PUBLIC LIABILITY POLICY

Transcription

1 PUBLIC LIABILITY POLICY A. INTRODUCTION A1. WELCOME Welcome to NZI. Thank you for selecting us as your insurer. A2. POLICY INDEX PART DESCRIPTION PAGE A. INTRODUCTION... 1 B. DEFINITIONS... 1 C. OUR AGREEMENT TO INSURE... 2 D. WHAT YOU ARE INSURED FOR... 2 E. WHAT YOU ARE NOT INSURED FOR... 9 F. HOW MUCH WE WILL PAY G. CLAIMS CONDITIONS H. GENERAL CONDITIONS A3. DEFINED WORDS UNDER THIS POLICY Certain words in this policy have a specific meaning. These words are: (a) shown in bold type throughout this policy, and (b) listed and defined in the part below called B. DEFINITIONS. The definitions apply to the plural and any derivatives of the bolded words. For example, the definition of accident also applies to the words accidentally, accidental and accidents. We have sometimes used examples to make the definitions clearer. These examples, which are printed in italics, do not affect or limit the meaning of the definitions. If you are in any doubt about what a definition means, we will be happy to explain it to you. B. DEFINITIONS accident annual period bodily injury business excess liable North America occurrence period of insurance products An event or omission that is unexpected and unintended from your point of view. The period of insurance, but no more than 12 months. HOWEVER, if: (a) you pay the premium monthly or quarterly, or (b) the period of insurance is for more than 12 months, the annual period is any one 12 month period calculated from the date this policy first started, and consecutively thereafter. The accidental death of, or accidental bodily injury to any person. This includes sickness, disease, disability, shock, fright, mental anguish or mental injury. The business described in the schedule. This includes: social clubs, (ii) social sporting clubs, (iii) superannuation funds, that are formed by you for the employees of that business. This is the amount of any claim that you must pay. The amount of the excess is shown in either the schedule or in this policy wording. Legally liable according to the law of New Zealand. The United States of America and/or Canada (including their dependencies, mandated territories and protectorates). An event (including continuous or repeated exposure to conditions), or series of events, that: (a) is connected with the business, and (b) results from one source or original cause. The period you are insured for. This is shown in the schedule. Any of the following: (a) any goods or products that you sell, supply, distribute, manufacture, construct, erect or install, including any item that is used to contain those goods/products (provided the item is not a vehicle); (b) that part of any tangible property that you work on, BUT NOT any other separate component of that property. PUBLIC LIABILITY POLICY Wording PUB0904 PAGE 1

2 B. DEFINITIONS (continued) products territory property damage repair schedule strict liability offence vehicle we you New Zealand and any other country that is listed in the schedule under the heading PRODUCTS TERRITORY. The accidental physical loss or accidental physical damage to any tangible property, including its subsequent loss of use. Repair, alter, renovate, service or install. The most recent Schedule to this policy that we issued to you. A type of offence at law, where a conviction can be obtained against you without the normal requirement of proof of your intention to commit the offence. Any type of machine on wheels, or caterpillar tracks, that is made or intended to be propelled by its own power, as well as anything towed by the machine. NZI, a business division of IAG New Zealand Limited. We may also use the words us, our or company to describe NZI, a business division of IAG New Zealand Limited. Any person or entity named in the schedule as INSURED. This includes the following, provided they are living or based in New Zealand: (a) any subsidiary company, or joint venture, or any company over which active management is exercised; and (b) any director, executive officer, employee or partner of: the person or entity named in the schedule, or (ii) any entity referred to in (a) above, but only while acting in that capacity; and: (c) any office bearer or member of a social club, social sporting club or your employee superannuation fund that has been formed by the person or entity named, but only while acting in that capacity, or in connection with the activities of the club or fund; and (d) any new organisation that the person or entity named in the schedule acquires through consolidation, merger, purchase of the assets, or assumption of control and active management, PROVIDED THAT: the new organisation is acquired during the period of insurance, and (ii) the acquisition is notified to us within 90 days after it takes effect; and (e) any principal who is party to a contract with the person or entity named in the schedule, BUT ONLY for the principal s vicarious liability that arises out of that persons or entity s actions under that contract. We may also use the word insured to describe you. C. OUR AGREEMENT TO INSURE C1. INSURANCE AGREEMENT You agree to pay us the premium described in the schedule. In exchange, we agree to insure you as set out in this policy. D. WHAT YOU ARE INSURED FOR D1. PUBLIC LIABILITY We will indemnify you against all sums that you become liable to pay arising from bodily injury and/or property damage, PROVIDED THAT: the injury/damage occurs during the period of insurance, and (ii) the injury/damage results from an occurrence anywhere in New Zealand. D2. DEFENCE COSTS We will indemnify you for all legal costs and expenses that you incur under Part D1, Part D3, and any item in Part D4 that is shown in the schedule, PROVIDED THAT: (a) they are incurred by you in defending any legal action (or threat of legal action) brought against you, and (b) they arise from alleged liability that would be insured under Parts D1, D3 and D4, if proven, and (c) they are properly and reasonably incurred. We will meet these costs even if the legal action seems groundless. If you are unsure whether we will pay your costs, please consult us before you start spending any money. D3. AUTOMATIC POLICY EXTENSIONS In addition to the cover under Parts D1and D2 (above), we also provide extra cover for additional items and additional costs. The following Parts D3(a) to D3(d) detail this extra cover. (a) TENANT S LIABILITY Indemnity We will indemnify you against all sums that you become liable to pay arising from property damage, PROVIDED THAT: PAGE 2 PUBLIC LIABILITY POLICY Wording PUB0904

