INDEX
GENERAL TERMS, EXCEPTIONS, CONDITIONS AND PROVISIONS 1
FIRE - SECTION 1 7
BUILDINGS COMBINED - SECTION 2 13
OFFICE CONTENTS - SECTION 3 19
BUSINESS INTERRUPTION - SECTION 4 23
ACCIDENTAL DAMAGE - SECTION 5 29
ELECTRONIC EQUIPMENT - SECTION 6 33
ACCOUNTS RECEIVABLE - SECTION 7 39
BUSINESS ALL RISKS - SECTION 8 41
THEFT - SECTION 9 43
MONEY - SECTION 10 45
SAIA RECOMMENDED CHEQUE 51
GLASS - SECTION 11
53
FIDELITY - SECTION 12 55
GOODS IN TRANSIT - SECTION 13 61
PUBLIC LIABILITY (CLAIMS MADE BASIS) - SECTION 14 63
PUBLIC LIABILITY (OCCURRENCE BASIS) - SECTION 15 69
EMPLOYER’S LIABILITY (CLAIMS MADE BASIS) - SECTION 16 73
PRIVATE EDGE - SECTION 17 MACHINERY BREAKDOWN - SECTION 18 75
KIDNAP AND WRONGFUL DETENTION (CONSULTANT’S COSTS) - SECTION 19 93
MOTOR - SECTION 20 95
85
ADDITIONAL GENERAL TERMS, EXCEPTIONS, CONDITIONS
AND PROVISIONS APPLICABLE TO SECTIONS 21, 22 AND 23 103
GROUP PERSONAL ACCIDENT - SECTION 21 109
IMAGE PROTECTOR - SECTION 22 113
WORLD BUSINESS CARD - SECTION 23 115
Index Page 1 of 1
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
GENERAL TERMS, EXCEPTIONS,
CONDITIONS AND PROVISIONS
Subject to the terms, exceptions, conditions and provisions (precedent or otherwise) and in consideration of, and conditional upon, payment of
the premium within a fifteen day period of grace, after the due date or on behalf of the insured name in this schedule and receipt thereof by or on
behalf of Chartis SA LIMITED (hereinafter referred to as the company), the company agrees to indemnify the insured by payment or, at the option
of the company, by replacement, reinstatement or repair in respect of the defined events occurring during the period of insurance and as otherwise
provided under the sections agreed upon up to the sums insured, limits of indemnity, compensation and other amounts specified.
Any proposals or other information supplied by or on behalf of the insured shall form the basis of this contract of insurance.
Where more than one insurance company or insurer participates in this insurance, the expression “company” shall be amended to “insurers”
wherever it appears in this policy. In this event the percentage share of each insurer will be as expressed in the schedule of this policy and the liability
of each such insurer individually shall be limited to the percentage share set against its name.
Specific terms, exceptions, conditions and provisions shall override general terms, exceptions, conditions and provisions. If the insured is not insured
in terms of any section of this Multi Armour policy that section shall not be used in order to interpret the applicable section of this policy.
If an event occurs that results in loss or damage which could, but for this provision entitle the insured to an indemnity under more than one provision
of this policy for the same loss, the insured shall only be entitled to an indemnity under one such provision and the insured may elect under which
provision to claim but the insured will be bound by that election
General exceptions
1. (A) This policy does not cover loss, destruction of or damage to property, directly or indirectly caused by, related to or in consequence
of:
(i) civil commotion, labour disturbances riot, strike, lockout or public disorder or any act or activity which is calculated or directed
to bring about any of the aforegoing;
war, invasion, act of foreign enemy, hostilities or warlike operations (whether war be declared or not) or civil war;
(ii) a) mutiny, military rising, military or usurped power, marital law or state of siege, or any other event or cause which
determines the proclamation or maintenance of martial law or state of siege;
insurrection, rebellion or revolution;
b) (iii) any act (whether on behalf of any organisation, body or person or group of persons) calculated or directed to overthrow or
influence any State or Government or any provincial, local or tribal authority with force or by means of fear, terrorism or
violence;
(iv) any act which is calculated or directed to bring about loss or damage in order to further any political aim, objective or cause,
or to bring about any social or economic change, or in protest against any State or Government or any provincial, local or
tribal authority, or for the purpose of inspiring fear in the public or any section thereof;
(v) any attempt to perform any act referred to in clause (iv) or (v) above;
(vi) the act of any lawfully established authority in controlling, preventing, suppressing or in any other way dealing with any
occurrence referred to in clause A (i), (ii), (iii), (iv), (v) or (vi) above.
(B) 2. If the company alleges that, by reason of clause A (i), (ii), (iii), (iv), (v), (vi) or (vii) of this exception, loss or damage is not covered by this policy, the burden of proving the contrary shall rest on the insured.
This policy does not cover loss or damage caused directly or indirectly by or through or in consequence of any occurrence for
which a fund has been established in terms of the War Damage Insurance and Compensation Act, 1976(No.85 of 1976) or any
similar Act operative in any of the territories to which this policy applies.
Computer Virus and External Networks exclusions
This policy does not insure loss, damage, destruction, distortion, erasure, corruption or alteration of ELECTRONIC DATA caused by or
arising out of a COMPUTER VIRUS or the FAILURE OF AN EXTERNAL NETWORK or loss of use, reduction in functionality, cost or expense
of whatsoever nature resulting therefrom, regardless of any other cause or event contributing concurrently or in any other sequence to the
loss.
ELECTRONIC DATA means data, facts, concepts and information converted to a form useable for communications, interpretation or
processing by electronic and electromechanical data processing or electronically controlled equipment and includes programmes, and
software and other coded instructions for the processing and manipulation of data or the direction and manipulation of such equipment.
COMPUTER VIRUS means a set of corrupting, harmful or otherwise unauthorised instructions or code including a set of maliciously
introduced unauthorised instructions or code, programmatic or otherwise, that propagate themselves through a computer system or network
of whatsoever nature. COMPUTER VIRUS includes but is not limited to ‘Trojan Horses’, ‘worms’ and ‘time or logic bombs’.
FAILURE OF AN EXTERNAL NETWORK means failure of some or all services provided by an internet or other service provider, or
telecommunications provider outside a radius of 150 metres from the insured location specified in the original policy.
3. Millennium exclusion
(i) The company will not pay for damage or consequential loss directly or indirectly caused by, consisting of, or arising from, the
failure of any computer, data processing equipment, media microchip, operating systems, microprocessors (computer chip),
integrated circuit or similar device, or any computer software, whether the property of the insured or not and whether occurring
before, during or after the year 2000 that results from the inability to:
a) correctly recognise any date as its true calendar date;
b) 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
c) capture, save, retain or correctly process any data as a result of the operation of any command which has been
programmed into any computer software, 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.
(ii) It is further understood that the company will not pay for the repair or modification of any part of an electronic data
processing system or its related equipment, to correct deficiencies or features of logic or operation.
(iii) It is further understood that the company will not pay for the damage or consequential loss arising from the failure,
inadequacy or malfunction of any advise, consultation, design, evaluation, inspection, installation, maintenance,
repair or supervision done by the insured or for the insured or by or for others to determine, rectify or test, any potential or actual
failure, malfunction or inadequacy described in (i) above.
General Terms, Exceptions, Conditions and Provisions Page 1 of 6
1
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
GENERAL TERMS, EXCEPTIONS,
CONDITIONS AND PROVISIONS
4.
Such damage or consequential loss described in (i), (ii) or (iii) above, is excluded regardless of any other cause that contributed
concurrently or in any other sequence. This endorsement shall not exclude subsequent damage 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, tornado, hurricane, cyclone, riot, strike, civil commotion, vandalism, malicious mischief,
earthquake, volcano, tsunami, freeze or weight or snow.
Asbestos exclusion
Notwithstanding any provision of this policy including any exclusion, exception or extension or other provision which would otherwise
override a general exception, this policy does not cover any legal liability, loss, damage, cost or expense whatsoever or any consequential
loss directly or indirectly, actually or allegedly caused by, arising out of, resulting from, in consequence of, in any way involving, or to the
extent contributed to by, the hazardous nature of asbestos in whatever form or quantity.
5.
6.
Silica
Notwithstanding any provision of this policy including any exclusion, exception or extension or other provision which would otherwise
override a general exception, this policy does not cover any legal liability, loss, damage, cost or expense whatsoever or any
consequential loss directly or indirectly, actually or allegedly caused by or contributed to, in whole or in part, by or arising out of the
presence, ingestion, inhalation or absorption of or exposure to silica products, silica fibres, silica dust or silica in any form, or to any obligation
of the insured to indemnify any party because of Bodily Injury or Property Damage arising out of the presence, ingestion, inhalation or absorption of or
exposure to silica products, silica fibres, silica dust or silica in any form.
Nuclear exclusion
This policy does not cover any legal liability, loss, damage, cost or expense whatsoever or any consequential loss directly or indirectly
caused by or contributed to by or arising from:
(i)
ionising, radiations or contamination by radio-activity from any nuclear fuel or from any nuclear waste from the combustion or use
of nuclear fuel;
(ii)
nuclear material, nuclear fission or fusion, nuclear radiation;
(iii)
nuclear explosives or any nuclear weapon;
(iv) 7.
nuclear waste in whatever form; regardless of any other cause or event contributing concurrently or in any other sequence to the loss.
For the purpose of this exception only, combustion shall include any self-sustaining process of nuclear fission.
Pollution & Contamination Exclusion
This policy does not cover
A
Material Damage (applicable to sections 1, 2, 3, 5 and 8)
Loss or destruction or damage caused by pollution or contamination but this shall not exclude destruction of or damage to the
Property Insured, not otherwise excluded, caused by:
(a) pollution or contamination which itself results from a Defined Peril
(b) a Defined Peril which itself results from pollution or contamination
B
Consequential Loss (applicable to sections 2 and 4)
Loss resulting from pollution or contamination but this shall not exclude loss resulting from destruction of or damage to property used
by the Insured at the Premises for the purpose of the Business, not otherwise excluded, caused by
(a) pollution or contamination which itself results from a Defined Peril
(b) a Defined Peril which itself results from pollution or contamination
The words “Defined Peril” shall mean fire, lightning, explosion, aircraft or other aerial devices or articles dropped therefrom, riot,
civil commotion, strikers, locked-out workers, persons taking part in labour disturbances, earthquake, storm, flood, bursting,
overflowing, discharging or leaking water tanks, apparatus or pipes, sprinkler leakage or impact by any road vehicle or animal and not otherwise excluded.
General terms and conditions (Subject to the provisions of Section 55 of the Short-term Insurance Act No. 53 of 1998 as amended)
1.
Misrepresentation, misdescription and non-disclosure
Misrepresentation, misdescription or non-disclosure which is likely to materially affect the assessment of the risk shall at the company’s
sole discretion render voidable the entire policy of the particular item, section or sub-section of the policy, affected by such
misrepresentation or non-disclosure.
2.
Alterations
The company shall have the option to cancel the policy (including retrospective cancellation) as a whole or the relevant section of the policy
or the sections of the policy relating to the relevant property insured, from the date of the alteration or breach referred to hereunder if:
a) b) 3.
there is alteration after the commencement of the insurance;
(i) whereby the interest of the insured in any of the property insured ceases unless such alteration has been agreed to by the
company;
(ii) whereby the risk of accident, loss or damage is increased unless such alteration has been agreed to by the company;
the insured breaches any warranty, condition term or other provision.
Other Insurance
If, at the time of any event giving rise to a claim under this policy, an insurance exists with any other insurers covering the insured against the
defined events, the company shall be liable to make good only a rateable proportion of the amount payable by or to the insured in respect of
such event whether the insured is paid under such other insurance or not. If any such other insurance is subject to any condition of average,
this policy, if not already subject to any condition of average, shall be subject to average in like manner.
General Terms, Exceptions, Conditions and Provisions Page 2 of 6
2
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
GENERAL TERMS, EXCEPTIONS,
CONDITIONS AND PROVISIONS
4. (A)
Cancellation
This policy or any section may be cancelled at any time by the company giving 30 days’ notice in writing (or such other period as
may be mutually agreed) or by the insured giving immediate notice. On cancellation by the insured, the company shall be entitled
to retain the company’s customary short period or minimum premium for the period the policy or section has been in force. On
cancellation by the company the insured shall be entitled to claim a pro-rata proportion of the premium for the remainder of the
period of insurance from the date of cancellation, subject to general condition 5.
(B) Continuation of cover (where premium is payable by bank debit order or by transmission account)
The premium is due within a 15 day period of grace after due date, being the date on which the Policy incepts in terms of the
policy or as reflected in this policy and, if it is not received by the company by the abovementioned date, this insurance shall be
deemed to have been cancelled at midnight on the last day of the preceding period of insurance unless the insured can show
that failure to make payment was an error on the part of his bank or other paying agent, save that where this is a monthly policy, the
payment in respect of the first month must be made on due date, namely the date on which the policy incepts failing which the policy
is cancelled immediately and on every subsequent month, the monthly premium must be paid within the 15 day period of grace after
due date. If the premium is not received by the company by the abovementioned date, this insurance will have deemed to have been
cancelled at midnight on the last day of the preceding day of insurance, unless the insured can show that failure to make payment
was an error on the part of his bank or other paying agent.
Due date will be the first day of every calendar month where premium is payable monthly, or the first day of
5.
a)
each third
b) each sixth or
c) each twelfth calendar month following inception where premium is payable quarterly, half-yearly or annually save where the due date is differently defined or reflected in this policy.
Adjustment of premium
If the premium for any section of this policy has been calculated on any estimated figures, the insured shall, after the expiry of each
period of insurance, furnish the company with such information as the company may require for the purpose of recalculation of the premium
for such period. The insured shall at all times keep adequate records of the particulars relative to the declaration required and shall make
such records available to the company at the intervals provided for or on request. Any difference shall be paid by or to the insured as the
case may be.
6. Prevention of loss
7.
Claims
The insured shall take all reasonable steps and precautions to prevent accidents or losses.
a)
On the happening of any event which may result in a claim under this policy the insured shall, at their own expense
(i) give notice thereof to the company as soon as reasonably possible and provide particulars of any other insurance covering
such events as are hereby insured;
(ii) as soon as practicable after the event submit to the company full details in writing of any claim;
(iii)
give the company such proof, information and sworn declarations as the company may require and forward to the company
immediately any notice of claim or any communications, writ, summons or other legal process issued or commenced against
the insured in connection with the event giving rise to the claim.
This requirement shall be deemed to have been complied with if the information required in terms thereof is given within
the time required to a loss adjuster appointed by the company.
(iv) as soon as practicable after the event inform the police of any claim involving a crime or (if required by the company) loss
of property and take all practical steps to discover the guilty party and to recover the stolen or lost property.
(v) co-operate with the company or their nominees in minimising the loss or damage.
b)
Save where a different period is provided under the business interruption, fidelity, or group personal accident section or
the personal accident (assault) extension under the money section, if applicable no claim shall be payable after the expiry of 24 months
or such further time as the company may allow from the happening of any event unless the claim is the subject of pending
legal action or is a claim in respect of the insured’s legal liability to a third party.
c)
Where the company has made any decision as to the repudiation of any claim under this policy or section thereof or as regards
the quantum of a claim which is in dispute, the insured may within a period of not less than 90 days after the date of the relevant
decision make representation to the company in respect of such decision. The 90 days referred to will not be included in any
calculation of the time barring periods contained in this policy for the institution of legal action. No claim shall be payable unless
the insured claims payment by serving legal process on the company within 12 months of the rejection of the claim in writing and
pursues such proceedings to finality. The calculation of the twelve months shall exclude the 90 day period referred to above.
d)
No claim
A claim shall not be payable if conditions (a) (b), (c) have not been complied with in every respect and in the event of noncompliance, any payment on account already made shall be repaid to the company without delay.
e)
8. Company’s rights after an event
a)
If, after the payment of a claim in terms of the policy stolen or lost property which was the subject matter of the claim, or any
part thereof is located, the insured shall render all assistance in the identification and physical recovery of such property if
called upon to do so by the company, provided that the insured’s reasonable expenses in rendering such assistance shall be
reimbursed by the company. Should the insured fail to render assistance in terms of this condition when called upon to do so,
the insured shall immediately become liable to repay to the company all amounts paid in respect of the claim.
On the happening of any event in respect of which a claim is or may be made under this policy, the company and every person
authorised by them may, without thereby incurring any liability and without diminishing the right of the company to rely upon any
conditions of this policy.
(i)
take, enter or keep possession of any building or premises and/or damaged property where loss or damage has occurred
and deal with it in any reasonable manner. This condition shall be evidence of the leave and licence of the insured to the
company to do so. The insured shall not be entitled to abandon any property to the company whether taken possession of by the company or not.
General Terms, Exceptions, Conditions and Provisions Page 3 of 6
3
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
GENERAL TERMS, EXCEPTIONS,
CONDITIONS AND PROVISIONS
(ii) b)
c) 9.
take over and conduct in the name of the insured the defence or settlement of any claim and prosecute in the name of the
insured for their own benefit any claim for indemnity or damages or otherwise and shall have full discretion in the
conduct of any proceedings and in the settlement of any claim. No admission, statement, offer, promise, payment or indemnity
shall be made by the insured without the written consent of the company (which consent shall not unreasonably be withheld).
The insured shall, at the expense of the company, do and permit to be done all such things as may be necessary or reasonably
required by the company for the purpose of enforcing any rights to which the company shall be, or would become, subrogated
upon indemnification of the insured whether such things shall be required before or after such indemnification.
In respect of any section of this policy under which an indemnity is provided for liability to third parties, the company may, upon
the happening of any event, pay to the insured the limit of indemnity provided in respect of such event or any lesser sum for which
the claim or claims arising from such event can be settled and the company shall thereafter not be under further liability
in respect of such event, except for the payment of costs and expenses for which provision is made and which relates to matters prior to the
date of payment.
Fraud
a)
The insured must act with good faith in respect of all matters relating to this policy and claims in terms hereof. Without limitation,
the insured must not and must ensure that any Insured Person or anyone acting on behalf of either or both of them does not:
(i) (ii) submit a claim, or any information relating to a claim, that is in any way fraudulent or dishonest; or
for any reason, whether fraudulently or otherwise, exaggerate the amount of a claim or any information relating to a claim; or
(iii) use any fraudulent or dishonest means to obtain a benefit under this policy; or
(iv)
submit a claim for any event caused by the intentional act or with the connivance of the insured or any Insured Person.
b)
If any of the circumstances in (a) exist, then the company may in its sole discretion (without prejudice to any of its rights in terms
of this agreement or the law):
(i)
(ii) refuse to pay the claim or any part of it; and / or
cancel the policy immediately and keep all premiums paid and demand payment of all outstanding premiums (whether or not
they are due for payment); and / or
(iii) institute legal proceedings against the insured for any damages that the company may have suffered; and / or
(iv) give any credit bureau or risk management information provider or any other insurer full details of the alleged circumstance.
c) If any of the circumstances in (a) exist under one section of the policy, then any claim under any other section of the policy shall
be subject to forfeiture at the instance of the company, whether a prior claim, current claim or future claim.
10. Reinstatement of cover after loss (not applicable to stock on a declaration basis nor to any section where it is stated to be not applicable)
In consideration of sums insured not being reduced where appropriate by the amount of any loss, the insured shall pay additional premium
calculated by the company in its sole discretion on the amount of the loss from the date thereof or from the date of reinstatement or
replacement (whichever is the later) to expiry of the period of insurance.
11. Breach of conditions
11.1 Compliance by the insured with the terms, conditions and provisions of this policy are conditions precedent to the company’s
liability under the policy and the company shall have no liability to the insured in respect of any claim where the insured has
breached any of the terms, conditions and provisions of this policy.
Alternatively,
11.2 Any breach of the terms, conditions and provisions of this policy or sections thereof by the insured shall entitle the company to
avoid that relevant section The terms, conditions and provisions of this policy and sections thereof shall, save with regard to
fraud as stated in paragraph 9 above, apply individually to each of the sections insured, and not collectively to them so that any breach
shall render voidable the relevant section only in respect of the risk to which the relevant breach applies.
12.
No rights to other persons
Unless otherwise provided, nothing in this policy shall give any rights to any person other than the insured. Any extension providing
indemnity to any person other than the insured shall not give any rights of claim to such person. The intention is that the insured shall claim
on behalf of such person. The receipt of the insured shall in every case be a full discharge to the company .
13. Collective insurances
If this insurance is a collective insurance then the following amendment is made to general condition 7(a) (iii) above.
“give the leading insurer on behalf of the insurers such proofs, information and sworn declaration as the insurers may require and forward
to the leading insurer immediately any notice of claim or any communication, writ, summons or other legal process issued or commenced
against the insured in connection with the event giving rise to the claim.”
And General condition 8 is substituted by the following
“8.
Company’s rights after an event
a)
On the happening of any event in respect of which a claim is or may be made under this policy the leading insurer and every
person authorised by them may, without thereby incurring any liability and without diminishing the right of the insurers to rely
upon any conditions of this policy,
(i)
take, enter or keep possession of any damaged property and deal with it in any reasonable manner. This condition shall
be evidence of the leave and licence of the insured to the lead insurer on behalf of all insurers to do so. The insured
shall not be entitled to abandon any property to the insurers whether taken possession of by the leading insurer or not.
(ii)
take over and conduct in the name of the insured the defence or settlement of any claim and prosecute in the name of
the insured for their own benefit any claim for indemnity or damages or otherwise and shall have full discretion in the
conduct of any proceedings and in the settlement of any claim. No admission, statement, offer, promise, payment or
indemnity shall be made by the insured without the written consent of the leading insurer.
General Terms, Exceptions, Conditions and Provisions Page 4 of 6
4
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
GENERAL TERMS, EXCEPTIONS,
CONDITIONS AND PROVISIONS
b)
The insured shall, at the expense of the insurers, do and permit to be done all such things as may be necessary or reasonably
required by the insurers for the purpose of enforcing any rights to which the insurers shall be, or would become, subrogated
upon indemnification of the insured whether such things shall be required before of after such indemnification.
c) In respect of any section of this policy under which an indemnity is provided for liability to third parties, the insurers may, in
the case of any event, pay to the insured the limit of indemnity provided in respect of such event or any lesser sum for
which the claim or claims arising from such event can be settled and the insurers shall thereafter not be under further liability in
respect of such event.”
14. d)
The leading insurer shall be entitled to act on behalf of the other insurers
Jurisdiction
his policy is subject to the laws of the Republic of South Africa whose courts shall have sole jurisdiction to the exclusion of the courts
T
of any other country. Where payment is to be made to or by the company it shall be made in the currency of the Republic of South Africa
unless otherwise allowed by the company.
15.
Recoveries
Should the insured incur any liability under this policy which exceeds the limit of indemnity payable hereunder, the insured shall be
entitled to all recoveries (except from suretyship, insurance, reinsurance, security or indemnity taken or effected by the company or for the
amount of any first amount payable) by whomsoever made on account of such loss until fully reimbursed, less the actual cost of effecting
the same, and any remainder shall be applied to the reimbursement of the company.
General provisions
(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 7 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 R25,000 in respect of sections 1 to 5, 7 to 11
and 13 and R1,000 in respect of all other sections 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/specification to each section against an item for additional claims preparation costs.
(B)
Additional claims preparation costs (if stated in the schedule to be included)
Notwithstanding the limits stated under General provisions (A) Claims preparation costs, this provision extends to cover additional claim
cost incurred up to the amount stated in the schedule.
(C)
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 at the discretion of the company.
(D)
F
irst amount payable
Except where provided for specifically in any section, the amount payable under this policy or any section or sub-section thereof for
each and every loss, damage or liability shall be reduced by the first amount payable reflected in the schedule which amount shall, is not
otherwise be insured.
(E)
Members
Wherever the word “director” is used it is deemed to include “member” if the insured is a close corporation.
(F)
Meaning of words
The sections of this policy and any endorsement and schedules such section shall be read separately as separate contracts and any word
or expression to which a specific meaning has been attached in any section thereof shall bear such meaning in that section. Each section
is to be read separately with the General Terms, Exceptions, Conditions and Provisions notwithstanding that the insured has cover under
any other section.
(G)
Premium payment
A premium is payable on or before the expiry of the 15 day grace period after inception date or renewal date, as the case may be and subject to the conditions as set out in 4(B) of these General Terms and conditions. To the extent that the company accepts premium tendered
after the 15 day period of grace, which it is not obliged to do, it may do so upon such terms as it in its sole discretion may determine.
(H)
Schedule sums insured blank
a)
If, in a schedule or specification 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
(iii) or anything similar
this means the defined event or circumstance in question shown in the schedule is not insured by the policy.
b)
If there is no schedule or specification accompanying any section, it will likewise mean that no cover is afforded under such
section.
(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 defence 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.
General Terms, Exceptions, Conditions and Provisions Page 5 of 6
5
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
GENERAL TERMS, EXCEPTIONS,
CONDITIONS AND PROVISIONS
(J) Alteration
No change in or modification of this section of the policy will be effective unless made by written endorsement signed by an authorised
representative of the company.
(K) Arbitration
If any difference shall arise as to the amount to be paid under this section (liability being otherwise admitted) such differences may be
referred to an arbitrator, by written agreement between the parties, such arbitrator to be appointed by the parties in accordance with the
statutory provisions in that regard for the time being in force. Where any difference is by this condition referred to arbitration the making of
an award shall be a condition precedent to any right of action against the company.
Average Extension: Day One Basis: Non-Adjustable - applicable to buildings and machinery only
The items of sections to which this extension applies and their declared values are shown in the schedule.
1. The insured having stated in writing the declared value incorporated in each item to which this extension 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 first paragraph of the Reinstatement Value Conditions at the level of costs applying at the inception of the period of insurance (ignoring
inflationary factors which may operate subsequently to the fixing of the Declared Value) together with, in so far as the insurance by the item
provides, due allowance for:
(i) the additional costs of reinstatement to comply with Public Authority Requirements (as stated herein)
(ii) architects and other professional fees (as stated herein)
(iii) costs of demolition and clearing and erection of hoardings (as stated herein).
2.
At the inception of each period of insurance, the insured shall notify the company of the declared value of the property by each
of the said item(s). In the absence of such declaration, the last amount declared by the insured shall be taken as the declared value for the
ensuing period of insurance.
3. Notwithstanding any general condition or endorsement to the contrary, the following wording applies to proviso 3 of the Reinstatement Value Conditions.
Each item insured under these conditions is declared to be separately subject to the following condition of average, namely:
If, at the time of damage, 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’s liability for any loss hereby insured shall be limited to
that proportion thereof which the declared value bears to such cost of reinstatement.
The following special Memorandum is added to the Reinstatement Value Conditions.
Special Memorandum
Where, by reason of any of these conditions, 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, except that the total amount payable shall be limited to a maximum of the percentage of the
declared value shown in the schedule.
4. In the event of loss, the liability of the company in respect of property to which this extension applies shall not exceed the sums insured
stated in the schedule.
5. If this section of the policy is subject to a capital additions clause, then such clause is deleted and replaced by the following:
The insurance hereby extends to cover alterations, additions and improvements (but not appreciation in value in excess of the sums insured) to property specified herein (other than stocks) for an amount not exceeding ten per cent of such sums insured, it being under
stood that the insured undertakes to advise the company each quarter of such alterations, additions and improvements and to pay the appropriate additional premium thereon.
72 hour occurrence
Notwithstanding anything to the contrary it is understood and agreed in respect of sections 1 to 11 that all loss and/or damage to property
occurring during anyone period of 72 consecutive hours during the currency of this Policy directly caused by hurricane, typhoon, windstorm, rainstorm,
hailstorm, tornado, earthquake, seaquake, tidal wave and/or volcanic eruption, shall be deemed to have been caused by a single event and therefore
to constitute any one loss for the purpose of this Policy if such peril is insured in terms of this Policy. Such event shall be deemed to commence from
the occurrence of the very first event of such cumulative events within the 72 consecutive hour period.
This Condition shall not be used in respect of any deductible provision in this Policy. An event, which continues uninterrupted for a period exceeding
72 hours shall not, however, be, regarded as more than one Occurrence for the purpose of the application of the Deductible.
Insurers shall not be liable, however, for any loss occurring before the effective date and time or commencing after the expiration date and this of
this Policy.
General Terms, Exceptions, Conditions and Provisions Page 6 of 6
6
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
FIRE - SECTION 1
Defined events
Damage to the whole or part of the property described in the schedule, owned by the insured or for which they are responsible, including
alterations by the insured as tenants to the buildings and structures, by
1. fire
2. lightning or thunderbolt
3. explosion
4. such additional perils as are stated in the schedule to be included.
Specific exceptions
1. This section does not cover earthquake (whether arising from mining operations or otherwise) unless added as an additional peril, volcanic
eruption or other convulsion of nature (other than subterranean fire).
Any damage happening during the existence of abnormal conditions (whether physical or otherwise) which are occasioned by or through
or in consequence, directly or indirectly, of any of the said occurrences shall be deemed to be damage which is not covered by this
insurance, except to the extent that the insured shall prove that such damage happened independently of the existence of such abnormal
conditions. In any action, suit or other proceedings where the company alleges that, by reason of this exception, any damage is not covered
by this insurance, the burden of proving the contrary shall be on the insured.
2.
Unless specifically included, this insurance does not cover
(i)
damage to property occasioned by its undergoing any heating or drying process
(ii)
damage to property which at the time thereof is insured by or would, but for the existence of this insurance, be insured by any
marine policy(ies), except in respect of any excess beyond the amount which would have been payable under the marine
policy(ies) had this insurance not been effected.
Specific condition
Average
If the property insured is, at the commencement of any damage to such property by any peril insured against, collectively of greater value than
the sum insured thereon, then 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, shall be separately subject to this condition.
Additional perils
It is understood and agreed that in respect of each additional perils extension included in this insurance
a)
all the exceptions and conditions applicable to this insurance shall apply as if they had been incorporated therein
b)
for the purpose thereof any damage insured shall be deemed to have been caused by fire.
Earthquake extension
Damage caused by earthquake but excluding damage to property in the underground workings of any mine.
Special perils extension
Damage caused by
1.
storm, wind, water, hail or snow excluding damage to property
a)
arising from its undergoing any process necessarily involving the use or application of water
b)
caused by tidal wave originating from earthquake or volcanic eruption
c)
in the underground workings of any mine
d)
in the open (other than buildings structures and plant designed
Unless so described and specifically
insured as a separate item
to exist or operate in the open)
e)
in any structure not completely roofed
f)
being retaining walls
2.
aircraft and other aerial devices or articles dropped therefrom
3.
impact by animals, trees, aerials, satellite dishes or vehicles excluding damage to such animals, trees, aerials, satellite dishes or vehicles
This extension does not cover
or property in or on such vehicles.
4.
5.
wear and tear or gradual deterioration.
damage caused or aggravated by
a)
b)
c) leakage or discharge from any sprinkler or drencher system or other fire extinguishing installations or appliances in the buildings
insured hereby or in buildings containing property insured hereby
subsidence or landslip
the insured’s failure to take all reasonable precautions for the maintenance and safety of the property insured and for the
minimisation of any damage.
Fire Page 1 of 6 - Section 1
7
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
FIRE - SECTION 1
Leakage extension (if stated in the schedule to be included)
Damage caused by discharge or leakage from any sprinkler, drencher system or the extinguishing installation/appliance.
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 herein before
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 the 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 (if stated in the schedule to be included)
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 as 1 per cent of the sum insured on the
property or R500 whichever is the greater
This extension does not cover
1.
2.
damage to drains, water courses, boundary walls, garden words, retaining walls, gates, posts or fences unless specifically insured
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
3. 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
2.
moveable 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.
3.
immovable property owned or occupied by the insured occasioned by or through or in consequence of
(i)
(ii)
the removal or partial removal or any attempt thereat of
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)
b) c) damage related to or caused by fire or explosion
consequential or indirect damage of any kind or description whatsoever, other than loss of rent if specifically insured
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.
Fire Page 2 of 6 - Section 1
8
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
FIRE - SECTION 1
Riot and strike extension (if stated in the schedule to be included)
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)
(ii)
civil commotion, labour disturbances, riot, strike or lockout;
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)
loss or damage occurring in the Republic of South Africa and Namibia;
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;
e)
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), (d) or (e), loss or damage is not covered by this section, the burden
of proving the contrary shall rest on the insured.
Clauses and extensions
Rent clause (if insured under column 2)
The company will pay the amount of rent receivable, rent payable or rental value (as the case maybe) 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 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 R5 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)
b)
money and stamps to a limit of R5 000
documents, manuscripts, business books, plans, computer systems records and media, designs, patterns, model an 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 process
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 1 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.
Fire Page 3 of 6 - Section 1
9
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
FIRE - SECTION 1
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.
Mortgagee clause
The interest of any mortgagee in the insurance under this section shall not be prejudiced by any act or omission on the part of the mortgagor
without the mortgagee’s knowledge. The mortgagee 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)
2.
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
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
3. if the liability of the company under any item of this section apart from the 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
4.
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 “Transnet Cartage (Hazardous Premises) Indemnity” or other special agreements with Transnet
Administration regarding private sidings or similar agreements with other government bodies.
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 no
been incorporated herein, shall be made.
2. 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.
Fire Page 4 of 6 - Section 1
10
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
FIRE - SECTION 1
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 conditions apply shall be
separately subject to this provision.
4. 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
the insured are unable or unwilling to replace or reinstate the property on the same or another site.
b) 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
2. 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 Republic of South Africa, Namibia, Botswana,
Lesotho, Swaziland, Zimbabwe 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 that
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 annually (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.
2. Any claim hereunder shall be settled on the basis of the market value immediately anterior to the damage.
3. 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.
4. 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.
5. The liability of the company shall not exceed the sum insured and premium shall not be receivable on values in excess thereof.
6. 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.
Fire Page 5 of 6 - Section 1
11
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
FIRE - SECTION 1
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 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.
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.
Fire Page 6 of 6 - Section 1
12
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
BUILDINGS COMBINED - SECTION 2
Defined Events
1. Damage by the perils described
a)
in sub-section A to the buildings including all outbuildings thereto (constructed of brick, stone, concrete or metal on metal framework
and roofed with slate, tiles, metal, concrete or asbestos unless otherwise stated in the schedule) and sporting and recreational
structures, landlord’s fixtures and fittings therein and thereon, walls (except dam walls), gates, posts, fences, and tarred or paved
roads, driveways, paths or parking areas.
in sub-section B to public supply connections b)
situate as stated in the schedule.
2. Loss of rent as provided in sub-section C.
3.
Legal liability as provided for in sub-section D
Sub-section A Property
1. Fire, lightning, thunderbolt, subterranean fire, explosion.
2. Storm, wind, water, hail or snow other than
a) that arising from its undergoing any process necessarily involving the use or application of water
b) wear and tear or gradual deterioration
c) loss or damage
(i) to retaining walls
(ii) caused or aggravated by
-
-
subsidence or landslip
the insured’s failure to take all reasonable precautions for the maintenance and safety of the property insured and for
the minimisation of any destruction or damage
3.
Earthquake
4. Aircraft and other aerial devices or articles dropped there from
5.
Impact by animals, trees, aerials, satellite dishes or vehicles excluding damage to such animals, trees, aerials, satellite dishes, vehicles
or property in or on such vehicles
6. Theft (or any attempt thereat) accompanied by forcible and violent entry into or exit from such building. If any building insured or contain
ing the insured property becomes unoccupied for 30 consecutive days, this item is suspended as regards the property affected unless
the insured before the occurrence of 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 rateable
proportion of any damage equal to 20% of the claim before deduction of any first amount payable
7. Accidental damage to sanitary ware, but the amount payable will be reduced by R250 for each and every such damage.
Specific conditions (not applicable to 7 above)
Average
If the property insured is, at the commencement of any damage to such property by any peril insured against, collectively of greater value than
the sum insured thereon, then 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, shall be separately subject to this condition.
Sub-section B Public supply connections
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.
Sub-section C Rent
Loss of rent as a result of the property insured being so damaged by any of the perils specified as to be rendered untenantable (including partially
untenantable) but only for the period necessary for reinstatement and for an amount not exceeding 25 per cent of the sum insured on the affected
property. The basis of calculation shall be the rent payable immediately preceding the damage or its equivalent in rental value.
Sub-section D Liability
Damages for which the insured shall become legally liable to pay consequent upon accidental death of or bodily injury to or illness of any person
(hereinafter termed injury) or accidental loss of or physical damage to tangible property (hereinafter termed damage) occurring during the period
of insurance in, on or about the property insured and arising from the insured’s ownership thereof.
The limit of indemnity
The amount payable inclusive of any legal costs recoverable from the insured by a claimant or any number of claimants and other costs and
expenses incurred with the company’s consent for any one event or series of events with one original cause or source shall not exceed the amount
of R1 000 000.
Buildings Combined - Page 1 of 6 - Section 2
13
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
BUILDINGS COMBINED - SECTION 2
Specific exceptions (applicable to sub-section D)
The company will not indemnify the insured under this sub-section in respect of
1. Injury or damage sustained by
a) any member of the same household as the insured
b) any person employed by the insured under a contract of service or apprenticeship and arising directly from and in the course of such
employment by the insured
c) any other person resulting from the ownership of or use by or on behalf of the insured of mechanically propelled vehicles (except
pedal cycles and lawnmowers)
2. damage to property
a) (i) belonging to the insured
(ii)
in the custody or control of the insured or any employee of the insured
b) caused by vibration or by the removal or weakening of or interference with support to any land, building or other structure
3.
Liability assumed by agreement unless liability would have attached to the insured notwithstanding such agreement
4. a)
liability in respect of injury, damage or loss of use of property directly or indirectly caused by seepage, pollution or contamination
provided always that this exception shall not apply where such seepage, pollution or contamination is caused by a sudden,
unintended and unforeseen occurrence
b)
the cost of removing, nullifying or cleaning up seeping, polluting or contaminating substances unless the seepage, pollution or
contamination is caused by a sudden, unintended and unforeseen occurrence
This exception shall not extend the policy to cover any liability which would not have been insured under this policy in the absence
of this exception
5.
fines, penalties, punitive, exemplary or vindictive damages
6. a)
damages in respect of judgements delivered or obtained in the first instance otherwise than by a court of competent jurisdiction within
the Republic of South Africa, Namibia, Botswana, Lesotho and Swaziland
b)
costs and expenses of litigation recovered by any claimant from the insured which are not incurred in and recoverable in the area
described in 6 (a) above.
Memoranda to sub-section D
1. Where more than one insured is named in the schedule, the company will indemnify each insured separately and not jointly and any
liability arising between such insured shall be treated as though separate policies had been issued to each, provided that the aggregate
liability of the company shall not exceed the limit of indemnity stated in the schedule.
2. Provided that the aggregate liability of the company is not increased beyond the limit of indemnity stated, the company will also indemnify
as though a separate policy had been issued to each
a) b)
in the event of the death of the insured, any personal representative of the insured in respect of liability incurred by the insured
any partner or director or member or employee of the insured (if the insured so requests) against any claim for which the insured
are entitled to indemnity under this insurance.
3. In respect of this sub-section only, General exception 1 is deleted and replaced by the following:
This sub-section does not cover injury, damage or liability directly or indirectly caused by, related to or in consequence of war, invasion,
act of foreign enemy, hostilities (whether war be declared or not), civil war, mutiny, insurrection, rebellion, revolution, military or usurped
power.
4. If, at the time of any event giving rise to a claim under this sub-section, indemnity is also provided under any other insurance, this
subsection shall not be drawn into contribution with such other insurance except in respect of any excess over and above the amount
payable by such other insurance.
Clauses and extensions
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 – Property.
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 R500 whichever is the greater.
Buildings Combined - Page 2 of 6 - Section 2
14
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
BUILDINGS COMBINED - SECTION 2
For the purposes hereof, any damage insured shall be deemed to have been caused by fire
provided that this extension does not cover
a)
damage to drains, water courses, boundary walls, garden walls, retaining walls, gates, posts or fences unless specifically insured
b)
damage caused by or attributable to
(i) faulty design or construction of, or the removal or weakening of support to, any building situated at the insured premises
(ii) workmen engaged in making any structural alterations, additions or repairs to any building situated at the insured premises
(iii)
excavation on or under land other than excavations in the course of mining operations
c)
consequential loss of any kind whatsoever except loss or 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 payments 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. s2.
incurred in removing debris except from the site of such property destroyed or damaged and the area immediately adjacent to such site.
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.
Mortgagee clause
The interest of any mortgagee in the insurance under this section shall not be prejudiced by any act or omission on the part of the mortgagor without the mortgagee’s knowledge. The mortgagee 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.
Buildings Combined - Page 3 of 6 - Section 2
15
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
BUILDINGS COMBINED - SECTION 2
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
2. the work of repairing or rebuilding must be commenced and carried out with reasonable dispatch 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
3. 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
4. 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 “Transnet Cartage (Hazardous Premises) Indemnity” or other special agreements with the
Transnet Administration 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
condition had not been incorporated herein shall be made
2. 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 excess 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
4. 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 Republic of South Africa, Namibia, Botswana, Lesotho, Swaziland, Zimbabwe and Malawi
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 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.
Buildings Combined - Page 4 of 6 - Section 2
16
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
BUILDINGS COMBINED - SECTION 2
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 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 wilful 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
2. 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
3. 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 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 (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;
2. 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;
provided that this extension does not cover:
a) loss or damage occurring in the Republic of South Africa and Namibia;
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;
e) 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), (d) or (e), loss or damage is not covered by this section, the burden of
providing the contrary shall rest on the Insured.
Buildings Combined - Page 5 of 6 - Section 2
17
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
BUILDINGS COMBINED - SECTION 2
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.
Leakage extension (if stated in the schedule to be included)
Damage caused by discharge or leakage from any sprinkler, drencher system or the extinguishing installation/appliance.
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 herein before
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 the 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.
Geyser extension
The company will indemnify the Insured against loss or damage resulting from the insured perils to electric geysers or if caused by bursting.
Liability is limited to the percentage indicated below and includes the cost of installation and / or repairs, subject to a First Amount Payable stated
below and applicable to each and every separate unit, and as otherwise stated in respect of Non-SABS approved geysers.
First Amounts Payable:
0 to 3 years old minimum Limit of liability
R 500.00 100%
3 to 4 years old 25% of replacement cost, minimum R 500.00 75%
5 to 6 years old 40% of replacement cost, minimum R 500.00 60%
7 to 8 years old 60% of replacement cost, minimum R 500.00 40%
9 years and older 75% of replacement cost, minimum R 500.00 25%
minimum R 2 500.00 100%
Non-SABS approved geysers
Geyser Extension – Flat Deductible ( if stated in the schedule to be included)
The company will indemnify the Insured against loss or damage resulting from the insured perils to electric geysers or if caused by bursting.
Liability is limited to the unit value indicated on the schedule and includes the cost of installation and / or repairs, subject to a First Amount Payable
as stated on the schedule and applicable to each and every separate unit.
Buildings Combined - Page 6 of 6 - Section 2
18
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
OFFICE CONTENTS - SECTION 3
Defined events
1. Loss or damage to the contents (other than documents as defined in sub-section C if insured thereunder and electronic data processing
equipment) including landlord’s fixtures and fittings the property of the insured or for which they are responsible and, unless otherwise
stated in the schedule, to the extent that the same is not otherwise insured, property owned by any partner or director or employee of
theinsured up to an amount of R2 500 per person while contained in the offices and/or consulting rooms situate as stated in the schedule
(hereinafter called the office premises) by any of the perils specified in sub-section A.
2. Loss of or damage to the whole or part of the property insured under item C and defined in sub-section C and the consequences thereof
insured under item D and as described in sub-section D.
3. Loss and/or expenditure described in sub-sections B and E.
Sub-section A Contents
1. Fire, lightning, thunderbolt, subterranean fire, explosion.
2. Storm, wind, water, hail or snow excluding loss of or damage to property arising from its undergoing any process necessarily involving the
use or application of water.
3. Earthquake but excluding loss of or damage to property in the underground workings of any mine.
4. Aircraft and other aerial devices or articles dropped there from.
5. Impact by animals, trees, aerials, satellite dishes or vehicles excluding damage to such animals, trees, aerials, satellite dishes or vehicles
or property in or on such vehicles.
6. Accidental breakage of mirror glass, plate glass tops to furniture or fixed glass forming part of any article of furniture.
Limitations clause
The company’s liability under this sub-section is restricted in respect of documents, manuscripts, business books, plans, designs, patterns, models
and moulds to the value of materials and sums expended in labour.
Specific condition
Average (not applicable to peril 6 above)
If the property insured is, at the commencement of any loss or damage to such property by any peril insured against, collectively of greater value
than the sum insured thereon, the insured shall be considered as being their own insurer for the difference and shall bear a rateable share of the
loss or damage accordingly. Each item of the schedule covering such property shall be separately subject to this condition.
Sub-section B Rent
Loss of rent actually incurred by the insured in consequence of the office premises or portion thereof being so damaged by any of the perils
specified in sub-section A as to be rendered uninhabitable, but only in respect of the period necessary for reinstatement. The indemnity under
this sub-section shall not exceed 25 per cent of the sum insured or value (whichever is the lower) of all contents of the office premises affected.
For the purpose of this sub-section, the term “office premises” shall be deemed to extend to any premises or portion thereof in the vicinity of the
office premises, damage to which prevents or limits access to the office premises.
Sub-section C Documents
Loss of or damage to documents normally kept at the office premises by any peril not specifically excluded.
Definition
The term documents shall mean films, tapes, addressograph plates, books, records, maps, plans, drawings, abstracts, deeds, wills, mortgages,
agreements, manuscripts, letters, certificates, documents and similar written, printed or otherwise inscribed papers and documents used by the
insured in the business and owned by them or for which they are responsible excluding money, current postage or revenue stamps, cancelled and
uncancelled coupons, securities, bearer bonds, cheques, drafts and any written order to pay a sum certain in money and any written evidence of
indebtedness or obligation and all property carried or held as samples or for sale or for delivery after sale and computer software data carrying media
unless otherwise stated in the schedule.
Limitations clause
The company’s liability under this sub-section is limited to all costs, charges and expenses incurred by the insured in replacing or restoring such
documents.
Specific exception (applicable to sub-section A)
This sub-section does not cover
a) property outside the Republic of South Africa, Namibia, Botswana, Lesotho, Swaziland, Zimbabwe and Malawi
b) designs, patterns, models or moulds (except to the extent that the said articles are insured in terms of sub-section A), stock in trade, samples, motor vehicles and accessories therefore, money, securities, stamps, jewellery or precious stones.
c) the first 10% of the indemnifiable amount or R1 000 whichever is the greater if the loss or damage is due to power surges or lightning strikes.
Office Contents - Page 1 of 4 - Section 3
19
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
OFFICE CONTENTS - SECTION 3
Specific exception (applicable to sub-section C)
This sub-section does not cover
a) loss or damage caused by
(i) electric or electronic or magnetic injury, disturbance or erasure of electronic or magnetic recordings except by lightning in
which case the lightning loss or indemnifiable amount will be reduced by the greater of 10% of such amount or R1 000
(ii) vermin or inherent defect or by processing, copying or other work upon the documents
(iii) the dishonesty of any principal, partner or director of the insured whether acting alone or in collusion with the others. This
exception shall not apply to any director who is also an employee of the insured and whom the insured have the right at all
times to govern, control and direct in the performance of his work in the service of the insured and in the course of the
business
b) gradual deterioration or wear and tear
c) costs involved in re-shooting films and videos and re-recording audio tapes.
Sub-section D Legal Liability Documents
Legal liability as a direct consequence of loss of or damage to documents as defined in sub-section C and in respect of which payment, reinstatement
or repair has been made or liability admitted by the company under sub-section C unless such payment reinstatement repair or liability has not been
made or admitted solely because the insured is required to bear the first portion of the loss.
Specific exception (applicable to sub-section D)
This sub-section does not cover liability assumed by the insured under any contract, undertaking or agreement where such liability would not have
attached to the insured in the absence of such contract, undertaking or agreement.
Sub-section E Increase in cost of working
Any additional expenditure not otherwise provided for in this section reasonably incurred by the insured for the purposes of maintaining the normal
operation of the business in consequence of loss or damage in respect of which payment, reinstatement or repair has been made or liability therefore
admitted by the company under sub-sections A or C.
The indemnity under this sub-section shall not exceed 25 per cent of the sum insured on all contents of the office premises affected.
Clauses and extensions
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 unauthorised person may be in possession of a duplicate of such key
provided that
(i) the company’s liability shall not exceed R 10 000 in respect of any one event
(ii) the company shall not be liable for the first R250 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 Republic of South Africa, Namibia,
Botswana, Lesotho, Swaziland, Zimbabwe and Malawi, 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 prorata from 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.
Office Contents - Page 2 of 4 - Section 3
20
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
OFFICE CONTENTS - SECTION 3
The company will not pay for any costs or expenses
1. 2. incurred in removing debris except from the site of such property destroyed or damaged and the area immediately adjacent to such site
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 Republic of South Africa, Namibia, Botswana,
Lesotho, Swaziland, Zimbabwe and Malawi 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 damage costs and expenses incurred by the insured in effecting such
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 rateable 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 wilful 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
2. 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
3. immoveable 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 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 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.
Office Contents - Page 3 of 4 - Section 3
21
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
OFFICE CONTENTS - SECTION 3
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, 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) loss or damage occurring in the Republic of South Africa and Namibia;
b) consequential or indirect loss or damage of any kind or description whatsoever, other than loss of rent is 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;
e) 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), (d) or (e), 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:
7. 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 pay
able.
