FIDELITY GUARANTEE TAKAFUL POLICY WHEREAS the Participant named in the schedule hereto had made to JAIZ TAKAFUL INSURANCE PLC (hereinafter called "the Takaful Operator") a written proposal by completing a proposal form which together with any other statements made in writing by the Participant for the purpose of this policy, is deemed to be incorporated hereto. NOW THIS POLICY WITNESSETH that in consideration of the payment to the Takaful Operator of the Contribution specified in the said Schedule and subject to the conditions hereinafter contained and to any endorsement here on all of which so far as the nature of them respectively will permit shall be deemed to be conditions precedent to the Takaful Operator s liability hereunder, the Takaful Operator shall after the date of commencement of guarantee set against the name of the Employee and subsequently for the period of Cover specified in the said Schedule, make good to the Participant (less all salary commission monies or assets the property of the defaulting employee whether in his or her said capacity or not, that may be in or come into the hands or under the control of the Participant), loss of money and/or goods belonging to the Participant or for which the Participant shall be responsible at law not exceeding the Amount of Guarantee set against the name of such Employee in the said Schedule as the Participant shall sustain through any act or acts of forgery or of embezzlement larceny or fraudulent conversion. Forgery is understood to mean the foregoing or fraudulent altering of any document or the altering of any forged or fraudulently altered document by the employee whereby he or she obtains possession of the monies or goods of the Participant committed (a) (b) during the period such employee is guaranteed and during the uninterrupted service of such employee in the capacity aforesaid. and discovered (a) during the period such ) but not later employee is guaranteed or ) than three months (b) within three months of the ) after the death, dismissal, lapsing of this policy or ) termination or (c) notified within twelve (12) ) retirement of such months of commitment ) employee whichever of these events shall first happen. provided always that if this Policy of Guarantee shall continue in force for more than one period of cover the liability of the Takaful Operator hereunder shall not be accumulated or increased thereby and the aggregate liability of the Takaful Operator throughout the subsistence of this Guarantee in respect of any one employee named in the Schedule shall not exceed the Amount of Guarantee set against the name of such employee.
DEFINITION OF COVER: Loss sustained through the dishonesty or fraudulent acts of the Participant s employee committed during any one cover period and during the uninterrupted employment of such persons, and discovered during the period the employee is guaranteed or within one month of the lapsing of the policy but not later than two months after the death, dismissal, termination or retirement of such employee whichever shall first happen. CONDITIONS 1. Interpretation This Policy and the Schedule shall be read together as one contract and any word or expression to which a specific meaning has been attached any part of this Policy or of the Schedule shall bear such meaning wherever it may appear. 2. Observance The due observance and fulfillment of the Terms of this Policy in so far as they relate to anything to be done or complied with by the Participant and the truth of the statements and answers in the Proposal shall be conditions precedent to any liability of the Takaful Operator to make any payment under this policy. 3. Alteration The system of supervision specified in the Proposal or any written statement made in connection therewith together with any arrangement agreed with the Participant for obtaining references in respect of the past service or record of any employee shall be strictly followed unless any variation is approved by the Takaful Operator. The Takaful Operator shall also be advised of any change in the business of the Participant or in the duties or method or scale of remuneration of any employee otherwise than by increase of remuneration. 4. Claims Whether or not it is intended to make any claim in respect thereof, the Participant shall, within forty eight (48) hours and with due diligence give notice in writing to the Takaful Operator of any act of fraud or dishonesty or any reasonable cause for suspicion thereof, or any improper conduct consistent therewith, committed by any employee guaranteed by this policy which shall have come to the knowledge of the Participant or of any representative of the Participant to whom is entrusted the duty of superintendence or audit, and the Takaful Operator shall not be liable for any loss attributable to any acts of fraud or dishonesty committed by the Same employee subsequent to those deemed to have come to the knowledge of the Participant in the manner as aforesaid. The Participant shall at his own expense deliver to the Takaful Operator within three months of the discovery of any act or acts of fraud or dishonesty a claim in writing for the loss containing as particular, an account of the loss as may be reasonably practicable 1
