Fidelity Guarantee Insurance Policy Wordings Please read this insurance Policy carefully to ensure that you understand the terms and conditions and that this Policy meets your requirements. If there are any changes that may affect the insurance cover provided, please notify us immediately. Liberty Insurance Pte Ltd (Registration No. 199002791D) GST Registration No. M2-0093571-3 51 Club Street #03-00 Liberty House Singapore 069428 Tel: 1800-LIBERTY (542 3789) Fax: (+65) 6223 6434 Page 1 of 6
Contents 3 Introduction 3 Law & Jurisdiction 3 Exclusions 4 Conditions 6 Premium Payment Warranty 2 of 6 Fidelity Guarantee Insurance
Introduction Law & Jurisdiction WHEREAS the Insured carrying on the business described in the Schedule and no other for the purpose of this insurance by a Proposal and Declaration which the Insured has agreed shall be the basis of this contract and held as incorporated herein has applied to Liberty Insurance Pte Ltd (hereinafter called the Company ) for the insurance hereinafter contained. NOW THIS POLICY WITNESSETH that in consideration of the payment of the premium the Company agrees to indemnify the Insured subject to the terms exceptions and conditions contained herein or endorsed hereon or annexed hereto which are to be taken as part of this Policy if during the Period of Insurance or any subsequent period for which the Insured shall have paid and the Company shall have agreed to accept the renewal premium the Insured shall suffer direct pecuniary loss arising from any act of fraud or dishonesty committed by any Employee listed in the Schedule 1. during the Period of Insurance 2. during the uninterrupted continuance of the employment of the Employee This Policy shall be governed by and construed in accordance with the laws of the Republic of Singapore and any dispute arising out of or relating to this Policy shall be determined exclusively by the courts of Singapore. Exclusions The Company shall not be liable: 1. For the excess stated in the Schedule in respect of each claim arising out of any act or acts of fraud or dishonesty by any one Employee 2. For any act of fraud or dishonesty committed by any Employee unless such act or dishonesty is discovered a) during the Period of Insurance or b) within the three months period immediately after expiry or termination of the policy or 3. in connection with the occupation and duties of the Employee Provided that the liability of the Company shall not exceed in respect of each Employee the Amount of Guarantee set opposite thereto or in all the Sum Insured. c) within three months after the termination of the Employee s employment from whatever cause Whichever event shall first happen. 3. If the nature of the Business of the Insured be changed 4. If the Occupation or Duties of the Employee be changed or the remuneration of the Employee reduced 5. If the precautions and checks for securing accuracy of accounts are not duly observed Fidelity Guarantee Insurance 3 of 6
6. For more than one claim in respect of any act or acts of fraud or dishonesty by any one Employee a) after inclusion of that Employee in the Schedule b) within the period of 12 months prior to the date of discovery by the Insured of any act of fraud or dishonesty by that Employee 7. For any stock/inventory losses discovered during stock taking or routine stock checks unless it can be clearly established that an act of fraud or dishonesty has been committed by an Employee or Employees of the Insured and that all other obligations imposed upon the Insured hereunder are fulfilled 8. For any loss resulting directly or indirectly from any fraudulent preparation, introduction, access, modification, manipulation or deletion of electronic data or computer programs committed by any Employee insured under this Policy who intend to cause the Insured to sustain a loss or to obtain financial gain for himself or any other person 9. For any losses caused by a person who is known to have committed dishonest and fraudulent acts 10. For any losses resulting from bodily injury 11. For any indirect losses, e.g. loss of interest, losses due to business interruption 12. For any losses resulting from negligence, unauthorized trading, espionage, blackmailing, extortion, libel and similar risk 4 of 6 Fidelity Guarantee Insurance Conditions 1. It is a condition precedent to any liability on the part of the Company under this policy that: a) the terms provisions conditions and endorsements hereof so far as they relate to anything to be done or complied with by the Insured are duly and faithfully observed and b) the statements made and the answers given in the proposal hereinbefore referred to are true and complete 2. The conditions of employment and the precautions and checks taken by the lnsured to prevent dishonesty on the part of the employees shall remain while this policy is in force in all respects as have been agreed in the various statements constituting the basis of this contract and any omission or neglect of such precautions or checks on the part of the Insured or any variation in the occupation and duties of the employees or any alteration in the mode of remuneration of the employees except by increase in salary shall relieve the Company of all liability whatsoever hereunder. 3. On the discovery by the Insured of any act of fraud or dishonesty committed by an employee or of reasonable cause for suspicion thereof or of any improper conduct the Insured shall give written notice thereof to the Company within seven days. After such discovery no amount shall be payable under this policy in respect of any subsequent act of fraud or dishonesty committed by the guilty person. Should the Company independently discover any actual or alleged act or cause or conduct as aforesaid notice to the Insured shall be deemed discovery by the Insured but written notice need not then be given to the Company. Knowledge on the part of any servant of the Insured exercising supervision
