Scope of Cover:

Forgery or fabrication of securities, transfers or transfer receipts which may affect the registration or transfer of securities.

Discovery that the securities which have been dealt with by the insured in good faith are forged.

Discovery that the insured has been deceived as to the identity of any person for the purpose of securities.

Physical loss of securities due to Fire ‘C’ policy perils and burglary, housebreaking including theft, hold-up and dacoity whilst in the premises or transit only to the extent of the cost incurred in duplicating such securities.

Important Exclusions

Key clause as per Cash insurance policy

Fraud or dishonesty of the Directors (salaried or otherwise).

Events occurring prior to the retroactive date

Consequential losses of any kind

Processing errors, including computer errors.

Y2K

Special Conditions

Indemnity will be calculated by estimating market value of securities including corporate benefits like bonus shares, rights shares and dividend entitled therefrom, on the day previous to discovery of the circumstances giving rise to loss or liability.

Duplicating cost would include expenses necessarily and reasonably incurred for giving legal notices on account of physical loss of securities.

Reasonable care clause including adequate security systems and locking of securities in safe after office hours.

Loss minimisation measures by initiating such action to avoid misuse/fraudulent conversion.

Subrogation

Arbitration clause, as amended.

INSURANCE FOR REGISTRARS & SHARE TRANSFER AGENTS

PROPOSAL FORM

(PLEASE ENCLOSE DETAILS IN SEPARATE SHEETS IF SPACE IS INSUFFICIENT)

PROPOSER

NAME
ADDRESS
PHONE / FAX
SEBI REGISTRATION NO.

INFRASTRUCTURE

Various locations from where
Services are provided

No. of staff

Permanent/direct employees

Temporary casual, contracted
or outsourced (with details
how sourced)

Names and profile of Directors

P&L A/c and Balance Sheet of
the operations sought to be covered
for last two years (printed accounts
to be provided).

OPERATIONS

Enclose brief details of your RTA activities.

Clients of your RTA operations
providing client-wise break-up
of number of documents involved
and amount.

Number of transfers of shares/
bonds/debentures involved in
each year.

Number of refund orders/
Interest/redemption warrants in
each year.

Maximum value of securities
on premises at one time.

Maximum value of securities
in outward transit at any one time.

Risk Management features
including security systems installed

PREVIOUS LOSS HISTORY

Details of losses in the past (whether
Insured or not) of which you are
Should be aware.

PAST INSURANCE HISTORY

Have you ever proposed for this
Insurance before and if so, has
any insurer:

declined your proposal

refused to renew your policy

imposed restrictions or revised
the terms

cancelled your policy

N.B: If answer is yes to any
question please provide details)

a) Limit of indemnity sought by
you Rs.

self insured excess opted by
you Rs.

DECLARATION :

We hereby declare and agree that the information provided above is true and that we have not with-held or misrepresented the same.

We further declare and agree that this proposal and declaration shall be the basis of contract of insurance.

SIGNED

FOR & ON BEHALF OF

AUTHORISED SIGNATORY
NAME
DATE DESIGNATION

SPECIAL CONTINGENCY INSURANCE
INTERNATIONAL GAMES/SPORTING EVENETS
KEY HAZARD:

Cancellation and abandonment are key hazards faced by organizers and sponsors of sporting event.

WHO SUFFERS AND WHAT LOSSES ARE SUFFERED.

Investments made by the host.

Permanent and temporary disability cover for players, which may be the responsibility of respective clubs and expenses incurred by the club before cancellation of match.

Television broadcasting organizations invest to generate huge commercial income through advertisements.

Rates will depend upn risk assessment based on conditions in the host country e.g. we issued policy for India Pakistan Cricket match at 1% rate to organisers of match separately at Calcutta, Bombay and Delhi. Two Matches were played and one match was cancelled due to sudden strain in political relations.

We had to pay claims for actual expenses incurred to Mr. Pranab Roy of “World This Week” who had taken contract for television broadcasting, less deductible excess.

MOST IMPORTANT FACTORS ARE

Reason of cancellation should be beyond control of the insured i.e. political/economic safety and security provisions.

It will include even riotous or war like conditions but excluding nuclear war which could be the reason for match cancellation.

One match starts, liability under the policy ceases.
It does not cover material damage to property which can be covered under a separate item subject to (1) fire tariff terms & condition (2) Burglary and theft (non tariff).

Legal liability for death or personal injury of spectators due to any negligence or mismanagement of orgainsers can also be covered.

CANCELLATION DUE TO ACTS OF GOD:

This may require change of site or postponement for these risk provisions extra expenses as per details agreed and rates may be charged separately according to past history of storm/earthquake.

There may be some additional requirements : Loss of Cash from ticket counter, death or personal injury to employees or members and orgainsers of host club which have to be kept a separate item according to cash insurance/ fidelity guarantee personal accident etc.

Lloyds are easily taking reinsurance for huge amount even $750 million as per articles published.

