Business Insurance Policy

Transcription

1 Business Insurance Policy Whereas the Insured by a proposal and declaration which shall be the basis of this contract and is deemed to be incorporated herein has applied to the New Jubilee Insurance Company Limited (hereinafter call the Company ) for the insurance hereinafter specified and has paid the premium as consideration of such insurance, The Company Agrees (subject to Conditions contained herein or endorsed or otherwise, expressed herein which Conditions shall so far as the nature of them respectively will permit be deemed to be Conditions precedent to the right of the insured to recover hereunder) that if after payment of the premium the Property insured and described in the said schedule, or any part of such Property, be destroyed or damaged by any or all of the contingencies hereinafter mentioned, the Company will pay to the insured the value of the Property at the time of happening of its destruction or the amount of such damage or at its option reinstate or replace such Property or any part thereof. Section 1: Loss or Damage to Building and Contents The company will indemnify the Insured in respect of loss of or damage to the Building and/or its Contents described in the Schedule by: 1. FIRE AND LIGHTNING 2. RIOTS AND STRIKES 3. ACTS OF MALICIOUS INTENT 4. EXPLOSION (but excluding explosion of steam pressure plant belonging to or under control of the insured) 5. AIRCRAFT AND OTHER AERIAL DEVICES or articles dropped therefrom 6. IMPACT by any road vehicle; not belonging to or under the control of the insured. 7. ATMOSPHERIC DISTURBANCE (Flood, Cyclone, Windstorm, Typhoon, Hurricane, Storm and Tempest) 8. EARTHQUAKE, FIRE AND SHOCK Exclusions applicable to Section 1 This Company is expressly declared to be free from liability for loss of or damage to any electrical machine, apparatus, fixture or fitting (including electric fans, electric household or domestic appliances, wireless sets and radios) or to any portion of electrical installation, arising from or occasioned by overrunning, excessive pressure, short circuiting, arcing, self-heating, or leakage of electricity, from whatever cause (lightning included); provided that this exemption shall apply only to the particular electrical machine, apparatus, fixture, fitting or portion of the electrical installation so affected and not to other machines, apparatus, fixtures, fitting or portions of the electrical installation which may be destroyed or damaged by fire so setup. All other exclusions as per specific endorsements. Section 2: Loss or Damage by Burglary & House Breaking The Company shall indemnify the insured for loss of any item insured whilst contained in the premises described in the Schedule due to Burglary & House Breaking (inclusive of armed Hold-Up) consequent upon violent and forcible entry or exit from the insured s premises upto the limit specified in the schedule, excluding loss or damage due to any such Burglary as aforesaid or to any attempt thereat by any of insured s family, domestic servant, employees or any person lawfully on the premises. Provided that compensation shall not be payable under this Section in the event of the premises being left unoccupied by day or night for a continuous period exceeding seven days without the prior knowledge and written consent of the Company and the payment of an additional premium if required. Section 3: Terrorism Cover Coverage as per Terrorism Insurance Wording attached. Section 4: Cash-in-safe

