Professional Indeminity Policy for Insurance Brokers and Insurance Agenets
The Assured having agreed to pay the premium and the Ethiopian Insurance Corporation (hereinafter called the Corporation) having agreed to grant the indemnity, both parties agree that the basis of this contract is the signed proposal form stated in the schedule together with all associated written information supplied to the Corporation and, where necessary to obtain continuation of the policy, any subsequent proposal, declaration or written information supplied.
The schedule forms an integral part of the policy and this policy is subject to Ethiopian Law and jurisdiction.
The Corporation shall indemnify the Assured in respect of:-
Claims first made against the Assured during The period of Insurance for any negligent act, error, omission, libel, slander or defamation committed by or on behalf of the Assured or any firm with which the Assured is acting jointly.
B. Claims first made against the Assured during the Period of Insurance.
Losses sustained by the Assured which they first discover during the Period of Insurance in consequence of any dishonest or fraudulent act or omission of any former or present employee of the Assured other than any former or present director of the Assured.
(i) Legal liability incurred by the Assured –
Costs and expenses incurred by the Assured in replacing or restoring the Documents- by reason of the Documents first having been discovered by the Assured during the Period of Insurance to be damaged, destroyed, lost or mislaid and which after diligent search cannot be found.
Costs and expenses incurred with the Corporation%u2019s written consent in the defense or settlement of any claim which falls to be dealt with under the policy.
The Corporation%u2019s liability shall not exceed the Sum Insured.
The Excess shall be borne by the Assured at their own risk. The Corporation%u2019s liability shall be in excess of this amount.
4. All claims resulting from:-
one and the same act, error or omission, or a series of acts, errors or omissions arising out of the same cause, or the acts, errors or omissions or one person or persons acting together or in which such person or persons is/or concerned or implicated.
Shall be deemed to be one claim or loss for the purpose of determining the Excess.
The Corporation shall not indemnify the Assured against any claim or loss arising from:-
The Assured%u2019s activities as a manager of any insurance company.
The insolvency of any insurance company.
The failure to account for money, except as provided for in Insuring Clause 1.B.
Any circumstances which may give rise to a claim and of which the Assured is aware prior to the inception of this policy.
Loss or distortion of computer tapes, discs or other magnetic/electronic media, or erasure of information recorded thereupon due to the presence of magnetic flux, or defects in such computer tapes, discs or other magnetic or electronic media, or atmospheric conditions or extremes of temperature, or use or processing whilst mounted in or on any machine unless as a result or loss or damage to or malfunction of the machine. This exclusion only applies to insuring Clause 1.C. (ii).
Or directly or indirectly caused by, or contributed to by, ionizing radiation%u2019s or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel; or from the radioactive, toxic explosive or other hazardous properties of any explosive nuclear assembly or nuclear component thereof;
Or directly or indirectly occasioned by or happening through war, invasion, acts of foreign enemies, hostilities (where war be declared or not), civil war rebellion, revolution, insurrection military or usurped power. This exclusion only applies to Insuring Clause 1.C.
Dishonest or fraudulent acts or omissions committed by any person after the discovery in relation to that person of reasonable cause for suspicion of fraud or dishonesty.
Any claim made against The Assured by any insurer arising out of the judgment given by a Court of Competent Jurisdiction within Ethiopia against The Assured in respect of such claim.
A circumstance of which the Assured are entitled to indemnity under any other insurance except in respect of any excess beyond the amount which would have been payable under such insurance had this policy not been effected.
or outside the Geographical limit stated in the Schedule.
Judgments delivered or obtained in the first instance otherwise than by a Court of competent Jurisdiction within Ethiopia.
Precedent to their right to indemnity, the Assured shall give to the Corporation immediate written notice of:-
any claim made against the Assured
any loss discovered by the Assured.
any circumstance of which the Assured shall become aware which may give rise to a claim.
the discovery by the Assured of reasonable cause for suspicion of dishonesty or fraud on the part of any former or present employee of the Assured whether or not giving rise to a claim under this policy.
A claim arising from a circumstance notified during the period of Insurance is deemed to be a claim first made against the Assured or a loss first discovered by the Assured during the Period of Insurance.
Upon request the Assured shall give to the Corporation such information as the Corporation may reasonably require.
The Assured shall not admit liability for or settle any claim or incur any costs or expenses in connection therewith without the written consent of the Corporation, who shall be entitled at any time to take over and conduct in the name of the Assured the defense or settlement of any claim.
The Corporation shall not settle any claim without consent of the Assured. If, however, the Assured should refuse to consent to any settlement recommended by the Corporation and shall elect to contest or continue any legal proceeding in connection with such claim (to be mutually agreed upon by the Assured and the Corporation) that such proceeding should be contested or continued, then the Corporation%u2019s liability for the claim shall not exceed the amount for which the claim could have been so settled and then only up to the sum Insured.
If any payment is made under this policy in respect of a claim, the Corporation shall be subrogated to all the Assured%u2019s rights of recovery in relation thereto.
The Corporation shall not however exercise any such rights against any employee of The Assured unless the claim has been brought about or contributed to by the dishonest or fraudulent act or omission of the employee.
In the event of a claim under Insuring clause 1.B. the Assured shall take all possible action to sue for and obtain reimbursement from any employee concerned in such loss, or from their estate or legal representatives. The assured shall (except as provided by law to the contrary) withhold any money which but for such fraud or dishonesty would be due to such person from the Assured or any money of such person held by the Assured for the benefit of the Corporation, but only to the extent of the loss which they have suffered or will suffer as a result of the fraud and dishonesty of such person.
The Corporation may cancel this policy by sending thirty day%u2019s notice by registered letter to the Insured at his last known address and in such event will return to the Insured the premium less the pro-rata portion thereof for the period the policy has been in force or the Policy may be canceled at any time by the Insured on notice and (provided no claim has arisen during the then current period of insurance) the Insured shall be entitled to a return of the premium less premium at the Corporation’ Short period Rates for the time the Policy has been in force.
Any word or expression to which a specific meaning has been attached in any part of this policy or of the Schedule shall bear such specific meaning wherever it may appear.
(a) The Assured :
1. Natural and Juridical person or Persons or partnership of the Firm.
2. The Firm%u2019s predecessors in business, but this shall not apply to limited liability companies –
3. Any director or former or present partner of the above in such capacity –
acting as insurance broker, insurance consultant, insurance agent, trustee of the Assureds own pension or superannuating fund, and other Activities ( if any) specified in the Schedule.
4. The estate or personal representatives or trustee or assignee in bankruptcy of any person noted above.
(b) The Documents: any documents, other than bearer bonds, coupons, bank notes, currency notes and negotiable instruments, either the property of or entrusted to The Assured or in the custody of any person to or with whom such documents have been entrusted, lodged or deposited.
This brochure is prepared to elaborate about “Professional Indemnity Policy for Insurance Brokers And Insurance Agents”. Provided by the Corporation. Therefore, legally it shall not come to force.