3 D. WHAT YOU ARE INSURED FOR (continued) (ii) the damage occurs during the period of insurance, and the damage results from an occurrence anywhere in New Zealand, and the damage is caused by fire or explosion, and the damage is in connection with any premises occupied, but not owned, by you. General exclusions that do not apply Exclusion E3(c) does not apply to this extension. (b) (c) EMPLOYEES VEHICLES Indemnity We will indemnify you against all sums that you become liable to pay arising from property damage, PROVIDED THAT: the damage occurs during the period of insurance, and the damage results from an occurrence anywhere in New Zealand, and the damage is to a vehicle in the possession of an employee or agent of yours, in a private capacity, and the vehicle is not owned by you. (ii) General exclusions that do not apply Exclusions E3(c) and E4(b) do not apply to this extension. CAR PARKS Indemnity We will indemnify you against all sums that you become liable to pay arising from property damage, PROVIDED THAT: the damage occurs during the period of insurance, and the damage results from an occurrence anywhere in New Zealand, and the damage arises in a car park that you operate. (ii) General exclusions that do not apply Exclusions E3(c) and E4(b) do not apply to this extension. (d) OVERSEAS VISITS Indemnity We will indemnify you for the same liability covered under Part D1 (above), PROVIDED THAT: the liability arises from an occurrence anywhere in the world (please note that cover provided in North America differs - see below), and the liability arises from you engaging in your business activities, and the liability occurs while you are on an overseas business trip, and you are a New Zealand resident and normally live in New Zealand at the time of the occurrence. (ii) Limitations on North America For occurrences in North America, you are NOT insured for liability: in connection with pollution or contamination of any kind; or in connection with the activities of your overseas: - sales agents, or - vendors, or - representatives; or if you are directly represented in either country, or represented by any parent or subsidiary company or joint venture in North America. (iii) Special conditions The following conditions only apply to this extension: Liable shall mean Legally liable according to the law that applies in the country or state in which the occurrence takes place. Defence Costs are included in the Sum Insured and are not in addition to it. PUBLIC LIABILITY POLICY Wording PUB0904 PAGE 3

