Terms & Conditions

(Note that this is an abbreviated form of the policy wording, which takes precedence over the following terms and conditions)

INSURING CLAUSES

In consideration of the payment of the premium and in reliance upon the statements made to underwriters contained in the proposal, which forms the basis of the policy, subject to the Limit of Underwriters' Liability, exclusions and other terms and conditions of the policy, underwriters agree to :

a) Trustees and Administrators Insurance

Pay on behalf of each and every Assured, Loss arising from any Claim or Claims first made against any Assured jointly or severally and reported to Underwriters during the Policy Period by reason of any Wrongful Act by any Assured except to the extent that the Assured has been or is entitled to be indemnified from any other source.

b) Fund Reimbursement

Pay on behalf of the Fund or the Employer Company, Loss arising from any Claim or Claims first made against any Assured jointly or severally and reported to Underwriters during the Policy Period by reason of any Wrongful Act by any Assured in circumstances where any provision in the Fund deed or relevant legislation operates to protect or reimburse the Assured and the Claim would otherwise have been the subject of payment under a) above.

 

1. DEFINITIONS

The following definitions shall have the same meaning throughout the Policy whether expressed in the singular or plural :

ii) costs and charges and expenses of legal representation.

                                                    "Loss" shall not include :

a) fines or penalties imposed by law;

b) punitive or multiple or exemplary damages (other than for exemplary damages awarded in an action for defamation);

c) any amount for which the Assured is not legally liable.

1.5 "Wrongful Act" means any actual or alleged breach of duty, breach of statutory duty, breach of trust, neglect, error, mis-statement, misleading statement, omission, defamation, unintentional breach of confidentiality or other act wrongfully committed or omitted or attempted by the Assured which arises solely by reason of their acting on behalf of the Fund.

1.6 "Third Party Service Provider" means those persons or companies, appointed by the Assured to provide certain services to the Fund.

1.7 "Claim" shall mean :

a) any summons or other application of any description whatsoever or counter claim issued against or served upon the Assured for any Wrongful Act; or

b) any written communication alleging a Wrongful Act, communicated to the Assured.

 

2. EXCLUSIONS

Underwriters shall not be liable for any Claim or Claims :

2.1 where legal action or litigation is brought in a court of law within the excluded territories stated in the Schedule or where legal action or litigation is brought in a court of law outside those territories to enforce a judgment in those territories whether by way of reciprocal agreement or otherwise;

2.2 for any actual or alleged bodily injury, sickness, disease or death of any person or any actual or alleged loss or damage to or destruction of any tangible property including loss of use thereof;

2.3 based upon, arising out of, directly or indirectly resulting from or in consequence of or in any way involving actual or alleged seepage, pollution; or contamination of any kind;

2.4 arising out of the depreciation or loss of investments when such depreciation or loss is as a result of any fluctuation in any financial or stock or commodity or other markets where such fluctuation is outside of the influence or control of the Assured;

2.5 brought about by or contributed to or consequent upon :

a) loss or destruction of or damage to any property whatsoever or loss or expense whatsoever resulting or arising therefrom or any consequential loss; or

b) any legal liability of whatsoever nature, directly or indirectly caused by or contributed to by or arising

from :

(i) ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel;

(ii) the radioactive, toxic, explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof.

 

    2.6 arising out of or in connection with Loss

a) which has been notified to the Underwriters on any other policy of insurance effected prior to the inception of the Policy; or

b) which was known to the Assured prior to the inception of the Policy.

    2.7 arising from Loss where indemnity is available from another source or party;

    2.8 based upon, arising out of, directly or indirectly resulting from or in consequence of the failure of the Employer Company to make adequate contributions to the Fund unless such Claim or Claims are made against any Trustee of the Fund;

    2.9 Any Wrongful Act pertaining to any Assured shall not be imputed to any other Assured.

 

3. LIMIT AND RETENTION

3.1 Underwriters' total aggregate liability under all Insuring Clauses together shall not exceed the amount stated in the Schedule.

3.2 Underwriters shall only be liable under Insuring Clause a) to pay in excess of the amount stated in the Schedule which amount applies to each and every Loss for each individual Assured against whom a Claim is made other than the Employer Company when the amount stated shall apply. Any individual Assured subject to the excess stated shall be subject to the maximum amount stated when a Claim is made against more than one individual Assured. Such amounts include all costs, charges and expenses including Claims handling expenses and are to be borne by the Assured and are not to be insured.

3.3

a) Underwriters shall only be liable under Insuring Clause b) to pay in excess of the amount stated in the Schedule which amount applies to each and every Loss. Such amount includes all costs, charges and expenses including Claims handling expenses and such amount is to be borne by the Assured and/or Fund and is not to be insured.

b) The amount stated shall apply to Loss resulting from any Claim if indemnification by the Fund or Employer Company is required by law or is legally permissible to the fullest extent permitted by law, regardless of whether or not actual indemnification is made, unless the Fund or Employer Company is unable to make such indemnification solely by reason of their insolvency.

