HOUSEHOLD INSURANCE TERMS AND CONDITIONS 3/2011

Transcription

1 HOUSEHOLD INSURANCE TERMS AND CONDITIONS 3/2011 Effective as of These household insurance terms and conditions of Seesam Insurance AS (hereinafter referred to as Seesam) consist of the terms and conditions and safety requirements of property and liability insurance. PROPERTY INSURANCE 1 PURPOSE OF INSURANCE The purpose of insurance is to indemnify the direct material damage caused during the insurance period to the insured object as a result of a sudden and unforeseen loss event specified in Clause 4 and for additional damage specified in Clause 5 according to these terms and conditions and the General contractual terms and conditions of Seesam. 2 INSURED OBJECT The insured object is a building, apartment, or household property belonging to or used by the policyholder, which is/are located in the place specified in the insurance policy (hereinafter referred to as the Place of Insurance). 2.1 Building A building is a legal construction work with an interior room, separated from the external environment by a roof and other external envelopes. 2 internal finish (e.g., covering materials of walls, floors and ceilings, bathtubs, shower trays, sanitary equipment, integrated furniture and kitchen furniture (except for kitchen appliances and tables-chairs), integrated sliding and articulated doors); 3 external finish; 4 heating sources, fireplaces, and chimneys permanently connected to the building structures; 5 permanent utility systems in the building (e.g., heating, cooling, water and gas supply, sewerage and ventilation systems, and also their wires, pipes, channels and tanks); 6 permanent low-current systems in the building (e.g., communications, security alarm, and sound systems) and the power supply system; 7 radio and television transmission antennas, lighting installations, and parts of airconditioning appliances installed on the external walls or the roof of the building A house which is part of a terraced house or a semi-detached house, i.e., part of a building delimited in reality as a physical share, can also be insured as a building. Utility, low-current, and power supply systems meant for common use and not located in the insured part of a terraced house or semi-detached house are insured to the extent which corresponds to the area of the part of the terraced house or semidetached house of the total area of the building A residential building, ancillary building, or a sauna may be deemed a building. An ancillary building is a building that is not used for residential purposes (e.g., storehouse, livestock housing, barn, or garage) Insurance cover shall extend to buildings under construction if the construction of the roof is completed, doors and windows have been installed, and all other openings, which could enable unauthorised persons to enter the building without using any auxiliary equipment, are firmly closed (see Clause 6, Construction and Repairs) The insurance shall cover the building located in the Place of Insurance and its essential parts which include the following: 1 main structures (e.g., foundation, internal and external walls, ceilings, floors, stairs, roof) and parts of the building (e.g., doors, windows, storm water drainage); The box of a building, i.e., a building without any internal finish, can also be insured as a building (see Clause ) The insurance of a building shall also cover the following: 1 excluding area insurance, structures which belong to the building and are permanently located on the plot (e.g., fences, flagpoles, terraces, outdoor lighting installations, wind power generator, paved roads, ball game courts, and playgrounds), and small buildings 2 the size of which does not exceed 12 m (e.g., children's playhouses, grill houses, doghouses, woodsheds) to the maximum extent of EUR Small buildings, the size 2 of which exceeds 12 m, and a sauna which is located separately from the residential building, irrespective of its size, are insured only if so specified in the insurance policy;

2 2 external utility systems and power supply system up to the border of the plot or to the point of connection with the public piping or power line; 3 a year's supply of heating fuel required for heating the building The insurance of a building shall not cover the following: 1 portable equipment (e.g., electric stove, refrigerator, washing machine, electric radiators) and furniture, also curtain rods and fittings, curtains, portable carpets and lighting installations; 2 advertisements installed on the external walls of the building, which are insured only if so specified in the insurance policy; 3 wharfs, promenades, berths, and other structures built in water; 4 ponds, garden sculptures; 5 soil, plants and water (including well water). 2.2 Apartment An apartment, in actuality, is a structurally restricted legal dwelling The insurance shall cover the apartment located in the Place of Insurance and its essential parts which include the following: 1 internal finish (e.g., covering materials of walls, floors and ceilings, bathtubs, shower trays, sanitary equipment, integrated furniture and kitchen furniture (except for kitchen appliances and tables-chairs), integrated sliding and articulated doors); 2 main building structures within the apartment, the removal of which does not endanger the stability of the building (e.g., non-load-bearing partitions, doors, windows, balconies or loggias of the apartment); 3 permanent utility systems in the apartment (e.g., heating, cooling, water and gas supply, sewerage and ventilation system, and also their wires, pipes, channels and tanks); 4 permanent low-current systems in the apartment (e.g., communications, security alarm, and sound systems) and the power supply system; 5 heating sources and fireplaces which are located in the apartment and permanently connected to the building structures; 6 parts of the air-conditioning appliances of the apartment installed to the external walls of the building; 7 one year's stock of combustible material necessary for heating only the insured apartment The following are not deemed parts of an apartment: 1 structures which ensure the stability or safety of the building (e.g., load-bearing structures, foundation, roof, stairs), and also parts of the building, systems, or devices meant for joint