4 D4. OPTIONAL POLICY EXTENSIONS In addition to the cover under Parts D1, D2 and D3 (above), we also offer some additional optional policy extensions. The following Parts D4(a) to D4(l) detail these optional policy extensions. Cover under Parts D4(a) to D4(l) ONLY APPLY where the extension is shown in the schedule. (a) PRODUCTS / SERVICES LIABILITY Indemnity We will indemnify you against all sums that you become liable to pay arising from bodily injury and/or property damage, PROVIDED THAT: the injury/damage occurs during the period of insurance, and the injury/damage results from an occurrence in the products territory, and the injury/damage is in connection with products that are: - no longer in your possession or control, and/or - not being worked on by you. (ii) Definitions Where any country other than New Zealand is listed as included in the products territory, liable shall mean: Legally liable according to the law that applies in the country or state in which the occurrence takes place. (iii) Geographic limitations There is no indemnity under this policy for liability: connected with products in North America; that arises anywhere outside of New Zealand where you (or your controlling company) are: - domiciled, or - represented by a subsidiary branch or office, in that country or territory. (iv) Special exclusions Agents There is no indemnity under this policy for liability connected with any agent of yours. Products used in aircraft There is no indemnity under this policy for liability connected with products used in the construction of, or otherwise installed in, any aircraft or aerial device. Product recalls There is no indemnity under this policy for the cost of the: - recall or inspection, or - repair or replacement, of products that are withdrawn from the market (or from use) because of any known or suspected defect or deficiency. (v) General exclusions that do not apply Exclusion E12 DOES NOT apply to this extension. (vi) Sum Insured/aggregate limit The Sum Insured mentioned in Part F1 is our total liability to you under this extension for all occurrences, during an annual period, connected with products after they cease to be in your control or possession. Defence Costs are included in the Sum Insured and are not in addition to it. (b) BAILEE S LIABILITY Indemnity We will indemnify you against all sums that you become liable to pay arising from property damage, PROVIDED THAT: the damage occurs during the period of insurance; and the damage is to property: - in your control or possession (and not owned, hired, leased or rented by you), an - at premises that you own or occupy; and the damage results from an occurrence in New Zealand; and the damaged property is NOT: - land or buildings, or - vehicles or internal combustion engines (or their accessories or fittings). PAGE 4 PUBLIC LIABILITY POLICY Wording PUB0904

5 D. OPTIONAL POLICY EXTENSIONS (continued) (ii) General exclusions that do not apply The following exclusions do not apply to this extension: (iii) Exclusion E3(c), and Exclusion E3(b)(ii) does not apply to faulty or defective storing of any product. Aggregate limit and excess Our total liability to you under this extension for all occurrences, during an annual period, is the Sum Insured shown on the schedule for this extension. An excess of $1,000 applies for each occurrence under this extension, unless a different amount is shown in the schedule. (c) MOTOR SERVICE AND REPAIR LIABILITY Indemnity We will indemnify you against all sums that you become liable to pay arising from bodily injury and/or property damage, PROVIDED THAT: the injury/damage occurs during the period of insurance; and the injury/damage results from an occurrence in New Zealand; and the injury/damage results from repairs by you to any: - vehicle, or - internal combustion engine, or - watercraft capable of being transported by trailer and not exceeding eight metres in length, or - any accessory or fitting of any of the above; and where the damage is to property, that property is in your control or possession (and not owned, hired, leased or rented by you). (ii) Limitations The liability cover under this extension: DOES NOT include the costs of rectifying, repairing or replacing errors or defects in your work or material, but DOES include any resultant property damage arising from those errors or defects. (iii) Special exclusions There is no cover under this extension for liability where any vehicle is: Unsafe vehicles being driven in an unsafe condition that: - causes or contributes to the occurrence, and - you or any authorised driver, is aware of, or should have been aware of, by the exercise of reasonable diligence; Unlicensed drivers being driven by you, or by another person who has your permission, unless: - the driver holds a valid drivers licence for that class of vehicle, and - all licence conditions are being met. HOWEVER, this Unlicensed Drivers section WILL NOT apply if: - that driver can and does obtain such a licence without any further driving tests, or - the vehicle is being used to teach a learner to drive and all legal requirements are being met; Other vehicle parts one that includes another component, (for example, a crane) and: - the component requires a licensed operator to operate it, and - the component is being operated by you, or by any person who has your permission, when the operator is not a person with such a licence. HOWEVER, this Other Vehicle Parts exclusion WILL NOT apply if the component in question is being used to teach a learner and all legal requirements are being met; Excess alcohol being driven by you, or by another person who has your permission who: - has a proportion of alcohol in their blood or breath which exceeds the legal limit while using a vehicle, - is under the influence of any other intoxicating substance or drug, - fails or refuses to: PUBLIC LIABILITY POLICY Wording PUB0904 PAGE 5

