FIRE EXTENSIVE CLAUSES

 

1.   ACCIDENTAL ERROR & OMISSION CLAUSE

 

This Policy extends to cover the Insured for an amount not exceeding Two percent (2%) of the sum insured hereby for any one item, in respect of inadvertent under-insurance or incorrect valuation by “bona fide” error, accidental omission to insure any extension or addition to buildings and/or contents (other than stock-in-trade if insured on a declaration basis) during the currency of this Policy.

 

This extension applies on condition that the insured undertakes to advise the company each quarter of any such errors and omissions, and to pay the appropriate additional premium therein, and in any event the total amount payable shall not exceed the sum insured under the Policy.

 

2.   ADJOINING BUILDING

 

Except where such is more specifically insured the item on the schedule of this policy extend to small outside buildings, extensions and annexes adjoining or communicating  with the building to which such items relates, subject to adequacy of the Sum Insured under the building item.

 

  1. ALL OTHER CONTENTS CLAUSE

 

It is agreed that the term ‘All Other Contents’ is understood to include:-

  1. Money and stamps where there is no money policy for an amount not exceeding the limit indicated below
  2. Documents, manuscripts and business books but only for the value of the materials as stationery, together with the cost of clerical labour expended in writing up, and not for the value to the information to the insured of the contained therein and not for an amount exceeding the limit indicated below in respect of any one document, manuscript or business book.
  3. Patterns, models, moulds, plans and designs for an amount not exceeding the limit indicated below in respect of any one pattern, model, mould, plan or design.

And so far as they are not otherwise insured:-

  1. Employees, pedal cycle, clothing, tools and other personal effects for an amount not exceeding the limit indicated below in respect of any one employee.
  • LIMIT KENYA SHILLINGS (In figures)
  • LIMIT KENYA SHILLINGS (In words)

 

 

  1. ALTERATION AND REPAIRS CLAUSE

 

This Policy extends to cover the Insured for an amount not exceeding 2% of the sum insured hereby for any one item, in respect of inadvertent under-insurance or incorrect valuation by “bona fide” error, accidental omission to insure any extension or addition to buildings and/or contents (other than stock-in-trade if insured on a declaration basis) during the currency of this Policy.

 

This extension applies on condition that the insured undertakes to advise the company each quarter of any such errors and omissions, and to pay the appropriate additional premium therein, and in any event the total amount payable shall not exceed the sum insured under the Policy.

 

 

5.   APPRAISEMENT CLAUSE

 

If the aggregate Claim for any one loss does not exceed Kenya Shillings Five hundred thousand only (Ksh.500,000/-) or Five percent (5%) of the Sum Insured whichever is the lesser amount by the item or items affected no special inventory of appraisement of the undamaged property shall be required.

 

If two or more buildings be included in a single item this provision shall apply to the range of buildings insured by this item.  For the purpose of this clause the term item, shall be held to apply to the Total Sum Insured on buildings and/or contents by the item or items affected.

 

 

  1. Architects Quantity Surveyors and Other Fees Clause

 

The insurance on a building under any item of this policy is declared to include Architects’, Quantity Surveyors’ and other fees for estimates, plans, specifications, quantities, tenders and supervision necessarily incurred in the reinstatement of replacement of the property consequent upon destruction or damage by any perils hereby incurred against excepting insofar as the Company elects to reinstate or replace wholly in or part any property so damaged or destroyed but in no case exceeding the amount of fees which is recoverable under the scales of fees published by The Board of Registration of Architects and Quantity Surveyors but subject to any amendment authorized by legislation applicable to the Republics of Kenya, Uganda and Tanzania.  It is understood and agreed that the amount payable in respect of such fees shall not include expenses incurred in connection with the preparation of the insured’s claim.

The maximum payable under this clause shall in no case exceed 10% of the claim amount payable under this policy, provided always that the total amount payable on the whole claim shall not exceed the total sum insured under the policy.

 

7.   BRANDED GOODS CLAUSE

 

In the event of a claim for loss or damage to the property hereby insured, it is hereby declared and agreed that any salvage of branded stock and/or merchandise, being the Insured’s own property or held by them in trust or on commission and/or goods sold but not delivered shall not be disposed of by sale to third parties without the consent of the Insured.  If such salvage is not disposed of by sale, then the salvage value will be assessed at their fair market value and the insured shall retain the salvage at the assessed price.

 

8.   BREACH OF WARRANTIES

 

The warranties and special memoranda attached to this policy shall apply to the items concerned individually as if each were insured by a separate policy.  The breach of any warranty or special memorandum shall void the policy only in respect of the items to which the breach applies and not in respect of the remaining items.

 

  1. CANCELLATION CLAUSE

 

This insurance may be at any time terminated by the company by sending fourteen (14) days notice by registered letter to the insured at his last known address and in such event the premium shall be adjusted pro-rata for the portion of the period the policy has been in force.  Similarly, the policy may be cancelled at the request of the insured by sending fourteen (14) days notice to the company and in such event the premium shall be adjusted on short period rates for the portion of the period the policy has been in force – but subject also to the terms of any Long Term Agreement if applicable.

Provided always no refund of premium shall be allowed under this policy upon cancellation if a claim has been admitted under this policy.

 

 

  1. CAPITAL ADDITIONS CLAUSE

 

The insurance by this policy extends to cover alterations, additions and improvements (but not appreciation in value in excess of the sums insured) to property specified herein, for an amount not exceeding in the aggregate Ten percent (10%) of the sum insured on such property it being understood that the insured undertakes to advise the Company each quarter of any such alterations, additions and improvements and to pay the appropriate additional premium therein.

 

 

11.    CHANGE OF TEMPERATURE

 

It is declared and agreed that the company is liable for loss or damage to stocks, which may be caused by change of temperature or leakage of ammonia or other refrigerant resulting from the total or partial destruction or disablement of refrigeration plant, by any of the perils.

 

12.   CLAIMS PREPARATION COSTS CLAUSE

 

The liability of the Insurers under this Policy is limited to the reasonable costs incurred of salaries and wages payable to the insured’s own employees and/or costs of materials used and/or fees payable by the Insured to their usual Auditors, in producing and certifying any particulars or details as may be required by the insurers under terms and conditions relevant to this Policy.

 

Provided that the amount payable under this extension does not exceed 10% of the amount of claim payable under this Policy, but in any event the total amount payable shall not exceed the sum insured under the Policy.

 

13.   COMPUTER RECORDS CLAUSE

 

It is agreed that the cost of computer records as stationery, but excluding the cost of reinstating the records included in (b) of the All Other Contents Clause.

 

  1. CONSULTING ENGINEERS FEE CLAUSE

 

The sum insured on contents/machinery by this policy, is declared to include consulting engineer’s fees necessarily incurred in the reinstatement or replacement of the said contents/machinery following destruction or damage by any perils hereby insured against (excepting in so far as the Company elects to reinstate or replace wholly or in part any property so damaged or destroyed) but in no case exceeding the amount of fees which are recoverable under the scale of fees published by The Board of Registration of Architects and Quantity Surveyors.

 

The maximum payable under this clause shall in no case exceed 10% of the claim amount payable on the whole claim shall not exceed the total sum insured under the policy.

 

  1. COST OF DEMOLITION (APPLICABLE TO BUILDINGS ONLY)

 

The insurance on a building under any item of this policy is declared to include costs, necessarily incurred by the insured in respect of the demolition of buildings and or the removal of debris from the site following destruction of or damage to the property insured by fire or any other peril thereby insured against.

 

The maximum payable under this clause shall in no case exceed 10% of the claim amount payable under this policy, provided always that the total amount payable on the whole claim shall not exceed the total sum insured under the policy.

 

  1. COST OF DEMOLITION AND CLEARING AND ERECTION OF HOARDING CLAUSE (NOT APPLICABLE TO STOCKS)

 

The insurance by this policy is extended to include costs, necessarily incurred by the insured, in respect of the demolition of buildings and machinery and or removal of debris from the site and in providing erecting and maintaining any street pavement hoarding required during demolition, site clearing and/or building operations following destruction of or damage to the property insured by fire or any other perils hereby insured against.

 

The maximum payable under this clause shall in no case exceed 10% of the claim amount payable under this policy, provided always that the total amount payable on the whole claim shall not exceed the total sum insured under the policy.

 

  1. COST OF RE-ERECTION CLAUSE

 

The insurance by this policy extends to include the cost of re-erecting, fitting and fixing machinery and plant in consequence of destruction or damage by any of the perils hereby insured against, provided that the total amount recoverable under any item of the policy shall not exceed the sum insured thereby.

 

18.    CONTRACT PRICE CLAUSE

 

It is hereby declared and agreed that in the event of loss or damage in respect of goods sold but not delivered for which the Insured is responsible and with regard to which under the conditions of sale, the sale contract is cancelled by reason of the fire or any perils hereby insured against, either wholly or to the extent of the loss or damage, the liability of the Company shall be based on the contract price and for the purpose of average, the value of goods to which the clause would in the event of loss or damage be applicable shall be ascertained on the same basis.

 

19.   CROSS LIABILITY

 

When more than one party comprise the Insured each of the parties for the purpose of this section shall be considered as a separate and distinct unit and the word “Insured ” shall be considered as applying to each party in the same manner as if separate Policy had been issued to each of the said parties and the Company hereby agree to waive all rights of subrogation or action which the Company may have or acquire against any of the aforesaid parties arising out of any accident in respect of which any claim is made hereunder:-

 

20.   DAY ONE BASIS – ESCALATION CLAUSE DAY ONE BASIS – (NON ADJUSTABLE)

 

It is hereby declared and agreed that settlement for loss under this policy is on Reinstatement basis as per the terms of the reinstatement value clause, save as provided for under the following provisions.  The Maximum settlement for loss under this policy shall not exceed …………………….(insert percentage) of the declared value.  Reinstatement settlement is provided under this clause for losses occurring on any day of the period of insurance regardless of the fluctuating nature of the inflation rate, provided the “declared value” is correct on “Day One” of the cover but subject to a maximum as per the specified percentage aforementioned.

 

However, Reinstatement basis of settlement as amended by the terms of this clause is applicable to property insured under Items  ……….of the Policy:

 

Basis of loss settlement

 

The basis upon which the amount payable under each of the said Items is to be calculated shall be the reinstatement of the property destroyed or damaged, subject to the following special provisions and subject also to the terms and conditions of the Policy except in so far as the same may be varied hereby.

 

For the purpose of the insurance under this extension “reinstatement” shall mean the carrying out of the after mentioned work namely:-

 

(a) Where property is destroyed, the rebuilding of the property if a building, or in the case of other property, its replacement by similar property, in either case in a condition equal to but not better or more extensive than its condition when new;

(b) Where property is damaged, the repair of the damage and restoration of the damaged portion of the property to a condition substantially the same as but not better or more extensive than its condition when new.

 

The provisions of Day One clause (Non – adjustable):

 

  1. The Insured having stated in writing the declared value incorporated in each Item to which this memorandum applies, the premium has been calculated accordingly.

 

“Declared Value” shall mean the Insured’s assessment of the cost of reinstatement of the Property insured arrived at in accordance with the opening paragraph of the Reinstatement value clause but at the level of costs applying at the inception of the Period of Insurance ignoring inflationary factors which may operate subsequently together with; insofar as the insurance by the Item provides due allowance for:

 

(i)       The additional cost of reinstatement to comply with Public Authority requirements;

 

(ii)      Professional fees;

 

(iii)     Removal of debris costs.

 

  1. At the inception of each period of insurance, the Insured shall notify the Company of the Declared Value of the Property insured by each of the said Item(s). In the absence of such a declaration the last amount declared by the Insured shall be taken as the Declared Value for the ensuing period of insurance.

 

  1. Notwithstanding any general indication or endorsement to the contrary, the following wording applies to Special Provisions of the Reinstatement Memorandum;

 

(a)      Each Item insured under this Memorandum is declared to be separately subject to the following condition of average namely;

 

If at the time of loss the Declared Value of the property covered by such item be less than the cost of reinstatement (as defined in paragraph 1 above) at the inception of the Period of Insurance then the Company liability for any loss hereby insured shall be limited to the proportion thereof which the declared value bears to the cost of reinstatement (as defined in paragraph 1 above).

 

(b)      Where by reason of any of the above special provisions no payment is to be made beyond the amount which would have been payable under the Policy if this memorandum had not been incorporated therein the rights and liabilities of the Company and the Insured in respect of the destruction or damage shall be subject to the terms and conditions of this section including any condition of average therein, except that the sums insured shall be limited to that proportion thereof which the Declared Value (as defined in paragraph (2) above bears to the Cost of Reinstatement.

 

Calculation of premium

 

The consideration to the Insurer for inclusion of this clause shall be the premium generated by applying the policy rate to fifty percent (50%) of the amount  generated by applying the specified percentage of inflation to the declared value.

 

21.   DAY ONE BASIS –  ESCALATION CLAUSE (ADJUSTABLE)

 

It is hereby declared and agreed that settlement for loss under this policy is on Reinstatement basis as per the terms of the reinstatement value clause, save as provided for under the following provisions. The Maximum settlement for loss under this policy shall not exceed ……………………. (insert percentage) of the Declared value.  Reinstatement settlement is provided under this clause for losses occurring on any day of the period of insurance regardless of the fluctuating nature of the inflation rate, provided the “Declared Value” is correct on “Day One” of the cover but subject to a maximum as per the specified percentage as aforementioned.

 

However, Reinstatement basis of settlement as amended by the terms of this clause is applicable to property insured under Items ………. of the Policy:

 

  1. Declared Value and cost of Reinstatement

 

At the inception of each Period of Insurance, the Insured shall notify the Company of the Declared Value of the property insured by each Item.

 

Declared Value is the sum in brackets in front of each sum insured in the same row as per the policy schedule and is the Insured’s assessment of the Cost of Reinstatement of the Property insured arrived at in accordance with paragraph B (a) at the level of costs applying at the inception of the Period of Insurance (ignoring inflationary factors which may operate subsequently) together with, in so far as the insurance by the Item provides, due allowance for: –

 

(i)       the additional cost of reinstatement to comply with Public Authorities requirements;

(ii)      professional fees;

(iii)     debris removal costs.

 

Basis of Loss settlement

 

The basis upon which the amount payable under each of the said Items is to be calculated shall be the reinstatement of the property destroyed or damaged, subject to the following special provisions and subject also to the terms and conditions of the Policy except in so far as the same may be varied hereby.

 

For the purpose of the insurance under this extension “reinstatement” shall mean the carrying out of the after mentioned work namely: –

 

(a)      Where property is destroyed, the rebuilding of the property if a building, or in the case of other property, its replacement by similar property, in either case in a condition equal to but not better or more extensive than its condition when new;

 

(b)      Where property is damaged, the repair of the damage and restoration of the damaged portion of the property to a condition substantially the same as but not better or more extensive than its condition when new.

 

Adjustment of premium

 

The consideration to the Insurer for inclusion of this clause shall be the premium generated by applying the policy rate to fifty percent (50%) of the amount generated by applying the specified percentage of inflation to the declared value.

 

At the end of the period, then Insured is required to declare the actual value achieved as at that time.  On so doing, the aforementioned method of calculation is applied to the “new Declared Value” and the additional premium charged, or refund allowed as the case may be, to the Insured, by comparing the amount generated with the amount charged for this clause at the inception of the period in question.

 

If the Insured fails to declare, then inflation as per the specified percentage is deemed to have operated and no adjustment is due under this clause. Nonetheless, this does not prejudice the Insurer’s rights with regard to average in case of any loss settlement.

 

22.   DEBRIS REMOVAL CLAUSE

 

It is hereby declared and agreed that cover by this Policy extends to include costs and expenses reasonably incurred by the insured as a result of damage in:-

 

  1. Removing debris or
  2. Dismantling and/or demolishing

III.   Shoring up or propping of the portion or portions of the

property and/or

  1. Removing debris of contents of any premises forming part of the

property, such contents not being the property of the Insured.

