Fire & Perils
The fire policy provides cover for loss of or damage to property including buildings, plant & machinery, furniture, fixtures & fittings, office equipment, contents, stock in trade and goods held in trust and/or on commission for which the insured is responsible resulting from fire, loss caused by lightning and explosion. Fire is the actual ignition of something that should not be on fire, the cause being accidental or fortuitous whereas explosion cover is limited to explosion of boilers or gases used for domestic purposes. The use, will determine if the boiler or gas is domestic.
The policy extensions include cover against earthquake, shock, volcanic eruption, bush fire, riot and strike, storm, tempest, floods, bursting or overflowing of water tanks apparatus and/or pipes, aircraft or other aerial devices, impact by road vehicles/horses/ cattle, malicious damage, special perils and spontaneous combustion.
Some of the extensive clauses that can also be incorporated under the fire policy include architects quantity surveyors and other fees clause, consulting engineers fees clause, municipal plan clause, internal removal alterations and repairs clause, cost of demolition, cost of clearing and erection clause, reinstatement of loss, capital additions clause, rent receivable/payable, temporary removal, public authorities and public utilities costs.
Consequential loss
The basic Fire Consequential Loss Policy provides indemnity against loss of income caused by fire, lighting and explosion. Assets covered are such as buildings, plant & machinery, stock, furniture, fixtures & fittings and office equipment. The policy protects the earning capacity of that capital by making good loss of your net profit and or lost rent thus enabling you to meet overheads such as wages and increased cost of working following sudden and unforeseen damage including breakdown to plant or machinery. The policy may be extended to cover riots, strikes, civil commotion and earthquake.
The loss of profits policy generally takes over from where the fire policy leaves off. If a fire loss occurs it may well be a long while before the insured is fully back into operation. During such a period, the insured’s earning power is diminished or drops. On the other hand, certain expenses would continue to be incurred whilst the premises are being rebuilt. Such costs would include rents, rates, wages of skilled staff or salaries of permanents staff and many other expenses. These standing charges together with estimated net profit of the undertaking comprise the sum insured on gross profit, a reduction of which as a result of an insured’s perils, constitutes a claim under the consequential loss policy. This cover is provided for a specified period known as the indemnity period which is the period beginning with the occurrence of the damage and ending not later than the maximum period that would take to remedy the situation. Cover is suitable for hotels, manufacturing concerns, schools and for other profit making bodies.
The perils, conditions and warranties in Fire material damage policy must be the same as those in the Fire business interruption policy. Further, for a claim under business interruption to be admissible, the fire material damage claim has first to be admissible. In addition, as this policy is consequent upon the happening of a fire, the policy exclusions are similar to those under the fire policy.
Burglary
Burglary Insurance provides compensation following loss or damage to property by theft following entry to exit from the premises by forcible or violent means by thieves at the business premises. The cover provides for loss of furniture, fixtures and fittings, stocks in trade, office equipment, goods held in trust, general contents, machinery and plant.
All Risks
All risks insurance provides indemnity against accidental loss, damage or destruction from any cause, including fire, which is not specifically excluded whilst at any location and in any situation within the territorial scope specified in the policy schedule. It is suitable for mobile items like cameras, mobile phones, laptops, personal computers, videos, calculators, fax and telex machines, photocopiers and other fragile electronic items. It is a requirement for this cover that each item is specifically identified and is allocated a separate sum insured. For items that can be identified by make, model and serial numbers, these must be given as they are important when claims occur. Due to the mobile nature of most items, cover will not be restricted to the premises. Policy will usually have the territorial scope as Kenya or Worldwide
The policy will not cover loss or damage directly or indirectly occasioned or contributed by or in connection with earthquake, volcanic eruption, wear and tear or depreciation, deterioration occasioned by atmospheric conditions, hostilities or war like operations, electrical or mechanical breakdown, faulty manipulation, loss outside the geographical area, ionizing radiations or contamination by radioactivity from nuclear waste and any consequential loss.
Electronic equipment cover
This policy provides indemnity to electronic equipment against sudden and unforeseen physical loss or damage to the equipment other than by specifically excluded perils in a manner necessitating repair or replacement.
This policy covers material damage for many types of low and medium electrical equipment like electrical data processing equipment including computers of all types, external data media, electrical and radiation equipment for medical use and communication facilities. Other miscellaneous equipment include television equipment used for industrial purposes, film and television equipment, analyzing facilities, electronic microscopes, time keeping devices, paging and signaling systems. Cover may be extended to cover loss of information and additional expenses for computer operation which arise if the insured’s computer breaks down and arrangement of hired computing facilities become necessary.
The policy will operate when the insured items are at work or at rest, or being dismantled for the purpose of cleaning, overhauling or being shifted within the premises, or in the course of functioning. Usually a premises cover, but can be extended to cover temporary transits away from the premises.