6 D. OPTIONAL POLICY EXTENSIONS (continued) - provide any sample, or - undergo any test, required by law; Excess loads being loaded, or has been loaded, in excess of the manufacturer s specifications. (iv) General exclusions that do not apply Exclusions E3(b), E3(c), E4(a)(ii), E4(b), E5(b) and E12 do not apply to this extension. (v) Aggregate limit and excess Our total liability to you under this extension for all occurrences, during an annual period, is the Sum Insured shown on the schedule for this extension. An excess of $1,000 applies for each occurrence under this extension, unless a different amount is shown in the schedule. (d) WATERCRAFT REPAIR LIABILITY Indemnity We will indemnify you against all sums that you become liable to pay arising from bodily injury and/or property damage, PROVIDED THAT: the injury/damage occurs during the period of insurance, and the injury/damage results from an occurrence in New Zealand, and the injury/damage results from repairs by you to any: - watercraft not exceeding: G.R.T., or - nine metres in length, or - marine internal combustion engines, or - any accessory or fitting of any of the above, and where the damage is to property, that property is in your control or possession (and not owned, hired, leased or rented by you). (ii) Limitations The liability cover under this extension: DOES NOT include the costs of rectifying, repairing or replacing errors or defects in your work or material, but DOES include any resultant property damage arising from those errors or defects. (iii) General exclusions that do not apply Exclusions E3(b), E3(c), E4(a)(ii), E5(b) and E12 do not apply to this extension. (iv) Aggregate limit and excess Our total liability to you under this extension for all occurrences, during an annual period, is the Sum Insured shown on the schedule for this extension. An excess of $1,000 applies for each occurrence under this extension, unless a different amount is shown in the schedule. (e) LANDLORD S LIABILITY We will indemnify you against all sums that you become liable to pay arising from bodily injury and/or property damage, PROVIDED THAT: the injury/damage occurs during the period of insurance, and (ii) the injury/damage results from an occurrence in New Zealand, and (iii) the injury/damage is in connection with the legal ownership, but not physical occupation, of any premises by you. (f) TENANT S LIABILITY EXTENDED COVER Indemnity We will indemnify you against all sums that you become liable to pay arising from bodily injury and/or property damage, PROVIDED THAT: the damage occurs during the period of insurance, and the damage results from an occurrence anywhere in New Zealand, and the damage is in connection with any premises occupied, but not owned, by you. (ii) General exclusions that do not apply Exclusion E3(c) does not apply to this extension. PAGE 6 PUBLIC LIABILITY POLICY Wording PUB0904

7 D. OPTIONAL POLICY EXTENSIONS (continued) (g) REMOVAL OF SUPPORT LIABILITY Indemnity We will indemnify you against all sums that you become liable to pay arising from bodily injury and/or property damage, PROVIDED THAT: (ii) the injury/damage occurs during the period of insurance, and the injury/damage results from an occurrence in New Zealand, and the injury/damage is in connection with: - vibration of, or - removal of the support of, or - weakening of the support of, or - interference with the support of, land or buildings. General exclusions that do not apply Exclusion E7 does not apply to this extension. (iii) Defence Costs Defence Costs are included in the Sum Insured and are not in addition to it. (iv) Aggregate limit and excess Our total liability to you under this extension for all occurrences, during an annual period, is the Sum Insured shown on the schedule for this extension. An excess of $1,000 applies for each occurrence under this extension, unless a different amount is shown in the schedule. (h) FOREST AND RURAL FIRES ACT Indemnity We will indemnify you against all sums that you become liable to pay for: costs and losses recoverable from you under Section 43 of the Forest and Rural Fires Act 1977, and costs agreed (or levies imposed) and apportioned to you by a fire authority under Section 46 of the Forest and Rural Fires Act 1977, PROVIDED THAT: the costs are in connection with a fire, or threat of fire, that occurs during the period of insurance, and the costs result from an occurrence within New Zealand. Indemnity under this extension is provided whether or not property damage occurs. (ii) General exclusions that do not apply Exclusion E8 does not apply to this extension. (iii) Limit of Indemnity Our total liability to you under this extension for all occurrences, during an annual period, is the Sum Insured shown on the schedule for this extension. (j) MECHANICAL PLANT Indemnity We will indemnify you against all sums that you become liable to pay arising from bodily injury and/or property damage, PROVIDED THAT: the injury/damage occurs during the period of insurance, and the injury/damage results from an occurrence in New Zealand, and the injury/damage is in connection with plant and machinery that is: - carried on a vehicle, and - being used by you, and - being operated on its own, independent of the vehicle. (ii) General exclusions that do not apply Exclusions E3(c) and E4(b) do not apply to this extension. MOBILE CRANES Indemnity We will indemnify you against all sums that you become liable to pay arising from bodily injury and/or property damage, PROVIDED THAT: the injury/damage occurs during the period of insurance, and PUBLIC LIABILITY POLICY Wording PUB0904 PAGE 7

