Conditions of November 2003 GA 2000:3 Global Liability Insurance Moderna Försäkringar AB Moderna Försäkringar Sak AB www.modernaforsakringar.se
General Insurance Conditions, Global Liability Insurance This being a translation, the original Swedish wording shall always prevail. The Insurance cover provided is in accordance with the Insurance Policy. These conditions form part of a series of conditions for Commercial and Industrial Insurance which thus affects the numbering. General Terms and Conditions of Contract and Definitions and Explanations (AB-DF) have been printed separately and shall form the basis of any Contract of Insurance effected hereon. If the insurance policy, AB-DF and these insurance conditions contain conflicting undertakings or terms, the wording in the insurance policy shall take preference over the commercial terms, which in turn take preference over AB-DF. An asterisk (*) indicates that the word, term or expression is defined in Definitions. Contents Page III Liability insurance 3-7 1 The Insured and the Insured s activities 3 2 When the insurance applies 3 3 Where cover is provided 3 4 Cross liability 3 5 Local liability insurance 3 11 Extent of cover 4 12 What is not covered by the insurance 4-6 22 Sum insured. Maximum indemnity 6 23 Deductible 6 24 Cancellation of the insurance 6 25 Definitions 7
LIABILITY INSURANCE 1 The Insured and the Insured s activities The Insured* Insured s activities Cover for an additional company or activity Increased risk Property liability The insurance applies to the policyholder and other insured parties. The insurance applies unless otherwise stated in the insurance policy to the Insured s activities. Companies that are acquired or established during the policy period will automatically be covered by the insurance. The insurance cover takes effect on the date of the acquisition or establishment of the company. The policyholder is obliged to notífy Moderna Försäkringar of any such changes. However, additional activities or established companies in North America* will only be covered by the insurance following Moderna Försäkringar s written approval. Should additional companies and/or activities entail an increased risk, Moderna Försäkringar reserves the right to amend the conditions of insurance and the premiums during the policy period. The insurance also applies to the policyholder as owner, user or leaseholder of property used in the policyholder s business. 2 When the insurance applies The insurance applies to loss that occurs during the policy period as stated in the insurance policy. 3 Where cover is provided North America 4 Cross liability 5 Local liability insurance The insurance applies to loss that occurs anywhere in the world except in North America. If an agreement has been reached - in which case this is stipulated in the insurance policy - the insurance applies to personal injury or property damage that occurs in North America or to a claim for damages based on the liability laws in force in North America. The insurance covers loss which an insured company causes to another company insured under this contract. However, the sum insured stated in the policy shall not be exceeded. If local liability insurance, as a part of this global liability insurance, has been issued by Moderna Försäkringar for an insured company abroad, the insurance cover will be limited to the conditions of the global liability insurance if the scope of the conditions of the local liability insurance are wider a loss which cannot, or can only partly, be indemnified through a local policy, is covered by the global liability insurance in accordance with these conditions. For details of the sum insured and deductible for local liability insurance, see sections 22 and 23. 3
11 Extent of cover 11.1 Scope of cover The insurance applies to the Insured s liability for personal injury and property damage in accordance with the general rules governing the law of torts or in accordance with insured contracts*. The insurance also covers liability for financial and non-financial loss for which the Insured, as the keeper of a register, may be held liable in accordance with 23 of the Swedish Data Act. 11.2 Undertaking In the event of a claim for damages exceeding SEK 2,000 which may be covered by the insurance, Moderna Försäkringar undertakes in relation to the Insured to examine whether liability for damages exists negotiate with the party claiming damages present the insured party s case in legal proceedings or arbitration proceedings and pay the legal expenses or arbitration expenses which the Insured incurs or is ordered to pay and which cannot be recovered from the opposing party or any other party pay the damages which the insured party is obliged to pay. 12 What is not covered by the insurance 12.1 Financial loss The insurance does not cover such financial loss which is not a consequence of personal injury or property damage indemnified in accordance with these conditions. (see however section 11.1, paragraph 2). 12.2 Own property or The insurance does not cover loss of or damage to property in trust property owned by the Insured property rented, leased, borrowed or otherwise utilized by the Insured or on his behalf another party property or the part of the property which is damaged as a result of this part being incorrectly or inadequately dealt with or handled in connection with the fulfilment of an undertaking by the Insured property in transit, while being lifted or stored property due to theft and/or wilful damage. 12.3 Delivered product or The insurance does not cover property damage to a product or property delivered by the Insured or which the Insured has undertaken to deliver costs or loss in connection with examination, rejection, removal, recovery, reinstatement, repair, replacement or withdrawal of a delivered product or property loss which can be redressed by remedying faults, shortcoming or defects in a delivered product or property. The insurance does, however, apply to damage to a previously erected, sold or delivered product or property if the damage has occurred as a result of the fact that the Insured performs a contract which is not connected to the previous delivery agreement carries out maintenance or service work after the expire of the guarantee period. 12.4 Advisory* services The insurance does not cover loss resulting from error or inadequacy in advisory services not related to a delivered product. 12.5 Commitment, guarantee The insurance does not cover loss due to functional failure, lack of efficiency or inadequate performance of the delivered product or property to the extent that the liability for damages can only be based on an explicit or implicit promise or guarantee. 4
