Whereas the Insured named in the Schedule(s) hereto has provided certain information to the ..................................(hereinafter called "the Insurers") and the Insurers have accepted this information which shall be the basis of this policy and is deemed and to be incorporated herein.

    Now this Policy of Insurance witnesseth that subject to the Insured having paid or agree to pay to the Insurers the premium mentioned in the Schedule(s) and subject to the terms, exclusions, provisions and conditions contained herein or endorsed hereon the Insurers will indemnify the Insured in the manner and to the extent hereinafter provided.


    The Insurers will not indemnify the Insured in respect of loss destruction damage or expense hatsoever directly or indirectly caused by or arising out of or aggravated by


    1. War, invasion, act of foreign enemy hostilities or warlike operations (whether war be declared or not ) or civil war; Mutiny, civil commotion assuming the proportions of or amounting to a popular rising, military rising, insurrection, rebellion, revolution, military or usurped power, confiscation, requisition or nationalization, acts of terrorism committed by a person acting on behalf of or in connection with any organisation. "Terrorism" means the use of violence for political ends and includes any use of violence for the purpose of putting the public or any section of the public in fear.

    2.1. Ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nukliear fuel.

    2.2 The radioactive toxic explosive or othe hazardous properties of any nuclear Assembly or nuclear component the reof.

    3. Wilful act or wilful negligence of the Insured or of his representatives.

    4.Total or partial cessation of work

    In any action, suit or other proceeding where the Insurers allege that by reason of the provisions of Exclusion 1) and 2) above any loss, destruction, damage, expense or liability is not covered by this insurance the burden of proving that such loss, destruction, damage, ense or liability is covered shall be upon the Insured.


    1. Definition
    The Schedule the Section (s) and the Endorsement (s) and the Questionnaire shall be deemed to be incorporated in and form part of this policy and the expression " this Policy " wherever used in the act shall be read as including the Schedule(s) the Section(s) and the Endorsement(s) and Questionnaire(s).

    Any word or expression to which a specific meaning has been attached in any part of a Section or of the Endorsement or Questionnaire shall bear such meaning wherever it may appear in such Section, Edorsement or Questionnaire.

    2. Policy Voidable

    This policy shall be voidable in the event of misdescription, misrepresentation or non-disclosure in any material particular.

    3. Alteration

    3.1. This Policy shall be avoided withrespect to any of the Property Insured in regard to which there be any alteration after the commencement of this insurance.

    3.1.1. By removal or
    3.1.2. Whereby the risk of loss destruction or damage is increased or
    3.1.3. Whereby the interest of the Insured ceases except by will or operation of law unless admitted by the Insurer in writing.

    4. Warranties

    Every warranty to which this Policy is or may be made subject shall from the time the warranty attaches apply and continue to be in force during the whole currency of this policy and non-compliance with any such warranty in so far as it increases the risk of any loss, destruction or damage shall be a bar to any claim in respect of such loss destruction or damage.

    5. Reasonable Precautions

    The Insured shall take all reasonable precautions to prevent loss, destruction or damage, e.g. take at his own expense all reasonable precautions, comply with all reasonable recommendations of the Insurers to prevent loss, destruction or damage, comply with statutory requirements and manufacturers' recommendations.

    6. Right of Inspection

    Representatives of the Insurers shall at any reasonable time have the right to inspectand examine the risk and the Insured shall provide the representatives of the Insurers with all details and information necessary for the assessment of the risk. Said inspection/examination shall not impose any liability of the Insurers and shall not be taken as guarentee for the Insured of the safety standards of his operations.

    7. Claims Procedure

    7.1. In the event of any occurrence which might give rise to a claim under this Policy, the Insured shall:

    - Immediately notify the Insurers by telephone or telegram as well as in writing about the nature and extent of loss, destruction or damage

    - Take all steps within his power to minimize the extent of the loss destruction or damage

    - Preserve the parts affected and make them available for inspection by a representative or surveyor of the Insurers

    - Furnish all such information and documentary evidence as the Insurer may require

    - Immediately inform the police authorities in case of loss or damage due to theft or burglary or malicious damage.

    Upon notification being given to the Insurers under this condition, a representative of the Insurers shall have the opportunity of inspecting the loss, destruction or damage before any repairs or alterations are effected. If a representatives of the Insurers does not carry out the inspection within a period of time which could be considered as adequate under the circumstances the Insured is entitled to proceed with the repairs or replacement.

    7.2. The Insured shall not be entitled to abandon any property to the Insurers whether taken possession of by the Insurers or not.

    7.3. No claim shall be payable under this policy unless the terms of this Condition have been complied with

    7.4. F r a u d

    If a claim is fraudulent in any respect or if fraudulent means are used by the Insured or by anyone acting on his behalf to obtain any benefit under this policy or if any loss or destruction of or damage to the Property Insured or to property used by the Insured at the Premises for the purpose of the Business is caused by the wilful act or with the connivance of the Insured all benefit under this Policy shall be forfeited.