8 D. OPTIONAL POLICY EXTENSIONS (continued) (ii) the injury/damage results from an occurrence in New Zealand, and the injury/damage is in connection with your use of a mobile crane(s) that is: - carried on a vehicle, and - being used by you, and - being operated on its own, independent of the vehicle. General exclusions that do not apply Exclusions E3(c) and E4(b) do not apply to this extension. (k) PROSECUTION DEFENCE COSTS (l) Indemnity We will indemnify you against all legal costs and expenses you incur defending a prosecution for a strict liability offence, PROVIDED THAT: the liability arises from bodily injury and/or property damage that occurs during the period of insurance; and the injury/damage results from an accidental occurrence in New Zealand; and the prosecution is brought against you under any of these Acts: - Health and Safety in Employment Act 1992, or - Building Act 1991, or - Resource Management Act 1991; and the prosecution DOES NOT result from: - an intentional or reckless breach by you of the above Acts, or - a dishonest, fraudulent or malicious act or omission by you; and the costs are properly and reasonably incurred. (ii) Special Conditions The following Conditions apply to this extension: If the defence of the prosecution is unsuccessful this insurance DOES NOT COVER any appeal, or further appeal (against either conviction or sentence), unless we give our written consent (we will not unreasonably withhold such consent). You must comply with any lawful notice that you receive from an appropriate authority under the following Acts: - Health and Safety in Employment Act 1992, or - Building Act 1991, or - Resource Management Act 1991, and within the timeframe specified on the notice (if no timeframe is given, then you must comply within a reasonable time). (iii) Limit of indemnity Our total liability under this extension for each occurrence is $100,000, unless a different amount is shown in the schedule. EXEMPLARY DAMAGES Indemnity Whenever this cover applies, this policy is amended as follows: 1. The policy exclusions are amended as follows: EXCLUSION E9 is deleted and replaced with the following: E9. There is no indemnity under this policy, for: any fine or penalty imposed on you, and any punitive or exemplary damages awarded against you by a Court that is other than a New Zealand Court; and 2. A new exclusion is added: E14. EXEMPLARY DAMAGES There is no indemnity under this policy, for liability for punitive or exemplary damages in connection with a dishonest, fraudulent or malicious act or omission by you. (ii) Limit of indemnity Our total liability under this extension is the lesser of: the total Sum Insured for Public Liability, shown in the schedule, or $1,000,000. PAGE 8 PUBLIC LIABILITY POLICY Wording PUB0904

9 E. WHAT YOU ARE NOT INSURED FOR E1. LIABILITY BY AGREEMENT There is no indemnity under this policy for liability created by an express term of a contract, where that liability exceeds what: (a) the common law, and (b) the statute law imposes on contracting parties in those circumstances. E2. BODILY INJURY TO EMPLOYERS AND FAMILY There is no indemnity under this policy for liability for bodily injury that: (a) arises out of, and in the course of, employment of any person by you, or (b) is sustained by a member of your family ordinarily living with you. E3. PROPERTY DAMAGE / FAULTY WORKMANSHIP EXCLUDED There is no indemnity under this policy for liability for property damage to: (a) property owned by you, or (b) any product where liability is connected with any fault or defect: in the product, or (ii) in work done to the product Exclusion E3(b) does not apply to liability for resultant property damage (if any) to other separate property or parts, or (c) property in your control or possession (except for vehicles in a car park operated by you). E4. VEHICLES / AIRCRAFT / WATERCRAFT (a) AIRCRAFT/HOVERCRAFT/WATERCRAFT There is no indemnity under this policy for liability connected with the ownership, possession, repair, operation or use by you of any: is registered for road use, or (ii) should have been registered for road use when the bodily injury or property damage occurred. Exclusion E4(b) does not apply, however, to the loading and unloading of a vehicle, or the bringing and taking away of a load from a vehicle. (b) VEHICLES There is no indemnity under this policy for liability connected with the ownership, possession, repair, operation or use by you of any vehicle that: is registered for road use, or (ii) should have been registered for road use when the bodily injury or property damage occurred. Exclusion E4(b) does not apply, however, to the loading and unloading of a vehicle, or the bringing to and taking away of a load from a vehicle. E5. DEFECTS AND ERRONEOUS ADVICE There is no indemnity under this policy for liability connected with: (a) goods or products or product parts that are faulty or defective in: formula or pattern, or (ii) design or plan, or (iii) specification, (b) any error or omission in: advice given by you unless it is incidental to goods or products you sell or repair, or (ii) medical treatment administered by you, or anyone on behalf of you. Exclusion E5(b) does not apply, however, to any employee of yours acting in a professional medical capacity for you. E6. POLLUTION There is no indemnity under this policy for liability connected with pollution or contamination (including any removal, neutralising, or cleaning up costs), UNLESS the pollution or contamination: (a) occurs during the period of insurance, and (b) is caused by a sudden, unintended, unexpected occurrence during the same period of insurance. PUBLIC LIABILITY POLICY Wording PUB0904 PAGE 9