 

Subject to a limit of 5% of the sum insured.

 

23.   DEDUCTIBLE (EXCESS) CLAUSE

 

It is hereby declared and agreed that with effect from (Date)……………. a deductible of Kshs. ———— shall apply on any one loss or losses payable under the Policy.

 

24.    DEFINITION OF BUILDINGS

 

Buildings and outbuildings inclusive of landlord’s fixtures and fittings attached thereto and all inside and outside appurtenances attached therein and thereon and inclusive of boundary walls, gate and fences, foundations, fire escapes and steps and stone flagging and underground electricity distribution system.

 

  1. DESIGNATION OF PROPERTY

For the purpose of determining where necessary the column heading under which any property is insured the Company has agreed to accept the designation under such property has been entered in the insured’s books.

 

26.   DOCUMENTS REMOVAL CLAUSE

 

Notwithstanding anything herein stated to the contrary, the insurance by this policy applying wholly or partly to deeds and other documents (including stamps thereon), manuscripts, plans and writing of every description and books (written and printed) extends to cover such property for an amount not exceeding 10 per cent of the value thereof, whilst temporarily removed to any premises not in the Insured occupation whilst in transit by road, rail or inland waterways, anywhere in Kenya.

 

27. EARTHQUAKE COVER ONLY

It is agreed and declared that the indemnity provided by this policy shall not apply to the property by Item… in the Schedule of the Property insured under this policy unless the loss or damage to such property is caused by earthquake.

 

28.   EARTHQUAKE AND VOLCANIC ERUPTION

 

In consideration of the payment of an additional premium, the Company agrees notwithstanding what is stated in the printed conditions of this Policy to the contrary that this insurance covers loss or damage occasioned by or through or in consequence of Earthquake or Volcanic Eruption

 

29.   EARTHQUAKE DEDUCTIBLE

 

It is hereby declared and agreed that the Company shall not be liable for 2% of the Sum Insured but subject to a maximum of Kshs5,000,000/- in any one location in respect of “Earthquake Fire and Shock Risks”.

 

Subject otherwise to the Terms, Exceptions and Conditions of the Policy.

 

30.   EIGHTY FIVE (85%)  CONDITION OF AVERAGE

 

When a sum insured is declared to be subject to the special condition of average then, if such sum shall at the breaking out of any fire or at the commencement of any destruction of or damage to the property by any other peril hereby insured against, be less than 85% of the value of the Property insured in that amount, the Insured shall be considered as being his own insurer for the difference between the sum insured and the full value of the Property insured at the time of such destruction or damage and shall bear a rate able share of the loss accordingly.

 

31.   EIGHTY FIVE (85%)  CONDITION OF AVERAGE – IN CONJUCTION WITH  REINSTATEMENT OF VALUE

 

In the event of the Property insured under each of the above items/columns being destroyed or damaged the basis upon which the amount payable under each of the said items/column of the Policy is to be calculated shall be the reinstatement of the property destroyed or damaged, subject to the following special provisions and subject also to the terms and conditions of the Policy except in so far as the same may be varied hereby.

 

For the purpose of the insurance under this extension “reinstatement” shall mean:-

 

The carrying out of the after-mentioned work, namely:-

 

  1. Where property is destroyed, the rebuilding of the property if a building, or in the case of other property, its replacement by similar property, in either case in a condition equal to but not better or more extensive than its condition when new.

 

  1. Where property is damaged, the repair of the damage and the restoration of the damaged portion of the property to a condition substantially the same as but not better or more extensive than its condition when new.

 

SPECIAL PROVISIONS

 

  1. The work of reinstatement (which may be carried out upon another site and in any manner suitable to the requirements of the Insured subject to the liability of the Company not being thereby increased) must be commenced and carried out with reasonable dispatch otherwise no payment beyond the amount which would have been payable under the Policy if this extension had not been incorporated therein shall be made.

 

  1. When any Property insured under this extension is damaged or destroyed in part only then liability of the Company shall not exceed the sum representing the cost which the Company could have been called upon to pay for reinstatement if such property had been wholly destroyed.

 

  1. No payment beyond the amount which would have been payable under the Policy if this extension had not been incorporated therein shall be made until the cost of reinstatement shall have been actually incurred.

 

  1. Each item insured under this extension is declared to be separately subject to the following condition of Average, namely:-

 

If at the time of reinstatement the sum representing Eighty Five per cent (85%) of the cost which would have been incurred in reinstatement if the whole of the property covered  by such item/column had been destroyed exceeds the sum insured thereon at the breaking out of any fire or at the commencement of any destruction of or damage to such property by any other peril hereby insured against, then the Insured shall be considered as being his own insurer for the difference between the sum insured and the sum representing the cost of reinstatement of the whole of the property and shall bear a rate able proportion of the loss accordingly.

 

  1. No payment beyond the amount which would have been payable under the Policy if this extension had not been incorporated therein shall be made if at the time of any destruction or damage to any Property insured hereunder such property shall be covered by any other insurance effected by or on behalf of the Insured which is not upon the identical basis of reinstatement set forth herein.

 

  1. Where by reason of any of the above Special Provisions no payment is to be made beyond the amount which would have been payable under the Policy if this extension had not been incorporated therein the rights and liabilities of the Company and the Insured in respect of the destruction or damage shall be subject to the terms and conditions of the Policy, including any Condition of Average therein, as if this extension had not been incorporated therein.

 

32.   ESCALATION CLAUSE

 

In consideration of the payment of an additional premium amounting to 50% of the premium produced by applying the specified percentage to the first or the annual premium as appropriate on the undernoted Items, the basic sums insured thereby shall, during the Period of Insurance, be increased each day by an amount representing 1/365th of the specified percentage increase per annum.

 

 

Item No. Description of the Item Specified percentage
 

 

 

 

 

 

 

   

 

 

Unless specifically agreed to the contrary provisions of this Clause shall only apply to the sums insured in force at the commencement of each Period of Insurance.

 

At each renewal date the Insured shall notify the Company:-

 

  • The sums to be insured under each Item above, but in the absence of such instructions the sums insured by the above Items shall be those stated in the Policy (as amended by any endorsements effective prior to the aforesaid renewal date) to which shall be added the increases which have accrued under this Clause during the Period of Insurance up to that renewal date, and

 

  • The specified percentage increases required for the forthcoming Period of Insurance, but in the absence of instructions to the contrary prior to renewal date, the existing percentage increase shall apply for the Period of Insurance from renewal.

 

All the conditions of the Policy except insofar as they may be hereby expressly varied shall apply as if they had been incorporated herein.

 

33.   EXPEDITING EXPENSES CLAUSE

 

At the option of the Insured this policy is extended to cover any extra costs incurred in respect of expenses, delivery, airfreight, overtime and holiday rates of pay in connection with reinstatement, rectification, repair or replacement, necessarily incurred following destruction of or damage to property by a peril hereby insured against, subject however to a limit of 25% of the amount which the repair or replacement would have cost if the extra expenses had not been incurred. In any event the total amount payable shall not exceed the sum insured under the Policy.

 

34.   FIRE AUTOMATIC SPRINKLER INSTALLATION

 

The insured hereby warrants that there is in the insured premises approved automatic sprinkler installations together with details lodged with the company and that during the currency of this policy such installations and appliances shall be kept in proper working order with a sufficient supply of water. No liability shall attach to the company under this policy unless the terms of this warranty are compiled with.

 

35.   FIRE COVER ONLY

 

It is declared and agreed that the indemnity provided by this Policy shall not apply to the property described by Item No. ………… unless the loss or damage to such property is caused by Fire.

 

36.    FIRE EXTINGUISHING APPLIANCES

 

The premium for this policy has been calculated after taking into consideration the standard of fire extinguishing appliances, at the described premises, which may have been installed at the commencement of this insurance (or which may be installed subsequently at the request or with the knowledge of the insurers)

 

In consideration of the insured undertaking to:

 

  1. Cause a regular inspection of the appliances for the purpose of ascertaining that they are in all respects maintained in proper working order.
  2. Remedy promptly any defect whether disclosed by any such inspection or otherwise and
  • Advise the insurers of any reduction in the standard of the fire extinguishing appliances.

 

This policy shall not be invalidated by any defect in any of the said appliances due to any circumstances unknown to or beyond the control of the insured.

 

37.   FIRE BRIGADE CLAUSE

 

  • Following an outbreak of fire at or adjacent to the premises at which the property insured is situated, the Company will reimburse the Insured with costs reasonably incurred in preventing, controlling or extinguishing such fire affecting (or threatening to affect) the property insured in circumstances which have (or would have) given rise to a valid claim under the Policy.

 

  • If any Municipality or Local Authority is duly empowered to charge the Insured, by virtue of their ownership or occupation of the property, with the cost of Fire Brigade services rendered in extinguishing a fire or with the cost of water used in such extinguishments, the Insurers will reimburse the charges so raised to the Insured.

 

Provided that the total amount recoverable under any term of this Policy does not exceed the sum insured thereby.

 

38.    FOUNDATIONS CLAUSE

 

It is hereby declared and agreed that the value of foundation is excluded from the Definition of the Buildings clause.

 

39.    FUEL AND TANKS CLAUSE

 

It is hereby declared and  agreed that the sum insured in respect of Machinery and Plant  is extended to  include miscellaneous fuel and other tanks and their contents in the open.

 

40.   GENERAL INTEREST CLAUSE

 

Certain of the property may be the subject of agreement that require either:-

 

  1. That the interest of another party is noted in the insurance, or
  2. That the property in question is insured in the joint names of the Insured and another party or parties.

 

Such requirements are deemed to be complied with within the terms of this Policy to the extent required in any such agreements.

 

The nature of the interest or joint insurance shall be disclosed in the event of:-

 

  1. Damage to property which is the subject of such agreements of

 

41.   GOODS HELD IN TRUST CLAUSE

 

It is hereby declared and agreed that cover under this Policy is extended to include goods held in trust and for which the Insured may be legally responsible for an amount not exceeding Kshs. ————————— any one event.

 

42.   IMPACT DAMAGE CLAUSE

 

It is hereby declared and agreed that special perils G “ IMPACT ” incorporated under this policy is extended to include damage by own vehicles, aircraft and animals.

 

43.   IMPORT DUTY INCREASE CLAUSE

 

It is hereby agreed that in the event of any increase in the replacement value of the Plant and Machinery insured by this policy due to increased import duties, the insured is held covered hereby for the amount of such increases in excess of, but not exceeding 20% of the sum insured on the property covered, it being understood that the insured undertakes to advise the company each quarter of any such increases, and to pay the appropriate additional premium therein.

 

  1. INTERNAL REMOVAL CLAUSE

 

It is understood and agreed that in the event of removal of property from one building to another within the same location at any of the aforesaid locations specified in the schedule of the policies being inadvertently not advised to the Company the insurance on such property shall follow removal the necessary adjustments in sums insured and premium being made as far from the date of removal as soon as the oversight is discovered.

 

45.   JURISDICTION CLAUSE

 

Notwithstanding anything contained herein to the contrary it is agreed that the indemnity provided herein shall not apply to:-

 

  1. Compensations or damages in respect to judgements delivered or obtained in the first instance otherwise than by a Court of competent jurisdiction within the Republic of Kenya.

 

  1. Costs and expenses of litigation recovered by any claimant from the Insured which are not incurred in and recoverable in the Republic of Kenya.

 

Subject otherwise to the terms, conditions and exceptions of this Policy.

 

46.   LANDLORDS CLAUSE

 

Anything done by the occupier of a building herein described whereby the danger of destruction or damages is increased without the authority or knowledge of the insured, shall not prejudice the position of the insured under this policy provided that, the insured will immediately on becoming aware there of give notice in writing to the company and on demand pay, such additional premium as the company may require.

 

47.    LANDLORD’S FIXTURES & FITTINGS CLAUSE

 

The insurance by this policy is extended to include all landlord’s fixtures and fittings in or on the buildings insured.

 

48.   LOSS REDUCTION CLAUSE

 

The indemnity provided by this Policy includes cost and expenses incurred in:

 

  1. Preventing or reducing losses to the property in the event of imminent damage by any of the perils and
  2. Reducing losses to the property on or after the occurrence of any of the perils

 

Provided that such costs and expenses will not exceed the amount of loss thereby avoided, but in any event the total amount payable shall not exceed the sum insured under the Policy.

 

49.   MIS-DESCRIPTION

 

It is understood that this insurance shall not be prejudiced by any alteration or mis-description of occupancy provided that the insured shall notify the company of any such alteration or mis-description as soon as the same come to their knowledge and shall on demand pay as additional premium, if required, from the date of the alteration of occupancy.

 

50.   MUNICIPAL PLANS SCRUTINY FEE

 

The insurance on a building under any item of this policy is declared to include Municipal Plans Scrutiny Fees, provided that the total amount recoverable under any item of the policy shall not exceed the Sum Insured thereby.

 

51.    NO SMOKING WARRANTY

 

Warranted that as a condition of this Policy there shall be no smoking within the areas designated as “NO SMOKING AREAS.”

 

52.   OTHER TENANTS

 

It is hereby declared and agreed that should a tenant of the insured in the within insured building do or omit to do, without the knowledge of the insured, anything which would vitiate the within policy conditions and/or warranties, this policy will not be held to be void on that account provided that the insured shall notify to the company the happening or existence of such act or omission as soon as the same shall on reasonable demand pay the additional charge for any increase of hazard thereby created according to the established scale of rates.  For the item such increased hazard may be or shall have been assumed by the company during the continuance of this insurance.

 

53.   OUTSTANDING DEBIT BALANCES CLAUSE

 

Loss of book debts sustained by the Insured as a result of damage to the Insured’s records of outstanding debit balances, adjusted for:-

(a)  bad debts

(b)  amounts debited (or invoiced but not debited) and credited (including credit notes and cash not passed through the  books) to customers accounts in the Period between the end of the said financial Period and the date of the damage.

(c)  any conditions of the trade which had or would but for the damage have had an effect on the Insured’s business.

 

So that the amount so adjusted shall represent as nearly as may be reasonably practicable that which would have been obtained had the damage not occurred.

 

The amount payable shall not exceed:-

 

(i)  the difference between the outstanding Debit Balances and the total of the amounts received or traced in respect  thereof.

 

(ii) additional expenses reasonably incurred in the tracing and establishing of customers’ balances after Damage.

 

It is a condition precedent to liability under this extension that the Insured shall provide reasonable proof to the Company of the amount Outstanding Debit Balances at the site of the Damage at the end of the Financial Period immediately preceding the Damage.

 

54.    PAINTS AND PAINTING SOLUTIONS WARRANTY

 

Warranted that where paints or solutions having a flash point of 90 degrees Fahrenheit or under are applied by means of a spraying apparatus, the following regulations shall be observed;

 

  1. No paints or solutions shall be applied except in a room or cabinet specially constructed for the purpose of fire resisting material.

 

  1. In every room or cabinet there shall be provided and maintained exhaust and inlet ventilation which shall;

 

(a)      in the case of each room be such as to ensure that the air of the room shall be renewed not less than thirty times in each hour or

 

(b) in the case of each cabinet be such as to produce through the working opening an inward air velocity  measured at any point across the plane of the opening of at least 75 lineal feet per minute.

 

  1. The exhaust of the ventilation shall be let directly to the open air, and all ducts trunks, or enclosures shall be constructed of fire resisting materials with the interior having a flat surface and they shall be fitted with doors for cleaning purposes.

 

  1. The ventilating apparatus shall be kept in full operation for a Period of not less than 5 minutes after the cessation of the spraying being carried on.

 

  1. In all rooms the ventilation outlets shall be placed not more than 18 inches above the floor level, and all ventilation inlets shall be placed not less than 7 feet above the floor level.

 

  1. No naked flame fire or open light shall be used or taken inside any room or cabinet in which paints or solutions are used, and the engine of any vehicle shall not be in motion under its own power or any room or cabinet.

