How To Understand Insurance In The European

Transcription

1 Home insurance terms and conditions We want our Home Insurance to be of benefit to you and give you peace of mind in unexpected turn of events.

2 Home insurance terms and conditions No. MA 0311 Approved by Resolution of the Board of Swedbank P&C Insurance AS In force from 1 March 2010 Together with Real Estate Insurance, you can select Home Insurance and/or homeowner s Liability Insurance. The selected insurance products are shown on the Insurance Policy. Please carefully read the Home Insurance Terms and Conditions in order to better understand the right and obligations arising out of Insurance Contract. Contact details: Telephone: Sale, consultations: apdrosinasana@swedbank.lv, fax: Claims handling: atlidziba@swedbank.lv, fax: Address: Balasta dambis 1a, Riga, LV This is translation. In case of dispute the Latvian language terms and conditions are valid.

3 1. General terms Definitions Entry into Force and Termination of Insurance Contract Insurance Premium Duties of Policyholder and the Insured Safety Requirements Rights and Duties of the Insurer Expenses subject to Indemnification; Insurance Indemnity and General Procedure of Payout Excess Implications of Incompliance with Duties of the Policyholder and/or Insured and/or with Safety Requirements Exchange of Information between Parties Personal Data Processing Amendment of Insurance Contract Dispute Resolution Procedure Property insurance Value of Insured Item and Sum Insured Real Estate Insurance Home Insurance Risks Covered and Exceptions Liability insurance Special terminology and duties applicable to Liability Insurance Compensated Loss Loss Not Compensated Principles of Indemnification...34

4 1. General terms These General Terms of Insurance are applicable to both Property Insurance and Liability Insurance Definitions Policyholder means the person stated on the Insurance Policy. Insurer means Swedbank P&C Insurance AS represented by Swedbank P&C Insurance AS Latvian branch. Insured means the person stated on the Insurance Policy, who has the covered interest not to suffer loss and who will be paid Insurance Indemnity upon occurrence of Insured Event. In Liability Insurance, the Insured means the owner of the real estate and their co-insured persons whose third-party liability is insured. Insurance Contract means the contract between the Policyholder and the Insurer, whereby the Insurer undertakes to pay out insurance indemnity upon occurrence of Insured Event, while the Policyholder undertakes to pay the Insurance Premium. The Insurance Contract consists of Insurance Policy, Insurance Terms and Conditions, insurance application, and other annexes or amendments, if any, to the Insurance Contract. Insurance Policy means the document issued by the Insurer as a proof of entry into the Insurance Contract. Insurance Terms and Conditions means the Home Insurance Terms and Conditions No. MA 0311 which form an integral part of the Insurance Contract. Sum Insured means a sum of money specified in the Insurance Policy, at which property values or interests are insured. Period of Insurance Contract means a period of time stated on the Insurance Policy, during which the Insurer becomes liable to pay out the Insurance Indemnity under the Insurance Contract upon occurrence of an Insured Event. Insured Item means the real estate and/or home contents and/or owner s third-party liability, as stated in the Insurance Policy, which is covered under Insurance Contract. Insurance Place means the address / territory, where the Insurer s obligations arising from the Insurance Contract are in force. Insurance Premium means the payment for insurance as fixed in the Insurance Contract. 4

5 Insured Event means an event stipulated in the Insurance Contract that stands beyond control of the Insured and is an unexpected, sudden and unforeseen event, which directly impacts the Insured Item and results in the Insured Item being damaged, damaged beyond repair or lost, and for which the Insurer pays Insurance Indemnity according to the procedure prescribed in the Insurance Contract. Excess means the part of loss, expressed as a percentage or a sum of money, which will not be reimbursed for by the Insurer upon occurrence of Insured Event. If expressed as a percentage, the Excess is calculated from the amount of loss. Excess specified in the Insurance Contract is applied in calculating the Insurance Indemnity for each separate Insured Event. Insurance Indemnity means a sum of money, which Insurer pays out to the Insured, or the services, which the Insurer provides the Insured with in case of Insured Event Entry into Force and Termination of Insurance Contract The Insurance Contract comes into force on the first day of the Period of Insurance Contract specified in the Insurance Policy, but not earlier than the Insurance Contract is entered into. The Insurance Contract continues in force until 2400 hours on the end date of the Period of Insurance Contract specified in the Insurance Policy In case of change in ownership of the insured real estate and unless agreed otherwise with the Insurer, the Insurance Contract ends 30 (thirty) days after execution of ownership transition documents (re-registration of title with the Land Registry) In case of change in ownership of the insured movable property and unless agreed otherwise with the Insurer, the Insurance Contract ends when the ownership transfer documents come into force The Insurer has the right to terminate the Insurance Contract in cases and subject to the procedure stipulated in the Law on Insurance Contract, including: when the Policyholder has failed to pay the Insurance Premium, in whole or in part, in compliance with the terms of Insurance Contract; when Covered Risk occurs due to malice of the Insured or the Policyholder; in such case the Insurance Contract will be deemed null and void as from the moment of said facts being established and the Insurance Premium will be not be refunded by the Insurer; when Insurance Indemnity is paid out. 5