over the guilty person shall be deemed to be knowledge of the Insured. 4. The Insured shall as soon as practicable after giving notice of claim under this policy and in any case within three calendar months of such notice deliver at his own expense to the Company full particulars of such claim and furnish proof of the correctness of such claim and if required shall verify the said claim by statutory declaration. 5. In the event of a claim the Company shall only be liable to contribute proportionately with any other guarantee or security against loss whether such guarantee or security be now held by the Insured or be hereafter taken or acquired and the Insured shall be bound to give written notice to the Company of every such guarantee or security and of any limitation discharge or termination thereof. Any monies of the guilty person in the hands of the Insured and any monies which but for any act of fraud or dishonesty committed by such person would have been due to him from the Insured shall be deducted from the amount otherwise payable under this policy. 6. The Insured if required by the Company shall take all steps to obtain the conviction of the guilty person in the event of any act of fraud or dishonesty but at the expense of the Company if a conviction be obtained. The Insured shall make every endeavour to recover the amount of any claim hereunder and any expenses incurred in connection therewith from any third party against whom the Insured or the Company may be entitled to recover any loss consequent upon any act of fraud or dishonesty committed by an employee and shall render all assistance to enable the Company to obtain reimbursement of such loss from the guilty person or his estate. 7. All differences arising out of this policy shall be referred to the decision of an Arbitrator to be appointed in writing by the parties in difference or if they cannot agree upon a single Arbitrator to the decision of two Arbitrators one to be appointed in writing by each of the parties within one calendar month after having been required in writing so to do by either of the parties or in case the Arbitrators do not agree of an Umpire appointed in writing by the Arbitrators before entering upon the reference. The Umpire shall sit with the Arbitrators and preside at their meetings and the making of an Award shall be a condition precedent to any right of action against the Company. If the Company shall disclaim liability to the Insured for any claim hereunder and such claim shall not within twelve calendar months from the date of such disclaimer have been referred to arbitration under the provisions herein contained then the claim shall for all purposes be deemed to have been abandoned and shall not thereafter be recoverable hereunder. 8. A person who is not a party to this Policy contract shall have no right under the Contracts (Rights of Third Parties) Act 2001 to enforce any of its terms. 9. The Company may send seven day's notice to Insured by registered post to terminate this policy at any time in respect of all or any of the employees without prejudice to the rights of the Insured in respect of any act committed prior to such notice which shall be deemed to have been received in ordinary course of post. In this event the Company shall return the pro-rata of the premium paid to the Insured. Fidelity Guarantee Insurance 5 of 6
10. If this Policy shall be continued in force for more than one period of insurance or if any liability shall exist on the part of the Company under this Policy and also under any other Policy effected with the Company in respect of fraud or dishonesty of the employee the liability of the Company hereunder shall not be accumulated or increased thereby but the aggregate liability of the fraud or dishonesty committed by the employee shall not exceed the amount of guarantee in Schedule of the Policy or the amount guaranteed under any other such Policy as aforesaid whichever is the greater. Premium Payment Warranty a) the cover under the Policy, Renewal Certificate, Cover Note or Endorsement is automatically terminated immediately after the expiry of the said 60-day period b) the automatic termination of the cover shall be without prejudice to any liability incurred within the said 60-day period; and c) the Company shall be entitled to a prorata time on risk premium subject to a minimum of S$25.00 3. If the period of insurance is less than 60 days, any premium due must be paid and actually received in full by the Company (or the intermediary through whom this Policy was effected) within the period of insurance. 1. Notwithstanding anything herein contained but subject to clause 2 hereof, it is hereby agreed and declared that if the period of insurance is 60 days or more, any premium due must be paid and actually received in full by the Company (or the intermediary through whom this Policy was effected) within 60 days of the: a) inception date of the coverage under the Policy, Renewal Certificate or Cover Note; or b) effective date of each Endorsement, if any, issued under the Policy, Renewal Certificate or Cover Note 2. In the event that any premium due is not paid and actually received in full by the Company (or the intermediary through whom this Policy was effected) within the 60-day period referred to above, then: 6 of 6 Fidelity Guarantee Insurance