Theft extension (if stated in the schedule to be included)
The following peril is added to the perils applicable to sub-section A contents
7. Theft any attempt thereat other than by any principal, partner, director or employee of the insured provided that
(i) the amount payable will be reduced by the first amount payable shown in the schedule for this extension
(ii) the maximum amount payable will not exceed the sum insured shown in the schedule for this extension less its first amount pay able.
Memorandum
In respect of sub-section D only, general exception 1 is deleted and replaced by the following:
This sub-section does not cover loss, damage, liability or expenditure directly or indirectly caused by, related to or in consequence of war, invasion,
act of foreign enemy, hostilities (whether war be declared or not), civil war, mutiny, insurrection, rebellion, revolution, military or usurped power.
Office Contents - Page 4 of 4 - Section 3
22
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
BUSINESS INTERRUPTION SECTION 4
Defined events
Loss following interruption of or interference with the business in consequence of damage occurring during the period of insurance at the premises
in respect of which payment has been made or liability admitted under:
(i)
the fire section of this policy
(ii) the buildings combined section of this policy
(iii) the office contents section of this policy
(iv) any other material damage insurance covering the interest of the insured
but only in respect of perils under the fire section hereof (hereinafter termed Damage).
Liability shall be deemed to have been admitted if such payment is precluded solely because the insured is required to bear the first
portion of the loss.
The company will indemnify the insured in accordance with the provisions of the specification hereinafter set out.
Specific conditions
1. The insurance under this section shall cease if the business is wound up or carried on by a liquidator or judicial manager or is perma
nently discontinued, except with the written agreement of the company.
2. On the happening of any Damage in consequence of which a claim may be made under this section, the insured shall, in addition to
complying with general conditions 6 and 7, with due diligence do and concur in doing and permit to be done all things which may be
reasonably practicable to minimise or check any interruption of or interference with the business or to avoid or diminish the loss, and in
the event of a claim being made under this section shall, not later than 30 days after the expiry of the indemnity period, or within such
further time as the company may in writing allow, at their own expense deliver to the company in writing a statement setting forth particu
lars of their claim together with details of all other insurance covering the loss or any part of it or consequential loss of any kind resulting
there from. No claim under this section shall be payable unless the terms of this specific condition have been complied with and, in the
event of non-compliance therewith in any respect, any payment on account of the claim already made shall be repaid to the company
forthwith.
Item 1 Gross profit (difference basis)
The insurance under this item is limited to loss of gross profit due to
a) reduction in turnover and
b)
increase in cost of working
and the amount payable as indemnity hereunder shall be
a) in respect of reduction in turnover the sum produced by applying the rate of gross profit to the amount by which the turnover during the
indemnity period shall, in consequence of the Damage, fall short of the standard turnover
b) in respect of increase in cost of working the additional expenditure necessarily and reasonably incurred for the sole purpose of avoid
ing or diminishing the reduction in turnover which, but for that expenditure, would have taken place during the indemnity period in conse
quence of the Damage, but not exceeding the sum produced by applying the rate of gross profit to the amount of the reduction thereby
avoided less any sum saved during the indemnity period in respect of such of the charges and expenses of the business payable out of gross
profit as may cease or be reduced in consequence of the Damage, provided that the amount payable shall be proportionately reduced if
the sum insured in respect of gross profit is less than the sum produced by applying the rate of gross profit to the annual turnover where
the maximum indemnity period is 12 months or less, or the appropriate multiple of the annual turnover where the maximum indemnity
period exceeds 12 months.
Item 1 Gross profit (additions basis)
The insurance under this item is limited to loss of gross profit due to
a) reduction in turnover and
b) increase in cost of working
and the amount payable as indemnity hereunder shall be
a) in respect of reduction in turnover the sum produced by applying the rate of gross profit to the amount by which the turnover during the indemnity period shall, in consequence of the Damage, fall short of the standard turnover
b) in respect of increase in cost of working the additional expenditure necessarily and reasonably incurred for the sole purpose of avoid
ing or diminishing the reduction in turnover which, but for that expenditure, would have taken place during the indemnity period in
consequence of the Damage, but not exceeding the sum produced by applying the rate of gross profit to the amount of the reduction
thereby avoided less any sum saved during the indemnity period in respect of such of the insured standing charges as may cease or be
reduced in consequence of the Damage, provided that the amount payable shall be proportionately reduced if the sum insured in respect
of gross profit is less than the sum produced by applying the rate of gross profit to the annual turnover where the maximum indemnity
period is 12 months or less, or the appropriate multiple of the annual turnover where the maximum indemnity period exceeds 12 months.
Memo
If any standing charges of the business are not insured under this section, then in computing the amount recoverable hereunder as increase in
cost of working, that proportion only of the additional expenditure shall be brought into account which the sum of the net profit and the insured
standing charges bears to the sum of the net profit and all the standing charges.
Business Interruption - Page 1 of 5 - Section 4
23
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
BUSINESS INTERRUPTION SECTION 4
Item 2
Gross rentals
The insurance under this item is limited to
a) loss of gross rentals and
b) increase in cost of working and the amount payable as indemnity hereunder shall be
a) in respect of loss of gross rentals the amount by which the gross rentals during the indemnity period shall in consequence of the
Damage fall short of the standard gross rentals
b)
in respect of increase in cost of working the additional expenditure necessarily and reasonably incurred for the sole purpose of avoiding
or diminishing the loss of gross rentals which, but for that expenditure, would have taken place during the indemnity period in consequence
of the Damage, but not exceeding the amount of the loss of gross rentals thereby avoided.
less the sum saved during the indemnity period in respect of such of the charges and expenses of the business payable out of gross
rentals as may cease or be reduced in consequence of the Damage, provided that the amount payable shall be proportionately reduced if
the sum insured in respect of gross rentals is less than the annual gross rentals where the maximum indemnity period is 12 months or
less, or the appropriate multiple of the annual gross rentals where the maximum indemnity period exceeds 12 months.
Item 3
Revenue
The insurance under this item is limited to
a) loss of revenue and
b) increase in cost of working and the amount payable as indemnity hereunder shall be
a) in respect of loss or revenue the amount by which the revenue during the indemnity period shall, in consequence of the Damage, fall short of the standard revenue
b) in respect of increase in cost of working the additional expenditure necessarily and reasonably incurred for the sole purpose of avoiding
or diminishing the loss of revenue which, but for that expenditure, would have taken pace during the indemnity period in consequence of
the Damage, but not exceeding the amount of loss of revenue thereby avoided
less any sum saved during the indemnity period in respect of such of the charges and expenses of the business payable out of revenue
as may cease or be reduced in consequence of the Damage, provided that the amount payable shall be proportionately reduced if the
sum insured in respect of revenue is less than the annual revenue where the maximum indemnity period is 12 months or less, or the
appropriate multiple of the annual revenue where the maximum indemnity period exceeds 12 months.
Item 4
Additional increase in cost of working
The insurance under this item is limited to reasonable additional expenditure (not recoverable under other items) incurred with the consent of the
company during the indemnity period in consequence of the Damage for the purpose of maintaining the normal operation of the business.
Item 5 Wages (Number of weeks basis)
The insurance under this item is limited to the loss incurred by the insured by the payment of wages for a period beginning with the occurrence
of the Damage and ending not later thereafter than the specified number of weeks. The amount payable as indemnity under this item will be the
actual amount which the insured shall pay as wages for such period to employees whose services cannot, in consequence of the Damage, be
utilised by the insured at all and an equitable part of the wages paid for such period to employees whose services cannot, in consequence of the
Damage, be utilised by the insured to the full provided that if the sum insured by this item is less than the aggregate amount of the wages that would
have been paid during the specified number of weeks immediately following the Damage had the Damage not occurred, the amount payable will be
proportionately reduced.
Item 6
Fines and penalties for breach of contract
The insurance under this item is limited to fines or penalties for breach of contract and the amount payable as indemnity hereunder shall be such
sum as the insured shall be legally liable to pay and shall pay in discharge of fines or penalties incurred solely in consequence of Damage for
non-completion or late completion of orders.
Definitions
Indemnity period The period beginning with the commencement of the Damage and ending not later than the number of months
thereafter stated in the schedule during which the results of the business shall be affected in consequence of
the Damage.
Turnover The money paid or payable to the insured for goods sold and delivered and for services rendered in the course
of the business at the premises.
Revenue
The money paid or payable to the insured for goods sold and for services rendered in the course of the
business at the premises.
Gross rentals The money paid or payable to the insured by tenants in respect of rental of the premises and for services
rendered
Gross profit
(difference basis)
The amount by which
1.
the sum of the turnover and the amount of the closing stock
2. Business Interruption - Page 2 of 5 - Section 4
shall exceed
the sum of the amount of the opening stock and the amount of the uninsured costs.
The amount of the opening and closing stocks shall be arrived at in accordance with the insured’s normal accountancy methods, due provision being made for depreciation.
24
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
BUSINESS INTERRUPTION SECTION 4
Uninsured costs As specified in the schedule (the words and expressions used shall have the meaning usually attached to
them in the books and accounts of the insured).
Gross profit (additions basis) The sum produced by adding to the net profit the amount of the insured standing charge or, if
there is no net profit, the amount of the insured standing charges less such proportion of any net trading loss
as the amount of the insured standing charges bears to all the standing charges of the business.
Net profit The net trading profit (exclusive of all capital receipts and accretions and all outlay properly chargeable to
capital) resulting from the business of the insured at the premises after due provision has been made for all
standing and other charges including depreciation, but before the deduction of any taxation chargeable
account of on profits.
Insured standing Charges As specified in the schedule (the words and expressions used shall have the meaning usually given to them in
the books of the insured)
Standard turnover
Standard revenue
Standard gross rentals The turnover (revenue) (gross rentals)
during that period in the twelve months
immediately before the date of the
Damage which corresponds with the
indemnity period
Annual turnover
To which such adjustments shall be made as may be necessary to provide for the trend of the business and for variations
or other circumstances affecting the business either before or
after the Damage or which would have affected the business
had the Damage not occurred, so that the figures thus adjusted
shall represent as nearly as may be reasonably practicable the
results which, but for the Damage, would have been obtained
during the relative period after the Damage.
Annual revenue
Annual gross rentals The turnover (revenue) (gross rentals)
during the twelve months immediately
before the date of the Damage
Rate of gross profit The rate of gross profit earned on the
turnover during the financial year
immediately before the date of the
Damage
Note: If the Damage occurs before the completion of the first
year’s trading of the business at the premises, the value of
bracketed terms shall be calculated by using values proportionate to the results obtained during the period between the commencement of the business and the date of damage.
Memo
If, during the indemnity period, goods shall be sold or services shall be rendered elsewhere than at the premises for the benefit of the business
either by the insured or by others on their behalf, the money paid or payable in respect of such sales or services shall be brought into account in
arriving at the turnover, revenue or gross rentals, during the indemnity period.
Extensions and clauses
Accountant’s clause
Any particulars or details contained in the insured’s books of account or other business books or documents which may be required by the company
under this section for the purpose of investigating or verifying any claim hereunder, may be produced and certified by the insured’s auditors or professional accountants, and their certificate shall be prima facie evidence of the particulars and details to which it relates.
Accumulated stocks clause
In adjusting any loss, account shall be taken and an equitable allowance made if any shortage in turnover or revenue due to the Damage is postponed by reason of the turnover or revenue being temporarily maintained from accumulated stocks.
Departmental clause
If the business is conducted in departments or branches, the independent trading results of which are ascertainable, the provisions under items
1 (gross profit), 2 (gross rentals) or 3 (revenue) relating to reduction in turnover/gross rentals/revenue and increase in cost of working, shall apply
separately to each department or branch affected by the Damage, except that if the sum insured by the relative item is less than the aggregate
of the (annual gross rentals) (annual revenue) sums produced by applying the rate of gross profit) for each department or branch, whether or not
affected by the Damage, (to the relative annual turnover thereof) (proportionately increased if the number of months referred to in the definition of
indemnity period exceeds twelve), the amount payable shall be proportionately reduced.
Deposit premium clause
In consideration of the premium by items 1,2 and 3 being provisional in that it is calculated on 75 per cent of the sum insured, the premium is subject
to adjustment on expiry of each period of insurance as follows
In the event of the gross profit/gross rentals/revenue earned (proportionately increased if the number of months referred to in the definition of
indemnity period exceeds twelve) during the financial year most nearly concurrent with any period of insurance being less or greater than 75 per
cent of the sum insured thereon, a pro rata return or additional premium not exceeding 331/3 per cent of the provisional premium paid for such period
of insurance will be made in respect of the difference.
In the event of a claim being made under this section, the amount paid or payable thereon shall be regarded as actually earned.
Business Interruption - Page 3 of 5 - Section 4
25
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
BUSINESS INTERRUPTION SECTION 4
Output (alternative basis) clause
At the option of the insured, the term output may be substituted for the term turnover and, for the purposes of this section, output shall mean the
sale or transfer value, as shown in the insured’s books, of goods manufactured or processed by the insured in the premises.
provided that
a) only the meaning of output or the meaning of turnover shall be operative in connection with any one event resulting in interruption
b) if the meaning of output be used
(i)
the accumulated stocks clause shall be inoperative
(ii)
the memo at the end of the definitions shall read
If, during the indemnity period, goods shall be manufactured or processed other than at the premises for the benefit of the business either by the
insured or by others on behalf of the insured, the sale or transfer of such goods shall be brought into account in arriving at the output during the
indemnity period.
Salvage sale clause
If the insured shall hold a salvage sale during the indemnity period clause (a) of item 1 (gross profit) shall, for the purposes of such claim, read
as follows
a) in respect of reduction in turnover, the sum produced by applying the rate of gross profit to the amount by which the turnover during the
indemnity period (less the turnover for the period of the salvage sale) shall, in consequence of the Damage, fall short of the standard
turnover, from which sum shall be deducted the gross profit actually earned during the period of the salvage sale.
Extensions to other premises
Loss as insured by this section resulting from interruption of or interference with the business in consequence of Damage (as within defined) at
the under noted situations or to property as under noted shall be deemed to be loss resulting from Damage to property used by the insured at
the premises.
a) Specified suppliers/sub-contractors (if stated in the schedule to be included)
The premises of the suppliers and sub-contractors specified in the schedule subject to stated limits
b) Unspecified suppliers (if stated in the schedule to be included)
the premises of any other of the insured’s suppliers, manufacturers or processors of components, goods or materials, but excluding the
premises of any public supply undertaking from which the insured obtains electricity, gas or water subject to the limit stated in the schedule
Notwithstanding a) and b) above, this extension excludes suppliers of suppliers.
c) Storage, transit and vehicle
property of the insured whilst stored or whilst in transit by air, road, rail or inland waterway or being motor vehicles of the insured else
where than at premises in the occupation of the insured
d)
Contract sites
any situation not in the occupation of the insured where the insured are carrying out a contrac
e) Prevention of access
property within a 10 km radius of the insured’s premises, destruction of or damage to which shall prevent or hinder the use of the premises
or access thereto, whether the premises or property of the insured therein shall be damaged or not
f) Prevention of access – extended cover (if stated in the schedule to be included)
property within a 10km radius of the premises, destruction of or damage to which shall prevent or hinder the use of the premises or acess
thereto, whether the premises or property of the insured therein shall be damaged or not
g) Additional premises
in the event of the insured occupying or having property at any newly added premises for the purpose of the business during the currency
of this section, such newly added premises shall be deemed to be included in those specified here subject to notification to the company
as soon as reasonably practicable and to adjustment of the premium if necessary
h) Customers (if stated in the schedule to be included)
the premises of the customers specified in the schedule subject to stated limits, however this extension excludes customers of customers
i) Public utilities – insured perils only (if stated in the schedule to be included)
Property at electricity generating stations, sub-stations or transmission networks, gas-works including the related gas distribution network,
water purification plants, pumping stations, aqueducts and pipelines of an authority empowered by law to supply water, gas or electricity
for consumption by the public and which results in an interruption of water, gas or electricity to the premises of the insured.
t
j) Public telecommunications – insured perils only (if stated in the schedule to be included)
(i) property at the premises of any public authority which is empowered by law to supply a telecommunications facility to the
insured
(ii) the transmission facilities network of the public authority mentioned in (i).
Business Interruption - Page 4 of 5 - Section 4
26
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
BUSINESS INTERRUPTION SECTION 4
k) Public telecommunications – extended cover (if stated in the schedule to be included)
Loss as insured resulting from interruption of or interference with the business in consequence of the failure of the public
telecommunication facilities to the premises of the insured shall be deemed to have resulted from Damage (as within defined) provided
this extension does not cover loss resulting from damage directly or indirectly caused by:
(i) drought
(ii) a fault on any part of the premises belonging to the insured
(iii) a decision by any authority to legally withhold the telecommunication facility from the insured unless such decision is directly attributable
to Damage to property of such authority
(iv) any event described in general exception 1 and 2 but cover provided under the Malicious damage extension in the underlying policy is not
excluded.
If the failure of the facility is due to its mechanical or electrical or electronic breakdown, there shall be no liability under this extension
unless the interruption or interference with the business of the insured extends beyond 24 hours.
Public utilities – extended cover (if stated in the schedule to be included)
Loss as insured resulting from interruption of or interference with the business in consequence of total or partial failure of the public supply of
water, gas or electricity to the premises of the insured shall be deemed to have resulted from Damage (as within defined) provided that this section
does not cover loss resulting from damage directly or indirectly caused by –
(i) drought
(ii) pollution of water
(iii) shortage of fuel or water
(iv) a fault on any part of the installation belonging to the premises
(v) the exercise of an authority empowered by law to supply water, gas or electricity of its power to withhold or restrict supply unless such
withholding or restriction is directly attributable to Damage to property of such authority
(vi) any event described in General exception 1 and 2 but cover provided by the Malicious Damage extension in the underlying material
damage section of this policy is not excluded.
In respect of interruption of or interference with the business arising from mechanical or electrical or electronic breakdown, there shall be
no liability under this extension for interruption of or interference with the business unless such interruption or interference extends
beyond 24 hours from commencement thereof.
The geographical limits of
(b), (c), (d), (e), (f), (h), (i) and (j) of the extensions to other premises and the extended covers for public telecommunications and public utilities
are confined to the Republic of South Africa, Namibia, Botswana, Lesotho, Swaziland, Zimbabwe and Malawi.
(g) of the extensions to other premises is confined to the Republic of South Africa and Namibia.
Accidental damage (if stated in the schedule to be included)
The following defined event is added:
“Loss following interruption or interference with the business in consequence of damage occurring during the period of insurance at the premises
in respect of which payment has been made or liability admitted under defined event (i) of the Accidental damage section of this policy (hereinafter
termed Damage) provided that:
a) the provisions under any item of this section that the payment will be reduced proportionately if the amount insured by the item is not
adequate, is deleted in respect of this defined event
b) the company shall not pay more than the sum insured stated in the schedule of the Accidental damage section for both this section and
the Accidental damage section combined.
Business Interruption - Page 5 of 5 - Section 4
27
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
ACCIDENTAL DAMAGE - SECTION 5
Defined events (i)
Accidental physical loss of or damage to the insured property at or about the premises not otherwise insured or for which insurance is available
and described (whether incorporated in this policy or not) in terms of any section (other than Business All Risks) listed in the index of this policy.
The amount payable for all loss or damage arising out of one original cause or source shall not exceed the sum stated
and
notwithstanding general condition 2, this section shall not be called into contribution for any defined event for which more specific insurance has
been arranged.
Specific exceptions
The company shall not be liable for
a) any peril excluded or circumstance precluded from any other insurance available from the company at inception hereof or for any excess
payable by the insured under such insurance, or for any reduction of amount payable under any claim due to the application of average
b) more than the individual value of any item forming part of a pair, set or collection without regard to any special value such item may have
as part of such pair, set or collection
c) detention, confiscation, attachment, destruction or requisition by any lawfully constituted authority or other judicial process
d) unexplained disappearance or shortage only revealed during or after an inventory or errors or omissions in receipt, payments or
accounting, or misfiling or misplacing of information
e) loss of or damage to insured property caused by
(i) any fraudulent scheme, trick, device or false pretence practiced on the insured (or any person having custody of the insured
property) or fraud or the dishonesty of any principal or agent of the insured
(ii) overheating, implosion, cracking, fracturing, weld failure, nipple leakage or other failure. This exception applies only to vessels,
pipes, tubes or similar apparatus
(iii) breakdown, electrical, electronic and/or mechanical derangement
(iv) altering, bleaching, cleaning, dyeing, manufacture, repair, restoring, servicing, renovating, testing or any other work thereon
(v) fault or defect in its design, formula, specification, drawing, plan, materials, workmanship or professional advice, normal
maintenance, gradual deterioration, depreciation, dampness, corrosion, rust, oxidation or other chemical action or reaction, frost,
change in temperature, expansion or humidity, fermentation or germination, dryness, wet or dry rot, shrinkage, evaporation, loss of weight, contamination, pollution, change in colour, flavour, texture or finish or its own wear and tear
(vi) denting, chipping, scratching or cracking not affecting the operation of the item
(vii) termites, moths, insects, vermin, inherent vice, fumes, flaws, latent defect, mould, fluctuations in atmospheric or climatic conditIons
the action of light
f) settlement or bedding down, ground heave or cracking of structures or the removal or weakening of support to any insured property
g) (i) loss of or damage to chemicals, oils, liquids, fluids, gases or fumes due to leakage or discharge from its container
(ii) loss of damage resulting from leakage or discharge of chemicals, oils, fluids, gases or fumes
h) failure of and/or the deliberate withholding and/or lack of supplies of water, steam, gas, electricity, fuel or refrigerant
i) collapse of plant and machinery, buildings and structures (other than shelving or storage platforms).
Definition
Insured property
Any tangible property belonging to the insured or held in trust or on commission for which they are responsible other than
a) current coin (including Krugerrands and similar coins), bank and currency notes, travellers and other cheques, money and postal orders,
current unused postage, revenue and holiday pay stamps, credit card vouchers, unused MVA tokens, and other certificates, documents or instruments of a negotiable nature
b) furs, jewellery, bullion, precious and semi-precious metals and stones, curiosities, rare books and works of art
c) property in transit by air, inland waterway or sea
d) railway locomotives, rolling stock and other railway property, aircraft, watercraft, mechanically or electrically propelled vehicles, motor
cycles, mobile plant, caravans and trailers
e) standing or felled trees, crops, animals, land (including topsoil, backfill, drainage and culverts), driveways, pavements, roads, runways,
dams, reservoirs, canals, pipelines (external to the premises), tunnels, cables (external to the premises), cableways, bridges, docks,
jetties, wharves, piers, excavations, property below the ground or explosives
f) electronic data processing equipment and external data media (punch cards, tape discs and the like) and the information they contain
g) property in the course of construction, erection or dismantling including materials or supplies related thereto
h) property in the possession of customers under lease, rental, credit or suspensive sale agreements
i) glass, china, earthenware, marble and other fragile or brittle objects unless stated in the schedule to be insured.
Accidental Damage - Page 1 of 3 - Section 5
29
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
ACCIDENTAL DAMAGE - SECTION 5
Defined events (ii) (if stated in the schedule to be included)
Accidental physical loss of or damage to the insured property caused by discharge or leakage from tanks, pipes or apparatus of chemicals, oils,
liquids, fluids, gases or fumes (including loss of such chemicals, oils, liquids, fluids, gases or fumes) other than loss or damage resulting from wear
and tear or other gradually operating causes of the tanks, pipes or apparatus.
Clauses and extensions
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 labour 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
a) any costs incurred, due to the necessity to comply with building or other regulations of any public authority, in repair or reinstatement
following an insured event, provided that such costs do not include
(i) anything for which notice had been served on the insured prior to the insured event
(ii) anything connected with undamaged property or undamaged portions of property
(iii) rates, taxes, duties, development and other charges payable under the said regulations due to capital appreciation of the insured
property
b) fees for the examination of municipal or other plans
c) costs incurred in the necessary demolition, removal of debris (including undamaged contents) and the erection and maintenance of
hoardings during demolition and rebuilding
d) the professional fees of architects, quantity surveyors and other consultants and the sum insured on all insured property includes
e) charges levied by any authorised 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 the “Transnet Cartage (Hazardous Premises) Indemnity” or other special agreements with Transnet
Administration 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 co-tenant or of the owner of any premises of
which he is a tenant, provided that the company is notified as soon as he becomes aware of such act and he pays an additional premium resulting
from the company assuming any additional hazard.
Memoranda
1. Average (if stated in the 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 rateable proportion of the loss accordingly.
Each item, if more than one, shall be separately subject to this memorandum.
2. 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.
3. 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 site property of the same kind or type but not superior to nor more extensive than such insured
property when new, provided that
Accidental Damage - Page 2 of 3 - Section 5
30
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
ACCIDENTAL DAMAGE - SECTION 5
a) 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 for the company not being thereby increased) must be commenced and carried out with reasonable despatch
otherwise no payment beyond the amount that would have been payable if this memorandum had not been incorporated in this section shall be made
b) the company shall not be liable for any payment beyond the amount that would be 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
c) 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 rateable share of loss accordingly. Each item, if more than one, to which this memorandum applies shall be separately subject to this provision
d) 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
(ii) the insured are unable or unwilling to replace or reinstate the lost or damaged insured property on the same or another site.
4. 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 for 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.
Accidental Damage - Page 3 of 3 - Section 5
31
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
ELECTRONIC EQUIPMENT SECTION 6
Defined events
Sub-section 1: Property damage
Sudden and unforeseen physical damage to the Property Insured (described in the schedule) whilst at the premises or temporarily elsewhere for
the purpose of repair, servicing and/or maintenance and which results in the Property Insured being rendered incapable of carrying out its
intended function,
or
in transit including loading and unloading or whilst temporarily stored at any other premises,
or
whilst temporarily removed from that part of the building occupied by the insured at the insured premises described in the schedule to any other
building,
or
loss of the Property Insured as the result of theft
but excluding loss or damage directly or indirectly caused by or contributed to by:
1. wear and tear, abrasion or ageing of any part of the Property Insured resulting from ordinary use or operation or gradual deterioration but
not excluding consequential damage to other exchangeable parts;
2. internal damage to any electronic component forming part of the Property Insured where there is no evidence that the damage was
caused by external physical damage.
3. a Defined event for which or from any loss arising from which the supplier, manufacturer, repairer or contractor is responsible;
4. loss by theft –
4.1 unless such theft is accompanied by forcible and violent entry to a premises or that part of the premises occupied by the insured,
in which the Property Insured is contained. This does not apply in respect of laptops;
provided that a thief or thieves concealed on the Premises before close of business or where entry to the Premises is effected by
use of a skeleton key and the Insured is able to establish to the satisfaction of the company that a skeleton key was used shall be
deemed to constitute forcible and violent entry;
4.2 in which any principal, partner, member, director or employee of the Insured is concerned as principal or accessory.
4.3 The company shall not indemnify the insured for the theft of the Property Insured from any vehicle where the property insured has been
a) left in the motor vehicle overnight unless the vehicle is housed in a securely locked building and entry to such vehicle or
building is accompanied by forcible and violent entry or exit
b) contained in a compartment of the motor vehicle and is visible to passers-by provided that
(a) and (b) above shall not apply to theft of the Property Insured where the transport vehicle
(i) has been hijacked
(ii)
or
has been involved in a road accident or sustains a breakdown and, due to circumstances beyond the control of the
vehicle crew/driver, the Property Insured is of necessity left unprotected.
5. the cost of alterations, additions, improvements and overhauls carried out at the time of repair;
6. cost which have been incurred had the Insured Event not occurred;
6.1
extra expenditure incurred in effecting temporary repairs.
Sub-section 2 – Reinstatement of data
Loss or damage to the Property Insured whilst at the Premises or whilst stored at external backup storage facilities or whilst in transit between
the Premises and such external storage facility by a sudden and unforeseen event not excluded in terms of sub-section 1 of this Policy, to the extent
that it is neither machine readable nor able to store Data but excluding:
1. costs arising from false programming, punching, labelling or inadvertent cancellation, deletion or discarding of Data Media or modification
or corruption of Data including, but not restricted to such events caused by computer viruses or similar events or loss of Data caused by
magnetic fields;
2. additional costs, such as purchasing of new licences, incurred because the Property Insured is safeguarded by copy protection and/or
access control software or similar procedures have been applied such as dongles or encryption.
3. Property Insured which has been altered or in any way improved following a Defined Event.
Sub-section 3 – Increased cost of working
If, following loss or damage to the Property Insured by Sub-section 1 of this section of the Policy, by a Defined Event for which the Insurer has
admitted liability under sub-section 1 of this Policy (hereinafter referred to as “Damage”).
or
is, as the result of the Insured being denied access to the Property Insured due to damage to property in the immediate vicinity of the Premises
by an event insured under sub-section 1 of this section of the Policy (hereinafter referred to as “Damage”);
the Business at the Insured Premises is interrupted or interfered with, the company will indemnify the Insured for an amount not exceeding the
sum insured or a period not exceeding the indemnity period less any Time excess or any other First Amount Payable, as reflected on the schedule.
Electronic Equipment - Page 1 of 6 - Section 6
33
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
ELECTRONIC EQUIPMENT - SECTION 6
Specific exceptions applicable to sub-section 1, 2 and 3
This policy does not cover loss or damage directly or indirectly caused by, related to or in consequence of –
1. a Defined Event occurring elsewhere than within the territorial limits;
2. consequential loss or damage of any description or delay (other than as specifically provided);
3. volcanic eruption, tidal wave and all resultant flooding or subsidence and landslip.
Specific condition
1. Insured’s obligations
The Insured shall take all reasonable steps to:
1.1 safeguard and maintain in efficient condition the Property Insured and to prevent losses;
1.2 observe any manufacturers’ or suppliers’ stipulations and recommendations concerning:
1.2.1 erection and installation and particularly as they relate to power supplies, equipotential bonding and air-conditioning;
1.2.2 operation, service and maintenance;
1.3 ensure that standard Data back-up procedures are complied with.
Clauses applicable to all sub-sections
1. Basis of indemnity
The indemnity under this section of the policy is on an occurrence basis. Occurrence, whenever referred to in this section shall mean an
occurrence or series of occurrences arising from one event or original cause.
It is understood and agreed that the monetary amounts as reflected in the sums insured/limits of liability stated in the Schedule shall be
applied to:
a) the indemnity or amounts payable in terms of this policy ;
and
b) Value Added Tax at the current rate as promulgated in legislation pertaining thereto.
Subject to such sums insured/limits of indemnity being adequate to embrace the amounts reflected under 1 and 2 above the
Company will, to the extent that the Insured is accountable to the South African tax authorities for Value Added Tax, include the
amount of such tax in the final settlement of any claim in terms of this Policy.
Provided always that the total amount payable by the Company in terms of this policy for any one Defined Event and Value Added
Tax related thereto shall not exceed the sum insured/limit of indemnity set against such Defined Event in the Specification.
In circumstances referred to herein under which the Insured is required to bear the first amount of any loss. “The Deductible”, such amount shall also be inclusive of Value Added Tax in like manner to the sums insured/limit of indemnity referred to above.
2. Territorial limits
The Republic of South Africa and Namibia, Botswana, Lesotho, Swaziland, Zimbabwe and Malawi.
Property insured
All electronic equipment, including the operating system software, as more fully described in the schedule and used in connection with the Business
but excluding:
1. parts and materials which, due to their specific function and/or composition, are prone to heavy wear and tear or periodic renewal (such as auxiliary materials and/or consumables), and working materials (such as development fluids, reagents, toner), coolant and
extinguishing medium, cassette ribbons, films and film/foil combinations, specially prepared paper, typeface carriers, raster screens,
pipettes and the like;
2. all types of tools such as drills, milling cutters, grippers and the like;
3. tubes, such as picture tubes, radio-frequency power tubes, X-ray tubes, laser and valve tubes, and intermediate image and/or
sound carriers such as selenium drums;
provided that if such excluded property is lost or damaged as the result of a defined event the Insurer will pay the resident value
thereof.
Extensions to sub-section 1
1. Riot and Strike (if stated in the schedule to be included)
Subject otherwise to the policy terms, limitations and First Amount Payable, Defined Event is extended to include loss or change directly
occasioned by or through or in consequence of:
1.1 1.2 civil commotion, labour disturbances, riot, strike or lockout;
the act of any lawfully established authority in controlling, preventing, suppressing or in any other way dealing with and occurrence
referred to in 1.1 above;
Electronic Equipment - Page 2 of 6 - Section 6
34
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
ELECTRONIC EQUIPMENT - SECTION 6
provided that this extension does not cover loss or damage:
1.3 occurring in the Republic of South Africa or Namibia;
1.4 resulting from total or partial cessation of work or the retarding or interruption or cessation of any process or operation;
1.5 occasioned by permanent or temporary dispossession resulting from confiscation, commandeering or requisition by any lawfully
constituted authority;
1.6 related to or caused by any occurrence referred to in general exception 1A(ii), 1A(iii)(a) and (b), 1A(iv), 1A(v) or 1A (vi) of this Policy
or the act of any lawfully established authority in controlling, suppressing or in any other way dealing with any such occurrence; and
provided further that this extension does not cover:
consequential or indirect loss or damage or any kind or description whatsoever;
1.7
If the company alleges that by reason of 1.3, 1.4, 1.5, 1.6 or 1.7 above loss or damage is not covered by this Policy the burden of
proving the contrary shall rest on the Insured.
2. Additional cost
The sum insured stated in the Specification includes:
2.1 any additional cost incurred solely by reason of the necessity to comply with regulations under or framed in pursuance of any act
of parliament or ordinance of any provincial, municipal or local authority or any other subordinate legislation relative to repair or
reinstatement provided that the amount recoverable under this extension shall not include:
2.1.1 costs incurred in respect of damage occurring before the granting of this extension or damage not insured by this section;
2.1.2 costs incurred in respect of any notice served upon the Insured prior to the happening of the damage;
2.1.3 costs incurred in respect of undamaged property or undamaged portions of the Property Insured;
2.1.4 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 aforementioned
regulations;
provided the work of repair or reinstatement, which may be carried out wholly or partially upon another site if the
aforementioned regulations so necessitate subject to the liability of the Insurer not being thereby increased, is commenced
and carried out with reasonable despatch;
2.2 fees for the examination of municipal or other plans incurred by the Insured as a result of damage to the Property Insured by a
Defined Event;
2.3 costs necessarily incurred by the Insured in respect of the demolition and removal of debris and in providing, erecting and
maintaining hoardings required during such demolition following damage to the Property Insured by an Insured Event;
2.4 alterations, additions and improvements, but not appreciation in value in excess of the sum insured, to the Property Insured for an
amount not exceeding twenty five percent of the sum insured thereon provided the Insured advises the company within the period
of insurance of such alterations, additions and improvements and pays any additional premium required;
2.5 provision for overtime, night work, work on public holidays and express or airfreight transportation provided the liability of the Insurer
shall be limited to fifty percent of the total cost of repair or reinstatement;
2.6 professional fees for estimates, plans specifications, tenders and supervision necessarily incurred in the reinstatement or
replacement of the Property Insured following damage by an Insured Event but in no case exceeding fifteen percent of the amount
payable in respect of such damage and provided the amount payable shall not include expenses incurred in connection with
preparation of the insured’s claim;
2.7 costs and expenses necessarily incurred by the Insured to protect the Property Insured against possible damage by a Defined
Event following damage to the Property Insured.
3. Temporary repairs
3.1 After notifying the company of the occurrence of an Insured Event the Insured may effect temporary repairs or replacements of a
minor nature provided they first obtain a detailed estimate or prepare a separate job card and retain this, together with any replaced
parts, for inspection by the company or their nominees;
3.2 Temporary repairs may be effected by the Insured in the interests of safety without the consent of the company and the cost of such
repairs shall be borne by the company provided that, if such temporary repairs aggravate or cause additional damage to the
Property Insured, any additional costs thereby incurred losses or other consequence arising there from shall be for the Insured’s
account
4. Suspensive sale/lease agreements
Provided the company is notified prior to the occurrence of a Defined event, it will note and protect the interest of the owner of any item
which is the subject of a suspensive sale or lease agreement.
5. Tenants
The Insured shall not be prejudiced by the act of any tenant in premises they own or in which they are co-tenants nor of the owner of the
premises of which they are tenants provided that the company is notified as soon as the Insured becomes aware of such act and the
Insured pays any additional premium resulting from the Insurer assuming any additional hazard.
Electronic Equipment - Page 3 of 6 - Section 6
35
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
ELECTRONIC EQUIPMENT - SECTION 6
6. Alterations and Misdescription
The Insured shall not be prejudiced by any alteration or misdescription or occupancy due to:
6.1 the transfer of processes or machinery;
6.2 the acquisition of additional premises;
6.3 structural alterations or repairs to buildings, plant or machinery;
provided that notice is given to the company as soon as practicable and the Insured pays any additional premium that may be
required.
Clauses and memoranda applicable
Sub-section 1: Property Damage
1.
Insured Value
The sum insured for each item of Property shall be equivalent to its Insured Value which shall mean:
1.1 in the event that the item is listed in a current price list, the valid price when new;
1.2 in the event that the item is no longer listed in current price lists, the list price from the last available price list when new adjusted
for any price alterations for similar items which may meanwhile have taken place;
1.3 in the event that no price list is available, the purchase or delivery price of the item when new adjusted for any price alterations which
may meanwhile have taken place;
1.4 in the event that the list, purchase or delivery price is not available, the total of all costs generally applied in the market to
manufacture the item, plus price margins where relevant, adjusted for any price alterations which may meanwhile have taken place,
plus provisions for delivery and other costs described in the extensions to this section provided that discounts and any price
concessions shall not influence the determination of the Insured Value.
2. Average
If on the commencement of the occurrence of a Defined Event the Insured Value of the Property Insured is collectively greater than the sum
insured stated in the Specification the Insured shall be considered their own insurer for the difference and shall bear a rateable proportion
of the loss. Each item of Property Insured, if more than one, shall be separately subject to this clause.
3.
Basis of Indemnity
3.1 Partial Loss
In the event that repair costs necessary to reinstate the Property Insured and the value of salvage material are less than the Insured
Value the basis of indemnification shall be the costs and expenses reasonably and necessarily incurred to restore the Property
Insured to its working condition immediately prior to the occurrence of the damage including the costs of dismantling, re-erection
and ordinary custom duties provided that:
3.1.1 the value of damaged parts which can be re-used will be deducted;
3.1.2 where the damage is restricted to a part or parts of an item the Insurer will not be liable for an amount greater than the cost of repairs
to the damaged part or parts allowed for within the sum insured;
3.1.3 if no repair is possible owing to the unavailability of parts or the obsolescence of the damaged item the company will pay the
estimated cost of repair had such parts been available but not more than the cost of repairing or replacing similar, available,
equipment or the sum insured stated in the Specification whichever is the lesser.
3.2 Total Loss
3.2.1 in the case where the property insured is totally lost or destroyed, the basis of indemnification shall be:
3.2.1.1 the company shall reimburse the costs required to purchase and install a new item of similar type and quality to
replace the original Insured Item; however indemnification paid shall not exceed the Sum Insured (new
replacement value)
- If the Insured Item subject to total loss is still available and is not more than seven years old, all costs necessary
to replace and erect an identical new item will be reimbursed.
- If the Insured Item subject to total loss has meanwhile become obsolete; all costs necessary to replace the lost
or damaged Insured Item with a follow-up model (similar type) or similar structure/configuration (of similar quality)
i.e. low, average, high capacity – will be reimbursed.
3.2.1.2 in the case of an item which is more than seven years old from date of manufacture the cost of replacement at
market value and the cost of removing the damaged item less the value of any salvage.
Sub-section 2: Reinstatement of data
The reinstatement of machine-readable information (hereinafter referred to as “Data”), caused by a defined event referred to in Sub-section 1 such
as master and transaction data stored in data files and databases, standard program data out of series production and data on customized user
programmes ready for use
and
storage media for data (hereinafter referred to as “Data Media”) on which Data has been stored and which can be exchanged by the Insured such
as removable magnetic discs, magnetic tapes and floppy discs
Electronic Equipment - Page 4 of 6 - Section 6
36
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
ELECTRONIC EQUIPMENT - SECTION 6
but excluding:
1. Data Media which cannot be exchanged by the Insured such as hard disks, semi-conductor memories and the like;
2. Data which is stored in the C.P.U.’s main memory only such as operating programmes;
3. input documents such as invoices, bills and the like and equipment printed output.
Basis of indemnity
The amount payable as indemnity shall be the reasonable and necessary costs actually incurred by the Insured for recapturing and/or restoring
the Data held on the Data Media to a level equivalent to but not more extensive than the Data held immediately prior to the occurrence of the
Defined Event and the cost of replacing lost or damaged Data Media but not exceeding the amount stated in the Specification provided that if the
Data has not been recaptured or restored within twelve months of the loss, the company will only indemnify the Insured for the cost of replacing
lost or damaged Data Media.
Sub-section 3: Increased cost of working
Basis of Indemnity
The amount payable as indemnity shall be the additional expenditure necessarily and reasonably incurred by the Insured for the sole purpose of
avoiding or diminishing the interruption of or interference with the Business which, but for such expenditure, would have taken place during the
Indemnity Period in consequence of the Damage less any sum saved during the Indemnity Period in respect of such charges and expenses of
the Business as may cease or be reduced in consequence of the Damage but not exceeding the amount stated in the Specification provided that
the company shall not be liable;
1. during any period of interruption or interference with the Business arising directly or indirectly as a consequence of overhauls, alterations,
additions or improvements being carried out following the occurrence of the Damage and the Indemnity Period shall be exclusive of the
time required for such work:
2. during any prolongation of the Indemnity Period attributable to obsolescence or the unwillingness of the Insured to replace or reinstate the
property lost, destroyed or damaged or failing to carry out replacement or reinstatement within a reasonable time.
3. during the period of the Time Deductible stated in the Specification.
Definitions
Indemnity period
The period commencing with the occurrence of the Damage and ending not later than the number of months thereafter stated in the Schedule during
which the results of the Business shall be affected in consequence of the Damage.
Time deductible
The period commencing with the occurrence of the Damage and ending not later than the number of hours thereafter stated in the Schedule during
which the results of the Business shall be affected in consequence of the Damage provided that the company shall not be liable to make any payment
hereunder if the Indemnity Period does not exceed the Time Deductible.
Clauses, conditions and extensions applicable to sub-section 3
1. Termination of Cover
The insurance under this Sub-section shall cease, unless the Insurer has given their written consent, if the Business is wound-up or carried
on by a liquidator or judicial manager or is permanently discontinued.
2. Due Diligence
2.1 On the happening of any Damage in consequence of which a claim is or may be made under this Sub-section the Insured shall, in
addition to complying with general conditions 7 and 8, with due diligence do and concur in doing and permit to be done all things
which may be reasonably practicable to minimize or check any interruption of or interference with the Business or to avoid or
diminish the loss and in the event of a claim being made under this Section shall, not later than thirty days after the expiry of the
Indemnity Period or within such further time as the company may in writing, allow and at their own expense deliver to the company,
in writing, a statement setting forth particulars of their claim together with details of any other insurances covering the Damage or
any part thereof or consequential loss of any kind resulting there from.
2.2 The insured shall, at their own expense, also produce and furnish to the company such books of account and other business books,
vouchers, invoices, balance sheets and other documents as may reasonably be required by the company for the purpose of
investigating or verifying the claim together with, if demanded, a declaration of the truth of the claim and of any matters connected
therewith.
2.3 No claim under this Sub-section shall be payable unless the terms of this sub-section have been complied with and, in the event
of non-compliance therewith in any respect, any payment on account of the claim already made shall be repaid to the Insurer
forthwith.
3. Auditors
The Insured’s auditors or professional accountants may certify from the Insured’s books of account or other business books any detail
required by the Insurer and their certificate shall be prima facie evidence of such detail.
4. Public Utilities – Electricity and Telecommunications (if stated in the schedule to be included)
Additional expenditure, as insured by this Sub-section, resulting from interruption or interference with the Business in consequence of total
or partial failure of the public supply of electricity or telecommunications to the Premises shall be deemed to have resulted from Damage
provided that this extension does not apply in respect of damage directly or indirectly caused by:
Electronic Equipment - Page 5 of 6 - Section 6
37
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
ELECTRONIC EQUIPMENT - SECTION 6
4.1 the deliberate act of the Insured or the exercise of an authority empowered by law to supply electricity or telecommunications of its
power to withhold or restrict supply unless such withholding or restriction is directly attributable to Damage to property of such
authority;
4.2 drought or shortage of fuel or water at the premises of the supply authority;
4.3 an event described in general exceptions 1 and 2 and specific exceptions 2 and 3 under this section;
4.4 Damage to property situated outside the territorial limits;
and provided further that the liability of the company shall only commence forty eight hours after and end not later than fourteen
days after the occurrence of the Damage.
Cyber exclusions
Property damage covered under this Section shall mean physical damage to the substance of property.
Physical damage to the substance of property shall not include damage to data or software, in particular any detrimental change in data, software
or computer programs that is caused by a deletion, a corruption or a deformation of the original structure.
Consequently the following are excluded from this Section:
(A) Loss of or damage to data or software, in particular any detrimental change in data, software or computer programs that is caused by a
deletion, a corruption or a deformation of the original structure, and any business interruption losses resulting from such loss or damage.
Notwithstanding this exclusion, loss of or damage to data or software, which is the direct consequence of insured physical damage to the
substance of property, shall be covered.
(B) Loss or damage resulting from an impairment in the function, availability, range of use or accessibility of data, software or computer
programs, and any business interruption losses resulting from such loss or damage.
General extensions
Incompatibility cover (if stated in the schedule to be included)
Notwithstanding anything contained to the contrary in the policy, the indemnity by sub-sections 1, 2 and 3 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;
replacement or upgrading of legal programs to achieve compatibility with the modified or altered electronic system;
(b) (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 1 or 2 of
this section of the policy;
the cover afforded hereunder shall be restricted to
(3) (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 sub-section 2 hereof;
(4) the indemnity by this extension shall, in respect of any one event, be limited in the aggregate of twenty percent (20%) of the
applicable total sum insured under sub-section 1 – The limit of indemnity and sub-section 2 hereof or R25 000, whichever is the
lesser.
Worldwide cover (if stated in the schedule to be included)
This section is extended to include worldwide cover in respect of laptop and notebook computers.
Electronic Equipment - Page 6 of 6 - Section 6
38
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
ACCOUNTS RECEIVABLE - SECTION 7
Defined events
Loss or damage as a result of accident or misfortune (hereinafter termed Damage) to the insured’s books of account or other business books or
records at the premises or at the residence of any director, partner or employee or the premises of any accountant of the insured, in consequence
whereof the insured are unable to trace or establish the outstanding debit balances in whole or part due to them
Provided that the liability of the company shall not exceed the sums insured stated in the schedule and that the basis of indemnity will be as set
out in the specification which forms part of this section.
If, because of imminent danger of their destruction, such books of account or other business books or records are removed to a place of safety, the
insurance hereunder shall apply if such goods are destroyed, damaged or lost as aforesaid during such removal or while so located or being returned
to the premises, provided the insured shall notify the company in writing of such removal within 30 days thereafter.
The company will also pay all reasonable collection costs and expenses incurred by the insured in excess of normal collection costs and expenses
made necessary because of such Damage.
Specific exceptions
The company will not pay for
a) loss resulting from loss or damage to the books of account or other business books or records caused by
(i) wear and tear or gradual deterioration or moths or vermin
(ii) detention, seizure or confiscation by any lawfully constituted authority
(iii) b) electrical or electronic or magnetic injury, disturbances or erasure unless the insured maintains the duplicate records referred
to in the Duplicate records clause of this section, in which case the insured will be responsible for the first R500 of each and
every loss;
loss caused by fraud or dishonesty of any principal, director, partner or employee of the insured.
Specification
The insurance under this section is limited to the loss sustained by the insured in respect of outstanding debit balances directly due to the Damage
and the amount payable shall not exceed
(i) the difference between
a) the outstanding debit balances
and
the total of the amounts received or traced in respect thereof
b) (ii) plus
the additional expenditure incurred in tracing and establishing customers’ debit balances after the Damage provided that, if the sum insured
under this item is less than the outstanding debit balances, the amount payable shall be proportionately reduced.
Definitions
Outstanding debit balances
The total declared in the statement last given under the provisions of the following memorandum 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 at the time of
the damage) to customers’ accounts in the period between the date to which said last statement relates and the date of the Damage
and
c) any abnormal condition of trade which had or could have had a material effect on the business
so that the figures thus adjusted shall represent as nearly as reasonably practicable those which would have been obtained at the date of
the Damage had the Damage not occurred?
Clauses and memoranda
Declarations
The insured shall, within 60 days of the end of each month or other agreed period, deposit with the company a signed statement showing the total
amount outstanding in customers’ accounts as set out in the insured’s accounts as at the end of the said month.
Adjustment
In consideration of the premium under this section being provisional in that it is calculated on 75 per cent of the sum insured, the premium will be
adjusted as follows:
On the expiry of each period of insurance, the actual premium shall be calculated at the rate per cent per annum on the average amount insured,
i.e. the total of the sums declared divided by the number of declarations. If the actual premium is greater than the provisional premium, the insured
shall pay the difference. If it is less, the difference shall be repaid to the insured, but such repayment shall not exceed 33,3 per cent of the provisional
premium paid.
If the amount of a declaration exceeds the sum insured applicable at the date of such declaration, then for the purposes of this memorandum only,
the insured shall be deemed to have declared such sum insured.
Accounts Receivable - Page 1 of 2 - Section 7
39
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
ACCOUNTS RECEIVABLE - SECTION 7
Riot and strike extension (if stated in the schedule to be included)
Subject otherwise to the terms, conditions, exclusions, exceptions and warranties contained therein, this section is extended to cover loss or 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) loss or damage occurring in the Republic of South Africa and Namibia;
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;
e) 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 provisos (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.
