Self Drive Hire Insurance

Hari ini saya berhadapan dengan case Self Drive Clause dari sebuah broker. Dalam quotation slip klausul itu muncul. Dalam final quotation slip, klausul itu muncul. Apa sebenarnya isi klausul itu? Setelah browsing di internet, ditemukanlah pengertian klausul tersebut. Berikut isinya.

Question: Can my customers pay in cash?
Answer: Self-drive hire insurers generally exclude cover for vehicles where the hirer has paid in cash. In some cases the hirer can pay part of the deposit in cash or if you know and trust a customer who wishes to pay in cash then the insurer may agree to this. If a customer wishes to pay in cash you should generally seek guidance from your insurer prior to completing the hire contract. 

Question: Can I pay for my self-drive hire insurance policy in instalments?
Answer: Yes. In most cases we can arrange for you to pay for your policy in six, nine or ten monthly installments at competitive rates. Credit terms are subject to acceptance of your application and full written details are available on request. 

Question: Can you insure self-drive hire operators in all areas of the UK?
Answer: We can cover self-drive hire risks in most regions of the UK subject to insurers' acceptance.

Question: Do I have to verify the ID of the driver when I hire out a vehicle?
Answer: Yes. You must verify the hirer's identity using some form of photo identity (e.g. photo card license or passport). It is recommended that ID is verified using at least one recent utility bill. On the day of hire, you should also check the original driving license of all the drivers.

Question: How quickly can I obtain a quotation?
Answer: We normally obtain a self-drive hire insurance quotation for you within 1 working day of receiving your details.

Question: What factors affect the premiums that self-drive hire insurers charge?
Answer: The main factors include the type of vehicle involved, the value of the rental vehicles, the area of the country in which your operation is based and the claims history of the business.

Question: What does 'off hire' cover mean?
Answer: : 'Off hire' cover means insurance for your hire vehicles when not on hire - for example, when being driven by an employee of the business or when parked at your premises. We automatically include this cover at no cost to you.

Question: What happens if I get clearance from the insurer to hire to a young driver or someone with a poor driving record?
Answer: Usually there will simply be an increased excess for the hirer, however sometimes you may need to charge an additional premium. The precise terms will be confirmed on a case-by-case basis.

Question: What is a co-insurance clause?
Answer: A co-insurance clause makes you responsible for a proportion of any loss. For example, a 25% co-insurance clause would mean that you are responsible for a quarter of any loss with the insurer covering the remaining 75%. On self-drive hire insurance policies, a co-insurance clause is often applied to ‘theft by hirer’ and, in the case of motorhomes, fire damage claims caused by cooking or heating appliances.

Question: What is a 'minimum and deposit premium'?
Answer: You may be required to pay a ‘minimum and deposit premium’ even if you don’t complete the first year of cover or change to a vehicle that commands a lower premium. Insurers normally remove this on your first renewal.

Question: What is meant by the term 'theft by hirer'?
Answer: Theft may occur when a hirer fails to return a vehicle at the end of a hire period or treats the hired vehicle as his or her own property - for example by selling it to another party.

Question: What sort of excess can I expect on my policy?
Answer: Your excess will vary depending on the type of vehicle, age of driver and the track record of your business. The minimum excess on our self-drive hire insurance policies is generally £500, which applies to most damage claims (including glass breakages). A co-insurance clause of between 25% and 33.3% applies to theft and fire claims caused by cooking and heating appliances.

High value and performance vehicles will generally have a higher excess but these will be shown in your quote. The policy will generally include an additional excess for young drivers, typically £300 for a driver aged between 21 and 24 years.

Question: What sort of vehicles can you cover?
Answer: We can arrange self-drive hire insurance for most types of vehicle including motor homes, motor caravans, camper vans; everyday car and van rental. We also have a special arrangement for prestige and supercar hire. Horse boxes and motorbikes can also be considered.

Question: Will I have to complete lots of paperwork if I have one of your self-drive hire insurance policies?
Answer: No. We realise that you need to concentrate on hiring your vehicles and don't want to be swamped by paperwork so we try to keep this to a minimum. In most cases you will be able to continue to use your standard hirers form but the insurer may want to vet this to make sure it contains acceptable and compliant wording.

Question: Will the insurer make exceptions, for example, to allow me to hire to drivers who would not generally be covered?
Answer: Yes. We realise that you need an insurance partner with a flexible and realistic approach to help you maximise value from your self-drive hire fleet. We contact the insurer directly and get a swift response so you won’t miss the opportunity to hire.

