Small Print Explained

Warranties
All warranties when contained in a policy must be complied with e.g. unoccupied premises warranties. Failure to adhere to them can invalidate your cover. From time to time, we draw your attention to these wordings, but you are advised to read the policies carefully and ensure all warranties are being fulfilled. If for any reason you cannot comply with any warranty Charter Insurance Brokers should be notified immediately so that the matter can be raised with your Insurers.

Click here to see information regarding Risk Prevention / Surveys.

Exclusions
There are always a certain number of exclusions in any insurance policy and it is not practicable to list them all in this register. Again, if you need clarification on any point, after reference to your policy, please let us know.

Risk Improvements
Either at renewal or during the course of the policy period, Insurers may carry out a risk survey. The resultant Risk Improvement Requirements are conditions precedent to liability i.e. if they are not complied with then any subsequent losses, which could have been prevented or mitigated had the Risk Improvement been carried out, may not be covered. Normally Insurers will allow a specific time scale for the completion of these Risk Improvements.

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Indemnity
Where insurance polices are “Contracts of Indemnity”, the intention is to put the insured as the claimant in the same financial position after the loss as you were immediately prior to the loss. i.e. had no loss occurred.

Reinstatement
The current practice, when insuring material goods is to insure them on a “reinstatement basis” (new for old). Insurers undertake to settle the claim on the basis of the cost of replacing the lost or damaged property by similar property, equal to but not better or more extensive than when it was new. Subject to the limitation of the Sum Insured.

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Sums Insured / Average
Many policies include the condition of “Average” by which Insurers seek to counteract under-insurance. The condition makes you responsible for the percentage of the loss proportionate to the degree of under-insurance. e.g.

For insurance on an Indemnity basis, if, in the event of a claim, under-insurance is found to exist, settlement is based on that proportion of the loss that the Sum Insured bears to the actual value of the property at the time of the loss, taking into account depreciation, wear and tear.

Where insurance is on a Reinstatement basis, average applies where the Sum Insured at the time of the loss is less than 85% of the cost of reinstating the whole of the property at the time of reinstatement. This 85% ruling is an attempt by Insurers to alleviate the effect of inflation.

Where Insurance is on a Day One basis, settlement is based on that proportion of the loss that the “declared value” at most recent renewal date bears to the cost of reinstating the whole of the property at the time of reinstatement.

Thus, to avoid being penalised it is essential that Sums Insured are maintained at an adequate level.

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Excess / Deductible and Franchise

• Excess
  the policy wording excludes the first monetary amount of each and every loss.

• Deductible
  the policy wording imposes a deduction of a monetary amount from each claim formulated in terms of the policy conditions.

• Franchise
  the policy wording excludes any payment up to a monetary amount but if the loss is more than this figure then the loss is paid in full.

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Reasonable Care
Insurers require that all things reasonably practicable are done to avoid or diminish any loss/es under the policies. There are policy conditions relating to “reasonable care” in all insurance policies. These would include, for example, the exercising of reasonable care in:-

• selecting competent employees.
• preventing accident, injury, loss or damage.
• maintaining all buildings, plant, equipment, vehicles, fire and security protections in good and efficient condition.
• complying with all relevant statutory requirements.

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Statutory Insurance Cover
Employers’ Liability
You are required, by law to purchase Employers’ Liability Insurance. A copy of your current Certificate of Employers’ Liability Insurance (see Appendix 4 for copy) must by law be displayed at each of your premises where employees are located, within 30 days of the renewal date of the policy, as evidence of cover.

The Employers’ Liability (Compulsory Insurance) Regulations which came into force on 1 January 1999 the main provisions are as follows:-

• Employers will have to retain Certificates of Insurance for a period of 40 years commencing with the certificate relating to the period immediately before 1 January 1999 . In your case this will be the certificate relating to the 1 January 1998 to 31 December 1998 period.

• HSE Inspectors are empowered to require employers to produce Certificates of Insurance (for past and current years) and the current policy of insurance.

• Maintains the existing provision regarding the application of the minimum level of cover to group companies, but without extending it to other connected organisations which are not subsidiaries, e.g. Associated Companies for which there is no legal definition.

• Changes to the format of the Certificate of Insurance that employers have to display, so that it will be easier to understand, indicate which subsidiaries are covered and indicate the total level of cover purchased (applicable to certificates issued after 1 April 1999).

Engineering Inspections
It should be appreciated that responsibility for ensuring that statutory inspections of plant (e.g. pressure vessels, lifting equipment) are performed promptly and cannot be delegated, even though you may employ an Inspecting Insurer for this service. You should, therefore, be certain that any such examinations are made within prescribed periods and that any faults discovered are rectified within the appropriate time. If you need any assistance in ensuring compliance please consult us.

Motor
For non-claim matters, e.g. Certificates, Green Cards or Bail Bonds for foreign travel, reference should be made to your Motor Account Handler.

Please note it is a condition of renewal that you must advise Insurers at renewal of every alteration to the Fleet Risk and of any convictions or pending prosecutions (other than parking and minor speeding, although we should be informed of a serious offence or accumulation of points resulting in a ban), any physical/mental defect/abnormal medical condition etc. or driving by any young or inexperienced drivers of which Insurers are unaware.

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