Accountants clause
Any particulars or details contained in the insured’s books of account or other business books or records which may be required by the company
under this section for the purpose of investigating or verifying any claim hereunder, may be produced and certified by the insured’s auditors or
professional accountants, and their certificate shall be prima facie evidence of the particulars and details to which it relates.
Duplicate records (if stated in the schedule to be included)
The insured shall maintain duplicates of their books of account or other business books or records containing details of outstanding balances and
such duplicates shall be stored at different premises from the originals.
Protections (if stated in the schedule to be included)
The insured’s books of account, or other business books or records containing details of outstanding balances, must be kept in a fire resistant safe,
cabinet or strong room outside business hours unless they are being worked on or are required for immediate reference.
Transit extension (if stated in the schedule to be included)
The insurance under this section includes loss as defined to the insured’s books of account or other business books or records whilst in transit to or
from the premises or residence of any director, partner, employee or accountant of the insured.
Accounts Receivable - Page 2 of 2 - Section 7
40
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
BUSINESS ALL RISKS - SECTION 6
Defined events
Loss or damage to the whole or part of the property described in the schedule while anywhere in the world by any accident or misfortune not
otherwise excluded
provided that the insured shall be responsible for the first amount payable stated in the schedule in respect of each and every event except a claim
resulting from fire, lightning or explosion.
Specific exceptions
The company shall not be liable for
1. loss of or damage to property resulting from or caused by
a) theft from any unattended vehicle in the custody or control of the insured or any principal, partner, director or employee of the
insured unless the property is contained in a completely closed and securely locked vehicle or the vehicle itself is housed in a
securely locked building and entry to or exit from such locked vehicle or building is accompanied by forcible and violent entry or exit;
b) its undergoing a process of cleaning, repair, dyeing, bleaching, alteration or restoration;
c) inherent vice or defect, vermin, insects, damp, mildew or rust;
d) the dishonesty of any principal, director, partner or employee of the insured whether acting alone or in collusion with others;
e) detention, confiscation or requisition by customs or other officials or authorities;
2. wear and tear or gradual deterioration (including the gradual action of light or climatic or atmospheric conditions) unless following an
accident or misfortune not otherwise excluded;
3. mechanical, electronic or electrical breakdown, failure, breakage or derangement unless caused by an accident or misfortune not otherwise
excluded;
4. loss of or damage to cash, bank and currency notes, coins, bonds, coupons, stamps, negotiable instruments, title deeds, manuscripts or
securities of any kind;
5. loss of or damage to goods consigned under a bill of lading.
Specific conditions
Average
If the total value of property insured which is not separately and individually specified is, at the time of the happening of any loss or damage to such
property, of greater value than the sum insured thereon, the insured shall be considered as being his own insurer for the difference and shall bear a
rateable share of the amount of the loss or damage. Each item of the schedule covering such property shall be separately subject to this condition.
Replacement value condition (if stated in the schedule to be included)
The basis upon which the amount payable is to be calculated shall be either
the replacement of the property by similar property in a condition equal to, but not better nor more extensive than, its condition when new
or
the repair of the property 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 property had been lost, destroyed or damaged beyond repair exceeds the sum insured thereon at the commencement of the loss or damage,
then the insured shall be considered as being their own insurer for the difference and shall bear a rateable proportion of the loss accordingly.
Specific extensions
Increase in cost of working extension (if stated in the schedule to be included)
The insurance under this item is limited to expenditure not otherwise recoverable under this section, necessarily and reasonably incurred as a result
of loss of or damage to property for which payment is made or liability therefore is admitted under this section, for the purpose of maintaining the
normal operation of the business.
Riot and strike extension (if stated in the schedule to be included)
Subject otherwise to the terms, conditions, exclusions, exceptions and warranties contained therein, this section is extended to cover loss or 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) loss or damage occurring in the Republic of South Africa or Namibia;
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;
Business All Risks - Page 1 of 2 - Section 8
41
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
BUSINESS ALL RISKS - SECTION 8
d) loss or damage occasioned by permanent or temporary dispossession resulting from confiscation, commandeering or requisition by
any lawfully constituted authority;
e) 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 provisos (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.
Business All Risks - Page 2 of 2 - Section 8
42
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
THEFT - SECTION 9
Defined events
Loss of or damage to all contents (the property of the insured or for which they are responsible) of any insured building at the insured premises
described in schedule as a result of theft accompanied by forcible and violent entry into or exit from such building or any attempt threat or as a result
of theft, or any attempt thereat, following violence or threat of violence unless otherwise stated on the schedule.
Extensions
1. The insurance under this section extends to cover loss of or damage to the property insured
a)
caused or accompanied by
(i) (ii) b) a thief or thieves being concealed upon the insured premises before close of business
entry to and/or exit from the premises being effected by use of a skeleton key or other similar device (excluding a duplicate
key) provided that the insured shall establish to the satisfaction of the company that such a skeleton key or device was used
whilst in a building at any additional premises used by the insured provided that
(i) such additional premises are advised to the company within 30 days from the time the risk attaches to the company
(ii) an additional premium, if any, is paid
(iii) the company’s liability in respect of this extension shall not exceed 50% of the highest amount stated in the schedule
applicable to any one premises
2. In addition to the limit of indemnity stated in the schedule
a) the insurance under this section includes
(i) damage to the buildings (including landlord’s fixtures and fittings) at the insured premises in the course of theft or any
attempt thereat
(ii) loss of buildings, landlord’s fixtures and fittings at the insured premises as a result of theft accompanied by forcible and
violent entry into or exit from such building or any attempt thereat or as a result of theft, or any attempt thereat,
following violence or threat of violence
b) the company will reimburse the insured all reasonable costs and expenses in effecting such temporary repairs and in taking
such temporary measures as may be reasonably necessary after loss or damage giving rise to a claim under this section
provided that the company’s liability shall not exceed the greater of R5 000 or the amount stated in the schedule in respect
of any one event.
3. 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 premises following upon the disappearance of any key to such premises or following upon the insured having
reason to believe that any unauthorised person may be in possession of a duplicate of such key
provided that
a) the company’s liability shall not exceed R10, 000 in respect of any one event
b) the company shall not be liable for the first R250 of each and every event.
4. The term all contents includes personal effects, tools and pedal cycles the property of the insured or any principal, partner, director or
employee of the insured in so far as such property is not otherwise insured up to an amount of R2 500 in the case of any one person.
5. Malicious Damage (if stated in the schedule to be included)
Damage to the buildings at the premises specified in the schedule (including landlord’s fixtures and fittings) and all contents (whilst in such
buildings), the property of the insured or for which they are responsible caused by deliberate or willful or wanton act of such person during
the course of any theft or attempted theft accompanied by forcible and violent entry into or exit from such buildings.
The liability of the company under this section for any one event shall not exceed the amount shown in the schedule for this extension.
Limitations
The company’s liability in respect of documents, manuscripts, business books, computer system records and media, plans, designs, patterns,
models and moulds is restricted to the value of materials and sums expanded in labour.
Specific exceptions
The company shall not be liable for
1. loss or damage which can be insured under a fire policy except in the case of explosion caused in an attempt to effect entry
2. loss or damage insurable under a glass insurance policy
3. property more specifically insured or, unless specified in the schedule, cash, bank and currency notes, cheques, postal orders, money
orders, current negotiable stamps and documents or certificates of a negotiable nature
4. loss or damage in which any principal, partner, director or any member of the insured’s household or any of the insured’s employees is
concerned as principal or accessory.
Theft - Page 1 of 2 - Section 9
43
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
THEFT - SECTION 9
Specific conditions
1. This section shall be voidable if the nature of the risk is materially altered without the prior written consent of the company.
2. In respect of any premises stated in the schedule to be subject to this condition at which a burglar alarm is installed it is a condition
precedent to the liability of the company and warranted that
a)
the burglar alarm installed at the premises shall be made fully operative whenever the premises are not open for business unless
a principal, partner, director or employee of the insured is on the premises
b) such alarm shall be maintained in proper working order but the insured shall be deemed to have discharged their liability therefore
if they have maintained their obligations under a contract with the suppliers or servicing engineers of the alarm system.
This insurance shall not cover loss of or damage to the property following the use of the keys of the burglar alarm or any duplicate thereof belonging
to the insured unless such keys have been obtained by violence or threat of violence to any person.
Theft - Page 2 of 2 - Section 9
44
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
MONEY - SECTION 10
Defined events
Loss of or damage to money (as defined) occurring in the Republic of South Africa, Namibia, Lesotho, Botswana, Swaziland, Zimbabwe and Malawi
except if otherwise specified
Provided that the liability of the company for all loss or damage arising from all occurrences of a series consequent upon or attributable to one source
or original cause shall not exceed the specific limitations stated in the schedule.
Definitions
Money shall mean cash, bank and currency notes, cheques, postal orders, money orders, current negotiable postage, revenue and holiday stamps,
credit card vouchers and documents, certificates or other instruments of a negotiable nature, the property of the insured or for which they are
responsible.
Receptacle shall mean any safe, strong room, strongbox, till, cash register, cash box or other receptacle for money or any franking machine.
Clothing shall mean clothing and personal effects not otherwise insured belonging to the insured or to any principal, partner, director or employee
of the insured.
Extensions
1. Receptacles and clothing
In addition to any payment in respect of a defined event, the company will indemnify the insured in respect of receptacles and clothing
(as defined) lost or damaged as a result of theft of money or attempted theft of money, provided that the company’s liability under this
extension in respect of clothing shall not exceed R5 000, and in respect of receptacles, the amount stated in the schedule or R5 000 which
ever is the greater.
2. Locks and keys
In addition to any payment in respect of a defined event, the company will indemnify the insured in respect of the cost of replacing locks
and keys to any receptacle at the insured premises following upon the disappearance of any key to such receptacle or following upon the insured having reason to believe that any unauthorised person may be in possession of a duplicate of such key
Provided that
(i) the company’s liability shall not exceed R5 000 in respect of any one event
the company shall not be liable for the first R250 of each and every event.
3.
Riot and strike extension (if stated in the schedule to be included)
Subject otherwise to the terms, conditions, exclusions, exceptions and warranties contained therein, this section is extended to cover loss
or 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) loss or damage occurring in the Republic of South Africa and Namibia;
b) consequential or indirect loss or damage of any kind or description whatsoever;
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;
e) loss or damage related to or caused by any occurrence referred to in general exceptions 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
such occurrence.
If the company alleges that, by reason of provisos (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.
4.
Skeleton keys
The insurance under this section extends to cover loss of or damage to the property insured caused or accompanied by entry to receptacles
by use of a skeleton key or other similar device (excluding a duplicate key) provided that the insured shall establish to the satisfaction of
the company that a skeleton key or device was used.
5. Personal accident (assault) extension (if stated in the schedule to be included)
The term “defined events” in the money section shall be deemed to include bodily injury, caused by accidental, violent external and visible
means as a result of theft, or any attempt thereat, to the insured or to any principal, director or employee of the insured (hereinafter in this
extension referred to as such person) while such person is acting in the course of his duties in the insured’s employ.
Money - Page 1 of 5 - Section 10
45
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
MONEY - SECTION 10
The company will pay to the insured, on behalf of such person or his estate, the sum or sums stated in the schedule in the event of bodily injury to
such person resulting within 24 calendar months in
1. death the capital sum
2. permanent disability as follows the percentage of the capital sum specified
Percentage of
capital sum
a)
loss by physical separation at or above the wrist or ankle of one or more limbs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
b)
permanent and total loss of
100
whole eye . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
sight of eye . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
sight of eye except perception of light . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
c) permanent and total loss of hearing
both ears . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
one ear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
d) permanent and total loss of speech . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . e) injuries resulting in permanent total disability from following usual occupation or any other
100
occupation for which such person is fitted by knowledge or training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
f) loss of four fingers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
g) loss of thumb
both phalanges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
one phalanx . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
h) loss of index finger
three phalanges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
two phalanges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
one phalanx . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
i) loss of middle finger
three phalanges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
two phalanges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
one phalanx . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
j) loss of ring finger
three phalanges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
two phalanges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
one phalanx . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
k) loss of little finger
three phalanges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
two phalanges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
one phalanx . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
l) loss of metacarpals
first or second (additional) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
third, fourth or fifth (additional) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
m)
loss of toes
all on one foot . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
great, both phalanges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
great, one . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
other than great, if more than one toe lost, each . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
3. In the case of total and absolute incapacity from following usual business or occupation the weekly sum specified in the schedule shall
be payable
4. The reasonable expenses incurred, up to the sum specified in the schedule, shall be payable in respect of medical, surgical, dental, nursing
home or hospital treatment (including the cost of artificial aids and prostheses and the costs and expenses incurred in emergency
transportation or freeing such person if trapped or bring such person to a place of safety) incurred within 24 months of the defined event
Memoranda (applicable to permanent disablement benefits)
a) Where the injury is not specified the company will pay such sum as in its opinion is consistent with the above provisions
b) Permanent total loss of use of part of the body shall be considered as loss of such part
Money - Page 2 of 5 - Section 10
46
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
MONEY - SECTION 10
c) 100 per cent shall be the maximum percentage of compensation payable for disability resulting from an accident or series of accidents
arising from one cause in respect of any such person
provided that
(i) the company shall not be liable to pay in respect of any one such person more than the capital sum plus the sums specified under
items 3 and 4;
(ii) the sum specified under item 3 shall be payable only for the duration of the incapacity of such person and shall not be payable for
more than 104 weeks and such payment shall cease as soon as the injury causing the incapacity has healed as far as is reasonably
possible notwithstanding that permanent disability may remain;
(iii) compensation payable under item 4 shall be reduced by an amount equal to the compensation received or receivable under any
workmen’s compensation enactment in respect of any treatment for which compensation is payable under item 4;
this extension shall not apply to any such person under 15 or over 70 years of age;
(iv) (v) after suffering bodily injury for which benefit may be payable under this extension, such person shall submit to medical examination
and undergo any treatment specified. The company shall not be liable to make any payment unless this proviso is complied with to
ts satisfaction.
(vi) general exception 2 and general conditions 2 and 9 do not apply to this extension;
(vii) in respect of this extension only general exception 1 is deleted and replaced by the following:
This extension does not cover death or bodily injury directly or indirectly caused by or in consequence of war, invasion, act of foreign
enemy, hostilities (whether war be declared or not), civil war, mutiny, insurrection, rebellion, revolution or military or usurped power.
Extensions to the personal accident (assault) extension
1. Bodily injury shall be deemed to include injury caused by starvation, thirst and/or exposure to the elements directly or indirectly resulting
from such person being the victim of theft or any attempt thereat
2. In the event of disappearance of any such person in circumstances which satisfy the company that he has sustained injury to which this
personal accident (assault) extension applies and that such injury has resulted in the death of such person, the company will, for the
purpose of the insurance afforded by this extension, presume his death provided that if, after the company shall have made payment
hereunder in respect of such person’s presumed death, he is found to be alive, such payment shall forthwith be refunded by the insured to
the company.
Specific exceptions
The company shall not be liable for loss of or damage to money
1. arising from dishonesty of any principal, partner, director or person or persons in the employ of the insured not discovered within 14 working
days of the occurrence thereof;
2. arising from shortage due to error or omission;
3. arising from the use of keys to any safe or strong-room unless the keys
a) b) are obtained by violence or threats of violence to any person
are used by the keyholder or some other person with the collusion of the keyholder and the insured can prove to the satisfaction of
the company that the keyholder or such other person had used the keys to open the safe or strong-room;
4. in an unlocked safe or strong-room whilst the portion of the premises containing such safe or strong-room is unattended but this exception
will not apply if it can be shown to the satisfaction of the company that the keyholder to the safe or strong-room deliberately left it unlocked
with the intention of allowing the money to be stolen;
5. not contained in a locked safe or strong-room whilst the portion of the premises containing such money is unattended but this exception will
not apply if it can be shown to the satisfaction of the company that the persons(s) responsible for the money deliberately left it outside the
safe or strong-room with the intention of allowing it to be stolen;
6. in any vehicle being used by the insured unless a principal, partner, director or employee of the insured is actually in such vehicle or, if not
in such vehicle, is within 5 metres of it in a position from which the vehicle is clearly visible. This exception shall not apply following an
accident involving such vehicle rendering the said person incapacitated
Specific exceptions (3), (4), (5) and (6) do not apply up to an amount of R5 000 and such losses shall not be reduced by any first amount
payable.
Memoranda
1. Loss of or damage to money as insured under this section arising from dishonesty of any principal, partner, director or person in the
employ of the insured (such person), as defined under this section, shall be subject to the following compulsory First Amount Payable
Clause
The amount payable hereunder in respect of an event involving any such person or any number of such persons acting in collusion, shall
be reduced by
(a) 2% of the applicable limit under defined events plus
(b) a further amount of 10% of the net amount payable after deduction of the 2% specified in (a) above.
2. The company shall not be liable under this section of the policy in respect of loss or damage arising from any event in respect of which a
claim is payable, or would be payable but for any first amount payable or co-insured clause under the fidelity section of the policy or any
other fidelity insurance.
Money - Page 3 of 5 - Section 10
47
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
MONEY - SECTION 10
Special conditions applicable to cheques
First amount payable applicable to theft of cheques
Any loss or series of losses attributable to one original event which is payable under this section and which results from the theft of any cheque or
cheques shall be reduced by a first amount payable of 25% of the loss indemnifiable by this section unless:
1.
Cheques drawn by the Insured
a) the cheque has been drawn and crossed exactly in accordance with the under mentioned “Recommended South African Insurance
Association (SAIA) procedure for drawing and crossing of cheques” or any other superior method approved by the SAIA and the
printed portion of the cheque (as opposed to the written or typed portion) has been printed by the bank itself or a printer licensed to
print cheques by the Automatic Clearing Bureau
or
b) the cheque has been dispatched to the payee by certified post or any post where the security is equal or superior to certified post
2. Cheques drawn by someone other than the Insured and which were received by the Insured by post or direct by the cashier
a) such cheque has been crossed and marked “not negotiable” and marked “not transferable” immediately on receipt thereof by the
Insured and
b) the Insured is able to identify the drawer and amount of the cheque from their records
3. Cheques of which the Insured is the true owner which were drawn by someone other than the Insured and posted to the Insured but not
received
a) the cheque has been drawn and crossed exactly in accordance with the under mentioned “Recommended SAIA procedure for
drawing and crossing of cheques” or any other superior method approved by the SAIA
or
the cheque was dispatched to the Insured by certified post or any post where security is equal or superior to certified post.
b) or
c) the invoice of the insured (to which the payment by cheque relates) contains a message (approved by the company or SAIA) on it
recommending or requiring that the cheque be drawn in accordance with the under mentioned “Recommended SAIA procedure for
drawing and crossing of cheques”,
Recommended SAIA procedure for drawing and crossing of cheques and printing of blank cheques
(A) Drawing and crossing of cheques
One of the safest methods of drawing and crossing a cheque which is acceptable to banks is as noted hereunder. This method is
recommended by the SAIA
1. Delete the pre-printed words “or bearer”. This limits the possibility of the drawee bank paying out to a bearer who might not be
entitled to payment
2. If instead of “or bearer” your cheque has pre-printed on it “or order” these words must also be deleted
3. Write on the face of the cheque the words “not transferable”
4. Cross the cheque by drawing two parallel lines across the cheque
5. Write the words “not negotiable” between the two parallel lines referred to in 4 above
6. Ensure that the payee is accurately, properly and fully described for example where the payee is a company its full name should be
used: RH Jones (Pty) Ltd not just RH Jones
Where the bank account number or CC number of the payee is know this should be included after the name of the payee, for
example, “RH Jones (Pty) Ltd, Co No: 69/123456” or “RH Jones (Pty) Ltd ABC Bank account no: 123456789”
Whilst highly recommended it is not compulsory to use the bank account number of the payee
7. In drawing the cheque no spaces should be left which would allow anyone to add extra words or figures
8. An example of this method of drawing a cheque is attached as Annexure A
9. On the rear of the cheque the wording listed in Annexure B (last page of this section) should be printed. Please ensure that space
is left on the rear of the cheque for bank stamps and endorsements
10.
All the markings on a cheque should be legible and clearly visible. Persons drawing cheques should not use abbreviated or different
versions of the terminology used in the example. The words “not neg” and a crossing using a rubber stamp containing a rectangle
rather than two parallel lines are worthless
11. The method used to complete cheques should be one which makes an ink impression on the paper like handwriting, a typewriter or
a dot matrix printer. The ribbon used on the printer/typewriter should be of the type which impregnates the paper with ink.
Do not use:
(i) old ribbons
(ii) laser printers which do not make an impression into the paper
(iii) the “reverse printing technique”
(iv) correctable type ribbons.
Money - Page 4 of 5 - Section 10
48
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
MONEY - SECTION 10
(B) Printing of blank cheques
Blank cheques should only be printed by the Bank itself or a printer licensed by the Automatic Clearing Bureau. These printers know the
recommended requirements of banks and should only use approved:
(i) security paper (CBSI or superior)
(ii) security designs
(iii) special security inks compatible with the security paper/design
(iv) methods which make it difficult for anyone to make a supply of blank cheques by photocopying the originals.
Money - Page 5 of 5 - Section 10
49
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
SAIA Recommended Cheque
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
51
leave no gaps
draw a line after name,
amount in words and
amount in figures to prevent
inclusion of further detail
not
transferable
prohibits transfer
of the cheque
ANNEXURE B –
Warning to be printed on bottom left front of cheque – leave enough space for bank stamps etc.
n
t
no ble
tia
o
eg
general crossing requires
payments to be made to
a bank only
leave no gaps
Signature
R1000-00
OR BEARER
OR ORDER
1/10/93
cross out for
added protection
WARNING
To person encashing this cheque or receiving it in exchange for any consideration.
Where a cheque has been stolen from or lost by the true owner, you may be liable to reimburse him for his loss if you encash
such cheque or receive it in exchange for any consideration. (Section 81 of the Bills of Exchange Act, 1964)
NB This cheque is crossed and marked “not negotiable” and “not transferable”
use full correct name
of payee
AMOUNT One Thousand Rand Only
PAY Dan Smith
ABC BANK LIMITED
provides additional
remedies to the owner
of the cheque
ANNEXURE A –
SAIA RECOMMENDED CHEQUE
Chartis (Multi Armour) October 2009
GLASS - SECTION 11
Defined events
Loss of or damage to internal and external glass (including mirrors), signwriting and treatment thereon at the insured premises as stated in the
schedule, the property of the insured or for which they are responsible.
Following loss of or damage to glass the company will also indemnify the insured for
1. the cost of such boarding up as may be reasonably necessary;
2. damage to shop fronts, frames, window displays (including fixtures and fittings), burglar alarm strips, wires and vibrators as a direct result
of such loss or damage;
3. the cost of removal and reinstallation of fixtures and fittings necessary for the replacement of the glass;
4. the cost of employment of a watchman service prior to replacement of glass or boarding up or the repair of the burglar alarm system,
unless payable under any other insurance arranged by the insured;
provided that the liability of the company shall not exceed
(i) for the replacement of glass, signwriting and treatment – the sum insured as stated in the schedule applicable to the premises at
which loss or damage occurs;
(ii) for all other costs and expenses provided for by this section and resulting from one occurrence or series of occurrences attributable
to one source or original cause – in the aggregate the sum of R10, 000.
Specific condition
Average
If the property insured is, at the commencement of any damage to such property by any peril insured against, collectively of greater value than the
sum insured thereon, then the insured shall be considered as being their own insurer for the difference and shall bear a rateable share of the loss or
damage accordingly. Every item if more than one shall be separately subject to this condition.
Definition of glass
Unless specifically agreed, all glass (other than mirrors) insured by this section is presumed to be plain plate/float glass not exceeding 6 mm in
thickness, whether coated with a film or not, or 6,5 mm laminated safety glass.
Specific exceptions
The company shall not be liable for
1. loss or damage which is insured by, or would, but for the existence of this section, be insured, by any fire insurance, except in respect of
any excess beyond the amount which would have been payable under such fire insurance had the insurance under this section not been
effected, but this specific exception shall not apply to loss or damage for which the insured is responsible as tenant and not as owner
2. glass forming part of stock in trade
3. glass which, at inception of this insurance, is cracked or broken unless cover has been agreed by the company
4. defacement or damage other than fracture through the entire thickness of the glass or any laminate thereof.
Extensions
Special replacement (if stated in the schedule to be included)
If, following loss or damage insured hereunder, the insured is obliged in terms of the National Building Regulations or similar legislation to replace
the damaged glass with glass of a superior quality, then the company shall be liable for the increased cost of such replacement including (but not
limited to) frames therefore, provided that if the cost of so replacing the whole of the insured property (inclusive of other items insured) is greater
than the sum insured thereon at the time of the loss or damage, then the insured shall be considered as being his own insurer for the difference and
shall bear a rateable proportion of the loss or damage accordingly.
Riot and strike extension (if stated in the schedule to be included)
Subject otherwise to the terms, conditions, exclusions, exceptions and warranties contained therein, this section is extended to cover loss or 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 his extension does not cover:
a) loss or damage occurring in the Republic of South Africa or Namibia;
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;
e) 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 provisos (a), (b), (c), (d) or (c), loss or damage is not covered by this section, the burden
of proving the contrary shall rest on the insured.
This extension shall only apply to loss or damage for which the insured is responsible as tenant and not as owner.
Glass - Page 1 of 1 - Section 11
53
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
FIDELITY - SECTION 12
Defined Events
Direct financial loss which occurs during the Period of Insurance following:
Employee Dishonesty
Loss of Money, Securities or other property, to the amount reflected under Limit of Liability on the Schedule resulting directly from one or
more fraudulent or dishonest acts committed by an Employee acting alone or in collusion with others, provided always that:
a) such fraudulent or dishonest acts are (a) committed during the Period of Insurance specified in the schedule and (b) are discovered
in accordance with Specific Condition 8 of this section of the policy and,
b) such fraudulent or dishonest acts shall mean only fraudulent or dishonest acts committed by an Employee with the manifest intent
(a) to cause the Insured to sustain such loss and (b) to obtain financial benefit for the Employee, or for any other person or
Organisation intended by the Employee to receive benefit, other than salaries, commissions, fees, bonuses, promotions, awards,
profit sharing, pensions or other employee benefits lawfully earned in the normal course of employment.
Specific exceptions to this Section (Applicable to all Covers unless otherwise stated)
The company shall not be liable for:
1. Loss of Potential Income
Loss due to loss of potential or unrealised income, including but not limited to interest, commissions, bonuses and dividends and loss of
computer time, not realised by the Insured because of an act covered under this Policy.
2. Specified costs, Fees and Expenses
Costs, fees and other expenses incurred by the Insured in establishing the existence of or amount of loss covered under this Policy, except
as may be specifically stated to the contrary under General Extension 1 of this section.
3. Indirect Damages
Damages of any type for which the Insured is legally liable, except direct compensatory damages directly resulting from an act covered
under this section.
4. Specified Legal Fees, Costs and Expenses
The costs of defending any legal proceeding brought against the Insured, or the fees, costs or expenses incurred or paid by the Insured
in prosecuting or defending any legal proceeding, whether or not such proceeding results or would result in a loss to, or affect a recovery
by the Insured covered by this section..
5. Loss Prior to the Inception of this Policy
Any liability in respect of any loss or claim (a) arising out or in connection with any act, circumstances or occurrences which have been
notified to any Insurer on any other policy of insurance effected prior to the inception of this section of the Policy; (b) arising out of or in
connection with any act, circumstances or occurrences known to the Insured prior to the inception of this section of the Policy.
6. Confidential Information and Trade Secrets
Loss due to loss of and/or damage to any proprietary information or confidential information of any kind, including trade secrets and
confidential processing methods.
7. Extortion
Loss due to extortion unless committed by an employee or as provided under General Extension 3.
8. Profit, Loss or Inventory Computation
Any loss or that part of any loss, as the case may be, the proof of which, either as to its factual existence or as to its amount, is dependent
upon an inventory computation or a profit and loss computation alone.
Specific conditions (Applicable to this Section unless otherwise stated)
1. Automatic Acquisitions, Consolidation or Merger
If the total number of Employees of the Insured (as found in the Proposal Form) increases by more than 10% through the acquisition of
assets or shares, consolidation or merger with some other concern then the insurance provided by this section shall also apply as respect
such Employees provided the Insured shall (a) give the company written notice of the transaction within 90 days thereafter, and (b) give the
company such other additional information as the company may reasonably require, and (c) pay the company an additional premium
calculated pro-rata from the date of the transaction to the end of the period of insurance.
2. Basis of Valuation
In no event shall the company be liable under this section of more than (a) as respects Securities, the actual cash value thereof at the close
of business on the business day next preceding the day on which the loss was discovered, or for the actual cost of replacing the Securities,
whichever is less; (b) the cost of blank books, pages, tapes or other blank materials to replace lost or damaged books of account or other
records; (c) the reasonable cost of re-writing or amending the software programs or systems where such re-writing or amending is
necessary to correct the programs or amend the security codes following an Insured claim for which liability is admitted under the Policy;
(d) the actual cash value at the time of loss of other property (not included in the above) or for more than the actual cost of repairing or
replacing the property with property of similar quality and value, whichever is less.
3. Cancellation
The insurance provided by Cover A shall be deemed cancelled in respect of any Employee (a) immediately upon discovery by the insured,
or by any partner, senior employee, director or officer thereof not in collusion with such Employee, of any dishonest or fraudulent act on
the part of such Employee, and further dishonest or fraudulent acts committed by such Employee are excluded; (b) upon the effective date
and at the time specified in a written notice to the Insured by the company.
Fidelity - Page 1 of 5 - Section 12
55
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
FIDELITY - SECTION 12
4. Claims Procedures
Upon knowledge or discovery (as provided under specific condition 10 (b) and 11 of this section) of loss or of an occurrence which may give
rise to a claim for loss, the Insured shall (a) give notice thereof as soon as practicable to the company or any of its authorised agents and,
(b) file detailed proof of loss (which includes but is not limited to a completed proof of loss form in the format agreed by the company) with
the company, within six months after the knowledge or discovery of loss, or within such further period as agreed to in writing by the
company: (c) provided all requested information and documents and co-operate with the company on all matters pertaining to loss. The
Insured may refrain from reporting the matter to the police but shall do so immediately should the company require such action to be
taken.
5. Deductible and Other Insurance
Coverage under this Policy will be excess of the greater of the following amounts with respect to each and every loss, (a) the deductible
amount(s) set forth in the Schedule, or (b) the amount of any other valid and collectable insurance or suretyship available to the Insured’s
whether such other insurance or suretyship is stated to be primary, excess, contributing, contingent or otherwise, unless such other
insurance or suretyship is written only as specific excess insurance over the limits of liability provided under this policy. All Loss caused by
acts committed by any person or in which such person is concerned or implicated and/or arising from any one occurrence will be considered
a single Loss. If a Loss is covered in part under this Policy and in part under a prior similar policy or bond superseded by this policy, the
deductible amount(s) applicable to such Loss under this Policy will be reduced by the amount of any deductible(s) actually applied to such
loss under this Policy.
6. Discovery Period
Loss is covered under this section only if discovered during the Period of Insurance or not later than twelve months following the termination
of this section or of the coverage under this section of the Policy which applies to such loss, or cancellation or termination of this section as
to any Insured, provided that the company is not liable for any loss which occurred more than 24 months prior to discovery.
7. Joint Insured
a) First Named Insured
1.
If more than one Insured is covered under this section, the Insured first named shall act for itself and for every other Insured
for all purposes of this section of the policy.
2. Payment of any loss under this section by the company to the Insured first named shall fully release the company on account
of such loss.
3. If the Insured first named ceases for any reason to be covered under this section of the Policy, then the Insured next named
shall thereafter be considered as the Insured first named for all purposes of this section of the Policy.
b) Knowledge or Discovery by Insured
Knowledge possessed or discovery made by any Insured or by any partner, senior employee, manager, director or officer thereof
shall for the purpose of this section of the Policy constitute knowledge possessed or discovery made by every Insured.
Cancellation – Insured
c) If, prior to the cancellation or termination of this section of the Policy, this section or any Section hereof is cancelled or terminated
as to any Insured, there shall be no liability for any loss sustained by such Insured unless discovered within the terms of specific
Condition 8.
8. Knowledge or Discovery of Loss
Knowledge or discovery of a loss occurs when the Insured becomes aware of facts which would cause a reasonable person to assume that
a loss covered by this section has been or will be incurred, even though the exact amount or details of the loss may not then be known.
9. Legal Proceedings
The Insured cannot bring an action against the company unless: (a) the Insured has complied with the terms and conditions of this policy;
(b) the action is brought 12 months from the receipt by the company of the required proofs of loss; (c) the action is brought within 2 years
after knowledge or discovery of loss.
If any limitation listed above is prohibited by any law controlling the construction of this section of the Policy, the limitation shall be deemed
to be amended to comply with the minimum period of limitation permitted by law.
10. Limit of Liability
The company’s total liability for all loss or losses paid during the Period of Insurance shall not cumulatively exceed the aggregate limit of
liability as set forth in the Schedule applicable to
a) Defined Events
for all loss in respect of any act or series of acts involving any Employee or in which such Employee is concerned or implicated,
regardless of when, during the period of this Policy or prior thereto, such acts occurred.
Third Party Computer and Funds Transfer Fraud (if stated in the schedule to be included)
b) for all loss or losses resulting from one occurrence or event. All acts committed by one person or in which such person is involved
or implicated will be considered as one occurrence or event.
11. Limit of Liability – Prior Insurance
Loss that occurs partly during this policy section period and partly during the period of any previous policy issued by the company, but for
which the discovery period has not expired, shall be limited to the larger of the amount of insurance under the previous policy or this section
of the policy.
Fidelity - Page 2 of 5 - Section 12
56
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
FIDELITY - SECTION 12
12. Non-Accumulation of Liability
Regardless of the number of years this Policy shall continue in force and the number of premiums which shall be payable or paid, the limit
of the company’s liability as specified in the Schedule shall not be cumulative from year to year or period to period.
13. Ownership
The Insured Property (including Money and Securities) may be owned by the Insured, or held by the Insured in a capacity for which the
Insured is liable for the loss thereof, or may be property as respect which the Insured is legally liable.
14. Recoveries
Recoveries except from suretyship, insurance, reinsurance, security or indemnity taken or effected by the company or for the amount of
any first amount payable, less the actual cost of recovery, made after loss will be distributed as follows: first, the Insured shall be reimbursed
for loss exceeding the limit of liability or settlement (whichever is less); second, the company shall be reimbursed for the settlement made;
third, the Insured shall be reimbursed for loss in respect of the deductible amount.
15. Settlement of Loss
The company may, with the consent of the Insured, settle any claim for loss of property with the owner thereof. Any property for which the
Insurer has made an indemnification shall, at the option of the company, become the property of the company.
The company may, at its discretion, pay actual cash value, or effect repairs or replacements. If the Company and the Insured cannot agree
upon the cash value or the cost of repairs or replacements, such cash value or such costs may, by agreement in writing between the parties,
be determined by arbitration in accordance with the statutory provisions in that regard for the time being in force.
16. Maintenance of Systems and Procedures
The Insured shall institute and/or maintain and continue to employ in any material manner all such systems of check and control accounting
and clerical procedures and methods of conducting his business as has been represented to the company by the Insured but the Insured
may:
a) change the remuneration and conditions of service of any Employee
b) make any changes as are approved beforehand in writing by the Insured’s auditors.
The proposal form or other information supplied by or on behalf of the Insured, save exceptions (a) and (b) above, shall form the
basis of the contract of insurance under this section of the policy.
17. Subrogation
In the event of any payment under this section of the Policy, the Company shall be subrogated to all Insured’s rights of recovery. The
Insured shall execute all papers required and shall do everything necessary to secure and preserve the rights, including the execution of
the documents necessary to enable the Company effectively to bring suit in the name of the Insured.
19. Accountants Clause
Any particulars or details contained in the Insured’s books of account or other business books or documents which may be required by the
company under this policy for the purpose of investigating or verifying any claim hereunder may be produced and certified by the Insured’s
auditors or professional accountants and their Certificate shall be prima facie evidence of the particulars and details to which it relates.
19. Non-Contribution
This insurance shall stand in excess of, and shall not contribute with, any other policy effected by the Insured’s bankers, transfer
secretaries, stockbrokers or other appointed agents.
General extensions
The Insurance by this section of the Policy is extended to include:
1. Cost of Recovery
If the Insured shall sustain any loss to which this section of the Policy applies which exceeds the sum Insured hereunder, the company will,
in addition to the sum Insured, pay the Insured costs and expenses necessarily incurred with the consent of the Company (which consent
shall not be unreasonably withheld) for the recovery or attempted recovery thereof. All amounts recovered by the Insured in excess of the
above part of the loss shall be allocated in accordance with specific Conditions 14, provided that the liability of the Company shall not
exceed the amount stated in the Schedule.
2. Expenses incurred in Reinstating Office Records
Costs, charges and expenses incurred by the Insured in replacing and/or restoring any computer files, and data media documents,
manuscripts, business books, plans, design specifications or programmes destroyed, damaged or lost as a result of loss insured by this
section of the Policy, provided that the liability of the company shall not exceed the amount stated in the Schedule.
3. Extortion (if stated in the schedule to be included)
Direct financial loss following loss of money, securities or other property surrendered away from the premises reasonably resulting from a
threat communicated to the Insured to:
(i) do bodily harm to a director, employee or partner of the Insured or to the proprietor (if the Insured is a sole trader) or any relative or
guest or any such person who was, or allegedly was, kidnapped anywhere, or
(ii) damage or destroy any property (including computer systems, software or programs) owned by the Insured or for which the Insured
is legally liable, provided that prior to the surrender of such money, securities or other property, the person receiving the threat has
made a reasonable effort to report the extortionist’s demand to an associate and the Insured has made a reasonable effort to report
the extortionist’s demand to the police.
Fidelity - Page 3 of 5 - Section 12
57
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
FIDELITY - SECTION 12
4. Retroactive Cover – No previous insurance in force (if stated in the schedule to be included)
This insurance will apply to defined events as insured herein, which occurred prior to inception of this policy but not prior to the retroactive
date reflected on the schedule, provided the event is discovered within the sooner of 12 months of the termination of the employment of
the employee concerned or within 12 months of the expiry of the policy.
5. Superseded insurance (if stated in the schedule to be included)
“Defined Events” as insured herein which occurred during the currency of any insurance superseded by this section of the Policy provided
that:
5.1 This extension is restricted to losses which would have been payable by the superseded insurance but which are not claimable
because of the expiry of the period of time allowed by the superseded insurance for the discovery of the defined event.
5.2 The defined events are discovered within the sooner of 12 months of the termination of the employment of the employee concerned
or within 12 months of the expiry of this section of the Policy.
5.3 The amount payable under this extension shall not exceed the amount insured by this section of the Policy or the amount insured
by the superseded insurance whichever is the lesser.
5.4 In the event of the defined events involving one employee or any number of employees occurring during both the currency of this
section of the Policy and that of the superseded Policy, the maximum amount payable shall not exceed the amount insured by this
section of the Policy at the time of the discovery of the defined events.
5.5 This extension will not apply to defined events which occurred more than the number of years stated in the Schedule before
inception of this section of the Policy.
5.6 The Company is not liable for any loss which occurred more than 24 months prior to discovery.
6.
Legal Fees
Reasonable legal fees, costs and expenses incurred and paid by the Insured in defence of any demand, claim, suit or legal proceeding
which the Insured establishes results directly from a covered loss under this section of the Policy, provided always that;
(i) such indemnity under this Extension is part of and not in addition to the Limit of Liability reflected in the Schedule of this Policy;
and
such loss exceeds the First Amount Payable reflected in the Schedule;
(ii) and
(iii) the company shall not be liable to make any payment to the suppliers of services for fees, costs or other expenses (whether such
fees, costs or expenses be for legal, accounting or other services) incurred by the Insured.
7. Care Custody and Control (if stated in the schedule to be included)
Direct financial loss sustained by any other person or Organisation following loss of money, securities or other property under the care,
custody or control of the Insured or for which the Insured is liable.
8. Unidentifiable Employees (if stated in the schedule to be included)
If a loss is alleged to have been caused by the fraud or dishonesty of any one or more of the Employees and the Insured shall be unable
to designate the specific Employee or Employees causing such loss, the Insured shall nevertheless have the benefit of this Cover, subject
to the provisions of this section, provided that the evidence submitted proves beyond reasonable doubt that the loss was due to the fraud
or dishonesty of one or more of the said Employees, and provided, further, that the aggregated liability of the company of such loss
shall not exceed the Limit of Liability applicable to this Cover.
This Cover excludes:
a) loss under Cover A caused by any broker, factor, commission agent, consignee, contractor or other agent or representative of the
same general character;
b) any Employee from and after the time that the Insured or any partner or officer thereof not in collusion with such Employee shall
have knowledge or information that such Employee has committed any dishonest or fraudulent act whether such act be committed
(a) after the date of employment by the Insured or (b) prior to the date of employment by the Insured.
This cover is conditional upon:
The company only being liable to the extent of the participation/shareholding of any uninvolved partners/principals/directors or members
for a Defined Event in which any partner/principal/director or member of the Insured is or has been directly involved.
9.
Third Party Computer and Funds Transfer Fraud (if stated in the schedule to be included)
The Theft of Money, Securities or other property by Computer Fraud; or the Theft of any of the Insured’s funds from their Transfer Account
at a Financial Institution through Fraudulent Transfer Instructions communicated to such Financial Institution up to the amount reflected
under Limit of Liability on the Schedule.
This Cover excludes:
a) Loss due to any fraudulent, dishonest or criminal act by an Employee, director, trustee or authorised representative of any Insured,
while working or otherwise and whether acting alone or in collusion with others.
10. Reduction/Reinstatement of insured amount clause (if stated in the schedule to be included)
The payment by the company of any loss involving one employee or any number of employees shall not reduce the company’s liability in
respect of the remaining insured employees provided that:
1
the maximum amount payable by the company for all insured employees shall not exceed double the sum insured shown in the
schedule;
Fidelity - Page 4 of 5 - Section 12
58
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
FIDELITY - SECTION 12
2. the insured pays additional premium calculated in terms of the following formula
Annum premium in first at time of discovery of loss Amount of claim payment
x
Sum insured at time of discovery of loss
The additional premium shall be payable in full and may not be reduced due to the period between the date of discovery of loss and the expiry date
being less than 12 months.
General definitions (applicable to this Section)
Associated Company(ies) means such companies in which the Insured owns more than twenty percent of the share capital and retains
1. management control.
2. Computer Fraud means, the wrongful conversion of assets under the direct or indirect control of the Insured’s computer system by means
of the direct fraudulent accessing of such computer system by persons other than Employees and (a) the insertion of fraudulent data or
instructions into such computer system: or (b) fraudulent alteration of data, programs or routines in such computer system.
3. Employee means any person or persons while in the regular service of the Insured in the ordinary course of the Insured’s business during
the Period of Insurance specified in the Schedule and whom the Insured (a) compensates by salary, wages and/or commissions, and (b)
has the right to govern and direct in the performance of such service and subject to the same provisions shall also mean any (i)
ex-Employee for a period not exceeding sixty days following termination of such person’s services, (ii) part-time or temporary Employees,
(iii) students gaining work experience with the Insured, (iv) a director or trustee of the Insured while performing acts coming within the scope
of usual duties of an Employee and who is also employed as an officer or Employee of the Insured in some other capacity, (v) any
individuals assigned to perform employee duties for the Insured by any agency furnishing temporary personnel on a contingent or part-time
basis; provided, however, that this section of the Policy does not cover any loss caused by such individual if such loss is also covered by
an insurance or suretyship held by the agency furnishing such temporary personnel to the Insured.
4.
Financial Institution means (a) a banking or savings institution, or (b) a stockbroker, fund manager or similar investment institution at which
5. Fraudulent Transfer Instructions means (a) Electronic Instructions fraudulent electronic, telegraphic, cable, teletype, Tested telex, Tested
facsimile or telephone instructions to a Financial Institution to debit a Transfer Account and to transfer, pay or deliver funds from such
account, which instructions purport to have been transmitted by the Insured or by a person duly authorised by the Insured to issue such
instructions but which have been fraudulently transmitted by another, and (b) Written Instructions fraudulent written instructions to a
Financial Institution to debit a Transfer Account and to transfer, pay or deliver funds for such account through an electronic funds transfer
system at specified items or under specified conditions, which written instruction purport to have been duly issued by the Insured but which
have been fraudulently issued, forged or altered by another.
6.
Money means currency, coins, bank notes and bullion and traveller’s cheques, register cheques and money orders held for sale to the
7. Securities means all negotiable and non-negotiable instruments or contracts representing either money or property and includes revenue
and other stamps in current use, tokens and tickets, but does not include Money.
8. Subsidiary Company(ies) means a company as defined in the Companies Act 61 of 1973 section 1 (3) or any amendment or reenactment
9. Tested means a method of authenticating the contents of a communication by affixing thereto a valid test key which has been exchanged
between the Insured and a Financial Institution for the purpose of protecting the integrity of the communication in the ordinary course of
business.
10. Theft means the intentional and unlawful taking of Insured property to the deprivation of the Insured.
11. Transfer Account means an account, maintained by the Insured at a Financial Institution, from which the Insured or the Insured’s authorised
representatives may cause the transfer, payment or delivery of funds (a) by means of electronic, telegraphic, cable, teletype, Tested telex,
Tested facsimile or telephone instructions (communicated directly or through a cash management service or funds transfer system), or (b)
by means of written instructions, establishing the conditions under which such transfers are to be initiated by such Financial Institution
through an electronic funds transfer system.
12. Amount Insured means the Amount(s) reflected on The Schedule against Cover A, Cover B or Cover A and B and the Annual Aggregate
the Insured maintains a Transfer Account.
public.
thereof.
Amount.
Fidelity - Page 5 of 5 - Section 12
59
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
GOODS IN TRANSIT - SECTION 13
Defined events
Loss of or damage to the whole or part of the property described in the schedule, owned by the insured or for which they are responsible, in
the course of transit by the means of conveyance or other means incidental thereto and caused by an accident or misfortune not otherwise
excluded
Provided that:
(i) the insured shall be responsible for the first amount payable stated in the schedule in respect of each and every defined event except a
claim resulting from fire, lightning or explosion
(ii) the liability of the company for all loss or damage arising from any one defined event shall not exceed the limit of indemnity stated in the
schedule.
Memoranda
1. Transit shall be deemed to commence from the time of moving the property described in the schedule at the consignor’s premises
(including carrying to any conveyance and loading thereon), continue with transportation to the consignee (including temporary storage not
exceeding 96 hours in the course of the journey) and end when off-loading and delivered at any building or place of storage at the
consignee’s premises.
2. If any consignee shall refuse to accept property consigned, transit shall be deemed to continue and the insurance in respect of such
property shall continue in force until the property is delivered at the premises of the consignor by any means of conveyance, provided that
the insured shall take all reasonable steps to ensure that the property is returned as soon as is reasonably possible.
3. Where the means of conveyance is by specified vehicle, the insurance under this section shall apply to property on any vehicle temporarily
used in place thereof while a specified vehicle is undergoing repair or servicing, which replacement vehicle is not the property of the insured
or leased or hired by them under a lease or suspensive sale agreement.
4. In the event of breakdown of the means of conveyance during transit or if, for any reason beyond the insured’s control, the property is
endangered, nothing contained herein shall debar the utilisation of any other form of transport to assist completion of the transit and the
insurance afforded shall not be affected thereby.
Debris removal extension (if stated in the schedule to be included)
The insurance under this section includes costs necessarily incurred by the insured in respect of the clearing up and removal of debris following
damage to the means of conveyance or to the property thereon, subject to a limit of R50, 000 or the limit stated in the schedule, whichever is the
greater, in respect of any one defined event.
Restricted cover
Fire, explosion, collision, derailment and overturning limitation (if stated in the schedule to be included)
The insurance under this section is limited to loss or damage resulting from fire or explosion or collision or the overturning or derailment of the means
of conveyance described in the schedule.
Specific exceptions
The company shall not be liable for
1. loss or damage resulting from or caused by
a) theft from any unattended vehicle in the custody or control of the insured or any principal, partner, director or employee of the
insured unless the property is contained in a completely closed and securely locked vehicle or the vehicle itself is housed in a
securely locked building and entry to or exit from such locked vehicle or building is accompanied by forcible and violent entry to or
exit from.
b) inherent vice or defect, vermin, insects, damp, mildew or rust;
c) the dishonesty of any principal, partner, director or employee of the insured whether acting alone or in collusion with others;
d) detention, confiscation or requisition by customs or other officials or authorities;
e) or arising whilst in transit by sea or inland transit incidental thereto;
f) breakdown of refrigeration equipment;
2. wear and tear or gradual deterioration (including the gradual action of light or climatic or atmospheric conditions) unless following an
accident or misfortune not otherwise excluded;
3. mechanical, electronic or electrical breakdown, failure, breakage or derangement of the insured property unless following an accident or
misfortune not otherwise excluded;
4. loss of or damage to
a)
cash, bank and currency notes, coins, bonds, coupons, stamps, negotiable instruments, title deeds, manuscripts or securities of
any kind;
property outside the Republic of South Africa, Namibia, Botswana, Lesotho, Swaziland, Zimbabwe and Malawi;
b) c) 5. property otherwise insured or which would, but for the existence of this section, be insured by any other insurance except in respect
of any excess beyond the amount which would have been payable under such other insurance, had the insurance under this section
not been effected;
consequential loss of any kind, delay, loss of market, depreciation or changes brought about by natural causes.