2 The Company shall indemnify the insured for loss of cash up to the sum insured specified in the Schedule, whilst contained in locked safe or almirah or drawer in the premises described in the schedule, due to burglary, dacoity, and armed hold-up. Provided that the Company will not be liable for any loss and / or damage: a) If the keys of safe or almirah or drawer are left in the premises after the business hours. b) Occasioned by opening of door of any safe by the use of key or by the manipulation of lock. c) In respect of any fraud or dishonesty of employees. Provided always that cash covered should belong to insured s trade / business only (which must be verifiable from the books of accounts and any other valid documents). Section 5: Signage Cover This section covers loss or damage to the shop/business signage upto the limit specified in the schedule, occurring within the policy period as a result of any cause that is not excluded under this section as well as under the general conditions of this Policy. The coverage under this section is on a First Loss Basis. Exclusions applicable to Section 5 a. Damage to or destruction of the sign caused by: b. Its own defective design materials or workmanship c. Latent defect, gradual deterioration or wear and tear d. Faulty or defective workmanship, omission on Insured s part or any person using the installing/maintaining the sign with Insured s express or implied consent e. Corrosion, rust, condensation or evaporation, dampness, dryness, dust or change in temperature f. mechanical or electrical breakdown or derangement g. scratching, abrasion, change in colour, texture or finish of the sign h. intentional act or wilful neglect by Insured a. Any consequential loss, howsoever arising GENERAL CONDITIONS APPLICABLE TO ALL SECTIONS (EXCEPT SECTION 3) 1) This insurance may be cancelled by or on behalf of the Company by 07 days notice given in writing to the insured at his last known address and the premium shall be adjusted on the basis of the Company receiving or retaining pro-rata premium. This insurance may also be cancelled at any time at the request of the insured in writing to the Company and the premium hereon shall be adjusted on the basis of the Company receiving or retaining the customary short-term premium. 2) There shall be no liability under this insurance in respect of any claim where the insured is entitled to indemnity under any other insurance EXCEPT in respect of any excess beyond the amount which have been covered under such other insurance had this insurance not been effected. 3) The Company shall be entitled: a) On the happening of any loss of or damage to any property insured under this policy to enter any building where the loss or damage has happened and to take and keep possession of the property insured and to deal with the salvage in a reasonable manner and this Policy shall be proof of leave and license for such purpose. No Property may be abandoned to the Company. b) To undertake in the name and on behalf of the insured the absolute conduct control and settlement of any proceedings and to take proceedings at its own expense and for its own benefit but in the name of the insured to recover compensation or secure indemnity from any third party in respect of anything covered by this Policy. 4) If the insured shall make any claim knowing the same to be false or fraudulent as regards amount or otherwise, this insurance shall become void and all claims hereunder shall be forfeited.

3 5) This Policy does not cover: a) Loss or destruction of or damage to any property whatsoever or any loss or expense whatsoever resulting or arising there from or any consequential loss or damage legal liability or whatsoever nature directly or indirectly caused by or contributed to by or arising from ionizing radiations or radioactive contamination from any nuclear fuel from any nuclear waste. b) Any contingency occasioned by or happening through war, invasion, act of foreign enemy, hostilities (whether war be declared or not) civil war, rebellion, revolution insurrection or military or usurped power civil commotion, terrorism or any popular uprising against a recognized government. c) Consequential loss of any nature whatsoever. d) Breakage of any item or fixture, fittings etc. except by a peril insured by this Policy. e) Jewellery, deeds, bonds, bill of exchange, promissory notes, securities of money, cheques, documents of description, stamps, model of motor vehicles / accessories or stocks unless specifically declared and agreed by the Company. f) Any loss, destruction or damage directly occasioned by pressure waves caused by aircraft and other aerial device travelling at sonic or super sonic speeds. g) Any loss or damage of any nature arising out of any act of Terrorism or Sabotage h) Any consequential losses of any nature. 6) If any difference arises as to the amount of any loss or damage such difference shall independently of all other questions be referred to the decision of an arbitrator, to be appointed in writing by the parties in difference or, if they cannot agree upon a single arbitrator, to the decision of two disinterested persons as arbitrators, of whom one shall be appointed in writing by each of the parties within two calendar months after having been required so to do in writing by the other party. In case either party shall refuse or fail to appoint an arbitrator within two calendar months after receipt of notice in writing requiring an appointment, the other party shall be at liberty to appoint a sole arbitrator; and in case of disagreement between the arbitrators the difference shall be referred to the decision of an umpire who shall have been appointed by them in writing before entering in the reference and who shall sit with the arbitrators and preside at their meetings. The death of any party shall not revoke or affect the authority powers of the arbitrator, arbitrators or umpire respectively; and in the event of the death of an arbitrator or umpire, another shall in each case be appointed in his stead by the party or arbitrators (as the case may be) by whom the arbitrators or umpire so dying was appointed. The costs of the reference and of the award shall be in the discretion of the arbitrator, arbitrators or umpire making the award. And it is hereby expressly stipulated and declared that it shall be a condition precedent to any right of action or suit upon this Policy that the award by such arbitrator, arbitrators or umpire of the amount of the loss or damage if disputed shall be first obtained. 7) The Company shall neither be bound to send any notice of a renewal premium becoming due nor to renew this Policy. The Company shall at any time, by giving seven days notice to the Insured by Registered Letter at the Insured s address or place of abode as last known to the Company, be at liberty to determine and cancel this Policy, Provided that the Company shall in that event on demand return to the Insured a proportionate part of the premium corresponding to unexpired period of Insurance. 8) The liability of the Company shall in no case exceed in respect of each item of the sum insured expressed in the Schedule to be insured thereon or in the whole the total Sum Insured hereby, or such other sum or sums as may be sustained thereof by memorandum hereon or attached hereto by or on behalf of the Company. 9) In the event of the Company disclaiming liability to the insured for any claim hereunder such claim is not within twelve calendar months from the date of such disclaimer referred to arbitration under this provision herein contained then the claim shall for all purposes be deemed to have been abandoned and shall not thereafter be recoverable herein under. 10) In order to make a claim, Insured or Insured s personal representative, must:

4 a) Within 72 hours of the occurrence of any event giving rise or likely to give rise to a claim, notify the Company. b) In the event of loss by theft or where Insured has reason to believe a criminal Offence has been committed, notify the police and obtain a F.I.R. c) Take precautions to prevent further damage to the sign (the Company will not be liable for any further damage resulting from lack of care on behalf of the Insured). d) Retain any wreckage/debris of the damaged/destroyed property. e) When requested to do so, and within 15 working days of receiving such request, deliver to the Company a written statement of all reasonable particulars and details of the sign affected, its value and the event giving rise to a claim and furnish all such documents, explanations and other evidence as may be reasonably required by the Company. 11) Under the following circumstances the insurance ceases to attach as regard the property affected unless the Insured, before the occurrence of any loss or damage, obtains the sanction of the Company signified by endorsement upon the Policy, by or on behalf of the Company; a) If property insured be moved to any building or place other than in which it is herein stated to be insured. b) If the interest in the property insured passed from the Insured, otherwise than by will or operation of law. Short Period Scale: Acceptance for a short period of less than 12 months unless otherwise specially provided, must be issued in accordance with the following scale of short period rates. And premium shall as under subject to NO loss reported: 1. For a period not exceeding 15 days..10 % the annual rate would Minimum Rs. 1, For a period not exceeding 1 month..20 % the annual rate would Minimum Rs. 1, For a period not exceeding 2 month..30 % the annual rate would Minimum Rs. 1, For a period not exceeding 3 month..40 % the annual rate would 5. For a period not exceeding 6 month..75 % the annual rate would 6. For a period not exceeding 9 month..90 % the annual rate would 7. For a period exceeding 9 months The full annual rate would be charged

5 TERRORISM INSURANCE PHYSICAL LOSS OR PHYSICAL DAMAGE WORDING INSURING CLAUSE Subject to the exclusions, limits and conditions hereinafter contained, this Insurance insures property as stated in the Schedule attaching to and forming part of this Policy (hereinafter referred to as the Schedule ) against physical loss or physical damage occurring during the period of this Policy caused by an Act of Terrorism or Sabotage, as herein defined. This insurance is provided on a First Loss Basis with the Underwriter s liability limited to the amount stated in the Schedule. For the purpose of this Insurance, an Act of Terrorism means an act or series of acts, including the use of force or violence, of any person or group(s) of persons, whether acting alone or on behalf of or in connection with any organisation(s), committed for political, religious or ideological purposes including the intention to influence any government and/or to put the public in fear for such purposes. For the purpose of this Insurance, an act of sabotage means a subversive act or series of such acts committed for political, religious or ideological purposes including the intention to influence any government and/or to put the public in fear for such purposes. First Loss Basis means that the Policy will be terminated as soon as any claim is made irrespective of the amount claimed EXCLUSIONS 1. Loss or damage arising directly or indirectly from nuclear detonation, nuclear reaction, nuclear radiation or radioactive contamination, however such nuclear detonation, nuclear reaction, nuclear radiation or radioactive contamination may have been caused. 2. Loss or damage occasioned directly or indirectly by war, invasion or warlike operations (whether war be declared or not), hostile acts of sovereign or local government entities, civil war, rebellion, revolution, insurrection, martial law, usurpation of power, or civil commotion assuming the proportions of or amounting to an uprising. 3. Loss by seizure or legal or illegal occupation. 4. Loss or damage caused by confiscation, nationalisation, requisition, detention, embargo, quarantine, or any result of any order of public or government authority which deprives the Insured of the use or value of its property, nor for loss or damage arising from acts of contraband or illegal transportation or illegal trade. 5. Loss or damage directly or indirectly arising from or in consequence of the seepage and or discharge of pollutants or contaminants, which pollutants and contaminants shall include but not be limited to any solid, liquid, gaseous or thermal irritant, contaminant or toxic or hazardous substance or any substance the presence, existence or release of which endangers or threatens to endanger the health, safety or welfare of persons or the environment. 6. Loss or damage arising directly or indirectly from or in consequence of chemical or biological emission, release, discharge, dispersal or escape or chemical or biological exposure of any kind. 7. Loss or damage arising directly or indirectly from or in consequence of asbestos emission, release, discharge, dispersal or escape or asbestos exposure of any kind. 8. Any fine or penalty or other assessment which is incurred by the Insured or which is imposed by any court, government agency, public or civil authority or any other person. 9. Loss or damage by electronic means including but not limited to computer hacking or the introduction of any form of computer virus or corrupting or un authorised instructions or code or the use of any electromagnetic weapon. 10. Loss or damage caused by vandals or other persons acting maliciously or by way of protest or strikes, labour unrest, riots or civil commotion. 11. Loss or increased cost occasioned by any public or government or local or civil authority s enforcement of any ordinance or law regulating the reconstruction, repair or demolition of any property insured hereunder. 12. Loss or damage caused by measures taken to prevent, suppress or control actual or potential terrorism or sabotage unless agreed by Underwriters in writing prior to such measures being taken. 13. Liability of any sort, howsoever arising. 14. Any consequential loss or damage, loss of use, delay or loss of markets, loss of income, depreciation, reduction in functionality, or increased cost of working. 15. Loss or damage caused by factors including but not limited to cessation, fluctuation or variation in, or insufficiency of, water, gas or electricity supplies and telecommunications or any type of service. 16. Loss or increased cost as a result of threat or hoax. 17. Loss or damage caused by or arising out of fire, burglary, house - breaking, looting, theft or larceny. 18. Loss or damage caused by mysterious disappearance or unexplained loss.