 

  1. Approved extinguishers either of “B” type (Foam) or “E” Type (Carbon Dioxide) having a capacity of two imperial gallons shall be provided for each room or cabinet and there shall be at least one such extinguisher for each spraying apparatus installed.

 

  1. The following conditions shall be observed as regards electrical apparatus or equipment in any room or in any cabinet in which paints or solutions are used:

 

(a)      No generating, switchboard, transformers, motor generator, converter, fuseboard, fuse, portable radiator or heater shall be placed therein.

 

(b)      No motor, motor starter regulator or switch shall be allowed therein unless it is completely closed so as to be flame proof and vapour proof.

 

(c)      all electric wiring shall be protected throughout by metal conduit, the junctions of which shall be screwed together.

 

(d)      electric lamp bulbs shall be fitted with vapour proof glass enclosures.

 

  1. Any stationary metal tanks used for storing paints or solutions, any metal pipe lines used for the supply of such paints or solutions shall be effectively bonded to earth.

 

  1. cotton waste, rags or similar materials which have been in use for cleaning purposes shall be deposited in metal receptacles and removed from the premises daily.

 

  1. All places where any deposit can accumulate must be cleaned at least once in every week with stiff fibre or other non-ferrous brushes or scrapers and the residue placed in water.

 

  1. Only such quantities of paints or solutions required for work in one day shall be taken into or remain in any room or cabinet and such quantity when not in use shall be kept in a metal cupboard.

 

  1. All drums, cans all similar vessels containing paints or solutions shall be kept securely closed when not in actual use and shall after the contents have been expended, be removed from the premises without delay.

 

Except as hereby expressly varied all terms conditions and warranties of this Policy continue to apply.

 

 

  1. PAYMENT ON ACCOUNT CLAUSE

 

It is understood and agreed that in the event of liability being admitted in respect of the claim under this policy the insured will without prejudice to their rights under this insurance make payment or payment on account as may be required by the insured in respect of such loss/claim.

 

56.   PROPERTY IN THE OPEN

 

It is hereby declared and agreed that cover under this Policy is deemed to be extended to property, which by their nature are normally stored in the open and/or outbuildings for an amount not exceeding Kshs. —————————.

 

57. PUBLIC AUTHORITIES

 

The insurance by this policy extends to include such additional costs of reinstatement of the destroyed or damage property thereby insured as may be incurred solely by reason of the necessity to comply with building or other Regulations under or framed in pursuance of any Ordinance or with By-Laws of any Municipals or Local Authorities provided that:-

 

(I)       The amount recoverable under this extension shall not include:-

 

  1. The cost incurred in complying with any of the aforesaid regulations or By-Laws
    1. In respect of destruction or damage occurring prior to the granting of this extension;
    2. In respect of destruction or damage not insured by the policy
  • Under which notice has been served upon the insured prior to the happening of the destruction or damage;
  1. In respect of undamaged property or undamaged portions of the property.
  1. The addition cost that would have been required to make good the property damaged or destroyed to a condition equal to its condition when new, had the necessity to comply with any of the aforesaid Regulations or By-Laws not arisen.
  2. The amount of any rate tax duty development or other charge or assessment arising out of capital appreciation, which may be payable in respect of the property or by the owners thereof by reason of compliance with any of the aforesaid Regulations or By-Laws.

 

(II)      The work of reinstatement must be commenced and carried out with reasonable dispatch and in any case must be completed within twelve months after the destruction or damage or within such further time as the Company may (during the said twelve months) in writing allow and may be carried out wholly or partially upon another site (if the aforesaid Regulations or Bye-Laws so necessitate) subject to the liability of the Company under this Extension not being thereby increased.

 

(III)     If the liability of the Company under any item of the policy apart from this Extension shall be reduced by the application of the terms and conditions of the policy then the liability of Company under this extension (in respect of any such item) shall be reduced in like proportion.

 

(IV)    The total amount recoverable under the policy shall not exceed the sum insured thereby.

 

(V)     All the conditions of the policy except in so far as they may be hereby expressly varied shall apply as if they had been incorporated herein.

 

58.   PUBLIC UTILITIES

 

The insurance by this policy extends to cover telephone, gas, water and electric instruments, meters, piping, cabling and the like and accessories thereof; including similar property in adjoining yards or roadways or underground, all the property of the insured or of others for which the insured are responsible.

Provided always that the total indemnity under this clause does not exceed 10% of Sum Insured of the building.

 

 

59.   RAILWAY SIDINGS SUBROGATION WAIVER CLAUSE

 

It is hereby declared and agreed that the signing by the insured of any    agreement required by Kenya Railways Corporation for the carriage of goods shall not invalidate the insurance by this policy.

 

60.   RENT PAYABLE CLAUSE

 

The Company will be answerable for payment of Rent as specified in the Schedule, but in no case exceeding the actual Rent Payable by the Insured to the Owner or Landlord of the said premises in the event of the same being untenantable during the whole term above specified, in consequence of damage or destruction by fire.  The amount payable under this Policy shall be in the proportion which the amount insured bears to the actual Rent of the Premises, and in the case of the Premises not being untenantable during the whole of the term aforesaid, the Company shall only be liable to pay to the Insured such proportion of the amount so payable as aforesaid as the period of time during which the said Premises may be untenantable bears to the whole time above specified but the same shall not exceed the time which would be required by a builder to put the premises into tenantable conditions.

 

61.   RENT RECEIVABLE CLAUSE

 

The Company will be answerable for payment of the rent as specified in the Schedule but in no case exceeding the actual Rent Receivable by the Insured of the aforesaid premises at the time of the fire or on such part of the same as may be then let, in the event of same being untenantable during the whole term above specified, in consequence of damage by fire.  The amount payable under this Policy shall be in the proportion which the amount insured bears to the actual Rent of the Premises, and in the case of the Premises not being untenantable during the whole of the term aforesaid, the Company shall only be liable to pay to the Insured such proportion of the amount so payable as aforesaid as the period of time during which the said Premises may be untenantable bears to the whole time above specified, but the same shall not exceed the time which would be required by a builder to put the Premises into tenantable condition.

 

62.   RENTAL VALUE CLAUSE

 

The Company will be answerable for payment of the rent as specified in the Schedule but in no case exceeding the actual Rental Value of the said Premises in the event of the same being untenantable during the whole term above specified, inconsequence of damage or destruction by fire.  The amount payable under this Policy shall be in the proportion which the amount insured bears to the actual Rental Value of the Premises and in case of the premises not being untenantable during the whole of the term aforesaid, the Company shall only be liable to pay to the Insured such proportion of the amount so payable as aforesaid as the period of time during which the said Premises may be untenantable bears to the whole time above specified, but the same shall not exceed the time which would be required by a builder to put the Premises into tenantable condition.

 

 

63.   REINSTATEMENT OF LOSS

 

In consideration of the insured undertaking to pay an additional premium at the agreed rate on the amount of loss calculated on a pro-rata basis from the date of such loss to the expiry of the current period of insurance, and such additional premium being received from the amount of claim payable, it is agreed that in the event of loss the insurance hereunder shall be maintained in force for the full sum insured.

 

64.   REINSTATEMENT OF VALUE CLAUSE -NOT APPLICABLE TO MERCHANDISE     AND/OR STOCK-IN-TRADE

 

IT IS HEREBY DECLARED AND AGREED that in the event of the Property insured under the column or Item(s) shown in the Schedule to this Policy as being subject to the following Reinstatement Conditions being destroyed or damaged, the basis upon which the amount payable under such column or Item(s) of the Policy is to be calculated, shall be the cost of replacing or reinstating on the same site property of the same kind or type but not superior to or more extensive than the insured property when new, subject to the following special provisions and subject also to the terms and conditions of the Policy except insofar as the same may be varied hereby.

 

SPECIAL PROVISIONS

  1. The work of replacement or reinstatement (which may be carried out upon another site and in any manner suitable to the requirements of the Insured subject to the liability of the Company not being thereby increased) must be commenced and carried out with reasonable dispatch and in any case must be completed within 12 months after the destruction or damage, or within such further time as the Company may (during the said 12 months) in writing allow: otherwise no payment beyond the amount which would have been payable under the Policy if this Memorandum had not been incorporated therein shall be made.

 

  1. Until expenditure has been incurred by the Insured in replacing or reinstating the property destroyed or damaged the Company shall not be liable for any payment in excess of the amount which would have been payable under the Policy if this Memorandum had not been incorporated therein.

 

  1. If at the time of replacement or reinstatement the sum representing the cost which would have been incurred in replacement or reinstatement if the whole of the property covered had been destroyed, exceeds the sum insured thereon at the breaking out of any fire, or at the commencement of any destruction of or damage to such property by any other peril insured against by the Policy, then the Insured shall be considered as being his own insurer for the excess and shall bear rate able proportion of the loss accordingly.

 

Each Item of the Policy (if more than one) to which this memorandum applies shall be separately subject to the foregoing provisions.

 

  1. This Memorandum shall be without force or effect if:-
  • The Insured fails to intimate to the Company within six months from the date of destruction or damage or such further time as the Company may in writing allow, his intention to replace or reinstate the property destroyed or damaged.

The Insured is unable or unwilling to replace or reinstate the property destroyed or damaged on the same or another site.

 

65.   RISKS CONTAINING COLD ROOMS, LARGE FREEZERS AND THE LIKE

 

“In consideration of the payment of an additional premium AND subject to insured bearing ten percent (10%) of the loss, the insurance by this policy in respect of stock covers loss or damage to the property thereby insured which may be caused by change of temperature resulting from the total or partial destruction or disablement by fire of the refrigerating plant”.

 

66.   SEVENTY TWO HOURS CLAUSE

 

All damages occurring within 72 (seventy-two) consecutive hours of an earthquake and arising solely from seismic activity are deemed to be one event for the purpose of determining insurers’ liability.

 

67.    SPONTANEOUS COMBUSTION CLAUSE

 

It is hereby declared and agreed that the insurance  cover offered by this Policy extends to include:-

 

Destruction or damage by fire only of or to the insured   property caused by its own spontaneous fermentation, heating or combustion.

 

Provided that all the conditions of the Policy (except as expressly varied herein) shall apply as if they had been incorporated herein.

 

68.   SPRINKLER LEAKAGE EXTENSION

 

It is hereby declared and agreed that the insurance under this policy shall include cover against loss or damage to the property insured resulting from accidental discharge or leakage of water from the automatic Sprinkler installation.

 

For the purpose of this extension cover will include accidental damage caused by water discharged from hydrants and or small bore hose – reels provided that the valves therein are locked in the closed position with padlock and leather strap.  A key should be displayed in a glass container next to the hydrant / horse reel for use in emergencies.

 

Provided that, such discharge or leakage of water shall be accidental and shall not be occasioned by or happen through:

 

  1. Heat caused by fire.
  2. Repair or alteration to the buildings or premises.
  • The automatic sprinkler installation being repaired, tested, removed or extended.
  1. Freezing whilst premises in the insured’s ownership and/ or tenancy are empty or disused.
  2. The order of the government or of any municipal, local or other competent Authority.
  3. Earthquake, Subterranean fire, riot & strike civil commotion war, invasion act of foreign enemy, hostilities (whether war be declared or not ) civil war, rebellion, revolution, insurrection or military or usurped power and other conversions of nature.
  • Explosion, the blowing up of buildings or blasting.

 

Provided always that the indemnity in respect of this extension shall not exceed an aggregate sum of Kshs ———————- during any one period of insurance in respect of any one occurrence and the insured shall bear the ten percent of each and every claim hereunder.

 

Provided also that a maintenance agreement is signed between the Insured and the Supplier / approved Agent and is kept in force during the duration of this Policy and that the Sprinkler System itself is serviced and maintained in a proper working condition.

 

69.   STOCK DEBRIS REMOVAL COSTS CLAUSE

 

On costs and expenses necessarily incurred by the insured with the consent of the company in removing debris of any stock insured by the policy following destruction of or damage to such stock by any peril hereby insured against, subject to a limit of Kshs—————————— or 5% of the sum insured of stock item whichever is lower.

 

70.   STOCK DECLARATION       SPECIAL CONDITIONS

 

In consideration of the premium by Item No. ….. of specification of this Policy being provisional in that it is calculated on 75% of the sum insured hereby and is subject to adjustment on expiry of each Period of Insurance:

 

1)       The Insured agrees to declare to the Company, in writing the value of his/their stocks (other than retail) less amount insured by policies other than declaration policies,  on the following basis namely the highest value at risk  during the  month and to make such declaration within thirty days of the 1st day of each  calendar month and such declaration to be signed by the Insured or by a responsible person authorized to sign on his/their behalf.

 

If other policies on a declaration basis cover the stocks hereby insured the  declarations shall be made so as to apportion to each Policy a share of the value of the stocks insured under such declaration policies pro rata to the respective amounts stated in the policies.

 

In the event of the declaration not being made within the thirty days mentioned above then the Insured shall be deemed to have declared sum insured hereby as the value at risk.

 

On the expiry of each Period of Insurance the premium shall be calculated at the rate agreed on the average sum insured, namely, the total of the values declared or deemed to have been declared divided by the number of declarations due to have been made.  If the resultant premium be greater than the provision premium the Insured shall pay the difference if it be less the difference shall be repaid to the Insured but such repayment shall not exceed 50% of the provisional premium.

 

  • The basis of valuation for declarations shall be the market value and any loss hereunder shall be settled on the basis of the market value immediately before the loss.

 

  • If at the time of any loss, there be any other subsisting insurance on other than a declaration basis, whether effected by the Insured or by other person/persons covering the stocks hereby insured, this Policy shall apply only to the excess of the value of such stocks at the time of the loss over the sum insured by such other insurance or contribute more than that proportion of such loss which such excess (or if there be other declaration insurance’s covering the same stocks a rate able proportion of such excess) bears to the total value of the stocks, but not exceeding sum insured hereby.

 

  • If after the occurrence of a loss it is found that the amount of the last declaration previous to the loss is less than the amount that ought to have been declared then the amount which would have been recoverable by the Insured shall be reduced in such proportion as the amount of the said last declaration bears to the amount that ought to have been declared.

 

  • Notwithstanding the occurrence of a loss it is understood that the amount of the sum insured will be maintained at all times during the currency of the Policy, and the Insured therefore undertakes to pay extra premium on the amount of any loss pro rata from the date of such loss to the expiry of the Period of Insurance, the premium being calculated at the rate applicable to the stocks destroyed and such extra premium shall not be taken into account in, and shall be distinct from, the final adjustment of premium.

 

  • In the event of this Policy being cancelled by the Insured during its currency (whether stocks exist or not) the premium to be retained by the Company shall be the appropriate short Period premium calculated on the average amount insured up to the date of cancelment, or 50% of the provisional premium whichever is the greater; but if the Policy is cancelled by the Insured after a loss has occurred the premium to be retained by the Company shall be the pro rata  proportion of the premium calculated on the average amount insured up to  the date of cancelment plus the pro rata proportion of the premium from the date of the cancelment to the  expiry of the Period of Insurance on the amount of the loss paid, or 50% of the provisional premium whichever is the greater.

 

  • The maximum liability of the Company shall not exceed the sum insured hereby and premium shall not be receivable on values in excess thereof.  The sum  insured may, however, be increased by prior agreement with the Company in  which event the new sum insured and the date from which it is effective will be  recorded on the Policy by endorsement.

 

  • If the stocks hereby insured shall at the time of loss be collectively of greater value than the sum insured thereon, then the Insured shall be considered as being their own insurer for difference and shall bear a rate able proportion of the loss accordingly. Each Item, if more than one, on stocks (other than retail) shall be separately subject to this condition.

 

  • It is warranted that every other Policy on a declaration basis covering the stocks insured hereby shall be identical in wording with this Policy.

 

  • This insurance is subject in all respects to the printed conditions of the Policy except in so far as they may be varied by these special conditions.