Computer
This policy covers accidental damage including mechanical and electrical breakdown of computers, installation and peripheral equipment. The sum insured should represent the new replacement value of the computer installation, including the cost of freight, installation and custom dues
Money/Cash In Transit
The money insurance policy indemnifies the insured against loss of money arising whilst in transit, in the insured premises, in locked safe, with authorized personnel, including damage to safes or strong room caused by theft or any attempt or threat.
The money in transit cover applies to money in transit to and from the bank whereas cover for money in business premises relates to money in premises during business hours, money in premises outside business hours money in locked safe or strong room on the premises outside business hours. The policy can be extended to cover money in the custody of directors or senior manager as per the insured’s specifications. Cover provided is however, subject to condition, Exclusions and Clauses/Endorsements attached thereon.
Fidelity Guarantee
The fidelity guarantee policy indemnifies the insured against loss of money as a result of dishonesty by their employees.
The insurance company Ltd will make good the loss therein by indemnifying the insured the amount of such loss but not exceeding in the case of each of the employee, the amount set against his or her name/designation in the schedule. Such acts of fraud or dishonesty must be committed during the period of Insurance, during the employee’s uninterrupted service in employment and must be discovered and notified to the company not later than the stipulated discovery period. Due observance and fulfilment of the terms, provisions, conditions and endorsements of the policy should be complied with by the insured and the truth of the statements and answers in the proposal forms shall be conditions precedent to any liability for the Company to make good the loss suffered therein.
Plate Glass
The cover provides compensation for fixed glass broken at the insured’s premises as a result of insured perils. There are options either to replace the broken glass according to description or to pay the sum equivalent to the value of the glass at the time of loss. Cover can be arranged for cabinet glass, display signs, fixed glass, glass doors and glass partitions on premises. The glass covered is specified in the schedule of the policy as per the proposer’s requirement. The number of panes covered, position and the measurements are required for easy identification of damaged glass at the time of loss.
Some of the businesses that require this kind of cover are such as shops, schools, offices, churches, hospitals, industrial premises, hotels, restaurants, motor garages and workshops.
Goods In Transit
This policy provides cover for loss or damage to various types of goods while in transit by road, rail or any inland waterway within the geographical area set out in the policy. Cover may be fire, theft or accidental means or for specified perils and may be taken for specific consignments or annually
Suitable limits are applied in respect of any one vehicle, trailer, rail or event according to the circumstances but arrangements can be made to cover vehicles in excess of these limits subject to prior notice. All policies bear the Average Clause. Cover is however, subject to the terms and conditions of the policy.
Public Liability
Indemnify a firm or individual against claims which shall become legally liable to pay arising from accidental bodily injury to any person other than person in the service of the insured or accidental loss or damage to third party property other than property held in trust including legal costs happening in connection with execution of business activities and occurring within the territorial scope. The insured chooses a limit of cover, which in their opinion is adequate to protect themselves against any lawsuits. In determining this limit, consideration will be made by the insured of the nature of their operations/business, type and profile of their usual guests/customers and the degree of hazard/exposure posed by their premises/operations to third parties.
Compensation for injury or damage is not automatic and the plaintiff must bring his claim under common law, tort, statute, negligence, nuisance or breach of contract. An example of someone who would need this cover is a contractor who may be transporting heavy construction materials up a lift, or a crane. Such a cover would protect him should the equipment snap and cause a passerby to be injured. This includes situations where visitor’s cars and personal property is damaged by falling objects or where visitors are injured by falling debris or by slippery floor or where a factory emits gas/liquid causing injury to third parties. This policy crucial as there has been an increased awareness by citizens of their rights to compensation in cases of negligence and the duty of care owed to others. This awareness has led to increased claims.
WIBA
The Workmen’s Compensation Act 2007 (Chapter 236, Laws of Kenya) requires employers to compensate injured employees while in the course of official duties. In Kenya, the Act stipulates that insurance cover must be in place for all employees earning below (up to) Kshs 400,000 per annum (Kshs 33,333 per month), and is therefore a legal requirement. The WIBA policy provides cover for the employer’s legal liability to employees under Workmen’s Compensation Act for death, bodily injury or illness arising out of and in the course of employment.
It does not matter whether the employee was negligent or not, provided the injuries were not self-inflicted. The policy is subject to jurisdiction clause and other terms, exceptions and conditions of the policy.
Employer Liability
Provides compensation to any employee for bodily injury by accident or disease caused or occurring during the currency of the insurance and arising out of and in the course of employment by the insured in the business and directly related to negligence or breach of Common Law or Statutory duty by the employer.
This policy offers protection to employers for their legal liability (under Common Law), for damages and claimant’s costs and expenses of lawsuits filed by an employee. The employee has to prove negligence/failure to provide a safe working environment. The Liability would arise if an employee in the insured’s immediate service dies or is injured out of or in the course of their work, through any perceived negligence on the employer’s part. The insurance company indemnifies the insured against legal liability under common law for damages and claimants’ costs and expenses of litigation in respect of judgments which are in the first instance delivered by or obtained from a court of competent jurisdiction within the Republic of Kenya. The limit of compensation to a claimant or claimants will be subject to the limit of liability under the policy.
Comments are closed.