use by apartment owners (e.g., boiler room, utility system, lifts, internal finish of the staircase, external finish); 2 portable equipment (e.g., electric stove, refrigerator, washing machine, electric radiators) and furniture, also curtain rods and fittings, curtains, portable carpets and lighting installations Excluding area insurance, the internal finish of a storeroom located in the same building but not being directly connected with the apartment, the door of the storeroom, and shelves permanently installed in the storeroom are insured together with the apartment to the extent of EUR The prerequisite for the validity of the insurance cover is that the storeroom is in the sole use of the policyholder, surrounded by nontransparent enclosures, and can be locked Upon insuring the apartment ownership the insurance shall cover the apartment insurance (see Clause 2.2.2) and the part of the building structures matching the size of the apartment, which are structures that ensure the stability or safety of the building, as well as parts of the building, systems, or devices meant for joint use by apartment owners (see Clause ). Along with the apartment ownership, objects located on the same registered immovable (see Clause ) are insured in accordance with the size of the insured apartment. 2.3 Household property Household property means movable property located in a building or an apartment The household property insurance shall cover the following: 1 furniture (except for integrated furniture and kitchen furniture, integrated sliding and articulated doors insured together with the building or apartment); 2 furnishings (e.g., portable carpets, lighting installations, curtains, curtain rods and fittings, wall clocks, mirrors) and tableware; 3 house plants; 4 garments, footwear, and bedclothes; 5 kitchen equipment and household appliances (e.g., electric or gas stove, refrigerator, washing machine, kettle, food processor); 6 electronic equipment (e.g., television set, stereo system, computer, printer); 7 tools and garden appliances (e.g. lawnmower, brush cutter, hedge trimmer, shovel); 8 hobby equipment (e.g., photo equipment, musical instruments, sports, hunting and hiking equipment). If hobby equipment is used to ride on land or in water, the property shall be insured on the basis of Clause ; 9 art, collections, and valuables to the extent of EUR 3000; 10 land vehicles and water crafts not subject to 2

3 registration and their parts to the extent of EUR 3000 per loss event (e.g., bicycle, rowing-boat, motorised bicycle); 11 other household property The following shall not be insured as household property: 1 agricultural products, alcohol; 2 animals, birds, fish; 3 documents, manuscripts; 4 cash, postmarks, bonds, securities, cheques, bank cards; 5 drawings, models, forms; 6 databases, archives; 7 computer software, licenses, electronically preserved data; 8 ammunition, explosives; 9 objects not in compliance with security requirements or legislation; 10 power-driven land vehicles, water and aircraft subject to registration and their parts. 11 assets used in economic activities (for example goods, sample goods, semi-finished goods, shop's interior equipment, production equipment) Unlike Clause household property insurance shall be valid outside of the Place of Insurance, up to EUR 1000, within the borders of the Republic of Estonia. Insurance shall be valid with regard to the assets accompanying the policy holder and lawful family members or cohabitees living together with the policy holder at the address named in the policy. Not insured are unregistered motorised land or water craft and their parts Household property insurance is also valid to the extent of 10% of the limit of indemnity of household property for other buildings located on the same registered immovable as the residential building or a storeroom located in the same building as the apartment. The prerequisite for the validity of the insurance cover is that the storeroom is in the sole use of the policy holder, surrounded by non-transparent enclosures and is lockable. 2.4 Lease costs of a temporary dwelling Seesam shall indemnify the lease costs of a temporary dwelling and costs necessary for the change of lodgings after an insured building or apartment has become uninhabitable as a result of an insured event Lease costs shall be indemnified without utility costs. Before signing a lease contract, the policyholder must coordinate leasing a temporary dwelling with Seesam Reasonable and justified costs incurred as from the moment of the occurrence of damage until the restoration of a building or an apartment which constitutes the insured object, but not later than 12 months after the insured event, are subject to indemnification as lease costs of a temporary dwelling. The maximum indemnity is the sum insured for lease costs of a temporary dwelling indicated in the policy The insurance shall not extend to persons who use an insured building or apartment on the basis of a lease contract. 2.5 Loss of rent Seesam shall indemnify the loss of rent without utility costs for a leased building or apartment which constitutes the insured object and has become uninhabitable as a result of an insured event Pursuant to a lease contract entered into in writing, reasonable and justified loss of rent incurred as from the moment of the occurrence of damage until the restoration of a building or an apartment which constitutes the insured object, but not later than 12 months after the insured event, is subject to indemnification. The maximum indemnity is the sum insured for loss of rent indicated in the policy. 3 INSURANCE COVER 3.1 The types of insurance cover are: 1 fire and storm insurance which shall cover the risks of fire, direct lightning, explosion, and storm damage to the extent indicated in Clauses 4.1 to 4.4 and 4.8; 2 comprehensive insurance which shall cover the risks of fire, direct lightning, explosion, storm damage, burglary, robbery, vandalism, and leakage from piping to the extent indicated in Clauses 4.1 to 4.6 and 4.8; 3 all-risk insurance which shall cover damage caused by a sudden and unforeseen event respectively to the extent indicated in Clauses 4.7 and The type of insurance cover chosen by the policyholder shall be indicated in the insurance policy. 4 INSURED EVENTS AND RESTRICTIONS 4.1 Fire Seesam shall indemnify damage caused by a fire Seesam shall not indemnify the following: 1 damage to an electrical device (e.g., television set, stereo system, computer), if the damage was caused by an electrical event inside the given device and the fire did not reach out from the named device; 2 damage not caused by heat generated from fire. 4.2 Direct lightning Seesam shall indemnify damage caused by lightning which directly struck the insured object. 3