Question: Will there be restrictions on the ages of driver that can hire my vehicles?
Answer: Yes. Generally, drivers aged between 25 and 75 will be accepted at normal terms provided they have held a full license for at least 2 years and have a good driving record. Drivers aged under 25 may be accepted but at a higher rate. For performance cars or high risk vehicles there may be further age restrictions. 

Source: Alanboswell

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Sanction Limitation and Exclusion Clause

No insurer shall be deemed to provide cover and no insurer shall be liable to pay any claim or provide any benefit hereunder to the extent that the provision of such cover, payment of such claim or provision of such benefit would expose that insurer to any sanction, prohibition or restriction under United Nations resolutions or the trade or economic sanctions, laws or regulations of the European Union, Japan, United Kingdom or United States of America.

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SUPPLIERS AND CUSTOMERS EXTENSION CLAUSE

It is agreed that loss resulting from interruption or interference with the Business directly or indirectly arising from damage to property at the situations specified shall be deemed to be loss resulting from damage to property used by the Insured at the premises provided that the liability under this extension in respect of any loss shall not exceed 25 % of the Limit of Sum Insured.

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SUDDEN AND ACCIDENTAL POLLUTION CLAUSE - 72 HOURS (EXCLUDING USA/CANADA)

As a supplement to the General Terms and Conditions No...... for Public and Product liability insurance does not apply to bodily injury and property damage arising out of the discharge, dispersal or other release (e.g.spilling, leaking, emitting or pouring) of smoke, vapours, soot, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste materials or other irritants, contaminations or pollutants  into or upon land, the atmosphere, or any water cause or body of water, with the exception of such discharge, dispersal or release where the following 5 (five) conditions are present :

In the cause of the discharged, dispersal or other release was neither expected nor intended by the insured or persons employed by the insured and occurred suddenly and accidental;
The beginning of the discharge, dispersal or other release occurred during the policy period;
The discharge, dispersal or other release was physically evident by the Insured or other person within 72 hours of the beginning of the discharge, dispersal or other release.
The initial bodily injury or property damage caused by the discharge, dispersal or release occurred within 72 hours of the beginning of the discharge, dispersal or other release.
Notwithstanding any other obligations of the Insured on the event of occurrence, claim, lawsuit or any other policy conditions, all claims made against the Insured this coverage must be reported to the Insurer as soon as practicable, but not later than 30 days after the commencement of the discharge, dispersal or other release.
If the Insured and the Insurer should disagree to when a discharge, dispersal or other release became evident, the burden of proving that all five enumerated conditions are met rests with the Insured, at the Insured's own expenses. Until such proof is accepted by the Insurer, the Insurer may, but is not obliged to, defend any claim.
The coverage shall not apply to:
Costs of evaluation, monitoring or controlling of pollution or contaminating substances.
Costs of removing polluting or contaminating substances on property owned or leases by the Insured or being otherwise under control of the Insured.
Claims against persons (insured or co-insured's) who cause the loss by knowingly deviating from such law, ordinance or official regulations directed towards the insured that are designed to protect the environment;
Claims against persons (Insured's or co-insured) who cause loss by knowingly failing to follow guidelines or user instructions specified by the manufacturer in line with the state of the art for application, or defined regular controls, inspections or maintenance or knowingly fail to carry out essential repair:
Claims in connection with locations or sites used for processing, treating, temporary or permanently storing, clearing or disposing of waste or waste-like materials.
Claims arising out of losses caused by sub-surface operations or interventions or by impairment, damage or loss of sub-surface substances (e.g. oil, gas and suchlike);
Claims arising from losses involving carcinogenic substances.
The sum insured for this extended insurance is USD.............. for each event and year of insurance within the total sum insured.
The Insured shall bear ......% of each loss of thus nature.
The other provisions of the General Terms and conditions and the insurance contact are not affected.

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SUBSIDIARY COMPANIES CLAUSE

Where the term “Subsidiary Companies” is used herein, it shall be deemed to include any company or its subsidiary which may be formed, purchased or acquired by the insured during period of insurance.

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STRUCTURAL ALTERATION CLAUSE (U/POLIS PAR)

It is hereby understood that structural alteration and extensions of the buildings, installation, reinstatement, replacement of machines, tools, implements, piping or other installation and objects as well as to move all there within the premises. In case of removal or demolition of an insured object this insurance will cover the new items substituting the removed or demolished objects up to the original amount insured.