 

71.   STORAGE OF OIL AND\OR OTHER LIQUIDS CLAUSE

 

It is hereby understood and agreed that this insurance is not prejudiced consequent upon any of the tanks owned by the Insured, being used for the storage of oil or other liquids, the property of the Insured or their customers or others.  In the event of the oils or liquids being stored with the flash point below 73 degrees Fahrenheit, the insurance hereunder will continue, but the Insured undertakes to notify the Company before such a storage or as early as possible after such a storage, giving full details of the type of oil or liquid stored, its flash point and the tanks utilised for its storage and to pay additional premium to be agreed.

 

72.   SUBROGATION WAIVER CLAUSE

 

In the event of a claim arising under this Policy, the Insurers agree to waive any rights, remedies or relief to which they might become entitled by subrogation against any Company standing in relation of subsidiary to or parent to the Insured as defined in Section 102 of the Company’s Act 1967.

 

73.   TEMPORARY REMOVAL

 

Subject to the following provisions the property insured (other than stock-in-trade or merchandise) by this policy is covered whilst temporarily removed for cleaning, renovating, repair or other similar purposes to any premises not in the insured’s occupation and in transit thereto and there from by road, rail, air, or inland water way or within Kenya.  The amount recoverable under the extension in respect of each item aforesaid shall not exceed (a) 10 per cent of the amount of the item after deduction from the sum insured the value of any stock-in-trade, or merchandise insured by the said item nor (b) the amount which would have been recoverable had the loss occurred at the premises from which the property is temporarily removed.

 

This extension does not apply to:-

 

Motor Vehicles and Motor Chassis.

Property held by the insured in trust, other than machinery and plant.

Property if and so far as it is otherwise insured.

 

 

74.   VEHICLE LOAD CLAUSE

 

In the event of any of the Insured’s vehicles being left overnight whilst in and/or on the premises described in the specification hereto the Insurers shall indemnify the Insured in respect of such load in the event of loss or damage by any of the Perils insured against by this section. Provided that the loss is not covered under a more specific policy, and that the load is covered under an item of this Policy.

 

  1. A requirement by the other party that proof of insurance in the joint names be provided.

 

75.   UN-OCCUPANCY CLAUSE

 

The insurance by this Policy will not be prejudiced in the even of any building remaining unoccupied for a greater Period than 30 days, provided that in due course the Insured or their agents give notice in writing to the Company and on demand pay such reasonable additional premium as the Company may require.

 

76.    WAIVER OF MATERIAL DAMAGE EXCESS

 

Notwithstanding the application of an excess, deductible or any element of self-insurance under the Material Damage Policy any resultant Consequential Loss (as within defined) shall not be reduced or disallowed by virtue of the Material Damage claim being less than that excess, deductible or element of self-insurance subject to the terms and conditions of the consequential Loss Policy.

 

77.   VENDER AND PURCHASE CLAUSE

 

If at the time of loss or damage to the property hereby insured the Insured shall have contracted to sell its interest in such property and the purchase shall not have been but shall be thereafter completed, the purchaser on the completion of the purchase, if and so far as the property is not otherwise insured by or on behalf of the purchaser against such loss or damage, shall be entitled to the benefit of this Policy so far as it relates to such loss or damage without prejudice to the rights and liabilities of the Insured or the Company under this Policy prior to such completion.

ALL RISKS (AR) CLAUSES

AR1. Articles Consisting of Pairs and/or Sets

 

Where any insured item in the Schedule hereto consists of articles in a pair or set the Company shall not be liable to pay more than the value of any particular part or parts which may be lost or damaged without reference to any special value which such article or articles may have as part of such pair or set nor more than a proportionate part of the Insured value of such pair or set as stated in the said schedule.

 

Except as varied by this Endorsement, the terms and conditions of this policy including any endorsements shall remain in full force.

 

AR2. Riots or Strikes, Civil Commotion

 

It is agreed and declared that the words “Riot and Strikes, Civil Commotion” appearing in Exclusion 5 (b) of this policy are deemed to be deleted.

 

Subject otherwise to the terms, exceptions, conditions and endorsement of this policy.

 

AR3. Locked Boot Clause

 

It is hereby agreed and declared that this policy shall neither extend to nor cover loss by theft from any motor vehicle whilst such motor vehicle is left unattended unless the loss shall be as a direct result of forcible and violent entry (of which there shall be external visible evidence) into the boot and or compartment of the said motor vehicle.

 

Subject otherwise to the terms, provisions and conditions of this policy.

 

AR4. Reinstatement of Loss

 

In consideration of the Insured undertaking to pay an additional premium at the agreed rate on the amount of loss calculated on a pro rata basis it is agreed that in the event of loss the insurance hereunder shall be maintained in force for the full sum insured.

 

AR5. Excess Clause

 

It is hereby declared and agreed that the Company shall not be liable for the first 10% of loss, subject to a minimum excess of Kshs. 2,500/= of each and every claim.

 

AR6. Memo A

 

Attached to and forming part of All Risks Policy No.AR07434 in the name of Mr. Suresh B. R. Shah.

 

Notwithstanding anything to the contrary contained in this policy, it is hereby declared and agreed that condition No. 4 of this policy is amended to incorporate the exclusions H to K below.

 

  • Breakage of glass or other substances of brittle or fragile nature (other than camera lenses) unless caused by fire or thieves.

 

  • Property despatched by any ship or aircraft in which the insured is not travelling at the same time.

 

  • Money, cheques, travellers cheques or securities of money share certificates, bonds, promissory notes, tickets, stamps and stamp collection, coin collections, medals, contact lenses, micro corneal lenses, business books, books of account, plans, specifications, blueprints, moulds, deeds, bills of exchange, documents of title to goods, contracts or other legal documents or documents of any kind.

 

  • Theft of property from any unoccupied vehicle unless such vehicle is a private car with a completely self-contained lockable totally enclosed luggage compartment or boot and unless the property is contained in the said luggage compartment or boot while securely locked.

Subject otherwise to the terms, conditions and exceptions of the policy.

 

AR7. Exclusion of Theft from Unattended Vehicles

 

It is hereby declared and agreed that notwithstanding anything contained herein to the contrary that no claim shall be admissible under this policy for loss To the Insured property by theft from an unattended motor vehicles unless

 

(a)        at the time of the theft the property was contained in the motor vehicle’s locked boot  (which shall be deemed to mean only a separate compartment

designed for baggage and inaccessible from inside the motor vehicle) and unless

 

(b)        the theft shall be a direct result of violent and forcible entry of the locked boot itself from outside the motor vehicle and there shall be external and

visible evidence of such entry.

 

It is hereby declared and agreed that the words Great Britain, Northern Ireland, the Republic of Ireland, the Channel Islands or the Isle of Man wherever appearing in this policy are deleted and replace by Kenya.

 

Further, it is hereby declared and agreed that the word Corporation wherever appearing in this policy is deleted and replaced by Company.

 

AR8. Boot Locked Apartment Clause

 

It is hereby agreed and declared that this Policy shall neither extend to nor cover loss by theft from any motor vehicle whilst such motor vehicle is left unattended unless the loss shall be as a direct result of forcible and violent entry (of which there shall be external visible evidence) into the boot and or compartment of the said motor vehicle.

 

Subject otherwise to the terms, provisions and conditions of this policy.

 

AR9. Liability for Contractors/Sub-Contractors or their Workmen

 

It is hereby agreed notwithstanding anything contained herein to the contrary that this policy subject to its limits, terms and conditions indemnifies the Insured against legal liability for accidental bodily injury and/or accidental loss of or damage to property caused by the negligence of the insured’s contractors/sub-contractors or their workmen.  Limit – Kshs.

 

AR10. Reinstatement Value Clause

 

It is hereby declared and agreed that in the event of the property insured under this Policy being destroyed or damaged, the basis upon which the amount payable under this Policy is to be calculated, shall be the cost of replacing or reinstating on the same site property of the same kind or type but not superior to or more extensive than the insured property when new, subject to the following Special Provisions and subject also to the terms and conditions of the policy except insofar as the same may be varied hereby.

 

Special Provisions

 

  1. The work of replacement or reinstatement (which may be carried out upon another site and in any manner suitable to the requirements of the Insured subject to the liability of the Company not being thereby increased) must be commenced and carried out with reasonable despatch and in any case must be completed within 12 months after the destruction or damage, or with such further time as the Company may (during the said 12 months) in writing allow; otherwise no payment beyond the amount which would have been payable under the Policy if this Memorandum had not been incorporated therein shall be made.

 

  1. Until expenditure has been incurred by the Insured in replacing or reinstating the property destroyed or damaged the Company shall not be liable for any payment in excess of the amount which would have been payable under the Policy if this Memorandum had not been incorporated therein.
  2. If at the time of replacement or reinstatement the sum representing the cost which would have been incurred in replacement or reinstatement if the whole of the property covered had been destroyed, exceeds the sum insured thereon at the breaking out of any fire or at the commencement of any destruction of or damage to such property by any other peril insured against by the Policy then the Insured shall be considered as being his own insurer for the excess and shall bear a rateable proportion of the loss accordingly. Each item of the Policy (if more than one) to which this Memorandum applies shall be separately subject to the foregoing provisions.

 

  1. This Memorandum shall be without force or effect if:-

 

(a)  The Insured fails to intimate to the Company within six months from the date of

destruction or damage or such further time as the Company may in writing allow his

intention to replace or reinstate the property destroyed or damaged.

 

(b)  The Insured is unable or unwilling to replace or reinstate the property destroyed or

damaged on the same or another site.

 

AR11. Proposal Form Warranty

 

It is noted and agreed that the insured having not submitted to the insurers a formal completed proposal form for this class of business, but having proposed to the insurers by means of a letter or risk note or by instructions from their insurance brokers, wherever this policy makes reference to ‘proposal’ and declaration these terms shall be deemed to include the insured’s said letter or risk note in lieu thereof.

 

AR12. Amendment of Geographical Area to read ‘East Africa’ only

 

It is hereby declared and agreed that notwithstanding anything contained herein to the contrary, the geographical area under this policy is deemed to be amended to read East Africa only.

 

AR13. Exclusion of loss or damage due to lack of, insufficient or unsuitable Air-Conditioning

 

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon, the Insurers will not indemnify the Insured in respect of any loss or damage arising from lack of, insufficient or unsuitable air-conditioning.

 

AR14. Discovery Period Clause

 

Notwithstanding anything contained herein to the contrary it is agreed and declared that such act insured against if discovered not later than twelve months after the resignation, dismissal, retirement or death of the defaulting Employees, and/or not later than twelve months after the termination of the Policy as regards such Employee, whichever be the earlier; the same is deemed to be covered under this Insurance.

 

Subject otherwise to the terms exceptions conditions and endorsements of the Policy.

 

AR15. Jurisdiction Clause

 

Notwithstanding anything contained herein to the contrary, it is hereby declared and agreed that the Indemnity provided herein in respect of accidental loss of or damage to property shall not apply to

 

  1. Compensation for damages in respect of judgements delivered or obtained in the first instance otherwise than by a court of competent jurisdiction within Kenya.

 

  1. Costs and expenses of litigation recovered by any claimant from the Insured, which are not incurred in and recoverable in Kenya.

 

Subject otherwise to the terms, conditions and exceptions of this Policy.

 

AR16. AVERAGE CLAUSE

 

If the property hereby insured shall, at the time of loss , be collectively of greater value than the sum insured thereon, then the Insured shall be considered as being his own insurer for the difference, and shall bear a rateable proportion of the loss accordingly. Every item, if more than one, of the Policy shall be separately subject to this condition.

 

AR17. RIOT & STRIKE ENDORSEMENT

 

It is hereby understood and agreed that cover provided by this policy extends to include loss or damage directly caused by:

 

(a)        The act of any person taking part together with others in any disturbance of the public peace (whether in connection with a strike or lock-out or not) or the action of any lawfully constituted authority in suppressing or attempting to suppress any such disturbance or in minimising the consequences of such disturbance.

 

(b)        The wilful act of any strike or locked out worker done in furtherance of strike or in resistance to a lock-out or the action of any lawfully constituted authority in preventing or attempting to prevent any such act or in minimising the consequences of any such act.

 

Provided that the indemnity given by reason of this Endorsement shall not apply to any accident, loss or damage (except so far as is necessary to meet the requirements of the Legislation) directly or indirectly proximately or remotely occasioned by contributed to by or traceable to or arising out of or in connection with:

 

  1. War, invasion, the act of foreign enemies, hostilities or warlike operations (whether war be declared or not) civil war

 

  1. Mutiny, civil commotion assuming the proportions or amounting to a popular rising military, rising rebellion, revolution, insurrection, military or usurped power or any act of any person acting on behalf of or in connection with any organisation with activities directed towards the overthrow by force of the Government de jure or de facto or to the influencing of it by terrorism or violence.

 

or by the direct or indirect consequences of any of the said occurrences.

 

In the event of any claim hereunder the Insured shall prove that the accident, loss or damage arose independently of and was in no way connected with or occasioned by or contributed to by or traceable to any of the said occurrences or any consequence thereof and in default of such proof the Company shall not be liable to make any payment in respect of such a claim.

 

Subject otherwise to the terms of this Policy.

 

AR18. Cancellation (30 Days) Clause

 

Notwithstanding anything herein contained to the contrary it is hereby declared and agreed that the cancellation notice under the policy is noted as 30 days. 

AR19.Premium Payment Warranty

 

Notwithstanding anything contained herein to the contrary, it is hereby understood and agreed that the indemnity provided by this policy will only apply on payment of full premium to the Company in accordance with the provisions of Section 156 of the Insurance Act Cap 487, failure to which cover lapses.

  1. War and Civil War Exclusion Clause (Amended)

 

This agreement does not cover any loss or damage occasioned by or through or in consequence directly or indirectly of any of the following occurrences, namely: –

 

  • War, invasion, act of foreign enemy, hostilities or warlike operation (whether war be declared or not), civil war

 

  • Mutiny, civil commotion assuming the proportions of or amounting to a popular rising, military rising insurrection, rebellion, revolution, military or usurped power, or any act of any person or persons acting on behalf of or in connection with any organisation, the objects of which are to include the overthrowing or influencing of any de jure or de facto government by terrorism or by any violent means.

 

  • Martial law or state of siege or any events or causes which determine the proclamation or maintenance of martial law or state of siege.

 

6. Millennium Endorsement

 

For the purpose of this endorsement, the expression electronic equipment shall mean any computer or other equipment or system for processing storing or retrieving data and shall include but shall not be limited to any computer hardware, firmware or software, media, microchip, operating systems, microprocessors (microchip), integrated circuit or similar device.

 

It is noted and agreed that this policy is hereby amended as follows: –

 

  1. This policy does not cover Damage or Legal Liabilities or Consequential Loss directly or indirectly caused by, consisting of, or contributed to by, or arising from, the failure or inability of any electronic equipment, whether the property of the insured or not, and whether occurring before, during or after the Year 2000 that results from the inability to:

 

  • Correctly recognise any date as its true calendar date, and/or
  • Capture, save or retain and/or correctly manipulate, interpret or process any data or information or command or instruction as a result of treating any date other than its true calendar date; and/or
  • Capture, save, retain or correctly process any data as a result of the operation of any command which has been programmed into any electronic equipment, being a command which causes the loss of data or the inability to capture, save, retain or correctly process such data on or after any date.
  1. b) It is further understood that the Insurer will not pay for the repair or modification of any part of the electronic equipment or its related equipment, to correct deficiencies or features of logic or operation.
  2. c) It is further understood that the Insurer will not pay for Damage or Consequential Loss arising from the failure, inadequacy or malfunction of any advice, consultation, design, evaluation, inspection, installation, maintenance, repair or supervision done by the Insured or for the Insured or by for others to determine, rectify or test, any potential or actual failure, malfunction or inadequacy described in A above

 

Such Damage or Consequential Loss described in A, B, or C above, is excluded regardless of any other cause that contributed concurrently or in any sequence.