    8. Indemnification

    8.1. The Insurers shall indemnify adjusted losses within 30 days after receipt of loss adjuster's final report or equivalent proof of loss

    8.2. Liability having been admitted, payments on account not exceeding the minimum amount justified by the prevailing circumstanc shall be effected

    8.3. The Insurers shall be entitled to withhold indemnification

    - If there are doubts regarding the Insured's right toreceive the indemnity, pending receipt by the Insurers of the necessary proof

    - If in connection with the claim an examination by the police or an inquiry under criminal law has been instituted against the Insured, pending completion of such examination or inquiry

    9. Interest Payments
    The Insurers shall not be liable to pay interest other than interest for default.

    10. Arbitration

    If any difference shall arise as to the amount to be paid under this Policy (liability being otherwise admitted) such difference shall be referred to the decision of an Arbitrator to be appointed in writing by the parties; if they cannot agree upon a single Arbitrator to the decision of two Arbitrators, one to be appointed in writing by each of the parties, within one calendar month after having been required in Writing so to do by either of the parties or in case the Arbitrators do not agree, of an Umpire to be appointed in writing by the Arbitrators before entering upon the reference. The Umpire shall sit with the Arbitrators and preside at their meetings. The making of an award shall be a condition precedent to any right of action against the Insurers.

    11. Subrogation
    The Insured shall at the expense of the Insurers do and concur in doing and permit to be done all such acts and things as may be necessary or required by the Insurers in the interest of any rights or remedies, or of obtaining relief or indemnity from parties (Other that those insured under this policy) to which the Insurers shall be or would become entitled or subrogated upon their paying for or making good any loss, destruction, damage or liability under this Policy, whether such acts and things shall be or become necessary or required before or after the Insured's indemnification by the insurers.

    12. Other Insurance

    If at the time any claim arises under this Policy there is any other insurance covering the same loss destruction or damage the Insurers shall not be liable to pay or contribute more than their rateable proportion of any claim for such loss destruction or damage.

    13. Period of Insurance

    The period of insurance is one year. Inception and expiry shall both be 12 o'clock noon at the dates entered in the Schedule.

    The Insurance isautomatically renewed for a year, unless Insurer or Insured request in writing the termination at expiry date, giving 30 days notice.

    14. Average
    The sums insured of each item under this policy (other than those applying solely to fees, rent, removal of debris or private dwelling houses) are declared to be separately subject to Average.

    If the Property Insured under any item shall at the commencement of any loss, damage or destruction hereby insured against be collectively of greater value than the respective sum insured, then the Insured shall be considered as being his own insurer for the difference and shall bear a rateable share of the loss accordingly.

    15. Deductibles

    This Policy does not cover the amounts of the deductibles stated in the Schedule in respect of each and every loss as ascertained after the application of all other terms and conditions of the policy including any condition of Average.

    Warranted that the Insured shall not effect insurance in respect of the amounts of the deductibles stated in the Schedule.

    16. Sum(s) Insured

    The sum(s) insured shall not be reduced by any indemnity payments.


    The Insurers hereby agree with the Insured that if at any time during the period of insurance the items or any part thereof entered in the Schedule and whilst at the premise(s) described in such Schedule shall suffer any unforeseen sudden and accidental physical loss, destruction or damage other than those specifically excluded in the General or Special Exclusions in a manner necessitating repair or replacement, the Insurer will indemnify the Insured in respect of such loss, destruction or damage as hereinafter provided by payment in cash, replacement of repair (at the Insurer's option) up to an amount not exceeding in respect of each of the items at any location specified in the Schedule the sum set opposite thereto (suminsured) and not exceeding in any one event the limit of indemnity where applicable and not exceeding in all the total sum expressed in the schedule as insured hereby.

    Special Exclusions

    1. The Insurers shall not be liable for loss destruction of or damage to :

    1.1 Property in the course of construction or erection

    1.2 Property being worked upon and actually arising from the process of manufacture testing repairing cleanin restoring alteration renovation or servicing

    1.3 Property in transit by road, rail, air or water
    1.4 Licensed road vehicles, railway, locomotives and rolling stock, water craft, aircraft, spacecraft and the like

    1.5 Jewellery, precious stones, precious metals, bullion, furs, curiosities, rare books or works of art.

    1.6 Standing timber, growing crops, animals, birds, fish

    1.7 Land (including topsiol bakcfill drainage or culvert), driveways, pavements, roads, runways, railway lines, dams, reservoirs, surface water, underground water, canals, rigs, wells, pipelines, cables, tunnels, bridges, docks, piers, wharves, mining property underground, offshore property.