4 4.2.2 In addition to the provisions of Clause 4.2.1, Seesam shall also indemnify indirect damage caused by lightning which struck the power cabling or electricity meters, if the insured object was a building or an apartment. 4.3 Explosion Seesam shall indemnify damage caused by an explosion. 4.4 Storm damage Seesam shall indemnify damage caused by wind, the speed of which was at least 18 m/s, according to the data of the meteorological station located nearest to the Place of Insurance Damage caused by a rise in lake, river or sea level shall be compensated Seesam shall not indemnify damage caused by the following: 1 damage caused to household property by a storm which did not result in damage to a building or an apartment. 2 precipitation entering a structure via its unclosed openings or a structure's building shell, except if the openings were created as a result of a storm. 4.5 Theft, robbery and vandalism Seesam shall indemnify damage caused by the following: 1 removal of an insured object for the purposes of unlawful acquisition (theft); 2 taking away an insured object for the purpose of its illegal appropriation, if the appropriation has been executed using violence, i.e., causing damage to health, striking, battery, or other physical abuse that has caused physical distress, or threatening with murder or damage to health (robbery); 3 unlawful, intentional destruction or tampering of the insured object by a third party (vandalism). 4.6 Leakage from piping Seesam shall indemnify damage caused by the following: 1 liquid discharged as a result of a breakage in the permanent water supply, heating or cooling system, or the internal storm water drainage of the insured building or apartment; 2 water discharged as a result of the breakdown of a household appliance (e.g., washing machine, boiler) or connection details of a household appliance which is connected to the permanent water supply system of the insured building or apartment; 3 water discharged from the permanent water supply, heating, or cooling system of an apartment owned by a third party; 4 effluent or waste water discharged as a result of an accident in the internal sewerage system Seesam shall not indemnify the following: 1 damage caused by liquid which has penetrated the building through its structures (e.g., wall, roof, open window) or from external piping; 2 damage caused by flooding of the sewerage system of the building or apartment due to heavy rain, melting snow, or flood. 4.7 All-risk insurance Seesam shall indemnify material damage caused to the insured object due to sudden and unforeseen events. 4.8 General restrictions Seesam shall not indemnify the following: 1 damage caused by long-term processes (e.g. deterioration, corrosion, material fatigue, spoilage, decaying, mould, moisture, condensed water, fungal infestation, smell, dry rot, decaying of wood, freezing, overheating, thermal stress, vibration caused by traffic, heaving); 2 damage caused by poor construction or repairs, errors in calculations or drawings, defective or unsuitable materials or instructions; 3 damage caused by the movement or weight of ice or snow; 4 damage resulting from professional blasting operations; 5 Damage resulting from an explosion in explosives substances stores; 6 damage caused to an object during processing with an open flame or at a high temperature; 7 damage caused by a rise in lake, river or sea level, if a direct cause-and-effect relationship is absent with the storm or torrential rainfall (for example, annual flood) having taken place at the Place of Insurance; 8 cost of what has been discharged from piping; 9 damage caused by the freezing, sinking or movement of the ground; 10 damage caused by the melting of ice or snow, if the event was not sudden or unforeseen; 11 damage caused by insects, rodents, birds or domestic animals; 12 criminal damage incurred due to reasons other than theft, robber or vandalism; 13 Operational expenditures and costs arising from the replacement or repair of objects during the course of maintenance; 14 damage to sporting equipment during the course of normal use; 4

5 16 damage arising from the use or storage of an insured object under inappropriate or nonstandard conditions; 17 damage subject to compensation under a guarantee issued to an insured object or under another compulsory insurance contract In the case of all-risk insurance and a piping system leak insured event, the damage caused by the object to other insured objects, as a result of the sudden and unforeseen event, shall be compensated under factors listed in Clauses ADDITIONAL DAMAGE 5.1 Locks renewal costs If the key was removed from the possession of the policy holder as a result of the theft or burglary committed in the building or apartment (see Clause 4.5.1) and for the prevention of any further damage the replacement of locks or installation of a new locking system is necessary, the cost shall be compensated to the extent of EUR Unlike the deductible specified in the insurance policy, the deductible upon indemnification of the costs of renewal of locks shall be EUR Demolition and waste removal costs The costs arising from the demolition of a building or an apartment damaged due to an insured event, and the waste removal costs shall be indemnified to the maximum extent of 10% of the direct material damage, but not exceeding EUR Costs caused by requirements established by authorities The costs caused by mandatory requirements established by authorities upon the restoration of a building or an apartment damaged as a result of an insured event shall be indemnified to the maximum extent of 10% of the direct material damage, but not exceeding EUR Costs of the moving or assembly of household property The indemnification of costs caused by the necessary moving or assembly of domestic equipment as the result of an insured event shall be indemnified to the maximum extent of 5% of the cost of repair works. 