Goods in Transit - Page 1 of 2 - Section 13
61
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
GOODS IN TRANSIT - SECTION 13
Specific Extensions
1. Fire extinguishing charges extension
If the property described in the schedule is lost or damaged by fire whilst in course of a transit insured by this section the company will in
addition to indemnifying the insured for such loss or damage pay for the cost of extinguishing or attempting to extinguish such fire provided
that the maximum amount payable under this extension shall not exceed the limit of indemnity shown in the schedule opposite this clause
plus (if applicable) the increased Fire Extinguishing charges extension limit.
2. Riot and strike extension (if stated in the schedule to be included)
Subject otherwise to the terms, conditions, exclusions, exceptions and warranties contained therein, this section is extended to cover loss
or damage directly occasioned by or through or in consequence of:
(i) (ii)
civil commotion, labour disturbances, riot, strike or lockout;
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) loss or damage occurring in the Republic of South Africa and Namibia;
b) consequential or indirect loss or damage of any kind or description whatsoever, other than loss of rent if specifically
insured;
loss or damage from total or partial cessation of work, or the retarding or interruption or cessation of any process or operation;
c) d) loss or damage occasioned by permanent or temporary dispossession resulting from confiscation, commandeering or
requisition by any lawfully constituted authority;
e) 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 provisos (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.
Goods in Transit - Page 2 of 2 - Section 13
62
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
PUBLIC LIABILITY (CLAIMS MADE BASIS) - SECTION 14
Defined events
Damages which the insured shall become legally liable to pay consequent upon death of or injury or damage herein defined occurring in the course
of or in connection with the business within the territorial limits and commencing on or after the retroactive date stated in the schedule and which
results in a claim or claims first being made against the Insured in writing during the period of insurance.
Limits of indemnity
The liability of the Company under this policy whether payable to one claimant or any number of claimants in respect of or arising from all
occurrences of a series consequent upon or attributable to one source or original cause shall not exceed the limit of indemnity stated in the schedule
Where in the schedule the limit is expressed in the aggregate, the Company’s liability shall not exceed the aggregated limit during any one period
of insurance.
The Company will, within the limit stated in the schedule pay legal costs recoverable from the Insured by any claimant and costs and expenses
incurred with the written consent of the Company (which consent shall not be unreasonably withheld) in respect of any occurrence to which this
policy applies.
Territorial limits
Anywhere in the world but not in connection with
(i) any business carried on by the insured at or from premises outside
(ii) any contract for the performance of work outside
or
the Republic of South Africa, Namibia, Botswana, Lesotho, Swaziland, Zimbabwe and Malawi.
Specific exceptions
The Company will not indemnify the Insured in respect of
1.
Employees
Liability consequent upon death or bodily injury to or illness of any person employed by the Insured under a contract of service or
apprenticeship and arising from and in the course of such employment by the Insured.
2. Stated Property
Damage to:
a)
b) 3. property belonging to or in the custody or control of the Insured;
that part of any property on which the Insured are or have been working if such damage results directly from such work. This
exception shall only apply to that property actually giving rise to damage.
Injury or Damage
Liability consequent upon Injury or Damage caused by or through or in connection with:
Errors and Omissions
a) any advice or treatment of a professional nature (other than first aid treatment) given or administered for a fee by or at the direction
of the Insured.
Mechanically Propelled Vehicles
b)
the ownership, possession or use by or on behalf of the Insured of any mechanically propelled vehicle (other than a pedal cycle or
lawnmower or any pedestrian controlled garden equipment) or trailer or of any aircraft, watercraft, locomotive or rolling stock, or
arising beyond the limits of any carriage-way or thoroughfare in connection with the loading or unloading of any of the aforesaid
conveyances if the Insured is entitled to indemnity under any other insurance in respect of liability consequent upon such loading
or unloading.
caused by or through or in connection with:
c) (i) the refuelling of aircraft;
(ii) the ownership, possession, maintenance, operation or use of any aircraft or airline;
(iii) the ownership, hire or leasing of any airport or airstrip;
Products/Defective Workmanship
d) the nature or condition of goods or products (including containers and labels) manufactured, constructed, altered, repaired,
serviced, handled, treated, sold or supplied and happening elsewhere than at premises occupied by the Insured.
4.
Vibration/Support
Damage (exceeding the sum of R15 000) caused by vibration or by the removal or weakening of or interference with support to or any
subsidence of any land, building or other structure.
5. Contractual
Liability assumed by agreement (other than under the Insured’s own standard conditions of contract) unless liability would have attached
to the Insured notwithstanding such agreement.
6. Pollution
a) Liability in respect of Injury, Damage directly or indirectly caused by seepage, pollution or contamination, provided always that this
exception shall not apply to liability in respect of injury or damage where such seepage, pollution or contamination is caused by a
sudden, unintended or unforeseen happening during the period of insurance;
Public Liability (Claims Made Basis) - Page 1 of 5 - Section 14
63
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
PUBLIC LIABILITY
(CLAIMS MADE BASIS) - SECTION 14
b) the cost or removing, nullifying or cleaning up seeping, polluting or contaminating substances unless the seepage, pollution or
contamination is caused by a sudden, unintended and unforeseen happening at an identifiable point in time during the period of
insurance.
7. Fines etc.
Fines, penalties, punitive, exemplary or vindictive damages.
8. First Amount Payable
The Insured shall be responsible for the first amount payable as stated in the schedule in respect of any one claim or number of claims
arising from all occurrences of a series consequent upon or attributable to any one source or original cause. The provisions of this clause
shall apply to claims arising from damage and shall apply to costs and expenses incurred by the Insured.
The limit of indemnity applies in excess of the first amount payable.
9. Deliberate Acts
Damage or Injury resulting from deliberate act or omission on the part of the Insured’s staff including directors, officers and management
10. Known Losses
Any claim arising from an occurrence known to the Insured
a) which is not reported to the Company in terms of general condition 7
b) prior to inception of this section
11. Watercraft
Liability arising out of the ownership, maintenance, operation, use, loading or unloading possession or use of watercraft by or on behalf of
the Insured or the operation of any harbour facilities.
12. Professional Indemnity
Professional activities being those activities normally undertaken in exchange for a fee by persons carrying on business in law, medicine,
accountancy, financial management and services, engineering, architecture, surveying, construction and project management or
supervision, shipping and forwarding, insurance brokers, stock broking, estate agency or property valuation.
13. Asbestos
Bodily Injury arising out of the manufacture of, mining of, use of, installation of, removal of, distribution of or exposure to asbestos, asbestos
products, asbestos fibres or asbestos dust;
(i) Any obligation of the Insured to indemnify any party because of damages arising out of such Bodily Injury or Property Damage as
a result of the manufacture of, mining of, use of, installation of, removal of, distribution of or exposure to asbestos, asbestos
products, asbestos fibres or asbestos dust; or
(ii) Any obligation to defend any proceedings initiated or third party damages claims against the Insured alleging Bodily Injury, Property
Damage and seeking damages, if such proceedings initiated or third party damages claims arises from Bodily Injury or Property
Damage as a result of the manufacture of, mining of, use of, sale of, installation of, removal of, distribution of or exposure to
asbestos, asbestos products, asbestos fibres or asbestos dust.
14. Aviation/Aircraft
Liability arising out of the ownership, hire purchase or leasing of any aircraft (or hovercraft) by or on behalf of the Insured, the activities of
the Insured or the Insured’s employees as pilot or crew member thereof and the operation or maintenance or any airport hanger or fuelling
facility.
Specific conditions
1. Claims
(A) In the event of the Insured having notified the Company during the period of insurance of a circumstance which may result in a
defined event (hereinafter referred to as a reported circumstance) any claim subsequently brought against the Insured in respect
of such reported circumstance shall be treated as if the defined event giving rise to such claim had occurred at the time of such
notification.
(B) Any claim first made in writing or proceedings initiated against the Insured as a result of an occurrence reported in terms of general
condition 7 shall be treated as if it had first been made against the Insured on the same day that the Insured reported the occurrence
to the Company.
In the event of cancellation or non-renewal of this policy
(C) (i) any claim resulting from an occurrence reported in terms of general condition 7 and first made in writing against the Insured
during the 48 months immediately following cancellation or non-removal shall be treated as having been made against the
Insured on the same day that the Insured reported the occurrence to the Company, if the claimant is a minor the period of
48 months will be extended until the expiry of 12 months after the claimant has attained majority.
Public Liability (Claims Made Basis) - Page 2 of 5 - Section 14
64
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
PUBLIC LIABILITY
(CLAIMS MADE BASIS) - SECTION 14
(ii) the Insured may report an occurrence in terms of general condition 7 to the Company for up to 15 days after cancellation or
non-renewal provided:
a) b) such occurrence commenced during the period of insurance;
any subsequent claim first made in writing or proceedings initiated as a result of the same occurrence shall be treated
as if it had first been made on the last day preceding expiry of this insurance and is subject to the 48 months period
specified in specific conditions 1 (C) (i) above.
(D) any series of claims made against the Insured or proceedings initiated against the Insured by one or more than one claimant during
any period of insurance consequent upon the same occurrence shall be treated as if they had all been made against the Insured:
(i) on the date that the occurrence was reported to the Company in terms of general condition 7;
or
(ii) if the Insured was not aware of any occurrence, which could have given rise to a claim or the initiation of proceedings, on the
date that the first claim of the series was first made in writing against the Insured.
Definitions
1. Bodily Injury
means death, injury, sickness or disease or death sustained by a person resulting from such injury, sickness or disease and shall include
mental injury, mental anguish and shock.
2. Personal Injury
includes bodily injury, false arrest, invasion of the right of privacy, detention, false imprisonment, false eviction, discrimination, libel, slander
or defamation of character.
3. Property Damage
means physical damage to, loss of use or destruction of tangible property.
Extensions
1. Additional Insured
Provided that the aggregate liability of the Company is not increased beyond the limits of indemnity stated in the schedule, the Company
will, at the request of the Insured, also indemnify, as though a separate policy had been issued to each:
a) in the event of the death of the Insured, any personal representative of the Insured in respect of liability incurred by the Insured;
b) any partner in or of or any director, member or employee of the Insured (if the Insured so requests) against any claim for which the
Insured is entitled to indemnity under this insurance;
c) to the extent required by the conditions of any contract (and notwithstanding Specific exception 5), and in connection with any
liability arising from the performance of the contract, any employer, agent or sub-contractor named in a contract entered into by the
Insured for the purposes of the business;
d)
in respect of the activities of any social or sports club, security service, welfare organisation, first aid. fire or ambulance service, canteen or
the like:
(i) any officer or member thereof;
(ii) any visiting sports team or member thereof.
For the purposes of this extension, the Company waives all rights of subrogation or action which they may have or acquire against any of
the above, and each party to whom the indemnity hereunder applies shall observe, fulfil and be subject to the terms, exceptions and
conditions (both general and specific) of this insurance in so far as they can apply.
2.
Extended Reporting Option
At the option of the Insured and subject to the payment of any additional premium required by the Company and subject to all the terms,
exclusions and conditions of this policy, the Company agrees to extend the period during which the Insured may report an occurrence in
terms of general condition 7 for a period to be agreed but in no circumstance 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 policy;
b) this option must be exercised by the named Insured within 30 days of expiry of this insurance;
c) once exercised the option may not be cancelled by either the named Insured or the Company;
d) the named Insured has not obtained insurance equal in scope and cover to this policy as expiring;
e) the Company shall only be liable for an occurrence which commenced after the retroactive date stated in the declaration of this
policy but prior to the date of expiry of this insurance;
f) claims first made against the Insured or proceedings initiated against the Insured or any occurrence reported during the extended
reporting period shall not have the effect of increasing the liability of the Company as at the last day preceding expiry of this
Insurance;
g) any claim made or proceedings initiated against the Insured, following an occurrence reported during the extended reporting period,
and which is first made against the Insured in writing more than 48 months after the last day preceding expiry of this insurance, shall
not be subject to indemnification by this condition. If the claimant is a minor the period of 48 months is extended until the expiry of
12 months after the claimant has attained majority.
Public Liability (Claims Made Basis) - Page 3 of 5 - Section 14
65
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
PUBLIC LIABILITY
(CLAIMS MADE BASIS) - SECTION 14
3.
Cross Liabilities
It is specifically noted that for the purposes of this policy each of the parties comprising the Insured shall be considered as a separate legal
entity and the word “Insured” shall apply to each party as if a separate policy had been issued to each.
(Nothing contained in this Clause shall operate to increase the Limits of Indemnity as provided herein).
4. Tool of Trade
Specific exception 3 (b) shall not apply to the operation as a tool or for the purposes of being operated as a tool of any vehicle or plant
forming part of such vehicle or attached thereto, provided that the Company shall not be liable hereunder in respect of so much of any
liability as falls within the scope of any compulsory third party insurance legislation, notwithstanding that no such insurance is in force or
has been effected, nor shall the Company be liable where any other form of motor insurance has been effected by the Insured covering
the same liability.
5. Employees’ and Visitors’ Property
Specific exception 2 (a) shall not apply to property belonging to any partner in or of or any director, member or employee of the Insured or
ny visitor to the Insured’s premises.
6.
Liability by agreement
Notwithstanding the provisions of specific exceptions 2(a), 3(b) and 5, this section extends to indemnify the insured
(a) against liability assumed by the insured under any contract entered into with or indemnity given to Transnet, government or
quasi-government departments, provincial administrations, municipalities and/or similar bodies covering the use of railway sidings
or in respect of cartage (hazardous premises) agreements and/or agreements of a similar nature;
against liability arising from loss of or damage to property belonging to Transnet while in the insured’s custody or control;
(b) (c) in respect of liability caused by or through or in connection with any vehicle, trailer, locomotive or rolling stock belonging to Transnet
while being used by or on behalf of the insured at any railway siding.
7. Unattached Trailers
Specific exception 3 (b) as far as it relates to trailers, shall not apply in respect of any trailer not attached to and not having become
unintentionally detached from any mechanically propelled vehicle, provided that the Company shall not be liable hereunder in respect of
such much of any liability:
(i) (ii) which is insured by or would but for the existence of this policy be insured by any other policy or policies effected by the Insured;
as falls within the scope of any third party insurance legislation notwithstanding that no such insurance is in force or has been
effected.
8. Emergency Medical Expenses
The Company will indemnify the Insured for all reasonable expenses incurred by the Insured for such immediate medical treatment as may
be necessary at the time of an accident causing injury to any person who may be the subject of a claim for indemnity by the Insured in terms
of this policy.
9. Car parks
Notwithstanding the provisions of specific exception 2 (a) and 3 (b), the Company will indemnify the Insured in respect of liability as herein
provided arising from damage to vehicles and their contents and accessories, the property of tenants, customers, visitors, directors,
partners, members or employees of the Insured using parking facilities provided by the Insured.
10. Tenant’s Liability
Specific exceptions 2 (a), 3 (b) and 5 of this section shall not apply to premises hired, leased, borrowed or rented by the Insured.
11. Products liability / Defective Workmanship (if stated in the schedule to be included)
Defined events
Notwithstanding anything to the contrary contained in specific exceptions 3 (d), the Company will indemnify the Insured in respect of Injury
or Damage occurring during the period of insurance and happening anywhere within the territorial limits elsewhere than at premises
occupied by the Insured and caused by the nature or condition of any goods or products (including containers and labels) manufactured,
constructed, altered, repaired, serviced, handled, treated, sold or supplied by the Insured in connection with the business.
Specific exceptions 2 (b), 3 (b) and 5 do not apply to this extension.
Specific additional exceptions (applicable to products liability extension)
This extension does not cover liability:
(i) for the cost of repair, alterations, recall or replacement of the goods or products (including containers and labels) causing injury or
damage;
(ii) for the cost of demolition, breaking out, dismantling, delivery, rebuilding, supply and installation of the goods or products (including
containers and labels) and any other property essential to such repair, alteration or replacement unless physically damaged by the
goods or products;
(iii) arising from inefficacy or failure to conform to specification, unless such inefficacy or failure is due to negligence in the following of
such specification;
arising from goods or products intended to be installed and installed in, or intended to form part of and forming part of an aircraft.
(iv) (v) in respect of injury or damage happening in the United States of America or Canada caused by or through or in connection with
any goods or products sold or supplied by or to the order of the insured, if such goods or products have, to the insured’s knowledge,
been exported to the United States of America or Canada by or on behalf of the insured.
Public Liability (Claims Made Basis) - Page 4 of 5 - Section 14
66
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
PUBLIC LIABILITY
(CLAIMS MADE BASIS) - SECTION 14
12. Legal Defence Costs (if stated in the schedule to be included)
The Company will in addition indemnify the Insured and if the Insured so requests, any employee or partner of or director or member of the
Insured against costs and expenses not exceeding the amount stated in the schedule incurred by such employee or partner or director or
member with the consent of the Company (which consent shall not be unreasonably withheld) in the defence of any criminal action brought
against such person in the course of his occupation with the Insured or for representation at any enquiry, inquest or hearing arising from
and alleged contravention of the statutes as herein referred to, during the period of insurance provided that:
(i) in the case of an appeal the Company shall not indemnify such person unless a senior counsel approved by the Company shall
advise that such appeal should succeed;
(ii) the Company shall not indemnify such person in respect of any fine or penalty imposed by any magistrate or judge nor any loss
consequent thereon;
(iii) such person shall, as though he or she were the Insured, observe, fulfil and be subject to the terms, exceptions and conditions of
this policy and this section thereof in so far as they can apply.
The Statutes
Occupational Health and Safety Act No. 85 of 1993 (as amended),
Mines and Works Act No. 27 of 1956 (as amended),
The Electricity Act No. 41 of 1987 (as amended),
and/or any other Act or Ordinance pertaining to the supply of electricity
as read in conjunction with the Criminal Procedures Act No. 51 of 1977 (as amended).
13. Wrongful Arrest and defamation (if stated in the schedule to be included)
The defined events are extended to include damages:
(i)
resulting from wrongful arrest (including assault in connection with such wrongful arrest);
(ii) in respect of defamation and/or injuria.
14. Movement of Motor Vehicles
Notwithstanding anything to the contrary contained in specific exceptions 2 (a) and 3 (b) and risks insured under the RAF (MMF) this Policy
is extended to include liability arising through or in connection with the moving of any motor vehicle trailer or caravan (not being the property
of the Insured) by any person being an employee or acting on the Insured’s behalf, provided that such movement of motor vehicles, trailers
or caravans is undertaken to facilitate the carrying on of the Insured’s business.
Public Liability (Claims Made Basis) - Page 5 of 5 - Section 14
67
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
PUBLIC LIABILITY
(OCCURRENCE BASIS) - SECTION 15
Defined events
Damage which the insured shall become legally liable to pay consequent upon death of or injury or damage herein defined occurring within the
territorial limits during the period of insurance in connection with the business.
Limits of indemnity
The liability of the Company under this policy whether payable to one claimant or any number of claimants in respect of or arising from all occurrences of a series consequent upon or attributable to one source or original cause shall not exceed the limit of indemnity stated in the schedule.
Where in the schedule the limit is expressed in the aggregate, the Company’s liability shall not exceed the aggregated limit during any one period
of insurance.
The Company will, within the limit stated in the schedule, pay legal costs recoverable form the Insured by any claimant and costs and expenses
incurred with the written consent of the Company (which consent shall not be unreasonably withheld) in respect of any occurrence to which this
policy applies.
Territorial limits
Anywhere in the world but not in connection with
(i) or
(ii) any business carried on by the insured at or from premises outside
any contract for the performance of work outside
the Republic of South Africa, Namibia, Botswana, Lesotho, Swaziland, Zimbabwe and Malawi.
Specific exceptions
The company will not indemnify the Insured in respect of
1. Employees
Liability consequent upon death of or bodily injury to or illness of any person employed by the Insured under a contract of service or
apprenticeship and arising from and in the course of such employment by the Insured.
2. Stated Property
Damage to:
a) b) 3.
property belonging to or in the custody or control the Insured;
that part of any property on which the Insured are or have been working if such damage results directly from such work. This
exception shall only apply to that property actually giving rise to damage.
Injury or Damage
Liability consequent upon Injury or Damage caused by or through or in connection with:
Errors and Omissions
a) any advice or treatment of a professional nature (other than first aid treatment) given or administered for a fee by or at the direction of
the Insured.
Mechanically Propelled Vehicles
b) the ownership, possession or use by or on behalf of the Insured of any mechanically propelled vehicle (other than a pedal cycle or
lawnmower or any pedestrian controlled garden equipment) or trailer or of any aircraft, watercraft, locomotive or rolling stock, or
arising beyond the limits of any carriage-way or thoroughfare in connection with the loading or unloading of any of the aforesaid
conveyances if the Insured is entitled to indemnity under any other insurance in respect of liability consequent upon such loading
or unloading.
caused by or through or in connection with:
c) (i) the refuelling of aircraft;
(ii) the ownership, possession, maintenance, operation or use of aircraft or airline;
(iii) the ownership, hire or leasing of any airport or airstrip.
Products/Defective Workmanship
d) the nature or condition of goods or products (including containers and labels) manufactured, constructed, altered, repaired, serviced,
handled, treated, sold or supplied and happening elsewhere than at premises occupied by the Insured.
4. Vibration/support
Damage (exceeding the sum of R15 000) caused by vibration or by the removal or weakening of or interference with support to or any
subsidence of any land, building or other structure.
5. Contractual
Liability assumed by agreement (other than under the Insured’s own standard conditions of contract) unless liability would have attached
to the Insured notwithstanding such agreement.
6. Pollution
a) Liability in respect of Injury or Damage directly (or indirectly) caused by seepage, pollution or contamination, provided always that this
exception shall not apply to liability in respect of injury or damage where such seepage, pollution or contamination is caused by a
sudden, unintended or unforeseen happening during the period of insurance;
b) the cost of removing, nullifying or cleaning up seeping, polluting or contaminating substances unless the seepage, pollution or
contamination is caused by a sudden, unintended and unforeseen happening during the period of insurance.
Public Liability (Occurrence Basis) - Page 1 of 4 - Section 15
69
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
PUBLIC LIABILITY
(OCCURRENCE BASIS) - SECTION 15
7. Fines etc.
Fines, penalties, punitive, exemplary or vindictive damages
8. First Amount Payable
The Insured shall be responsible for the first amount payable as stated in the schedule in respect of any one claim or number of claims
arising from all occurrences of a series consequent upon or attributable to any one source or original cause. The provisions of this clause
shall apply to claims arising from damage and shall apply to costs and expenses incurred by the Insured.
9. Deliberate Acts
Damage or Injury resulting from deliberate act or omission on of the part of the Insured’s staff including directors, officers and management.
10. Watercraft
Liability arising out of the ownership, maintenance, operation, use, loading or unloading possession or use of watercraft by or on behalf of
the Insured or the operation of any harbour facilities.
11. Professional Indemnity
Professional activities being those activities normally undertaken in exchange for a fee by persons carrying on business in law,
medicine, accountancy, financial management and services, engineering, architecture, surveying, construction and project management or
supervision, shipping and forwarding, insurance brokers, stockbroking, estate agency or property valuation.
12. Asbestos
Bodily Injury arising out of the manufacture of, mining of, use of, sale of, installation of, removal of, distribution of or exposure to asbestos,
asbestos products, asbestos fibres or asbestos dust;
(i) Any obligation of the Insured to indemnify any party because of damages arising out of such Bodily Injury or Property Damage as
a result of the manufacture of, mining, of, use of, sale of, installation of, removal of, distribution of or exposure to asbestos, asbestos
products, asbestos fibres or asbestos dust; or
(ii) Any obligation to defend any proceedings initiated or third party damages claims, against the Insured alleging Bodily Injury or
Property Damage and seeking damages, if such proceedings initiated or third party damages claims arises form Bodily Injury, or
Property Damage as a result of the manufacture of, mining of, use of, sale of, installation of, removal of, distribution of or exposure
to asbestos, asbestos products, asbestos fibres or asbestos dust.
13. Aviation/Aircraft
Liability arising out of the ownership, hire purchase or leasing of any aircraft (or hovercraft) by or on behalf of the Insured, the activities of
the Insured or the Insured’s employees as pilot or crew member thereof and the operation or maintenance of any airport hanger or fuelling
facility.
Specific conditions
1. Claims
(A) In the event of the Insured having notified the Company during the period of insurance of a circumstance which may result in a
defined event (hereinafter referred to as a reported circumstance) any claim subsequently brought against the Insured in respect
of such reported circumstance shall be treated as if the defined event giving rise to such claim had occurred at the time of such
notification.
Definitions
1. Bodily Injury
means death, injury, sickness or disease or death sustained by a person resulting from such injury, sickness or disease and shall include
mental injury, mental anguish and shock.
2. Personal Injury
includes bodily injury, false arrest, invasion of the right of privacy, detention, false imprisonment, false eviction, discrimination, libel, slander
or defamation of character.
3. Property Damage
means physical damage to, loss of use or destruction of tangible property.
Extensions
1. Additional Insured
Provided that the aggregate liability of the Company is not increased beyond the limits of indemnity stated in the schedule, the Company
will, at the request of the Insured, also indemnify, as though a separate policy had been issued to each:
a) in the event of the death of the Insured, any personal representative of the Insured in respect of liability incurred by the Insured;
b) any partner in or of or any director, member or employee of the Insured (if the Insured so requests) against any claim for which the
Insured is entitled to indemnity under this insurance;
c) to the extent required by the conditions of any contract (and notwithstanding Specific exception 5), and in connection with any
liability arising from the performance of the contract, any employer, agent or sub-contractor named in any contract entered into by
the Insured for the purposes of the business;
Public Liability (Occurrence Basis) - Page 2 of 4 - Section 15
70
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
PUBLIC LIABILITY
(OCCURRENCE BASIS) - SECTION 15
d)
in respect of the activities of any social or sports club, security service, welfare organisation, first aid, fire or ambulance
service, canteen or the like:
(i) any officer or member thereof;
(ii) any visiting sports team or member thereof.
For the purposes of this extension, the Company waives all rights of subrogation or action which they may have or acquire against any of the
above, and each party to whom the indemnity hereunder applies shall observe, fulfil and be subject to the terms, exceptions and
conditions (both general and specific) of this insurance in so far as they can apply.
2. Cross Liabilities
It is specifically noted that for the purposes of this policy each of the parties comprising the Insured shall be considered as a separate legal
entity and the word “Insured” shall apply to each part as if a separate policy had been issued to each.
(Nothing contained in this Clause shall operate to increase the Limits of Indemnity as provided herein).
3. Tool of Trade
Specific exception 3 (b) shall not apply to the operation as a tool or for the purposes of being operated as a tool of any vehicle or plant
forming part of such vehicle or attached thereto, provided that the Company shall not be liable hereunder in respect of so much of any
liability as falls within the scope of any compulsory third party insurance legislation, notwithstanding that no such insurance is in force or
has been effected, nor shall the Company be liable where any other form of motor insurance has been effected by the Insured covering
the same liability.
4. Employees’ and Visitors’ Property
Specific exception 2 (a) shall not apply to property belonging to any partner in or of or any director, member or employee of the Insured
or any visitor to the Insured’s premises.
5. Liability by agreement
Notwithstanding the provisions of specific exceptions 2(a), 3(b) and 5, this section extends to indemnify the insured
(a) against liability assumed by the insured under any contract entered into with or indemnity given to Transnet, government or
quasi-government departments, provincial administrations, municipalities and/or similar bodies covering the use of railway sidings
or in respect of cartage (hazardous premises) agreements and/or agreements of a similar nature;
against liability arising from loss of or damage to property belonging to Transnet while in the insured’s custody or control;
(b)
(c) in respect of liability caused by or through or in connection with any vehicle, trailer, locomotive or rolling stock belonging to Transnet
while being used by or on behalf of the insured at any railway siding.
6. Unattached Trailers
Specific exceptions 3 (b) as far as it relates to trailers, shall not apply in respect of any trailer not attached to and not having become
unintentionally detached from any mechanically propelled vehicle, provided that the Company shall not be liable hereunder in respect of
such much of any liability.
(i) (ii) which is insured by or would but for the existence of this policy be insured by any other policy or policies effected by the Insured;
as falls within the scope of any third party insurance legislation notwithstanding that no such insurance is in force or has been
effected.
7. Emergency Medical Expenses
The Company will indemnify the Insured for all reasonable expenses incurred by the Insured for such immediate medical treatment as may
be necessary at the time of an accident causing injury to any person who may be the subject of a claim for indemnity by the Insured in
terms of this policy.
8. Car parks
Notwithstanding the provisions of specific exception 2 (a) and 3 (b), the Company will indemnify the Insured in respect of liability as herein
provided arising from damage to vehicles and their contents and accessories, the property of tenants, customers, visitors, directors,
partners, members or employees of the Insured using parking facilities provided by the Insured.
9. Tenants’ Liability
Specific exceptions 2 (a), 3 (b) and 5 of this section shall not apply to premises hired, leased, borrowed or rented by the Insured.
10. Products liability/Defective Workmanship (if stated in the schedule to be included)
Defined events
Notwithstanding anything to the contrary contained in specific exceptions 3 (d), the company will indemnify the Insured in respect of Injury
or Damage occurring during the period of insurance and happening anywhere within the territorial limits elsewhere than at premises
occupied by the Insured and caused by the nature or condition of any goods or products (including containers and labels) manufactured,
constructed, altered, repaired serviced, handled, treated, sold or supplied by the Insured in connection with the business.
Specific exceptions 2 (b), 3 (b) and 5 do not apply to this extension.
Specific additional exceptions (applicable to products liability extension)
This extension does not cover liability:
(i)
for the cost of repair, alteration, recall or replacement of the goods or products (including containers and labels) causing injury or
damage:
(ii) for the cost of demolition, breaking out, dismantling, delivery, rebuilding, supply and installation of the goods or products (including
containers and labels) and any other property essential to such repair, alteration or replacement unless physically damaged by the
goods or products;
Public Liability (Occurrence Basis) - Page 3 of 4 - Section 15
71
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
PUBLIC LIABILITY
(OCCURENCE BASIS) - SECTION 15
(iii) arising from inefficacy or failure to conform to specification, unless such inefficacy or failure is due to negligence in the following of
such specification;
arising from goods or products intended to be installed and installed in, or intended to form part of and forming part of an aircraft.
(iv) (v) in respect of injury or damage happening in the United States of America or Canada caused by or through or in connection with any
goods or products sold or supplied by or to the order of the insured, if such goods or products have, to the insured’s knowledge,
been exported to the United States of America or Canada by or on behalf of the insured.
11. Legal Defence Costs (if stated in the schedule to be included)
The Company will in addition indemnify the Insured and if the Insured so requests, any employee or partner of or director or member of the
Insured against costs and expenses not exceeding the amount stated in the schedule incurred by such employee or partner or director or
member with the consent of the Company (which consent shall not be unreasonably withheld) in the defence of any criminal action brought
against such person in the course of his occupation with the Insured or for representation at any enquiry, inquest or hearing arising from
and alleged contravention of the statutes as herein defined, during the period of insurance provided that:
(i) in the case of an appeal the Company shall not indemnify such person unless a senior counsel approved by the Company shall
advise that such appeal should succeed;
(ii) the Company shall not indemnify such person in respect of any fine or penalty imposed by any magistrate or judge or any loss
consequent thereon;
(iii) such person shall, as though he or she were the Insured, observe, fulfil and be subject to the terms, exceptions and conditions of
this policy and this section thereof in so far as they can apply.
The Statutes
Occupational Health and Safety Act No. 85 of 1993 (as amended),
Mines and Works Act No. 27 of 1956 (as amended),
The Electricity Act No. 41 of 1987 (as amended)
and/or any other Act or Ordinance pertaining to the supply of electricity,
as read in conjunction with the Criminal Procedure Act No. 51 of 1977 (as amended)
12. Wrongful Arrest and defamation (if stated in the schedule to be included)
The defined events are extended to include damages:
(i) resulting from wrongful arrest (including assault in connection with such wrongful arrest);
(ii) in respect of defamation and/or injuria.
13. Movement of Motor Vehicles
Notwithstanding anything to the contrary contained in specific exceptions 2 (a) and 3 (b) and risks insured under the RAF (MMF) this policy
is extended to include liability arising through or in connection with the moving of any motor vehicle trailer or caravan (not being the property
of the Insured) by any person being an employee or acting on the Insured’s behalf, provided that such movement of motor vehicles, trailers
or caravans is undertaken to facilitate the carrying on of the Insured’s business
Public Liability (Occurrence Basis) - Page 4 of 4 - Section 15
72
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
EMPLOYER’S LIABILITY (CLAIMS MADE BASIS) - SECTION 16
Defined events
Death or bodily injury or illness of any person employed under a contract of service or apprenticeship with the Insured, which occurred in the course
of and in connection with such person’s employment by the Insured within the territorial limits and on or after the retroactive date shown in the
schedule, and which results in a claim or claims first being against the Insured in writing during the period of insurance.
The limits of indemnity
The amount payable, inclusive of any legal costs recoverable from the insured by a claimant or any number of claimants and all other costs and
expenses incurred with the company’s consent for any one event or series of events with one original cause or source, shall not exceed the limit of
indemnity stated in the schedule.
Territorial limits
Anywhere in the world but not in connection with
(i) any business carried on by the insured at or from premises outside
or
(ii) any contract for the performance of work outside the Republic of South Africa, Namibia, Botswana, Lesotho, Swaziland, Zimbabwe
and Malawi.
Specific exceptions
This section does not cover
1.
Contractual Liabilities
Liability assumed by the Insured under any contract, undertaking or agreement where such liability would not have attached to the Insured
in the absence of such contract, undertaking or agreement.
2. Fines, etc.
Fines, penalties, punitive exemplary or vindictive damages.
3. Gradual Impairment
Liability for disease, illness or impairment attributable to a gradually operating cause which cannot be identified as having arisen out of a
specific sudden and unforeseen event.
4. Any claim arising from an occurrence know to the Insured
(a) 5. Any claim (in the event of cancellation on non-renewal of this policy) not first made in writing against the Insured within 48 month period
(or extended period in respect of minors) as specified in specific conditions 1 C (I).
which is not reported to the Company in terms of general Condition 7 prior to inception of this section.
Specific conditions
1. Claims
(A) In the event of the Insured having notified the Company during the period of insurance of a circumstance which may result in a
defined event (hereinafter referred to as a reported circumstance) any claim subsequently brought against the Insured in respect
of such reported circumstance shall be treated as if the defined event giving rise to such claim had occurred at the time of such
notification.
(B) Any claim first made in writing or proceedings initiated against the Insured as a result of an occurrence reported in terms of general
condition 7 shall be treated as if it had first been made against the Insured on the same day that the Insured reported the occurrence
to the Company.
In the event of cancellation or non-renewal of this policy
(C) (i) any claim resulting from an occurrence reported in terms of general condition 7 and first made in writing against the Insured
during the 48 months immediately following cancellation or non-removal shall be treated as having been made against the
Insured on the same day that the Insured reported the occurrence to the Company, if the claimant is a minor the period of
48 months will be extended until the expiry of 12 months after the claimant has attained majority.
(ii)
the Insured may report an occurrence in terms of general condition 7 to the Company for up to 15 days after cancellation or
non-renewal provided:
a) b) such occurrence commenced during the period of insurance;
any subsequent claim first made in writing or proceedings initiated against as a result of the same occurrence shall be
treated as if it had first been made on the last day preceding expiry of this insurance and is subject to the 48 months
period specified in specific conditions 1 (C) (i) above.
(D) any series of claims made against the Insured or proceedings initiated against the Insured by one or more than one claimant during
any period of insurance consequent upon the same occurrence shall be treated as if they had all been made against the Insured:
(i) on the date that the occurrence was reported to the Company in terms of general conditions 7;
or
(ii) if the Insured was not aware of any occurrence which could have given rise to a claim or the initiation of proceedings, on the
date that the first claim of the series was first made in writing against the Insured.
Employer’s Liability (Claims Made Basis) - Page 1 of 2 - Section 16
73
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
EMPLOYER’S LIABILITY
(CLAIMS MADE BASIS) - SECTION 16
Specific extensions
1. 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 specific exception 1 above, indemnify the principal in like manner to the Insured
by 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 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 insurance in so far as they can apply;
c) the liability of the Company is not hereby increased.
2. Extended Reporting Option
At the option of the Insured and subject to the payment of any additional premium required by the Company and subject to all the terms,
exclusions and conditions of this policy, the Company agrees to extend the period during which the Insured may report an occurrence in
terms of general conditions 7 for a period to be agreed but in no circumstance 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 policy;
b) this option must be exercised by the named Insured within 30 days of expiry of this insurance;
c) once exercised the option may not be cancelled by either the named Insured or the Company;
d) the named Insured has not obtained insurance equal in scope and cover to this policy as expiring;
e) the Company shall only be liable for an occurrence which commenced after the retroactive date stated in the declaration of this policy
but prior to the date of expiry of this insurance;
f) claims first made against the Insured or proceedings initiated against the Insured or any occurrence reported during the extended
reporting period shall not have the effect of increasing the liability of the Company as at the last day preceding expiry of this insurance;
g) any claim made or proceedings initiated against the Insured, following an occurrence reported during the extended reporting period,
and which is first made against the Insured in writing more that 48 months after the last day preceding expiry of this insurance, shall
not be subject to indemnification by this condition. If the claimant is a minor the period of 48 months is extended until the expiry of
12 months after the claimant has attained majority.
3. Emergency Medical Expenses
The Company will indemnify the Insured for all reasonable expenses incurred by the Insured for such immediate medical treatment as may
be necessary at the time of an accident causing injury to any person who may be the subject of a claim for indemnity by the Insured in terms
of this section;
provided that this extension shall not apply to so much of such expenses as are recoverable under the Compensation for Occupational Injuries and
Diseases Act No 130 of 1993 (“COIDA”) or another policy of insurance effected by the Insured.
Employer’s Liability (Claims Made Basis) - Page 2 of 2 - Section 16
74
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
PRIVATE EDGE - SECTION 17
1.
INSURANCE COVERS
Insuring Clause 1 – Labour Practice Liability
The company will pay the loss of a policyholder arising from a claim first made against the policyholder by an employee during the policy
period and notified to the company during the policy period by reason of any labour practice violation.
Insuring Clause 2 – Trustee Liability
The company will pay the loss of a policyholder arising from a claim first made against the policyholder during the policy period and notified
to the company during the policy period by reason of any breach of trustee responsibility in connection with a fund.
Insuring Clause 3 – Insured Management Liability
(A) The company will pay the loss of a policyholder arising from a claim first made against the insured during the policy period and
notified to the company during the policy period by reason of any wrongful act.
(B) The company will pay the loss of a policyholder arising from any claim first made against an insured person during the policy period
and notified to the company during the policy period for any wrongful act in the insured person’s capacity as a director or officer of
the insured but only when and to the extent that the insured has in fact indemnified the insured person for such loss.
Insuring Clause 4 – Personal Management Liability
The company will pay the loss of an insured person arising from a claim first made against an insured person during the policy period and
notified to the company during the policy period by reason of any wrongful act in his or her capacity as a director or officer of the insured,
but only to the extent that the insured is legally permitted or required to indemnify the insured person for such loss.
Insuring Clause 5 – Crisis containment
The company shall indemnify the insured for any crisis loss arising from a crisis occurring during the policy period and notified to the
company during the policy period.
Cover under this insuring clause shall not be subject to a retention and the total of all payments shall not exceed R50, 000 in the aggregate
for the policy period . This sub-limit shall be part of and not in addition to the limit of liability.
2. DEFINITIONS
For the purposes of this section 17 only,
2.1 Annual premium means the annual premium level in effect immediately prior to the end of a policy period.
2.2 Breach of trustee responsibility means any wrongful act of a trustee in connection with a fund.
2.3 Claim means any demand made by a third party upon a policyholder for damages, however
conveyed, including any legal or arbitration process or any written demand for montary
compensation.
All claims arising out of the same set of facts or circumstances shall be deemed to be
one claim made in the policy period in which the claim is first made or deemed to be
made against the policyholder.
2.4 Continuity date(s) means the inception date specified in the Schedule which shall be the date from which
the insured has maintained uninterrupted cover with the company. No continuity date
applies to the cover contemplated by Insuring Clause 5,
2.5 Crisis means any one of the following unforeseen events which in the reasonable professional
opinion of the Chief Executive Officer of the insured (or equivalent thereof) has the
potential to cause imminent financial loss to the insured if left unmanaged:
a) the loss, other than as a result of expiry or failure to renew, of the insured’s
intellectual property rights previously acquired under law by the insured for a patent,
trademark or copyright;
b) the loss, as a result of a wrongful act, of a major customer or major contract of the
insured which customer or contract has been stated in the proposal form;
c) any act committed on the premises of the insured against employees or customers
of the insured that results in life threatening injury or physical injury or death, or
psychiatric injury from witnessing the physical injury or death of any person;
d) damage to any premises of the insured or other tangible property caused by oil spills, major fires, building collapse (other than natural events, such as without
limitation, earthquake, windstorm and other similar events;
e) the recall of a product of the insured due to its potential to cause property damage
or bodily injury to others which potential is caused by its production, preparation,
manufacture or packaging by the insured,
provided however that a crisis shall not include:
(i) any event that affects the industry in which the insured conducts its business
activities, as opposed to affecting primarily the insured itself; or
(ii) any event caused by or arising out of or resulting from or by, in whole or in
part, directly or indirectly, war (whether declared or not), any act of war, civil
war, invasion, insurrection, revolution, use of military power or usurpation of
government or military power; or
(iii) the intentional use of military force to intercept, prevent, or mitigate any known
or suspected acts of terrorism; or
Private Edge - Page 1 of 9 - Section 17
(iv) any act of terrorism.
75
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
PRIVATE EDGE - SECTION 17
2.6 Crisis loss means the reasonable and necessary fees and expense of a public relations firm
appointed by the insured with the Company’s prior written consent to perform crisis
management services for the insured in minimising the effects of such crisis during the
30 day period following notification to the company.
2.7 Director or officer means any natural person who is or was a duly appointed director or officer of the
insured.
2.8 Discovery period
means the period of time, specified in Extension 4.3, immediately following the
termination of this policy during which written notice may be given to the company of any
claim first made against a policyholder during such period of time for any wrongful act or
breach of trustee responsibility committed prior to the end of the policy period otherwise
covered by this policy.
2.9 Employee means any natural person employed by the insured in the ordinary course of the
business of the insured and whom the insured compensates by way of salary or wages
and has the right to govern and direct the performance of that person’s duties. It shall
also mean a trustee of a fund while performing acts coming within the scope of the
regular duties of an employee.
Without limitation, employee does not include non-executive directors, consultants,
independent contractors, secondees or agents of the insured and their respective
employees (including the employees of labour-hire agencies).
2.10 Financial loss means a decrease greater than 40% of the annual gross revenue of the insured.
2.11 Fund means any provident, benefit, superannuation, pension or retirement fund, or any other
account, fund, scheme or plan intended to provide benefits, in whole or in part, to
employeesnof the insured at retirement or a particular age, or on the happening of a
particular event.
2.12 Gross revenue means the money paid or payable to the insured for goods sold and/or for services
rendered in the course of its business.
2.13
Inquiry means an official investigation, examination or inquiry into the affairs of the insured:
a) which is instigated by a person or institution which is legally empowered to conduct
the investigation, examination or inquiry; and
b) which the insured persons are legally compelled to attend; and
c) which involves the conduct of the insured persons in their capacity as a director or
officer.
Without limitation, inquiry does not include investigations, examinations or i
inquiries of a general nature which affect the insured’s industry as a whole.
2.14 Insured person means any director or officer of the insured.
Without limitation, insured person does not include any auditors, receivers, managers,
liquidators, administrators, trustees, mortgagees in possession or the like who are not
employed by the insured.
2.15 Labour practice claim means a claim in respect of a labour practice violation.
2.16 Labour practice violation means any actual or alleged:
a) unfair, harsh, unreasonable, unjust or unlawful dismissal or termination of
employment, either actual or constructive, for which a statutory remedy exists or
allegedly exists;
b) misleading or deceptive representation or advertising relating to employment;
c) failure to employ or promote, unfair deprivation of a career opportunity, unfair
discipline, failure to grant tenure or negligent employee evaluation;
d) sexual harassment in the workplace icluding unwelcome sexual advances,
requests for sexual favours or other verbal or physical conduct of a sexual nature
that is made a condition of employment or used as a basis for an employment
decision or creates a hostile work environment that interferes with performance;
e) workplace harassment of any kind including the alleged creation or co
ndonation of an harassing workplace environment;
f) (i) denial of natural justice;
(ii) unlawful interference with privacy;
(iii) defamation;
(iv) wrongful infliction of emotional distress, mental anguish or humiliation;
(v) discrimination of any unlawful basis,
committed or allegedly committed against an employee in respect of that employee’s
past, present or prospective employment with the insured.
Private Edge - Page 2 of 9 - Section 17
employment-related:
76
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
PRIVATE EDGE - SECTION 17
2.17 Labour-related benefits means:
a) non-monetary benefits including but not limited to the allocation of a company car,
travel allowance, mobile or landline telephone, medical or life insurance expenses,
education and training allowances, and equipment allowances;
b) stock, shares, stock options, share options or any entitlement or right under any
equity plan of any description;
c) participation in any stock, share, stock option or share option plan, or participation
in any equity plan of any description;
d) severance or redundancy payments or entitlements;
e) any benefit, payment or entitlement of any kind in respect of paid or unpaid leave;
f) bonus or incentive payments, or any entitlement or right under a bonus or incentive
plan (which, for the avoidance of doubt, does not include any payments,
entitlement or right under a commission scheme);
g) payments or contributions in respect of any fund.
Legal costs means any reasonable fees, costs and expenses for professional legal services incurred
2.18 by or on behalf of a policyholder with the prior written consent of the company (but does
not include wages, salaries or other remuneration of the insured persons or employees)
in the investigation, defence, settlement or appeal of any claim.
2.19 Limit of liability means the amount specified as the limit in the Schedule.
2.20 Loss means, for the purpose of Insuring Clauses 1, 2 and 3;
a) damages or judgements, and/or
b) legal costs awarded against any policyholder, and/or
c) d) settlements negotiated with the company’s prior written consent,
legal costs, and/or
In respect of any claim covered under this policy. Without limitation, loss does not
include any liability for fines, penalties, punitive, aggravated or exemplary
damages (unless awarded for defamation), non-compensatory damages, taxes
or any amount for which the policyholder is not legally liable or matters which are
uninsurable under the law by which this policy is construed.
In respect of Insuring Clause 1, loss shall not include:
(i) front pay, future loss, future damages or future economic relief where the
policyholder is ordered by the relevant court or tribunal to reinstate the claimant as
an employee but refuses or fails to do so for whatever reason; or
(ii) any liability for labour-related benefits; or
(iii) any liability or costs incurred by a policyholder to modify any building or property in
order to make the building or property more accessible or accommodating to a
disabled person; or
(iv) any liability or costs incurred by the policyholder in connection with any
educational, sensitivity or other program, policy or seminar relating to any labour
practice violation.
Loss incurred in respect of more than one claim but resulting from a single
wrongful act shall constitute a single loss.
Not-for-profit entity 2.21 means an entity registered as such under the applicable legislation or any organisation
existing for any educational, research, promotional, training or similar non-profit making
purpose or similar entity organised under the laws of any other jurisdiction or a trade
association which for the purposes of this policy shall mean a body of persons, whether
incorporated or not, which is formed for the purpose of furthering the trade interests of its
members, or of persons represented by its members.
Outside director 2.22 means an insured person who, at the written request of the insured, was or is validly
appointed to the position of director or alternate director of an outside entity for the
purpose of representing the interests of the insured.
Without limitation, outside director does not include insured persons who hold positions
as directors or alternate directors in entities unrelated to the insured for personal
purposes.
Outside directorship will have a corresponding meaning.
Outside entity 2.23 means any not-for-profit entity, or any other corporation, partnership, joint venture or
other organisation which has been listed by endorsement to this policy.
2.24 Policyholder Policy period 2.25 Private Edge - Page 3 of 9 - Section 17
means an insured person and / or the insured and / or subsidiaries.
means the period of time from the inception date to the expiry date, as specified in the
Schedule, and excludes any discovery period.
77
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
PRIVATE EDGE - SECTION 17
2.26 Pollutant
2.27 Retention means, but is not limited to, any solid, liquid, biological, radiological gaseous or thermal
irritant or contaminant whether occurring naturally or otherwise, including asbestos,
smoke, dust, vapour, soot, fibres, mould, spores, fungus, germs, fumes, acids, alkalis,
nuclear or radioactive material of any sort, chemicals and waste. Waste includes but is
not limited to material to be recycled, reconditioned or reclaimed.
means the amount specified as retention in the Schedule.
Single wrongful act 2.28 means a wrongful act or any causally connected wrongful acts affecting one, or more
than one, person or legal entity.
Subsidiary 2.29 means an entity in which the insured, either directly or indirectly through one or more of
its subsidiaries, on or before the inception date specified in the Schedule.
(i) controls or controlled the composition of the board of directors; or
(ii) controls or controlled more than half of the voting power; or
(iii) holds or held more than half of the issued share capital.
Cover for any claim against any of the directors or officers in their capacity as a director
or officer of a subsidiary applies only for wrongful acts committed or allegedly committed
while such entity is or was a subsidiary of the insured.
Terrorism 2.30 means the use or threatened use of force or violence against person or property, or
commission of an act dangerous to human life or property, or commission of an act that
interferes with or disrupts an electronic or communication system, undertaken by any
person or group of persons, whether or not acting on behalf of or in connection with any
organisation, government, power, authority or military force, when the effect is to
intimidate or coerce or harm a government, the civilian population or any segment
thereof, or to disrupt any segment of the economy.
