any action,
suit or other proceeding where the Insurers allege that by reason of the
provisions of Exclusion 1) and 2) above any loss, destruction, damage or
expense is not covered by this insurance the burden of proving that such loss,
destruction, damage or expense is covered shall be upon the Insured.
GENERAL CONDITIONS
1.
Definition
The
Schedule(s) the Section(s) and the Endorsement(s) and the Questionnaire(s)
shall be deemed to be incorporated in and form part of this Policy and the
expression “this Policy” wherever used in this contract shall be read as
including the Schedule(s) the Section(s) and the Endorsement(s) and
Questionnaire(s).
Any word or
expression to which a specific meaning has been attached in any part of a
Section or of the Endorsement or Questionnaire shall bear such meaning wherever
it may appear in such Section, Endorsement, or Questionnaire.
2.
Policy Voidable
This policy
shall be avoidable in the event of misdescription, misrepresentation of
non-disclosure in any material particular.
3.
Alteration
3.1. Section I of
this policy shall be avoided with respect to any of the Property Insured in
regard to which there be any alteration after the commencement of this
insurance.
3.1.1. by removal or
3.1.2. whereby the
risk of loss, destruction or damage is increased or
3.1.3 whereby the
interest of the Insured ceases except by will or operation of law unless
admitted by the Insurer in writing
3.2. Section II of
this policy shall be avoided if after the commencement of this insurance.
3.2.1. the Business
be wound up of carried on by a liquidator or receiver or permanently
discontinued or
3.2.2. the interest
of the Insured ceases other than by death or
3.2.3. any alteration
be made either in the Business or in the premises or property therein whereby
the risk of loss destruction or damage is increase unless admitted by the
Insurer in writing
4.
Warranties
Every
warranty to which this policy is or may be made subject shall from the time the
warranty attaches apply and continue to be in force during the whole currency
of this policy and non-compliance with any such warranty in so far as it
increases the risk of any loss, destruction or damage shall be a bar to any
claim in respect of such loss, destruction or damage.
5.
Reasonable
Precaution
The Insured
shall take all reasonable precautions to prevent loss, destruction or damage,
e.g. take at his own expense all reasonable precautions, comply with all
reasonable recommendations of the Insurers to prevent loss, destruction or
damage, comply with statutory requirements and manufacturers recommendations.
6.
Right of Inspection
Representatives
of the Insurers shall at any reasonable time have the right to inspect and
examine the risk and the Insured shall provide the representative of the
Insurers with all details and information necessary for the assessment of the
risk. Said inspection/examination shall not impose any liability on the
Insurers and shall not be taken as guarantee for the Insured of the safety
standards of his operations.
7.
Claims Procedure
7.1. In the event of
any occurrence which might give rise to a claim under this Policy, the Insured
shall
- immediately
notify the Insurers by telephone or telegram as well as in writing about the
nature and extent of loss, destruction or damage
- take all steps
within his power to minimize the extent of the loss, destruction or damage
- preserve the
parts affected and make them available for inspection by a representative or
surveyor of the Insurers
- furnish all such
information and documentary evidence as the Insurers may require
- immediately
inform the police authorities in case of loss or damage due to theft or
burglary or malicious damage.
Upon notification
being given to the Insurers under this condition, a representative of the
Insurers shall have the opportunity of inspecting the loss, destruction or
damage before any repairs or alterations are effected. If a representative of
the Insurers does not carry out the inspection within a period of time which
could be considered as adequate under the circumstances the Insured is entitled
to proceed with the repairs or replacement.
7.2. The Insured
shall not be entitled to abandon any property to the Insurers whether taken
possession of by the Insurers or not.
7.3. No claim shall
be payable under this policy unless the terms of this condition have been
complied with.
7.4. Fraud
If a claim is
fraudulent in any respect or if fraudulent means are used by the Insured or by
anyone acting on his behalf to obtain any benefit under this policy or if any
loss or destruction of or damage to the Property Insured or to property used by
the Insured at the Premises for the purpose of the Business is caused by the
willful act or with the connivance of the Insured all benefit under this Policy
shall be forfeited.