5.5 Additional costs In addition to indemnifying direct material damage caused to the insured object as a direct result of insured events indicated in Clause 4, Seesam shall also indemnify the following: 1 damage suffered in connection with the loss of or damage to an insured object due to an insured event which is indemnified on the basis of these terms and conditions; 2 damage caused by weather phenomena as a result of direct and unavoidable occurrence of the indemnified insured event; 3 damage arising from the elimination of the consequences of an insured event. 6 CONSTRUCTION AND REPAIRS 6.1 Construction works mean the erection, expansion, or reconstruction of a building (e.g., altering the peripheral structures of a building, altering and replacing load-bearing and reinforcing structures), altering a utility system or part of a utility system, or the replacement of the whole utility system, and the demolition of a building. 6.2 Repairs include works which are not deemed to be construction works (e.g., wallpapering, painting, replacement of flooring, windows or doors). 6.3 If the insurance cover type of a building, apartment or household property is all-risk insurance, the insurance cover of comprehensive insurance shall apply during construction works. In the case of other types of insurance cover, the chosen type of insurance cover shall apply. 6.4 Regarding building materials used in construction and repair works, the insurance cover shall become effective as of the moment the materials arrive within the interior space of the insured building or apartment. Damage to non-fastened building materials shall be indemnified to the maximum extent of EUR When indemnifying damage caused by construction works, the amount of deductible indicated in the insurance policy shall apply in triple amount, but no less than EUR DEDUCTIBLE 7.1 The policyholder has a deductible in respect of any insured event. The amount of the deductible is indicated in the insurance policy or the insurance terms and conditions. Seesam shall indemnify only for the amount exceeding the deductible. 7.2 Deductible shall not be applied in the case of damage arising from theft, if the apartment was entered via the breaking or picking of a security lock, from which clear evidence of damage has been left behind. 7.3 Deductible shall not be applied in the case of the breaking of the building's external doors, windows or glass balustrades during the insured event. 8 INDEMNIFICATION OF DAMAGE CAUSED TO A BUILDING OR AN APARTMENT 8.1 The basis for indemnification of damage caused to a building or an apartment is the 5

6 reinstatement value or the value of the day of the property. 8.2 Reinstatement value is the cost of the reinstatement of property in its initial form in the Place of Insurance. 8.3 The value of the day is the reinstatement value, from which has been subtracted the part of value which the building or an apartment has lost due to depreciation by the day of the loss event. 8.4 If the depreciation of a building or an apartment immediately before the insured event is below 50% and the policyholder or a beneficiary begins to reinstate the building or apartment within two years at the latest after the occurrence of the insured event, the damage shall be indemnified on the basis of the reinstatement value. 8.5 If the depreciation of a building or an apartment immediately before the insured event exceeded 50% or the reinstatement of the building or apartment has not been commenced within two years after the occurrence of the insured event, the damage shall be indemnified on the basis of the value of the day. 8.6 Construction or repair works necessary for the reinstatement of a building or an apartment shall be indemnified on the basis of calculations and invoices that have previously been coordinated with Seesam. The cost of indemnified works performed on the basis of the value of the day shall be reduced by the depreciation of the building or apartment. 8.7 In the event of indemnification of water damage caused by a breakage in the heating or water supply system, the following value reductions depending on the age of the building shall apply: Age of building Reduction % years 30% 50 years and more 60% The age of a building is calculated in full years as of the beginning of the calendar year following the construction year of the building (the year following the construction year of the building is deducted from the year of the occurrence of the loss event) If the policyholder proves that the damage was caused by piping which had been renovated or replaced after the construction of the building, the value reduction is calculated on the basis of the year following the year when the piping was renovated or replaced Water damage reductions shall not be applied in the case of damage resulting from water discharged from a household appliance (for example, washing machine, boiler) permanently connected to the sewerage system or water supply system In the event of indemnification of damage, deductible shall not apply in addition to water damage reductions; the value reduction shall nevertheless be equal to the amount of deductible. 9 INDEMNIFICATION OF DAMAGE CAUSED TO HOUSEHOLD PROPERTY 9.1 The basis for indemnification of damage caused to household property is the replacement value or the market value of the property. 9.2 Replacement value is the cost of the acquisition of new equal property to replace the insured household property in the Place of Insurance. 9.3 Market value is the local average sales price of household property upon entry into an insurance contract The amount of damage to houseplants, art, collections, valuables, computers and computer related devices, mobile phones, unregistered motor vehicles, water or aircraft and their parts shall be determined based on market value. 9.4 If it is possible to repair the household property and economically expedient to do so, the amount of the damage shall be the repair costs. 10 OTHER RULES OF INDEMNIFICATION 10.1 Consequences of submitting false information If the policyholder has provided false information when entering into an insurance contract, on the basis of which a significantly smaller amount of insurance premium has been calculated, damage shall be indemnified proportionally to the ratio of insurance premium which has been calculated on the basis of correct information to insurance premiums calculated on the basis false information Reduction of value Seesam shall not indemnify the reduction of value or the emotional value of an object. The reduction of the value of an object is a situation where the value of a restored object or a new equal object is smaller than the value of the object immediately before the occurrence of the insured event Reduction of the sum insured after an insured event The sum insured shall not be reduced by the disbursed indemnity Damaged and lost household property If Seesam indemnifies the acquisition of a new equal object, the ownership of the damaged object shall transfer to Seesam. The policyholder must hand over the damaged object to Seesam If the policyholder fully or partially regains a 6