6 The Insurance Contract terminates upon complete performance of the Insurer s obligations under the Insurance Contract In case of complete destruction of the Insured Item the Insurer is entitled to deduct from the Insurance Indemnity any outstanding Insurance Premium payments for the entire Period of Insurance Contract specified in the Insurance Policy The Policyholder is entitled to terminate the Insurance Contract at any time, subject to delivery of a written application for early termination of the Insurance Contract to the Insurer. In case of early termination of the Insurance Contract, the Insurer will refund the Policyholder the portion of Insurance Premium paid but not utilized, if any, on pro rata basis to the number of days remaining in the Period of Insurance Contract Where the Insurance Contract is entered into via means of distance communication, the Policyholder is entitled to exercise their right of refusal, namely to rescind the Insurance Contract within 14 (fourteen) days of entry into force of the Insurance Contract. The Policyholder expresses their consent to formation of the Insurance Contract by paying the Insurance Premium in the form, within period and to the extent stipulated in the Insurance Policy. Following payment of the Insurance Premium, or the first part thereof, within the period stipulated in the Insurance Policy, the Insurance Contract will come into force as from the date stated on the Insurance Policy. To exercise their right of refusal, the Policyholder must notify the Insurer of exercising their right of refusal in writing by delivering an application to the Insurer or by using the Internet banking site of Swedbank AS if the Policyholder has the Remote Banking Services Agreement in force with Swedbank AS. The 14-day time-limit for exercising the right of refusal will be complied with if the notice of refusal has been sent to the Insurer before expiration of that period. The Insurance Contract will be considered terminated as from the date of receiving the notice of exercising the right of refusal. If the right of refusal is exercised by the Policyholder, the Insurer will be under an obligation to refund the paid Insurance Premium to the Policyholder within a maximum of 30 days after the day of receiving the Policyholder s notice of the exercising the right of refusal Insurance Premium The Policyholder has a duty to pay the Insurance Premium, or a part thereof, in compliance with the procedure, within the period and to the extent stipulated in the Insurance Policy. 6

7 Current Insurance Premium payments specified in the Insurance Policy are payable by the Policyholder on a regular basis and in compliance with the time limits specified in the Insurance Policy, irrespective of whether or not the Insurer has sent the Policyholder a relevant written reminder or notification or invoice. Insurer s invoices are in electronic form and are valid without signature or stamp. Invoices may be sent to the Policyholder by post, or, if the Insurer has provided such an option and the Policyholder has the Remote Banking Services Agreement in force with Swedbank AS, the invoices will be made available in electronic form on the Internet banking site of Swedbank AS, where the Policyholder will have a chance to view, print, or save the Insurer s invoices on other data media, using the means of identification (such as username, password, code) issued under the Remote Banking Services Agreement Where Insurance Premium is paid by bank transfer, it will be considered paid on the date when the money enters the current account of the Insurer or of an insurance agent authorized to collect Insurance Premiums on behalf of the Insurer and through whom the respective Insurance Contract is concluded Duties of Policyholder and the Insured The duties and liabilities stipulated in Insurance Contract apply equally to the Policyholder, the Insured, family members living with them, and persons using the insured property with the permission from the Policyholder or the Insured on the basis of a contract or other legal arrangement Policyholder s duties upon entering into the Insurance Contract are: to provide the Insurer with truthful and accurate information, including about the value of the Insured Item. If malice (Section 1641 of the Civil Law) or gross negligence (Section 1645 of the Civil Law) by the Policyholder or the Insured has resulted in misleading the Insurer about the circumstances the Insurer needs to know in order to evaluate the probability of occurrence of Covered Risk, the Insurance Contract shall be deemed null and void as from the moment of formation thereof. The Insurance Premium will not be refunded by the Insurer neither in whole, nor in part; to notify the Insurer if the Insured Item is also insured with other insurance company; to provide the Insurer with a possibility to inspect the item to be insured; to notify of circumstances, which are material in the Insurer s assessment of probability of occurrence of Covered Risk. When the Policyholder or the Insured is in doubt as to the materiality of the effect of a circumstance on Covered Risk, they must consult the Insurer; 7