12.6 Intentional or foreseeable The insurance does not cover loss loss and disregard of intentionally caused by the Insured legislation arising under such circumstances that an insured company or its works management should have realized that a loss would most probably occur caused as a result of disregard of legislation or an official regulation. This exclusion does, however, not apply to loss to the extent that the Insured can be held responsible for an action taken by an employee who does not have a supervisory work or hold any other managerial function. 12.7 Occupational injury/ The insurance does not apply to occupational injury. The insurance does, how- Other Insurance ever, apply to injury occurring in Sweden, excluding the indemnity which is paid through industrial injury or social insurance or any other insurance or form of compensation or employment benefit. 12.8 Fines, penalties and The insurance does not cover fines, penalties, punitive damages or other econopunitive damages mic sanctions. 12.9 Environmental damage The insurance does not cover damage or injury consisting of or being a consequence of vibration, noise, heat, odour, light or any such disturbance smoke, soot, dust, vapour, gas or other air pollution the pollution of, or other effects on, ground, building, water resource, lakes or any other water area or the groundwater change in the groundwater level moisture or condensation. This exclusion does not relate to sudden and accidental damage outside the USA or Canada, which is due to a temporary fault - but not a fault in the planning or construction or choice of working method - being committed in the use, service or maintenance of a building, plant or appliance a fault which has suddenly and accidently arisen in a building, plant or appliance. This exclusion does not apply to damage which has been caused by a product delivered by the Insured. 12.10 Liability of building The insurance does not cover property damage caused by ground preparation proprietor work for which the Insured may be liable under the Swedish Environmental Damage Act or other provisions of laws pertaining to adjoining properties. 12.11 Use of motorised vehicles The insurance does not apply to loss, which is or may be covered by third in traffic party insurance for a motorised vehicle, and which has been caused by the use of a motorised vehicle in traffic to which the Swedish Traffic Act or corresponding foreign law applies when the motorised vehicle is used in a contest or race ground when the Insured or another person for whom the Insured is responsible, is the owner, user or driver of the motorised vehicle. 12.12 Aircraft, ships, boats and The insurance does not cover any loss when the Insured or a party for similar modes of transport whom the Insured is liable is the owner, user or driver of the following vessels aircraft, hovercraft or hydrocopter sail- or motor-powered ships and boats with regard to property damage resulting from collision with solid or floating objects caissons, pontoons, pontoon cranes, dredgers or objects being towed. 5
12.13 Aviation product The insurance does not cover loss caused by a delivered product which is incorporated in an aircraft or in ground equipment intended for use in traffic with aircraft. 12.14 Asbestos, PCB* or The insurance does not cover loss caused by asbestos, PCB or formaldehyde. formaldehyde 22 Sum insured. Maximum indemnity Moderna Försäkringar s undertaking to pay investigation, negotiation and court costs, arbitration costs, salvage expenses and compensation for damages is, for all losses occurring during the policy period, limited to the sum insured stated in the insurance policy. Series of losses* Local insurance policy 23 Deductible Local insurance policy If, in the case of series losses, the first loss in the series occurs during the policy period stated in the insurance policy, all the subsequent losses in the series are covered, even if the losses occur after the policy period has expired. All the losses in the series are regarded as having occurred during the policy period in which the first loss occurred. The sum insured includes the sums insured for local liability insurances according to 5. The deductible stated in the insurance policy shall in each instance of loss be deducted from the total indemnity paid for investigation, negotiation, legal proceedings, arbitration proceedings and salvage measures together with compensation for damages. In the case of losses resulting from a series of losses only one deductible shall be deducted, namely that deductible which applied at the time when the first loss occurred. The sum insured under a policy other than local liability insurance issued by Moderna Försäkringar constitutes a deductible in this global liability insurance. 24 Cancellation of the insurance Both the policyholder and Moderna Försäkringar have the right in the event of a loss to cancel the agreement with thirty (30) days notice. 6
25 Definitions Advisory service Delivered product Insured parties Insured contracts Local liability insurance North America PCB Series of losses By advisory service is meant giving advice and instructions execution of calculations, drawings and descriptions project management checks and inspections of material and buildings. The delivered product is deemed to mean a product or property which the Insured or other party on behalf of the Insured has sold, delivered, manufactured or undertaken to erect or has put into circulation in some other way. The insured parties in this insurance policy are the policyholder subsidiaries at the start of the policy period. By subsidiary is meant a company where the Insured s share of the votes exceeds 50 %. members of the board of directors and employees in the course of service with the policyholder or an insured company. Insured contracts are deemed to mean general regulations issued by a Swedish or corresponding foreign trade association within the spheres of activity of the Insured normal contract with SJ (Swedish State Railways) or other Swedish railway administration for loss caused by rolling stock, infringement of loading gauge, traffic on sidings or use of an uncontrolled level crossing a normal contract with a power supplier where the Insured has assumed liability in accordance with the law pertaining to electrical installations a normal agreement with a Swedish property owner on the right of use in relation to an assumption of the property owner s liability other agreements approved in writing by Moderna Försäkringar. The term local liability insurance refers to insurance that is issued by or on behalf of Moderna Försäkringar within the framework of the global liability insurance. North America is defined as the United States of America and Canada with their territories and possessions also including other areas where their jurisdiction is applicable. PCB stands for polychlorinated Biphenyl s. PCB is a chemical product marketed under a large number of trademarks. By series of losses is meant more than one loss, occurring during the policy period, resulting from the same cause, fault or defect. 7