10 E. WHAT YOU ARE NOT INSURED FOR (continued) E7. INTERFERENCE WITH LAND OR BUILDINGS E8. FOREST AND RURAL FIRES ACT E9. FINES / EXEMPLARY DAMAGES There is no indemnity under this policy for liability connected with: (a) vibration of, or (b) removal of the support of, or (c) weakening of the support of, or (d) interference with the support of, land or buildings. There is no indemnity under this policy for liability arising under the Forest and Rural Fires Act There is no indemnity under this policy for: (a) any fine or penalty imposed on you, or (b) any punitive or exemplary damages awarded against you. E10. ASBESTOS There is no indemnity under this policy for liability connected with any of the following: (a) the mining, processing, transporting, distributing or storing of asbestos, (b) the manufacture or processing of materials that contain asbestos, (c) any process of decontamination, treatment or control of asbestos, (d) the presence of asbestos in any building or structure, (e) pollution or contamination by asbestos. E11. WAR / CONFISCATION / NUCLEAR There is no indemnity under this policy for liability connected with any of the following: (a) war, invasion, act of foreign enemy, hostilities or warlike operations (whether war is declared or not), civil war, mutiny, rebellion, revolution, insurrection, military or usurped power, (b) confiscation, nationalisation, requisition or destruction of, or damage to, property by order of government, public or local authority, (c) nuclear weapons material, (d) ionising radiations or contamination by radioactivity from any nuclear fuel, or from any nuclear waste from the combustion of nuclear fuel. Solely for the purpose of this exclusion, combustion shall include any self-sustaining process of nuclear fission. E12. PRODUCTS There is no indemnity under this policy in connection with any products: (a) while the products are: in the possession of, or (ii) being worked on, by you or an employee of yours; or (b) where the products are sold or supplied from a cafeteria that you operate primarily for your employees or for your visitors. This exclusion DOES NOT apply to liability for resultant property damage (if any) to other separately identifiable property or parts. E13. OVERSEAS JUDGMENTS E14. BUILDING DEFECTS There is no indemnity under this policy for: (a) liability, and (b) costs and expenses of litigation (leading to a judgment), where a judgment has been determined by any Court other than a New Zealand Court, UNLESS that judgment is enforced by a New Zealand Court. There is no indemnity under this policy for loss, damage, liability, prosecution or expense of any type connected in any way with a building or structure being affected by: (a) moisture or water build-up or the penetration of external moisture or water, or (b) the action or effects of mould, fungi, mildew, rot, decay, gradual deterioration, micro-organisms, bacteria, protozoa or any similar or like forms, that is caused directly or indirectly by: non-compliance with the New Zealand Building Code, or (ii) faulty design or faulty specification, including but not limited to faulty sequence, procedure or programme, or (iii) faulty materials, or (iv) faulty workmanship when the building or structure was constructed, manufactured, altered, repaired, renovated or maintained. This exclusion does not apply however to bodily injury or property damage that is caused by or directly arises from the leakage of internal pipes, internal water systems or internal cisterns. PAGE 10 PUBLIC LIABILITY POLICY Wording PUB0904