Terrorism shall also include any act which is verified or recognised by the South African
Government as an act of terrorism.
2.31 Transaction means any one of the following events:
(i) the insured consolidates with or merges into or sells all or substantially all of its
assets to any other person or entity or group of persons and/or entities acting in
concert; or
(ii) the insured becomes a subsidiary of another entity or becomes controlled by
another entity; or
(iii) the insolvency, liquidation, receivership, bankruptcy or administration of a
policyholder
– whether provisional or final and whether voluntary or involuntary.
Trustee 2.32 means any natural person who is a duly appointed past, present or future trustee of a
fund.
Wrongful act 2.33 means any actual or alleged act, error, omission, misstatement, misleading statement,
misleading conduct, negligence or breach of duty made, committed, or attempted by any
policyholder (including a labour practice violation), which is wrongful but which is not
intentionally wrongful.
3. EXCLUSIONS
The company shall not be liable to make any payment for loss in connection with any claim made against a policyholder or any payment
under an Extension:
3.1 arising out of, based upon, attributable to, or in any way connected with:
(i) the gaining in fact of any profit or advantage to which the policyholder was not legally entitled;
(ii) profits in fact made from the purchase or sale by the policyholder of securities of the insured;
(iii) any criminal, dishonest, fraudulent, wilful, intentional or malicious acts or omissions by a policyholder;
(iv) any knowing or wilful violation of any law or regulation by a policyholder where it is established by an admission, court
judgement or other adjudication that the subject conduct did in fact occur.
3.2 arising out of, based upon, attributable to, or in any way connected with any:
a) actual or alleged wrongful act or labour practice violation committed before the continuity date if, on or before that date, the
policyholder knew or ought reasonably to have foreseen that such wrongful act or labour practice violation would or could
lead to a claim; or
b) actual or alleged facts or circumstances of which notice was given or ought reasonably to have been given under any policy
in force prior to the continuity date; or
c) pending or prior litigation derived from the same or essentially the same facts as might be alleged in such prior or pending
litigation, as at the continuity date.
For the purpose of this exclusion, the term “litigation” shall include but not be limited to any civil or criminal proceeding as well
as any inquiry or arbitration.
Private Edge - Page 4 of 9 - Section 17
78
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
PRIVATE EDGE - SECTION 17
3.3
in connection with any claim made against an insured person which is brought by or on behalf of the insured; provided; however,
that this exclusion shall not apply to:
(i) (ii) legal costs;
any shareholder derivative action brought or maintained on behalf of the insured without the solicitation, assistance or
participation of any policyholder;
(iii) any claim brought or maintained by a liquidator, receiver or administrative receiver derivatively on behalf of the insured
without the solicitation, assistance or participation of any policyholder.
(iv) in respect of Insurance Clause 1, any claim by an employee for a labour practices violation.
arising out of, based upon, attributable to, or in any way involving, directly or indirectly;
3.4 a) b) the actual, alleged, imminent or threatened presence, discharge, dispersal, seepage, release or escape of pollutants, or
any direction or request to test for, monitor, clean up, remove, contain, treat, detoxify or neutralise pollutants, nuclear material
or nuclear waste.
3.5 arising out of, based upon or attributable to any act or omission in the policyholder’s capacity as a director or officer of any entity
other than the insured, or by reason of the policyholder’s status as a director, officer or employee of the other entity, other than as
provided in Extension 4.2.
3.6 for bodily injury, sickness, disease, death, psychiatric injury or emotional distress of any person, or damage to or destruction of any
tangible property, including loss of use thereof; provided, however, that any claim for psychiatric injury shall not be excluded with
respect to Insuring Clause 1.
3.7 arising out of, based upon or attributable to any actual or alleged breach of contract of employment or contractual liability of the
policyholder under any express contract or agreement; provided, however, that with respect to an employment practice claim, this
exclusion shall not apply to the extent the policyholder would have had such liability even in the absence of such contract or
agreement.
3.8 arising out of, based upon or attributable to any obligation pursuant to any workers’ compensation, disability benefits, redundancy
or unemployment benefits or compensation, unemployment insurance, retirement benefits, social security benefits or any similar
law or obligation whatsoever;
with respect to Insuring Clause 3 only:
3.9 (i) for any actual or alleged plagiarism, misappropriation, infringement or violation of copyright, patent, trademark, trade secret
or any other intellectual property rights;
(ii) for any actual or alleged violation or any law, whether statutory, regulatory or common law, with respect to any of the following
activities: anti-trust, business competition, unfair trade practices or unlawful interference in another’s business or contractual
relationships;
(iii) for rendering or failure to render any services or advices to a customer or client of the insured;
(iv) seeking fines or penalties or,
(v) non-monetary relief against the insured
3.10 directly or indirectly based upon, attributable to or in any way involving terrorism war, invasion, acts of foreign enemies, hostilities or warlike
operations (whether war be declared or not), civil war, rebellion, revolution, insurrection, civil commotion assuming the proportion of or
amounting to a popular uprising, martial law, riot, military or usurped power or confiscation or nationalisation or requisition of or damage to
any property by or under the valid or invalid order of any legitimate or illegitimate government, the act of any lawfully constituted authority;
or terrorism.
3.11 arising out of any legal action or litigation brought in a court with the USA or Canada or out of any legal action or litigation brought in a court
outside of the USA or Canada to enforce a judgement handed down in a court within the USA or Canada whether by way of reciprocal
agreement or otherwise. For the purpose of this exclusion USA or Canada shall mean the United States of America or the Dominion of
Canada and their territories and protectorates.
3.12 directly or indirectly arising out of, or in connection with:
a) any public or private issue of shares, preference shares (redeemable or otherwise), debentures of whatever kind, promissory notes
or any other form of negotiable or non-negotiable security for the raising of capital by equity, debit or any other means;
b) the issue of any prospectus or similar document or the making of any written or oral representation, in connection with (a) above.
3.13 brought by, at the instigation of, or on behalf of;
a) any past or present shareholder or stockholder who had or has direct or indirect ownership of or control over 15% or more of the
voting shares or rights of the insured, or
b) any past or present shareholder or stockholder who had or has direct or indirect ownership of or control over 15% or more of the
voting shares or rights of any outside entity to which an outside directorship applies.
3.14 arising out of, based upon, attributable to, or in any way connected with, the provision of or failure to perform professional services of any
kind or alleged breach of duty owed in a professional capacity. Provided, however, that this Exclusion shall not apply to coverage provided
under Insuring Clause 2.
3.15 for failure to fund a fund in accordance with the fund document or instrument or the failure to collect contributions owed to the fund.
Private Edge - Page 5 of 9 - Section 17
79
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
PRIVATE EDGE - SECTION 17
3.16
3.17 by a past, present or prospective director of the insured alleging a labour practice violation:
arising from any act or series of acts committed outside of South Africa or any of its territories.
a) where the director is not an employee;
b) where the director is making the claim in a capacity other than that of an employee;
c) to the extent that, where the director makes a claim partly in his or her capacity as an employee and partly in another capacity,
the loss does not arise out of, is not based upon, or is not attributable to, the director’s capacity as an employee.
3.18 arising out of, based upon, attributable to, or in any way connected with, directly or indirectly, the insolvency, liquidation,
receivership, bankruptcy or administration of the policyholder – whether provisional or final and whether voluntary or involuntary.
4.
EXTENSIONS
Subject to all provisions, terms, exclusions and conditions of this policy, cover is extended as outlined below. If one or more of the
extensions under this policy is deleted or replaced or not required by the insured, there shall be no reduction in the premium payable as
specified in the Schedule. The total of all payments made under these extensions shall be part of and not in addition to the limit of liability.
The extensions are also subject to the retention.
4.1 Representation at Inquiries
The company will pay on behalf of the insured persons all legal costs incurred by reason of the insured persons attending an inquiry
provided that the notice requiring the insured persons to attend the inquiry is first received by the insured persons during the policy
period and notice is given to the company during the policy period.
Outside Directorship Cover
4.2 The company will pay on behalf of the insured persons all loss which the insured persons are legally liable to pay by reason of any
claim first made against them individually or collectively during the policy period and notified to the company during the period for
a wrongful act in their capacity as an outside director, provided always that;
a) The cover provided under this Extension applies in excess of any indemnity provided to the insured person by the outside entity in
respect of any such claim.
b) The cover provided under this Extension applies in excess of the cover provided by any outside entity insurance policies including
those specified by endorsement to this policy in respect of any such claim, including any policies which are a renewal or
replacement of those policies.
c) The company is not liable to make any payment for loss in connection with any claim made against an outside director which is
made by the outside entity or by any directors or officers of the outside entity or by any shareholder of the outside entity holding
more than 15% of the voting share capital of the outside entity.
The restrictions in cover specified in (c) above do not apply to any claim made against an outside director:
(i) alleging a labour practice violation;
(ii) for contribution or indemnity by another director or officer of the outside entity, provided the claim results directly from another claim
which would be covered under this extension if it was made directly against the outside director;
(iii) made in the name of the outside entity by any legally authorised individual or entity, other than the outside entity itself, where the
claimant acts without any express or tacit consent, acquiescence, concurrence, enticement or co-operation from the outside entity,
from the insured or from any insured person.
Discovery Period
4.3 a) If the company declines to offer renewal terms at the end of the policy period, then the insured may purchase a discovery
period of 12 months following the end of the policy period for an additional premium of 100% of the annual premium. To
purchase this discovery period the insured must request its purchase in writing within 15 days following the end of the policy
period and must pay the additional premium within 30 days following the end of the policy period.
b) If a transaction takes place the insured does not have the right to purchase the discovery period specified in (a) above,
however, the insured does have the right, within 30 days of the end of the policy period, to request an offer from the company
of a discovery period of up to seventy two (72) months. The company may, but is not obliged to, offer a discovery period on
such terms and conditions as the company may decide in its discretion.
If a discovery period is purchased it is non-cancellable and the additional premium is non-refundable.
No discovery period is available in the event that this policy is cancelled by the company.
4.4 Retired Individual Insured
If the insured does not renew or replace this policy with any other policy affording similar coverage issued by the company or any
other company and a discovery period is not purchased under Extension 4.3, then a run-off period of 72 months after the date of
such non-renewal will be provided under this policy. During this run-off period written notice may be given to the company of any
claim first made against any insured person who retired before the date of non-renewal provided the claim arises from a wrongful
act of a policyholder during the policy period and would otherwise be covered by this policy.
Heirs, Estates and Legal Representatives
4.5 The company will pay for loss in respect of a claim first made against the estate, heirs, legal representatives or assigns of any
deceased, incompetent, insolvent or bankrupt insured person during the policy period and notified to the company during the policy
period provided such claim:
a) is made against them solely because of their status as estate, heirs, legal representatives or assigns of that deceased,
incompetent, insolvent or bankrupt insured person; and
Private Edge - Page 6 of 9 - Section 17
80
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
PRIVATE EDGE - SECTION 17
b) results directly from a claim made against that insured person, which is covered under this section 17 of the policy.
4.6 Joint Property Liability
The company will pay for loss in respect of a claim first made against the lawful spouse of an insured person during the policy period
and notified to the company during the policy period provided such claim:
a) is made solely because of his or her status as the lawful spouse of that insured person; and
b) results directly from a claim made against that insured person which is covered under this section 17 of the policy; and
c) 4.7 seeks damages recoverable from marital community property, or from property jointly held by that insured person and the
lawful spouse, or from property transferred from the insured person to the lawful spouse.
New Subsidiaries
Cover under this section 17 of the policy is extended to any subsidiary which the insured acquires or creates after the inception date
of this policy provided that the subsidiary does not have:
(i) total gross income which is more than the amount of gross income specified in the Schedule either in the United States of
America of Canada;
and
a listing of any of its securities on any exchange.
(ii) If a newly acquired or created subsidiary fails to meet conditions (i) and (ii) above, the insured may request an extension of
this policy for such subsidiary provided that the insured shall give the company sufficient details to permit the company to
assess and evaluate the company’s potential increase in exposure. The company shall be entitled to amend the policy terms
and conditions, during the policy period, including by the charging of reasonable additional premium. Unless otherwise
agreed, cover as is afforded to the directors, officers or employees of any subsidiary by virtue of this extension shall only
apply for wrongful acts committed while the subsidiary is or was a subsidiary of the insured.
5. GENERAL PROVISIONS
5.1 Changes in Risk during Policy Period
If during the policy period a transaction takes place, then the cover provided under this policy is amended to apply only to wrongful
acts committed and covered by this policy prior to the effective date of the transaction.
The insured shall give the company written notice of the transaction as soon as practicable but not later than 30 days after the
effective date of the transaction.
Limit of Liability
5.2 The total aggregate limit of the company’s liability to any one or all of the policyholders during any policy period for all loss shall not
exceed the limit of liability stated in the schedule for all Insuring Clauses combined. Legal costs are part of and not in addition to the
limit of liability.
The sub-limit of liability for Insuring Clause 5 is limited to R50, 000 for all crisis losses arising out of all crises occurring during the
policy period. This sub-limit of liability is part of and not in addition to the total aggregate limit of liability.
The limit of liability for the discovery period specified in Extension 4.3 shall be part of and not in addition to the limit of liability for
the policy period.
Regardless of the number of years this policy shall continue in force and irrespective of whether or not it is or may be renewed
and regardless of the number of premiums paid, the limits of liability as specified in the policy schedules shall not accumulate
from year to year or from policy period to policy period.
If two or more policies of insurance issued by the company or any other member company of the Chartis companies, apply to the
same claim for which the insured persons are liable, the maximum amount payable by Chartis South Africa Limited under all
such policies shall not exceed the limit of liability of whichever of such policies has the highest applicable limit of liability. Nothing
contained herein shall be construed to increase the limit of liability of this policy.
Retention
5.3 The company will only pay for that amount of any loss which is in excess of the retention. The retention is to be borne by the insured
and remains uninsured.
How to Give Notice and Report a Claim
5.4 a) Notification of Claims under Insuring Clauses 1, 2, 3, and 4
The insured shall, as a condition precedent to the obligations of the company under this section 17 of the policy, give written
notice to the company of any claim made against a policyholder as soon as practicable within the policy period or the
discovery period if applicable.
If, during the policy period or the discovery period, a policyholder becomes aware of any fact or circumstance that may result
in a claim being made against a policyholder, and the insured gives notice in writing to the company of the fact or circumstance
together with reasons for anticipating a claim with full particulars as to dates and persons involved, then any claim which is
subsequently made against a policyholder and reported in writing to the company arising out of, based upon or attributable to
that fact or circumstances or alleging a single wrongful act alleged or contained in such fact or circumstance, shall be
considered made against the policyholder and reported to the company at the time the notice of fact or circumstance was
first given.
Private Edge - Page 7 of 9 - Section 17
81
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
PRIVATE EDGE - SECTION 17
All notifications of claims and circumstances must be in writing and properly addressed to the company at the following
address:
Chartis South Africa Limited
77 De Korte Street
Braamfontein
2017
Attention: Claims Director
If posted, the date of posting shall constitute the date that notice was given and proof of posting by registered post shall be prima
facie proof of notice.
Notification of Claims under Insuring Clause 5
b) In respect of any crisis loss covered under Insuring Clause 5, immediate notice should be provided to the company at the
following address:
Clayton Consulting Inc
Mark Courtney
[email protected]
Telephone: (011) 314 5931
Mobile: (082) 445 3785
5.5 How Defence Will Be Conducted
In respect of Insuring Clauses 1, 2, 3 and 4, the company does not assume any duty to defend any claim brought against a
policyholder that is covered by this section 17 of the policy. The policyholder shall defend and contest any claim made against them,
however the company is entitled to effectively associate with the policyholder in defence of any claim that appears likely to involve
it including but not limited to effectively associating in the negotiation of any settlement. As a condition precedent to company’s
liability for loss arising out of the claim the policyholder shall not, without the prior written consent of the company, admit liability or
assume any liability for or settle any claim or incur any legal costs. Only those settlements and legal costs to which the company
has given prior written consent shall be recoverable as loss under this section 17 of the policy. The company’s consent shall not to
be unreasonably withheld provided that the company is entitled to effectively associate in the defence and negotiation of any
settlement of any claim in order to reach a decision as to reasonableness.
The company shall have the right to make investigation, conduct negotiations and, with the written consent of the insured, settle any
claim, on such terms and in such manner as the company deems expedient. If the insured refuses to consent to any settlement
under Insuring Clauses 1, 2, 3 and 4 which is recommended by the company and acceptable to the claimant, the company’s liability
for all loss on account of that claim shall not exceed the amount for which the claim could have been settled if the company’s
recommendation had been consented to, plus legal costs incurred up to the date of the refusal.
Subrogation
5.6 5.7 In the event of payment under this section 17 of the policy in respect of a claim, the company shall be subrogated to the extent of such
payment to all of the policyholder’s rights of recovery in respect of payment and shall be entitled to pursue and enforce such rights in the
name of the policyholder who shall provide the company with all reasonable assistance and co-operation including the execution
of all papers required and shall do everything that may be necessary to secure any rights including the execution of any
documents necessary to enable the company effectively to bring suit in the name of the policyholder whether such acts shall be or
become necessary before or after payment by the company. The policyholder shall do nothing to prejudice those rights. Any
amount recovered in excess of the company’s total payment shall be restored to the policyholder less the cost to the company of
such recovery. In no event however, shall the company exercise it rights of subrogation against an individual policyholder under this
policy unless such individual policyholder has been convicted of a deliberate criminal, dishonest, fraudulent or malicious act, or
obtained any proof or advantage to which such individual policyholder was not legally entitled.
Other Insurance
Unless otherwise required by law, any insurance as is provided under this section 17 of the policy shall apply only as specifically
excess over any other valid insurance, any applicable liability insurance, labour practice liability insurance, trustee liability
insurance, company management liability insurance, personal management liability insurance, crisis containment insurance,
selfinsurance programme or any equivalent policy irrespective of the amount thereof and whether or not such policy is actually
maintained by the policyholder.
Notice and Authority
5.8 The insured warrants that it is duly authorised to act on behalf of all its subsidiaries and all insured persons with respect to the
exercise of all rights and the discharge of all their duties in respect of this section 17 of the policy, including but not limited to;
a) negotiating the terms and conditions of cover;
b) binding cover;
c) the notification of claims;
d) the giving and receiving of any notice of cancellation;
e) the payment of premium and the receipt of any refund of premium that may become due;
f) the payment of the retention;
g) the negotiation and receipt of any endorsement;
h) the election of any right to a discovery period;
i) the appointment of attorneys to defend a claim; and
j) the receipt of and giving discharge for all amounts payable by the company under this section 17 of the policy.
Private Edge - Page 8 of 9 - Section 17
82
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
PRIVATE EDGE - SECTION 17
5.9 This section 17 of the policy and any rights hereunder cannot be assigned without prior written consent of the company.
5.10 Plurals and Titles
Assignment
Headings are included for convenience only and do not affect interpretation of this section 17 of the policy. Words and expressions
in the singular include the plural and vice versa. Words in italics have special meaning and are defined in this section 17 of the
policy. Words that are not specifically defined have the meaning normally attributed to them.
5.11 Continuity
With respect to Insuring Clauses 1, 2, 3 and 4, notwithstanding exclusion 3.2, cover is provided under this section 17 of the policy
for any claim, fact, matter or circumstance which could or should have been notified under any earlier policy. Provided always
that:
a) the claim, fact, matter or circumstance could and should have been notified after the continuity date of this section 17 of the
policy; and
b) the cover provided by this general provision shall be in accordance with the provisions of the policy under which the claim,
fact, matter or circumstance could or should have been notified.
5.12 Cancellation
This section 17 of the policy may be cancelled as follows:
(i) (ii) by the company, for non-payment of premium;
by the insured, immediately upon the company’s receipt of written notice from the insured. In such case, the company shall
refund any unearned premium calculated at short-rate of the annual premium except in the event of a loss having been
reported prior to the date of cancellation in which case no refund shall be due;
(iii) by the company, 30 days after receipt by the insured of written notice to that effect from the company. In such case, the
company shall refund any unearned premium calculated at pro-rata of the annual premium;
(iv) by the company, following the issue of written notice by the company to the address of the insured specified in the Schedule,
in respect of any policyholder or any employee of any policyholder. Cancellation shall apply 30 days following the issue of
such notice;
All of the policyholders must make all reasonable efforts not to disclose the existence of this section 17 of the policy to any person
except to professional advisers or as required by law or court order and shall only state within the insured’s annual report that the
insured has agreed, or otherwise, to pay a premium for this policy but shall not publish the nature of the liability covered by this
section 17 of the policy, the name of the company, the limit of liability or the premium paid for this section 17 of the policy.
This section 17 of the policy is not binding upon the company unless it is signed on the Schedule by an authorised representative
of the company.
5.15 Severability
by mutual agreement between the company and the insured.
5.14 Policy Validity
(v) 5.13 Confidentiality
If any of the provisions of this section 17 of the policy is held to be unlawful or unenforceable, that particular provision will be
severable from the remaining terms which will remain valid and enforceable.
5.16 Settlement of Disputes Arising Under the Policy
If a dispute arises as to whether any insured person should be required to contest any legal proceedings, then the company agrees
to the appointment, at the insured person’s request, of a Senior Counsel (to be mutually agreed upon by the insured person and
the company, or in the absence of mutual agreement to be appointed by the President of the Law Society, or equivalent
organisation, in the jurisdiction in which the legal proceedings were first served) to advise whether or not such proceedings should
be contested. The Senior Counsel shall take into consideration all relevant issues including the economics of the matter, the
damages and costs which are likely to be recovered by the plaintiff, the likely costs of defence and the prospects of the insured
person successfully defending the action. The costs of the Senior Counsel’s opinion shall be borne by the company.
If the Senior Counsel advises that, having regard to all the circumstances, the matter should not be contested but should be settled,
and provided that the settlement recommended by the Senior Counsel is within certain limits which in the Senior Counsel’s opinion
are reasonable, then the insured person shall not object to or oppose any such settlement and shall co-operate with the company
to achieve the settlement in accordance with this section 17 of the policy.
5.17 Allocation
In the event that any claim involves both covered matters and matters not covered under this section 17 of the policy, a fair and
proper allocation of any defence costs, judgements and/or settlements shall be made between the policyholder and the company
taking into account the relative legal and financial exposures attributable to covered matters and matters not covered under this
section 17 of the policy.
5.18 Non-Accumulation
Any payment provided under the terms of this section 17 of the policy shall be non-cumulative with any coverage provided under
any other policy issued by any member company of the American International Group.
Private Edge - Page 9 of 9 - Section 17
83
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
MACHINERY BREAKDOWN - SECTION 18
Basis of Indemnity
Sub-Section 1 – Machinery Breakdown – Property Damage
Defined Event
The Company will indemnify the insured for loss as the result of sudden and unforeseen physical damage to the Property Insured in a breakdown of such property on the premises of the insured
The indemnity under this Section is on an occurrence basis. Occurrence, whenever referred to in this Section, its Schedules, Sections or
sub-sections shall mean an occurrence or series of occurrences arising from one event or original cause.
It is understood and agreed that the monetary amounts as reflected in the sums insured/limits of liability stated in the Schedule shall be applied to:
1. the indemnity or amounts payable in terms of this Section and to which sums the terms, provisions, conditions and limitations of this
Section shall apply;
and
Value Added Tax at the current rate as promulgated in legislation pertaining thereto.
2. Subject to such sums insured/limits of indemnity being adequate to embrace the amounts reflected under 1 and 2 above the
Company will, to the extent that the Insured is accountable to the tax authorities for Value Added Tax, include the amount of such
tax in the final settlement of any claim in terms of this Section.
Provided always that the total amount payable by the Company in terms of this Section for any one Defined Event and Value Added
Tax related thereto shall not exceed the sum insured/limit of indemnity set against such Defined event in the Schedule.
In circumstances referred to herein under which the Insured is required to bear the first amount of any loss, “The First Amount
Payable”, such amount shall also be inclusive of Value Added Tax in like manner to the sums insured/limit of indemnity referred to
above.
Specific exceptions
This section of the Policy does not cover loss of or damage to property related to or arising from:
1. 1.1 A defined event occurring elsewhere than within the territorial limits of the Republic of South Africa, Namibia, Lesotho, Botswana,
Malawi, Zimbabwe and Zambia;
consequential loss of any description or delay (other than as specifically provided).
1.2 Specific conditions
1. Prevention of Loss
General Terms, Exception, Conditions and Provisions
In the event of the Insured in any section breaching a term, Exception, Condition or Provision contained in the Policy or any Section
thereof, then the Company shall be entitled to repudiate any claim under this section 18 in the Policy or the particular section.
The Insured shall take reasonable steps to:
1.1 safeguard the Property Insured;
1.2 maintain in efficient condition the Property Insured;
1.3 comply with any statutory or legal requirements or the requirements of any legal authority, manufacturer, maintainer, repairer
or supplier and particularly those relating to the installation, maintenance, inspection, operation, application and function of
the Property Insured;
1.4 prevent accidents and losses;
1.5 minimise loss or damage.
Property Insured
The property described in the Schedule but excluding:
exchangeable and replaceable parts and tools such as, but not limited to, X-ray or cathode ray tubes, valves, drills, knives, grinding stones
or objects, saw blades; forms, letters, moulds, dies, patterns, clichés, blocks, stamps, punches, coatings or engravings on cylinders or rolls;
parts which by their use and/or nature suffer a high rate of wear and tear or depreciation or have to be replaced frequently such as, but
not limited to, crushing, hammering or grinding surfaces, armour and wearing plates, screens and sieves, flexible pipes jointing and packing
materials, filter cloths, wheels, ropes, belts, seals, washers, straps, excavating and grabbing teeth, bands, brushes, accumulator batteries,
lamps, pneumatic and other tyres; elevator and conveyor belts provided that damage thereto resulting from indemnifiable damage to the
transport system itself is not excluded subject to the sum insured/limit of indemnity being adequate and subject further to a reasonable
deduction for age and condition;
fireproof linings and refractory materials provided that damage thereto resulting from indemnifiable damage to the item of Property Insured
in which such linings or materials are installed is not excluded subject to the sum insured/limit of indemnity being adequate and subject
further to a reasonable deduction for age and condition.
ceramic products and all parts composed of glass, porcelain or similar materials provided that insulation of electrical equipment or synthetic
parts serving as a permanent substitute for metal parts is not excluded;
Machinery Breakdown - Page 1 of 7 - Section 18
85
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
MACHINERY BREAKDOWN - SECTION 18
operating materials such as, but not limited to, fuels, chemicals, fluids, lubricants, oils, resins, catalysts, filter substances, heat
transfer media or cleaning agents provided that this exclusion does not exclude dielectric fluids;
sewer piping, underground vessels or piping, or piping forming a part of a sprinkler system;
water piping other than: boiler feed water piping, boiler condensate return piping or water piping forming a part of a refrigerating or air
conditioning system;
vehicle, aircraft, floating vessel or any equipment mounted on such vehicle, aircraft or floating vessel;
dragline, excavation, or construction equipment;
equipment manufactured by the Insured for sale;
tools, dies, cutting edges, crushing surfaces, trailing cables, non-metallic linings, driving belts or bands or any part requiring periodic
renewal;
electronic computer or other data or numerically controlled equipment, including peripherals used in conjunction therewith;
all forms of electronic, magnetic and optical tapes and discs for use in any electronic computer or other data or numerically controlled
equipment.
structure, foundation masonry, brickwork, cabinet, compartment or air supported structure or building; insulating or refractory
material;
Exclusions applicable to Sub-section 1 – Property damage
This Policy does not cover:
1. Loss or damage due to:
1.1 theft or any attempt thereat
1.2 fire, explosion or direct lightning strike;
1.3 the partial or total collapse of buildings containing the Property Insured;
1.4 impact by animals or vehicles or anything on or in such vehicles;
1.5 aircraft and other aerial devices or articles dropped therefrom;
1.6 storm, wind, water, hail or snow or the escape of water from water containing pipes containers, vessels or apparatus or the untimely
activation or accidental discharge or leakage of water from any sprinkler or drencher installation;
falling trees or parts thereof;
1.7 1.8 earthquake, whether caused naturally or by mining operations or otherwise, subterranean fire, volcanic eruption or other convulsion
of nature, tidal wave, subsidence or landslip, the collapse, sliding or movement of land, waste or slag heap, caving in or avalanche,
falls of stones or rocks, sluicing of watercourses or of subterranean water or inadequate drainage;
1.9 faults or errors already existing at commencement of this insurance and which were known or should have been known to the
Inured as well as damage caused intentionally or with the approval or complicity of the Insured;
or any subsequent dismantling or re-erection;
2. loss or damage resulting from experiments, trials or permanent overload provided that verification of good functioning shall not be regarded
as trials;
3. loss or damage for which a supplier, repairer, manufacturer or assembler is responsible provided that his exclusion shall not apply:
3.1 if such supplier, repairer, manufacturer or assembler shall contest or dispute liability; and
3.2 the amount recoverable by the Insured would have been recoverable under this Policy; and
3.3 such rights, remedies or reliefs to which the Insurer may be entitled by subrogation are not waived by the Insured intentionally or
otherwise;
4. otherwise than as provided for, loss or damage which arises from keeping a damaged item in operation or from putting a damaged item
back into operation before it has been completely repaired or before its regular operation is guaranteed;
5. normal wear and tear, corrosion or excessive deposit of scaling or any other gradual or persistent damage which is the natural
consequence of normal use and operation of the item of Property Insured concerned, the action of vermin or insects or due to insufficient
maintenance or faulty operation provided that this exclusion shall apply only in respect of the damaged part concerned;
6. costs and expenses incurred as a result of the loss of or the removal and reintroduction of substances or other products being treated at
the time of a Defined Event into any machine or reservoir;
7. damage of an aesthetic nature not affecting the operation of the item such as scratching, denting, chipping or marring;
8. loss or damage due to incorrect repairs and/or operations;
9. loss or damage due to pollution or contamination other than as specifically provided for or liability of any kind.
Machinery Breakdown - Page 2 of 7 - Section 18
86
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
MACHINERY BREAKDOWN - SECTION 18
Clauses, memoranda and extensions applicable to Sub-section 1
1. Insured Value
The sums insured stated in the Defined Event shall, at all times, be equivalent to the price, bought separately and without discounts, of
property of the same kind or type as the Property Insured but not more extensive or superior than the Property Insured when new plus
the cost of packaging, transport and assembly and the cost of dismantling and re-erection.
2. Average
If on the commencement of a Defined Event the Insured value of the insured is collectively greater than the sum insured thereon the
Insured shall be considered their own insurer for the difference and shall bear a rateable proportion of the loss. Each item of Property
Insured, if more than one, shall be separately subject to this condition.
3. Indemnity
3.1 The amount payable by the Company shall be determined:
3.1.1 in the event of a total loss, as the market value of the damaged item of Property Insured immediately prior to the occurrence of the
Defined Event;
3.1.2 in the event of repairable damage;
3.1.2.1 by adding to the labour costs the cost of such materials and replacement parts necessary to restore the damaged item of Property
Insured to its condition immediately prior to the occurrence of an event defined under this section of the policy; less
3.1.2.2 a deduction for betterment and an appropriate allowance for parts that can be re-used in any way.
3.2 Notwithstanding paragraphs 3.1.1 and 3.1.2 above, the liability of the Company shall not exceed the lesser of the market value of
the damaged item of Property Insured immediately prior to the occurrence of the Defined event or the sum insured stated in the
Schedule
3.3 It is expressly agreed that the market value of the damaged item shall not be less than 40% (forty per cent) of the Insured Value
described in clause 1 above.
3.4 If the damaged item of Property Insured was acquired for fair value on reasonable terms in terms of a long-term rental or lease
agreement which is still current at the time of the happening of the Defined Event, the amount payable as indemnity shall not be
less than the amount of the outstanding installments or rent still due.
3.5 Labour costs shall be determined by considering travel and wage costs related to the disassembly, repair and reassembly taking
into account the customary level of wages at the place of repair and reasonable travel costs during normal working hours.
3.6 The cost of materials and replacement parts shall be determined by considering the cost of the materials and replacement parts
used at the place of repair and the cost of transport, by the cheapest means available, of such materials and replacement parts.
The following costs are expressly excluded:
3.7 3.7.1 costs for the remaking of designer’s or constructor’s drawings, models, forms and moulds needed for carrying out repairs,
the cost of investigating the cause and consequences of a Defined Event or the expense of reproducing information
contained on any data storage media but not excluding machine readable information contained in electronic equipment
forming part of the Property Insured and exerting control there over, lost or deranged as the result of indemnifiable damage
thereto for which the amount payable as indemnity shall be the reasonable and necessary cost incurred by the Insured for
recapturing and/or restoring the lost information to a level equivalent to, but not more extensive than, that immediately prior
to the occurrence of the Defined Event;
3.7.2 the additional costs incurred at the time of repair for revisions, modifications or improvements.
4. Additional Expenses
In addition to any other payment, the Company will reimburse the Insured for those costs and expenses reasonably and necessarily
incurred in respect of:
4.1 demolition in order to permit repair or replacement of stolen or damaged items and subsequent reconstruction;
4.2 the removal of debris from the site of the Defined Event but not exceeding 15% of the amount payable in terms of clause 3 above
for repairing or replacing the damaged property and provided that this extension does not cover costs and expenses arising from
pollution or contamination;
4.3 damage to bases and foundations to the Property Insured caused by a Defined Event;
4.4 the disengagement of any item of Property Insured or removal thereof from water;
4.5 the cost of removal and transportation to and from the nearest competent repairer anywhere within the territorial limits including
loading and unloading;
overtime, night work, work on public holidays and express or airfreight transportation;
4.6 4.7 Wages in excess of those described in clause 3.5 above, accommodation, travel and other, similar costs incurred as the direct result
of employing technicians normally based elsewhere than in the territory in which the Defined Event occurred;
4.8 measures taken by the Insured at the written request of the Company expressly made in terms of this clause to prevent or limit
damage to the Property Insured following the occurrence of a Defined Event;
4.9 provisional repairs following the occurrence of a Defined Event provided liability is admitted under Section 2 of this Policy in respect
of loss resulting from the same Defined Event notwithstanding that payment under Section 2 may be precluded solely because the
Insured is required to bear the first portion of any loss hereunder.
Machinery Breakdown - Page 3 of 7 - Section 18
87
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
MACHINERY BREAKDOWN - SECTION 18
5. Switchgear Oil
The sum insured stated in the Schedule includes provision for the renewal of oil in oil transformers and automatic and other oil switches
provided such renewal is necessitated by indemnifiable damage to the installation concerned.
6. Blanket Cover (If stated in the Schedule to apply)
6.1 Subject always to the above Exceptions and Exclusions to Property Insured, the Property Insured shall mean any boiler and fired
or unfired vessel subject to a vacuum or internal pressure other than static pressure of any contents, any refrigeration apparatus
including piping, any mechanical or electrical machine, electrical, pneumatic or hydraulic apparatus whether working or on standby,
idle or in storage as a spare or any apparatus used to direct, generate, control, transmit or utilise mechanical or electrical
power, including auxiliaries of the aforesaid, all in working order and belonging to the Insured or for which the Insured is legally
responsible and situated at the Premises.
6.2 Subject to the General and Specific terms, exceptions, exclusions, conditions and provisions of this section of the Policy alterations,
additions and improvements to the Property Insured at the Premises taken into beneficial use by the Insured following satisfactory
testing and commissioning and having operated at designed throughput levels for a reasonable period are held covered up to 20%
of the sum insured provided that the Insured notifies the Company as soon as possible and not later than the expiry of the period
of insurance and pays any additional premium that may be required.
7. Surrounding Property (If stated in the Schedule to apply)
This insurance is extended to include property belonging to the Insured or for which they are legally responsible situated at the Premises
and lost or damaged as a direct result of an indemnifiable defined event to the Property Insured but excluding:
7.1 property excluded by this Policy;
7.2. property insured or insurable in terms of an extension to this Policy;
provided the amount payable as indemnity hereunder shall not exceed the amount stated in the Specification.
8. Deterioration of Stock (If stated in the Schedule to apply)
8.1 This insurance is extended to include damage to the contents belonging to the Insured or for which they are legally responsible in
any cold-storage chamber forming part of the Property Insured at the Premises due to:
8.1.1 any rise or fall in the temperature in any cold-storage chamber containing such contents as a direct result of indemnifiable damage
to the Property Insured;
8.1.2 any rise or fall in the temperature in any cold-storage chamber containing such contents as a direct result of the accidental failure
of the supply of electricity at the suppliers’ connections to the Premises but excluding:
8.1.2.1 any failure lasting less than 6 consecutive hours;
8.1.2.2 the deliberate act of the suppliers’;
8.1.2.3 the exercising by the suppliers’ of their power to withhold or restrict supplies;
8.1.2.4 drought or shortage of fuel or water at the premises of the supplier.
8.1.3 the escape of refrigerant following an indemnifiable event;
8.1.4 indemnifiable damage to any part of the Property Insured which prevents the maintenance of temperature or gas concentration at
a level commensurate with the proper storage of such contents;
but excluding loss or damage due to:
8.1.5 a lack of or insufficient maintenance;
8.1.6 faulty packaging, storage or handling, drying out following a faulty procedure on the part of the Insured, natural rotting or
deterioration, inherent defect or disease.
8.2 This extension shall not apply if the Insured fails to:
8.2.1 arrange and maintain for the duration of this Section of the Policy a maintenance contract for the cooling installation;
8.2.2 install an alarm system which is triggered by any variation in temperature or by an escape of refrigerant or by an outage
of a cooling group which alarm shall be connected to a receiver in the custody of a responsible employee or a specialist
response company;
8.2.3 fit cut-out switches which reset automatically to the power supplies.
The amount payable as indemnity shall be:
8.3 8.3.1 the price which would have been realised by the Insured had the damaged contents been sold on the date of the
damage;
less
any amount realised from the sale of the damaged contents; plus
8.3.2 8.3.3 any costs or expenses necessarily incurred by the Insured for the sole purpose of avoiding or minimising the extent of
the damage
but not exceeding the amount stated in the Schedule.
8.4 Provided the amount stated in the Schedule is adequate, this extension includes any costs and expenses necessarily incurred in
complying with any regulation under or framed in pursuance of any act of parliament or ordinance of any provincial legislation or
local authority or municipal by law relative to the disposal or destruction of the damaged contents.
Machinery Breakdown - Page 4 of 7 - Section 18
88
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
MACHINERY BREAKDOWN - SECTION 18
9. Rented Equipment (If stated in the Schedule to apply)
9.1 This insurance is extended to include machines, apparatus and other equipment temporarily rented by the insured and for which
they are legally responsible but excluding:
9.1.1 property rented otherwise than in terms of a written agreement;
9.1.2 property which is not used for the purpose of the Business;
9.1.3 property situated elsewhere than at the Premises.
9.2 For the purposes of this extension only, Insured Event is deemed to include damage by fire, explosion, direct lightning strike or
damage by aerial devices or objects dropped therefrom.
The amount recoverable as indemnity hereunder shall not exceed the amount stated in the Specification.
9.3 10. Consigned Goods (If stated in the Schedule to apply)
This insurance is extended to include any item of machinery or equipment temporarily consigned to the insured for the purpose of testing,
maintenance, repair, verification or calibration and for which the insured is legally responsible damaged as a direct result of indemnifiable
damage to the Property Insured at the Premises provided the amount payable as indemnity hereunder shall not exceed the amount stated
in the Specification.
Sub-section 2 – Business interruption
Defined Event
The Company will indemnify the Insured in accordance with the provisions hereinafter set out for loss following interruption of or interference with
the Business in consequence of damage occurring during the period of insurance at the Premises in respect of which payment has been made or
liability admitted under Sub-section 1 of this Section 18 (hereinafter termed Damage) provided that liability shall be deemed to have been admitted
if such payment is precluded solely because the Insured is required to bear the first portion of the loss.
Basis of Indemnity
Item 1 Gross profit (difference basis)
The insurance under this item is limited to loss of gross profit due to
(a) reduction in turnover and
(b) increase in cost of working
and the amount payable as indemnity hereunder shall be
(a) in respect of reduction in turnover the sum produced by applying the rate of gross profit to the amount by which the turnover during the
(b) in respect of increase in cost of working the additional expenditure necessarily and reasonably incurred for the sole purpose of avoiding
indemnity period shall, in consequence of the Damage, fall short of the standard turnover;
or diminishing the reduction in turnover which, but for that expenditure, would have taken place during the indemnity period in consequence
of the Damage, but not exceeding the sum produced by applying the rate of gross profit to the amount of the reduction thereby avoided;
less any sum saved during the indemnity period in respect of such of the charges and expenses of the business payable out of gross profit as
may cease or be reduced in consequence of the Damage, provided that the amount payable shall be proportionately reduced if the sum insured
in respect of gross profit is less than the sum produced by applying the rate of gross profit to the annual turnover where the maximum indemnity
period is 12 months or less, or the appropriate multiple of the annual turnover where the maximum indemnity period exceeds 12 months.
Item 1 Gross profit (additions basis)
The insurance under this item is limited to loss of gross profit due to
(a)
reduction in turnover and
(b) increase in cost of working
and the amount payable as indemnity hereunder shall be
(a) in respect of reduction in turnover the sum produced by applying the rate of gross profit to the amount by which the turnover during the
(b) in respect of increase in cost of working the additional expenditure necessarily and reasonably incurred for the sole purpose of avoiding
indemnity period shall, in consequence of the Damage, fall short of the standard turnover;
or diminishing the reduction in turnover which, but for that expenditure, would have taken place during the indemnity period in consequence
of the Damage, but not exceeding the sum produced by applying the rate of gross profit to the amount of the reduction thereby avoided;
less any sum saved during the indemnity period in respect of such of the insured charges as may cease or be reduced in consequence of
the Damage, provided that the amount payable shall be proportionately reduced if the sum insured in respect of gross profit is less than the
sum produced by applying the rate of gross profit to the annual turnover where the maximum indemnity period is 12 months or less, or the
appropriate multiple of the annual turnover where the maximum indemnity period exceeds 12 months.
Memo
If any standing charges of the business are not insured under this section, then in computing the amount recoverable hereunder as increase in cost
of working, that proportion only of the additional expenditure shall be brought into account which the sum of the net profit and the insured standing
charges bears to the sum of the net profit and all the standing charges.
Machinery Breakdown - Page 5 of 7 - Section 18
89
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
MACHINERY BREAKDOWN - SECTION 18
Item 2 Revenue
The insurance under this item is limited to
(a) loss of revenue and
(b) increase in cost of working
and the amount payable as indemnity hereunder shall be
(a) in respect of loss of revenue the sum amount by which the revenue during the indemnity period shall, in consequence of the Damage,fall
(b) in respect of increase in cost of working the additional expenditure necessarily and reasonably incurred for the sole purpose of avoiding
or diminishing the loss of revenue which, but for that expenditure, would have taken place during the indemnity period in consequence of
the Damage, but not exceeding the amount of loss of revenue thereby avoided;
short of the standard revenue;
less any sum saved during the indemnity period in respect of such of the charges and expenses of the business payable out of revenue as may
cease or be reduced in consequence of the Damage, provided that the amount payable shall be proportionately reduced if the sum insured in respect
of revenue is less than the annual revenue where the maximum indemnity period is 12 months or less, or the appropriate multiple of the annual
revenue where the maximum indemnity period exceeds 12 months.
Item 3 Additional increase in cost of working
The insurance under this item is limited to reasonable additional expenditure (not recoverable under other items) incurred with the consent of the
company during the indemnity period in consequence of the Damage for the purpose of maintaining the normal operation of the business.
Definitions applicable to Sub-section 2
Indemnity Period
The period commencing with the occurrence of the Damage and ending not later than the end of the period thereafter stated in the Specification
during which the results of the Business shall be affected in consequence of the Damage.
Turnover
The money paid or payable to the Insured for goods sold and delivered and for services rendered in the course of the Business at the Premises.
Gross Profit (Additions Basis)
The sum produced by adding to the Net Profit the amount of the Insured Standing Charges or, if there be no Net Profit, the amount of the Insured
Standing Charges less such a proportion of any net trading loss as the amount of the Insured Standing Charges bears to all the Standing Charges
of the Business.
Gross Profit (Difference Basis)
The amount by which the sum of Turnover, closing stock and work in progress exceeds the sum of opening stock and the Specified Working
Expenses stated in the Specification. The amount of opening and closing stock and work in progress shall be arrived at in accordance with the
Insured’s normal accounting methods due provision being made for depreciation.
Net Profit (Additions Basis)
The Net Profit (exclusive of all capital receipts and all outlay properly chargeable to capital) resulting from the Business of the Insured at the Premises
after due provision for all standing and other charges including depreciation but before deduction of any taxation chargeable on profits.
Insured Standing Charges (Additions Basis)
As stated in the Schedule.
Gross Revenue
The money paid or payable to the Insured for goods sold and for services rendered in the course of the Business at the Premises.
Rate of Gross Profit The rate of gross profit earned on the turnover during the financial year immediately before the date of the Damage. To which such adjustments shall be made as may be necessary to provide for the
trend of the Business and for variations in or other circumstances affecting the
Business either before or after the Damage
or which would have affected the Business had the Damage not
occurred, so that the figures thus adjusted shall represent, as nearly as
may be practicable, the results which would have been obtained during
the relative period after the Damage.
Annual Turnover /Gross Revenue
The Turnover/Gross Revenue during the twelve months
immediately before the date of the Damage.
Standard Turnover/Gross Revenue The Turnover/Gross Revenue during that period in the twelve months immediately before the date of the Damage which corresponds with the Indemnity Period. Machinery Breakdown - Page 6 of 7 - Section 18
If the Damage occurs before the completion of the first year’s trading of
the Business at the Premises, the values in the adjacent column shall
be calculated by using values proportionate to the results obtained during
the period between the commencement of the Business and the date
of
the Damage.
90
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
MACHINERY BREAKDOWN - SECTION 18
If during the Indemnity Period goods shall be sold, services shall be rendered, work shall be done or the Business shall be conducted elsewhere
than at the Premises the money paid or payable to the Insured in respect of such sales, services or work performed shall be brought into account in
arriving at the Turnover or Revenue during the Indemnity Period.
Clauses conditions and extensions applicable to Sub-section 2
1. Termination of Cover
The insurance under this section shall cease, unless the Company has given its written consent, if the Business is wound up or carried on by a
liquidator or judicial manager or is permanently discontinued.
2. Due Diligence
2.1 On the happening of any Damage in consequence of which a claim is or may be made under this section, the Insured shall, in
addition to complying with general conditions 7 and 8, with due diligence do and concur in doing and permit to be done all things
which may be reasonably practicable to minimise or check any interruption of or interference with the Business or to avoid or
diminish the loss and in the event of a claim being made under this Section shall, not later than thirty days after expiry of the
Indemnity Period or within such further time as the Company may in writing allow, at their own expense deliver to the Insurer in
writing a statement setting forth particulars of their claim together with details of all other insurances covering the Damage or any
part of it or consequential loss of any kind resulting there from.
2.2 The Insured shall, at their own expense, also produce and furnish to the Company such books of accounts and other business
books, vouchers, invoices, balance sheets and other documents as may reasonably be required by the Company for the purpose
of investigating or verifying the claim together with, if demanded, a declaration of the truth of the claim and of any matters connected
therewith.
2.3 No claim under this section shall be payable unless the terms of this condition have been complied with and, in the event of
noncompliance therewith in any respect, any payment on account of the claim already made shall be repaid to the Insurer
forthwith.
3. Accumulated Stocks (Applicable to Additions and Difference Bases of Indemnity)
In adjusting a loss an equitable allowance shall be made if any shortage in turnover due to the Damage is postponed by reason of the
Turnover being temporarily maintained from accumulated stocks.
4. Auditors
The Insured’s auditors or professional accountants at the time of the Defined Event may certify from the Insured’s books of account or
other business books any detail required by the Insurer and their unqualified certificate shall be prima facie evidence of such detail.
5. Departments/Branches
If the Business is conducted in departments/branches, the independent trading results of which are ascertainable, the provisions of Gross
Profit/Gross Revenue, relating to reduction in Turnover/Gross Revenue and increase in cost of working, shall apply separately to each
department/branch affected by the Damage except that if the sum insured by the relative item be less than the aggregate of the Annual
Gross Revenue/sums produced by applying the Rate of Gross Profit for each department/branch of the Business (whether affected by the
Damage or not) to the relative Annual Turnover (or to a proportionately increased multiple thereof where the Indemnity Period exceeds 12
months) the amount payable shall be proportionately reduced.
6. Time Deductible
Wherever a Time Deductible is indicated in the Specification the definition of Indemnity Period is amended to read:
“The period commencing with the expiration of the Time Deductible shown in the Specification following the occurrence of the Damage
and ending not later than the end of the period thereafter stated in the Specification during which the results of the Business shall be
affected in consequence of the Damage.”
7. Salvage Sale
If the Insured shall hold a sale of salvage during the Indemnity Period the provisions of Gross Profit shall, for the purposes of such claim,
read as follows:
“in respect of reduction of Turnover the sum produced by applying the Rate of Gross Profit to the amount by which the Turnover during the
Indemnity Period (less the Turnover for the period of the salvage sale) shall, in consequence of the Damage, fall short of the Standard
Turnover from which sum shall be deducted the Gross Profit actually earned during the period of the salvage sale.”