and stating the amount thereof and shall give to the Takaful Operator all such further particulars, information, proofs and explanations as may be reasonably required. The Takaful Operator shall be entitled at its own expenses and for its own benefit in the name of the Participant or otherwise to exercise all rights of action competent to the Participant against any employee or his estate and effects in respect of whom the Takaful Operator has paid or has become liable to pay a claim hereunder. Not more than one claim on account of the same Employee shall be made hereunder. 5. Other Covers If at the time of any loss there shall be subsisting any other guarantee cover or security covering the same loss the Takaful Operator shall not be liable to pay or contribute more than its retable proportion of such loss. 6. Adjustments If any part of the Contribution or Renewal Contribution is calculated on estimates furnished by the Participant the Participant shall keep an accurate record containing all particulars relative thereto and shall at all times allow the Takaful Operator to inspect such record. The Participant shall within one month from the expiry of each Period of Cover furnish to the Takaful Operator such particulars and information as the Takaful Operator may require. The Contribution for such period shall thereupon be adjusted and the difference paid by or allowed to the Participant as the case may be. 7. Cancellation The Takaful Operator may cancel this Policy by sending seven days notice by registered letter to the Participant at his last known address and in such event the Contribution where adjustable shall be adjusted in accordance with Condition (6) or otherwise the Participant shall become entitle to the return of a proportionate part of the Contribution corresponding to the unexpired portion of the Period of Cover. 8. Arbitration If any dispute or difference shall arise as to the quantum to be paid under this policy (liability being otherwise admitted) such difference shall independently of all other questions be referred to the decision of a sole arbitrator to be appointed in writing by the parties to 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 arbitrators, comprising of two arbitrators, one to be appointed by each of the parties to the dispute/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 - CAP. A18 L.F.N, 2004. It is clearly agreed and understood that no difference or dispute shall be preferable to arbitration as hereinbefore provided, if The Takaful Operator has disputed or not accepted liability under or in respect of this policy. 2
The applicable law in and of the arbitration shall be the law of The Federal Republic of Nigeria. The expenses of the arbitrator(s) shall be shared between the parties equally and such expenses, along with all reasonable costs in the conduct of the arbitration, shall be awarded by the arbitrator(s) to the successful party or, where no party can be said to have been wholly successful, to such party as has substantially succeeded. It is agreed a condition precedent to any right of action or suit upon this Policy that an award by such arbitrator or arbitrators shall be first obtained. 9. No Contribution No Cover Clause Notwithstanding anything contained herein to the contrary, it is hereby declared and agreed that the cover granted under this policy is subject to the payment of Total Contribution specified in the schedule, otherwise the policy is not effective. 10. Shariah Complaint Clause It is hereby declared and agreed that this policy excludes the under listed risks in line with Shariah: a) Risks involving riba b) Risks involving gambling c) Risks involving liquor d) Risks involving element of shirk e) Risks on producing impermissible things or bringing harmful effects to the community. f) Risks relating to musical instruments. g) Risks on non-permissible activities like entertainments activities which contradict with the Shariah, working in liquor factories, entertainment centers, discos. h) Risks relating to tobacco goods 11. Takaful Clause a) Participant has paid the contribution based on the principle of AI-Tabarru (gratuitous Contribution). b) The Operator shall deduct 30% of the Takaful contribution stated in the Schedule that the Participant has paid based on the principle of Al-Wakallah (Agency) and the balance thereof shall be credited into the General Takaful Fund (Participants A/C) managed by the Operator. c) The Operator is to manage the Fund including its investment, in a manner deemed fit by the Operator and in line with Shariah approved guidelines. d) In accordance with the principle of Al-Mudharabah, 50% of the return on investing the funds will be for the Operator and the balance shall be credited to the Participants pool (Participants Account). e) After paying Re-Takaful, claims, commissions and reserves from the Participants Account any remaining surplus shall be distributed to Participants proportionally f) Surplus distribution shall be limited to only Participants who have not incurred any claims or received any Takaful benefits under their policy for the period of consideration. 3
POLICY NO: THE TAKAFUL OPERATOR: THE SCHEDULE THE PARTICIPANT: OFFICE (HEAD OR BRANCH).. ADDRESS: BUSINESS:. DESIGNATION OF EMPLOYEE. PERIOD OF COVER: ( a) From:...To :... (Both dates inclusive) (b) Any subsequent period for which the Participant shall pay and thetakaful Operator shall agree to accept a renewal Contribution. CONTRIBUTION:... RENEWAL DATE:... Date of Commencement of Name of Employee Guarantee Nature of Employment Amount of Guarantee ( N ) TOTAL AGGREGATE GUARANTEED AGGREGATE LIMIT GUARANTEED ANY ONE PERIOD OF TAKAFUL Dated in...this... day of..., 20.. Agency: Examined By:...... For: JAIZ TAKAFUL INSURANCE PLC 4