COVER FOR LARGE PROFESSIONALS/ INDUSTRIAL HOUSES / IMPORTERS / EXPORTERS

A computer training organisation has training centres all over India and also in various countries outside India. Their main requirement in insurance of:

Computers, TVs, VCR, VCP, OHP, Data Processors, Video Cameras and other similar equipments must be insured against any loss or damage anywhere in the world on reinstatement value basis. They are maintaining locationwise asset records on H.O. computer and also on computer to each location.

Wherever necessary any equipment is transferred from one location to another or even to the trainer’s or trainees premises, at short notice. These are to be deemed covered in such transit and at changed premises including exhibitions / seminars / hotels / schools / or custody of students.

PERILS COVERED:
Loss due to any accidental external means, including self ignitions burglary house breaking theft.

Even during transit baggage carried as accompanied.

PROCEDURE TO BE FOLLOWED:

Itemwise lists with value & location are provided and 10% escalation clause is required.

5% addition for omission to insure is also provided to take care of addition.

All tariff rates are to be kept in view, it may not be treated as floating cover, because of locationwise records but rate should not be lower than tariff rate. It is suggested exhibition rate being very high separate provision for exhibitions may be kept on floater basis for a limit of sum insured otherwise exhibition rate for one year being very high total premium will become uneconomical.

Transit / Baggage is non-tariff.

Legal liability for accidental injuries to trainees can be covered with limit per person and overall during the year.

EMPLOYEES (NOT TO BE INCLUDED)

Medical treatment for employees or W.C. liability should be separately covered.

Professional liability and product liability for providing softwares should be separate covers.

INDUSTRIAL HOUSES:

Industrial comprehensive covers have already been drafted and probably circulated.

Some industrial houses may need special contingency policy to protect them against the following risks:

Loss of advertiserment expenses or other similar marketing expenses incurred for a particular product which was dependent on another country’s technical knowhow or material help which could not be accomplished due to accidental/political / economic legal changes such losses need special contingency cover.

Export orders stand cancelled due to similar reasons and RO legald recovery possible due to natural problems, financial loss occurs inspite of best efforts to dispose of the ready for export goods at best prices.

Covers for such losses may be required very soon.

Professional e.g. doctors, engineers, scientific advisors may require (in addition to professional indemnity, covers or product liability covers loss of money spent in preparations for particular contract which are cancelled due to international political / economic problems.

BAILEES LIABILITY:

Special contingency cover to protect liability under sections 15 to 170 of Indian Contract Act, which does not include contractual liability.

A bailee is responsible for negligence including those of employee and for dishonesty. Lack of due care is a vast area. For this reason, fire policies can be extended to cover goods held in trust or policies issued in joint names of bailors and baliees take care of major risks, if a bailee is definite about due care why should he take responsibility for act of God, but lack of due care even in case of normal flooded areas or earthquake zones may crearte problems. Our suggestion should be for joint cover and rates should be charged as per tariff.

But there are areas e.g.:

Bailee has taken his marine all risk cover including strike, riot policy under which bailee is liable.

Insurers have a legal right to recover under the Indian Contract Act.

Even values may be known to him of goods entrusted, since public liability cover is for indemnity to third parties, and not bailor and bailees.

Only solution is special contingency policy for:
Agreed limit any one loss;
Limit during the year but only legal liability;

As the bailee for warehousing losses including contractual liability should be covered separately. Professional indemnity cover should be granted for liability due to professional failure.

Limit during the year but only legal liability as a bailee for warehousing losses including contractual liability should be covered. Separate professional indemnity cover should be granted for liability due to professional failures. It is suggested that both covers should be simultaneously concurrent. Such covers should be granted only after studying. Due care systems of insured and proper periodical checking systems.

It is suggested that both cover should be simultaneously concurrent. Such cover should be granted only after studying “due care system of insured” and proper periodical checking system.

We need not mention names of perils in such cases but exclusion clauses of war / nuclear weapons, intentional lack of due care of save expenses, and infidelity of employees (for which separate F.G. cover should be granted as it will take care of their own losses as well).

This is only a thinking keeping in view tariff angles, collection of full details for assessing risk elements based on past events and estimating future likely goods of risk operation. All round knowledge of fire/engg. tariffs, laws and circumstances prevalent is essential for this policy.

NOTE:

Contingency has a very wide meaning therefore, special contingency means we must specify the contingencies that we are covering and keep in mind that special contingency policy is not meant to cover perils which can be covered under tariff policies.

Legal liability due to intentional cross negligence must be excluded.

Parameters of subject matter covered must be well defined e.g. a bailee may be held liable not only for property damage but also for interest, consequential losses mental torture to bailor. We may provide cover under separate items for bailed property, interest, penalties but should excludde intentional and dishonest act of the bailee.

This policy must be devised after in depth consideration of various legal issues.

Insured must share every loss say to the extent of 10% subject to a minimum of Rs. 10,000/-

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