    1.8 Property in the possessions of customers under Rental Agreements or hire Purchase Credit or other Suspensive Sale Agreements
    1.9 Property which at the time of the happening of loss, destruction or damage is insured by or would but for the existence of this policy be insured by any marine policy or policies

    2. The Insurers shall not be liable for loss destruction of or damage to the property insured directly or indirectly caused by or arising out of or aggravated by;

    2.1 Delay, loss of market or other consequential or indirect loss or damage of any kind or description whatsoever

    2.2 Dishonesty, fraudulent act, trick, device or other false pretense

    2.3 Disappearance, unexplained or inventory shortage

    2.4 Joint leakage, failure of welds, cracking, fracturing, collapse or overheating of boilers, economisers, superheaters, pressure vessels or any range of steam and feed piping in connection therewith, mechanical or electrical breakdown or derangement in respect of the particular machine apparatus or equipment in which such breakdown or derangement originates

    2.5 All gradually operating causes, including but not limited to wear and tear, rust, corrosion, mildew, mould, fungus, wet or dry rot, gradual deterioration, latent defect, inherent vice, slowly developing deformation or distortion, insects larvae or vermin of any kind, microbes of any kind, unless sudden and unforeseen physical loss, destruction or damage ensues, in which case Insurers' liability shall be limited to such ensuing loss damage or destruction

    2.6 Pollution or contamination, unless caused by 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, malicious persons (other than thieves), earthquake, storm, flood, escape of water from any tank apparatus or pipe or impact by any road vehicle or animal

    2.7 Enforcement of any ordinance or law regulating the construction, repair or demolition of any Property Insured hereunder except as provided for in the Public Authorities Memorandum incorporated in this Section

    2.8 Shrinkage, evaporation, loss of weight, change in flavour, colour, texture or finish, action of light

    2.9 Change in temperature or humidity, failure or inadequate operation of any air-conditioning cooling or heating system due to operating error. The burden of proof that no operating error occurred, shall be upon the Insured.

    2.10 Exposure to weather conditions where property is left in the open or not contained in fully enclosed buildings

    3. The Insurers shall not be liable for the costs :

    3.1 Of rectifying defective materials, faulty workmanship or design

    3.2 Of normal upkeep, normal making good, maintenance

    3.3 Arising from false or unauthorised programming, punching,
    labeling or inserting, inadvertent canceling of information or discarding of data media and from loss of information caused by magnetic fields.

    Special Conditions

    1. Sums Insured

    It is requirement of this insurance that the sums insured stated in the Schedule shall not be less than the cost of reinstatement as if such property were reinstated on the first day of the Period of Insurance which shall mean the cost of replacement of the insured items by new items in a condition equal to but not better or more extensive than its condition when new.

    2. Basis of Loss Settlement

    In the event of any loss, destruction or damage the indemnification under this section shall be calculated on the basis of the reinstatement or replacement of the property lost, destroyed or damaged, subject to the following provisions :

    2.1 Reinstatement or Replacement shall mean

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

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

    2.2 Special Provisions

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

    2). Where any property is lost destroyed or damaged in part only the liability of the Insurers shall not exceed the sum representing the cost which the Insurers could have been called upon to pay for reinstatement if such property had been wholly destroyed.

    3). If at the time of reinstatement the sum representing the cost which would have been incurred in the reinstatement if the whole property covered by such item had been destroyed exceeds the sum insured thereon at the commencement of any destruction of or damage then the Insured shall be considered as being his own insurer for the difference between the sum insured and the sum representing the cost of reinstatement of the whole of the property and shall bear a rateable proportion of the loss accordingly

    4) Until the cost of reinstatement or replacement shall have been actually incurred the amount payable under each of the items shall be calculated on the basis of the actual cash value of such items immediately before the loss destruction or damage with due allowance for depreciation for age use and condition.

    3. First Loss Insurance

    3.1 The items mentioned hereinafter are covered on a First Loss Basis, subject to amounts per item entered in the Schedule :

    - Money and stamps (................)

    - Employees Pedal Cycles and other Personal Effects (...........)

    - Documents, Manuscripts and Business Books; only the value of materials as stationery together with the cost of clerical labour expended in writing up and not the value of the information to the Insured (................)

    - Computer systems records : the value of materials together with the cost of clerical labour and computer time expended in reproducing such records (excluding any expense in connection with the production of information to be recorded therein), but not for the value of the information contained there into the Insured (...........).

    - Petterns, Models, Moulds, Plans and Designs; an amount not exceeding the cost of the labour and materials expended in reinstatement (.............).

    3.2 Debris Removal

    This policy covers the necessary expense for removal of debris of insured property from the described premises as a result of physical loss destruction or damage insured against under this policy.

    The Company's total liability for debris removal is limited to 10% of Total Sum Insured.

    4. Capital Additions

    The insurance by this Policy shall subject to its terms and conditions extend to cover :

    - Any newly acquired buildings, machinery and other equipment in so far as the same are not otherwise insured, and

    - Alterations, additions and improvements to buildings, machinery and other equipment during the current period of insurance at any of the premises hereby insured, provided that :

    1). At any one location this increase shall not exceed 10% of the total sum insured on such item or .............whichever is higher

    2). The Insured advise the Insurers within three months of the particulars of any such capital additions and pay such additional premiums as the Insurers may require.