 

This endorsement shall not exclude any subsequent Damage or Legal Liabilities or Consequential Loss, not otherwise excluded, which itself, results from a Defined Peril, Defined Peril shall mean fire, lightning, explosion, aircraft or vehicle impact, falling objects, windstorm, hail, tonardo, hurricane, cyclone, riot, strike, civil commotion, vandalism, malicious mischief, earthquake, volcano, tsunami, freeze or weight of snow.

Provided however, that where such consequential loss, not otherwise excluded, itself results from a defined peril, the company shall not be liable for any consequential loss which results from any continuing inability of the electronic equipment to correctly recognise any date as its true calendar date or to capture, save or retain and/or correctly manipulate, interpret or process any data as aforesaid, after the lost or destroyed property has been replaced or the damaged property concerned has been repaired.

 

In consequence of the foregoing the Annual Premium remains unaltered.

 

All other terms, conditions and exclusions of this policy remain unchanged.

 

 

Authorised Representative

 

  1. Safety Measures

 

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon, the Insurers shall only indemnify the Insured for the loss, damage or liability directly or indirectly caused by flood and inundation if adequate safety measures have been taken during the planning and execution of the project.

 

Adequate safety measures in this context shall mean that the average monthly rain, flood and inundation hazard as known from statistics of the competent meteorological office for the respective month and location has been taken into account.

 

  1. Fire Fighting Facilities & Fire Safety on Construction

 

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon, the Insurers shall only indemnify the Insured for the loss, or damage resulting directly or indirectly from fire and/or explosion if the following requirements are fulfilled:

 

All shuttering material including props, etc which is not fitted for concreting must be stored at a sufficiently large distance from the property to be constructed.

 

Fire-fighting equipment with sufficient capacity must be available at the site ready for immediate use.

 

An adequate number of workmen must be fully trained in the use of such equipment and shall be available for immediate intervention at all times.

 

If welding, soldering or the use of a naked flame cannot be avoided during a period when dangerous quantities of combustible material are kept in the vicinity, a workman suitably equipped for and well trained in fire fighting must be present where such operations are carried out.

 

9. Theft Clause

 

Theft within the meaning of this policy shall mean theft following upon Housebreaking (causing actual forceable visible damage to the site construction stores or premises or part thereof) and connected therewith or if there shall arise any damage to the said stores or premises, the property of the insured or for which the Insured is legally responsible, which shall be due to any such theft as aforesaid or any attempt thereat, excluding theft by or with the connivance of any of the family, construction staff or domestic servants or the Insured or any other persons lawfully on the construction site stores or premises.

 

9. Watchman Warranty

 

Warranted that the premises containing the goods insured (Construction material) under the within mentioned policy is guarded by a watchman solely employed by the contractor mentioned in the policy for Twenty Four (24) Hours on all days during the course of construction.

 

11. Safe and Books clause

 

Warranted that the insured keeps, and during the whole of the currency of the policy shall keep a complete set of Books, Accounts and Stock sheets or Stocks showing true and accurate record of the construction material used and stock-in-hand and that such Books, accounts and Stock sheets or Stock Books shall be locked in a fire proof safe or removed to another building at night, and at all times when the constructions work is not taking place.

 

It is further warranted that the said safe shall not contain explosives or other hazardous  commodities.

 

12. Maintenance Visits Cover

 

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon, and subject to the Insured having paid the agreed extra premium, this insurance shall be extended for the maintenance period specified hereunder to cover solely loss of or damage to the contract works caused by the insured contractor(s) in the course of the operations carried out for the purpose of complying with the obligations under the maintenance provisions of the contract.

 

) Electronic Date Recognition Clause (EDRC)

 

Section 1

 

This reinsurance does not cover any loss, damage, cost, claim or expense, whether preventative, remedial or otherwise, directly or indirectly arising out of or relating to:

 

  1. a) the calculation, comparison, differentiation, sequencing or processing of data involving the date change to the year 2000, or any other date change, including leap year calculations by any            computer system, hardware, programme or software and/or any microchip, integrated circuit or                 similar device in Computer equipment or non-computer equipment, whether the property of the     insured or not; or

 

  1. b) any change, alteration or modification involving the date change to the year 2000 or any other date

change, including leap year calculations, to any such computer system, hardware, programme or

software or any microchip, integrated circuit or similar device in computer equipment or non-         computer equipment, whether the property of the insured or not.

 

This clause applies regardless of any other cause or event that contributes concurrently or in any sequence to the loss, damage, cost, claim or expense.

 

However, this section shall not apply in respect of physical damage occurring at the insured’s premises arising out of the perils of fire, lightning, explosion, aircraft or vehicle impact, falling objects, windstorm, hail, tornado, hurricane, cyclone, riot, strike, civil commotion, vandalism, malicious mischief, earthquake, volcano, tsunami, freeze or weight of snow.

 

Section 2

 

Notwithstanding Section 1 above, this reinsurance does not cover any costs and expenses, whether preventive, remedial or otherwise, arising out of or relating to change, alteration or modification of any computer system, hardware, programme or software or any microchip, integrated circuit or similar device in computer or non-computer equipment, whether the property of the insured or not.

 

Section 3

 

The date change to the year 2000, or any other date change, including leap year calculations, shall not in and of itself be regarded as an event for the purposes of this reinsurance.

 

  1. Crops, Forests and Cultures

 

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the policy or endorsed thereon, the insurers shall not indemnify the insured for loss, damage or liability directly or indirectly caused to crops, forest and/or any cultures during the execution of the contract works.

 

  1. Warranty Concerning Sections

 

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the policy or endorsed thereon, the insurers shall only indemnify the insured for loss, damage or liability directly or indirectly caused to or by embankments, cuttings and benchings, ditches, canals or road work if these embankments, cuttings and benchings, ditches, canals or road work are constructed in sections not exceeding in total the length stated below, irrespective of the state of completion of the insured works, and the indemnification for any loss event shall be limited to the cost of repair of such sections.

 

  1. Camps & Stores

 

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the policy or endorsed thereon, the insurers shall only indemnify the insured for loss, damage or liability directly or indirectly caused to camps and stores by fire, flood or inundation if these camps and stores are located above the highest water level recorded anywhere on the site during the last 20 years and the individual storage units are either at least 50m apart or separated by fire walls.

 

It also agreed that the Insurers shall indemnify the insured for any one occurrence only up to a limit of indemnity of

 

For camps

For each individual storage unit

  1. Construction Plant, Equipment & Machinery

 

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the policy or endorsed thereon, the insurers shall only indemnify the insured for loss, damage or liability directly or indirectly caused to construction plant, equipment and machinery by flood and inundation if, after the execution of works or in case of any interruption, such construction plant, equipment and machinery are kept in an area not endangered by 20-year floods.

 

  1. Construction Material

 

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the policy or endorsed thereon, the insurers shall only indemnify the insured for loss, damage or liability directly or indirectly caused to construction material by flood or inundation if, such construction material does not exceed three days’ demand and the exceeding quantities are kept in areas not endangered by 20-year floods.

 

  1. Removal of Debris from Landslides

 

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the policy or endorsed thereon, the insurers shall not indemnify the insured in respect of

 

(i)            expenses incurred for the removal of debris from landslides in excess of the costs of excavating

the original material from the area affected by such landslides,

(ii)           expenses incurred for the repair of eroded slopes or other graded areas if the Insured has failed to

take the measures required or to take them in time.

 

  1. Materials on site Warranty

 

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the policy or endorsed thereon, it is warranted that the value of materials stored on the site (Excluding Sand & Ballast) at any one time shall not exceed Kshs. 1,000,000/-.

 

If in the event of loss or damage, it is found that the value of materials on site is more than the above Limit, then the amount recoverable by the Insured under the policy shall be reduced in such proportion as the Limit bears to the actual value of the materials on site.

 

  1. SPECIAL CONDITIONS CONCERNING THE CONSTRUCTION AND/OR                              ERECTION TIME SCHEDULE

 

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon, the Company shall only indemnify the Insured for loss, damage or liability directly or indirectly caused to or by embankments, cuttings and benchings, ditches, canals or road work if these embankments, cuttings and benchings, ditches, canals or road work are constructed in sections not exceeding in total the length stated below, irrespective of the state of completion of the Insured works, and the indemnification for any one loss event shall be limited to the cost of repair of such sections.

 

The construction and/or erection time schedule together with any other statements made in writing by the insured for the purpose of obtaining cover under the Policy as well as technical information forwarded to the Insurers is deemed to be incorporated herein.

 

The Insurers shall not indemnify the Insured in respect of loss or damage caused by or arising out of or aggravated by deviations from the construction and/or erection time schedule exceeding the number of weeks stated below unless the Insurers had agreed in writing to such a deviation before the loss occurred.

 

A.      Claims preparation costs

The insurance by each section of this policy is extended to include costs reasonably incurred by the insured in producing and certifying any particulars or details required by the company in terms of general condition 6 or to substantiate the amount of any claim, provided that the liability of the company for such costs in respect of any one claim shall not exceed, in respect of a particular section, $150/Tshs150, 000 or 10% of the sum insured or limit of indemnity on the item affected, whichever is the lesser amount, plus any amount stated in the schedule to each section against an item for additional claim preparation costs.

 

B.      Payments on account

In respect of any section where amounts recoverable from the company are delayed pending finalisation of any claim, payments on account may be made to the insured, if required, at the discretion of the company.

 

C.      First amount payable

Except where provided for specifically in any section, the amount payable under this policy/section for each and every loss, damage or liability shall be reduced by the first amount payable shown in the schedule for the applicable defined event.

 

D.      Liability under more than one section

The company shall not be liable under more than one section of this policy in respect of liability, loss or damage arising from the same happening in respect of the same liability, loss or damage.

 

E.         Meaning of words

The schedules and any endorsements thereto and the policy wording shall be read together and any word or expression to which a specific meaning has been given in any part thereof shall bear such meaning wherever it may appear.

 

F.       Premium payment

Premium is payable on or before the inception date or renewal date as the case may be.

The company shall not be obliged to accept premium tendered to it after inception date or renewal date as the case may be but may do so upon such terms as it at its sole discretion may determine.

 

G.      Holding covered

If the company is holding covered on a risk they will not reject a claim on the basis that the premium has not been agreed.

 

H.      Schedule sums insured blank

If, in a schedule of this policy, the sum insured, limit of indemnity or compensation is:

(i)         left blank or has no monetary amount stipulated against it

(ii)        reflected as nil or not applicable or not covered or no indemnity extended

this means the defined event or circumstance shown in the schedule is not insured by the policy.

I.       Security firms

If an employee of a security firm employed by the insured under a contract causes loss or damage, the company agrees, if in terms of the said contract the insured may not claim against the said security firm, not to exercise their rights of recourse against the said security firm.

The company shall not raise as a defense to any valid claim submitted under any section or subsection of this policy that the company’s rights have been prejudiced by the terms of any

contract entered into between the insured and any security provider relating to the protection of the insured property.

 

ABI Model Year 2000 Exclusion Clause:

This policy does not cover damage or consequential loss, cost claim or expense, whether preventative or otherwise of whatsoever nature directly or indirectly caused by or consisting of or arising from the failure, malfunction or inadequacy of any computer system or network, any computer hardware or software, data processing equipment, computerized component, media, microchip, embedded chip, integrated circuit or similar devices or other records whether the property of the insured or not, and whether occurring before, during or after the year 2000.

 

Correctly to recognize any date as its true calendar date.

To capture, save or retain and/or correctly to manipulate, interpret or process any data or information or command or instruction as a result of treating any date otherwise than as its true calendar date.

 

To capture save or retain or correctly to manipulate, interpret any data or information as a result of the operation of any command which has been programmed into computer system or network, especially any computer hardware or software, data processing equipment, computerized component, media, microchip, embedded chip, integrated circuit or similar devices, being a command which causes erasure, loss distortion or corruption of data or information or the inability to capture, save retain or correctly to process such data on or after any date.

 

Leakage extension

 

Damage caused by discharge or leakage from fire extinguishing installations/appliances.

If a first loss limit is shown against this additional peril in the schedule, the amount of such limit shall be the maximum liability of the company in respect of any one event and, for the purposes of this extension only, the following shall be substituted for the average condition hereinbefore expressed:

If the property insured is, at the commencement of any damage to such property by discharge or leakage, collectively of greater value than the sum insured thereon against fire damage, then the company shall be liable under this extension only for that proportion of the first loss limit as the sum insured against fire bears to the total value of such property and the insured shall be considered as being their own insurer for the difference and shall bear a rateable share of the loss accordingly. Every item, if more than one, to which this extension applies shall be separately subject to this clause.

In respect of this extension only, specific exception 1 to this section is deleted.

 

Subsidence and landslip extension

Damage caused by subsidence or landslip

provided that the insured shall bear the first portion of each and every claim up to an amount calculated at 1 per cent of the sum insured on the property or $75/Tshs 50,000/= whichever is the greater

This extension does not cover

  1. damage to drains, water courses, boundary walls, garden walls, retaining walls, gates, posts or fences unless specifically insured
  2. damage caused by or attributable to

(a) faulty design or construction of, or the removal or weakening of support to, any building situated at the insured premises

(b) workmen engaged in making any structural alterations, additions or repairs to any building situated at the insured premises

(c) excavation on or under land other than excavations in the course of mining operations

  1. consequential loss of any kind whatsoever except loss of rent when specifically insured under this section.

In any action suit or other proceeding where the company alleges that, by reason of the provisions of these exceptions, any damage is not covered by this insurance, the burden of proving the contrary shall be upon the insured.

 

Malicious damage extension

Damage directly occasioned by or through or in consequence of the deliberate or wilful or wanton act of any person committed with the intention of causing such damage other than damage to

  1. movable property which is

(a) stolen

(b) damaged in an attempt to remove it or part of it from any premises owned or occupied by the    insured

  1. moveable or immoveable property which is damaged by thieves whilst breaking into or out of or attempting to break into or out of any premises owned or occupied by the insured
  2. immoveable property owned or occupied by the insured occasioned by or through or in consequence of

(a) the removal or partial removal or any attempt thereat of

(b) the demolition or partial demolition or any attempt thereat of

the said immoveable property or any part thereof with the intention of stealing any part thereof

 

Provided that this extension does not cover

(a) damage related to or caused by fire or explosion

(b) consequential or indirect damage of any kind or description whatsoever, other than loss of rent if specifically insured

(c) damage resulting from total or partial cessation of work or the retarding or interruption or cessation of any process or operation

(d) damage occasioned by permanent or temporary dispossession resulting from confiscation, commandeering or requisition by any lawfully constituted authority

(e) damage related to or caused by any occurrence referred to in General exception 1 (A) (i), (ii), (iii), (iv), (v) or (vi) of this policy or the act of any lawfully established authority in controlling, preventing, suppressing or in any other way dealing with any such occurrence.

If the company alleges that, by reason of proviso (a), (b), (c), (d) or (e), loss or damage is not covered by this section, the burden of proving the contrary shall rest on the insured.

If any building insured or containing the insured property becomes unoccupied for 30 consecutive days, the insurance in respect of this extension is suspended as regards the property affected unless the insured, before the occurrence of any damage, obtains the written agreement of the company to continue this extension.

During the period of the initial unoccupancy of 30 consecutive days, the insured shall become a co-insurer with the company and shall bear a proportion of any damage equal to 20% of the claim before deduction of any first amount payable.

 

Riot and strike extension

Subject otherwise to the terms, conditions, exclusions, exceptions and warranties contained therein, this section is extended to cover damage directly occasioned by or through or in consequence of:

(i)  civil commotion, labour disturbances, riot, strike or lockout;

(ii) the act of any lawfully established authority in controlling, preventing, suppressing or in any other way dealing with any occurrence referred to in (i) above;

 

Provided that this extension does not cover:

(a)  consequential or indirect loss or damage of any kind or description whatsoever, other than loss of rent if specifically insured;

(b) loss or damage resulting from total or partial cessation of work, or the retarding or interruption or cessation of any process or operation;

(c)  loss or damage occasioned by permanent or temporary dispossession resulting from confiscation, commandeering or requisition by any lawfully constituted authority;

(d) loss or damage related to or caused by any occurrence referred to in General exception 1 (A) (ii), (iii), (iv), (v) or (vi) of this policy or the act of any lawfully established authority in controlling, preventing, suppressing or in any other way dealing with any such occurrence.