MEMORANDUM ATTACHING TO AND FORMING PART OF FIDELITY GUARANTEE POLICY NO:... ISSUED IN THE NAME OF :... MEMO 1: NO CONTRIBUTION NO COVER CLAUSE Notwithstanding anything contained herein to the contrary, it is hereby declared and agreed that the cover granted under this policy is subject to the payment of Total Contribution specified in the schedule, otherwise the policy is not effective. MEMO 2: CHARACTER REFERENCE CLAUSE It is hereby understood and agreed that it is a condition precedent to liability that the Participant has obtained at least two (2) satisfactory character reference in respect of the person covered by this policy. MEMO 3: EMPLOYMENT WARRANTY It is a condition precedent to liability of the Takaful Operator that: (a) (b) The employee Participant by the within policy is duly employed by the Participant and that there are documentary evidence to prove this. The duties of such employee is segregated and clearly defined so that no one employee is permitted to control a transaction from start to finish and that dual control is established. MEMO 4: PRECAUTIONS AND CHECKS CLAUSE It is understood and agreed that the precautions and checks for securing accuracy of accounts and limiting the amount of monies received by or entrusted to any employee at any one time shall be duly deserved, put in practice and maintained on the part of the Participant. MEMO 5: DOCUMENTARY EVIDENCE WARRANTY It is warranted that during currency of this policy. (a) (b) The Participant shall keep a complete set of Books, Accounts of Books showing a true and accurate record of business transactions and that such Books and Accounts shall be locked up in a fire-proof safe or be removed to another building at night and at all times when the premises are not actually open for business. In the event of any claim for loss under this policy, the Participant will produce documentary evidence in English of all the books and accounts held immediately prior to the happening of the loss. MEMO 6: CONVICTION CLAUSE 5
The Participant shall if required by the Takaful Operator and as a condition precedent to the Takaful Operator entertaining any claim under this policy forthwith take all necessary steps for prosecuting to conviction any employee for any criminal act committed by such employee in consequence of which a claim may be hereunder the Takaful Operator in the event of conviction paying all expenses necessarily incurred by the Participant in connection with such prosecution and the Participant shall also give to the Takaful Operator all such information and assistance as may be reasonably required for maintaining any action against such employee for reimbursing to the Takaful Operator any monies which they may pay or become liable to pay under this policy. MEMO 7: MISAPPROPRIATION OF STOCK CLAUSE It is hereby declared and agreed that the within guarantee agreement covers loss at net value from stock proved to have been feloniously and criminally misappropriated by employees subject to such stock being checked by the Employers or by an authorised persons on his behalf at intervals of not more than a month. Anything which contained to the contrary notwithstanding the total liability under this agreement however, being limited to the amount herein set forth. MEMO 8: CASH DEPOSIT CLAUSE It is warranted that at any Branch Office, Cash Deposit of N100,000.00 and above must be cleared and authorized by the Branch Manager or in his absence, the Assistant Branch Manager and or the Branch Accountant. A notation of such deposit must be kept by the authorizing officer. It is warranted that in any Branch Office where the amount of cash handled daily is above N100,000.00 the functions of the Paying and Receiving Cashier must be separated. MEMO 9: DORMANT ACCOUNTS CLAUSE It is warranted that where an account has been declared dormant and not regularly operated, withdrawal must be specifically authorized by the Branch Manager and or in his absence his Assistant or the Branch Accountant. A dormant account in relation to a current account means any account which has received no deposit for three months or more and in relation to a savings accounts, six months or more. MEMO 10: CHEQUE LEAVES CLAUSE It is warranted that a Cheque Leaf or Book not allocated to an account shall not be accepted as valid instrument to withdraw money from any account. MEMO 11: NEW EMPLOYEES/ADDITION CLAUSE It is hereby declared and agreed that subject to the receipt of satisfactory Report or Testimonials from former employers or any other Reference Acceptable to this Takaful Operator, the Takaful Operator shall bond the Participant covered automatically for any new additional 6