6 19. Loss or damage directly or indirectly caused by mould, mildew, fungus, spores or other microorganism of any type, nature or description, including but not limited to any substance whose presence poses an actual or potential threat to human health. PROPERTY EXCLUDED This Policy does not cover physical loss or physical damage to: 1. Land or land values. 2. Power transmission, feeder lines or pipelines not on the Insured s premises. 3. Any building or structure, or property contained therein, while such building or structure is vacant or unoccupied or inoperative for more than thirty days, unless the property is intended to be unoccupied in its normal operations. 4. Aircraft or any other aerial device, or watercraft. 5. Any land conveyance, including vehicles, locomotives or rolling stock, unless such land conveyance is declared hereon and solely whilst located at the property insured herein at the time of its damage.

7 6. Accounts, bills, currency, money, deeds, notes, securities, evidences of debt or title, letters of credit, stamps, tickets, bullion, gold, silver and other precious metals, diamonds, precious and semi-precious stones, jewellery or furs, electronic data or intellectual property stored in any form. 7. Animals, plants and living things of all types. 8. Property in transit not on the Insured s premises. 9. Offshore property, underground installations, mines, shafts, wells, caverns, dams, water shafts, power tunnels, dikes, levees, gates and flumes, unless specifically recorded in the Schedule CONDITIONS 1. ONUS OF PROOF In any claim and/or action, suit or proceeding to enforce a claim for loss under this policy, the burden of proving that the loss is recoverable under this Policy and that no limitation or exclusion of this policy applies and the quantum of loss shall fall upon the Insured. 2. JOINT INSUREDS The Underwriters total liability for any loss or losses sustained by any one or more of the Insureds under this Insurance will not exceed the limit(s) of liability shown in the Schedule. The Underwriters shall have no liability in excess of the limit(s) stated in the Schedule whether such amounts consist of insured losses sustained by all of the Insured s or any one or more of the Insured s. 3. OTHER INSURANCE This Policy shall be excess of any other insurance available to the Insured covering a loss covered hereunder except such other insurance which is written specifically as excess insurance over this Policy. When this Policy is written specifically in excess of other insurance covering the peril insured hereunder, this Policy shall not apply until such time as the amount of the underlying insurance, (whether collectible or not), has been exhausted by loss and damage covered by this Policy in excess of the deductible with respect to each and every covered loss. 4. SITUATION This Policy insures property located at the addresses stated in the Schedule. 5. SUM INSURED The Underwriters hereon shall not be liable for more than the limit(s) stated in the Schedule in respect of each occurrence. 6. DEDUCTIBLE Any claim under this policy shall be subject to a deductible as stated in the Schedule. 7. OCCURRENCE The term Occurrence shall mean any one loss and/or series of losses arising out of and directly occasioned by one Act or series of Acts of Terrorism or Sabotage for the same purpose or cause. The duration and extent of any one Occurrence shall be limited to all losses sustained by the Insured at the property insured herein during any period of 72 consecutive hours arising out of the same purpose or cause. However no such period of 72 consecutive hours may extend beyond the expiration of this Policy unless the Insured shall first sustain direct physical damage by an Act of Terrorism or an Act of Sabotage prior to expiration and within said period of 72 consecutive hours nor shall any period of 72 consecutive hours commence prior to the attachment of this Policy. 8. DEBRIS REMOVAL This Policy also covers, within the limit of liability, expenses incurred in the removal from the insured location of debris of property stated in the Schedule damaged by an Act of Terrorism or an Act of Sabotage. The cost of removal of debris shall not be considered in determination of the valuation of the property covered.

