PRIVATE CONDITIONS FOR PROFESSIONAL LIABILITIES IN PUBLIC ACCOUNTANCY / CERTIFIED PUBLIC ACCOUNTANCY

Transcription

1 GENERAL CONDITIONS General Conditions for Professional Liability Insurance PRIVATE CONDITIONS INSURED PERSON: SAHİR KESKİN ID NO: EXEMPTION: 5% OF EVERY DAMAGE, EACH ONE BEING AT LEAST 250 EUR.. SECURITY LIMIT IS APPLIED AS EVENT START AND ANNUAL TOTAL LIMIT... It is principle that the policy premium is paid in the currency that is stated on the front face of the policy. In case the premium is paid in YTL (TRY), the transaction is conducted over exchange selling rate (on payment date) of the bank that is stated above. PRIVATE CONDITIONS FOR PROFESSIONAL LIABILITIES IN PUBLIC ACCOUNTANCY / CERTIFIED PUBLIC ACCOUNTANCY 1. Scope of Security With this insurance, the Insurer insures the Insured against results of indemnity claims from third persons against the Insurer that are caused by his faults or improper performance in his professional services, up to the limit of indemnity stated in the policy, subject to the private conditions written above and provisions in (a) item of the A.1. Article of the attached General Conditions for Professional Liability Insurance. For an indemnity claim to be compensated within the scope of this insurance by the Insurer, it is required that; a. The event that caused the Insured s responsibility must be within the insurance period, and b. The indemnity claim has to be stated to the Insured with certified mail within the insurance period or within at most the 5 years following the end of the insurance period (extended statement period). The Insurer has no payment liability as per this insurance unless all of these conditions materialize. In case the policy is continuously renewed, the 5-year period about emerging of the damage will be accepted as the 5 year after the period ending of the last renewed policy for all policies renewed sequentially. This insurance also covers the SSI premium, tax, tax penalty, increases due to default and default interests. This insurance also covers losses due to late submittal or no submittal or SSI employment statement. This insurance protects the Insured in case the company where he works pays indemnification to third persons within scope of the policy and this is recourse to the Insured, all these within framework of the conditions being stated in the policy.

2 Indemnity claims due to incompletion of legal documents within the periods projected in present laws and legislations are also in scope of insurance cover. Claims for spiritual damages are in scope of insurance cover despite item (f) of the Article A.4.2 in General Conditions for Professional Liability Insurance Despite item (a) of the Article A.4.3 in General Conditions for Professional Liability Insurance; executive and juridical penalties that the third persons will have to pay, and then claim against the him due to professional liability of the insured or that the insured will pay due to joint liability are in scope of insurance cover. Despite (a) item of the Article A.4.1 in General Conditions for Professional Liability Insurance ; indemnity claims due to loss of every kind of documents, whether computer-based, keepable in electronic environment, written, printed or reproduced with any method, or loss or destruction of information and equipment given under supervision are in insurance coverage. If any restriction is applied on assets of the Insured due to a conclusive executive decision, the insurance company excluding cases out of insurance cover- will execute the necessary transactions, such as giving securities, to release these assets from restriction. In penalties within insurance scope and that are over TL, if the insured requests an advance payment, the insurer accepts to pay the related amount to the tax office provided that the insured provides all documents in complete, submits the accrual certificate related to the penalty and on the condition that the exemption amount stated in the policy be paid in cash to the insurer. Defense Expenses: Expenses and expenditures due to defense on behalf of the Insured against any indemnity claims are covered, being restricted to minimum attorney fee. Attorney fee will be paid according to minimum attorney fee tariff for the amount requested at the beginning, disregarding acceptdiscard ratio of the case for Spiritual Damage amount. In case the indemnity claim against the insured is accepted by the court, the litigation expenses, counsel s fee and attorney fee of the defendant judged in favor of the complaisant are also in evaluated within this limit. In relation to all fees and legal expenses to be paid, the total payment liability of the insurer will not exceed the total limit and as per event. Selection and appointment of the attorney is in responsibility of the insured independent / certified public accountant. Insurance company does not appoint attorneys, it only covers the charges and expenses until the stated limit.