8. Public Utilities
Loss, as insured by this Section, resulting from interruption of or interference with the Business in consequence of total or partial failure
of the public supply of electricity to the Premises shall be deemed to have resulted from Damage (as defined) provided that this insurance
does not cover loss resulting from damage directly or indirectly caused by:
8.1 the deliberate act of the Insured or the exercise of an authority empowered by law to supply electricity of its power to withhold or
restrict supply unless such withholding or restriction is directly attributable to damage to property of such authority;
8.2 drought;
8.3 shortage of fuel or water.
Machinery Breakdown - Page 7 of 7 - Section 18
91
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
KIDNAP AND WRONGFUL DETENTION
(CONSULTANTS COSTS) - SECTION 19
DEFINED EVENTS
The Company will indemnify the Insured Person up to the amount specified in the Schedule of Benefits for Covered Losses should any of the
following Insured Events happen to an Insured Person whilst within the Territorial Limits:
1. Kidnapping or alleged Kidnapping of an Insured Person; or
2. Wrongful Detention.
COVERED LOSSES
We will indemnify the Insured Person for the following covered losses:
Reasonable fees and expenses of Clayton Consultants who will guide the insured through the negotiation and handling of the Insured Event.
DEFINITIONS
Informant shall mean any person, other than the Insured Person, providing information not otherwise obtainable, solely in return
for a reward offered by the Insured Person.
Insured Person shall mean any director, officer or full time employee of the Insured listed in the policy schedule.
Kidnapping shall mean any event or connected series of events of seizing, detaining or carrying away by force or fraud of the Insured
Person by person/s for the purpose of demanding ransom monies or other benefit or conduct.
Wrongful Detention shall mean the arbitrary or capricious act of involuntary confinement of the Insured Person by person/s acting as
agent/s or with the approval of any government of government entity, or acting or purporting to act on behalf of any
insurgent party, organisation or group. A connected series of wrongful detentions will be considered as one wrongful
detention.
Victim shall mean an Insured Person who is the subject of an Insured Event.
TERRITORY
The area which on 1st January 1976 constituted the Republic of South Africa, Namibia, Botswana, Lesotho, Swaziland, Zimbabwe, Zambia and
Malawi.
EXCLUSIONS - In addition to the General Exceptions applying to all Sections
The Company will not be liable for loss caused by or resulting either directly or indirectly from or involving:
1. The fraudulent, dishonest or criminal acts of the Insured Person, or any person authorised by the Insured Person to have custody of ransom
monies. This Exclusion will not apply to the payment of ransom monies by the Insured Person in a situation where the authorities have
declared such payment illegal.
2. Any violation of the laws of the host country by the Insured Person or failure to maintain and possess duly authorised and required
documents and visas.
3. Failure of the Insured person to evacuate from the host country within 10 days after the issuance of a government advisory to do so or
travel to country/ies after an advisory has been issued not to do so.
4. The Insured Person taking part in the operations of any governmental organisation, official law enforcement or military force.
CONDITIONS
1. Confidentiality
The Insured Person/s will use all reasonable efforts not to disclose the existence of this Section. This condition will also apply to any other
insurance.
2. Limits of Liability
For each Covered Loss the maximum limit and aggregate limit of the Company’s liability will not exceed the Sum Insured/s stated in the
Schedule of Benefits and Policy Schedule by reason of any one event, except where stated to the contrary. All Covered Losses will be
deemed to have been incurred during the Policy Period in which the event occurred.
3. Due Diligence
The Insured Person/s will use due diligence and do and concur in doing all things reasonably practicable to avoid or diminish any loss/es
insured under this section.
4. Other Insurance
The insurance provided under this section will be in excess over any other valid and collectable bond or insurance.
5. Statement of Loss
The Insured Person will file a detailed, sworn statement of loss with the Company as soon as possible after the Date of Loss.
6. Non-employee Directors
In the event that the Insured Person is a non employee director and is insured under any other similar Policy or Policies issued by the
Company (or by any other member or affiliated insurance company of the American International Group, Inc.) and a loss involving that
director is reported under this Policy and under one or more such other Policies, then the Company’s aggregate liability (including that of
any of the Company’s other member company/ies) for each loss will not be cumulative and will not exceed the highest limits of liability
applicable to each loss under any one of the Policies.
Kidnap and Wrongful Detention (Consultants Costs) - Page 1 of 2 - Section 19
93
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
KIDNAP AND WRONGFUL DETENTION
(CONSULTANTS COSTS) - SECTION 19
7.
Non-assignment
This section may not be assigned or transferred.
8. Assistance and Co-operation
The Insured Person/s will co-operate with the Company in all matters relating to this insurance. This may include attending hearings and
trials, securing and giving evidence, obtaining the attendance of witnesses, assisting in achieving settlements, and in conducting litigation,
arbitration, or other proceedings.
9. Inspection and Audit
The Company may examine and audit the Insured Person business documents, relating to the subject matter of this insurance until 3 years
after this Policy has expired or has been cancelled. Any premium due for exposure, which exists but was not reported, will be determined
by the Company audit and must be paid on demand.
10. Recoveries
In the event of any payment under this section, all recoveries, net of the Company’s actual recovery costs, will be distributed firstly to the
Company for all amounts paid by the Company under this section and any remainder will be paid to the Insured Person.
11. Action Against Company
No suit, action or proceeding for recovery of any loss under this section will be sustainable in any court of law, equity or other tribunal unless
all requirements of this section are complied with and it is commenced within 12 consecutive months after the Insured Person has filed a
statement of loss with the Company.
12. Concealment, Misrepresentation or Fraud
This section is null and void in case of fraud, concealment, or misrepresentation by the Insured Person of a material fact concerning:
12.1 This insurance or the procurement of it; or
12.2 An Insured Person; or
12.3 Any loss or claim presented to the Company.
13. Changes
Notice to any of the Company’s representatives or knowledge possessed by any representative or by any person will not create a waiver
or a change in any part of this section or stop the Company from asserting any right under the terms of this section, nor will the terms of
this section be waived or changed unless agreed to in writing by the Company.
14. Notices
Except as indicated to the contrary, all notices, applications, demands or requests provided for in this section will be in writing and will be
given to or made upon either party at its address shown in the Policy.
CONTACT NUMBERS IN THE EVENT OF AN INSURED EVENT
TOLL FREE IN THE US and CANADA:
1-866-WANT-HLP (866) 926-8457
COLLECT FROM ANYWHERE IN THE WORLD:
1-713-260-5500
The Call Centre is operated 24 hours a day, 365 days a year.
Kidnap and Wrongful Detention (Consultants Costs) - Page 2 of 2 - Section 19
94
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
MOTOR - SECTION 20
DEFINITIONS
1. Occurrence
“Occurrence” means an occurrence or series of occurrences arising from one cause in connection with any one vehicle in respect of
which indemnity is provided by this section 20 of the policy.
2. Vehicle
“Vehicle” means
a) private type motor cars (including station wagons, safari vans, estate cars or similar vehicles designed to seat not more than 9
persons including the driver)
b) commercial vehicles and special type vehicles as described in the schedule
c) motor cycles (including motor scooters and 3-wheeled vehicles)
d) buses (including any vehicle used for business purposes and designed to seat more than 9 persons, including the driver)
e) trailers, i.e. any vehicle without means of self-propulsion designed to be drawn by a self-propelled vehicle, but excluding any parts
or accessories not permanently fitted thereto
any such vehicle being owned by or hired by or leased to the insured, including any such vehicle temporarily operated by the insured as
replacement for any vehicle out of use for the purpose of overhaul, upkeep and/or repair; provided that the insurer’s maximum liability shall
not exceed the lesser of the market value of the replacement vehicle or the limit of indemnity as stated in the schedule.
SUB-SECTION A - LOSS OR DAMAGE
Defined events
Loss of or damage to any vehicle described in the schedule and its accessories and spare parts whilst on the vehicle. In addition, if such vehicle
is disabled by reason of any loss or damage insured by this section 20 of the policy, the company will pay the reasonable cost of protection and
removal to the nearest repairers and the insured may give instructions for repairs to be executed without the previous consent of the company to
the extent of but not exceeding R3 000, provided that a detailed estimate is first obtained and immediately forwarded to the company. The company
will also pay the reasonable cost of delivery of the vehicle to the insured, after repair of such loss or damage, not exceeding the reasonable cost
of transport to the permanent address of the insured in the Republic of South Africa, Namibia, Botswana, Lesotho, Swaziland, Mozambique,
Zimbabwe or Malawi.
Conditions:
1.
the limit of indemnity for each type of vehicle is stated in the schedule and shall be the maximum amount payable by the company in
respect of such loss or damage, but shall not exceed the reasonable market value of the vehicle and its accessories and spare parts at
the time of such loss or damage
2. the company may, at its own option:
a) b) repair, reinstate or replace such vehicle or any part thereof and/or its accessories and spare parts or
pay in cash the amount of the loss or damage not exceeding the reasonable market value of such vehicle and/or its accessories
and/or spare parts at the time of such loss or damage
3. if, to the knowledge of the company, the vehicle is the subject of a suspensive sale or similar agreement, such payment in cash may be
made to the owner described therein whose receipt shall be a full and final discharge by the company in respect of such loss or damage
4. in respect of each and every occurrence giving rise to a claim (except a claim resulting from fire, lightning or explosion) under this
subsection A, the insured shall be responsible for the first amounts payable stated in the schedule (according to the type of vehicle) of:
a) any expenditure for which provision is made under this sub-section A (including any payment in respect of costs, expenses and
fees),
b) any expenditure by the company in the exercise of any discretion it may have under this section 20 of the policy.
If the expenditure incurred by the company shall include any first amount payable for which the insured is responsible, such amount shall
be paid by the insured to the company forthwith.
5. the company shall not be liable for more than R4 000.00 (after deduction of the first amounts payable) in respect of the theft or attempted
theft of radios, tape-players and similar equipment or telephones not supplied by the manufacturers of the vehicle when new.
Exceptions to sub-section A
The company shall not be liable to pay for:
a) consequential loss as a result of any cause whatsoever, depreciation in value whether arising from repairs following a defined event or
otherwise, wear and tear, mechanical or electrical breakdowns, failure or breakages
b) damage to tyres by application of brakes or by road punctures, cuts or bursts
c) damage to springs/shock absorbers due to inequalities of the road or other surface or to impact with such inequalities
d) detention, confiscation or requisition by customs or any other officials or authorities.
Motor - Page 1 of 8 - Section 20
95
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
MOTOR - SECTION 20
Extensions
1. Wreckage removal extension
The cover provided under this sub-section A is extended to include costs and expenses incurred by the insured in respect of the clearing
up and removal of debris and wreckage of any insured vehicle following damage to such vehicle by a defined event, provided that, in
addition to the limit of indemnity under this sub-section A, the limit of the company’s liability under this extension shall not exceed R10 000
in respect of any one occurrence.
2. Credit shortfall extension
If any total loss settlement under this sub-section A is less than the amount owing to the financier under a current installment sale or lease
agreement, the company will pay to the insured an additional amount equal to the shortfall less:
a) any arrear installments or rentals including interest payable on such arrears
b) all refunds of premium for cancellation of any insurance cover relating to the motor vehicle
c) the increased installments or rentals that would have been paid had there been no residual capital value at the end of the finance
period, calculated to the month in which the claim is settled provided always that
(i) the amounts payable shall not exceed the maximum indemnity plus the amount shown on the schedule less the first amount
payable under this sub-section A
(ii) this extension shall not apply to an agreement whereby the amount of any single installment other than the final residual
amount after the initial payment differs by more than 10% from any other installment
(iii) if such shortfall is as a result of a re-advance under an installment sale or refinancing in terms of a lease, the insurance by this
extension shall be void.
SUB-SECTION B - LIABILITY TO THIRD PARTIES
Defined events
Any accident caused by or through or in connection with any vehicle described in the schedule or in connection with the loading and/or unloading
of such vehicle, in respect of which accident the insured and/or a passenger becomes legally liable to pay all sums (including claimant’s costs and
expenses) in respect of:
a) death of or bodily injury to any person, but excluding death of or bodily injury to any person in the employ of the insured arising from
and in the course of such employment or being a member of the same household as the insured
b) damage to property, other than property:
(i) belonging to the insured
(ii) or held in trust by or in the custody or control of the insured
(iii) or being conveyed by, loaded onto or unloaded from such vehicle.
The company will also, in terms of and subject to the limitations of and for the purposes of this sub-section B,
1. pay all costs and expenses incurred with the company’s prior written consent, and shall be entitled at its discretion to arrange, for
representation
a) at any inquest or inquiry in respect of any death which may be the subject of indemnity under this sub-section B,
b) for defending in any magistrate’s court any criminal proceedings in respect of any act causing or relating to any event which may
be the subject of indemnity under this sub-section B,
indemnity stated to apply to sub-section B.
2. provided that the total of the company’s liability under both this extension and sub-section B as a whole shall not exceed the limit of
indemnify any person who is driving or using such vehicle on the insured’s order or with the insured’s permission provided that:
a) such person shall, as though he were the insured, observe, fulfil and be subject to the terms, exceptions and conditions of this
policy in so far as they can apply
b) such person driving such vehicle has not been refused any motor insurance or continuance thereof by any insurer
c) indemnity shall not apply in respect of claims made by any member of the same household as such person
d) such person is not entitled to indemnity under any other policy except in respect of any amount not recoverable thereunder
e) such person may not claim directly from the company but shall claim through the insured
3. indemnify the insured while personally driving or using any private type motor car not belonging to the insured and not leased or hired by
the insured under a lease or suspensive sale agreement, provided that:
a) the insured is an individual and has insured under this policy a vehicle described under definition 2 (a) or (b) and
b) the company shall not be liable for damage to the vehicle being driven or used.
4. indemnify the insured in respect of liability arising from the towing by a vehicle (other than for reward) of any other vehicle or trailer
(including liability in connection with the towed vehicle or trailer), provided the company shall not be liable for damage to the towed vehicle
or trailer or to property therein or thereon.
Motor - Page 2 of 8 - Section 20
96
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
MOTOR - SECTION 20
Exceptions to sub-section B
The company shall not be liable under this sub-section B in respect of
a) so much of any compensation or claim as falls within the scope of any compulsory motor vehicle insurance enactment. This exception shall
apply notwithstanding that no insurance under such enactment is in force or has been effected
b) death of or injury to any person being carried in or upon or entering or getting onto or alighting from a vehicle described in definition 2 (b),
(c), (d) or (e) at the time of the occurrence of the event from which any claim arises (except any person being carried in or upon or entering
or getting onto or alighting from a permanently enclosed passenger carrying compartment of a commercial vehicle with a gross vehicle
mass not exceeding 3500 kg)
c) liability arising from the operation, demonstration or use (for purposes other than maintenance or repair of the vehicle) of any tool or plant forming
part of or attached to or used in connection with a vehicle or anything manufactured by or contained in any such tool or plant. This exception
shall not apply to forklift trucks.
Extensions
1. Contingent liability extension (if stated in the schedule to be included)
The indemnity under this sub-section B includes claims made against:
a) the insured in the event of an accident arising in the course of the business and caused by or through or in connection with any
motor vehicle not the property of or provided by the insured, while being used by any partner or director or employee of the insured
(referred to in this extension as “such person”)
b) any such person in the event of an accident arising in the course of the business and caused by or through or in connection with
any motor vehicle not belonging to him or to the insured or leased or hired by either of them, but only in so far as such person has
not been refused any motor insurance or continuance thereof by any insurer
provided that
(i) all the words in (b) of the exceptions to this sub-section B are deleted
(ii) the company shall not be liable for loss or damage to any motor vehicle being used for the purposes and in the manner described
in (a) and (b) above
(iii) the payment by the insured of subsidies or travelling allowances to such person for the use of his own vehicle for official purposes
of the insured, including the carriage of persons for such purposes, is allowed without prejudice to the cover provided by this
extension
(iv) if, at the time of the occurrence of any accident giving rise to a claim under this extension, the insured or such person is entitled
to indemnity under any other policy in respect of the same occurrence, the company shall not be liable to make any payment
hereunder except in respect of any excess beyond the amount payable under such other policy.
2. Passenger liability extension (if stated in the schedule to be included)
Exception (b) to this sub-section B shall not apply to vehicles described in definition 2 (b), other than special types, or in definitions 2 (c),
(d) or (e).
3. Unauthorised passenger liability extension (if stated in the schedule to be included)
The indemnity under this sub-section B, notwithstanding exception (b), extends to cover the insured’s legal liability for death of or bodily
injury to persons while being carried in or upon or entering or getting onto or alighting from any vehicle in contravention of the insured’s
instructions to their driver not to carry passengers.
4. Principals
Notwithstanding specific exception 2 of this section 20 of the policy, the indemnity under this sub-section B extends to indemnify, to the
extent required by the conditions of any contract of the Building Industries Federation of South Africa, and in connection with any liability
arising from the performance of such contract, any principal named in such contract entered into by the insured for the purposes of the
business.
SUB-SECTION C - MEDICAL EXPENSES
Defined events
If an occupant in the specified part of a vehicle (as described below), in direct connection with such vehicle, sustains bodily injury by violent,
accidental, external and visible means, the company will pay to the insured the medical expenses incurred as a result of such injury up to R2 000
per injured occupant but not exceeding R20 000 in total for all occupants injured as a result of an occurrence or series of occurrences arising out
of one event.
The amount payable under this sub-section C shall be reduced by any amount recoverable under any workmen’s compensation enactment or
similar legislation.
Motor - Page 3 of 8 - Section 20
97
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
MOTOR - SECTION 20
The term “medical expenses” includes any costs incurred to free such injured occupant from such vehicle or to bring such injured occupant to a
place where medical treatment can be given.
Defined vehicle, but only if it is insured under sub-section A of this section 20 of the policy
Specified part of vehicle in which the injury must occur
1. Any private type motor car or motorised caravan Anywhere inside the vehicle
2. Any other type of insured vehicle other than a bus or taxi The permanently enclosed passenger carrying compartment
GENERAL
Warranty of Roadworthiness / Compliance
The insured warrants that the insured vehicle/s are and will at all times be kept in a condition which complies with any legislation or regulation relating
to the roadworthiness or operation of vehicles in the territory in which such vehicle is being used.
No claim rebate provisions (applicable to specified vehicle basis)
In the event of no claim being made or arising under this policy during a period of insurance specified below immediately preceding the renewal of
this policy, the renewal premium for the insurance of the vehicles will be based on the relevant Claim-Free Group as follows:
Period of Insurance the preceding year Claim-Free Group
1
the preceding two consecutive years 2
the preceding three consecutive years 3
the preceding four consecutive years 4
the preceding five or more consecutive years 5
Otherwise than above, Claim-Free Group 0 applies.
If one or more claims are made or arise under this policy during a period of insurance for which the premium is based on a claim free group, such
claim free group will be reduced by 2. For each subsequent renewal the claim free group will, if there have been no claims, increase by 1.
Should the company consent to a transfer of interest in this policy, the period during which the interest was in the transfer or shall not accrue to the
benefit of the transferee.
If more than one vehicle is described in the schedule to this policy, the Claim-Free Group shall be applied as if a separate policy had been issued
in respect of each such vehicle.
Limits of indemnity
Unless otherwise stated, the liability of the company under this section 20 of the policy in respect of any one occurrence shall not exceed the limits
of indemnity as stated in the schedule.
EXTENSIONS
1. Parking facilities and movement of third party vehicles extension
This section 20 extends to indemnify the insured up to an amount not exceeding R1 000 000 in respect of accidents caused by or through
or in connection with the moving of any vehicle (not owned or borrowed by or hired or leased to the insured) from place to place on the
same premises by any person in the employment of the insured or acting on the insured’s behalf, provided always that such vehicle was
being moved
a) with the authority of any tenant, customer or visitor of the insured or
b) in connection with the insured’s parking arrangements or
c) to facilitate the carrying out of the insured’s business,
and provided further that the extension shall not apply in respect of damage to vehicles which are parked for reward. For the purpose of
this extension, such vehicle (and it contents) shall not be deemed to be held in trust by, or in the custody or control of, the insured.
2. Windscreen extension
The provisions of this section 20 relating to first amount payable and No Claim Rebate shall not apply to any payment for damage to
windscreen glass, side or rear glass forming part of any vehicle, provided that:
a) no other damage has been caused to the vehicle giving rise to a claim under the policy
b) the insured shall be responsible for the first amount payable (applicable to glass) stated in the schedule of each and every loss.
3. Waiver of subrogation rights
For the purposes of this section 20, the company waives all rights of subrogation or action which it may have or acquire against any other
person who is indemnified under this section 20, and each such person shall observe, fulfil and be subject to the terms, exceptions an
conditions (both general and specific) of this policy in so far as they can apply.
Motor - Page 4 of 8 - Section 20
98
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
MOTOR - SECTION 18
4. Cross liabilities
Where more than one insured is named in the schedule, the company will indemnify each insured separately and not jointly, and any
liability arising between such insured shall be treated as though separate policies had been issued to each, provided that the aggregate
liability of the company shall not exceed the limit of indemnity stated in the schedule.
5. Riot and strike extension
Subject otherwise to the terms, conditions, exclusions, exceptions and warranties contained therein, this section 20 is extended to cover
loss or damage directly occasioned by or through or in consequence of:
(i) (ii) civil commotion, labour disturbances, riot, strike and lockout;
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) loss or damage occurring in the Republic of South Africa and Namibia;
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;
e) loss or damage related to or caused by any occurrence referred 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 provisos (a), (b), (c), (d) or (e), loss or damage is not covered by this section 20, the burden of
proving the contrary shall rest on the insured.
6. Loss of keys extension
The company will indemnify the insured in respect of the cost of replacing locks and keys, including the remote alarm controller and, if
necessary, the reprogramming of any coded alarm system of any insured vehicle, following upon the disappearance of any key or alarm
controller of such vehicle or following upon the insured having reason to believe that any unauthorised person may be in possession of a
duplicate of such key or alarm controller provided that the company’s liability shall not exceed R10 000, in respect of any one event
The provisions of this section 20 relating to first amount payable and No Claim Rebate shall not apply to this extension.
7. Fire extinguishing charges extension
Any costs (not exceeding R10 000) 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 20, provided the insured
is legally liable for such costs and the insured property was in danger from the fire.
8. Replacement value provision
If the vehicle insured is a car as defined under definition 2(a) or a light commercial vehicle with a gross vehicular mass not exceeding 3
500 kg and it was purchased by the insured as new within 12 months of an event giving rise to a claim, the company may at its option either
pay for a replacement vehicle or the current new replacement cost of the vehicle provided that:
8.1 the vehicle was lost or stolen and not recovered
8.2 the cost of repairs exceeds 60% of the amount for which it is insured
8.3 the vehicle has not been driven for more than 30 000 kilometres since new
8.4 the company will not pay more than the amount for which the vehicle is insured less the first amount payable.
The lost, stolen or damaged vehicle will then belong to the company.
9. Loss of use following theft
If a car as defined under definition 2(a) or a light commercial vehicle with a gross vehicular mass not exceeding 3 500 kg is stolen, the
company will arrange for the hire of a replacement vehicle with an engine capacity not exceeding 1 600 cm3 if the vehicle is a car or
2 000 cm3 if the vehicle is a light commercial vehicle for a maximum period of 30 days provided that:
a) cover in terms of this extension will not apply during the first 3 working days from the time of the theft and shall be subject to the
company having admitted the claim
the period of hire shall cease at the time that either:
b) (i) (ii) the vehicle is recovered and returned to the insured; or
the vehicle is returned to the insured after any repairs that may be necessary if there was damage to the vehicle following
recovery of the vehicle; or
(iii) the day the claim is settled,
whichever occurs first.
The terms of such hire shall exclude any fuel deposits, delivery or collection costs or administration costs chargeable by the vehicle hire
firm and shall be subject to the standard terms and conditions of the vehicle hire firm.
Motor - Page 5 of 8 - Section 20
99
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
MOTOR VEHICLES - SECTION 20
Loss of use following accidental damage but not theft – applicable to cars as defined under definition 2(a) (if stated in
the schedule to be included)
If the vehicle is damaged other than by theft or any attempted theft, the company will arrange for the hire of a replacement vehicle with an
engine capacity not exceeding 1 600 cm3 for a maximum period of 30 days provided that
10. a) cover in terms of this extension will not apply during the first 3 working days from the time of the event giving rise to the claim and
shall be subject to the insurer having admitted the claim
the period of hire shall:
b) (i) commence not later than 3 days from the time the vehicle was delivered for repairs; and
(ii) cease:
a) on the day the vehicle is returned to the insured after repairs have been completed; or
b)
if the claim is treated as a total loss claim, on the day the claim is settled.
The terms of such hire shall exclude any fuel deposits, delivery or collection costs or administration costs chargeable by the vehicle hire
firm and shall be subject to the standard terms and conditions of the vehicle hire firm.
11. Loss of use following accidental damage but not theft – applicable to light commercial vehicles with a gross vehicle
mass not exceeding 3 500 kg (if stated in the schedule to be included)
If the vehicle is damaged other than by theft or any attempted theft, the company will arrange for the hire of a replacement vehicle with an
engine capacity not exceeding 2000 cm3 for a maximum period of 30 days provided that
a) cover in terms of this extension will not apply during the first 3 working days from the time of the event giving rise to the claim and
shall be subject to the insurer having admitted the claim
the period of hire shall:
b) (i) commence not later than 3 days from the time the vehicle was delivered for repairs; and
(ii) cease:
a) on the day the vehicle is returned to the insured after repairs have been completed; or
b) if the claim is treated as a total loss claim, on the day the claim is settled.
The terms of such hire shall exclude any fuel deposits, delivery or collection costs or administration costs chargeable by the vehicle hire firm and
shall be subject to the standard terms and conditions of the vehicle hire firm.
MEMORANDA
1.
Premium adjustment clause
If this section 20 is issued on a non-specified vehicle basis, the insured shall submit to the company at the end of each period of insurance
a declaration of the total number of vehicles owned, hired or leased at such expiry date. The company shall, upon receipt of this declaration,
make a premium adjustment of 50 per cent of the annual rate per vehicle applied to the difference in the number of vehicles at inception or
renewal and the number declared.
2. War clause
In respect of sub-sections B and C only, General exception 1 is deleted and replaced by the following:
This section does not cover war, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, mutiny, insurrection,
rebellion, revolution, military or usurped power or terrorism.
3. Description of use clause
Use for social, domestic and pleasure purposes and use for the business or occupation of the insured.
excluding:
a) hiring;
b) carriage of passengers for hire or carriage of fare-paying passengers;
c) racing, speed or other contests rallies or trials;
d) carriage of explosives or carriage of any load of passengers exceeding the capacity for which it is constructed or licensed to carry; or
e)
use for any purpose in connection with the motor trade. The indemnity to the insured in connection with any vehicle shall operate
while such vehicle is in the custody or control of a member of the motor trade for the purpose of its overhaul, upkeep or repair.
4. Annual aggregate excess (applicable if so stated in the schedule)
a
If a Stop Loss Limit applies
The insured shall be responsible for the aggregate of all losses up to the amount stated in the schedule occurring during the period
of insurance after deduction of the first amount payable for each and every claim and thereafter the company shall indemnify the
insured for all losses occurring during the period of insurance and after deduction of the amounts stated under first amount
payable
Motor - Page 6 of 8 - Section 20
100
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
MOTOR - SECTION 20
provided that
(i) all assessors’ legal and other fees and expenses and all towing expenses incurred in connection with any one claim shall be
deemed to be part of that claim;
(ii) only claims reported to the company and assessed if deemed necessary by the company qualify for inclusion in the aggregate
amount stated in the schedule’;
(iii) only claims under sub-section A shall be considered as claims in terms of this endorsement;
(iv) if it is stated in the schedule that stop loss applies in the event of any one claim exceeding the stop loss amount shown in the
schedule such claim after deduction of the first amount payable plus the stop loss amount will not count towards the aggregate
excess amount stated in the schedule;
(v) all amounts shall include tax;
(vi) if this policy is cancelled or if the period of insurance is reduced to less than 12 months the annual aggregate excess shall be
reduced proportionately;
(vii) if the period of insurance is extended to more than 12 months the annual aggregate excess shall be increased
proportionately.
b
If a Stop Loss Limit does not apply
The insured shall be responsible for the aggregate of all losses up to the amount stated in the schedule occurring during the period
of insurance after deduction of the first amount payable for each and every claim and thereafter the company shall indemnify
the insured for all losses occurring during the period of insurance and after deduction of the amounts stated under first amount
payable provided that
(i) all assessors’ legal and other fees and expenses and all towing expenses incurred in connection with any one claim shall be
deemed to be part of that claim;
(ii) only claims reported to the company and assessed if deemed necessary by the company qualify for inclusion in the
aggregate amount stated in the schedule;
(iii) only claims under sub-section A shall be considered as claims in terms of this endorsement;
(iv) all amount shall include tax;
(v) if this policy is cancelled or if the period of insurance is reduced to less than 12 months the annual aggregate excess shall
be reduced proportionately;
(vi) if the period of insurance is extended to more than 12 months the annual aggregate excess shall be increase
proportionately.
OPTIONAL LIMITATIONS
Third party only limitation (if stated in the schedule to be applicable)
Sub-section A and C and the No-Claim Rebate provisions are cancelled.
Third party, fire and theft only limitation (if stated in the schedule to be applicable)
The liability of the company under sub-section A is restricted solely to loss or damage resulting from fire, self-ignition, lightning or explosion or by
theft or any attempted theft. Further, sub-section C and the No-Claim Rebate provisions are cancelled.
SPECIFIC EXCEPTIONS
1. The company shall not be liable for any accident, injury, loss, damage or liability:
a) whilst the vehicle is being used with the general knowledge and consent of the insured otherwise than in accordance with the
description of use clause;
b) incurred outside the Republic of South Africa, Namibia, Botswana, Lesotho, Swaziland, Mozambique, Zimbabwe and Malawi, but
the insurers will indemnify the insured against loss of or damage to any vehicle while in transit by sea or air between ports or places
in these territories including loading and unloading incidental to such transit;
incurred while any vehicle is being driven by:
c) (i) the insured while under the influence of intoxicating liquor or drugs (unless administered by or prescribed by and taken in
accordance with the instructions of a member of the medical profession other than the insured ) or while not licensed to drive
such vehicle
(ii) any other person with the general consent of the insured who, to the insured’s knowledge, is under the influence of
intoxicating liquor or drugs (unless administered by or prescribed by and taken in accordance with the instructions of a
member of the medical profession other than the insured ) or who is not licensed to drive such vehicle, but this shall not apply
if the insured was unaware that the driver was unlicensed and the insured can prove to the satisfaction of the company that,
in the normal course of his business, procedures are in operation to ensure that only licensed drivers are permitted to drive
insured vehicles
(iii) the insured, or any other person with the general consent of the insured, when the insured or that other person has more than
the legal limit of alcohol in his or her blood or breath
provided that any driver shall be deemed to be licensed to drive the vehicle if he is complying with the licensing law relating to any
of the territories referred to under specific exception 1(b), or if non-compliance with any licensing law is solely because of failure to
renew any licence subject to periodic renewal, or if a licence is not required by law, or while such driver is learning to drive and is
complying with the laws relating to learners.
Motor - Page 7 of 8 - Section 20
101
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
MOTOR - SECTION 20
If the company alleges that, by reason of provisos (a), (b) or (c), loss or damage is not covered by this section 20, the burden of proving
the contrary shall rest on the insured.
2. The company shall not be liable for any claim arising from contractual liability, unless such liability would have attached to the insured
notwithstanding such contractual agreement.
SPECIFIC CONDITION
If, during the currency of this section 20, any driver’s licence in favour of the insured or their authorised driver is endorsed, suspended or cancelled,
or if either of them is charged or convicted of negligent, reckless or improper driving, notification shall be sent in writing to the company immediately
the insured has knowledge of such fact.
Motor - Page 8 of 8 - Section 20
102
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
ADDITIONAL TERMS, CONDITIONS AND
PROVISIONS APPLICABLE TO
SECTIONS 21, 22 AND 23
Definitions
Accident means a sudden, unexpected and specific event, which occurs at an identifiable time
(moment or point of time) and place, which results in Bodily Injury.
Aids means an opportunistic infection or a malignant neoplasm. For the purpose of this
definition, the term “Acquired Immune Deficiency Syndrome” shall have the meaning
assigned to it by the World Health Organisation. “Opportunistic infection” shall include
but not be limited to pneumonia caused by pneumocystis carini, the organism of chronic
enteritis virus and/or disseminated fungal infections. “Malignant Neoplasm” shall include
but not be limited to Kaposi’s Sarcoma, lymphoma of the central nervous system and or
other malignancies now known or which may become known as immediate causes of
death in the presence of Acquired Immune Deficiency Syndrome. “Acquired Immune
Deficiency Syndrome” shall include H.I.V. (Human Immune Deficiency Virus),
encephalathy (dementia) or H.I.V. wasting syndrome. Bodily Injury means physical trauma to an Insured Person caused by an Accident resulting, solely
and independently of any other cause or any other physical defect or infirmity existing
prior to the Accident, in an Insured Event as stated in the Personal Accident Table of
Benefits within 24 months of the date of the Accident. Physical trauma caused by
exposure to the elements of nature as a direct result of an Accident will be deemed to be
a bodily injury.
Date of Loss means (a) for Illness, the first date of diagnosis or the date the Insured Person first
became aware of the Illness, whichever occurs earlier; (b) for Bodily Injury, the date of
the Accident.
Disappearance means the disappearance of an Insured Person, where it is probable that such Insured
Person has died or where such Insured Person is legally declared dead by a court of law,
as a result of an Accident. The Death benefit shall be payable after 24 consecutive
months of such disappearance. If it is discovered that the Insured Person has not died,
then the benefit so paid shall be repaid to the company.
Excess means the initial amount or period for which no benefit is payable.
Foot means the entire foot below the ankle.
Hand means the entire hand below the wrist.
Hospital means a legally constituted establishment operated pursuant to the laws of the country
in which it is based which meets all of the following requirements:
a) it operates primarily for the reception, medical care and treatment of sick, ailing or
injured persons on a resident in-patient basis;
b) it admits resident in-patients only under the supervision of a Medical Practitioner;
c) it maintains organised facilities for the medical diagnosis and treatment of such
persons and provides (where appropriate) facilities for major surgery within the
confines of the establishment or in facilities controlled by the establishment;
d) it provides a full-time nursing service by or under the supervision of a staff of
nurses;
e) Immediate Medical Treatment it is not a day clinic, health hydro or nature cure clinic, a mental institution, an
institution confined primarily to the treatment of psychiatric disease, the psychiatric
department of a hospital, a place for the treatment of chemical dependency, an
establishment or a special unit of a hospital used primarily as a place for treatment
of drug addicts or alcoholics, a hospice, a frail care centre, a rest home or a
nursing, convalescent, rehabilitation, assisted living or extended care facility.
means a Medical Practitioner’s treatment, consultations and prescribed or repeat
maintenance medication in respect of treatment commencing within 24 hours of the time
and date of the Bodily Injury.
Insured Event means the list of insured events stated in the Schedule and/or Table of Benefits.
Medical Practitioner means a person registered with a current, legal licence to practise medicine, but
excludes an Insured Person or a member of any Insured Person’s immediate family.
Permanent and Incurable Insanity Permanent and Incurable Paralysis Permanent and Total Loss Permanent and Total Loss of Hearing Permanent and Total Loss of Sight Permanent and Total Loss of Speech Additional Terms, Conditions and Provisions Applicable to
Sections 21, 22 and 23 - Page 1 of 6
means the Insured Person being diagnosed as permanently and incurably insane
according to the usual and customary standards of the registered medical profession.
means the complete and permanent loss of use of arms or legs, or one arm and one leg,
through paralysis.
means the loss by physical severance or the permanent and total loss of use of a Hand,
Foot, thumb, toe, arm or a leg.
means the total, irreversible loss of hearing of all sounds confirmed by medical evidence
relying on audio-metric and sound-threshold tests.
means the total, irreversible loss of sight. Loss of sight will be deemed to have occurred
if the degree of sight remaining after correction is 3/60 or less on the Snellen scale.
means the total and irrecoverable loss of the ability to speak. “Loss of the ability to
speak” means the inability to make a comprehensible word or an understandable verbal
language.
103
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
ADDITIONAL TERMS, CONDITION AND
PROVISIONS APPLICABLE TO
SECTIONS 21, 22 AND 23
Permanent Disability means any one or more of the disabilities stated in point 3 of the Personal Accident Table
of Benefits.
Permanent Total Disablement means total and absolute disablement which entirely prevents an Insured Person from
engaging in or giving attention to his or her usual occupation or any occupation for which
the Insured Person is qualified or has received specialised training and which will in all
probability be lasting and continuous for the lifetime of the Insured Person.
Professional Player means an Insured Person who earns in excess of 50% of his or her income from playing
sport or who participates in a sport that remunerates him or her as a means of livelihood.
Reasonable and Customary Charges
means the charges which are required for the treatment, supplies or medical service
medically required to treat an Insured Person’s condition; do not exceed the usual level
of charges for similar treatment, supplies or medical services in the locality where the
expenses are incurred; and do not exceed the charges for treatment that would have
been made if no insurance existed.
Terrorist Act means any actual or threatened use of force or violence directed at or causing damage,
injury, harm or disruption, or commission of an act dangerous to human life or property,
against any individual, property or government, with the stated or unstated objective of
pursuing economic, ethnic, nationalistic, political, racial or religious interests, whether
such interests are declared or not. Robberies or other criminal acts primarily committed
for personal gain and acts arising primarily from prior personal relationships between
perpetrator/s and victim/s shall not be considered Terrorist Acts. ”Terrorist Act” also
includes any act which is verified or recognised by the (relevant) government as an act
of terrorism.
War means war, whether declared or not, or any warlike activities (including use of military
force) by any sovereign nation to achieve economic, geographic, nationalistic, political,
racial, religious or other ends.
General Conditions
1. The insured shall give notice to the company within 90 days of any material change in its business.
2. The company or the insured may cancel sections 21, 22 and 23 of the policy by giving 30 days notice in writing to the other party. In such
event the insured shall be entitled to a pro-rata refund of premium subject to any minimum premium or adjustable premium provisions. If
the insured fails to pay the required premium on the due date, cover in respect of the insured shall not incept or (in the case of a renewal)
shall terminate at the end of the current policy period.
3. The onus will always be on the insured or the Insured Person to ascertain, correctly admit and pay any tax liability in consideration of any
benefit being paid that may in any form whatsoever incur tax or imposts of any nature.
4. All periods of insurance under sections 21, 22 and 23 of the policy shall begin and end at 00H00 South African time.
5. Sections 21, 22 and 23 of the policy shall not be valid unless a schedule relating to the section is attached so as to form part of the policy
and no alteration or addition to or variation or waiver by the company or any of the company’s rights against the insured or the Insured
Person shall be in force or effect unless reduced to writing and signed by the company.
6. Should any discrepancies arise between this policy and any literature received by the insured or the Insured Person, the terms, conditions,
endorsements, terminations and exclusions in this policy will govern in all cases.
General Claims Conditions
1. Notice of claim and proof of loss
a) The insured must give the company notice in writing within 90 days of an Accident or any occurrence which may give rise to a claim
under sections 21, 22 and 23 of the policy. Notwithstanding this notice requirement, any benefit related to death (including Final
Expenses if applicable) will only be payable if the company receives written notification of the death within 30 days. The company
shall have the right to have a post mortem examination of the body conducted.
b) Except for sub-section 2 – Personal Accident of section 23 of the policy, the insured must give the company notice in writing within
30 days of an Accident or any occurrence which may give rise to a claim under section 23 of the policy.
c) The insured must, at its own cost (subject to the Claim Preparation Cost extension under section 21 of the policy), provide whatever
certificates, information and documented evidence (“evidence”) is required by the company regarding the Accident, Bodily Injury or
Insured Event.
Evidence 2. All evidence shall be furnished in the form prescribed and must be submitted to the
Company within 90 days of the insured’s notification in terms of claims condition 1.
Medical Examination 3. The Insured Person shall submit to medical examination on behalf of and at the expense
of the company as often as shall be required in connection with any claim. Any report
generated as a result of such examination shall be the property of the company and shall
be deemed to be confidential information of the company.
Medical advice and/or treatment 4. Qualified medical advice and/or treatment shall be sought and followed promptly on the
occurrence of any Bodily Injury, or an Illness under section 23 of this policy. The
company shall not be liable for that part of any claim which in the opinion of its medical
adviser arises from the unreasonable or wilful neglect or failure of an Insured Person to
seek the advice of or remain under the care of a qualified Medical Practitioner.
Legal action 5. If the company denies liability in respect of any claim and the insured or the Insured
person does not institute legal action and serve summons on the company (or initiate
arbitration proceedings if the company has agreed to submit to arbitration) within 12
months after such repudiation, all benefits under section 21, 22 and 23 of the policy in
respect of such claim shall be forfeited.
Additional Terms, Conditions and Provisions Applicable to
Sections 21, 22 and 23 - Page 2 of 6
104
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
ADDITIONAL TERMS, CONDITIONS AND
PROVISIONS APPLICABLE TO
SECTIONS 21, 22 AND 23
6.
Diagnosis of Permanent Total The diagnosis and determination of Permanent Total Disablement or any Permanent Disability
Disablement or Permanent
must be made and documented by a Medical Practitioner and must be continuous and
Disability permanent for at least 24 consecutive months from the onset of the disablement. However:
a) for Permanent and Total Loss of Speech, the loss of the ability to speak must be continuous
and permanent for at least 12 consecutive months and medical evidence must confirm injury to
the vocal chords and all psychiatric related causes must be excluded; and
b) for Permanent and Incurable Paralysis, the loss of use must be continuous and permanent for
at least 12 consecutive months from the onset of the paralysis.
Interest 7. No sum payable under sections 21, 22 and 23 of the policy shall carry interest under any
circumstances.
VAT 8
The company agrees that it will pay VAT in respect of any claim or settlement paid in terms of
sections 21 and 22 of the policy.
Criminal incidents 9. All claims arising from criminal incidents are to be supported and accompanied by a certified
police report.
10. The due observance and fulfilment of the terms, conditions, endorsements, terminations and exclusions of the policy insofar as they are
related to anything being done or complied with by the insured or the Insured Person shall be a condition precedent to liability to make any
payment under sections 21, 22 and 23 of this policy.
General Exclusions
The company will not be liable to pay any benefit under sections 21, 22 and 23 of the policy in respect of any Insured Person for any Insured Event
caused by or arising directly or indirectly from:
1. direct participation in any violent labour disturbances, strike, lock-out, riot, civil commotion or public disorder;
2. being in service or on duty with or undergoing training with any military, police force, militia or paramilitary organisation;
3. participating in any sport as a Professional Player;
4. investigations, operations or treatment of a purely cosmetic nature other than as a direct result of an Accident;
5. mental disorders including, but not limited to eating disorders, anxiety disorders, psychotic disorders, affective disorders, personality
disorders, substance use disorders, somatoform disorders, dissociate disorders, psychosexual disorders, adjustment disorders, organic
mental disorders, mental retardation and autism unless caused by an Accident;
6. War, invasion, act of foreign enemy, hostilities, civil war, rebellion, revolution, insurrection or military or usurped power;
7. the intentional use of military force to intercept, prevent, or mitigate any known or suspected Terrorist Act;
8. any Terrorist Act or bomb incident or threat thereof;
9. the use, release or escape of nuclear materials that directly or indirectly results in ionising, radiation or contamination by radioactivity from
any nuclear fuel or from nuclear weapons or materials. For the purpose of this exclusion only, combustion shall include any self-sustaining
process of nuclear fission;
10. the dispersal or application of pathogenic or poisonous biological or chemical materials;
11. wilful or deliberate exposure to danger (except in an attempt to save human life), intentional self inflicted injury, suicide or attempt thereat,
or arising out of non-adherence to medical advice;
12. the conditions commonly known as AIDS or HIV and/or any related illness or condition including derivatives or variations thereof,
howsoever, acquired or caused;
13. a) an Insured Person being under the influence of alcohol with more than the legal limit of alcohol in his blood or breath; or
b) an Insured Person being under the influence of drugs or narcotics unless such drugs or narcotics were administered by a Medical
Practitioner or unless prescribed by and taken in accordance with the directions of a Medical Practitioner; or
c) an Accident occurring whilst an Insured Person was driving a motor vehicle with more than the legal limit of alcohol in his or her
blood or breath; or
d) alcoholism, substance abuse, solvent abuse, drug abuse or addictive conditions of any kind;
14. deliberate violation of criminal law;
15. the failure of any agent or broker to explain adequately the terms, conditions, endorsements, terminations and exclusions of sections of
this policy.
If the company alleges that by reason of clauses 11, 12, 13 or 14 of the above exclusions, loss or damage is not covered by sections 21, 22 and 23
of the policy, the burden of proving the contrary shall rest on the insured.
Additional Terms, Conditions and Provisions Applicable to
Sections 21, 22 and 23 - Page 3 of 6
105
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
ADDITIONAL TERMS, CONDITIONS AND
PROVISIONS APPLICABLE TO
SECTIONS 21, 22 AND 23
Personal Accident Table of Benefits
INSURED EVENT
SUM INSURED EXPRESSED AS A PERCENTAGE
SECTION 21 Group Personal
SECTION 22 Image Protector
SECTION 23 World Business
Card
1. Death
a) Death as a result of an Accident
100%
100%
100%
b) Disappearance
100%
No Cover
100%
c) Death as a direct result of exposure to the elements of nature as a
direct result of an Accident
100%
No Cover
100%
2. Permanent Total Disablement
a) Permanent Total Disablement as a result of an Accident
100%
100%
100%
b) Permanent Total Disablement as a direct result of exposure to the
elements of nature as a direct result of an Accident
100%
No Cover
100%
3.1 Permanent and Total Loss of:
100%
100%
100%
a) Both Hands or both Feet
100%
100%
100%
b) One Hand and one Foot
100%
100%
100%
c) Either Hand or Foot and sight of one eye
50%
50%
50%
a) Both eyes
100%
100%
100%
b) One eye
50%
50%
50%
a) Both ears
75%
75%
75%
b) One ear
25%
25%
25%
3.4 Permanent and Total Loss of Speech
100%
100%
100%
3.5 Permanent and Incurable Insanity
100%
100%
100%
3.6 Permanent and Incurable Paralysis
100%
100%
100%
3.7 Permanent and Total Loss of four fingers and thumb
of either hand
70%
70%
70%
3.8 Permanent and Total Loss of four fingers of either hand
40%
40%
40%
a) Both joints
30%
30%
30%
b) One joint
15%
15%
15%
3. Permanent Disability
d) One Hand or one Foot
3.2 Permanent and Total Loss of Sight in:
3.3 Permanent and Total Loss of Hearing in:
3.9 Permanent and Total Loss of thumb of either hand:
3.10 Permanent and Total Loss of a finger of either hand:
a) Three joints
10%
10%
10%
b) Two joints
7.5%
7.5%
7.5%
c) One joint
5%
5%
5%
a) All on one foot
15%
15%
15%
b) Great toe – both joints
5%
5%
5%
c) Great toe – one joint
3%
3%
3%
d) Other than great toe – each toe
1%
1%
1%
3.12 Fracture of leg or patella with established non-union
10%
10%
10%
3.11 Permanent and Total Loss of toes of either foot:
3.13 Shortening of leg by at least 5cm
3.14 Permanent disabilities not otherwise provided for under
Insured Events 3.1 – 3.13
Additional Terms, Conditions and Provisions Applicable to
Sections 21, 22 and 23 - Page 4 of 6
7.5%
7.5%
7.5%
Up to a maximum of
Up to a maximum of
Up to a maximum of
15%
15%
15%
106
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
ADDITIONAL TERMS, CONDITIONS AND
PROVISIONS APPLICABLE TO
SECTIONS 21, 22 AND 23
INSURED EVENT
SUM INSURED EXPRESSED AS A PERCENTAGE
4. Temporary Disability (if stated in the schedule to be included)
a) Temporary Total Disablement as a result of an Accident
SECTION 21 Group Personal
SECTION 22 Image Protector
SECTION 23 World Business
Card
Refer to schedule
(subject to Excess
period)
No cover
No cover
Refer to schedule
(subject to Excess
amount)
Actual costs not
exceeding the
Option Limit
selected in the
schedule
No cover
No cover
Actual costs not
exceeding the
Option Limit
selected in the
schedule
No cover
No cover
Actual costs not
exceeding the
Option Limit
selected in the
schedule
No cover
No cover
Actual costs not
exceeding the
Option Limit
selected in the
schedule
No cover
No cover
Actual costs not
exceeding the
Option Limit
selected in the
schedule
No cover
SECTION 21 Group Personal
SECTION 22 Image Protector
SECTION 23 World Business
Card
R5 000
No cover
No cover
Actual costs not
exceeding: R5 000
No cover
No cover
b) Temporary Partial Disablement as a result of an Accident
5. Medical Expenses (if stated in the schedule to be included)
Bodily Injury as a result of an Accident
6. Post Traumatic Stress Disorder
The actual cost to treat Post Traumatic Stress Disorder
7. Personal Effects (if stated in the schedule to be included)
The actual costs not exceeding the sum insured for damage
or theft of Personal Effects whilst on the Premises of the
insured
8. Abuse of Stolen Cheques and/or Credit Cards
(if stated in the schedule to be included)
The wrongful, improper or misuse of cheques and/or
credit cards that is stolen during any criminal activity
whilst on the Premises of the insured schedule
9. Cost of Replacement Documents
(if stated in the schedule to be included)
The actual costs not exceeding the sum insured for the
replacement of damaged or stolen documents
EXTENSIONS
a) Final Expenses
b) Repatriation/Body Transportation
Within South Africa:
Outside the borders of South Africa:
Actual costs not
exceeding: R10 000
c) Mobility
Actual costs not
exceeding: R15 000
No cover
No cover
d) Claims Preparation
Actual costs not
exceeding: R2 000
No cover
No cover
e) Emergency Transportation/Rescue
Actual costs not
exceeding: R5 000
No cover
No cover
10% of Insured
Person’s death
benefit up to
maximum of
R50 000 per
occurrence
No cover
No cover
A percentage of the
principal sum in direct
proportion to the
affected area but not
exceeding 50%
No cover
No cover
f) Seat Belt
g) Permanent Disfigurement
Additional Terms, Conditions and Provisions Applicable to
Sections 21, 22 and 23 - Page 5 of 6
107
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
ADDITIONAL TERMS, CONDITIONS AND
PROVISIONS APPLICABLE TO
SECTIONS 21,22 AND 23
Specific Provisos
1. The company shall not be liable to pay any Benefit under sections 21, 22 and 23 of the policy in respect of an Insured Person:
a) for Permanent Total Disablement unless the insured submits proof satisfactory to the company that the disablement will in all
probability continue for the remainder of the Insured Person’s life;
for more than 100% of the sum insured when more than one injury occurs arising out of the same Accident;
b) c) under more than one category for more than 100% of the sum insured as stated in the Personal Accident Table of Benefits. The
benefit payable shall be the highest within the appropriate category.