If the company alleges that, by reason of proviso (a), (b), (c)or (d), loss or damage is not covered by this section, the burden of proving the contrary shall rest in the insured.

 

Rent clause (if insured under column 2)

 

The company will pay the amount of rent receivable, rent payable or rental value (as the case may be) defined hereunder in the event of the premises stated in the schedule being rendered untenantable during the term specified therein in consequence of damage by a defined event.

(i)  Rent receivable – the actual rent receivable by the insured at the time of the event in respect of the aforesaid premises or on such part of the same as may then be let.

(ii) Rent payable – the actual rent payable by the insured to the owner or landlord of the said premises.

(iii)Rental value – the actual rental value of the said premises.

The amount payable in terms of this clause shall be in the proportion which the amount insured bears to the actual rent receivable/rent payable or rental value of the premises as the case may be and if the premises are not untenantable during the whole of the aforesaid term, the company shall only be liable to pay such proportion of the amount payable as the period of time during which the premises may remain untenantable bears to the whole term specified above, but the period shall not exceed the time which would be required to place the premises in a tenantable condition.

 

Designation of property clause

 

For the purpose of determining where necessary the column under which any property is insured, the company agrees to accept the designation under which such property has been entered in the insured’s books.

 

All other contents clause

 

The term all other contents referred to in the definition of property under column 3 of the schedule includes, but is not restricted to personal effects, tools and pedal cycles, the property of the insured or directors or employees of the insured in so far as such property is not otherwise insured.

The benefit under this extension is limited to $750/ Tshs 600,000/= for any one individual in respect of property lost or damaged whilst on the insured’s premises.

 

Limitations clause

 

The company’s liability under column 3 of the schedule is restricted in respect of

(a)  money and stamps to a limit of $ 750/ Tshs 600,000/=

(b) documents, manuscripts, business books, plans, computer systems records and media, designs, patterns, models and moulds to the value of materials and sums expended in labour.

 

Alterations and misdescription clause

The insurance under this section shall not be prejudiced by any alteration or misdescription of occupancy whether due to the transfer of processes or machinery or by virtue of acquisition of additional premises, structural alterations or repairs to buildings, machinery or plant, provided that notice is given to the company as soon as practicable after such event and the insured agree to pay additional premium if required.

 

Architects’ and other professional fees clause

 

The insurance under columns l and 3 of the schedule includes professional fees (for estimates, plans, specifications, quantities, tenders and supervision) necessarily incurred in the reinstatement or replacement of the property insured following damage by a defined event, but in no case exceeding 15 percent of the amount payable in respect of such damage and provided that the total amount recoverable shall not exceed the sum insured on the property affected. The amount payable in respect of such fees shall not include expenses incurred in connection with the preparation of the insured’s claim.

 

Capital additions clause

 

The insurance under this section covers alterations, additions and improvements (but not appreciation in value in excess of the sum(s) insured) to the property other than stock and materials in trade for an amount not exceeding 15 per cent of the sum insured thereon, it being understood that the insured undertake to advise the company each quarter of such alterations, additions and improvements and to pay the appropriate additional premium thereon.

 

Cost of demolition and clearing and erection of hoardings clause

 

The insurance under this section includes costs necessarily incurred by the insured in respect of the demolition of buildings and machinery and/or the removal of debris (including stock debris) and in providing, erecting and maintaining hoardings required during demolition, site clearing and/or building operations following damage to the property insured by a defined event, provided that the total amount recoverable shall not exceed the sum insured on the property affected.

 

The company will not pay for any costs or expenses

  1. incurred in removing debris except from the site of such property destroyed or damaged and the area immediately adjacent to such site
  2. arising from pollution or contamination of property not insured by this policy/section.

Fire extinguishing charges clause

 

Any costs relating to the extinguishing or fighting of fire, shall be deemed to be damage to the insured property and shall be payable in addition to any other payment for which the company may be liable in terms of this section provided the insured is legally liable for such costs and the insured property was in danger from the fire.

 

Mortgage clause

 

The interest of any mortgage in the insurance under this section shall not be prejudiced by any act or omission on the part of the mortgagor without the mortgage’s knowledge. The mortgage shall, however, inform the company as soon as any such act or omission comes to his knowledge and shall be responsible for any additional premium payable from the date any increased hazard shall, in terms of this clause, be assumed by the company.

 

Municipal plans scrutiny fee clause

 

The insurance under column 1 of the schedule includes municipal plans scrutiny fee, provided that the total amount recoverable under any item shall not exceed the sum insured on the building affected.

 

Public authorities’ requirements clause

 

The insurance under this section includes such additional cost of repairing or rebuilding the damaged property incurred solely by reason of the necessity to comply with building or other regulations under or framed in pursuance of any act of parliament or ordinance of any provincial, municipal or other local authority provided that

 

  1. the amount recoverable under this clause shall not include

(a)  the cost incurred in complying with any of the aforesaid regulations

(i)  in respect of damage occurring prior to granting of this clause

(ii) in respect of damage not insured under this section

(iii) under which notice has been served upon the insured prior to the happening of the damage

(iv)in respect of undamaged property or undamaged portions of property other than foundations (unless foundations are specifically excluded from this insurance) of that portion damaged

(b) the additional cost that would have been required to make good the property damaged to a condition equal to its condition when new had the necessity to comply with any of the aforesaid regulations not arisen

(c) the amount of any rate, tax, duty, development or other charge or assessment arising from capital appreciation which may be payable in respect of the property or by the owner thereof by reason of compliance with any of the aforesaid regulations

 

  1. the work of repairing or rebuilding must be commenced and carried out with reasonable despatch and may be carried out wholly or partially upon another site (if the aforesaid regulations so necessitate) subject to the liability of the company under this clause not being thereby increased

 

  1. if the liability of the company under any item of this section apart from this clause shall be reduced by the application of any of the terms, exceptions and conditions of this section, then the liability of the company under this clause in respect of any such item shall be reduced in like proportion

 

  1. the total amount recoverable under any item of this section shall not exceed the sum insured thereby.

 

Reinstatement value conditions clause

 

In the event of property other than stock being damaged, the basis upon which the amount payable is to be calculated shall be the cost of replacing or reinstating on the same site property of the same kind or type but not superior to nor more extensive than the insured property when new

provided that

 

  1. the work of replacement or reinstatement (which may be carried out upon another site and in any manner suitable to requirements of the insured subject to the liability of the company not being thereby increased) must be commenced and carried out with reasonable despatch, otherwise no payment, beyond the amount which would have been payable if these reinstatement value conditions had not been incorporated herein, shall be made

 

  1. until expenditure has been incurred by the insured in replacing or reinstating the property, the company shall not be liable for any payment in excess of the amount which would have been payable if these conditions had not been incorporated herein

3 .  if, at the time of replacement or reinstatement, the sum representing the cost which would have been incurred in replacement or reinstatement if the whole of the insured property had been damaged, exceeds the sum insured thereon at the commencement of any damage to such property by a defined event, then the insured shall be considered as being their own insurer for the excess and shall bear a rateable proportion of the loss accordingly. Each item of this section (if more than one) to which these condition apply shall be separately subject to this provision.

 

  1. these conditions shall be without force or effect if

(a) the insured fail to intimate to the company within six months of the date of damage or such further time as the company may in writing allow, their intention to replace or reinstate the property

(b) the insured are unable or unwilling to replace or reinstate the property on the same or another site.

 

 

 

Alternative replacement conditions (design capacity) clause

 

In the event of property insured which has a measurable function, capacity or output being damaged by a defined event and it not being possible to replace or reinstate such property in terms of the reinstatement value conditions, then the company will pay the cost of replacing such property with property the quality, capacity, function or output of which is as near as possible but not inferior to that of the original property.

provided that

  1. proviso 1, 2, 3 and 4 of the reinstatement value conditions apply equally to this clause

 

  1. in applying the provisions of proviso 3 of the reinstatement value conditions, the cost (as provided for in proviso 3) “which would have been incurred in replacement or reinstatement if the whole of the insured property had been damaged” will be increased by such amount payable under the alternative replacement clause which is in excess of that which would have been payable under the reinstatement value conditions clause, had it been possible to reinstate or replace the property in terms thereof.

 

Temporary removal clause

 

Except in so far as it is otherwise insured the property insured is covered whilst temporarily removed elsewhere on the premises stated in the schedule or to any other premises including transit by road, rail or inland waterway anywhere within the United Republic of Tanzania Kenya Uganda Zambia and Malawi

provided that

  1. unless such temporary removal is for the purpose of cleaning, renovation, repair or similar process, the liability of the company shall not exceed 15 per cent of the sum insured applicable to any item
  2. the amount payable under this clause shall not exceed the amount that would have been payable had the loss occurred on the part of the premises from which the property is temporarily removed.

 

Tenants clause

 

The company’ s liability to the insured shall not be affected by any act or omission on the part of any owner of a building or any tenant (other than the insured) without the insured’s knowledge. The insured shall, however, inform the company as soon as such act or omission which is a contravention of any of the terms, exceptions or conditions of this section comes to their knowledge and will be responsible for any additional premium payable from the date any increased hazard shall be assumed by the company

 

Stock declaration conditions (if stated in the schedule to be included)

 

In respect of stock and materials in trade insured under this section being subject to the stock declaration conditions, the premium is calculated on 75 per cent of the sum or sums insured thereon, subject to the following specific conditions.

  1. (a) The insured shall declare to the company in writing the market value of their stock and materials in trade on the last of each month/quarter (as stated in the schedule) and shall make such declaration within 30 days thereof, otherwise they shall be deemed to have declared the sum insured on such property as the market value thereof.

(b) After each period of insurance, the premium shall be calculated on the average sum insured, namely the total of the values declared or deemed to have been declared, divided by the number of declarations due to have been made. If the resultant premium shall differ from the provisional premium, the difference shall be payable by or to the insured as the case may be, but the amount payable by the company shall not exceed 50 per cent of the provisional premium.

 

  1. Any claim hereunder shall be settled on the basis of the market value immediately anterior to the damage.
  2. If, after the occurrence of damage, it is found that the amount of the last declaration is less than the amount that ought to have been declared, then the amount which would have been recoverable by the insured shall be reduced in such proportion as the amount of the said declaration bears to the amount that ought to have been declared or to the sum insured, which ever is the lesser amount. The provisions of this condition shall, if applicable, operate cumulatively with the provisions of the specific condition relating to average.
  3. In consideration of the insurance not being reduced by the amount of any loss, the insured shall pay additional premium on the amount of the loss from the date thereof to expiry of the period of insurance and such extra premium shall not be taken into account in, and shall be distinct from, the final adjustment premium.
  4. The liability of the company shall not exceed the sum insured and premium shall not be receivable on values in excess thereof.
  5. The above specific conditions shall apply separately to each item of the specification to which these stock declaration conditions apply.

 

Public supply connections clause

 

This section is extended to cover accidental damage to water, sewerage, gas, electricity, and telecommunication connections, the property of the insured or for which they are legally responsible between the property insured and the public supply or mains.

 

Escalator clause extension (if stated in schedule to be included)

During each period of insurance, the sum(s) insured under columns 1 and/or 3 of this section shall be increased by that portion of the percentage specified in the schedule which the number of days since the commencement of such period bears to the whole of such period. Unless agreed otherwise, these provisions shall only apply to the sum(s) insured in force at the commencement of the period of insurance.

At each renewal date, the insured shall notify the company of the sums(s) to be insured for the forthcoming period of insurance and the percentage increase required for such period. In default thereof, the provisions of this clause shall cease to apply.

The additional premium for this extension shall be 50% of the premium produced by applying the percentage specified to the annual premium for the sum insured to which this extension applies.

 

Disposal of Salvage clause (if stated in the schedule to be included)

 

Without diminishing the rights of the company to rely on the provisions of the general conditions in the event of a loss, the company agrees that it will not sell or otherwise dispose of any property which is the subject of a claim hereunder without the consent of the insured provided that the insured can establish to the satisfaction of the company that to do so will prejudice their interests in which event the company agrees to give the insured first option to repurchase such property at its fair intrinsic value or market value whichever is the greater.

The insured shall not be entitled under the provisions of this clause to abandon any property to the company whether taken possession of by the company or not.

 

Subsidence and landslip extension to sub-section A (if stated in the schedule to be included)

 

The following peril is added to the perils applicable to sub-section A – Contents.

 

  1. Damage caused by subsidence or landslip

provided that the insured shall bear the first portion of each and every claim up to an amount calculated at 1 per cent of the sum insured on the property or US$100 whichever is the greater.

For the purposes hereof, any damage insured shall be deemed to have been caused by fire

provided that this extension does not cover

 

8.1 damage to drains, watercourses, boundary walls, garden walls, retaining walls, gates, posts or fences unless specifically insured

 

8.2     damage caused by or attributable to

 

(a)  faulty design or construction of, or the removal or weakening of support to, any building situated at the insured premises

(b) workmen engaged in making any structural alterations, additions or repairs to any building situated at the insured premises

(c)  excavation on or under land other than excavations in the course of mining operations

 

8.3. consequential loss of any kind whatsoever except loss of rent.

 

In any action suit or other proceeding where the company alleges that, by reason of the provisions of this extension, any damage is not covered by this insurance, the burden of proving the contrary shall be upon the insured.

 

Prevention of access extension to sub-section C (if stated in the schedule to be included)

If property within a 10 km radius of the premises stated in the schedule is lost or damaged by a peril defined in sub-section A during the period of insurance and this prevents or hinders the use of or access to the property insured by this section, the company will pay any loss of rent the insured may incur as a result thereof up to an amount not exceeding 25 per cent of the sum insured on the affected property. The loss of rent calculation will be based on the rent payable immediately preceding the loss or damage or its equivalent rental value.

 

Security firms (applicable to sub-section D – Liability)

Notwithstanding specific exception 3, if, in terms of a contract with a security firm engaged in the course of the insured’s business (as owner of the premises specified in the schedule) to protect the insured’s property at the premises stated in the schedule, the insured becomes legally liable for the acts or omissions of the employees of the security firm in the course of their employment at these premises, then this sub-section includes such legal liability to the extent that indemnity would have been granted under this sub-section had the said employees been under a contract of service to the insured and not the security firm, but not exceeding the limit of liability stated in the schedule for this sub-section.

 

If, at the time of an occurrence-giving rise to a claim, the security firm is entitled to indemnity under any other policy in respect of the same event, the company shall not be liable to make any payment except in respect of any amount above the amount payable under such other policy.

 

Architects’ and other professional fees clause

 

The insurance under sub-section A includes professional fees (for estimates, plans, specifications, quantities, tenders and supervision) necessarily incurred in the reinstatement or replacement of the property insured following damage by a defined event, but in no case exceeding 15 per cent of the amount payable in respect of such damage and provided that the total amount recoverable shall not exceed the sum insured on the property affected. The amount payable in respect of such fees shall not include expenses incurred in connection with the preparation of the insured’s claim.

 

Capital additions clause

 

The insurance under this section covers alterations, additions and improvements (but not appreciation in value in excess of the sum(s) insured) to the property for an amount not exceeding 15 per cent of the sum insured thereon, it being understood that the insured undertake to advise the company each quarter of such alterations, additions and improvements and to pay the appropriate additional premium thereon.

 

Cost of demolition and clearing and erection of hoardings clause

The insurance under this section includes costs necessarily incurred by the insured in respect of the demolition of property insured and/or the removal of debris and in providing, erecting and maintaining hoardings required during demolition, site clearing and/or building operations following damage to the property insured by a defined event, provided that the total amount recoverable shall not exceed the sum insured on the property affected.