3 Policies from previous periods: The recourse date for policies issued by Anadolu Sigorta and valid on is 5 years before commencement date of the first issued policy. 2. Coverage Limit The total liability of the Insurer within the frame of this policy in amounts for all indemnity claims against the Insured (including spiritual damage claims), researching of these claims, defending against these claims or concluding these with a peaceful agreement will not exceed the coverage limit stated in the policy. The coverage limit stated in the policy will be applied per event and as annual total, while the total limit will decrease as much as the amount paid in every damage. A case causing a series of indemnity claims will be considered as one event within the following conditions. a. All indemnity claims about different losses due to a single faulty action or avoidance and faulty actions or avoidances due to the same reason or a similar reason will be considered a single action or avoidance on the condition that they are connected in legal or financial grounds. b. More than one action or avoidance causing the same damage. In case of a damage, the indemnity claim against the Insured, disregarding when it was put forward, will be subject to coverage limits of that project within whose 1-year period the claim is made. If the event that causes the Insured to be held responsible is not within the period of one policy and instead within retrospective period of one or more, it is subject to the limits of that project or the insurance policy issued first in the chronological order. 3. Exemption Liability of the Insurer for each indemnity claim within coverage scope is limited to the amount that exceeds the exemption amount being stated in the policy, in relation to the amount subject to indemnity claim and all expenses of researching and defense on whether this claim is rightful. In case an expense, which is required to be covered by the Insured after a while, is covered previously by the Insurer, this expense amount will be collected from the Insured. 4. Exceptions The below cases are out of this insurance coverage; a. Except the ones that are exclusively stated to be included in the coverage, the provisions in A.4 Cases Out Of Coverage If Not Agreed On Otherwise article of General Conditions for Professional Liability Insurance, b. Damages due to actions and avoidances before policy commencement date;

4 c. Indemnity claims from the legal persons and institutions defined below; - The Insured, people acting on behalf of the Insured or a company managed or predominantly controlled by employees of the Insured or a company wherein these people have financial benefits (main company, joint office, affiliate company, etc), - A company having financial relation to operations of the Insured (main company, joint office, affiliate company, etc), - A company whose employees are included in operations of the Insured, d. Liabilities due to activities of the Insured in the capacity of board chairman, comptroller general or a member or guardian of these, or in the capacity of a liquidator, e. Indemnity claims due to all kinds of services related to legal regulations in other countries, f. The Insured breaching his liabilities due to defalcation of his employees, g. Calumniation or smearing, h. Faulty actions or avoidances of the Insured in relation to taking out a policy or preserving the insurance coverage operative, i. Personal injuries, property damages and all kinds of damages resulted by these, j. Indemnity claims due to losses and damages due to below events or (directly or indirectly) in relation with these; - War, invasion, foreign enemy actions, hostilities or operations similar to war (whether war declared or not) and/or civil war - Military rebellion, civil strife that is similar to a public riot, military riot, rebellion, revolution, military or general extortion - Terrorist actions carried out by people acting on behalf of one person or organization. Here terrorist actions means use of violence for political goals, also including violent actions in order to terrorize the society or a part of it. The liability to prove that the loss or damage in question is in insurance coverage in all kinds of cases and proceedings related to losses and damages held out of coverage by the insurer as per this exception provision will be on in the Insured s responsibility, k. Indemnity claims due to all kinds of reviews and recommendations on software or hardware, l. Losses due to activities of the Insured under capacity of a trustee or such, m. Possible damages on property that is in ownership of the Insured, operated or managed by him, n. Losses due to failure to keep commercial and/or industrial secrets and/or abusing them, o. Indemnity claims that may be proceeded as per laws other than the legislation of Turkish Republic p. Possible liabilities due to misleading and/or fake document use within knowledge of the Insured and/or obligants, r. Possible indemnity claims due to intentional actions of the Insured or the people whose actions the Insured is responsible for,

5 5. Liabilities of the Insured a. The Insured will always keep correct and detailed records for his services and will keep open the records related to indemnity claims for the insurer and/or his representatives for examination and make use of, and will provide the below information and documents, which the Insurer may request, to Him or his representatives. Agreement between the Insured and his obligant, Copies of the invoices the Insured made out to the obligant, Written statement of the Insured, Written document proving that the obligant is claiming such damage against the Insured, Document of the penalty accrued, Procurement of the paper that indicates commencement and finishing dates of the examination from the related finance office inspector, Technical tax report / tax examination report, Various papers that document the misdoing, Procurement of written permission from the obligant so that the damage amount can be paid to the Insured Other documents may that be deemed necessary. b. The Insured will be requested to procure from the related finance office inspector the paper that indicates commencement and finishing dates of the examination, that is the subject of the damage. If the examination commencement date is before starting date of the insurance policy, the case in question will not be considered within scope of the coverage. c. Without informing and taking permission from the Insurer, the Insured may not come to any agreement with a party that claims indemnity due to a loss covered by this policy or accept or acknowledge his responsibility against these parties in whole or in part, may not indemnify them or make any payment to the account of indemnification. If otherwise cases are determined the Insured loses all his rights due to the insurance and may not make any use of the insurance protection. d. In relation with all indemnification claims that constitute the subject of this policy and on the condition to release restrictions put on assets of the Insured, the Insurer, following his own evaluation, has absolute discretion on waiting for conclusion of the claim with a certain court decision or come to an agreement with the claiming party over an amount and on an appropriate time of his discretion. 6. Continuity Discount In case the policy is continually renewed, continuity discount is applied over tariff prices valid on the date the renewal policy is issued, on the rations stated below. - 1 st Renewal : 5% - 2 nd Renewal : 10% - 3 rd Renewal : 15% - 4 th Renewal : 20% - 5 th Renewal and sequent renewals: 25% No continuity discount is made in below situations. - An indemnification payment is made as per the policy - A damage file has been opened as per the policy - A new policy has been issued after intermitting the policy - The first year for policies from other insurance companies