8.
Indemnification
8.1. The Insurers
shall indemnify adjusted losses within 30 days after receipt of loss adjuster’s
final report or equivalent proof of loss
8.2. Liability
having been admitted, payments on account not exceeding the minimum amount
justified by the prevailing circumstances shall be effected
8.3. The Insurers
shall be entitled to withhold indemnification
- If there are
doubts regarding the Insured’s right to receive the indemnity, pending receipt
by the Insurers of the necessary proof
- If in connection
with the claim an examination by the police or an inquiry under criminal law
has been instituted against the Insured, pending completion of such examination
or inquiry
9.
Interest payments
The Insurers
shall not be liable to pay interest other than interest for default.
10. Arbitration
If any difference
shall arise as to the amount to be paid under this Policy (liability being
otherwise admitted) such difference shall be referred to the decision of an
Arbitrator to be appointed in writing by the parties; if they cannot agree upon
a single Arbitrator to the decision of two Arbitrators, one to be appointed in
writing by each of the parties, within one calendar month after having been
required in writing so to do by either of the parties or in case the
Arbitrators do not agree, of an Umpire to be appointed in writing by the
Arbitrators before entering upon the reference. The Umpire shall sit with the
Arbitrators and preside at their meetings. The making of an award shall be a
condition precedent to any right of action against the Insurers.
11. Subrogation
The Insured shall
at the expense of the Insurers do and concur in doing and permit to be done
all such acts and things as may be
necessary or required by the Insurers in the interest of any rights or
remedies, or of obtaining relief or indemnify from parties (other than thode insured under this policy)
to which the Insurers shall be or would become entitled or subrogated upon
their paying for or making good any loss, destruction damage or expense under
this policy whether such acts and things shall be or become necessary or
required before or after the Insured’s indemnification by the Insurers.
12.
Other Insurance
If at the time any
claim arises under this Policy there is any other insurance covering the same
loss, destruction or damage the Insurers shall not be liable to pay or
contribute more than their ratable proportion of any claim for such loss,
destruction or damage.
13. Period
of Insurance
The period
of insurance is one year. Inception and expiry shall both be
14. Average
The sums insured of
each item under this policy (other than those applying solely to fees, rent,
removal of debris or private dweling house) are declared to be separately
subject to Average.
Section
I
If the property
Insured under any item shall at the commencement of any loss, damage or
destruction hereby insured against be collectively of greater value than the
respective sum insured, then the Insured shall
be considered as being his own insurer
for the difference and shall bear a ratable share of the loss
accordingly.
Section II :
The cover provided
under this section shall be limited to (a) loss of Rent Receivable and (b)
additional expenditure and the amount payable as indemnity thereunder shall be:
(a)
IN RESPECT OF LOSS
OF RENT RECEIVABLE : the amount by which the rent receivable
during the indemnity period shall in consequence of loss destruction or damage
fall short of the standard rent receivable.
(b)
IN RESPECT OF
ADDITIONAL EXPENDITURE : the additional expenditure necessarily
and reasonably incurred for the sole purpose of avoiding or diminishing the
loss of rent receivable which but for that expenditure would have taken place
during the indemnity period in consequence of loss destruction or damage but
not exceeding the amount of the reduction in rent receivable thereby avoided.
Less any sum saved
during the indemnity period in respect of such of the expenses and changes
payable out of rent receivable as may cease or be reduced in consequence of
loss destruction or damage.
Provided that if
the sum insured by this item be less than annual rent receivable (or a
proportionately increased multiple thereof where the maximum indemnity period
exceeds twelve months) the amount payable shall be proportionately reduced.
15. Deductibles
This policy
does not cover the amounts of the deductibles stated in the Schedule in respect
of each and every loss as ascertained after the application of all other terms
and conditions of the policy including any condition of Average.