8 to inform the Insured, family members living with the Insured, and persons using the Insured Item with the permission from the Policyholder or the Insured on the basis of a contract or other legal relations, about the terms of Insurance Contract and to explain their rights and obligations under the Insurance Contract Duties of the Policyholder and the Insured during the Insurance Contract are: to comply with all laws and regulations in force in the Republic of Latvia, including fire safety, technical maintenance requirements and construction standards set forth in laws and regulations, and with the terms of Insurance Contract, including safety requirements; to provide emergency services, police, firemen, rescue and security services, and the Insurer with free access to the Insured Item; to notify the Insurer of any changes in the contact details of the Policyholder or the Insured with such changes being enclosed to Insurance Contract data; to use the Insured Item for its purpose, with due care, without causing loss or danger to other persons, as well as not to increase the probability of covered risks through any act or failure to act; to cause each authorized user of the Insured Item to comply with their respective duties stipulated for the Insured in the Insurance Contract, including the safety requirements laid down in the Insurance Terms and Conditions Duties of the Policyholder and the Insured in Case of an Insured Event are: to proceed in accordance with the terms of Insurance Contract and requirements of legislation, and promptly notify the relevant state or municipal institutions of the occurrence; to notify the Insurer about the Insured Event without delay and as soon as possible; to submit the claim application in the required form to the Insurer without delay and as soon as possible. The claim application may be submitted to the Insurer in writing in person, by mail or electronically on the Internet Banking site of Swedbank AS using ready-made claim application form (if such online form is provided by the Insurer); 8

9 to provide the Insurer with documents requested by the Insurer in relation to occurrence of Insured Event and losses thereby caused, including documents containing sensitive personal data and/or commercial secret, as well as information related to the Insured Event about civil, administrative and criminal proceedings in the case; to provide the Insurer with complete and truthful information about the circumstances of occurrence of the Insured Event, the amount of loss, the person responsible for causing damage and witnesses, as well as with other proof of entitlement to Insurance Indemnity; to preserve the damaged Insured Item or Insurance Place in the condition, in which it was immediately after occurrence of the Insured Event, until a person designated by the Insurer has inspected it, unless the actions set forth in paragraph of the Insurance Terms and Conditions need to be performed; to give the Insurer the opportunity to examine the Insurance Place and/or Insured Item and carry out inspections for establishing and assessing loss; to take steps and action necessary for preventing imminent loss and/or further loss, avoiding an increase in the scope of loss already sustained and/or where it is necessary in the interest of society; to preserve the damaged Insured Item, or the remains thereof, and, where requested so by the Insurer, to transfer thereof into the Insurer s possession for the time of expert evaluation; to promptly notify the Insurer of recovery of lost Insured Item, or any part or remains thereof, or notify to the Insurer the location of Insured Item, or any part or remains thereof Safety Requirements The Policyholder, the Insured, any family member living with them, and any person using the Insured Item with the permission from the Policyholder or the Insured on the basis of a contract or other legal relations, must comply with the following safety requirements: in circumstances of evident risk, take measures to protect and save the Insured Item (clean the snow amassed on the roof; move the property or protect the buildings if they are endangered by storm, flood, rising water level, waves, ice chunks); 9

10 flues and chimneys must be cleaned at least once a year; open fire and incineration of waste and garbage is only permitted in absence of wind and at places, which are specially separated and furnished for that purpose. When finished, fire must be carefully extinguished; work with open fire and work involving fire hazards may only be performed by persons qualified thereto. During fire hazardous work, and when working with tools, which produce sparks during their use, it must ensured that sparks will not reach any inflammable materials or substances. When working with open fire or doing fire hazardous work, all inflammable substances at the location of work must be covered with a fireproof material; ready-to-use basic equipment for fire extinguishing must be provided at the Insurance Place; fireplaces, furnaces, stoves, convectors, candles or other fire hazardous items may not be left without supervision or in supervision by children in preschool age; no gas devices where leakage is possible may be used. In case of gas leakage, gas valves must immediately be closed and the rooms must be ventilated, during which use of open fire, smoking, switching on or off electrical equipment is prohibited; switched on electrical heaters may not be covered and no items may be placed on them; no electrical wiring without insulation and/or with faulty insulation, faulty wall sockets and switches, as well as non-standard or standard voltage incompliant fuses may be used; it is prohibited to dry firewood, clothing and other flammable items on heating facilities; heating facilities may not be heated with fuels of inappropriate kind (e.g. firewood longer than fireplace); it is prohibited to defrost frozen pipes with open fire; it is prohibited to use grills on balconies and at other unsuitable places; it is prohibited to smoke in bed or in rooms where inflammable items or materials are located, or in places where inflammable liquids, gases or inflammable substances or explosives are stored. 10