7 lost thing after receipt of indemnity, the policyholder shall promptly transfer or return to Seesam the respective portion of the indemnity Multiple insurance Multiple insurance Multiple insurance means a situation where the policyholder insures the same insured risk at several insurers and the total amount payable by the insurers would exceed the amount of damage or where the total sums insured would exceed the insurable value. In the event of multiple insurance, the insurers shall bear equal liability Value added tax The value added tax returnable to the policyholder on the basis of the Value Added Tax Act is reduced by the returnable value added tax. LIABILITY INSURANCE 11 PURPOSE OF INSURANCE The purpose of insurance is to indemnify the damage caused during the insurance period according to the type of insurance cover indicated in Clause INSURED PERSON Insured persons are the policyholder and the legal or factual family members and the children of insured persons up to 18 years of age, who live together with the policyholder at the address indicated in the insurance policy (Place of Insurance). 13 INSURANCE COVER 13.1 The types of insurance cover are the following: 1 real estate liability insurance; 2 private person liability insurance Real estate liability insurance shall cover any personal or effects damage caused in an unlawful manner to a third party (injured party) by the insured person during the insurance period by the possession or use of an insured building or apartment indicated in the insurance policy, in respect of which the insured person has civil liability Private person liability insurance shall cover any personal or effects damage caused in an unlawful manner to a third party (injured party) in the pursuit of day-to-day activities as a private person, in respect of which the insured person has civil liability Private person liability is valid within the Republic of Estonia and shall also cover the insured person: 1 damage caused to the building or apartment during the course of possession; 2 damage caused by children. As opposed to that specified in the General Terms and Conditions, damage caused intentionally by children under 7 years of age due or due to gross negligence shall be indemnified; 3 damage caused by pets and damage which is caused by a collision between a pet and a means of transport. Damage caused to a vehicle when avoiding collision with a pet shall not be indemnified The insurance cover selected by the policy holder shall be marked on the insurance policy. 14 PERSONAL DAMAGE 14.1 Medical treatment expenses Medical treatment expenses are reasoned expenses involving the hospitalisation, treatment of physical harm, and acquisition of medication Reasoned expenses are expenses which do not exceed the price of the medical treatment service prescribed by legislation or the average price level in the market of the respective service The service provider or the person who actually bears the expenses shall be compensated for medical treatment expenses on the basis of an invoice accepted by Seesam Medical treatment expenses are included in damage arising from death or incapacity for work Damage arising from temporary incapacity for work Damage arising from temporary incapacity for work means a decrease of the income which is subject to social tax due to the temporary incapacity for work of a third party The basis for calculating the indemnity is the average net income per calendar day (hereinafter referred to as the Net Income). The Net Income is the person's income subject to social tax earned in the previous period, reduced by the income tax, and divided by the length of the period in calendar days The amount of indemnity per calendar days is calculated as a difference between the Net Income preceding the damage and the period of temporary incapacity for work. To identify the total amount of the indemnity, the named difference is multiplied by the number of calendar days of temporary incapacity for work, and the indemnity or compensation received on the basis of other mandatory insurance or law is subtracted from the result To calculate the Net Income of a third party before the occurrence of damage: 1 the income earned in the twelve months preceding the damage is divided by the This is a translation of the original terms and conditions in Estonian, which take precedence should there be any differences between the original and the translation 7

8 number of calendar days of the respective period. If in the period preceding the damage the person earned income in a period which is shorter than twelve months, the income of the period is divided by the number of the calendar days of that period; 2 in the case of a sole proprietor, the income subject to social tax, which has been declared in the tax returns of the last two calendar years, is divided by the number of calendar days of the respective period. If before the occurrence of the damage the person had been a sole proprietor for less than two years, the income earned in the period of being a sole proprietor shall be divided by the number of the calendar days of the respective period; 3 in the case of a non-working or unemployed person who was capable for work before the occurrence of damage and who is not under 16 years of age or of retirement age at the moment of the occurrence of the damage; the minimum monthly salary effective at the moment of occurrence of the damage is divided by Damage