Warranted
that the Insured shall not effect insurance in respect or the amount of the
deductible stated in the Schedule.
16. Sum(s)
Insured
The sum(s)
insured shall not be reduced by any indemnity payments.
MATERIAL DAMAGE
The insurers hereby
agree with the Insured that if at any time during the period of insurance the
items or any part thereof entered in the Schedule and whilst at the premise(s)
described in such Schedule shall suffer any unforeseen, sudden and accidental
physical loss, destruction or damage other than those specifically excluded in
the General or special Exclusions in a manner necessitating repair or
replacement, the Insurers will indemnity the Insured in respect of such loss,
destruction or damage as hereinafter provided by payment in cash, replacement
or repair (at the Insurers’ option) up to an amount not exceeding in respect of
each of the items at any location specified in the Schedule the sum set
opposite thereto (sum insured) and not exceeding in all the total sum expressed
in the Schedule as insured hereby.
Special Exclusion
1. The insurers
shall not be liable for loss, destruction of or damage to
1.1 property in the course of construction or
erection
1.2. property being
worked upon and actually arising from the process of manufacture testing,
repairing, cleaning, restoring, alteration, renovation or servicing
1.3. property in
transit by road, rail, air or water
1.4. licensed road
vehicles, railway locomotives and rolling stock, watercraft, aircraft,
spacecraft and the like
1.5. jewelry,
precious stones, precious metals, bullion, furs, curiosities, rare books or
works of art
1.6. standing
timber, growing crops, animals, birds, fish
1.7. land (including
topsoil, backfill, drainage or culvert), driveways, pavement, roads, runways,
railway lines, dams, reservoirs, surface water, underground water, canals,
rigs, wells, pipelines, cables, tunnels, bridges, docks, piers, wharves, mining
property underground, offshore property
1.8. property in the
possession of customers under Rental Agreements or Hire Purchase Credit or
other Suspensive Sale Agreements
1.9. property which
at the time of the happening of loss, destruction or damage is insured by or
would but for the existence of this policy be insured by any marine policy or
policies
2. The Insurers
shall not liable for loss, destruction of or damage to the property insured
directly or indirectly caused by or
arising out of or aggravated by:
2.1. delay, loss of
market of other consequential or indirect loss or damage of any kind or
description whatsoever
2.2. dishonesty,
fraudulent act, trick, device or other false pretense
2.3. disappearance,
unexplained or inventory shortage
2.4. joint leakage,
failure of welds, cracking, fracturing, collapse or overheating of boilers,
economizers, superheats, pressure vessels or any range of steam and feed piping
in connection therewith, mechanical or electrical breakdown or derangement in
respect of the particular machine apparatus or equipment in which such
breakdown or derangement originates
2.5. all gradually
operating causes, including but not limited to wear and tear, rust, corrosion,
mildew, mould, fungus, wet or dry rot, gradual deterioration, latent, defect,
inherent vice, slowly developing deformation or distortion, insects larvae or
vermin of any kind, microbes of any kind, unless sudden and unforeseen physical
loss, destruction or damage ensues, in which case Insurers’ liability shall be
limited to such ensuing loss, damage or destruction
2.6. pollution or
contamination, unless caused by fire, lightning, explosion, aircraft or other
aerial devices or articles dropped therefrom, riot, civil, commotion, strikers,
locked out workers, persons taking part in labour disturbances, malicious
persons (other than thieves), earthquake, storms, flood, escape of water from
any tank apparatus or pipe or impact by any road vehicle or animal
2.7. enforcement of
any ordinance or law regulating the construction, repair or demolition of any
Property Insured hereunder except as provided for in the Public Authorities
Memorandum incorporated in this Section
2.8. shrinkage,
evaporation, loss of weight, change in flavour, colour, texture or finish,
action of light.
2.9. change in
temperature or humidity, failure or inadequate operating of any air
conditioning cooling or heating system due to operating error. The burden of
proof that no operating error occurred, shall be upon the Insured.
