WHEREAS the insured described in the Schedule hereto (hereinafter called the insured”) by a proposal and declaration which shall be the basis of this Contract and is deemed to be incorporated herein has applied to The ______________ltd., Co. (hereinafter called the “Company”) for the insurance hereinafter contained and has paid the premium stated in the said Schedule as consideration for such insurance during the period stated in the said Schedule or during any further period for which the Company may accept payment for the renewal or extension of this Policy.
THE Company hereby agrees subject to the terms, conditions and exclusions herein contained, endorsed or otherwise expressed hereon, to indemnify the Insured against loss due to payment/default by their travel agents on account of mismanagement of funds, insolvency or bankruptcy of the agent, default protracted by the Agent on payment obligations, more particularly described in the Schedule, provided always that the limit of the Company’s liability for nay one loss shall in no case exceed the amount specified against the respective section in the said Schedule.
SCOPE
1. Default by Agent
a. A Petition has been presented to the Court for the compulsory winding up of the Agent, which has not been withdrawn within 28 days; or
b. The Agent convenes a meeting of its Creditors informally or otherwise for the purpose of considering an arrangement with such Creditors; or
c. A receiver is appointed over any of the property or asset of the Agent or
d. The Agent stops payment of its debts or is unable to pay its debts or is unable to carry on its business as a result of being unable to pay its debts as they fall due: or
e. The Agent has failed to pay any part of the net ascertained financial loss on due date and any supplementary claims as covered under para 3 below.
f. Any event of defaults as defined in the Agency Agreement between the Agent and Indian Airlines.
2. Net Ascertained Financial Loss
Loss of monies in respect of all accountable transaction due or overdue by the Agent at the time the Agent was declared in default in accordance with INDIAN AIRLINES LIMITED’S
3. Nature of Cover/ Policy
The insurance Policy would provide indemnity to Insured against the financial loss arising out of dishonesty/misappropriation/fraud/discrepancy/misutilisaiton of tickets/default of their domestic agent/agents by not remitting the ticket money in respect of sale of domestic air tickets sold by him/them.
CONDITIONS
DECLARATION CLAUSE :
It is hereby declared and agreed that Insured would keep the Insurance Company informed of any additions /deletions of Agents to the list already submitted within 15 days of such changes made.
2. QUARTERLY RETURNS
The Insured would also provide to Company break up of remittance details during a quarter in respect of all Travel Agents. This information is to be provided within 30 days of end of each quarter.
3. THE Insured will continue to follow the existing delinquency and default procedures.
4. MAINTENANCE OF RECORDS CLAUSE.
The Agent shall maintain adequate records in connection with the subject matter insured as required by Agency Agreements and such records will be made available to the Insurer upon reasonable notice to the Agent.
5. RIGHTS OF RECOVERY
The Company shall be entitled in the name of the Insured to have the absolute conduct and control of all or any proceedings that it considers necessary for the purpose of tracing and recovering money lost or securing reimbursement in respect of the money lost; and the Insured shall at the Company’s expense furnish all such assistance as may reasonably be required by the Company in connection with such proceedings and in the event of any or all of the money being recovered from any third party by Insured ., it shall be imperative upon the Insured to refund to the Company.
EXCLUSIONS
The Company shall not be liable in respect of loss or damage to :
Shortage due to error or omission where payment is received from TA in normal course.
Actual or threatened war, invasion, acts of foreign enemies, hostilities (whether war be declared or not) civil war, rebellion, revolution insurrection, military or usurped power, confiscation, nationalization, requisition or destruction of or damage to property by or under the order of any Government or public or local authority;
Destruction or damage to any coupons/ tickets whatsoever or any loss or expense whatsoever, resulting or arising therefrom or any consequential loss, and any legal liability of whatsoever nature, directly or indirectly caused by or contributed to by, or arising from ionizing radiation or contamination by radioactivity from any source whatsoever.