arising from permanent incapacity for work Damage arising from permanent incapacity for work means a decrease of the income of a third person, which is subject to social tax, due to a permanent physical injury arising from damage which must be proven pursuant to the procedure prescribed by legislation The amount of the indemnity per calendar day is calculated pursuant to the procedure set out in Clause The indemnity for the loss of the permanent capacity for work is determined per calendar month, multiplying the amount of the indemnity per calendar day by 30 and subtracting from the result the total amount of other monthly mandatory insurance or permanent indemnity or compensation payable on the basis of law The indemnity for the loss of the permanent capacity for work shall be recalculated if: 1 the third person's income has increased; 2 the indemnity or compensation permanently payable to the third person due to the insured event on the basis of other mandatory insurance or law has changed; 3 the third person has obtained the right to oldage pension The payment of the indemnity for the loss of the permanent capacity for work is terminated if the capacity for work is restored or the third person deceases In the event of the loss of the permanent capacity for work, the following reasonable single expenses which have been approved by Seesam shall be indemnified: 1 for learning a new profession, if the acquired profession improves the living standards of the injured party; 2 for acquiring means necessary for coping; 3 for the adjustment of the dwelling in the event of physical disabilities The indemnity specified in Clause shall be paid to the provider of the service approved by Seesam or the actual bearer of the costs on the basis of an invoice accepted by Seesam Pension Pension is a compensation for reduced income of a dependent family member due to the death of the injured party (deceased). Family members may be: 1 a widow or widower, who shared a household with the deceased at the time of the insured event; 2 minors; 3 a child, who is a under 24 years of age and engaged in daytime or full-time or another medically indicated form of upper secondary school or vocational school studies, or in fulltime studies at a university or institution of higher professional education; 4 adult children incapacitated for work, who were maintained by the deceased at the time of the insured event; 5 parents incapacitated for work, who were maintained by the deceased at the time of the insured event; 6 other persons incapacitated for work, who were maintained by the deceased at the time of the insured event The pension is paid to each and every family member whose income decreased due to fall-off of the deceased's income, based on the following principles: 1 the subsistence of the family is formed of the income of the family members, periodic pensions, benefits, and alimonies (subsistence); 2 the overhead costs of the family account for up to 30 percent of the subsistence of the family. The remaining amount of the subsistence is divided between the family members so that the head of the household shall be paid three shares, his or her spouse two shares, and the remaining members of the family one share of the subsistence. The head of the household is the person who earns the highest periodic income of the family members; 3 the subsistence for each family member shall be indemnified in periodic pension payments to the amount that was borne by the deceased. In addition, the head of the household shall be indemnified the share of the overhead costs of the family borne by the 8

9 deceased; 4 the pension shall be calculated on the basis of the rules for calculation of the income specified in Clause of these terms and conditions The pension shall be subject to recalculation, if: 1 the income of the family member who is entitled to receive the pension has increased in comparison with his/her income at the time of the insured event more than the prices during the same period (compared with the price index); 2 from the month following the arrival of the retirement age of the deceased, the pension shall be paid to the amount of 50 percent of the former pension Payment of the pension to a family member shall be terminated, if: 1 the income of the family member reaches the level preceding the occurrence of the insured event; 2 the family member attains 18 years of age or, in the case of continuous studies, 24 years of age and is capable of work; 3 the family member becomes a member of a new family; or 4 the family member deceases The amount of pension designated to a head of the household to cover the overhead costs of the family shall be designated to a new head of the household, if the present head of the household becomes a member of a new family or deceases The amount of pension payable to cover the overhead costs of the family shall be reduced in proportion to the amount of pension payable to the dependants, which has been reduced due to the pension recalculation or termination of payment The amount to be paid shall be calculated by indexing the designated amount of pension to the CPI published in the month preceding the month of disbursement in relation to the CPI published in the month preceding the month of the occurrence of the insured event Funeral expenses Damage caused by death are reasonable funeral expenses which shall be indemnified to the actual bearer of costs on the basis of invoices. 15 EFFECTS DAMAGE Seesam shall indemnify the following: 1 reasonable and justified repair costs, which are the costs of restoring the damaged effect, and other expenses which are directly related to the restoration, including the costs related to saving the property; 2 damage arising from destruction of effects, the amount whereof shall equal the value of the destroyed property before the insured event. 16 COSTS FOR LEGAL ASSISTANCE 16.1 Along with the damage set out in Clauses 14 or 15, Seesam shall also indemnify, in addition to the sum insured under the liability insurance, the costs for legal assistance borne by the insured person to the maximum extent of EUR Seesam shall not indemnify legal costs deriving from the non-agreement of the insured person with the decision adopted by Seesam. 