8 9. DUE DILIGENCE The Insured (or any of the Insured s agents, sub or co-contractors) must use due diligence and do (and concur in doing and permit to be done) everything reasonably practicable, including but not limited to taking precautions to protect or remove the insured property, to avoid or diminish any loss herein insured and to secure compensation for any such loss including action against other parties to enforce any rights and remedies or to obtain relief or indemnity. 10. PROTECTION MAINTENANCE It is agreed that any protection provided for the safety of the property insured shall be maintained in good order throughout the currency of this Policy and shall be in use at all relevant times, and that such protection shall not be withdrawn or varied to the detriment of the interests of the Underwriters without their consent. 11. VALUATION It is understood that, in the event of damage, settlement shall be based upon the cost of repairing, replacing or reinstating (whichever is the least) property on the same site, or nearest available site (whichever incurs the least cost) with material of like kind and quality without deduction for depreciation, subject to the following provisions: - The repairs, replacement or reinstatement (all hereinafter referred to as replacement ) must be executed with due diligence and dispatch; - Until replacement has been effected the amount of liability under this Policy in respect of loss shall be limited to the actual cash value at the time of loss;

9 - If replacement with material of like kind and quality is restricted or prohibited by any bylaws, ordinance or law, any increased cost of replacement due thereto shall not be covered by this Policy. The Underwriters liability for loss under this Policy shall not exceed the smallest of the following amounts: - The Policy limit applicable to the destroyed or damaged property, - The replacement cost of the property or any part thereof which was intended for the same occupancy and use, as calculated at the time of the loss, - The amount actually and necessarily expended in replacing said property or any part thereof. 12. INCORRECT DECLARATION PENALTY If the values declared as stated in the Schedule are less than the correct insured values as determined above, then any recovery otherwise due hereunder shall be reduced in the same proportion that the values declared bear to the values that should have been declared, and the Insured shall co-insure for the balance. 13. NOTIFICATION OF CLAIMS The Insured, upon knowledge of any occurrence likely to give rise to a claim hereunder, shall give written advice as soon as reasonably practicable to the Underwriters within 72 hours of such knowledge of any occurrence and it is a condition precedent to the liability of Underwriters that such notification is given by the Insured as provided for by this Policy. If the Insured makes a claim under this Insurance he must give the Underwriters such relevant information and evidence as may reasonably be required and co-operate fully in the investigation or adjustment of any claim. If required by the Underwriters, the Insured must submit to examination under oath by any person designated by the Underwriters. 14. PROOF OF LOSS The Insured shall render a signed and sworn proof of loss within sixty (60) days after the occurrence of a loss (unless such period be extended by the written agreement of Underwriters) stating the time, place and cause of loss, the interest of the Insured and all others in the property, the sound value thereof and the amount of loss or damage thereto. If the Underwriters have not received such proof of loss within two years of the expiry date of this Policy, they shall be discharged from all liability hereunder. 15. SUBROGATION If the Underwriters become liable for any payment under this policy in respect of loss or damage the Underwriters shall be subrogated, to the extent of such payment, to all the rights and remedies of the Insured against any party in respect of such loss or damage and shall be entitled at their own expense to sue in the name of the Insured. The Insured shall give to the Underwriters all such assistance in his power as the Underwriters may require to secure their rights and remedies and, at Underwriters request shall execute all documents necessary to enable Underwriters effectively to bring suit in the name of the Insured including the execution and delivery of the customary form of loan receipt. 16. SALVAGE AND RECOVERIES All salvages, recoveries and payments recovered or received subsequent to a loss settlement under this Policy shall be applied as if recovered or received prior to the said settlement and all necessary adjustments shall be made by the parties hereto. 17. FALSE OR FRAUDULENT CLAIMS If the Insured shall make any claim knowing the same to be false or fraudulent, as regards amount or otherwise, this Policy shall become void and all claims and benefit hereunder shall be forfeited. 18. MISREPRESENTATION If the Insured has concealed or misrepresented any material fact or circumstance relating to this Insurance, this Insurance shall become void. If the Insured is unsure what constitutes material fact(s) or circumstance(s), they should consult the Underwriter. 19. ABANDONMENT