Any loss, destruction, damage or legal liability, directly or indirectly caused by or contributed to by or arising from Nuclear Weapons material.
Civil commotion assuming the proportion of or amounting to a popular rising, riot, strikes, lockouts, martial law or any other similar acts;
Any loss which at the time of the happening of such loss is insured or guaranteed by or would but for the existence of the Policy be insured or guaranteed by any other existing policy. Policies or bond, except in respect of any excess beyond the amount which would have been payable under such other Policy, policies or bond hand this insurance not been effected.
Any loss sustained by the INDIAN AIRLINES LIMITED prior to the inception of the policy, even if detected later.
Consequential loss including penal interest, loss of sale/market or legal liability of any kind.
Loss or damage due to or contributed to by the Insured having caused or suffered anything to be done whereby the risks hereby insured against were unnecessarily increased.
CLAIMS
1. In the event of any happening likely to give rise to a claim being notified to or otherwise coming to the knowledge of Indian Airlines Ltd., Indian Airlines Ltd., shall
Give immediate written notification to the Insurer, but in no event later than 30 days from the date of detection of such event advising them that the Agent has failed to pay the Insured the amount due to them under the terms of the Passenger Sales Agency Agreement;
Make no admission of liability without the prior written consent of the Insurer;
2. Any fraud, misrepresentation, misdescription or non – disclosure in any material particular by INDIAN AIRLINES LIMITED or any of its personnel in relation to any matter affecting this insurance shall render this Policy null and void and all claims hereunder shall be forfeited.
3. The Insurer shall be entitled to take over and conduct in the name of the Agent or the Insured but at the Insurer’s own expense, the defence of any claim or to prosecute for its own benefit, any claim for indemnity or damages provided that any such action is in accordance with the terms agreed by Insured and the Agent.
4. The Insurer shall have full rights under this Policy to make recoveries from any non – paying Agent/third party.
5. The Insurer shall be liable for the claim that has arisen due to initial detection of loss and also subsequent detection, for which supplementary claim may be lodged by the insured.
EXTENDED CLAIMS REPORTING CLAUSE :
In the event of non – renewal or cancellation of this Policy, either by the Company or by the Insured, the Company will allow a time limit not exceeding 180 days from the date of expiry or cancellation of the policy provided no insurance is in force during this extended reporting period of the same interest, for notification of claims for loss/default which had taken place during the period of insurance but could not be made during the policy period, provided, however, all claims made during the extended reporting period shall be handled as if they were made on the last day of the expiring policy period and are subject to the limits of indemnity and the terms, conditions and exceptions of the policy.
ARBITRATION AND DISCLAIMER
In the event of any dispute or difference arising between the parties as to the terms or applicability of this policy, such different or dispute shall be referred to the decision of a Sole Arbitrator to be appointed in writing by the parties or if they cannot agree upon a single Arbitrator within 30 days of any party invoking arbitration, the same shall be referred to a panel of three Arbitrator, comprising of two Arbitrators, one to be appointed by each of the parties to the disputes /difference and the third Arbitrator to be appointed by such two Arbitrators and arbitration shall be conducted under and in accordance with the provisions of the Arbitration and Conciliation Act, 1996.
OBSERVANCE OF TERMS AND CONDITIONS
The due observance and fulfillment of the terms, conditions and endorsements of this Policy in so far as they relate to anything to be done or complied with by the Insured shall be a condition precedent to any liability of the Company to make any payment under this Policy.
GENERAL
NOTICE : Every notice and communication to the Company required by this policy shall be in writing to the office of the company through which this Insurance is affected.
DUTY OF DISCLOSURE: This policy shall be void and all premium paid hereon shall be forfeited to the Company in the event of misrepresentation, misdescription or non – disclosure of any material fact.
JURISDICTION
This Policy shall be governed by the Laws of India whose Courts shall have jurisdiction in any dispute arising hereunder.
CONFIDENTIALITY
The details provided as between Insured and Company shall be kept confidential at all times.