11 water must be removed from water supply, fire extinguishing and heating systems in buildings, which are not heated during heating season or where air temperature is below 0º C; doors, windows, trapdoors and other openings of the Insured Item (real estate as stipulated in paragraph 2.2 of these Terms and Conditions) must be closed and secured during storm, thunderstorm or snowstorm; upon leaving the Insured Item (real estate as stipulated in paragraph 2.2 of these Terms and Conditions) without supervision, doors, windows, trapdoors and other openings must be locked or closed in a manner as to prevent entry without breaking in i.e. without damaging windows, doors, latches, locks or barriers obstructing entry; door keys (incl. alarm codes) may not be stored in a place and in manner what would allow third parties to access them; no names or addresses, whereby identifying the address of the Insured Item (real estate as stipulated in paragraph 2.2 of these Terms and Conditions) could be possible, may be written on keys; lock must be immediately replaced if the key is lost or has come into unlawful possession of a third party Rights and Duties of the Insurer The Insurer, upon entry into Insurance Contract, introduces the Policyholder to the terms of the Insurance Contract, and the rights and obligations of the Policyholder and the Insured Should the Insurer change its name, registered office or contact details during the Period of Insurance Contract, the Insurer will inform the Policyholder thereof by publishing such information on the website of Swedbank AS or in mass media The Insurer reserves the right, during the Period of Insurance Contract, to inspect the Insured Items and/or Insurance Place, where necessary, to set, in writing, additional safety requirements for reduction of potential risks, which will be binding on the Policyholder and the Insured Upon receipt of claim application, the Insurer or its authorized representative has the right to carry out expert assessment of the Insured Item and Insurance Place in order to establish and assess the reasons and scope of damage. 11

12 Upon receipt of claim application and all necessary documents relating to occurrence of Insured Event, the Insurer will, according to the procedure laid down in the Insurance Contract, decide on approval, reduction or denial of Insurance Indemnity and notify the Insured thereof in writing, specifying the reason and basis for reduction or denial of Insurance Indemnity The Insurer has the right to offer services to the Policyholder according to the Insurer s procedures via mail, telephone, facsimile, , or other means of communication. The Policyholder has the right to refuse from commercial information being sent to them Expenses subject to Indemnification; Insurance Indemnity and General Procedure of Payout The Insurance Indemnity may be paid out: to a service provider in the form of payment for services related to renovation of the Insured Item or any part thereof; to a person, who supplies a new Insured Item or any part thereof, as a replacement of damaged Insured Item or damaged part thereof; to the Insured in the form of cash payment The Insurer has the right to select the form of Insurance Indemnity payout The Insurer will decide on payout of the Insurance Indemnity within 30 (thirty) business days of receiving all necessary documents. The Insurer may, for valid reasons, extend this period by a maximum of 6 (six) months of the day of receipt of application for payout of Insurance Indemnity Where performance of the Insurer s obligations, or scope of performance thereof, depends on circumstances, which are ascertained in legal proceedings of criminal or administrative case or administrative rights offence case, the Insurer is entitled to decide on payout or refusal of Insurance Indemnity after suspension or termination of legal proceedings, or coming into force of court s or relevant official s decision Where a dispute arises between the Insured and the Insurer regarding the size of Insurance Indemnity, the Insurer may, prior to final calculation of damages, partially pay out the portion of Insurance Indemnity to the extent not contested by neither the Insurer, nor the Insured / injured party In case of Liability Insurance, the decision on payout of Insurance Indemnity or refusal to pay Insurance Indemnity will be notified by the Insurer to the Insured or to the injured party within 10 (ten) days of the date of decision. 12

13 The Insurer must pay out Insurance Indemnity within 15 (fifteen) days of the date of decision to pay out the Insurance Indemnity unless the Insurance Indemnity payout is planned in the form of periodic payments or provision of services or the Insurer and the recipient of Insurance Indemnity have, after the decision to pay out Insurance Indemnity, agreed on other procedure of payout of Insurance Indemnity. Where payout of Insurance Indemnity is not effected within the said period of time, the Insurer will pay a penalty at the rate of 0.1 % of the payable Insurance Indemnity for each day of delay. No penalty will be applicable if the Insurance Indemnity payout is planned in the form of periodic payments or provision of services, or the Insurer and the recipient of Insurance Indemnity have, after the decision to pay out Insurance Indemnity, agreed on other procedure of payout of Insurance Indemnity The Insurer may suspend payout of Insurance Indemnity until and unless the remains of the Insured Item, separate parts thereof, or title to the Insured Item are transferred to the Insurer. If the Insured fails to comply with the said requirement within 30 (thirty) days of receipt of a respective notice from the Insurer, the Insurer is entitled to reduce the payable Insurance Indemnity by the value of the remains of the respective Insured Item If the Insured Item has been lost as a result of theft or robbery and, following payout of Insurance Indemnity, the Insured Item has been found or the Insurer has become aware of its location, the Insured has a duty to promptly notify the Insurer thereof. If the Insured wishes to keep the recovered Insured Item or any part thereof, the Insured has a duty to return the received Insurance Indemnity to the Insurer without undue delay Insured has a duty to return the received Insurance Indemnity or any part thereof to the Insurer if, following payout of the Insurance Indemnity, any evidence is found that the paid Insurance Indemnity or any part thereof has been unfounded or unjustified In case of payment of Insurance Indemnity, the person entitled to the Insurance Indemnity must notify the Insurer of the bank account number to which the Insurer is to transfer the Insurance Indemnity After payout of Insurance Indemnity the Insurer obtains the right of subrogation i.e. the right to claim damage at the extent of paid Insurance Indemnity from the person, which is at fault for causing the damage. Unless the Insured, in the Insurance Indemnity claim application and before payout of Insurance Indemnity, has advised the Insurer in writing of other procedure, then also in case the Insurance Indemnity paid out by the Insurer covers only a part of the expenses of the Insured, the Insurer may exercise its right of subrogation irrespective of whether or not the Insured exercises the right to take action against the person who caused the damage. The Insurer and 13