11 F. HOW MUCH WE WILL PAY F1. MAXIMUM AMOUNT PAYABLE The most we will pay you under: (a) Parts D1, D3 and D4(a) is for each occurrence, the Sum Insured shown in the schedule for Public Liability, (b) Parts D4(b), D4(c), D4(d), D4(g), D4(h), D4(k) and D4(l) is the amount specified in each part as the Limit of Indemnity or Aggregate Limit, (c) All other Parts is for each occurrence, the Sum Insured shown in the schedule for that item. F2. DEFENCE COSTS Defence Costs will be paid in addition to the limit shown in Part F1 above, except for: (a) Part D3(d) (Overseas visits), and (b) Part D4(a) (Products/services liability), and (c) Part D4(g) (Removal of support liability). F3. EXCESS An excess of $250 will be deducted from the amount payable for each occurrence, unless stated differently in the schedule or any part of this policy. G. CLAIMS CONDITIONS G1. WHAT YOU MUST DO (a) TELL US ABOUT THE CLAIM If you become aware of any situation that is likely to give rise to a claim, you must: tell us immediately, and (ii) take all reasonable steps to minimise the claim and avoid any further claim arising. (b) IF A CLAIM IS MADE AGAINST YOU If any other party claims against you or indicates they intend to claim against you, you must: tell us and ask them to contact us, and (ii) give us full details of all potentially responsible parties. G2. WHAT YOU MUST NOT DO (a) NO ADMISSION OF LIABILITY You must NOT: admit you are liable, or (ii) do or say anything that may prejudice our ability to: defend the claim against you, or take recovery action in your name. G3. HOW TO CLAIM To claim under this insurance you must: (a) complete our Claim Form in full; and (b) give us free access to examine and assess the claim, and (c) send any relevant correspondence or Court documents to us as soon as possible; and (d) authorise the disclosure to us of any personal information about you that is: held by any other parties, and (ii) relevant to the policy or claim; and (e) provide us with any other information or assistance we reasonably require at any time, and (f) if we request it: give us a statutory declaration to confirm the claim, and/or (ii) be examined under oath by any person we nominate. PUBLIC LIABILITY POLICY Wording PUB0904 PAGE 11

12 G. CLAIMS CONDITIONS (continued) G4. FRAUD If your claim is dishonest or fraudulent in any way, we may: (a) decline your claim either in whole or in part, or (b) declare either this policy or all policies you have with us to be unenforceable from the date of the dishonest or fraudulent act. This is at our sole discretion. G5. SUBROGATION Subrogation means that we can act on your behalf, in order to recover any costs from other persons. (a) RECOVERY After we have accepted any part of your claim, we: are fully subrogated to your position (we are able to recover costs on your behalf), and (ii) may exercise for our own benefit any legal right of recovery you have. If we do this it is at our expense. However, you must fully co-operate with us. If you do not, we may recover the claim payment(s) from you. (b) PROCEEDS If we are successful, we will distribute any recovery as follows: first, we will reimburse your excess and any uninsured portion of the loss, (ii) second, we will retain the costs of the insured losses that have been paid, (iii) finally, we will pay you any remaining balance of the recovery. G6. CONDUCT OF THE DEFENCE After you have made a claim, we have the sole right to: (a) act in your name and on your behalf to defend, negotiate or settle the claim as we see fit (this will be done at our expense), and (b) publish a retraction or apology (in the case of defamation proceedings). We may appoint our own lawyers to represent you. They will report directly to us. G7. DISCHARGE OF THE CLAIM We may elect at any time to pay you: (a) the Maximum Amount Payable under Parts F1 and F3 of the policy, or (b) any lesser sum that the claim against you can be settled for. Once we have paid this (plus any Defence Costs already incurred) our liability to you under the policy is met in full. H. GENERAL CONDITIONS H1. ACTS OF PARLIAMENT Where this policy refers to any Act of Parliament, this includes any Statutory Regulations made under it. It also includes any Act or Regulations enacted in substitution. H2. CANCELLATION (a) BY YOU You may cancel this policy at any time by giving notice to us. We will refund to you the unexpired portion of any premium you have already paid to us. (b) BY US We may cancel this policy at any time by giving notice to you. Cancellation is effective from 4:00pm on the 30th day after the notice is given. The 30 day period starts on the day the notice is delivered or posted. We will refund to you the unused portion of any premium you have already paid to us. H3. CHANGE IN CIRCUMSTANCES (a) WHEN YOU MUST NOTIFY US You must notify us immediately if, after the start of the policy, there is a material: increase in the risk insured, or (ii) alteration in the risk insured. Information is material where we would have made a different decision about either (1) accepting the insurance risk, or (2) setting the terms of the insurance, if we had known that information. If in any doubt, notify us anyway. The risk insured refers to both (1) the actual property or liability insured (known as physical hazard) and (2) you or other persons covered by this policy (known as moral hazard). PAGE 12 PUBLIC LIABILITY POLICY Wording PUB0904