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SUBSIDENCE CLAUSE

This policy included erosion, subsidence, earth movement or collapse resulting there form and section 1 of this policy is extended to include Damage to Property Insured caused by or occasioned through subsidence, earth movement, land-slip, erosion or collapse resulting from any of the foregoing circumstances, but excluding  :
All loss or damage
i)    if signs of subsidence, earth movement, land-slip or erosion were apparent on the site before this insurance commenced.
ii)    Damage arising from coastal erosion, settlement of newly made-up ground or settlement caused by the bedding-down of new structures.
iii)    Damage to paths, paved areas, drives, fences, gates, boundary and retaining walls unless an insured building is damaged by the same event,
iv)    Loss to the extent that compensation is recoverable under legislation.
v)    The lesser of $ 1,000 or 5 % of the cost of reinstatement of the damage, in respect of each claim or series of claims arising out of any one original sources or cause.

OPTION 2
Excluded circumstance 6.2.2 is deleted and section 1 of this policy is extended to include Damage to Property Insured caused by or occasioned through subsidence, earth movement, land-slip, erosion or collapse resulting from any of the foregoing circumstances, but excluding  :
All loss or damage
i)    if signs of subsidence, earth movement, land-slip or erosion were apparent on the site before this insurance commenced.
ii)    Damage arising from coastal erosion, settlement of newly made-up ground or settlement caused by the bedding-down of new structures.
iii)    Damage to paths, paved areas, drives, fences, gates, boundary and retaining walls unless an insured building is damaged by the same event,
iv)    Loss to the extent that compensation is recoverable under legislation.
v)    The lesser of $ 1,000 or 5 % of the cost of reinstatement of the damage, in respect of each claim or series of claims arising out of any one original sources or cause.
Exclusions 6.2.6 and 6.2.9 shall not apply to this extension

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SUBROGATION WAIVER CLAUSE

In the event of a claim arising under this policy, the Insurers agree to waive any rights, remedies or relief to which they might become entitled by subrogation against any company standing in relation of subsidiary to or parent to the insured as defined in section 102 of the company’s act 1997.

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STORM SURGE

This policy included the action of water from the sea, tidal wave or high water but this exclusion shall not apply to a storm surge, which shall mean a temporary change in sea level caused by a meteorological disturbance, such a cyclone, typhoon, hurricane or strong wind.

OPTION 2
Excluded circumstance 6.2.4 is amended to read.

6.2.4    The action of water from the sea, tidal wave or high water but this exclusion shall not apply to a storm surge, which shall mean a temporary change in sea level caused by a meteorological disturbance, such a cyclone, typhoon, hurricane or strong wind.

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STRUCTURAL ALTERATION CLAUSE

Subject to Article III of the within policy, it is hereby understood that structural alteration and extensions of the buildings, installation, reinstatement, replacement of machines, tools, implements, piping or other installation and objects as well as to move all there within the premises. In case of removal or demolition of an insured object this insurance will cover the new items substituting the removed or demolished objects up to the original amount insured.

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STORAGE OF HAZARDOUS GOODS WARRANTY “B”

Warranty under penalty of nullity of this Policy that during its currency, Storage in the premises of the following materials is permitted only up to the limit of quantities stated below, namely :

Paints      No limit

Mineral oil or other liquid giving off flammable vapour with flashpoint not less than 93o C (200o F)   
No limit

Kerosene oil or other liquids giving off flammable vapuor with flashpoint not less than 38o C (100o F)   
1800 Litres (400 Gallons)

Benzene, petrol or other liquids giving off flammable vapour with flashpoint below 38o C (100o F)   
900 Litres (200 Gallons)

Matches     30 Kg or 4 cases or cartons whichever is higher

Fire crackers     30 Kg  or 4 cases or cartons whichever is higher

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STORAGE OF HAZARDOUS GOODS WARRANTY “A”

Warranty under penalty of nullity of this Policy that during its currency, Storage in the premises of the following materials is permitted only up to the limit of quantities stated below, namely :

Paints     600 liter

Mineral oil or other liquid giving off flammable vapour with flashpoint not less than 93o C (200o F)   
400 liter

Kerosene oil or other liquids giving off flammable vapuor with flashpoint not less than 38o C (100o F)   
200 Litres

Benzene, petrol or other liquids giving off flammable vapour with flashpoint below 38o C (100o F)   
30 Litres