3. The Insurers
shall not be liable for the costs :
3.1. of rectifying
defective materials, faulty workmanship or design
3.2. of normal
upkeep, normal making good, maintenance
3.3. arising from
false or unauthorized programming, punching, labeling or inserting, inadvertent
canceling of information or discarding of data media and from loss of
information caused by magnetic fields.
Special Conditions
1. Sum Insured:
It is a
requirement of this Insurance that the sums insured stated in the Schedule
shall not be less than the cost of reinstatement as if such property were
reinstated on the first day of the Period of Insurance which shall mean the
cost of replacement of the insured items by new items in a condition equal to
but not better or more extensive than its condition when new.
2. Basis of Loss Settlement :
In the event
of any loss, destruction or damage the indemnification under this section shall
be calculated on the basis of the reinstatement or replacement of the property
lost destroyed or damaged, subject to the following provisions :
2.1. Reinstatement
or replacement shall mean :
(1) where property
is lost or destroyed, the rebuilding of any buildings or the replacement of any
other property by similar property, in either case in a condition equal to but
not better or more extensive than its condition when new.
(2) where property
is damaged, the repair of the damage and the restoration of the damaged portion
of the property to a condition substantially the same as but not better or more
extensive then its condition when new.
2.2. Special
Provisions :
(1) the work of
reinstatement (which may be carried out upon another site and in any manner
suitable to the requirements of the Insured subject to the liability of the
Insurers not being thereby increased) must be commenced and carried out with
reasonable dispatch otherwise no payment beyond the amount which would have
been payable under the policy if this special provisions had not been
incorporated herein shall be made.
(2) where any
property is lost destroyed or damaged in part only the liability of the
Insurers shall not exceed the sum representing the cost which the Insurers
could have been called upon to pay for reinstatement if such property had been
wholly destroyed.
(3) if at the time of
reinstatement the sum representing the cost which would have been incurred in
the reinstatement if the whole property covered by such item had been destroyed
exceeds the sum insured thereon at the commencement of any destruction of or damage
then the Insured shall be considered as being his own insurer for the
difference between the sum insured and the sum representing the cost of
reinstatement of the whole of the property and shall bear a ratable proportion
of the loss accordingly.
(4) Until the cost of
reinstatement or replacement shall have been actually incurred the amount
payable under each of the items shall be calculated on the basis of the actual
cash value of such items immediately before the loss destruction or damage with
due allowance for depreciation for age, use and condition.
3. First Loss Insurance
3.1. The items
mentioned hereinafter are covered on a First Loss Basis, subject to
amounts per item entered in the Schedule
- Money and stamps
- Employees Pedal
Cycles and other Personal Effects
- Documents,
Manuscripts and Business Books : only the value of materials as stationery,
together with the cost of clerical labour expended in writing up, and not the
value of the information to the Insured
- Computer Systems
records but only the value of materials together with the cost of clerical
labour and computer time expended in reproducing such records (excluding any
expense in connection with the production of information to be recorded
therein), but not for the value of the information contained therein to the
Insured
- Patterns, Models,
Moulds, Plans and Designs : an amount not exceeding the cost of the labour and
materials expended in reinstatement
3.2. Debris Removal
This policy
covers the necessary expense for removal of debris of insured property from the
described premises as a result of physical loss, destruction or damage insured
against under this policy.
The Company’s total
liability for debris removal is limited to the amount entered in the Schedule.
4. Capital Additions
The insurance
by this Policy shall subject to its terms and conditions, extent to cover :
- any newly
acquired buildings, machinery and other equipment in so far as the same are not
otherwise insured, and
- alteration,
additions and improvements to buildings, machinery and other equipment
during the
current period of insurance at any of the premises hereby insured, provided
that :
(1) at any one
location this increase shall not exceed 5 % of the total sum insured on such
item;
(2) the Insured
advise the Insurers within three months of the particulars of any such capital
additions and pay such additional premiums as the Insurers may require.
Posts