employees coming within the schedule of this policy, provided that such additional employees shall be included in the monthly declaration. MEMO 12: REMUNERATION CLAUSE Any salary, commission or other emoluments which but for the act or acts of fraud or dishonesty on which the claim shall be founded would have become payable by the Participant or such Employee or any other money which shall be due to such Employee from the Participant shall be deducted from the amount payable under this Policy. MEMO 13: COLLUSION EXCLUSION CLAUSE The Takaful Operator will not indemnify the Participant against loss of money or other property as a direct result of any act of fraud or Dishonesty committed by any employee described in the schedule in collusion with an outsider or outsiders and/or the Participant s customers. MEMO 14: PROOF OF LOSS CLAUSE That in the event of a loss, the onus shall be on the Participant to provide enough evidence (documentary or otherwise) to prove that the fraud or dishonesty has been committed by any employee guaranteed by this policy. Mere suspicion or shortage at stock-taking shall not be accepted by the Takaful Operator. MEMO 15: DISCOVERY PERIOD CLAUSE This policy warrants that the Acts covered against are discovered not later than three (3) months after the resignation, dismissal or death of the employee or not later than three (3) months after the termination of this Policy whichever is earlier. MEMO 16: JURISDICTION CLAUSE Notwithstanding anything contained herein to the contrary, it is agreed that the indemnity provided herein shall not apply to: (a) (b) compensation for damages in respect of judgments delivered or obtained in the first instance in a court of competent jurisdiction outside the geographical area. costs, and expenses of all litigation recovered by any claimant from the Participant which are incurred in and recoverable in the geographical area. MEMO 17: AMENDED PROSECUTION CLAUSE That Participant is required to furnish evidence to the crime authorities of any act covered against that may arise in a claim and all employees involved must be prosecuted at the Participant expense. 7
MEMO 18: DAILY CHECKING OF TRANSACTION The Participant shall conduct daily checking of all financial transactions with a view to ensuring that books are balanced. The Takaful Operator shall not be liable for any loss caused by failure to carry out the daily checking as aforementioned. MEMO 19: STAFF SELECTION The cover is granted on the understanding that the Participant shall not employ any staff who has been dismissed by any other employer or who has been convicted by any court for forgery, embezzlement, larceny or fraudulent conversion of monies and/or stock belonging to or held in trust by a previous employer or any other official authority. The Participant shall observed the same precaution at all times during the currency of this policy. MEMO 20: AGGREGATE LIMIT Notwithstanding anything contain herein to the contrary, it is hereby declared and agreed that the liability of the Takaful Operator under this policy for all compensation for any claims or any number of claims in any one period of cover shall not exceed limits stated on the policy. MEMO 21: MISAPPROPRIATION CLAUSE Any salary, commission or other emoluments of any employee in respect of whom a claim is made in the hands of the Participant, any monies which but for any act of fraud or dishonesty committed by such employee would have been due to him from the Participant shall be deducted from the amount of the direct loss sustained by the Participant by reason of such fraud or dishonesty. MEMO 22: AUDITING CLAUSE Warranted that the Participant must have their account audited as follows:- a. External Auditing: Every year by a qualified Auditor b. Internal Auditing: On monthly basis MEMO 23: ANNUAL LEAVE WARRANTY It is warranted that every staff must proceed on his or her annual leave within the year. MEMO 24: POLITICAL RISKS EXCLUSION CLAUSE This Policy does not cover any loss or damage occasioned directly or indirectly by, or through, or in consequence of any of the following occurrences, namely: 1. War, invasion, act of foreign enemy, hostilities or warlike operations (whether war be declared or not, civil war) 8
2. Abandonment and/or permanent or temporary dispossession resulting from detention, confiscation, seizure restraint, commandeering nationalization, appropriation, destruction or requisition by order or any government de jure or de facto or by any public authority. 3. Mutiny, civil commotion, military rising, insurrection, rebellion, revolution, military or usurped power, martial law or state of siege or any of the events or causes which determine the proclamation or maintenance or martial law or state of siege. 4. Any riot, strike or public disorder or any act or activity, which is calculated or directed to bring about public disorder unless riots and strike extension is endorsed on the policy and then only to the extent stated. 5. Any act which is calculated or directed to bring about loss or damage in order to further any political aim, objective or cause, or to bring about any social or economic change or in protest against any state or government, or any political or local authority, or for the purpose of imposing fear in the public or any section thereof. 6. The act of any lawfully established authority in controlling, preventing, suppressing or in any other way dealing with any occurrence referred to in items 4 and 5 above. 7. Plundering, looting, war, pillage in connection with riots and/or civil commotion. For the purposes of item 4, 5 and 6, any loss or damage occasioned directly by a labour disturbance, lock-out or strike shall not be excluded. MEMO 25: EXCESS CLAUSE Warranted that the Participant shall bear the first N25,000.00 or 10% of each and every claim whichever is higher within the scope of the policy arising out of each event. 9