Matches     30 Kg or 4 cases or cartons whichever is higher

Fire crackers     30 Kg  or 4 cases or cartons whichever is higher

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STOCK DECLARATION CLAUSE

1.    In consideration of the premium by this policy being provisional in that it is calculated on 75 % of the sum insured hereby and is subject to adjustment on expiry of each period of insurance:
-    The insured agreed to declare to the Insurer in writing the value of his stocks (other than retail), less any amount insured by policies other than declaration policies, on the following basis namely the average of the values at risk during the month and to make such declaration within thirty days of the last day of the calendar month, such declaration to be signed by the Insured or by a responsible person authorized to sign on his behalf
-    If other policies a declaration basis cover the stocks hereby insured the declaration shall be made so as to apportion to each policy a share or the value of the stocks insured under such declaration policies, pro rata to the respective amounts named in the policies.
-    In the event of declaration not being made within the 30 days mentioned above then the Insured shall be deemed to have declared the sum hereby as the value at risk
-    On the expiry of each period of insurance the premium shall be calculated at the rate quoted on the average sum insured, namely the total of the values declared or deemed to have been declared divided by the number or declarations due to have been made. If the resultant premium be greater than the provisional premium the Insured shall pay the difference, if it be less the difference shall be repaid to the Insured but such repayment shall not exceed one third of the provisional premium.

2.    The basis of value for declarations shall be the market value and any loss hereunder shall be settled on the basis of the market value immediately anterior to the loss.

3.    If at the time of any loss, there be any other subsisting insurance or insurance on the other than a declaration basis, whether effected by the insured or by any other person  or persons, covering the stocks hereby insured, this policy shall apply only to the excess of the value of such stocks at the time of loss over the sum insured by such insurance or insurance, and this insurer shall not be liable to contribute more than that proportion of such loss which such excess (or, if there be other declaration insurance covering the same stocks, a ratable proportion of such excess), but not exceeding the sum insured hereby, bears to the total value of the stocks.

4.    If after the occurrence of a loss it is found that the amount of the last declaration previous to the loss is less than the amount that ought to have been declared, then the amount which would have been recoverable by the Insured shall be reduced in such proportion to the amount of the said last declaration bears to the amount that ought to have been declared.

5.    Notwithstanding  the occurrence of a loss it is found that the sum insured will be maintained at all times during the currency of the Policy and the Insured therefore undertakes to pay extra premium on the amount of any loss pro rata from the date of such loss to the expiry of the period of insurance, the premium being calculated at the rate applicable to the stock destroyed and such extra premium shall not be taken into account in, and shall be distinct from, the final adjustment of premium.

6.    In the event of this Policy being cancelled by the Insured during its currency (whether stocks exist or not) the premium to be retained by the Insurer shall be the appropriate short period premium calculated on the average amount insured up to the date of cancelment, or 50 % of the provisional premium whichever is the greater but if the Policy is cancelled by the Insured  shall be the pro rata proportion of the premium calculated on the average amount insured on the date of cancelment plus the pro rata proportion if the premium from the date of loss to the expiry of the period of insurance on the amount of the loss paid, or 50% of the provisional premium whichever is the greater.

7.    The maximum liability of the Insurer shall not exceed the sum insured hereby and premium shall not be receivable on values insured thereof. The sum insured may, however, be increased by prior agreement with the Insurer in which event the new sum insured and the date from which it is effective will be recorded on the Policy be endorsement.

8.    If the stocks hereby insured shall at the time of loss be collectively of greater value than the sum insured thereon, then the Insured shall be considered as being his own insurer for the difference and shall bear a rateable proportion of the loss accordingly. Every time, if more than on Sum Insured exists on stocks (other than retail) it shall be separately subject to this condition.

9.    It is warranted that the every other Policy on a declaration basis covering the stocks insured hereby shall be identical in wording with this Policy.

10.    This insurance is subject  in all respect to the printed conditions of the policy except in so far as the may be varied by these special conditions.

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STOCK AT CUSTOMER’S PREMISES CLAUSE

This Policy is extends to cover stock belonging to the Insured whilst at premises of its customers, insofar as such stocks are not otherwise insured.
Provided this extension shall apply for an amount not exceeding US$. XXX,000.00 any one occurrence.

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SPONTANEOUS COMBUSTION, FERMENTATION OR HEATING

Is amended to read  :
Section 1 of this Policy does not cover spontaneous combustion, spontaneous fermentation or heating or any process involving the direct application of heat.  Provided, however, that the provisions shall be limited to the item or items immediately affected and shall not extend to other property Damaged as a result of any such process;

OPTION 2
Excluded Circumstance 6.1.9 (incorporating its preamble 6.1) is amended to read  :

Section 1 of this Policy does not cover Damage to any Property Insured caused by or in connection with or arising from or occasioned through.