 

4. CLAIMS PROVISION

                                        4.1 The Assured shall give to Underwriters immediate notice in writing during the Policy Period of :

a) any Claim made against any Assured; or

b) the receipt of notice from any person or entity of their intention to make a Claim against the Assured for the results of any Wrongful Act; or

c) any circumstances of which the Assured shall become aware which might reasonably be expected to give rise to a Claim being made against the Assured, giving reasons for the anticipation of such Claim, with full particulars as to dates and persons involved.

Such notice having been given as required by b) or c) above, any subsequent Claim being made shall be deemed to have been made during the Policy Period.

4.2 The Assured shall not admit liability for or settle any Claim or incur any costs, charges or expenses without the written consent of Underwriters who shall be entitled at any time to take over and conduct in the name of any Assured or the Fund the defense or settlement of any Claim or to prosecute in the name of any Assured or the Fund for their own benefit any Claim for indemnity or damages or otherwise against any third party. In any event no action shall be taken which might prejudice Underwriters. Nevertheless neither any Assured nor the Fund shall be required to contest any legal proceedings unless Counsel (to be mutually agreed upon by the Assured, the Fund and Underwriters) shall advise that such proceedings should be contested.

4.3 Underwriters shall not settle any Claim without the consent of the Assured. If however the Assured shall refuse to consent to any settlement recommended by Underwriters and shall elect to contest or continue any legal proceedings in connection with such Claim then Underwriters' liability for the Claim shall not exceed the amount by which the Claim could have been so settled plus the costs, charges and expenses incurred with their consent up to the date of such refusal, and then only up to the amount stated in the Schedule.

4.4 The Assured must take all steps to prevent further Loss.

 

5. CONDITIONS

5.1 In the event of Underwriters being entitled to avoid the Policy ab initio, Underwriters may at their election instead give notice in writing to the Assured that they regard the Policy as of full force and effect save that there shall be excluded from any payment afforded thereunder any Claim which has arisen or which may arise and which is related to the circumstances which would entitle Underwriters to avoid the Policy. The Policy shall then continue in full force and effect but shall be deemed to exclude as if the same had been specifically endorsed ab initio the particular Claim or possible Claim referred to in the said notice.

5.2 In the event of the takeover or merger of the Employer Company, any payment provided hereunder is amended to apply only to Claims resulting from any Wrongful Acts committed by any Assured prior to the date of such takeover or merger provided always that such Claim is made during the Policy Period.

5.3 In the event of any payment under the Policy, Underwriters shall be subrogated to the extent of such payment to the Assured's rights of recovery thereof, and the Assured shall execute all papers required and shall do everything that may be necessary to secure such rights including the execution of such documents necessary to enable Underwriters effectively to bring suit in the name of the Assured.

5.4 The Assured shall immediately notify the Underwriters in the event of the following :

a) The actual or intended winding-up of the Fund or the consolidation or merger of the Fund with another.

b) The liquidation, judicial management or insolvency of the Employer Company; or any other similar development.

On receipt of such notice, Underwriters hereon shall have the right to make reasonable amendments to the terms and conditions of the Policy.

6. THEFT EXTENSION INDEMNITY CLAUSE

Underwriters agree to indemnify the Fund against any Theft of the Fund’s property which is first discovered during the Policy Period.

7. DEFINITIONS

"Theft" means the dishonest appropriation of the Fund’s property with the intention of depriving the Fund of such property for personal gain.

8. EXCLUSIONS

Underwriters shall not be liable for any claim or claims :

8.1 arising from any loss as a result of mysterious disappearance or unexplained shortage(s);

8.2 arising from loss of payment to the Fund of any instrument or property previously sold and delivered on credit;

8.3 arising out of or in connection with Theft;

a) which has been notified to the Underwriters on any other policy of insurance effected prior to the inception of the Policy; or

b) which was known to the Assured prior to the inception of the Policy;

8.4 arising from Theft where indemnity is available from another source or party;

8.5 for Theft committed by any person after the Assured shall learn of any dishonest or fraudulent act on the part of such person.

 

9. RECOVERIES

In the event of any Theft covered by this extension exceeding the Limit of Underwriters’ Liability, any recoveries, excluding the actual costs of effecting the recovery, shall accrue:

9.1 first to the benefit of the Fund to reduce or eliminate the amount of the Fund’s loss which exceeds the Limit of Underwriters’ Liability;

9.2 thereafter to the benefit of Underwriters to the extent of the claim paid or payable;

9.3 finally to the Fund to the extent of the Excess stated in the Schedule.

 

10. CLAIMS PROVISIONS

10.1 Notice in writing must be given to Underwriters by the Assured or the Fund as soon as possible and no later than thirty days after discovery of any act of Theft or any reasonable cause for suspicion thereof or of any circumstances whatsoever which may give rise to a claim under this extension.

10.2 The Assured and or the Fund must take all steps to prevent further Theft.

10.3 Within six months thereafter, the Assured and or the Fund, at their own expense (except as otherwise provided by the Policy) must supply to Underwriters full details in writing of the claim and all such proof of correctness of such claim as Underwriters may require.

 

11. CONDITIONS