17 RESTRICTIONS Seesam shall not indemnify the following: 1 damage caused to the insured person personally or damage caused by persons who are not insured; 2 damage caused to the property possessed, leased, borrowed, or otherwise used by the insured person; 3 damage caused to the internal finish of an insured building, if only the box of the building is insured (Clause 2.1.6); 4 damage for which the insured person is liable as the owner or possessor of a building or an apartment, if the insured person does not use the building or apartment mainly as residential space; 5 liability caused by economic activities, participation in non-profit associations, or the activity of the insured person as a member of a management body of any legal person; 6 damage arising from the use of registrable motor vehicles, water or aircraft; 7 damage caused as a result of construction works performed by a third party, in the case of which the insurance cover shall extend only to requirements deriving from the possession of an insured object; 8 damage for which the insured person bears liability on the basis of a contract or guarantee; 9 damage gradually caused by vibration, noise, moisture, heat, smell, radiation, light, smoke, carbon black, dust, steam, gas, or other longterm factors; 10 damage arising from pollution of the air, soil, or water; 11 damage which arises from a flood caused by rain or thaw; 12 damage caused as a result of excavation or blasting operations; 13 damage caused by freezing, sinking, or movement of the soil; 14 damage caused in the course of an attack or a fight; 15 damage to an extent which is subject to indemnification on the basis of other liability 9

10 insurance contracts; 16 damage caused by a strike or another similar event; 17 if the incurred damage or other area of liability was or should have been known to the insured person upon conclusion of the contract; 18 injury suffered during a sporting competition within the framework of the rules of a specific sport; 19 damage suffered in connection with penalties or default interest; 20 non-proprietary claims or loss of profit due to effects damage. 18 RIGHTS AND OBLIGATIONS 18.1 The policyholder shall be obligated to: 1 promptly notify Seesam of a possible insured event and follow the instructions received from Seesam; 2 provide information necessary for identifying the obligation to perform the contract; 3 promptly notify Seesam of any civil, administrative, criminal, or misdemeanour proceedings related to the insured event An acknowledgement of obligation issued with respect to a claim for compensation of damage by the injured person or satisfaction of the claim shall not be binding upon Seesam Seesam shall have the right to hold negotiations with third parties (injured party) on behalf of the insured person. 19 RULES OF INDEMNIFICATION 19.1 In the event of the occurrence of one or several insured events in the current insurance period, the damage caused is indemnified to the maximum extent of the sum insured If several persons develop a claim due to an event which caused the liability of the policyholder and the total amount of these claims exceeds the sum insured, Seesam shall satisfy the claims in proportion to the amount of the claims with respect to the sum insured The damage which is in a direct cause-andeffect relationship with the same event shall be deemed one and the same insured event regardless of the time of the emergence of the damage The policyholder shall have a deductible in respect of any insured event. The amount of the deductible is indicated in the insurance policy or the insurance terms and conditions. Seesam shall only indemnify the amount exceeding the deductible In the event of indemnification of damage caused by construction works, the amount of deductible indicated in the insurance policy shall be applied in triple amount, but not less than EUR If several persons are liable for causing the same damage, only the portion of the total damage which corresponds to the liability of the insured person shall be indemnified, but not exceeding the sum insured In the event of indemnification of water damage caused by a breakage in the heating or water supply system, the value reductions indicated in Clause 8.7 and principles of indemnification of the described damage shall apply. SAFETY REQUIREMENTS 20 FIRE SAFETY 20.1 General requirements To ensure fire safety, the policyholder must: 1 follow all fire safety requirements established by legislation; 2 be familiar with the flammable and explosive properties of the used, processed, manufactures, and preserved substances and materials and fire safety requirements applied upon handling these substances or materials; 3 during an activity or process carrying a fire or explosion hazard, use only such equipment, appliances, plant, etc which are in working order and follow their user manuals; 4 when smoking or using open fire, take measures ensuring the prevention of fire and refrain from any activity which may result in a fire or explosion; 5 keep matches and other means of ignition out of the reach of minors and prevent minors from participating in the use of an inflammable or explosive device, combustible material, or other similar activities (e.g., electrical equipment, burning furnace, bonfire, illuminated Christmas tree) without the supervision of an adult; 6 be aware of the policyholder's obligations in the event a fire or an accident, know how to use the means of communication or rescue equipment available on the site; 7 upon detection of a fire or another accident promptly notify the Rescue Board thereof at the general emergency telephone number Heating and electrical systems Heating and electrical systems must be designed, built, installed, and taken into use as required and, upon absence of requirements, in such a manner that their use and maintenance is harmless In a room where the floor is covered with combustible material, the area in front of a heating source must be tightly covered with a metal sheet attached to the floor and the fireplace or some other non-combustible 10