The company will not pay for any costs or expenses

 

  1. incurred in removing debris except from the site of such property destroyed or damaged and the area immediately adjacent to such site

 

  1. arising from pollution or contamination of property not insured by this policy/section.

 

Fire extinguishing charges clause

 

Any costs relating to the extinguishing or fighting of fire shall be deemed to be damage to the insured property and shall be payable in addition to any other payment for which the company may be liable in terms of this section provided the insured is legally liable for such costs and the property insured was in danger from the fire.

 

Mortgage clause

The interest of any mortgage in the insurance under this section shall not be prejudiced by any act or omission on the part of the mortgagor without the mortgage’s knowledge. The mortgage shall, however, inform the company as soon as any such act or omission comes to his knowledge and shall be responsible for any additional premium payable from the date any increased hazard shall, in terms of this clause, be assumed by the company.

Municipal plans scrutiny fee clause

The insurance under this section includes municipal plans scrutiny fees, provided that the total amount recoverable under any item shall not exceed the sum insured on the property insured so affected.

 

Public authorities’ requirements clause

The insurance under this section includes such additional cost of repairing or rebuilding the damaged property incurred solely by reason of the necessity to comply with building or other regulations under, or framed in pursuance of, any act of parliament or ordinance of any provincial, municipal or other local authority, provided that

 

  1. the amount recoverable under this clause shall not include

(a) the cost incurred in complying with any of the aforesaid regulations

(i)  in respect of damage occurring prior to granting of this clause

(ii) in respect of damage not insured by this section

(iii) under which notice has been served upon the insured prior to the happening of the         damage

(iv) in respect of undamaged property or undamaged portions of property other than        foundations (unless foundations are specifically excluded from this insurance) of that portion damaged

 

(b)  the additional cost that would have been required to make good the property damaged to a condition equal to its condition when new had the necessity to comply with any of the aforesaid regulations not arisen

 

(c)  the amount of any rate, tax, duty, development or other charge or assessment arising from capital appreciation which may be payable in respect of the property or by the owner thereof by reason of compliance with any of the aforesaid regulations

  1. the work of repairing or rebuilding must be commenced and carried out with reasonable despatch and may be carried out wholly or partially upon another site (if the aforesaid regulations so necessitate) subject to the liability of the company under this clause not being thereby increased

 

  1. if the liability of the company under any item of this section apart from this clause shall be reduced by the application of any of the terms, exceptions and conditions of this section, then the liability of the company under this clause in respect of any such item shall be reduced in like proportion

 

  1. the total amount recoverable under any item of this section shall not exceed the sum insured thereby.

 

Railway and other subrogation clause

The insured shall not be prejudiced by signing the “Tanzanian Railway Authority or Tanzanian and Zambian Railway Authority Cartage (Hazardous Premises) Indemnity” or other special agreements with the Tanzanian Railway Authority or Tanzanian and Zambian Railway Authority regarding private sidings or similar agreements with other government bodies.

 

Reinstatement value conditions

In the event of the property being damaged, the basis upon which the amount payable is to be calculated shall be the cost of replacing or reinstating on the same site property of the same kind or type but not superior to or more extensive than the insured property when new, provided that

 

  1. the work of replacement or reinstatement (which may be carried out upon another site and in any manner suitable to the requirements of the insured subject to the liability of the company not being thereby increased) must be commenced and carried out with reasonable despatch, otherwise no payment beyond the amount which would have been payable if these reinstatement value conditions had not been incorporated herein shall be made

 

  1. until expenditure has been incurred by the insured in replacing or reinstating the property, the company shall not be liable for any payment in excess of the amount which would have been payable if these conditions had not been incorporated herein

 

  1. if, at the time of replacement or reinstatement, the sum representing the cost which would have been incurred in replacement or reinstatement if the whole of the insured property had been damaged exceeds the sum insured thereon at the commencement of any damage to such property by a defined event, then the insured shall be considered as being their own insurer for the excess and shall bear a rateable proportion of the loss accordingly. Each item of this section (if more than one) to which these conditions apply shall be separately subject to this provision

 

  1. these conditions shall be without force or effect if

(a) the insured fails to intimate to the company within six months of the date of damage, or such further time as the company may in writing allow, their intention to replace or reinstate the property

 

(b)     the insured are unable or unwilling to replace or reinstate the property on the same or       another site.

 

Temporary removal clause

 

Except in so far as otherwise insured, landlord’s fixtures and fittings are covered while temporarily removed to any other premises including transit by road, rail or inland waterway anywhere within the       United Republic of Tanzania provided that the amount payable under this clause shall not exceed that which would have been payable had the loss occurred on the premises from which the property is temporarily removed.

 

Tenants clause

The company’s liability to the insured shall not be affected by any act or omission on the part of any tenant (other than the insured) without the insured’s knowledge. The insured shall, however, inform the company as soon as any such act or omission which is a contravention of any of the terms, exceptions or conditions of this section comes to their knowledge and will be responsible for any additional premium payable from the date any increased hazard shall be assumed by the company.

 

Escalator clause extension (if stated in the schedule to be included)

 

During each period of insurance, the sum(s) insured under sub-section A of this section shall be increased by that portion of the percentage specified in the schedule which the number of days since the commencement of such period bears to the whole of such period. Unless agreed otherwise, these provisions shall only apply to the sum(s) insured in force at the commencement of the period of insurance.

At each renewal date, the insured shall notify the company of the sum(s) to be insured for the forthcoming period of insurance and the percentage increase required for such period. In default thereof, the provisions of this clause shall cease to apply.

The additional premium for this extension shall be 50% of the premium produced by applying the percentage specified to the annual premium for the sum insured to which this extension applies.

 

Malicious damage extension

 

Subject otherwise to the terms, conditions, exclusions, exceptions and warranties contained herein, this section is extended to cover loss or damage directly occasioned by or through or in consequence of the deliberate or willful or wanton act of any person committed with the intention of causing such loss or damage other than loss or damage to

 

  1. movable property which is

(a)  stolen

(b) damaged in an attempt to remove it or part of it from any premises owned or occupied by  the Insured

 

  1. movable or immovable property which is damaged by thieves whilst breaking into or out of or attempting to break into or out of any premises owned or occupied by the Insured

 

  1. immovable property owned or occupied by the Insured occasioned by or through or in consequence of

(i)  the removal or partial removal or any attempt thereat of

(ii) the demolition or partial demolition or any attempt thereat of

the said immovable property or any part thereof with the intention of stealing any part thereof provided that this extension does not cover

(a)  loss or damage related to or caused by fire or explosion

(b) consequential or indirect loss or damage of any kind or description whatsoever other than loss of rent if specifically insured

 

(c)   loss or damage resulting from total or partial cessation of work or the retarding or interruption or cessation of any process or operation

(d) loss or damage occasioned by permanent or temporary dispossession resulting from confiscation commandeering or requisition by any lawfully constituted authority

  • loss or damage related to or caused by any occurrence referred to in General exception 1 (A) (i), (ii), (iii), (iv), (v) or (vi) of this policy or the act of any lawfully established authority in controlling preventing suppressing or in any other way dealing with any such occurrence.

 

If the Company alleges that, by reason of proviso (a), (b), (c), (d) or (e), loss or damage is not covered by this section, the burden of providing the contrary shall rest on the Insured.

If any building insured or containing the insured property becomes unoccupied for 30 consecutive days the insurance in respect of this extension is suspended as regards the property affected unless the insured, before the occurrence of any damage obtains the written agreement of the company to continue this extension.

During the period of the initial unoccupancy of 30 consecutive days the insured shall become a co-insurer with the company and shall bear a proportion of any damage equal to 20% of the claim before deduction of any first amount payable.

 

Riot and strike extension (if stated in the schedule to be included)

 

Subject otherwise to the terms, conditions, exclusions, exceptions and warranties contained therein sub-sections A, B and C of this section are extended to cover loss or damage directly occasioned by or through or in consequence of:

  1. civil commotion, labour disturbances, riot, strike or lockout;

 

  1. the act of any lawfully established authority in controlling, preventing, suppressing or in any other way dealing with any occurrence referred to in (1) above;

 

(a) consequential or indirect loss or damage of any kind or description whatsoever, other than loss of rent if specifically insured;

(b) loss or damage resulting from total or partial cessation of work, or the retarding or interruption or cessation of any process or operation;

(c)  loss or damage occasioned by permanent or temporary dispossession resulting from confiscation, commandeering or requisition by any lawfully constituted authority;

(d) loss or damage related to or caused by any occurrence referred to in general exception 1 (A) (ii), (iii), (iv), (v) or (vi) of this policy or the act of any lawfully established authority in controlling, preventing, suppressing or in any other way dealing with any such occurrence.

 

If the company alleges that, by reason of proviso (a), (b), (c) or (d) loss or damage is not covered by this section, the burden of proving the contrary shall rest on the insured.

 

Alterations and misdescription clause

 

The insurance under this section shall not be prejudiced by any alteration or misdescription of occupancy whether due to the transfer of processes or machinery or by virtue of structural alterations, repairs to buildings, machinery or plant, provided that notice is given to the company as soon as practicable after such event and the insured agrees to pay additional premium if required.

 

Capital additions clause

The insurance under this section covers alterations, additions and improvements (but not appreciation in value in excess of the sums insured) to the property for an amount not exceeding 15 per cent of the sum insured thereon, it being understood that the insured undertake to advise the company each quarter of such alterations, additions and improvements and to pay the appropriate additional premium thereon.

 

Fire extinguishing charges clause

Any costs relating to the extinguishing or fighting of fire shall be deemed to be damage to the insured property and shall be payable in addition to any other payment for which the company may be liable in terms of this section, provided the insured is legally liable for such costs and the insured property was in danger from the fire.

 

Locks and keys clause

In addition to the limit of indemnity stated in the schedule, the company will indemnify the insured in respect of the cost of replacing locks and keys to any insured office premises following upon the disappearance of any key to such premises or following upon the insured having reason to believe that any unauthorized person may be in possession of a duplicate of such key

provided that

(i)  the company’s liability shall not exceed $150 in respect of any one event

(ii) the company shall not be liable for the first $10 of each and every event.

 

New and additional premises clause

If the insured occupies offices or consulting rooms other than those situated as stated in the schedule in the United Republic of Tanzania, the insurance by this section shall apply as though such offices or consulting rooms were office premises within the meaning of this section

provided that

(i)  the insured shall, within a reasonable time of taking occupation, advise the company thereof and pay additional premium calculated pro rata from the time of taking occupation until the end of the then current period of insurance

(ii) this clause shall not apply to any loss if and so far as the same is otherwise insured.

Removal of debris clause

The insurance under this section is extended to include such reasonable costs and expenses as may be necessarily incurred by the insured in respect of the removal of debris following loss of or damage to the insured property by any peril hereby insured against, provided that the liability of the company for such loss or damage and costs and expenses shall not exceed in the aggregate the sum expressed in the schedule to be insured on the property affected.

The company will not pay for any costs or expenses

  1. incurred in removing debris except from the site of such property destroyed or damaged and the area immediately adjacent to such site
  2. arising from pollution or contamination of property not insured by this policy/section.

 

Temporary removal clause

Except in respect of the personal property of any partner, director or employee of the insured, loss of or damage to the insured property by any peril hereby insured against while such property is temporarily contained in any building in the United Republic of Tanzania shall be deemed to be loss or damage happening while such property is contained in the office premises.

 

Temporary repairs and measures after loss clause

The insurance under this section is extended to include all reasonable costs and expenses incurred by the insured in effecting such temporary repairs and by taking such temporary measures as may be reasonably necessary after loss of or damage to the insured property by any peril hereby insured against, provided that the liability of the company for such loss or damage and costs and expenses shall not exceed in the aggregate the sum expressed in the schedule to be insured on the property affected.

 

Tenants clause

The company’s liability to the insured shall not be affected by any act or omission on the part of any owner of a building or any tenant (other than the insured) without the insured’s knowledge. The insured shall, however, inform the company as soon as any such act or omission which is a contravention of any of the terms, exceptions or conditions of this section comes to their knowledge and will be responsible for any additional premium payable from the date any increased hazard shall be assumed by the company.

 

Replacement value condition

The basis upon which the amount payable for a claim in respect of contents is calculated shall be either the replacement of the contents by similar property in a condition equal to but not better or more extensive than its condition when new or the repair of the contents to a condition substantially the same as but not better than its condition when new provided that if, at the time of replacement or repair, the sum representing the cost which would have been incurred in replacement if the whole of the contents had been lost, destroyed or damaged beyond repair exceeds the sum insured thereon at the time of the loss or damage, then the insured shall be considered as being their own insurer for the difference and shall bear a rate able proportion of the loss accordingly.

 

Malicious damage extension

Subject otherwise to the terms, conditions, exceptions and warranties contained therein, sub-sections A, B and C are extended to cover damage directly occasioned by or through or in consequence of the deliberate or willful or wanton act of any person committed with the intention of causing such damage, other than damage to

 

  1. moveable property which is

(a) stolen

(b) damaged in an attempt to remove it or part of it from any premises owned or occupied by        the insured

 

  1. moveable or immoveable property which is damaged by thieves whilst breaking into or out of or attempting to break into or out of any premises owned or occupied by the insured

 

  1. immoveable property owned or occupied by the insured occasioned by or through or in consequence of

(a) the removal or partial removal or any attempt thereat of

(b) the demolition or partial demolition or any attempt thereat of the said immovable property or any part thereof with the intention of stealing any part thereof provided that this extension does not cover

(a) damage related to or caused by fire or explosion

(b) consequential or indirect loss or damage of any kind or description whatsoever other than loss of rent if specifically insured

(c) damage resulting from total or partial cessation of work or the retarding or interruption or cessation of any process or operation

(d) damage occasioned by permanent or temporary dispossession resulting from confiscation, commandeering or requisition by any lawfully constituted authority

(e) damage related to or caused by any occurrence referred to in general exception 1 (A) (i), (ii), (iii), (iv), (v) or (vi) of this policy or the act of any lawfully established authority in controlling, preventing, suppressing or in any other way dealing with any such occurrence.

If the company alleges that, by reason of proviso (a), (b), (c), (d) or (e), loss or damage is not covered by this section, the burden of proving the contrary shall rest on the insured.

If any building insured or containing the insured property becomes unoccupied for thirty consecutive days, the insurance in respect of this extension is suspended as regards the property affected unless the insured, before the occurrence of any damage, obtains the written agreement of the company to continue this extension.

During the period of the initial unoccupancy of thirty consecutive days, the insured shall become a co-insurer with the company and shall bear a proportion of any damage equal to 20% of the claim before deduction of any first amount payable.

 

Riot and strike extension (if stated in the schedule to be included)

Subject otherwise to the terms, conditions, exclusions, exceptions and warranties contained therein, sub-sections A, B and C of this section are extended to cover loss or damage directly occasioned by or through or in consequence of:

(i)  civil commotion, labor disturbances, riot, strike or lockout;

(ii) the act of any lawfully established authority in controlling, preventing, suppressing or in any other way dealing with any occurrence referred to in (i) above;

provided that this extension does not cover:

(a)  consequential or indirect loss or damage of any kind or description whatsoever, other than loss of rent if specifically insured;

(b) loss or damage resulting from total or partial cessation of work, or the retarding or interruption or cessation of any process or operation;

(c)  loss or damage occasioned by permanent or temporary dispossession resulting from confiscation, commandeering or requisition by any lawfully constituted authority;

(d) loss or damage related to or caused by any occurrence referred to in general exception 1 (A) (ii), (iii), (iv), (v) or (vi) of this policy or the act of any lawfully established authority in controlling, preventing, suppressing or in any other way dealing with any such occurrence.

 

If the company alleges that, by reason of proviso (a), (b), (c) or (d), loss or damage is not   covered by this section, the burden of proving the contrary shall rest on the insured.