6.1.9    any process involving the direct application of heat.  Provided, however, that the provisions of this Exclusion 6.1.9 shall be limited to the item or items immediately affected and shall not extend to other property Damaged as a result of any such process;

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SPRINKLER LEAKAGE CLAUSE

It is hereby agreed and declared that the insurance under the Policy shall extend to cover loss or damage to the property insured caused by water accidentally discharged or leaking from the Automatic Sprinkler Installation subject to first sum insured (subject to a maximum of 10 % of the total sum insured) and subject to a deductible of Rp. 2.500.000,- any one location and further subject to all the usual conditions of the Policy and the following special conditions :
A.    The liability of Insurer shall in no case under this endorsement and the Policy exceed the sum insured by each item of the Policy.
B.    It is expressly stipulated and made a condition thereof that the insured shall maintain functioning alarm or watchman service insofar as it is under his control or supervision.

Further provided that such discharge or leakage of water shall not be occasioned by or happen through:
i.    Repairs or alterations to the buildings or premises
ii.    The Automatic sprinkler installation being either repaired, removed or extended
iii.    The order of the Government or of any municipal local or other competent Authority
iv.    Explosion, the blowing-up of building or blasting
v.    Defects in construction or condition of which the Insured is aware
vi.    Condensation or deposits on the Automatic Sprinkler Installation.

Additional premium for this extension is 5%o of the first loss limit.

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SPOILAGE COVERAGE EXTENSION CLAUSE

It is herby noted and agreed that in the event of a recoverable loss under this policy, the liability shall extend to include any loss or damage to stock in process subject to the terms and conditions of the policy.

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SPECIAL SELF-COMBUSTION COVERAGE CLAUSE

Subject to the Warranty underneath, it is hereby expressly understood and agreed that in consideration of the payment of an additional premium as arranged, this policy also covers loss or damage to the whole or any part of the property insured under item … of the Schedule of the policy caused by self-combustion or self heating.
Warranted that the goods hereby insured shall be professionally stored.

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SPECIAL ELECTRICAL SHORT CIRCUIT COVERAGE CLAUSE

Notwithstanding anything herein contained to the contrary it is hereby expressly understood and agreed that this policy also covers loss or damage to any generator, motor, transformer and/or other electrical machine and/or electrical installation insured hereunder caused by short circuit or self heating.

OPTION 2  (versi D.A.I Code 4.9)
It is hereby expressly understood and agreed that in consideration of the payment of an additional  premium as arrange, this policy also covers loss to any generator, motor, transformer, and/or any other electrical machine and/or electrical installation except household appliances insured under item ………. Of the schedule of the policy caused by short circuit or self heating subject to a deductible XX% of sum insured of every unit which Insured with a maximum of Rp. XX.000.000,- any one accident.
However, this cover is inapplicable if the risk is covered under "Machinery Breakdown" or any other special policy.

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SOFTWARE AND DATA RELATED LOSSES EXCLUSION

1.    The Insurance by this Policy excludes any Software Loss except:
1.1.    Software Loss resulting damage to the equipment, hardware, media or device on which the programme, computer software or operating systems, programming instructions, or data are transported, processed or contained.
1.2.    Direct physical loss or direct physical damage to tangible property by Fire or Explosion that results from a Software Loss.  For the purposes of this endorsement, electronic data, programme (s), computer software or operating system(s), programming instruction(s) and data are not tangible property.
2.    Software Loss means loss of or damage to any programme (s), computer software or operating system(s), programming instruction(s) or data arising out of resulting from any failure, malfunction, deficiency, deletion, fault, Virus, deletion or corruption or any loss of use, reduction in functionality, cost, expense or liability resulting therefrom.
Software loss includes, but is not limited to, loss or damage resulting from any authorised or unauthorised access in, of or to any computer, communication system, file server, networking equipment, computer system, computer hardware, data processing equipment, computer memory, microchip, microprocessor (computer chip), integrated circuit or similar device in computer equipment, any program, computer software or operating systems, programming instructions or data.
3.    Virus means software, data or code that affects the operation or functionality of any computer, communication system, file server, networking equipment, computer system, computer hardware, data processing equipment, computer memory, microchip, microprocessor (computer chip), integrated circuit or similar device in computer equipment, program, computer software or operating systems, programming instructions or data including, but not limited to any destructive program, computer code, computer virus, worm, logic womb, denial of service attack, smurf attack, vandalism, Trojan Horse or any other data introduced into any electronic system causing deletion, destruction, degradation, corruption, malfunction or compromise of or to data, software or electronic business systems.

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