11 material, or the combustible floor covering must be replaced with a non-combustible covering. In front of a heating source which has a door, the floor must be covered to an extent of no less than 400 mm from the mouth of the heating source and no less than 100 mm from the sides of the heating source. In front of an open heating source, the floor must be covered to an extent of no less than 750 mm measured from the front edge of the heating source and to an extent of no less than 150 mm from the sides of the mouth of the heating source When using a heating device, one must not: 1 use the ventilation flue for directing smoke; 2 heat a heating device which has a cracked wall, broken furnace door, or some other defect which may cause a fire; 3 light a fire in the furnace of the heating device using a flammable liquid; 4 heat a boiler, stove, or oven without closing the furnace door; 5 heat with coal, coke, oil shale, gas, or synthetic material a heating device which has not been designed or adjusted for the respective type of fuel; 6 place fuel, combustible material, or objects made of combustible material closer to the outer surface of the heating source than 0.5 m or 1.25 m from the front edge of the mouth of the furnace; 7 dry firewood, clothes, or other combustible objects on the heating device; 8 leave the heating source (except for automatically controlled heating sources) without supervision; 9 place coal or ash which has not been put out in storage of combustible material or into combustible packaging When using a temporary heating device, one must adhere to its user manual and take into account the safety distances specified in the manual In places where chimneys pass through floors which are made of combustible material, they must be surrounded with a non-combustible material pursuant to fire safety and design rules of the Republic of Estonia When using an electrical device, one must not: 1 install any temporary electrical wires (except for power wires for construction or repair works or a temporary workstation); 2 use an electrical device, cable, or wire with a damaged or spoilt isolation or some other defect which may cause a fire or an explosion; 3 use non-calibrated protections or protections the fuse element of which does not comply with the permitted current intensity; 4 use an electrical device or a power wire which does not comply with the conditions of the working environment; 5 keep any combustible materials or objects in or on a switchboard; 6 use substandard electrical heating devices or lighting installations; 7 leave without supervision electrical devices which have not been designed for permanent operation Open heating sources which are equipped with radiant heating or incandescent surfaces may not be installed into dusty rooms When leaving home, one must check that the electric stove, iron, or other flammable household appliances are not left switched on Using open fire One must not use open fire or a gas flame for defrosting frozen pipes Burning waste and garbage is permitted only in windless weather, under constant supervision, and with a respective permit One must not leave burning candles without supervision. Candles must be placed on noncombustible underlayer away from inflammable materials Hot work Hot work is work involving heating a detail or material, generation of sparks, or using open (out-offurnace) fire, such as: 1 gas welding and flame spraying; 2 electric welding; 3 cutting metal with a burning liquid; 4 soldering using a burning liquid; 5 cutting metal with a disc cutter; 6 heating and using bitumen and other burning mastic; 7 using a gas flame and a hot blower; 8 blacksmith work; 9 making a fire outside a furnace When performing hot work, one must follow fire safety requirements prescribed by legislation Flammable liquids, gases, and explosives In a building or an apartment it is prohibited to: 1 store a flammable liquid or gas in a room or another place not prescribed by the construction design for such purpose; 2 store or use flammable liquid or gas or other explosive flammable material in the basement or attic of the building if their storage or use in such a place has not been prescribed by the construction design. 11

12 21 REQUIREMENTS FOR DECREASING THE DANGER OF THEFT 21.1 Close all doors and windows when leaving home. Windows, doors, and other openings must be closed so that a building or an apartment could be entered only by breaking the locks or structures or by using force The key to a building or apartment or other means enabling entrance must not be left in a visible place or a place accessible to strangers, or be given to unauthorised persons. 23 OTHER SAFTEY REQUIREMENTS 23.1 When using and preserving household property the instructions issued by the manufacturer, seller or importer of the object must be followed Easily broken objects must be transported in public means of transport as hand baggage During the winter period, the homeowner must clean roofs of snow and ice and icicles from gutters A lock must be changed if there is reason to assume that a stranger has gained possession of the key Household property left in a motor vehicle must be stored out of sight During daytime hours, household property located outside of a building must be placed in a locked interior room after use or be locked in order to prevent theft. At night the household property is to be stored in a locked interior room. Outdoor furniture and grills must be stored indoors during the off season The control board of the automatic security system must be installed such that it would not be possible for unauthorised persons to see how it is used The work area of the security system sensors may not be blocked with furniture, house plants, or other objects The security alarm system must be inspected and maintained, and, if necessary, also improved or updated on a regular basis. 22 REQUIREMENTS FOR REDUCING THE DANGER OF WATER DAMAGE 22.1 If there are no residential spaces in the basement floor, objects stored in the basement must be placed at least 10 cm higher from the floor. The basement is the lowest storey/room, the floor of which is fully or partially at least one metre below the ground Pipes must be maintained on a regular basis and be protected against freezing. Piping must be emptied of water if a building or apartment is left without sufficient heat or supervision during a cold period The lead-in pipe of a washing machine must be connected to the general water supply system through a slide valve and pressure-resistant hose, and the discharge pipe must be tightly and permanently connected to the sewerage system of the building or apartment. 12