6 7. Other Conditions a. In case of death of the Insured, the Insurer will provide in favor of legal heirs of the Insured, in relation to liabilities of the Insured and within framework of this policy. However, for this it is necessary that the legal heirs in question should not have renounced their inheritances, should obey the conditions and exceptions in this policy and carry out their responsibilities herein, as if they were insured. b. This policy is being issued, accepting that there is no disciplinary proceeding on the Insured by the related professional chamber, there is no tax examination on him and no reports of any such examination or there is no such proceeding within the Insured s knowledge. Otherwise the Insurer will reserve his right to cancel the policy or make amends in policy conditions, as per General Conditions for Professional Liability Insurance. c. This policy may be annulled with 30 days prior notification from the Insurer or the Insured. As the annulment notification will be sent to the parties last known address with certified mail, it will be deemed to have been notified at the end of post delivery time. d. The policy ends on the finishing date stated on it; procuring an insurance coverage for a new term will only be possible after agreement between the parties on this matter. e. This policy enures on the condition that the Insured is a TÜRMOB (Union of Chambers of Certified Public Accountants of Turkey) member. 8. Other Insured Persons If a liability that is covered with this insurance is also covered with another insurance, this insurance will constitute a joint insurance together with the other insurances. In every case, if there is more than one policy issued by Anadolu Sigorta, the one stating the higher coverage limit is taken into account and Anadolu Sigorta s responsibility will be up to this limit in terms of all indemnity claims. CLAUSES PREMIUM PAYMENTS AND POLICY ANNULMENT CLAUSE If it is decided that all insurance premium will be paid in installments, the first installment (advance payment) should be paid as soon as the contract is made, and against policy submittal, at the latest. Unless decided otherwise, responsibility of the insurer will not start even the policy is submitted. In cases wherein it is agreed by the Insurant that the first installment (advance payment) or whole amount will be paid with credit card instead of in cash as per his selection and request and a time will be allowed for collection of this amount from the credit card until the underwrite, liability of the insurer commences when the first installment (advance payment) or the whole amount is drawn from the credit card. Payment place for the insurance premium is any Branch of Türkiye İş Bankası and agencies of Anadolu Sigorta or that have represented Anadolu Sigorta while establishing the agreement.

7 Premium payments are made in cash against bank receipts or vouchers. Together with this, payments can be made over a credit card instruction to the agency or using invoice instruction method in interactive transactions of Türkiye İş Bankası. Payments made to places and over methods other than stated above do not dispose premium debts. In case it is agreed that the Insurant will pay the insurance premium or the insurance premium will be paid in installments, if the Insurant does not pay the advance payment or any of the installments, of which the absolute maturity dates are sated on the policy, until maturity date, He will go into default. In case the Insurant goes into default over his premium debts, provisions of the Code of Obligations are applied and the agreement is cancelled as per 3 rd item in 107 th Article of the Code of Obligations, either not requiring any time extension or notice of cancellation. The part of the item of Payment of Insurance Fees and Commencement of the Insurer s Liability of the General Conditions attached to this policy, which regulates default, has been amended as In case there is default in premium debt, provisions of the Code of Obligations are applied, as stated in the statement of Undersecretariat of Treasure, with the date and the number In case the agreement is cancelled due to default in premium debts, the premium corresponding to the valid insurance days, wherein liability of the insurer has continued, is calculated and returned to the Insurant. When the risk realizes, part of the premium installments that have not yet matured, which do not exceed the indemnification amount the insurer has to pay, become due and payable. IMPORTANT WARNING Policy Scope: Anadolu Anonim Türk Sigorta Şirketi provides the assurances being stated in this policy based on own statements of the Insurant and the Insured, and relying on accuracy of these statements, within framework of the general conditions, special conditions and clauses listed on the policy and given to the Insurant with the policy. This policy and the insurance coverage being provided for the Insured are limited with the matters, which are stated in the policy and general and special insurance conditions to be included with the coverage. No case which is out of the cases expressly projected to be within coverage scope is in any account within insurance protection, even it is not counted in cases out of insurance coverage. You may make your Insurance Premium payment at; - Our agency, against receipt or with credit card instruction, - Using invoice instruction method in interactive transactions of Türkiye İş Bankası, - Through Branches or Türkiye İş Bankası, - Directly to Anadolu Sigorta. When damage indemnity is paid, the whole remaining premium debt is deducted from the indemnity. Documenting A Payment:

8 It is necessary to submit to our company all receipts and such vouchers which are issued for you against your payments, before payment for your damage. You can transmit your suggestions to us via the Information Line part in our website;