14 the Insured may agree in writing on cooperation in recovery of damages from the person liable for the damages including on jointly bringing or maintaining action at court of law Additionally, the Insurer will reimburse the Insured for the following reasonable expenses supported by documentary evidence that the Insured has incurred in connection with the Insured Event: Cost of renting temporary accommodation means expenses of moving and renting a substantially equivalent home, which have been incurred if the Insured Event has resulted in the Insured Item being lost or damaged to such an extent that living there would be impossible or essentially complicated. The cost of renting temporary accommodation will be reimbursed for the period of time until renovation of Insured Item but in any event for not more than 12 (twelve) months after the date of decision to pay out Insurance Indemnity. Nevertheless, the Insurer will not reimburse for: any fine, late penalty, contractual penalty, or other sanctions; compensation for damages and expenses in connection with claims arising from breach of law, contract or right (unauthorized action). The provisions of this sub-paragraph do not apply to the expenses of the Insured rent of temporary residence under a relevant rent contract and moving expenses; expenses of maintenance and management of temporary residence and public utilities, as well as payments for receiving any services at the temporary accommodation (for example: gas, electricity, telephone, television payments); additional expenses for extension of, improvements to or any repairs in the temporary accommodation including if done under instructions of state or municipal institutions (officials); rent of household and other movable item Demolition and construction waste removal expenses. The Insurer will reimburse for expenses and costs of demolition of Insured Item, construction waste removal, and cleaning up Salvage costs and expenses of emergency services. The Insurer will reimburse for costs incurred by the Insured in preventing or mitigating further damage or loss. The Insurer will reimburse for such expenses even if the steps taken failed to give the expected result Cost of expert assessment. The Insurer will reimburse for expenses in connection with determination of the cause and extent of loss. The Insurer 14

15 will not reimburse for expenses incurred when the Insured engages own specialist Additional expert expenses. The Insurer will reimburse for expenses of experts for the Insured Item design work, construction supervision, permissions necessary for renovation of the Insured Item. The amount of reimbursement for such expenses is limited to LVL Travel expenses due to unexpected return from vacation. The Insurer will reimburse for travel expenses incurred when the Insured returns to Insurance Place due to a serious Insured Event earlier than expected from vacation, travel or business trip using such public transport or rented motor vehicle, which enables reaching the destination as soon as possible. A serious Insured Event means an Insured Event when the expected damage may exceed LVL 10,000 and the Insured s presence is required at the Insurance Place. The Insured will have a duty, before such compulsory returning to the Insurance Place, to get in touch with the Insurer and receive instructions where possible in given circumstances. If the Insured fails to comply with this duty despite it having been possible, the Insurer is entitled to reduce the expenses subject to indemnification by an amount, which was incurred by incompliance with that duty. The amount of reimbursement for such expenses is limited to LVL 3, Excess In calculation of Insurance Indemnity for each Insured Event, the Excess is always deducted from the amount of loss that is subject to reimbursement by the Insurer under the terms of Insurance Contract, and any loss below the Excess will not be reimbursed by the Insurer One largest Excess stipulated in the Insurance Contract will be applied to each Insured Event irrespective of the number of risks having occurred in the Insured Event Where loss is sustained as a result of repairs, construction or reconstruction at the Insured Item (real estate as stipulated in paragraph 2.2 of these Terms and Conditions), then a special Excess will be applied equivalent to 10% of the amount of loss, however not less than LVL 1, Where loss is sustained as a result of business activities at the Insured Item (real estate as stipulated in paragraph 2.2 of these Terms and Conditions), 15

16 the carrying out of which is not stipulated as an exception to performance of the Insurer s obligations contemplated in the Insurance Contract, then a special Excess will be applied equivalent to 10% of the amount of loss, however not less than LVL The Insurer will advise the Insured of application of the special Excess by delivering the decision on payout of Insurance Indemnity Implications of Incompliance with Duties of the Policyholder and/or Insured and/or with Safety Requirements The Insurer has the right to reduce or deny Insurance Indemnity if the Policyholder or the Insured, a family member living with them, or a person using the Insured Item with the permission from the Policyholder or the Insured on the basis of a contract or other legal relations performs any of the following acts: upon entry into or during Period of Insurance Contract, deliberate supplying of untruthful information or withholding of information about any material facts of the Insurance Contract that could have affected the origination or the extent of loss or terms of Insurance Contract, including the assessment of probability of Insured Risk; upon filing the claim application or upon notifying about loss, deliberate supplying of untruthful information about the Insured Event, about the circumstances of the origination or the extent of loss, or withholding of material information about the Insured Event, the about the circumstances of the origination or the extent of loss; violation or incompliance with a duty(-ies) or safety requirement(s) laid down in the Insurance Contract if such violation or incompliance has affected the origination or the extent of loss. In such an event, the Insurer has the right: to reduce the Insurance Indemnity by up to 20% (twenty per cent) in case of minor negligence; reduce or refuse the Insurance Indemnity in case of violation or incompliance in bad faith or with gross negligence Exchange of Information between Parties All and any notifications and applications to the Policyholder related to the Insurance Contract must be submitted in such a form and in such a manner as to enable the Insurer to identify the person giving the notification or the application. 16