10 There shall be no abandonment to the Underwriters of any property. 20. INSPECTION AND AUDIT The Underwriters or their agents shall be permitted but not obligated to inspect the Insured s property at any time. Neither the Underwriters right to make inspections nor the making thereof nor any report thereon shall constitute an undertaking, on behalf of or for the benefit of the Insured or others, to determine or warrant that such property is safe. The Underwriters may examine and audit the Insured s books and records at any time up to two years after the final termination of this Policy, as far as they relate to the subject matter of this Insurance. 21. ASSIGNMENT Assignment or transfer of this Policy shall not be valid except with the prior written consent of the Underwriters.

11 22. RIGHTS OF THIRD PARTIES EXCLUSION This Policy is effected solely between the Insured and the Underwriters. This Policy shall not confer any benefits on any third parties, including shareholders, and no such third party may enforce any term of this Policy. The Contract (Rights of Third Parties) Act 1999 (or as amended by further legislation) is expressly excluded from this Policy. This clause shall not affect the rights of the Insured. 23. CANCELLATION This Policy may be cancelled by or on behalf of the Underwriters by delivery to the Insured or by mailing to the Insured by registered, certified, or other first class mail, at the Insured s address as shown in this Policy, written notice stating when, not less than 15 days thereafter, the cancellation shall be effective. The mailing of such notice as aforesaid shall be sufficient proof of notice and this Policy shall terminate at the date and hour specified in such notice. If this Policy is cancelled by or on behalf of the Underwriters, the Underwriters shall retain the pro-rata proportion of the premium hereon. The Policy may also be cancelled by the Insured with immediate effect by written notice to the Underwriters. In such cases premium shall as per short period scale as mentioned above. Payment or tender of any unearned premium by the Underwriters shall not be a condition precedent to the effectiveness of cancellation, but such payment shall be made as soon as practicable. If the period of limitation relating to the giving of notice is prohibited or made void by any law controlling the construction thereof, such period shall be deemed to be amended to be equal to the minimum period of limitation permitted by such law. 24. ARBITRATION If any difference arises as to the amount of any loss or damage, each party shall, within ten (10) days after the demand in writing by either party, appoint a competent and disinterested arbitrator and the two (2) chosen shall before commencing the arbitration select a competent and disinterested umpire. The arbitrators together shall determine such matters in which the Insured and Underwriters shall so fail to agree and shall make an award thereon and the award in writing of any two (2), duly verified, shall determine the same, and if they fail to agree, they will submit their differences to the umpire. The parties to such arbitration shall pay the arbitrators respectively appointed by them and bear equally the expenses of the arbitration and the charges of the umpire. 25. SEVERAL LIABILITY The Underwriters obligations under this Policy are several and not joint and are limited solely to their individual subscriptions. The Underwriters are not responsible for the subscription of any co-subscribing Underwriter who for any reason does not satisfy all or part of its obligations. 26. MATERIAL CHANGES The Insured shall notify the Underwriters of any change of circumstances which would materially affect this Insurance. 27. LAW & JURISDICTION Islamic Republic of Pakistan Laws will govern this Policy. Any disputes arising hereunder will be exclusively subject to Government of Islamic Republic of Pakistan jurisdiction.