 

      Theft by forcible entry extension (if stated in the schedule to be included)

The following peril is added to the perils applicable to sub-section A contents:

  1. Theft accompanied by forcible and violent entry into or exit from the offices and/or consulting rooms or any attempt thereat or as a result of theft (or any attempt thereat) following violence or threat of violence provided that

 

(i)  the company will not be liable under this extension for theft or attempted theft by any principal, partner, director or employee of the insured

(ii) the amount payable will be reduced by the first amount payable shown in the schedule for this extension

(iii) the maximum amount payable will not exceed the sum insured shown in the schedule for this extension less its first amount payable.

 

Restricted cover clause

The insurance in respect of documents, manuscripts, business books , plans, designs, patterns , models, moulds and computer system records is limited to the value of the materials and the cost of labor for recreating and excludes any expenses in connection with the production of any  information contained therein or the value of such information to the insured.

Additional costs clause

In respect of buildings , plant and machinery insured , the sum insured include

  • any costs incurred , due to the necessity to comply with building or other regulation of any public authority , in repair or reinstatement following an insured event , provided that such costs do not include
  • anything for which notice had been served on the insured prior to the insured event
  • anything connected with undamaged property or undamaged portions of property
  • rates , taxes , duties , development and other charges payable under the said regulations due to capital appreciation of the insured property

 

  • fees for the examination of municipal or other plans

 

  • costs incurred in the necessary demolition , removal of debris ( including undamaged

 

  • contents ) and the erection and maintenance of hoarding during demolition and rebuilding

 

  • the professional fees of architects , quantity surveyors and other consultants and the sum insured on all insured property includes

 

  • charges levied by any authorized fire brigade for their services but the company shall not be liable under (a), (b) or (d) unless the lost or damaged property is replaced or reinstated without undue delay nor under (d) for any expenses in connection with the preparation of the insured’s claim.

Further, the Company shall not be liable under (c) for any costs or expenses

(i)   incurred in removing debris except from the site of such property destroyed or damaged and the area  immediately adjacent to such site.

(ii)  arising from pollution or contamination of property  not insured by this policy/section

Mortgagees clause

From the date of notification , the Company accepts the interest of a mortgagee or others with an insurable interest in the insured property and will not prejudice such interest due to the act or omission of the mortgagor without the mortgagee’s knowledge , provided that the mortgagee advises the company as soon as such act or omission comes to his knowledge and agrees to be responsible for any additional premium resulting from the Company assuming any increased hazard.

 

Railway and other subrogation clause

The insured shall not be prejudiced by signing special agreements with East African Railway Authority regarding private sidings or similar agreements with other government bodies.

 

Tenants Clause

The Insured shall not be prejudiced by the act of any tenant in premises he owns or in which he is a cotenant or of the owner of any premises of which he is a tenant, provided that  the Company is notifies  as soon as he becomes aware of such act and he pays any additional premium resulting from the Company assuming any additional hazard.

Memoranda

 

  • Average (if stated in he schedule to be included)

If, on the occurrence of an insured event , the value of the insured property is greater than the sum insured thereon the insured shall be considered his own insurer for the difference and shall bear a rate able proportion of the loss accordingly.

Each item , if more than one, shall be separately subject to this memorandum.

 

  • Excluded property (if stated in the schedule to be included)

The property listed in the schedule is added to the excluded property in the definition of insured property.

 

  1. Reinstatement ( if stated in the schedule to be included)

The basis upon which the amount payable is to be calculated following an insured event to buildings , plant and machinery shall be the cost of replacing or reinstating on the same sit property of the same kind or type but not superior to nor more extensive than such insured property when new, provided that

  • the work of replacement or reinstatement (which may be carried out on another site and in any manner suitable to requirements of the insured subject to the liability of the company not being thereby increased) must be commenced and carried out with reasonable dispatch otherwise no payment beyond the amount that would have been payable if this memorandum had not been incorporated in this section  shall be made
  • The company shall not be liable for any payment beyond the amount that would have been payable if this memorandum had not been incorporated in this section , until expenditure has been incurred by the insured in replacing or reinstating the lost or damaged insured property.
  • If , at the time of replacement or reinstatement, the sum representing the cost which would have been incurred in replacement or reinstatement if the whole of the insured property had been lost or damaged exceeds the sum insured thereon on the occurrence of an insured event , the insured shall be considered his own insurer for the difference and shall bear a rate able share of loss accordingly . Each item , if more than one, to which this memorandum applies shall be separately subject to this provision
  • This memorandum shall not apply if

(i)     the insured fail to intimate to the Company within six months of the insured event or  such further time as the Company may allow in writing their intention to replace or reinstate the lost or damaged insured property

  • the insured are unable or unwilling to replace or reinstate the lost or damage insured property on the same or another site

 

  1. First loss average ( if stated in the schedule to be included)

If at the time of any loss or damage arising , the Total Value of the property described by each item does not  exceed the sums stated in the Schedule then this insurance shall be declared free of average , but if the total value of such property shall be greater than the aforementioned sums , the insured shall be considered as being their own insurer of the difference and the Company shall be liable only for such proportion of the first loss sum insured as the aforementioned sums shall bear to the Total Value not exceeding in all the Total Sum Insured by each item.

 

Power surge or lightning strikes

All loss or damage to the property insured by power surges or lightning strikes will be subject to an additional first amount payable of 10% of the net amount payable for the items so damaged subject to a minimum of US$150 but not exceeding US$120per occurrence. However, should the property insured be appropriately and adequately protected by suitable safeguards against electrical supply fluctuations, then this additional first amount payable will be waived.

 

Fire brigade charges

If any public authority empowered to do so shall charge the insured with any costs arising from their activities in dealing with the consequences of an insured peril having operated, such costs will be deemed to be damage to the property insured and will be payable in addition to any other payment for which the insurer may be liable in terms of this insurance.

 

Tenants

This insurance will not be invalidated by any act or neglect on the part of a tenant of the insured (where the insured owns the building) or another tenant or the owner of the building (where the insured is a tenant) provided that the insured notifies the company as soon as such act or neglect comes to their knowledge and pay on demand the appropriate additional premium.

 

Hire purchase/finance agreements

Where the company has knowledge of the property insured or any individual item thereof being the subject of a suspensive sale or similar agreement, payment hereunder shall be made to the owner described therein whose receipt shall be a full and final discharge to the company in respect of loss or damage indemnifiable by this sub-section of the policy.

Sub-section B: Consequential loss

Defined events

The insurance provided by this sub-section (if stated in the schedule) shall be subject to the limits of indemnity stated in the schedule and shall include

 

(i)         Increased cost of working

The insurance under this item is limited to the additional expenditure necessarily and reasonably incurred by the insured during the indemnity period in consequence of the accident for the sole purpose of avoiding or diminishing the interruption of or interference with the normal business of the insured

less any sum saved during the indemnity period in respect of such of the charges and expenses of the business as may cease or be reduced in consequence of the accident.

The indemnity by this item shall not apply directly or indirectly to

(a)        the cover provided for in item (ii) of this sub-section

(b)        the intrinsic value (including reinstatement value) of the property insured by sub-section A of this section.

 

(ii)        Reinstatement of data/programs

Costs and expenses necessarily and reasonably incurred by the insured for the reconstitution or   recompilation of data and/or programs recorded on or stored in data-carrying media which is lost as a result of accidental erasure (which shall include the events defined in the indemnity clause to sub-section A of this section) or by theft or by the deliberate willful or wanton intention of causing the cancellation or corruption of data or programs as provided for in the sub-section A of this section

provided that

(a)        the indemnity shall not extend to nor include such costs incurred due to program errors, incorrect entry or the inadvertent cancellation or corruption of data and/or programs

(b)        in respect of each and every event or series of events arising out of or in connection with any one event or cause indemnifiable by this item, the insured shall bear the amount stated in the schedule as the first amount payable

(c)        where the insured elects to insure programs (software), a schedule of such programs shall be lodged with the company at the commencement of each period of insurance.

 

Definitions

Indemnity period

The period during which the results of the business shall be affected in consequence of the accident beginning with the number of hours/days detailed in the schedule as the time excess after the occurrence of the accident and ending not later than the expiry of the period detailed in the schedule as the indemnity period after such occurrence.

The time excess shall not apply to loss or damage directly caused by fire, storm (excluding lightning), subsidence, wind or the collapse of buildings.

 

Accident

  1. (Applicable to increased cost of working only) physical loss of or damage to the property insured described in the schedule from any cause as provided for under sub-section A of this section, liability under which sub-section shall, except for the provisions relating to the first amount payable or the maintenance/lease agreements, be a condition precedent to liability hereunder.
  2. Failure of the public supply of electricity at the terminal ends of the service feeders in the premises from any accidental cause other than

(a)        the deliberate act of the insured or any supply authority

(b)        drought or shortage of fuel at any electricity utility.

            Special conditions applicable to failure of the public supply of electricity

(a)        The liability of the company shall not exceed the sum insured by this sub-section.

(b)        The indemnity period shall commence 12 hours after the failure and end not later than 30 days after such failure.

 

The limit of liability

The liability of the company shall not exceed the amounts specified in the schedule (relating to sub-section B) in respect of any one accident or series of accidents arising out of or in connection with any one event.

In the event of the payment by the company of any sum or sums in discharge of the company’s liability in terms of this sub-section, the sum(s) insured shall automatically be reinstated for the remainder of the current period of insurance.

The insured shall pay to the company the additional premium required by the company calculated pro rata from the day of the accident to the end of the period of insurance.

 

Specific exceptions to sub-section B

Unless specifically provided for

 

  1. Fines and penalties

the company shall not be liable to indemnify the insured in respect of fines or penalties for breach of contract for late or non-completion of orders or any penalties of whatsoever nature

 

  1. Loss of profit

the company shall not be liable to indemnify the insured in respect of loss of profit or consequential loss of whatsoever nature unless specifically provided for herein.

Clauses and extensions Reinstatement

Notwithstanding anything to the contrary contained in this sub-section, it is hereby declared and agreed that, in the event of any interruption, following loss or damage, being aggravated by:

(a)        the insured being unable or unwilling to replace or reinstate property destroyed or damaged, or failing to carry out such replacement or reinstatement within a reasonable time, or

(b)        addition, alteration or improvements being effected to the property insured on the occasion of its repair,

the company’s liability under this section shall be related solely to the business interruption which would have arisen in the absence of (a) and (b).

 

TTCL access lines (if stated in the schedule to be included)

Subject to the limits specified in the schedule, consequential loss as provided for under defined events (i) and (ii) of sub-section B arising from accidental failure of the TTCL access lines is included, provided always that the insurance under this extension shall be subject to the special conditions below.

 

(a)       The liability of the company shall not exceed the sum insured by this sub-section.

(b)        The indemnity period shall commence 12 hours after the failure and end not later than 30 days after such failure.

(c)        The insurance provided does not cover loss occasioned by the deliberate act of any TTCL authority or by the exercise of such TTCL authority of its power to withhold or restrict access to its lines.

 

The indemnity by this section shall include

(a)        additional equipment or programs purchased by the insured of a similar nature to that specified in the schedule, provided that, in respect of loss or damage due to electrical, mechanical or electronic breakdown or explosion, the insurance shall only commence after satisfactory completion of installation or commissioning/testing and put into use at the insured’s premises

(b)        provision for devaluation or revaluation of the currency of the Republic of Kenya against that of the country of origin of the property insured and other inflationary trends, which may result in the escalation of the sum insured (representing the installed new replacement value) of the property insured

provided that the increase shall not exceed, by more than 25%, the total sum insured for sub-section A specified in the schedule, it being agreed that the insured will advise the company of such alterations after the expiry of each period of insurance and pay the appropriate premium thereon but not exceeding 50% of the difference.

 

If, during the indemnity period, the business at the premises be interrupted or interfered with in consequence of the insured being prevented from having access to the property insured situated at the premises caused by damage to property within a 10 km radius of the insured premises as described in the schedule by fire, lightning, explosion, storm, tempest, flood, water inundation, earthquake or impact by vehicles, the company shall indemnify the insured for loss resulting from such interruption or interference in accordance with the provisions contained herein

provided that

(i)         the insured is not entitled to indemnity as provided for in this extension under any other policy or section of this policy

(ii)        this section shall not be brought into contribution with any other policy or section of this policy bearing a like extension.

 

Special exception (sub-sections A & B)

Viruses, Trojans and worms

The company shall not indemnify the insured for loss or damage of whatsoever nature arising directly or indirectly out of or in connection with the action of any computer virus, Trojan or worm(s) or other similar destructive media.

General extension

Incompatibility cover (if stated in the schedule to be included)

Notwithstanding anything contained to the contrary in the policy, the indemnity by sub-sections A & B of this section shall indemnify the insured for costs incurred in respect of

(a)        modifications or alterations to the property insured directly consequent upon indemnifiable loss or damage to ensure the operating integrity of the electronic system

(b)        replacement or upgrading of legal programs to achieve compatibility with the modified or altered electronic system

(c)        the restoration of previously captured data which has become inaccessible due to the modifications to or alterations of the electronic system or in consequence of the replacement or upgrading of legal programs;

provided always that

(1)        the costs provided for in (a), (b) and (c) above shall be necessarily and reasonably incurred to maintain normal working conditions

(2)        such additional costs shall be incurred as a direct consequence of indemnifiable loss or damage in terms of sub-sections A or B (item ii) of this section

(3)        the cover afforded hereunder shall be restricted to

(i)         parts or components of the electronic system which are not indemnifiable under sub-section A hereof

(ii)        programs or data reinstated not indemnifiable under item (ii) of sub-section B hereof;

(4)     the indemnity by this extension shall, in respect of any one event, be limited in the aggregate to twenty per cent (20%) of the applicable total sum insured under sub-section A (The limit of indemnity) and sub-section B (item (ii)) or US$4,000, whichever is the lesser.

 

Extended reporting option

At the option of the insured and subject to payment of an additional premium to be determined and subject to all the terms, exceptions and conditions of this section, the company agrees to extend the period during which the insured may report an event in terms of General condition 6 for a period to be agreed, but in no circumstances exceeding 36 months (hereinafter referred to as extended reporting period)

provided that

(a)        this option may only be exercised in the event of the company cancelling or refusing to renew this section

(b)        this option must be exercised by the insured in writing within 30 days of cancellation or non-renewal

(c)        once exercised, the option cannot be cancelled by either the insured or the         company

(d)        the insured has not obtained insurance equal in scope and cover to this section as expiring

(e)        the company shall only be liable for a defined event which occurred after the retroactive date but prior to date of cancellation or non-renewal

(f)        claims first made against the insured or any reported events by the insured during the extended reporting period shall be treated as if they were first made or reported on the last day preceding the cancellation or non-renewal

(g)        the total amount payable by the company for claims made or reported events during the extended reporting period shall not have the effect of increasing the limit of indemnity applicable as on the last day preceding the cancellation or non-renewal

any claim made, following a reported event during the extended reporting period, which is first made against the insured in writing more than 48 months after the last day preceding cancellation or non-renewal, shall not be subject to indemnification by this extension. If the claimant is a minor, the period of 48 months is extended until the expiry of 12 months after the attainment of majority by the claimant.

Principals

Where a principal and the insured are liable for the same damages and where any contract or agreement between a principal and the insured so requires, the company will, notwithstanding the aforementioned Specific exception (a) above, indemnify the principal in like manner to the insured but only so far as concerns the liability of the principal to an employee as aforementioned for death or bodily injury to or illness of such person resulting from the negligence of the insured or the insured’s employees

provided that

(a)        in the event of a claim in terms of this extension, the insured shall endeavour to arrange with the principal for the conduct and control of all claims to be vested in the company

(b)        the principal shall, as though he were the insured fulfil and be subject to the terms, exceptions and conditions (both general and specific) of this policy in so far as they can apply

(c)        the liability of the company is not hereby increased.