17 The Insurer gives its notices and information to the Policyholder by post to the latest address notified by the Policyholder. In case of the Policyholder changing their mailing address without notifying the Insurer thereof, all notices will be deemed received on the 5 (fifth) day following the delivery of the relevant consignment to the post office. If the Policyholder has notified the Insurer of their address and telephone number, the Insurer has the right to send its notices to the address or phone number specified by the Policyholder, and in this connection the Policyholder is aware that cannot always be treated as a safe way of exchanging information and undertakes not to raise any objections in respect of information (including personal data of the Policyholder and the Insured and other confidential information) being sent by . The Insurer has the right to send information and notices related to the Insurance Contract via Internet Banking site of Swedbank AS, provided that Remote Banking Services Agreement is in force between the Policyholder and Swedbank AS and that such functionality exists on the Internet Banking site Personal Data Processing By entry into Insurance Contract, the Policyholder confirms their permission for the Insurer, acting in the capacity of the system controller, personal data recipient and personal data processor for entry into the Insurance Contract, quotation of insurance risks, and performance of obligations under the Insurance Contract, to process the Policyholder s and Insured s data, as well as warranting that the Policyholder has obtained the Insured s permission for the Insurer to process the Insured s data and personal identification (classification) codes in accordance with the Personal Data Protection Law and other applicable legislation in force in the Republic of Latvia. The Policyholder confirms to have been made aware of the fact that the Insurer, in events stipulated in applicable legislation, has a duty to supply information about the Policyholder to the Credit Register The Insurer causes any personal data to be processed in compliance with requirements of laws and regulations. The Insurer is entitled to receive personal data and information from third parties where necessary for performance of obligations under the Insurance Contract The Parties to the Insurance Contract undertake not to disclose to third persons any information arising from the Insurance Contract, except in the cases stipulated in legislation and the Insurance Contract. The Insurer is entitled to make the Insured s data and the Insurance Contract related information available to third parties if required so as part of performance of obligations under the Insurance Contract. 17

18 The administrator of the registered personal data processing system is Swedbank P&C Insurance AS, Reg. No , registered office Liivalaia 12, Tallinn, Estonia; the personal data processor is Swedbank AS, reg. No , registered office Balasta dambis 1a, Riga, Latvia The Policyholder and the Insurer have the right to demand, at any time, the correction, addition or modification of their personal data, as well as demanding provision of information about the personal data that is processed regarding this person Amendment of Insurance Contract The Insurer and the Policyholder may agree to amend the Insurance Contract by executing an annex to the Insurance Contract, unless stipulated otherwise in the Insurance Contract The Insurer may determine which Insurance Contract amendments may be made remotely via Swedbank AS online banking site. In such an event the Insurer will make it possible to confirm amendments to the Insurance Contract in electronic form on the Internet Banking site operated by Swedbank AS on the basis of the Remote Banking Services Agreement between the Policyholder and Swedbank AS Dispute Resolution Procedure Should the terms of Insurance Policy be at variance with the present Terms and Conditions, the terms of Insurance Policy will prevail The Parties will be guided by legislation of the Republic of Latvia in the formation and performance of the Insurance Contract All matters and legal relations between the Parties not provided for and contemplated in the Insurance Contract shall be resolved in accordance with applicable laws and regulations in force in the Republic of Latvia In case any provision of the Insurance Contract is deemed invalid due to it being at variance with applicable legislation, it will not constitute grounds to invalidate the entire Insurance Contract or other provisions of the Insurance Contract Headings in the Insurance Terms and Conditions are for ease of reference only and may not be used in construction of provisions of Insurance Terms and Conditions. 18

19 Unless defined or explained in these Terms and Conditions, the terminology used in the Insurance Terms and Conditions must be treated as elements of the legal system of the Republic of Latvia and construed according to its sources All matters not contemplated in the Insurance Contract, as well as any dispute, disagreement or claim arising out of the Insurance Contract, affecting the Insurance Contract, or the amendment, breach, termination, lawfulness, validity, or interpretation of the Insurance Contract will be resolved through negotiation. In case no resolution is reached through negotiation, the dispute in question will be referred to a law court in accordance with applicable legislation in force in the Republic of Latvia. 19