13 H. GENERAL CONDITIONS (continued) (b) AFTER YOU HAVE NOTIFIED US After you have notified us about a change in the risk insured, we may change the: premium payable, and/or (ii) terms and conditions of this policy. Any change we make will be effective immediately. (c) CONSEQUENCES OF NOT NOTIFYING US If you fail to notify us about a change in the risk insured, we may: declare this policy unenforceable, or (ii) decline any subsequent claim either in whole or in part. These actions will be taken from the date you knew, or ought to have known, of the increase or alteration in the risk insured. H4. COMPLY WITH THE POLICY You must meet the following conditions BEFORE we are liable under this insurance policy: (a) you must comply with all the terms of the policy, and (b) whenever the policy covers the interest of any other person or entity, that person or entity must also comply with the same terms of the policy where applicable, and (c) true statements and answers must be given (whether by you or any other person) when you: apply for this insurance, and (ii) notify us regarding any change in circumstances, and (iii) make any claim under this policy. H5. DOUBLE INSURANCE You must notify us immediately of any other insurance policy that covers any of the risks covered under this policy. If any other insurance policy exists, we will only pay over and above the limit payable under that other policy. H6. GOODS AND SERVICES TAX Where GST is recoverable by us under the Goods and Services Tax Act 1985: (a) all Sums Insured exclude GST, and (b) GST will be added, where applicable, to claim payments. H7. GOVERNING LAW The law of New Zealand applies to this policy and the New Zealand Courts have exclusive jurisdiction. H8. INSURANCE LAW REFORM ACTS The exclusions and conditions in this policy are subject to your rights under the Insurance Law Reform Acts 1977 and H9. MONTHLY / QUARTERLY PREMIUMS If you choose to pay the premium monthly or quarterly, then: (a) you must use the Deduction Authority we require, and (b) this policy is for the initial period of insurance starting on the FROM date and ending on the TO date stated in the schedule. The policy will be renewed for further monthly or quarterly periods of insurance (as indicated in the schedule) by payment of each monthly or quarterly premium due under the Deduction Authority. H10. NOTICES (a) FROM YOU TO US Notices from you to us must be: in writing, and (ii) delivered personally or posted to any NZI Branch, NZI Service Centre or to our Head Office. (b) FROM US TO YOU Notices from us to you must be: in writing, and (ii) delivered personally or posted to the last known postal address of: you, or your insurance broker or agent (if you have one). PUBLIC LIABILITY POLICY Wording PUB0904 PAGE 13

14 H. GENERAL CONDITIONS (continued) H11. POLICY CONTRACT This policy is a contract consisting of the following parts: (a) your application for insurance, and any oral or written supporting statements or documents supplied by you, and (b) this policy wording (including any endorsements), and (c) the schedule. H12. PREMIUM ADJUSTMENTS If the premium for this policy has been calculated based on estimated figures, then the premium is only a provisional premium for the annual period. Within three months of the expiry of the annual period, you must tell us what the actual figures are. We will recalculate your actual premium based on the actual figures. The difference between the actual and the provisional premiums will either be payable to us or refunded to you depending on the outcome of the adjustment. H13. SEPARATE INSURANCE If more than one person or entity is named as INSURED in the schedule, then all the parties are insured separately (as though a separate policy had been issued to each person/entity). HOWEVER, we will not pay more to the entire group put together than the amount listed under PART F. HOW MUCH WE WILL PAY. H14. TAKE REASONABLE CARE You must take reasonable care at all times, and at your own expense, to avoid circumstances that could result in a claim. Your claim will not be covered if you are reckless or grossly irresponsible. PAGE 14 PUBLIC LIABILITY POLICY Wording PUB0904

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16 PUBLIC LIABILITY POLICY Underwritten by NZI, a business division of IAG New Zealand Limited IMPORTANT: PLEASE EXAMINE THIS POLICY AND IF IT DOES NOT MEET YOUR REQUIREMENTS, KINDLY RETURN IT AT ONCE TO YOUR BROKER OR AGENT OR TO OUR OFFICE OF ISSUE. PUBLIC LIABILITY POLICY NZ832 09/04