2. If the Insured Person sustains Permanent Total Disablement as a result of an Accident and the claim in relation to that disability is admitted
and accepted, the benefit will be paid and all cover under sections 21, 22 and sub-section 2 of section 23 of the policy in respect of such
Insured Person shall cease.
3. Any benefit will be subject to the sliding scale in the Personal Accident Table of Benefits.
4. The degree of Permanent Total Disablement will be determined immediately after it is established or as soon as it can reasonably be
assumed that there will be no further improvement or worsening of the Insured Person’s condition in consequence of the Accident, but not
later than 24 months from the Date of Loss.
5. If the consequences of an Accident are aggravated owing to an Insured Person’s existing ailment, infirmity or other abnormal physical or
mental condition, determination of the benefit will be based on the consequences the Accident would have had, had such defects not
existed. The foregoing shall not apply, however, if such circumstances are a consequence of an earlier Accident to the Insured Person, for
which benefit has been or will be paid under sections 21, 22 and 23 of the policy.
6.
If the Insured Person’s existing ailment, infirmity or other abnormal physical or mental condition is aggravated by an Accident, the
compensation may be claimed equivalent only to a percentage of the amount insured for an Insured Event pro rata to the difference in the
degree of ailment, infirmity or other abnormal physical or mental condition before and after the Accident. The degree of ailment, infirmity
or other abnormal physical or mental condition before the Accident will be determined by medical evidence.
7. If the Insured Person dies as a result of natural causes prior to the final disability assessment relating to an Insured Event, the company
will pay what reasonably would have had to be paid for such Permanent Disability in accordance with 1.b) above.
Additional Terms, Conditions and Provisions Applicable to
Sections 21, 22 and 23 - Page 6 of 6
108
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
GROUP PERSONAL ACCIDENT - SECTION 21
Defined Events
The company will pay the benefits shown in the Personal Accident Table of Benefits in the event of an Accident that occurs during the period of
insurance and that directly and within 24 months of the date of such Accident causes or results in a Bodily Injury and an Insured Event.
Specific Definitions
Any One Life Limit means the maximum liability of the company under this section 21 of the policy to any one Insured Person
specified in the schedule.
Aircraft Accumulation Limit means the maximum liability of the company under this section 21 of the policy in respect of any one
Accident or number of Accidents arising from one source or cause whilst travelling as a fare paying
passenger and airborne in an aircraft, including the insured’s private aircraft or a chartered aircraft.
Ground Accumulation Limit means the maximum liability of the company under this section 21 of the policy in respect of any one
Accident or number of Accidents arising from one source or cause.
Insured Person/s means an Insured Person referred to in the schedule.
Medical Expenses means the Reasonable and Customary Charges levied by a registered medical or paramedical practitioner
for actual costs incurred, up to the maximum limit stated in the Schedule and/or Personal Accident Table of
Benefits, as a result of an Accident if an Insured Person’s medical condition requires Immediate Medical
Treatment. “Medical Expenses” excludes any amount of any compensation recoverable by or on behalf of
an Insured Person under any occupational injury enactment or workmen’s compensation enactment or any
other similar legislation or any other insurance policy or medical aid scheme. “Medical Expenses” include
the cost of necessary medical or surgical treatment, services, or supplies, including necessary hospital,
nursing and ambulance services. “Medical Expenses” in respect of dental charges are limited to treatment
of Bodily Injuries sustained to sound natural teeth and received within 30 days of the time and Date of
Loss.
Permanent Disfigurement Salary or Wages or Earnings Temporary Partial Disablement Temporary Total Disablement means disfigurement of the external features or appearance including scarring as a result of a surgical
procedure required as a direct result of an Accident.
means the amount of remuneration paid to an Insured Person immediately preceding the date of the
Accident as basic salary or as calculated in accordance with a formula agreed in writing by the company at
inception or renewal, provided that in respect of an Insured Person employed by the insured under contract
for a period of less than one year the term “Salary or Wages or Earnings” means the average monthly
amount due to be paid to such person during the contract period.
means disablement substantially preventing an Insured Person from engaging in or giving attention to his
or her usual occupation until such time as the Insured Person has recovered or the Insured Person is
declared as having a Permanent Total Disablement. The company will not be liable to pay a benefit for a
Temporary Partial Disablement during the Excess period. This definition is only applicable if stated in the
schedule to be included.
means disablement wholly preventing an Insured Person from engaging in or giving attention to his or her
usual occupation until such time as the Insured Person has recovered or the Insured Person is declared as
having a Permanent Total Disablement. The company will not be liable to pay a benefit for a Temporary Total
Disablement during the Excess period. This definition is only applicable if stated in the schedule to be
included.
Specific Conditions
1. This section 21 of the policy cannot be ceded, assigned or in any way transferred to a third party. Benefits shall be payable only to the
insured or its legal representative whose receipt shall discharge the company.
2. This section 21 of the policy is between the company and the insured only and all of its provisions and conditions are for the sole and
exclusive benefit of those parties. Nothing in this policy, express or implied, is intended to confer upon any other person any rights or
remedies of any nature whatsoever under this policy or any of its provisions. Without limitation, no third party (including the Insured Person)
shall have any rights under this policy or any right to receive policy benefits.
3. If the premium is calculated on estimates supplied by the insured, an accurate record containing all relevant particulars must be maintained
by the insured and the company shall have the right of access to that record. The insured shall furnish such information within one month
of the expiry of each period of insurance and the premium shall be adjusted accordingly. The estimates and declaration of Salary or Wages
or Earnings on which the premium is based is limited to the basic salary of the Insured Person.
4. Insured Persons must be between the ages of 18 and 75 years at inception of this section 21 of the policy.
All cover under this section 21 of the policy in respect of an Insured Person shall cease on the renewal date following such Insured Person’s
80th birthday.
5. Insured Persons must be resident in South Africa.
6. The insured Event must have directly resulted from Bodily Injury.
Specific Claims Conditions
1. The insured shall not be entitled to recover benefits under this section 21 of the policy exceeding 100% of the compensation in respect of
any one benefit. As soon as the insured has received such compensation, all further rights of the insured in respect of such benefit shall
cease.
2. The company’s liability to the insured in respect of any one Insured Person for all compensation arising out of any one Accident and/or
occurrence shall be limited to the amount stated under the Any One Life Limit.
Group Personal Accident - Page 1 of 3 - Section 21
109
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
GROUP PERSONAL ACCIDENT - SECTION 21
3. The company shall not be liable under this section 21 of the policy for more than the Aircraft or Ground Accumulation Limit as stated in the
schedule in respect of any one Accident and/or occurrence or number of Accidents and/or occurrences arising from one source or cause.
4.
If an Insured Person dies as a direct result of a road or traffic accident of which the cause or the consequence could be a heart attack, the
company will deem the Accident to be an Insured Event.
5. Any compensation payable by the company in respect of Temporary Total Disablement or any Medical Expenses shall be reduced by an
amount equal to the compensation received or receivable by or on behalf of the Insured Person under any other insurance policy or medical
aid scheme or occupational injuries and diseases enactment and/or workmen’s compensation enactment or any other similar legislation.
6. The company shall not be liable to pay any benefit for Medical Expenses directly to the Medical Practitioner or other medical service
provider.
Specific Exclusions
The company shall not be liable to pay any benefit under this section 21 of the policy in respect of any Insured Person for any Insured Event caused
by or arising directly or indirectly from:
1.
an Accident occurring whilst the Insured Person is travelling by air other than as a fare paying passenger in an aircraft duly licensed for
the carriage of passengers or as a passenger in the insured’s private aircraft or a chartered aircraft;
2. illness.
If the company alleges that by reason of clause 2 of the above exclusions, loss or damage is not covered by this section 21 of the policy, the burden
of proving the contrary shall rest on the insured.
Extensions
It is agreed that subject to the terms, conditions, provisions, limitations and exclusions of the policy, this section 21 of the policy is extended to cover
the following:
Final Expenses
In the event of death as a direct result of an Accident and provided that the notification of death is received by the company within 30 days, the
company shall pay to the insured a sum of R5,000 in respect of final expenses.
Repatriation/Body Transportation
Provided that there is a valid death claim in terms of this section 21 of the policy, the company will pay the reasonable and necessary expenses
incurred in the repatriation or transportation of the body of a deceased Insured Person to his or her normal place of residence, up to an amount not
exceeding:
Death within South Africa :
R5,000
Death outside the borders of South Africa :
R10,000
Mobility
In the event the company has admitted a claim for Permanent Disability, if as a direct result of that disability the Insured Person is permanently
dependent on a wheelchair for mobility, the company will, in addition to any amount payable for Permanent Disability, pay for:
1.1 a self-propelled wheelchair or;
1.2 the modification of the controls to the Insured Person’s motor vehicle or;
1.3 if necessary, the fitting of wheelchair loading equipment and/or alterations to the Insured Person’s residence to facilitate the use of such
wheelchair,
up to an amount not exceeding R15,000.
Claims Preparation Costs
The company will pay costs reasonably incurred by the insured in producing and certifying any particulars or details required by the company to
substantiate a claim under this section 21 of the policy, provided that the liability of the company for such costs in respect of any one claim shall not
exceed R2,000. This extension replaces general provision A, which general provision shall not apply to this section 21 of the policy.
Emergency Transportation/Rescue
The company will pay costs and expenses necessarily incurred for emergency transportation and for freeing, rescuing or otherwise bringing an
Insured Person to a place of safety following Bodily Injury to such Insured Person, up to an amount of R5,000.
Seat Belt Benefit
The company will pay an additional 10% of the Insured Person’s death benefit, up to a maximum of R50,000 per occurrence, provided that the
Insured Person is wearing a properly fastened, original, factory-installed seat belt while operating or travelling as a passenger in a Private Motor
Vehicle when the Accident causing the death occurs. Verification of the actual use of the seat belt at the time of the Accident must be a part of an
official report of the Accident or must be certified in writing by the investigating officer(s).
Private Motor Vehicle as used in this extension shall mean a self-propelled private motor car with 4 or more wheels which is of a type both designed
and required to be licensed. “Private Motor Vehicle” includes but is not limited to a sedan, station wagon or jeep-type vehicle, designed to seat not
more than 9 persons including the driver. “Private Motor Vehicle” does not include a mobile home or any motor vehicle which is used in mass or
public transit.
Group Personal Accident - Page 2 of 3 - Section 21
110
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
GROUP PERSONAL ACCIDENT - SECTION 21
Permanent Disfigurement
The company will pay a benefit, calculated as a percentage of the principal sum of the Insured Person’s benefits for that part of the body in direct
proportion to the area affected by the disfigurement (limited to a maximum of 50%), for Bodily Injury resulting in permanent disfigurement in respect
of:
a) The head and neck - provided the total area affected by the disfigurement exceeds 20% of the total area of the head and neck
b) The hands - provided the total area affected by the disfigurement exceeds 20% of the total area of the hands
c) All other areas of the body - provided the total area affected by the disfigurement exceeds 5% of the total area of the body.
Notwithstanding the limitations stated in a), b) or c) above, in the event of serious permanent disfigurement the company may in its sole discretion
pay to the insured an additional sum which in its opinion is not inconsistent with the degree of disfigurement and its consequential disability. The
benefits payable in terms of a), b) and c) above shall apply independently and be cumulative, but the overall liability of the company for permanent
disfigurement resulting from an Accident or series of Accidents, arising from any one cause in respect of any one Insured Person, shall be limited
to the principal sum less any compensation payable for Permanent Disability.
Group Personal Accident - Page 3 of 3 - Section 21
111
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
IMAGE PROTECTOR - SECTION 22
Defined Events
Subject to the terms and conditions of this section 22 of the policy, the company will pay the benefits shown in the Personal Accident Table of Benefits
for loss or damage suffered by an Insured Person in respect of an Accident that occurs during the period of insurance whilst on the Premises of the
Insured and that directly and within 24 months of the date of such Accident causes or results in a Bodily Injury and an Insured Event.
Specific Definitions
Abuse of Stolen Cheques, Credit Cards Accumulation Limit means the wrongful, improper use of cheques and/or credit cards belonging to the Insured Person
which are stolen as a result of any criminal activity that takes place on the Premises of the insured.
Any loss of credit cards must be reported within 24 hours to the issuing authority and the
appropriate cancellation measures must be taken.
means the maximum liability of the company under this section 22 of the policy in respect of any
one Accident or number of Accidents arising from one source or cause.
Any One Life Limit
means the maximum liability of the company under this section 22 of the policy to any one Insured
Person specified in the schedule.
Cost for Replacement of Documents means the actual costs not exceeding the sum insured for the replacement of damaged or stolen
identity documents or passports.
Insured Person/s means visitors who lawfully enter the Premises of the insured and shall exclude employees of the
insured.
Medical Expenses means the Reasonable and Customary Charges levied by a registered medical or paramedical
Practitioner for actual costs incurred, up to the maximum limit stated in the Schedule and/or
Personal Accident Table of Benefits, as a result of an Accident if an Insured Person’s medical
condition requires Immediate Medical Treatment. “Medical Expenses” excludes any amount of any
compensation recoverable by or on behalf of an Insured Person under any occupational injury
enactment or workmen’s compensation enactment or any other similar legislation or any other
insurance policy or medical aid scheme. “Medical Expenses” include the cost of necessary
medical or surgical treatment, services, or supplies, including necessary hospital, nursing and
ambulance services. “Medical Expenses” in respect of dental charges are limited to treatment of
Bodily Injuries sustained to sound natural teeth and received within 30 days of the time and Date
of Loss.
Personal Effects means spectacles, purses, wallets, cosmetics and other personal effects normally worn or carried
on the person.
Post Traumatic Stress Disorder Therapy means psychotherapy to treat post traumatic stress disorder being an anxiety disorder
characterised by an acute emotional response, which was caused solely by a violent criminal act
or an attempt thereat where such violence is intended, used or made to overpower or subdue.
Premises of the insured means the premises stated in the schedule.
Specific Conditions
1. This section 22 of the policy cannot be ceded, assigned or in any way transferred to a third party. Benefits shall be payable only to the
insured or its legal representative whose receipt shall discharge the company.
2. This section 22 of the policy is between the company and the insured only and all of its provisions and conditions are for the sole and
exclusive benefit of those parties. Nothing in this policy, express or implied, is intended to confer upon any other person any rights or
remedies of any nature whatsoever under this policy or any of its provisions. Without limitation, no third party (including the Insured Person)
shall have any rights under this policy or any right to receive policy benefits.
Specific Claims Conditions
1. The insured shall not be entitled to recover benefits under this section 22 of the policy exceeding 100% of the compensation in respect of
any one benefit. As soon as the insured has received such compensation, all further rights of the insured in respect of such benefit shall
cease.
2. The company’s liability to the insured in respect of any one Insured Person for all compensation arising out of any one Accident and/or
occurrence shall be limited to the amount stated in the schedule under the Any One Life Limit.
3. The company shall not be liable under this section 22 of the policy for more than the Accumulation Limit as stated in the schedule in respect
of any one Accident and/or occurrence or number of Accidents and/or occurrences arising from one source or cause.
4. Any claim for Personal Effects, Abuse of Stolen Cheques, Credit Cards and Documents must be accompanied by a police report.
5. In respect of claims for damage to clothing, the onus shall rest with the Insured Person to prove that such damage occurred on the
Premises of the insured and such clothing must be furnished to the company before a claim will be considered.
6. In respect of jewellery claims, proof of purchase or original or certified copies of valuation certificates must be produced for items in excess
of R500.
7. The Insured Person must first attempt to recover any loss from the misuse of his/her credit card or cheque from his/her bank.
8. The company shall not be liable to pay any benefit for Medical Expenses directly to the Medical Practitioner or other medical service
provider.
Image Protector - Page 1 of 2 - Section 22
113
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
IMAGE PROTECTOR - SECTION 22
Specific Exclusions
The company shall not be liable to pay any benefit under this section 22 of the policy in respect of any Insured Person for any Insured Event caused
by or arising directly or indirectly from:
1. illness;
2. damage or loss arising from wear and tear, deterioration, atmospheric or climatic conditions, mould or fungus, insects, rodents, vermin, or
any process of cleaning, ironing, pressing, repairing, restoring or alteration;
3. damage to property belonging to, or in the custody or control of, the insured or any employee of the insured;
4. Bodily Injury caused by or through or in connection with any advice or treatment of a professional nature (other than first aid treatment)
given or administered by or at the direction of the insured or an Insured Person;
5. loss or damage to cash, bonds, bank and currency notes, coins, coupons, stamps, manuscripts, securities or any other document of
monetary value belonging to the insured or the Insured Person;
6.
loss or damage caused by the dishonesty of any partner, principal, director, or person/s in the employ of the insured;
7. Bodily Injury or damage caused by animals;
8.
Bodily Injury or damages caused solely by an existing physical defect or other infirmity of such Insured Person;
9.
theft or attempted theft of Personal Effects left unattended other than when securely locked inside a building or securely locked out of sight
inside a motor vehicle.
If the company alleges that by reason of clauses 1, 8 or 9 of the above exclusions, loss or damage is not covered by this section 22 of the policy,
the burden of proving the contrary shall rest on the insured.
Image Protector - Page 2 of 2 - Section 22
114
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
WORLD BUSINESS CARD - SECTION 23
Schedule of Benefits for Lifeline Plus Business Travel Insurance
PLATINUM
SUM INSURED
INTERNATIONAL
LOCAL
R75,000,000
Nil
1. EMERGENCY MEDICAL EXPENSES
1A. Emergency Medical Expenses – Injury & Illness [Excess for out-patient treatment – R500]
1B. Follow-up Treatment in South Africa
R25,000
Nil
1C. Hospital Confinement (International R500 / day & Local R1,000 / day - max 10 days)
R5,000
R10,000
1D. Medical Evacuation, Repatriation or Transport to Medical Centre Expenses
Real Expense
Nil
Pre-Existing Medical Extension
R1,000,000
Nil
R1,000,000
2. PERSONAL ACCIDENT
2A.Death and Disability
R1,000,000
2B. Spouse Accidental Death Cover
R25,000
R25,000
2C. Education Fund Supplement - Per child
R10,000
R10,000
Accumulation Limit in respect of Section 2
R75,000,000
R75,000,000
3. TRAVEL GUARD
3A. Assistance Services
Assistance Only
Assistance Only
3B1. Accompanying Family Member
R25,000
Assistance Only
3B2. Alternative Employee or Resumption of Assignment Expenses
R25,000
Assistance Only
3B3. Legal Assistance
R25,000
Assistance Only
3B4. Motoring Bail Bond (advance only)
R25,000
Assistance Only
3B5. Repatriation of Mortal Remains/Burial Expenses
Real expense
Real expense
3B6. Coffin Expense
R10,000
R10,000
4. CANCELLATION OR CURTAILMENT
4A. Cancellation [Excess R500]
R25,000
R25,000
4B. Curtailment [Excess R500]
R25,000
R25,000
5. BAGGAGE, TRADE SAMPLES, PERSONAL EFFECTS, TRAVEL DOCUMENTS, MONEY AND CREDIT CARDS AND BAGGAGE DELAY
5A. Theft or Damage of Baggage (single item limit 25% of sum insured) [Excess – R500]
R20,000
R20,000
5A. Accidental Loss of Baggage (single item limit of 25% of sum insured) [Excess – R500]
R5,000
R5,000
Sub-limit - Contact lenses, prescription spectacles or sunglasses [over and above excess]
R500
R500
Sub-limit - Cellular phones / fittings / accessories [over and above excess]
R750
R750
5A. Theft of Money and Credit Cards & Travelers Cheques (single item limit of 25% of Sum
Insured) [Excess – R500]
R5,000
R5,000
5B. Baggage Delay R1,000 per day [Excess 6 Hours]
R3,000
R3,000
6A. Travel Delay - R500 per day [Excess 4 Hours]
R2,500
R2,500
6B. Travel Missed Connection - R1,000 per day [Excess R250]
R5,000
R5,000
7A. Bodily Injury [Excess R1,000]
R5,000,000
R5,000,000
7B. Material Damage [Excess R1,000]
R5,000,000
R5,000,000
8A. Hijack of Public Conveyance [Excess 12 Hours]
R50,000
R50,000
8B. Kidnap and Wrongful Detention
R1,000,000
R1,000,000
R10,000
Nil
R5,000
Nil
R5,000
Nil
11B. Baggage
R5,000
Nil
11C. Post Traumatic Stress Disorder Therapy
R2,500
Nil
6. TRAVEL DELAY AND TRAVEL MISSED CONNECTION
7. PERSONAL LIABILITY
8. HIJACK, KIDNAP AND WRONGFUL DETENTION
9. NATURAL DISASTER
9. Cost of providing similar accommodation [Excess R300]
10. TICKET UPGRADE
10. Essential upgrade of a conveyance ticket [6 hour Excess]
11. MOTOR HIJACK EXTENSION
11A. Personal Accident
12. EXCLUSIVE BUSINESS BENEFITS CLUB
12A. A bouquet of discounts and assistance services on travel and related items
Nil
Assistance Only
ANY ONE LIFE LIMIT
R75,000,000
R75,000,000
World Business Card - Page 1 of 16 - Section 23
115
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
WORLD BUSINESS CARD - SECTION 23
Schedule of benefits for Lifeline Plus Business Travel Insurance
GOLD
SUM INSURED
INTERNATIONAL
LOCAL
1. EMERGENCY MEDICAL EXPENSES
1A. Emergency Medical Expenses – Injury & Illness [Excess for out-patient treatment – R500]
R50,000,000
Nil
1B. Follow-up Treatment in South Africa
R20,000
Nil
1C. Hospital Confinement (International R350 / day & Local R750 / day - max 10 days)
R3,500
R7,500
1D. Medical Evacuation, Repatriation or Transport to Medical Centre Expenses
Real Expense
Nil
Pre-Existing Medical Extension
R1,000,000
Nil
R750,000
R750,000
2B. Spouse Accidental Death Cover
R15,000
R15,000
2C. Education Fund Supplement - Per child
R10,000
R10,000
Accumulation Limit in respect of Section 2
R50,000,000
R50,000,000
3A. Assistance Services
Assistance Only
Assistance Only
2. PERSONAL ACCIDENT
2A.Death and Disability
3. TRAVEL GUARD
3B1. Accompanying Family Member
R20,000
Assistance Only
3B2. Alternative Employee or Resumption of Assignment Expenses
R20,000
Assistance Only
Assistance Only
3B3. Legal Assistance
R20,000
3B4. Motoring Bail Bond (advance only)
R20,000
Assistance Only
3B5. Repatriation of Mortal Remains/Burial Expenses
Real Expense
Real Expense
3B6. Coffin Expense
R10,000
R10,000
4A. Cancellation [Excess R500]
R20,000
R20,000
4B. Curtailment [Excess R500]
R20,000
R20,000
4. CANCELLATION OR CURTAILMENT
5. BAGGAGE, TRADE SAMPLES, PERSONAL EFFECTS, TRAVEL DOCUMENTS, MONEY AND CREDIT CARDS AND BAGGAGE DELAY
5A. Theft or Damage of Baggage (single item limit 25% of sum insured) [Excess – R500]
R15,000
R15,000
5A. Accidental Loss of Baggage (single item limit of 25% of sum insured) [Excess – R500]
R3,750
R3,750
Sub-limit - Contact lenses, prescription spectacles or sunglasses [over and above excess]
R500
R500
Sub-limit - Cellular phones / fittings / accessories [over and above excess]
R750
R750
5A. Theft of Money and Credit Cards & Travelers Cheques (single item limit of 25% of Sum
Insured) [Excess – R500]
R3,750
R3,750
5B. Baggage Delay R750 per day [Excess 6 Hours]
R2,500
R2,500
6A. Travel Delay – R400 per day [Excess 4 Hours]
R1,500
R1,500
6B. Travel Missed Connection – R750 per day [Excess R250]
R2,500
R2,500
7A. Bodily Injury [Excess R1,000]
R3,000,000
R3,000,000
7B. Material Damage [Excess R1,000]
R3,000,000
R3,000,000
6. TRAVEL DELAY AND TRAVEL MISSED CONNECTION
7. PERSONAL LIABILITY
8. HIJACK, KIDNAP AND WRONGFUL DETENTION
8A. Hijack of Public Conveyance [Excess 12 Hours]
R50,000
R50,000
8B. Kidnap and Wrongful Detention
R750,000
R750,000
9A. A bouquet of discounts and assistance services on travel and related items
Nil
Assistance Only
ANY ONE LIFE LIMIT
R50,000,000
R50,000,000
9. EXCLUSIVE BUSINESS BENEFITS CLUB
World Business Card - Page 2 of 16 - Section 23
116
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
WORLD BUSINESS CARD - SECTION 23
Schedule of benefits for Lifeline Plus Business Travel Insurance
SILVER
SUM INSURED
INTERNATIONAL
LOCAL
1. MEDICAL EXPENSES
1A. Emergency Medical Expenses – Injury & Illness [Excess for out-patient treatment – R500]
R10,000,000
Nil
1B. Follow-up Treatment in South Africa
R15,000
Nil
1C. Hospital Confinement (International R300 / day & Local R500 / day - max 10 days)
R3,000
R5,000
1D. Medical Evacuation, Repatriation or Transport to Medical Centre Expenses
Real Expense
Nil
Pre-Existing Medical Extension
R1,000,000
Nil
2A.Death and Disability
R500,000
R500,000
2. PERSONAL ACCIDENT
2B. Spouse Accidental Death Cover
R10,000
R10,000
2C. Education Fund Supplement - Per child
R10,000
R10,000
Accumulation Limit in respect of Section 2
R10,000,000
R10,000,000
3A. Assistance Services
Assistance Only
Assistance Only
Assistance Only
3. TRAVEL GUARD
3B1. Accompanying Family Member
R15,000
3B2. Alternative Employee or Resumption of Assignment Expenses
R15,000
Assistance Only
3B3. Legal Assistance
R15,000
Assistance Only
3B4. Motoring Bail Bond (advance only)
R15,000
Assistance Only
3B5. Repatriation of Mortal Remains/Burial Expenses
Real Expense
Real Expense
3B6. Coffin Expense
R10,000
R10,000
4A. Cancellation [Excess R500]
R15,000
R15,000
4B. Curtailment [Excess R500]
R15,000
R15,000
4. CANCELLATION OR CURTAILMENT
5. BAGGAGE, TRADE SAMPLES, PERSONAL EFFECTS, TRAVEL DOCUMENTS, MONEY AND CREDIT CARDS AND BAGGAGE DELAY
5A. Theft or Damage of Baggage (single item limit 25% of sum insured) [Excess – R500]
R10,000
R10,000
5A. Accidental Loss of Baggage (single item limit of 25% of sum insured) [Excess – R500]
R2,500
R2,500
Sub-limit - Contact lenses, prescription spectacles or sunglasses [over and above excess]
R500
R500
Sub-limit - Cellular phones / fittings / accessories [over and above excess]
R750
R750
5A. Theft of Money and Credit Cards & Travelers Cheques (single item limit of 25% of Sum
Insured) [Excess – R500]
R1,500
R1,500
5B. Baggage Delay R750 per day [Excess 6 Hours]
R2,000
R2,000
6A. Travel Delay – R400 per day [Excess 4 Hours]
R1,000
R1,000
6B. Travel Missed Connection – R750 per day [Excess R250]
R2,000
R2,000
7A. Bodily Injury [Excess R1,000]
R2,000,000
R2,000,000
7B. Material Damage [Excess R1,000]
R2,000,000
R2,000,000
6. TRAVEL DELAY AND TRAVEL MISSED CONNECTION
7. PERSONAL LIABILITY
8. HIJACK, KIDNAP AND WRONGFUL DETENTION
8A. Hijack of Public Conveyance [Excess 12 Hours]
R50,000
R50,000
8B. Kidnap and Wrongful Detention
R500,000
R500,000
9A. A bouquet of discounts and assistance services on travel and related items
Nil
Assistance Only
ANY ONE LIFE LIMIT
R10,000,000
R10,000,000
9. EXCLUSIVE BUSINESS BENEFITS CLUB
World Business Card - Page 3 of 16 - Section 23
117
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
WORLD BUSINESS CARD - SECTION 23
Business Travel Insurance
Underwritten by Chartis South Africa Limited
(Reg. No. 1962/003192/06), VAT Registration No: 4390116939, FSP No: 15805
10 Queens Road, Parktown, Johannesburg, 2193, P.O. Box 31983, Braamfontein 2017
Tel: +27 11 551-8000 Fax: +27 11 551-8653, Website: www.chartisinsurance.com
This Policy is a contract made between the Policyholder and the Company. The Company agrees to provide insurance on the basis set out in this
Policy provided the premium is paid when due and the Company agrees to accept it.
Signed on behalf of the Company
Regional Vice President: Africa
Accident & Health Division
PREMIUM PAYMENT
The Policyholder is liable for premium and the premium is payable as follows:
a)
In respect of annual policies paid annually the premium is payable on or before the inception date or renewal date as the case may be; or
b)
In respect of annual policies paid monthly the premium is payable on or before the first Day of the month in advance.
The Company shall not be liable for any claim arising under this Policy that occurs prior to receipt of the premium. The Company shall not be
obliged to accept premium tendered to it or to any intermediary after the inception date, but may do so upon such terms as it in its sole discretion
may determine. In the event of the company not accepting premium the Policy will lapse from the date from which the premium became due. The
Company reserves the right to ask for proof of payment at any time. Such proof must be to the Company’s satisfaction.
PERIOD OF INSURANCE
This Policy will provide cover for Insured Journeys that are booked after or commence after the inception date appearing in the Policy Schedule,
unless it is a renewal of an existing Company Policy. If it is a renewal, this Policy will provide cover for Insured Journeys that have commenced
prior to the renewal date. Except for Cancellation insurance, cover will commence when the Insured Person leaves the Point of Departure and will
automatically cease on Termination. Cancellation coverage will take effect on the date on which a travel ticket is paid in full and will automatically
cease on Termination.
MAXIMUM AMOUNT PAYABLE
1.
The Policyholder or, where applicable, an Insured Person shall not be entitled to recover a Benefit exceeding 100% of the sum insured for
an Insured Event as reflected in the Schedule of Benefits.
2.
If two or more travel policies issued by the Company apply to the same claim, the maximum amount payable by Chartis under all such
policies shall not exceed the limit of liability of whichever of such policies has the highest applicable limit of liability. Nothing contained
herein shall be construed to increase the Benefits payable in terms of this Policy.
3.
Subject to any limitations in respect of cover found in the Short Term Insurance Act 53 of 1998, Spouses and Children accompanying the
Insured Person on an identical travel itinerary qualify to share cover with the Insured Person. A maximum of 5 Children per Insured Person
can be covered when Benefits are shared.
4.
Spouse and Children accompanying the Insured Person will be entitled to full Benefits in the event that the relevant endorsement is issued
by the Company and additional premium is paid. A maximum of 5 Children per Insured Person can be covered.
CANCELLATION/TERMINATION
Cancellation
1.
The Policyholder may cancel this Policy at any time by giving the Company 30 Days written notice, in which case the Company will retain
a pro-rata premium for the period that the Policy was in force subject to any minimum or adjustable premium provisions. In the event of
intimation of a claim the Company will not refund a pro-rata premium
2.
This Policy may be cancelled by the Company giving 30 Days written notice to the Policyholder the Company will refund a pro-rata premium
for the unexpired policy period. In the event of intimation of a claim the Company will not refund a pro-rata premium.
3.
The Company may cancel this Policy by sending the Policyholder notice in writing to the Policyholder’s last known address. If the premium
is paid annually in advance and the Policy is cancelled other than at the anniversary date, the Company will refund a pro-rata premium
provided that no claims have been initiated.
4.
The Company may cancel any cover provided by this Policy for War by sending seven Days notice to the Policyholder’s last know
address.
Termination
This Policy will terminate on the earliest of the following dates:
1.
the date the Policy is cancelled; or
2.
the expiry date appearing in the Policy Schedule unless:
a)
the Policyholder has requested, and the Company has agreed to, an extension in writing; or
b)
there is an automatic extension as described under the General Conditions applying to this Policy.
An Insured Journey in respect of an Insured Person will terminate on:
1.
the date of the Insured Person’s return to the Point of Departure in South Africa or Country of Residence; or
2.
the date that the Insured Person reaches the maximum age for the cover selected; or
3.
90-consecutive days after the Commencement of Insured Journey unless otherwise agreed to in writing by the Company; or
4.
The date the Policy terminates.
World Business Card - Page 4 of 16 - Section 23
118
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
WORLD BUSINESS CARD - SECTION 23
DEFINITIONS
In this Policy the following definitions apply:
Accident means a sudden unexpected and specific event which occurs at an identifiable time and place on an Insured Journey, resulting in Injury.
Accidental Loss means the Insured Person mislaying or misplacing their Baggage resulting in a loss of possession.
Accumulation Limit means the maximum liability of the Company in respect of any one Accident or number of Accidents arising from one source
or cause during an Insured Journey.
Acquired Immune Deficiency Syndrome or AIDS shall have the meanings assigned to it by the World Health Organisation including Opportunistic
Infection, Malignant Neoplasm, Human Immune Deficiency Virus (HIV), Encephalopathy (Dementia), HIV Wasting Syndrome or any disease or
Illness in the presence of a sero-positive test for HIV.
Any One Life Limit means the maximum liability of the Company to any one Insured Person in respect of any one Accident or Illness or series of
Accidents or Illnesses arising from one source or cause.
Baggage means luggage, Personal Effects and travel documents (travel tickets, passports and visas) taken by an Insured Person on an Insured
Journey.
Benefit(s) means the payment of any amounts by the Company in respect of the cover and amount of cover specified in the Schedule of Benefits.
Business Associate means a partner, director or employee under his direct supervision and control of the Insured Person or the Policyholder.
Children means the Insured Person’s dependant children who are not in full-time employment and who are between the ages of 3 months and 19
years (or under the age of 25 years provided they are in full-time education), unmarried, not pregnant, without children and primarily dependent on
the Insured Person for maintenance and support.
Company means Chartis South Africa, Ltd.
Confinement means confinement to a Hospital as a resident in-patient for a period which is necessary for the diagnosis or treatment of any Injury
or Illness.
Country of Residence means the country of which the Insured Person is a citizen or permanent resident.
Damage means physical damage to Baggage which lowers the value.
Date of Loss means:
(a)
for Illness, the first date of diagnosis or the date the Insured Person first became aware of the Illness whichever occurs earlier;
(b)
for Injury, the date of the Accident;
(c)
for all other Sections, the date of the Insured Event.
Day means a calendar Day, reckoned from midnight to midnight, or any part thereof.
Effective Date of Coverage means:
(a)
for cancellation, the date on which a travel ticket is paid in full;
(b)
for all other sections of cover, the date and time that the Insured Person commences an Insured Journey
Electronic Equipment shall mean any computer equipment, system or software or any product, equipment, system or machinery connected to or
operated by means of a micro or data processor chip.
Emergency Medical Expenses means all Reasonable and Customary Charges which at the sole discretion of Travel Guard are deemed medically
necessary for Illness or Injury on an International Journey,
Excess means the first amount, or period, of each and every loss payable by the Policyholder or the Insured Person as specified in the Schedule
of Benefits.
Follow up Treatment in South Africa means all Reasonable and Customary Charges incurred for Illness or Injury, resulting in hospitalisation,
surgical or other diagnostic or remedial treatment given or prescribed by a qualified Medical Practitioner, dentist or optometrist in South Africa.
Follow up treatment in South Africa does not include those expenses the Company is prohibited by law from paying and will only be paid to the extent
permissible under the Medical Schemes Act No. 131 of 1998 and any other subsequent legislation which is enacted.
Global Choices means Global Choices Lifestyle (Pty) Ltd.
Hazardous Pursuits means any hazardous activity involving risk or danger which introduces or increases the possibility of a loss or which may
influence the extent of a loss including but not limited to sports activities, horseback riding, hunting, bungee jumping, abseiling, white water rafting,
hiking, mountaineering, scuba diving, black slope or off-piste skiing or snow boarding, fighting (except in bona fide self defence), racing (other than
on foot), being a crew member on a ship, or sailing outside of territorial waters.
Hospital shall mean a Hospital (other than an institution for the aged, chronically ill or convalescent rest or nursing home and/or drug or alcohol
rehabilitation facilities) operated pursuant to the law for the care and treatment of injured or sick persons with organized facilities for diagnosis and
surgery and having 24-hour nursing service and medical supervision.
Illness means any fortuitous sickness or disease contracted, commencing or first manifesting itself during an Insured Journey.
Informant means any person, other than the Insured Person, providing information not otherwise obtainable solely in return for a reward offered by
the Insured Person.
Injury means physical trauma to an Insured Person caused by an Accident resulting, solely and independently of any other cause or any other
physical defect or infirmity existing prior to the Accident, in an Insured Event within 24 months of the date of the Accident. Physical trauma caused
by exposure to the elements of nature as a direct result of an Accident will be deemed to be an injury.
Insured Event means an event stated in the Schedule of Benefits.
Insured Journey means either an International Journey, or a Local Journey undertaken by an Insured Person for a period not exceeding 90
consecutive Days, including the return journey to the Point of Departure.
Insured Person means any person who is nominated by the Policyholder for insurance under this Policy and with respect to whom premium has
been paid or is agreed to be paid.
International Journey means an Insured Journey commencing from the Point of Departure to the destination, outside the territorial limits of the
Republic of South Africa, including the return journey to the Point of Departure.
Kidnapping means any event or connected series of events of seizing, detaining or carrying away by force or fraud of the Insured Person by
person/s for the purpose of demanding ransom monies.
Local Journey means an Insured Journey of at least 250 kilometres from the Point of Departure to the destination, both of which are within the
territorial limits of the Republic of South Africa, and includes either a minimum of one nights accommodation at the destination or the Insured Person
being transported to the destination by air in a Public Conveyance, including the return journey to the Point of Departure.
Manual Labour means physical, human labour involving the use of hands where the work may be considered hard or arduous, including skilled
labourers who use or operate mechanical or non-mechanical machinery or equipment.
World Business Card - Page 5 of 16 - Section 23
119
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
WORLD BUSINESS CARD - SECTION 23
Medical Expenses means all Reasonable and Customary Charges for Illness or Injury on an International Journey,
Medical Practitioner means a person registered with a current, legal licence to practise medicine, but excludes an Insured Person or a member of
any Insured Person’s immediate family.
Medical Treatment means a Medical Practitioner’s medical advice, treatment, consultations and prescribed or repeat maintenance medication.
Motor Hijack the unlawful seizing or attempted unlawful seizing of a vehicle by any person using force or threat or violence where such violence
is intended, used or made to overpower or subdue the Insured Person whilst driving or as a passenger in a Private Motor Vehicle or whilst such
vehicle is stationary.
Permanent Total Disablement means total and absolute disablement which entirely prevents the Insured Person from engaging in or giving
attention to his usual or any occupation for which he is qualified or has received specialised training and which will in all probability be lasting and
continuous for his lifetime.
Personal Effects means spectacles, dentures, purses, wallets, cosmetics and other personal effects normally worn or carried on the person.
Point of Departure means:
a)
in respect of an International Journey when an Insured Person passes through passport control, from within South Africa or Country of Residence; or
b)
in respect of a Local Journey the point from which an Insured Person leaves his usual place of residence or business to travel in a direct and uninterrupted manner on a Local Journey.
Policy means this document embodying the contract of insurance, the Policy Schedule and Schedule of Benefits and shall include any subsequent
Terms, Conditions, Exclusions, Terminations and Endorsements.
Policy Schedule means the schedule attaching to and forming part of the Policy containing all relevant and specific details of the Policyholder and
the option of cover selected.
Policyholder means the insured company, organisation and associated company or organisation shown in the Policy Schedule.
Pre-Existing Medical Conditions means any condition giving rise to a claim for which, within the 12 consecutive months prior to the Effective Date
of Coverage, the Insured Person:
(a)
has consulted a Medical Practitioner or specialist; or
(b)
has received Medical Treatment or advice; or
(c)
the manifestation of symptoms would have caused a reasonable person to seek advice.
Private Motor Vehicle means any licensed passenger vehicle other than taxis, buses and any vehicle that is in excess of 2 tons.
Professional Player means an Insured Person who earns in excess of 50% of his income from playing sport or who participates in a sport that
remunerates him as a means of livelihood.
Public Conveyance means any land, water or air conveyance legally licensed to carry passengers, operating commercially in accordance with all
locally applicable laws and regulations on regular and published scheduled routes in which the Insured Person is travelling only as a fare-paying
passenger, excluding minibuses, non-standard motor vehicles and non-pressurised single engine piston aircraft.
Reasonable and Customary Charges means the charges which:
(a)
are medically required for the treatment, supplies or medical service to treat an Insured Person’s condition;
(b)
do not exceed the usual level of charges for similar treatment, supplies or medical services in the locality where the expenses are incurred,
and
(c)
do not exceed the charges for treatment that would have been made if no insurance existed.
Related Expenses means additional accommodation and travelling expenses, excluding telephone costs, meals and beverages of necessity
incurred by any one person, who on the advice of a Medical Practitioner appointed by the Company remains with or escorts the Insured Person until
he resumes the Insured Journey or returns to the Point of Departure, whichever occurs first.
Relative means a Spouse, parent, parent-in-law, grandparent, step-parent, Children, grandchild, brother, brother-in-law, sister, sister-in-law,
daughter-in-law, son-in-law, fiancée, fiancé, half-brother, half-sister, aunt, uncle, niece or nephew of the Insured Person, provided such person
resides in the Insured Person’s Country of Residence.
Schedule of Benefits means the schedule attaching to and forming part of the Policy, detailing Insured Events, Excess levels, limits of liability, sublimits and other relevant plan information.
Spouse means the husband, wife, partner in a same sex partnership or any de facto partner with whom the Insured Person has permanently and
continuously lived in the same household in a relationship which is not casual or impermanent for a period longer than 6 consecutive months. Only
one Spouse shall be eligible for cover as nominated by the Insured Person.
Traumatic Event means a violent criminal act or attempt where such violence is intended or made to overpower or subdue.
Travel Guard means Travel Guard Chartis, who provides emergency travel and pre-departure health information and the Travel Guard assistance
services as fully detailed in the body of this agreement
Theft means wrongfully taking property from an Insured Person without their willful consent.
Travel Companion means the person intending to travel or travelling with the Insured Person.
Victim means an Insured Person who is the subject of an Insured Event under Section 8B.
VIP Exclusive Benefits Club means the discount and assistance service package provided by Global Choices, the Chartis SA affiliated assistance
service provider, operating under contract with the Company.
War means war, whether declared or not, or any warlike activities (including use of military force) by any sovereign nation to achieve economic,
geographic, nationalistic, political, racial, religious or other ends.
Wrongful Detention means the arbitrary or capricious act of involuntary confinement of the Insured Person by person/s acting as agent/s or with the
approval of any government of government entity, or acting or purporting to act on behalf of any insurgent party, organisation or group. A connective
series of wrongful detentions will be considered as one wrongful detention.
GENERAL CONDITIONS
1.
Age limits This Policy covers Insured Events which happen to Insured Persons up to and including the age of 79-years at the Date of Loss.
2.
Commencement of Insured Journey This Policy will provide cover for Insured Journeys that are booked after or commence after the
inception date appearing in the Policy Schedule, unless it is a renewal of an existing Company Policy. If it is a renewal, this Policy will
provide cover for Insured Journeys that have commenced prior to the renewal date. Except for Cancellation insurance, cover will commence
when the Insured Person leaves the Point of Departure and will automatically cease when the Insured Person returns to the Point of
Departure unless otherwise agreed to by the Company in writing. Cancellation coverage will take effect on the date on which a travel ticket
is paid in full.
World Business Card - Page 6 of 16 - Section 23
120
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
WORLD BUSINESS CARD - SECTION 23
3.
Airlines The Company will have no liability to provide an indemnity or part of an indemnity in relation to any Insured Event for which the
Policyholder or the Insured Person may be able to seek compensation in respect of the same from an airline. If the Policyholder proves
that it has taken all reasonable and necessary steps to claim from the airline, the Company will pay a pro-rata portion of indemnity. The
Company’s liability will be calculated by reducing the Benefits by the amount for which the Company considers the airline to be liable.
4.
Automatic extension If an event occurs after commencement of the Insured Journey giving rise to a legitimate claim under Section 1, 4B
and 8A, the Insured Journey shall automatically be extended for a maximum of 12 consecutive months from the date of the event.
5.
Currency All amounts are shown in South African Rand (ZAR). If expenses for which an indemnity can be provided in terms of this policy,
are incurred in a foreign currency the rate of exchange used will be the rate at the time of incurring the expense or suffering Date of Loss,
whichever is the more favourable to the Company.
6.
Endorsements This Policy may be extended, amended or altered by the Company issuing an endorsement. Any application to extend,
amend or alter the Policy by the Policyholder must be made in writing to the Company prior to the expiry of the existing Policy and provided
there are neither existing nor initiated claims on the existing Policy.
7.
Liability
7.1. The Company shall not be liable or responsible for:
a)
the negligence, incorrect advice, wrongful acts and/or omissions of any legal and/or health care professional or any other
person or persons or legal entity that provide direct or indirect service to the Policyholder or the Insured Person;
b)
the failure of any agent or broker to explain adequately the terms, conditions, endorsements, terminations and exclusions of
this Policy.
7.2. Should any discrepancies arise between this Policy and any literature or information received by the Policyholder or the Insured
Person, this Policy will govern in all cases.
8.
Language The official version of this Policy is in English. Words in the singular include the plural and vice versa and words in the masculine
gender include the feminine gender.
9.
Misrepresentation This Policy shall be voidable (at the discretion of the Company) in the event of misrepresentation, misdescription or
non-disclosure by or on behalf of the Policyholder or Insured Person of any information material to this Policy.
10.
Other financial products and services The Company will accept no liability whatsoever for any of the insurance or other financial
products or services which are sold in conjunction with this Policy that are provided or underwritten by any other insurance or assurance
companies and/or assistance companies and/or financial providers.
11.
Other insurance Except for Section 2 - Personal Accident, if the Policyholder or the Insured Person is able to claim under any other
policies (including statutory insurance and/or automatic credit card travel insurance) or medical scheme which provides cover for the whole
or any part of an Insured Event (“Other Claims”), the Company will only be liable to pay its pro rata portion of the claim submitted in terms
of this Policy.
11.1 If in the Company’s discretion it decides to pay the claim in full, then it will not be obliged to make payment unless the
Policyholder and the Insured Person cede to the Company all of their rights in respect of the Other Claims.
11.2 If the Company has already paid Benefits in terms of this Policy, all of the Policyholder’s and the Insured Person’s rights in
respect of the Other Claims will be ceded automatically to the Company.
11.3 A cession in terms of 11.1 or 11.2 will allow the Company to do all things necessary to claim against the other insurer or
company and institute legal proceedings against that other insurer or company if the Other Claim is not paid. The cession in terms of 11.1 and 11.2 does not in any way derogate from the Companies rights of Contribution.
11.4 Without limiting any provision of this Policy or any legal obligation, the Policyholder and the Insured Person must co-operate fully with the Company in relation to the Other Claim or legal proceedings including but not limited to:
a)
not doing anything to prejudice or limit the Company’s rights;
b)
giving the Company whatever information and documents it may require;
c)
signing any document or affidavit that the Company may request to enable it to exercise its rights.
12.
Payment of Benefits This Policy is between the Company and the Policyholder only and all of its provisions and conditions are for the
sole and exclusive benefit of those parties. Nothing in this Policy, express or implied, is intended to confer upon any other person save to
the extent provided for in the Policy any rights or remedies of any nature whatsoever under this Policy or any of its provisions. Without
limitation, no third party save to the extent provided for in the Policy shall have any rights under this Policy or any right to receive Policy
Benefits.
Receipt of Benefits paid as follows will be a valid discharge of the Company’s liability under this Policy:
12.1
12.2
For Emergency Medical and Related Expenses on an International Journey, the Benefit will be paid to the provider of
such medical treatment.
This Policy cannot be ceded, assigned or in any way transferred to a third party. Benefits shall be payable at the discretion of the
Company only to the Policyholder or its legal representative or to the Insured Persons or estate specifically referred to in the
Policy.
13.
Public Conveyance tickets The Company has the right to utilise the Insured Person’s Public Conveyance ticket to offset the Company’s
expenses. For the purpose of this clause Public Conveyance will include any Conveyance specified in the definition of Public
Conveyance.