20 2. Property insurance This section of the Insurance Terms and Conditions is applicable and should be construed in conjunction with section 1 (General Terms) 2.1. Value of Insured Item and Sum Insured Value of Insured Item means the value of the covered interest in case of complete ruination of the Insured Item at the time of occurrence of Insured Event. The Value of Insured Item means an amount of money necessary for: Reconstruction of real estate (Insured Item) at the Insurance Place to a condition that allows performance of the former functions to the extent that the Insured Item was performing those functions prior to occurrence of Insured Event, without regard to the physical wear and tear, replacement of the damaged item of Home (Insurance Item) with a brand new unused object, which, in terms of its functionality and application, is as similar as possible to the lost object of the Insured Item and be in the same price range (for instance, a later version of the same model) In this section, the Insured Item means the real estate and home contents stated on the Insurance Policy Sum Insured means amount of money, at which the Insured Item is covered and up to which, the Insurance Indemnity will be paid. The Sum Insured will not be reduced if an Insurance Indemnity is paid out during Period of Insurance Contract, except in case of complete ruination or loss of the Insured Item Complete ruination means condition of the Insured Item following Insured Event when the Insurer, or experts engaged by the Insurer, have found that repairing is technically impossible or economically unsound i.e. in cases when the expected cost of repairing the Insured Item exceeds 70% of the value of the Insured Item at the time of occurrence of the Insured Event Over-insurance means a situation when the Sum Insured of the Insured Item exceeds the value of the Insured Item under one or several valid Insurance Contracts. In case of over-insurance, upon occurrence of Insured Event the Insurance Indemnity payable may not exceed the Value of Insured Item Under-insurance means a situation when the Sum Insured is lower than the Value of Insured Item. In case of under-insurance, the Insurer will reimburse for loss in proportion to the relation of the Sum Insured to the Value of Insured Item, less the Excess. 20

21 2.2. Real Estate Insurance Insured Item means, for the purposes of this section, the real estate (except land) specified in the Insurance Policy Building, Outbuilding, Sauna, Part of Building, Apartment to the extent of the owner s title Building means a structure with walls, roof and interior space, which is permanently attached to the ground with all of its essential parts enabling the functioning and use of the structure i.e. items, which are permanently built-in / attached to the structure or any part thereof and which cannot be detached without altering functionality (including integrated (e.g. fastened by glue or bolts) decoration materials and sanitary ware). A building, or any part thereof, at the stage of construction and before commissioning is called a Building under Construction. A Building under Construction where the main supporting elements (walls, coverings, roof) are completed, where windows and doors are installed, and if all other openings, which could enable unauthorized third parties to enter the building under construction without using any technical aids, have been firmly closed, is insured just like a Building. Materials, which are not built in, tools and construction equipment are excluded from such insurance. In a building under construction where the supporting elements are not completed, windows and doors are not installed, only those materials, which are built in / attached permanently to the building under construction, are insured. Excluded from insurance are non built-in materials and movable property (tools or home contents) irrespective of whether or not home contents insurance is stated on the Insurance Policy Outbuilding means a Building, which is not used for residential purposes and is used for household needs. Examples of an Outbuilding are a cattle shed, granary, hay barn or garage. Outbuildings are insured only if stated so in the Insurance Policy Sauna means a Building used for household needs. Saunas are insured only if stated so in the Insurance Policy Part of a Building means premises transferred for use to the Insured under the real estate common use agreement in the Building, in which the Insurer holds legal share. Part of a Building, under Insurance Terms and Conditions, is insured as an Apartment. Parts of the Building designated for common use by joint owners are insured in proportion to the size of the Insured s legal share in a joint property Apartment means in an apartment building where apartments are owned by a number of owners, each owner s individual property together with the relevant legal share in a joint property. An individual property means a space or a set of spaces in an apartment building, which is functionally segregated and is delimited from the rest of the building by constructional means and is marked in the building s cadastral surveying file as an apartment, non-residential 21

22 space or artist s workshop together with all of its essential parts enabling the functioning and use of the structure. The parts of the apartment also include utility networks and communication lines up to the standpipes in the joint property, the elements of technical facilities without which the elements of the jointly owned part of the residential building can function independently, as well as balconies, loggias, terraces that are an element of the apartment in question. Included in the individual property insurance are the parts of the residential building in joint use by apartment owners in proportion of the total area of the individual property to the total area of all individual properties in the residential building Facilities means objects, which are not registered with any real estate title registries, but are permanently attached to land and are at the Insurance Place where the Building, Part of the Building, Apartment or Sauna is located. The total construction space area of one such Facility does not exceed 10 m 2, for example barriers, wells, fences, shelters, outdoor lighting equipment, flagpoles, playground constructions. Insurance of a Building, a Part of the Building, an Apartment or a Sauna includes insurance of Facilities. Facilities are insured in proportion to the size of the Insured s legal share in a joint property. The maximum Insurance Indemnity for damage to or loss of Facilities (including cases where the Insured has title to a part of Facilities) is limited to LVL 10, Insurance of Insured Item excludes: floor covering materials that are not integrated (e.g. fastened by glue or bolts); technical and utility systems, fountains, pools, reservoirs, pipes outside the Insured Item; earth, plants, animals; sculptures, sports grounds, roads, road surface, paved areas or footpaths; greenhouses; ponds, ditches, bridges, piers, breakwaters, anchorages, buildings built on water; buildings or parts of buildings, which are in poor condition, which have been declared unfit for living or use or which have been declared as illegally erected, insofar as the aforesaid is related to emergence or extent of Insured Event; 22