14.
South African Law This Policy will be governed by the laws of South Africa and its courts shall have exclusive jurisdiction to the exclusion
of the courts of any other country.
15.
Subrogation The Company has the right to commence or take over legal proceedings in the Policyholder and/or the Insured Person’s
name for the defence or settlement of any claim, or to sue or prosecute any other party to recover monies payable by them at law. The
Policyholder or the Insured Person must co-operate with the Company and do nothing to hinder the Company’s rights.
16.
Tax or imposts The onus will always be on the Policyholder or the Insured Person to ensure, correctly admit and pay any tax liability in
consideration of any Benefit being paid that may incur tax or imposts of any nature.
17.
Maximum period any one trip The maximum period for any Insured Journey is limited to 90 consecutive Days, unless the Company has
agreed in writing to extend the maximum period of cover for any one trip.
18.
Sanctions Cover will not be provided in respect of any country insofar as such cover violates any trade embargo and / or economic
sanctions, laws or regulations as is binding on the Company.
19.
Information By acceptance of this contract of insurance or the benefits under this Policy the Policyholder or Insured Person acknowledges
that the sharing of claims and underwriting information by the Company is essential to enable the Company to underwrite policies, assess
World Business Card - Page 7 of 16 - Section 23
121
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
WORLD BUSINESS CARD - SECTION 23
risks fairly, ensure compliance with all and necessary applicable legislation, regulations and business compliance requirements (including
any overseas laws, regulations and compliance requirements binding on the Company) and to reduce the incidence of fraudulent claims, in
the public interest and with a view to limiting premiums. The Policyholder and or Insured person, on his own behalf and on behalf of any
person he represents herein, hereby waives any right to privacy in any insurance information provided by him or on his behalf in respect of
any insurance policy or claim made or lodged by him and he consents to such information being disclosed to any other party (including
any subsidiary or parent company of the Company as well as any government or regulatory authority) who has a direct interest in the
information disclosed by the Policyholder / Insured Person / his agent. The Policyholder / Insured Person also acknowledges that the
information provided by him may be verified against any other legitimate sources or databases and waives any rights of privacy and
consent to the disclosure of any information relevant to any insurance policy or claim concerning him.
20.
Medical and Related Expenses Except for Follow up Treatment in South Africa under no circumstances will this policy provide an
indemnity for Medical and Related Expenses which are incurred arise from or relate directly or indirectly to any Medical Treatment, advice
or any other related medical services provided and or incurred in South Africa.
CLAIMS CONDITIONS
1.
Compliance The Policyholder and the Insured Person must follow the Company’s advice or instruction otherwise the Company may decline
to pay the whole or any part of the claim.
2.
Legal action If the Company denies liability for or rejects any claim and the Policyholder does not institute legal action and serve summons
on the Company (or initiate arbitration proceedings if the Company has agreed to submit to arbitration) within 12 months after such denial
or rejection, all benefits of such claim shall be forfeited.
3.
Notice of claim and proof of loss
3.1
The Policyholder or the Insured Person must give the Company notice in writing:
a)
within 90 Days of an Accident which may give rise to a claim under Section 2 of this Policy. Any Benefit related to death will
only be payable if the Company receives written notification of the death within 30 Days of the date of the death. The
Company shall have the right to have a post mortem examination of the body conducted.
b)
within 30 Days of any other occurrence which may give rise to a claim under this Policy.
3.2
The Policyholder must, at its own cost, provide whatever certificates, information and documented evidence (“Evidence”) is required
by the Company regarding the Insured Event.
4.
Recoveries All recoveries net of the Company’s actual recovery costs will be distributed firstly to the Company for all amounts paid and
any remainder will be paid to the Policyholder or the Insured Person in the Companies discretion.
5.
Fraudulent Claims If the Policyholder or the Insured Person, or anyone acting on the Policyholder’s or the Insured Person’s behalf use
any fraudulent means or devices to obtain any Benefit or the claim is in any respect fraudulent, then any amount payable in respect of such
claim shall be forfeited as well as the Company being entitled to immediately cancel the Policy.
6.
General
6.1
The Insured Person shall submit to medical examination at the expense of the Company as often as shall be required in connection
with any claim. Any report generated as a result of such examination shall be the property of the Company and shall be deemed to
be confidential information of the Company.
6.2
Medical Treatment shall be sought and followed promptly on the occurrence of an Injury or Illness and the Company shall not be
liable for that part of any claim which in the opinion of a Medical Practitioner arises from the unreasonable or wilful neglect or failure
of any Insured Person to seek and remain under the care of a qualified Medical Practitioner.
All claims arising from criminal incidents are to be supported and accompanied by a certified police report and case number.
6.3
6.4
The due observance and fulfilment of the Policy insofar as it relates to anything being done or complied with by the Policyholder or
the Insured Person, shall be a condition precedent to liability to make any payment under this Policy.
6.5
The Company shall have the right to access any current or prior medical records of the Insured Person in order to finalise and/or
proceed with the assessment of a claim and/or render medical assistance. By virtue of this clause, the Insured Person shall be
deemed to have given the Company written consent to access any of the Insured Person’s current or prior medical records.
No amount payable in terms of this Policy shall bear any interest.
6.6
GENERAL EXCLUSIONS
The Company will not be liable to pay any Benefit or cover any loss, injury, damage or legal liability sustained directly or indirectly by or caused by
or arising directly or indirectly from:
1.
being in service or on duty with or undergoing training with any military or police force, or militia or paramilitary organisation; or
2.
engaging in occupational activities underground or requiring the use of explosives; or
3.
wilful or deliberate exposure to danger (except in an attempt to save human life), intentional self inflicted injury, suicide or attempt thereat; or
4.
deliberate violation of criminal law; or
5.
acting as part of an aircraft crew; or
6.
travelling by air except where the Insured Person is a fare-paying passenger on a Public Conveyance operated by a commercial airline
company registered for the transport of passengers on regular and published scheduled routes; or
7.
mental disorders including, but not limited to anxiety disorders, eating disorders, psychotic disorders, affective disorders, personality
disorders, substance use disorders, somatoform disorders, dissociate disorders, psychosexual disorders, adjustment disorders, organic
mental disorders, mental retardation and autism; or
8.
sexually transmitted diseases; or
9.
the conditions commonly known as AIDS or HIV and/or any related illness or condition including derivatives or variations thereof, howsoever,
acquired or caused; or
10.
chronic fatigue syndrome or myalgic encephalomyelitis (M.E.) (anticardiolipin antibody positivity) or the Illness commonly referred to as
yuppie flu; or
11.
non-adherence to medical advice; or
12.
an Insured Person
a.
being under the influence of drugs or narcotics unless such drugs or narcotics were adminsitered by a Medical Practitioner or unless
prescribed by and taken in accordance with the directions of a Medical Practioner; or
b.
with drug abuse or addictive conditions of any kind, including alcohol abuse, alcoholism, substance abuse, solvent abuse; or
13.
any:
World Business Card - Page 8 of 16 - Section 23
122
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
WORLD BUSINESS CARD - SECTION 23
a.
b.
Pre-existing Medical Condition of an Insured Person; or
cardiac or cardio vascular or vascular or cerebro vascular illness or conditions or sequelae thereof or complications that, in the
opinion of a Medical Practitioner appointed by the Company, can reasonably be related thereto, if the Insured Person has received
medical advice or treatment (including medication) for hypertension 6 months prior to the commencement of the Insured Journey; or
14.
any condition known to the Insured Person prior to the Effective Date of Coverage, where the Insured Person:
a.
is on the waiting list for Medical Treatment; or
b.
is travelling for the purpose of obtaining Medical Treatment (even if this is not the sole reason for the Insured Journey); or
c.
has received a terminal prognosis; or
d.
has been recommended to continue or to commence any Medical Treatment or medication after the Effective Date of Coverage; or
15.
an Insured Person travelling against medical advice or to seek medical attention or advice or with a terminal condition which was diagnosed
prior to the Insured Journey or when he is unfit to do so; or
16.
any cardiac or cardio vascular or vascular or cerebro vascular illness or conditions or sequelae thereof or complications that, in the opinion
of a Medical Practitioner appointed by the Company, can reasonably be related thereto, for persons aged 70-years and over; or
17.
participating in any sport as a Professional Player; or
18.
engaging in motor cycling; or
19.
any Hazardous Pursuits; or
20.
any claim arising from a tour operator, Public Conveyance operator, airline company or any other company, firm or person being insolvent,
or being unable or unwilling to fulfil any part of the obligation to the Policyholder or the Insured Person; or
21.
consequential loss of any kind or financial loss and/or expense not otherwise specifically covered; or
22.
any terrorist or member of a terrorist organization, narcotics trafficker, or purveyor of nuclear, chemical or biological weapons; or
23.
employment involving Manual Labour.
If the Company alleges that by reason of the above exclusions, loss or damage is not covered by this Policy, the burden of proving the contrary shall
rest on the Policyholder.
General Exclusion 9 above shall not be applicable to Section 2.
PRE-EXISTING MEDICAL CONDITION WAIVER EXTENSION
General Exclusion 13.a above is waived in respect of Section 1 Emergency Medical and Related Expenses for Insured Persons who are under 65
years of age. The maximum the Company will pay in respect of a Pre-Existing Medical Conditions under Section 1 will be as stated in the Schedule
of Benefits.
SECTION 1 – EMERGENCY MEDICAL AND RELATED EXPENSES
SECTION 1A – EMERGENCY MEDICAL EXPENSES
1.
International Journey
If an Insured Person whilst travelling on an International Journey incurs Emergency Medical Expenses as a result of Illness or Injury, the
Company will pay for those expenses.
SECTION 1B - FOLLOW UP TREATMENT IN SOUTH AFRICA
1. If an Insured Person incurs Follow up Treatment in South Africa for an Insured Event covered under Section 1A, 1C, 1D which was first
treated on an Insured Journey, the Company will pay the Insured Person for those expenses provided such Medical Expenses are incurred
within 30 days of his return to the Point of Departure and provided such expenses are not recoverable by or on his behalf from any other
source.
2. If an Insured Person incurs Follow up Treatment in South Africa for Malaria within 30 days of his return to the Point of Departure and such
infection is as a direct result of an Insured Journey, regardless of whether the illness was first diagnosed or treated under Section 1A, the
Company will pay those expenses provided such expenses are not recoverable by or on his behalf from any other source.
SECTION 1C – HOSPITAL CONFINEMENT
The Company will pay for Confinement as a result of Injury or Illness whilst on an International Journey. The Company will pay for each complete
Day of Confinement as stated in the Schedule of Benefits.
SECTION 1D - MEDICAL EVACUATION, REPATRIATION OR TRANSPORT TO MEDICAL CENTRE EXPENSES
If an Insured Person suffers an Illness or Injury covered under Section 1A - Emergency Medical Expenses that necessitates emergency transportation,
the Company will:
1.
transfer the Insured Person to another location to obtain necessary Medical Treatment; and/or
2.
repatriate the Insured Person to his Point of Departure; and/or
3.
pay for the cost of the required service including the necessary accompanying medical staff; and/or
4.
pay for the cost of returning the Insured Person under Section 3C – Alternative Employee or Resumption Expenses.
SECTION 1 – SPECIFIC CONDITIONS
1.
If the Policyholder or the Insured Person wants the Company to pay for any medical expenses in excess of R2,000, Travel Guard must be
contacted and their prior written agreement must be obtained. If not approved by Travel Guard, the Company’s liability will be limited to
R2,000 for any one Insured Event.
2.
Medical Expenses as a result of emergency dental treatment are limited to dentistry received within 30 Days of the Accident.
3.
Medical and Related Expenses shall only be paid until such time as a Medical Practitioner appointed by the Company decides that an
Insured Person is capable of being repatriated. If the Insured Person is capable of being repatriated and elects not to return to the Point of
Departure, all further expenses incurred as a result of the occurrence giving rise to the claim will be for the Policyholder or the Insured
Person’s own account.
4.
If the Policyholder or the Insured Person wants the Company to pay for emergency transportation, Travel Guard must be contacted and
their prior written agreement obtained. This requirement does not include in-country emergency ambulance transfers.
5.
The Company will decide where and how to move the Insured Person depending on the medical advice received.
6.
The Company will use the Insured Person’s return ticket towards their costs if he is returned to his Point of Departure.
World Business Card - Page 9 of 16 - Section 23
123
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
WORLD BUSINESS CARD - SECTION 23
SECTION 1 – SPECIFIC EXCLUSIONS
The Company will not pay for any medical expenses:
1.
Incurred or payable within the Republic of South Africa; or
2.
incurred due to investigatory treatment that is not specified by a Medical Practitioner as immediately necessary; or
3.
for fillings or crowns of precious metal; or
4.
for any procedures relating to dental or oral hygiene; or
5.
for specialist Medical Treatment without referral from a Medical Practitioner; or
6.
relating to contraceptive devices, prosthetic devices, medical appliances or artificial aids; or
7.
for preventative treatment, including but not limited to any vaccination and/or immunisation; or
8.
in excess of R5,000 for either physiotherapy or chiropractic treatment, unless confined to a Hospital.
SECTION 2 - PERSONAL ACCIDENT
SECTION 2A – DEATH AND DISABILITY
If an Insured Person sustains an Injury resulting in an Insured Event described in the Table of Benefits below, the Company will pay the Policyholder,
the Insured Person or the Insured Person’s legal representative the compensation as stated in the Schedule of Benefits.
If an Insured Person disappears and after 24 consecutive calendar months it is reasonable for the Company to believe that he may have died due
to an Injury, the Company will pay the Death Benefit in the Table of Benefits subject to receipt of a signed undertaking by his beneficiary or the
representative / executor of his estate that such compensation shall be refunded if it is later demonstrated that he did not die as a result of an Injury.
This written undertaking will be required at the point where this Benefit becomes payable.
TABLE OF BENEFITS
INSURED EVENT
COMPENSATION EXPRESSED AS A
PERCENTAGE OF THE SUM INSURED
1. Death
a. As a result of an Accident
100%
b. Disappearance
100%
c. Death as a direct result of exposure to the elements of nature as a direct result of an Accident
100%
2. Permanent Total Disablement
a. As a result of an Accident
100%
b. Permanent Total Disablement as a direct result of exposure to the elements of nature as a
direct result of an Accident
100%
SECTION 2A - SPECIFIC CONDITIONS
1.
The Company will not pay for any Benefit in respect of:
(a)
Permanent Total Disablement except on submission of satisfactory medical evidence;
(b)
more than 100% of the Sum Insured when more than one Injury arises from the same Accident;
(c)
more than one category for more than 100% of the Sum Insured. The Benefit payable will be the highest in the appropriate category.
2.
If the Insured Person sustains Permanent Total Disablement and the claim in relation to that disability is admitted and accepted, the Benefit will be paid and all cover under this Section 2A in respect of such Insured Person shall cease.
3.
The diagnosis and determination of Permanent Total Disablement must be made and documented by a Medical Practitioner and must be
continuous and permanent for at least 12 consecutive months from the onset of the disablement. However:
a)
for Permanent and Total Loss of Speech, the loss of the ability to speak must be continuous and permanent for at least 12 consecutive
months and medical evidence must confirm Permanent and Total Loss of Speech and all psychiatric related causes must be
excluded; and
b)
for Permanent and Incurable Paralysis, the loss of use must be continuous and permanent for at least 12 consecutive months from the
onset of the paralysis.
4.
If the Insured Person’s existing ailment, infirmity or other abnormal physical or mental condition is aggravated by an Accident, the Benefit
amount will be determined by the degree of the deterioration of the existing ailment after the Accident and the Benefit will be paid accordingly.
The degree of ailment, infirmity or other abnormal physical or mental condition before the Accident will be determined by medical evidence.
5.
If the consequences of an Accident are aggravated owing to an Insured Person’s existing ailment, infirmity or other abnormal physical or
mental condition, determination of the Benefit will be based on the consequences the Accident would have had, had such defects not
existed. The foregoing shall not apply, however, if such circumstances are a consequence of an earlier Accident to the Insured Person, for
which Benefit has been or will be paid under this Policy.
6.
If an Insured Person dies of natural causes prior to the final disablement assessment relating to an Insured Event, the Company will pay
what reasonably would have had to be paid for such Permanent Total Disablement in accordance with Specific Condition 1(b) above.
7.
In the event of death of Children, the Benefit payable will be subject to the amount legislated by law at the time of the death.
8.
Children are excluded from any Benefit for occupational disability under Permanent Total Disablement.
SECTION 2B - SPOUSE ACCIDENTAL DEATH BENEFIT
If the Insured Person’s Spouse dies as a result of an Accident whilst the Insured Person is on an Insured Journey, the Company will pay to the Insured
Person the amount stated in the Schedule of Benefits. Any other Spouse will not be covered in the event of the payment referred to in this section.
SECTION 2B – SPECIFIC CONDITION
This Benefit is not payable if the Spouse is accompanying the Insured Person on an Insured Journey at the time of the death.
SECTION 2C - EDUCATION FUND SUPPLEMENT
If the Insured Person dies as the result of an Injury during an Insured Journey, the Company will pay for each Child the amount stated in the Schedule
of Benefits.
SECTION 2C – SPECIFIC CONDITIONS
1.
This Benefit is limited to a maximum of 5 Children per claim.
World Business Card - Page 10 of 16 - Section 23
124
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
WORLD BUSINESS CARD - SECTION 23
2.
For this Benefit only, the age of the child shall be extended to include Children under the age of 3 months.
SECTION 2 – SPECIFIC EXCLUSION
The Company will not be liable to pay any benefit under this section in respect of any Insured Person for any Insured Event caused by or arising
directly or indirectly from any type of Illness, or bacterial infection, except that this exclusion shall not apply to medically acquired infections or blood
poisoning, including pyogenic infections, which may result from an accidental cut or wound.
SECTION 3 - TRAVEL GUARD
SECTION 3A - ASSISTANCE SERVICES
Travel Guard arranges access to the following services free of charge:
1.
Online Pre-trip Planning
2.
Cash advances
3.
Embassy / Consular referral
4.
Emergency travel and accommodation arrangements
5.
Transmission of urgent messages
6.
Lost passport assistance
SECTION 3B – ASSISTANCE SERVICES AND ASSOCIATED BENEFITS
Travel Guard arranges access to the following services and the Company will pay up to the amount stated in the Schedule of Benefits.
SECTION 3B.1 - ACCOMPANYING FAMILY MEMBER
If the Insured Person suffers Illness or Injury the Company will pay, subject to medical advice and the Company’s written agreement, the reasonable
Related Expenses for one person to travel to, remain with, or accompany the Insured Person back to his Point of Departure.
SECTION 3B.2 - ALTERNATIVE EMPLOYEE OR RESUMPTION OF ASSIGNMENT EXPENSES
The Company will reimburse the Policyholder for reasonable and necessary expenses to either:
1.
Alternative Employee Send a substitute person to complete the original business commitment of an Insured Person who is unable to do so
due to his unexpected death, Injury or Illness, or who has to return early to his Point of Departure following the unexpected death or
imminent death of a Relative or Business Associate; or
2.
Resumption of Assignment Return the original Insured Person whom the Company has repatriated back to the Point of Departure following
an event covered under Section 1, within 90 Days of such repatriation, to complete his original business commitments.
SECTION 3B.3 - LEGAL ASSISTANCE ABROAD
If the Insured Person is imprisoned or threatened with imprisonment, the Company will help him find a lawyer and will pay the Policyholder or the
Insured Person for the legal expenses paid to a lawyer.
SECTION 3B.3 – SPECIFIC CONDITIONS
1.
The Company shall have complete control over the legal proceedings.
2.
The lawyer nominated by the Company must be qualified to practice in the court of the country where the event, giving rise to the claim
occurred or where the Insured Person is resident. The Insured Person, acting reasonably, does not have to accept the lawyer nominated by
the Company. If the Insured Person does not agree with the Company regarding the suitability of the lawyer, the Company will ask the
ruling body for lawyers in that country to nominate another lawyer. In the interim the Company may appoint a lawyer to protect the Insured
Person’s interests.
3.
If an award or compensation is made and payment is received by the Policyholder or a lawyer instructed on the Policyholder’s behalf, then
all sums advanced or paid by the Company in respect of legal expenses shall be refunded to the Company.
4.
The Policyholder or the Insured Person must notify the Company as soon as possible of any incident which may give rise to a claim but in
any event not later than 48 hours after the incident.
SECTION 3B.3 – SPECIFIC EXCLUSIONS
The Company will not pay for costs or expenses:
1.
incurred without prior authorisation by Travel Guard; or
2.
in respect of the pursuit of a claim against the Company, Travel Guard, a travel agent, tour operator or conveyance carrier; or
3.
incurred as a result of actions between Insured Persons, or actions pursued in order to obtain satisfaction of a judgement or legally binding
decision; or
4.
in respect of claims caused by any member of the Insured Person’s family or household.
SECTION 3B.4 - MOTORING BAIL
If the Insured Person is imprisoned directly as a result of a traffic accident, the Company will provide assistance to the Policyholder or the Insured
Person and advance the bail bond.
SECTION 3B.4 – SPECIFIC CONDITIONS
1.
2.
3.
The Policyholder or the Insured Person must reimburse the Company within a period of 3 months from the date of the advance.
If the Insured Person is summoned to appear in court but does not appear, the Company may immediately demand the reimbursement of
the bail bond in case it becomes irrecoverable as a result of the Insured Person not attending.
The Company may institute legal proceedings against the Policyholder or Insured Person if this bail bond is not recovered.
SECTION 3B.4 – SPECIFIC EXCLUSION
The Company will not pay for any claim where the level of alcohol in the Insured Person’s blood or breath is in excess of the legal limit in the country
in which the traffic accident occurred or the Insured Person was driving under the influence of alcohol.
SECTION 3B.5 - RETURN OF MORTAL REMAINS/BURIAL EXPENSES
If an Insured Person dies, the Company will pay the reasonable cost of returning his mortal remains to the Country of Residence or the Point of
Departure, or the reasonable final expenses and related costs if the body is buried or cremated at the place of death.
SECTION 3B.6 - COFFIN EXPENSES
If an Insured Person dies, the Company will pay for the coffin expenses when the mortal remains are returned to the Country of Residence or Point
of Departure.
World Business Card - Page 11 of 16 - Section 23
125
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
WORLD BUSINESS CARD - SECTION 23
SECTION 3B.7 - SPECIFIC CONDITIONS
A police report must be submitted to the Company as proof of the loss, damage or theft as a result of the burglary.
SECTION 4 - CANCELLATION OR CURTAILMENT
SECTION 4A – CANCELLATION
The Company will reimburse the non-refundable unused portion of travel or accommodation costs paid by the Insured Person following necessary
cancellation of the Insured Journey prior to departure due to:
1.
The Insured Person’s unexpected death, Illness or Injury or the unexpected death, Illness or Injury of the Insured Person’s Spouse,
Business Associate, Children, the person with whom the Insured Person had intended to stay abroad, a Relative or Travel Companion.
2.
Cancellation or diversion of scheduled public transport services, including by reason of strikes or other industrial action, unless there has
been media warning 24 hours before the date the particular Public Conveyance ticket was booked that such events were likely to occur; or
3.
Non availability of the person that is in charge of the Insured Person’s minor or disabled Children due to such person’s unexpected death,
Illness or Injury within 30 Days prior to the date of the Insured Journey.
4.
Serious or considerable accidental material damage to immovable property owned by the Insured Person caused within 30 Days of the
intended date of departure. The cause of such damage must be unintentional, not as a direct result of any action of the Insured Person
and requires him to cancel the Insured Journey for the safeguarding of his interests.
5.
Theft or complete immobilisation of the Insured Person’s Private Motor Vehicle at the moment of departure or during the trip towards the
destination due to a traffic accident, fire or as a result of a hijacking.
6.
Delay in reaching the place of embarkation for any Public Conveyance operating on land, air or water as a result of immobilisation of more
than one hour due to a traffic accident or circumstances beyond one’s control (“Act of God”) during the trip towards the place of embarkation.
7.
A Traumatic Event occurring within 30 Days of the date of departure to the Insured Person, his Spouse, Children or the person abroad with
whom he intended to stay, a Relative or Business Associate where medical advice has been sought and he has been advised not to travel.
8.
Loss or theft of travel documents (travel tickets, passports and visas).
SECTION 4B - CURTAILMENT
The Company will reimburse the Policyholder or the Insured Person the non-refundable unused portion of travel or accommodation costs or
reasonable additional accommodation and/or travel expenses (3-star accommodation and economy class travel costs) (excluding telephone costs,
meals and beverages) paid by the Policyholder or the Insured Person following necessary Curtailment (shortening and/or alteration) of the Insured
Journey due to
1.
His unexpected death, Illness or Injury or the unexpected death, Illness or Injury of his Spouse, Business Associate, Children, the person
with whom he had intended to stay abroad, a Relative or Travel Companion.
2.
Cancellation or diversion of scheduled Public Conveyance, including by reason of strikes or other industrial action, unless there has been
media warning 24 hours before the date the particular Public Conveyance ticket was booked that such events were likely to occur; or
3.
Loss or theft of travel documents (travel tickets, passports and visas); or
4.
Non availability of the person that is in charge of the Insured Person’s minor or disabled Children due to such person’s unexpected death,
Illness or Injury; or
5.
Serious or considerable accidental material damage to immovable property owned by the Insured Person. The cause of such damage
must be unintentional, not as a direct result of any action of the Insured Person and require him to curtail the Insured Journey for the
safeguarding of his interests; or
6.
A Traumatic event occurring after the date of the departure to the Insured Person, his Spouse , Children, Relative or Business Associate
where medical advice has been sought and he has been advised to return to the Point of Departure.
SECTION 4B – SPECIFIC CONDITION
It is a condition that should the Insured Person need to return to the Point of Departure for any reason, Travel Guard must be contacted beforehand
to make the travel arrangements.
SECTION 4 - SPECIFIC EXCLUSIONS
The Company will not pay for any expenses arising directly or indirectly out of:
1.
the Insured Person not being in possession of the required or valid or correct travel documents or visas unless they are lost or stolen; or
2.
carrier caused delays where the cost of the expenses are recoverable from the carrier; or
3.
any business or employment commitment or financial or contractual obligation of the Insured Person or any other person on whom the
Insured Journey depends; or
4.
any change of plans or disinclination on the part of the Insured Person or any other person to travel on an Insured Journey; or
5.
the inability of any tour operator or wholesaler to complete arrangements for any tour due to a deficiency in the required number of persons
to commence any tour or travel; or
6.
default or insolvency of the carrier, tour operator, hotel; or
7.
defective or bad condition of the Private Motor Vehicle planned to be used for the Insured Journey; or
8.
lock-out or prohibitive regulation by the court of any country; or
9.
adverse weather conditions including cyclones, tornados, floods, typhoons, blizzards or other natural disasters at the destination.
SECTION 5 - BAGGAGE, TRADE SAMPLES, PERSONAL EFFECTS, TRAVEL DOCUMENTS, MONEY, CREDIT CARDS AND BAGGAGE DELAY
SECTION 5A - BAGGAGE, MONEY AND CREDIT CARDS & TRAVELLERS CHEQUES
1.
Baggage The Company may choose to replace, repair or pay for the loss, in cash, as a result of the Accidental Loss, Theft or Damage to
the Insured Person’s accompanying Baggage, including suitcases, trunks, hand baggage as well as their contents, portable business
equipment (including computers, cellular phones), business property (including trade samples, business papers, specifications, manuscripts
and stationery for the cost of reproducing such documents but not for the research and development costs) that occurred during the Insured
Journey. The Baggage, Personal Effects and business property must be owned by and accompany the Insured Person.
2.
Money The Company will pay for the Insured Person’s loss of cash, bank or currency notes, cheques, postal or money orders or other
negotiable instruments as a result of Theft during an Insured Journey. In respect of money secured for the purpose of the Insured Journey,
cover shall commence at the time of collection from the bank or 72 hours prior to the start of the Insured Journey, whichever occurs first,
and shall continue for 72 hours after termination of the Insured Journey or until deposited at the bank, whichever occurs first.
3.
Credit Card & Travellers Cheques Replacement The Company will pay the non-recoverable cost of replacing the Insured Person’s credit
cards or travellers cheques as a result of Theft.
World Business Card - Page 12 of 16 - Section 23
126
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
WORLD BUSINESS CARD - SECTION 23
Sum Insured
The maximum amount the Company will pay for any one item, set or pair of items, is 25% of the amount stated in the Schedule of Benefits, unless
otherwise specified in the specific conditions relating to this section. A maximum of 25% of the sum insured stated on the Schedule of Benefits shall
be paid in respect of claims for trade samples or money.
SECTION 5B - BAGGAGE DELAY
The Company will reimburse the Insured Person for reasonable essential expenses incurred for the emergency replacement of essential items if his
Baggage is delayed, misdirected or temporarily misplaced by a carrier for a period of time greater than the Excess period. The maximum daily limit
for each Day that baggage remains misdirected or temporarily misplaced is the limit per Day stated in the Schedule of Benefits.
SECTION 5 – SPECIFIC CONDITIONS
1.
The maximum amount the Company will pay is the amount stated in the Schedule of Benefits, unless otherwise specified in the Specific
Conditions relating to this section.
2.
To account for wear and tear the Company will pay a maximum of 75% of the replacement value for items purchased more than 12 months
prior to the Insured Journey, decreasing thereafter at 10% per year from date of purchase.
3.
The basis of settlement for items purchased within the 12 months prior to the Insured Journey or whilst on the Insured Journey will be the
replacement value of items determined at the Company’s discretion.
4.
There is a single item limit of 25% of the Sum Insured for any Baggage.
5.
The Insured Person shall, in respect of property, Personal Effects, travel documents, money and credit cards which may become the
subject of a claim:
(a)
exercise all reasonable care for the safety, security and supervision thereof at all times and must not leave property unattended in
a public place or in any unlocked vehicle, room or building;
(b)
endeavour to minimise any loss;
(c)
not abandon any property.
6.
It is a condition of payment that loss or damage attributable to Theft, vandalism or loss or damage by carriers be reported to the local police
or appropriate authority as soon as possible after discovery of the loss and that a written acknowledgement of the report be obtained.
7.
A camera and/or video camera, its lenses and accessories shall be regarded as one item.
8.
Sports equipment sets shall be deemed to be one item.
9.
The repair or replacement cost of a cellular phone and any fittings or accessories (all deemed to be a single item) shall be limited to R750
per Insured Person.
10.
A laptop, palmtop, notebook or similar personal computer, and any fittings or accessories including discs/storage mechanisms/carry cases,
shall be deemed to be a single item and the repair or replacement cost shall be limited to R5,000 per Insured Person.
11.
In respect of jewellery claims, original or certified copies of valuation certificates issued prior to the commencement of the Insured Journey
are required. This condition is applicable to all jewellery including gifts and inherited items.
12.
Contact lenses, prescription spectacles or sunglasses are limited to a maximum of R500 per pair over and above any applicable Excess.
13.
14.
15.
Any loss of credit cards, travellers cheques or travel documents must be reported within 24 hours to the issuing authority and the appropriate
cancellation measures taken. The onus will be on the Insured Person to prove that the Company was not prejudiced in any way by late
reporting.
Cash, documents and/or jewellery must be carried on the Insured Person or lodged in safety deposit at the time of loss.
Reasonable measures to save and recover baggage must have been taken by any Insured Person.
In respect of Baggage Delay
16.
Confiscation or requisition by customs or other government authority cannot form the basis of a claim for loss or expenses.
17.
Claims in respect of essential clothing or requisites purchased as a result of delayed baggage will only be considered if items have been
purchased within 4 days after the actual arrival time at the intended destination.
18.
If baggage appears to be delayed or lost at the destination airport, the Insured Person must formally notify the relevant carrier airline immediately.
SECTION 5 – SPECIFIC EXCLUSIONS
The Company will not be liable for:
1.
damage or loss arising from electrical or mechanical breakdown of any item; or
2.
damage to or replacement of any electronic data or software; or
3.
scratching or breakage of fragile or brittle items; or
4.
damage or loss arising from normal wear and tear, decay, gradually deteriorating cause, atmospheric or climate conditions or a defective
feature of the object itself, destruction by moth or vermin, mould or fungus, insects, rodents, any process of cleaning, ironing, pressing,
repairing, restoring or alteration; or
5.
Baggage, Personal Effects, business property, travel documents or money shipped under any freight agreement, unaccompanied Baggage
or items sent by postal or courier services or given to someone else other than a Travel Companion; or
6.
loss, destruction or damage arising from confiscation or detention by customs or other officials or authorities or shortages due to errors,
omissions or depreciation value; or
7.
loss of or damage to bonds, stamps, negotiable instruments, deeds, securities or any kind of bullion; or
8.
personal computers, cellular phones, camera, video camera or any other Electronic Equipment:
(a)
where Accidental Loss, Theft or attempted Theft occurs while such equipment is unattended.
(b)
unless carried by an Insured Person as personal cabin luggage; or
9.
contractual obligations in relation to a cellular phone purchase; or
10.
any goods intended for sale or trade; or
11.
household furniture and household appliances, non-portable property, unless acquired during the Insured Journey for personal use; or
12.
Accidental Loss of sports equipment and tools and/or Damage to sports equipment and tools whilst in use.
SECTION 6 - TRAVEL DELAY AND TRAVEL MISSED CONNECTION
SECTION 6A – TRAVEL DELAY
The Company will reimburse the Insured Person for reasonable essential expenses incurred following unforeseen travel delay for a period of time
greater than the Excess period, up to the daily limits stated in the Schedule of Benefits for each Day of the delay subject to the maximum limit
resulting from:
1.
Loss or Theft of travel documents (travel tickets, passports and visas).
World Business Card - Page 13 of 16 - Section 23
127
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
WORLD BUSINESS CARD - SECTION 23
2.
An accident or mechanical/electrical breakdown involving the transport in which he arranged to travel or was travelling for the purpose of
reaching the Point of Departure and/or departure point from which he had intended commencing an onward journey.
3.
Delay of a scheduled departure of a Public Conveyance due to:
a)
industrial dispute, strike or action; or
b)
adverse weather conditions including cyclones, tornados, floods, typhoons, blizzards, or natural disasters in the country to or
through which he is travelling; or
c)
mechanical/electrical breakdown; or
d)
public transport services failure.
SECTION 6A – SPECIFIC EXCLUSIONS
The Company will not pay for expenses incurred:
1.
where comparable alternative onward transportation has been made available to the Insured Person within the Excess after the scheduled
departure time of a booked flight or within the Excess after an actual flight arrival (in the case of a connecting flight); or
2.
where the delay is due to the withdrawal from service temporarily or permanently of any Public Conveyance on the orders or recommendation
of any Port Authority or the Civil Aviation Authority or any similar body in any country in which advance notice had been given on or before
the date on which the Insured Journey commenced; or
3.
for carrier caused delays where the cost of expenses is recoverable from the carrier.
SECTION 6B – TRAVEL MISSED CONNECTION
The Company will reimburse the Insured Person for reasonable essential expenses incurred if he misses an onward travel connection at the
transfer point during an International Journey due to the late arrival of his incoming confirmed connecting scheduled conveyance and no onward
transportation is available to him within 6 consecutive hours of his arrival. The Company will indemnify the Insured Person for reasonable essential
expenses incurred in respect of hotel accommodation, restaurant meals or refreshments if not provided or compensated by the carrier or any third
party up to the daily limits stated in the Schedule of Benefits for each Day and subject to the maximum limits stated in the Schedule of Benefits.
SECTION 6B – SPECIFIC EXCLUSIONS
The Company shall not be liable:
1.
for any loss arising from failure of the Insured Person to check in according to the itinerary supplied to him; or
2.
for any loss that is covered by any other existing insurance scheme, government programme or which will be paid or refunded by a hotel,
airline, travel agent or any other provider of travel or accommodation.
SECTION 6 – SPECIFIC CONDITION
1.
Written proof of delay from the transport provider must be submitted with any claim and the Company’s liability is subject to it receiving
original receipts for the essential expenses incurred.
2.
Written confirmation from the common carrier or their handling agents of the number of hours delayed and the reasons for the delay must
be submitted with any claim.
SECTION 7 - PERSONAL LIABILITY
The Company will pay all damages, compensation and legal expenses for which the Insured Person becomes legally liable as a result of his actions
whilst on an Insured Journey causing:
a.
Injury, including resultant death, of another person; or
b.
loss of or damage to property.
SECTION 7 – SPECIFIC CONDITIONS
1.
It is a condition of payment that neither the Policyholder nor the Insured Person admits fault or liability to any other person without the
Company’s prior written consent.
2.
No offer, promise, payment or indemnity may be made by the Policyholder or the Insured Person without the Company’s prior written consent.
3.
The Policyholder or the Insured Person must give the Company written notice with full particulars of an event that may give rise to a claim
within 30 Days of the conclusion of an Insured Journey.
4.
Every letter, writ, summons and process must be forwarded to the Company as soon as possible.
5.
The Company is entitled to take over the defence and settlement of claim `in either the Policyholder’s name or in the name of the Insured
Person for the Company’s benefit. The Company shall have full discretion in the conduct of any proceedings and settlement of the claim.
6.
The Company may at any time pay the Policyholder or the Insured Person the amount for which a claim can be settled less any damages
or costs already paid by the Company. The Company will then be under no further liability other than for costs and expenses incurred prior
to making such payment.
7.
No indemnity will be provided for legal liability arising from Injury, Illness or loss as a result of any wilful or malicious act of the Insured Person.
SECTION 7 – SPECIFIC EXCLUSIONS
The Company will not pay damages, compensation or legal expenses in respect of any liability directly or indirectly arising out of or in connection with:
1.
Injury to the Insured Person, a Spouse, Children or to any member of his family ordinarily residing with him; or
2.
Injury to the Policyholder or the Policyholder’s employees arising out of or in the course of employment; or
3.
loss of or damage to property owned by or in control of the Insured Person or any member of his family ordinarily residing with him; or
4.
the ownership, possession or use by or on behalf of the Insured Person of any caravan, mechanically propelled vehicle (other than golf
carts and motorised wheelchairs), aircraft or other aerial device, hovercraft (other than hand-propelled or sailing craft in territorial waters)
or animals; or
5.
loss of or damage to property or Injury arising out of the Policyholder or the Insured Person’s profession, business or trade, or out of
professional advice given by the Policyholder or the Insured Person; or
6.
any contract or agreement unless such liability would have arisen in the absence of that contract or agreement; or
7.
judgements which are not in the first instance either delivered by or obtained from a court of competent jurisdiction within the Republic of
South Africa or the country in which the event occurred giving rise to the Policyholder or the Insured Person’s liability; or
8.
any claim for fines, penalties, punitive, exemplary, aggravated or vindictive damages.
SECTION 8 – HIJACK, KIDNAP AND WRONGFUL DETENTION
SECTION 8A - HIJACK OF A PUBLIC CONVEYANCE
The Company will pay the benefit in the Schedule of Benefits in the event of the unlawful seizure or wrongful exercise of control of a Public
World Business Card - Page 14 of 16 - Section 23
128
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
WORLD BUSINESS CARD - SECTION 23
Conveyance in which the Insured Person is travelling (including the crew thereof) provided that such seizure or wrongful control continues for a
period of time greater than 12 hours.
SECTION 8B – KIDNAP AND WRONGFUL DETENTION
The Company will indemnify the Insured Person for Covered Losses should any of the following Insured Events happen to an Insured Person during
the Insured Journey within the Territorial Limits:
1.
Kidnapping or alleged Kidnapping of an Insured Person; or
2.
Wrongful Detention.
COVERED LOSSES
The Company will indemnify the Insured Person for the following covered losses:
1.
Reasonable fees and expenses of Clayton Consultants incurred as a direct result of and in relation to an Insured Event covered under this
section.
2.
Any reasonable and necessary expenses incurred and paid by the Insured Person solely and directly as a result of an Insured Event
covered under this section, in respect of:
(a)
The amount paid by the Insured Person as reward to an Informant for information relevant to such Insured Event;
(b)
Reasonable costs of Insured Journey and accommodations as follows:
(i)
(ii)
(c)
costs incurred by the Insured Person while attempting to negotiate an incident covered under such Insured Event;
travel costs of a Victim to join their immediate family upon their release, and the travel costs of an employee to replace the
Victim;
Rest and rehabilitation expenses, including travel and lodging of the Victim and the Victim’s Spouse and/or Children;
(d)
Reasonable and necessary fees and expenses of a qualified interpreter assisting the Insured Person as a result of and during such
an Insured Event;
The Insured Person’s salary for the duration of the kidnapping, which shall mean the amount of remuneration previously paid by the
employer at an annual rate including but not limited to bonuses, commissions, cost of living adjustments or foreign tax reimbursements
the Insured Person would normally receive, contributions to pension and benefit programmes (at the level in effect on the date of
Kidnapping) which the employer continues to pay, on behalf of the Insured Person for the duration of the Kidnapping. The salary will
be paid until the earliest of the following:
(i)
up to 30 Days after the release of the Insured Person, if the Insured Person has not yet returned to work; or
(ii) discovery of the death of the Insured Person; or
(iii) 120 Days after the Company receives the last credible evidence that the Insured Person is still alive; or
(iv) 60 months after the date of the Kidnapping.
(e)
3.
The amount of remuneration, paid by the employer at an annual rate, of an individual newly hired to conduct the specific duties of an
Insured Person while he is absent due to a Kidnapping for as long as the Insured Person’s own salary is covered.
Territorial Limits
This cover applies to incidents anywhere in the world except for:
(a)
Angola, Brazil, Colombia, Mexico, Nigeria, Philippines, Somalia and Venezuela; and
(b)
any other country where the British Foreign and Commonwealth Office and/or the South African Department of Foreign Affairs has
issued a travel warning; and
(c)
any other country in which the United Nations Armed Forces are present and active.
SECTION 8B – SPECIFIC EXCLUSIONS
The Company will not be liable for loss caused by or resulting either directly or indirectly from or involving:
1.
The fraudulent, dishonest or criminal acts of the Insured Person or any person authorised by the Insured Person to have custody of ransom
monies. This exclusion will not apply to the payment of ransom monies by the Insured Person in a situation where local authorities have
declared such payment illegal.
2.
Monies or property surrendered away from the Insured Person’s premises in any face-to-face encounter involving the use or threat of force
or violence unless surrendered by a person in possession of such monies at the time of such surrender for the sole purpose of conveying
it to pay a demand for ransom monies previously communicated to the Insured Person.
3.
Monies or property surrendered on the Insured Person’s premises unless brought to the premises after receipt of a demand for ransom
monies for the purpose of paying that demand.
4.
Actual loss of or damage to property of any description, including intellectual property, as a result of an Insured Event. This exclusion does
not apply to in-transit/delivery loss of ransom monies as described under Covered Losses 2.
5.
Any loss from Kidnap if the Insured Person is permanently residing or is staying for more than 90 consecutive Days in the country where
the event occurs.
6.
Any violation of the laws of the host country by the Insured Person or failure to maintain and possess duly authorised and required
documents and visas.
7.
Failure of the Insured Person to evacuate from the host country within 10 Days after the issuance of an advisory or travel to country/ies
after an advisory has been issued.
8.
The Insured Person taking part in the operations of any governmental organisation, official law enforcement or military force.
SECTION 8B – SPECIFIC CONDITIONS
1.
Confidentiality The policyholder and the Insured Person/s will use all reasonable efforts not to disclose the existence of the cover provided
by this section or any other insurance policy.
2.
Limits of Liability For each Covered Loss the maximum limit and aggregate limit of the Company’s liability will not exceed the Sum Insured/s
stated in the Schedule of Benefits and schedule by reason of any one event, except where stated to the contrary. All Covered Losses will
be deemed to have been incurred during the policy period in which the event occurred.
3.
Due Diligence The Insured Person/s will use due diligence and do and concur in doing all things reasonably practicable to avoid or diminish
any loss/es insured under this section.
4.
Other Insurance The insurance provided under this section will be in excess over any other valid and collectable bond or insurance.
5.
Statement of Loss The Insured Person will file a detailed, sworn statement of loss with the Company as soon as possible after the Insured Event.
6.
Non-employee Directors Notwithstanding the provisions of Maximum Amount Payable, in the event that the Insured Person is a non-
World Business Card - Page 15 of 16 - Section 23
129
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009
WORLD BUSINESS CARD - SECTION 23
employee director and is insured under any other similar policy or policies issued by the Company (or by any other member or affiliated
insurance company of Chartis Insurance.) and a loss involving that director is reported under this Section 8B and under one or more such
other policies, then the Company’s aggregate liability (including that of any of the Company’s other member company/ies) for each loss will
not be cumulative and will not exceed the highest limits of liability applicable to each loss under any one of the policies.
7.
Non-assignment This section or any claim paid out in terms of this section may not be assigned or transferred.
8.
Assistance and Co-operation The Insured Person/s will co-operate with the Company in all matters relating to this insurance. This may
include attending hearings and trials, securing and giving evidence, obtaining the attendance of witnesses, assisting in achieving
settlements, and in conducting litigation, arbitration or other proceedings.
9.
Inspection and Audit The Company may examine and audit the Insured Person’s business documents relating to the subject matter of this
insurance until three years after this policy has expired or has been cancelled. Any premium due for exposures, which exists but was not
reported, will be determined by the Company’s audit.
10.
Recoveries In the event of any payment under this section, all recoveries, net of the Company’s actual recovery costs, will be distributed
firstly to the Company for all amounts paid by the Company under this Section 8B and any remainder will be paid to the Insured Person.
11.
Changes Notice to any of the Company’s representatives or knowledge possessed by any representative or by any person will not create a
waiver or a change in any part of this section or stop the Company from asserting any right under the terms of this section, nor will the terms
of this section be waived or changed unless agreed to in writing by the Company.
12.
Notices Except as indicated to the contrary, all notices, applications, demands or requests provided for in this section will be in writing and
will be given to or made upon either party at its address shown in the policy.
SECTION 9 – NATURAL DISASTER
The Company will reimburse the Insured Person for the cost of providing other similar accommodation if his booked accommodation cannot be lived
in because of a fire, flood, earthquake or storm and/or the additional costs for changing his means of public transport used.
SECTION 9 – SPECIFIC CONDITION
Any event that results in a claim under this section must not have been known about before the Insured Person left from his Point of Departure.
SECTION 9 – SPECIFIC EXCLUSIONS
The Company shall not be liable for:
1.
any expense the Insured Person can recover from any tour operator, airline, hotel or other service provider.
2.
any expenses the Insured Person would normally have to pay during the period.
3.
any claim directly resulting from the Insured Person travelling against the advice of the appropriate national or local authority.
SECTION 10 - TICKET UPGRADE
The Company will reimburse the Insured Person for the essential upgrade of a conveyance ticket during an International Journey due to:
1.
the delay of his confirmed scheduled conveyance and if no onward transportation is available to him within 6 consecutive hours of the
scheduled departure time; or
2.
the Insured Person not being admitted to a confirmed scheduled conveyance due to overbooking and if no other means of transport is
made available to him within 6 hours after the scheduled time of departure of the scheduled conveyance; or
3.
the Insured Person missing an onward travel connection at the transfer point during an International Journey due to the late arrival of his
incoming confirmed connecting scheduled conveyance and no onward transportation is available to him within 6 consecutive hours of his arrival.
SECTION 10 - SPECIFIC CONDITION
Written proof of delay from the transport provider must be submitted with any claim and the Company’s liability is subject to it receiving original
receipts for the expenses incurred.
SECTION 10 - SPECIFIC EXCLUSIONS
The Company shall not be liable:
1.
for any loss arising from failure of the Insured Person to check in according to the itinerary supplied to him, and he must obtain written
confirmation from the common carrier or their handling agents of the number of hours delayed and the reasons for the delay.
2.
for any loss that is covered by any other existing insurance scheme, government programme or which will be paid or refunded by a hotel,
airline, travel agent or any other provider of travel or accommodation.
3.
where the delay is due to industrial dispute, strike or action which existed, or for which advance notice had been given, on or before the
date on which the Insured Journey commenced.
SECTION 11 – MOTOR HIJACK EXTENSION
SECTION 11A – PERSONAL ACCIDENT
The Period of Insurance for Section 2 is extended to 8 hours before the scheduled departure time of a Public Conyeance and 8 hours after the
scheduled time of arrival back in South Africa specifically for Motor Hijack with benefit limits stated in the Schedule of Benefits in respect of an
International Journey.
SECTION 11B – BAGGAGE
The Period of Insurance for Section 5 is extended to 8 hours before the scheduled departure time of a Public Conyeance and 8 hours after the
scheduled time of arrival back in South Africa specifically for Motor Hijack and resultant Theft of Baggage with the benefits limits stated in the
Schedule of Benefits in respect of an International Journey.
SECTION 11C - POST TRAUMATIC STRESS DISORDER
The Company will pay the amount in the Schedule of Benefits for Post Traumatic Stress which was caused solely by a Motor Hijack which occurred
8 hours before the scheduled departure time of a Public Conyeance and 8 hours after the scheduled time of arrival back in South Africa in respect
of an International Journey.
SECTION 12 - VIP EXCLUSIVE BENEFITS CLUB
VIP Exclusive Benefits Club provided by Global Choices is available to Insured Persons on selected Plans as stated on the Schedule of Benefits.
To take advantage or find out more about VIP Exclusive Benefits Club:
CONTACT NUMBER: +0861 244747
World Business Card - Page 16 of 16 - Section 23
130
Chartis South Africa Limited is a Licensed Financial Services Provider FSP No. 15805 Reg. No. 1962/003192/06
Chartis (Multi Armour) October 2009