23 movable property inside the Insured Item (e.g. refrigerators, washing machines, televisions sets, furniture, incl. integrated furniture and kitchen appliances, curtains, household items, lighting equipment, carpets, clothing), which can be insured under home contents insurance Cost of changing locks. The Insurer will indemnify for the cost of a new set of locks and the installation expenses, as well as the cost of opening the locks (doors) by locksmith, if the keys to the Insured Item have been lost or were stolen or otherwise removed without consent by a third party Principles of calculating amount of loss and indemnification The Insured is entitled to choose whether: the Insured Item will be reconstructed, or the Insured Item will not be reconstructed The amount of loss subject to indemnification by the Insurer under the Insurance Contract is calculated as follows: in case of reconstruction of the Insured Item, the amount of loss equals the value of the Insurance Item; Reconstruction of the Insured Item must be completed within a maximum of 2 (two) years of the date of the Insurer s decision to pay out the Insurance Indemnity. The Insurer is entitled to choose the service provider who reconstructs the Insured Item. The Insured may, subject to prior written approval from the Insurer, select the person, who will carry out the reconstruction works at the Insured Item. If the Insured wishes that the reconstruction of the Insured Item be performed by a service provider selected by the Insured and that service provider s reconstruction works estimate exceeds the reconstruction estimate offered by the service provider selected by the Insurer, then the Insurer has the right to calculate the Insurance Indemnity on the basis of the reconstruction tender which is lower The Insurer s instructions must be complied with in reconstruction of the Insured Item. In case of Insurance Indemnity in the form of services to the Insured, the Insurer will pay for the services to the person performing reconstruction of the Insured Item according to a separate agreement on reconstruction of Insured Item, while amount equivalent to Excess will be paid to the service provider by the Insured The Insurer has the right to split payment of Insurance Indemnity in two parts. The first part of Insurance Indemnity, which is calculated pursuant to paragraph below, is paid out after adoption of the Insurer s decision to pay out the Insurance Indemnity, while the remaining part of the Insurance 23

24 Indemnity, which is equivalent to wear and tear of the Insured Item before the Insured Event occurred, is paid out when the Insured proves that the first part of Insurance Indemnity paid out has been utilized for reconstruction of the Insured Item in compliance with the Insurer s instructions If reconstruction of the Insured Item has not started within 2 (two) years of the date of the Insurer s decision to pay out the Insurance Indemnity, the Insurer will have a duty to return to the Insurer the amount equivalent to wear and tear of the Insured Item before the Insured Event occurred If reconstruction of the Insured Item is not carried out, then the amount of loss is calculated as the value of the Insured Item less the amount equivalent to wear and tear of the Insured Item before the Insured Event occurred If, however, the Insured, following receipt of the Insurance Indemnity, does reconstruct the Insured Item within 2 (two) years of the date of the Insurer s decision to pay out the Insurance Indemnity, the Insurer will, after verifying that the paid part of Insurance Indemnity has been utilized for reconstruction of the Insured Item, pay out the part of Insurance Indemnity equivalent to wear and tear of the Insured Item before the Insured Event occurred Home Insurance Home as the Insured Item means, in this section, the movable property at the insured real estate stated on the Insurance Policy the home contents, which belongs to the owner of the real estate or to other persons living on a permanent basis at the Insurance Place with the consent of the owner or to persons living at the Insurance Place on other legal grounds and which is located in the Insurance Place. The Insured Item Home is insured only when home contents is included in the Insurance Policy and a separate Sum Insured is indicated in the Insurance Policy for insurance of home contents Home contents is insured as a totality of items only. No list of insured items is compiled in insurance of Home, and, instead, a total Sum Insured is fixed at which Home is insured. Therefore, the Insured Item will be insured at the Sum Insured of the totality of items as stated on the Insurance Policy, subject to the following restrictions: unless stated otherwise in the Insurance Policy, the maximum amount of indemnification for electronics is 25 % of the Sum Insured applicable to Home. Electronics include but are not limited to TV sets, audio and video equipment, computers, cameras, kitchen and household equipment, refrigerators, washing machines, etc.; 24