Announcement: New Policy Wordings and Mandatory Clauses Upon Renewal | Kurnia

Announcement: New Policy Wordings and Mandatory Clauses Upon Renewal

Dear Valued Policyholder,

New Policy Wordings and Mandatory Clauses Upon Renewal

Thank you for choosing AmGeneral as your insurer. Further to our recent products’ review process, we would like to advise you that we have recently revamped our Policy Documents. For policies renewing on 1 November 2018 onwards, new set of Policy Wording will be used for the following Classes of Insurance:

  • Burglary
  • Plate Glass
  • Equipment All Risks
  • All Risks
  • Fidelity Guarantee
  • Money
  • Product Liability
  • Comprehensive General Liability (Annual & Contract)
  • Professional Indemnity


For key changes to the Policy Wordings, kindly click here.

Also, kindly note that the following clauses as listed below are made mandatory for policies renewing on 1 November 2018 onwards. Please refer to the Appendix for the full clause wordings.

  1. Class: Burglary, All Risks, Machinery and Equipment, Plate Glass, Equipment All Risks
    • Criminal breach of trust
    • Terrorism exclusion endorsement
    • Premium warranty
    • Property damage clarification
    • Radioactive and nuclear energy risk exclusion risk
    • Sanction limitation and exclusion
    • Theft by deception (cheating)
    • Unvalued policy
       
  2. Class: Money
    • Criminal breach of trust
    • Terrorism exclusion endorsement
    • Premium warranty
    • Property damage clarification
    • Radioactive and nuclear energy risk exclusion risk
    • Sanction limitation and exclusion
    • Theft by deception(cheating)
       
  3. Class: Fidelity Guarantee
    • Terrorism exclusion endorsement
    • Premium warranty
    • Property damage clarification
    • Radioactive and nuclear energy risk exclusion risk
    • Sanction limitation and exclusion
    • Theft by deception (cheating)
       

We are here to assist you to understand the changes above. Please contact our agent, our nearest branch or our friendly Customer Service Executives at:

  • Kurnia Toll Free Number : 1-800-88-6333
  • AmAssurance Toll Free Number : 1-300-80-3030

 

Appendix: Clauses’ Wordings

  1. Criminal Breach of Trust

    The Company shall not be liable for any loss or damage caused by or attributed to the act of criminal breach of trust by any person within the meaning of the definition of the offence of criminal breach of trust set out in the Penal Code.

    Criminal breach of trust as defined in the Penal Code is as follows: -

    "Whoever, being in any manner entrusted with property or with any dominion over property, dishonestly misappropriates or converts to his own use that property, or dishonestly uses or disposes of that property in violation of any direction of law prescribing the mode in which such trust is to be discharged, or of any legal contract, express or implied, which he has made touching the discharge of such trust, of willfully suffers any other person so to do, commits 'criminal breach of trust'."
     

  2. Terrorism Exclusion Endorsement

    Notwithstanding any provision to the contrary within this insurance or any endorsement thereto it is agreed that this insurance excludes loss, damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any act of terrorism regardless of any other cause or event contributing concurrently or in any other sequence to the loss.
    For the purpose of this endorsement an act of terrorism means an act, including but not limited to the use of force or violence and/or the threat thereof, of any person or group(s) of persons whether acting alone or on behalf of or in connection with any organization(s) or government(s), committed for political, religious, ideological or similar purposes including the intention to influence any government and/or to put the public, or any section of the public, in fear.

    This endorsement also excludes loss, damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any action taken in controlling, preventing, suppressing or in any way relating to any act of terrorism.

    If the Company allege that by reason of this exclusion, any loss, damage, cost or expense is not covered by this insurance the burden of proving the contrary shall be upon the Insured.

    In the event any portion of this endorsement is found to be invalid or unenforceable, the remainder shall remain in full force and effect.
     

  3. Premium Warranty

    It is a fundamental and absolute Special Condition of this Contract of insurance that the premium due must be paid and received by the Company within sixty (60) days from the inception date of this Policy/Endorsement/Renewal Certificate.

    If this condition is not complied with then this contract is automatically cancelled and the Company shall be entitled to the pro-rata premium for the period they have been on risk.

    Where the premium payable pursuant to this Warranty is received by an authorized agent of the Company, the payment shall be deemed to be received by the Company for the purposes of this warranty and the onus of proving that the premium payable was received by a person, including an insurance agent, who was not authorized to receive such premium shall lie on the Company.

    Subject otherwise to the terms and conditions of this Policy.
     

  4. Property Damage Clarification

    Property damage covered under this Policy shall mean physical damage to the substance of property.

    Physical damage to the substance of property shall not include damage to data or software, in particular any detrimental change in data, software or computer programs that is cause by deletion, a corruption or a deformation of the original structure.

    Consequently, the following are excluded from this Policy: -

    • Loss of or damage to data or software, but not limited to any detrimental change in data, software or    computer programs that is caused by a deletion, a corruption or a deformation of the original structure, and any business interruption losses resulting from such loss or damage. Notwithstanding this exclusion, loss or damage to data or softwarewhich is the direct consequence of insured physical damage to the substance of property, shall be covered.
    • Loss or damage resulting from an impairment in the function, availability, range of use or accessibility of data, software or computer programs, and any business interruption losses resulting from such loss or damage.

       
  5. Radioactive and Nuclear Energy Risks Exclusion

    This insurance does not cover loss, damage, cost or expense of whatsoever nature directly or indirectly caused by, resulting from or in connection with any of the following regardless of any other cause or event contributing concurrently or in any other sequence to the loss:-

    • Ionizing radiations from or contamination by radioactivity from any nuclear fuel or from any nuclear waste or from the combustion of nuclear fuel.
    • The radioactive, toxic, explosive or other hazardous or contaminating properties of any nuclear installation, reactor or other nuclear assembly or nuclear component thereof.
    • Any weapon of war employing atomic or nuclear fission and/or fusion or other like reaction or radioactive force or matter.

       
  6. Sanction Limitation and Exclusion

    Under no circumstances shall this insurance contract be deemed to provide cover and no liability be incurred 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 Insurers to any sanction, prohibition, or restriction under united nations resolutions or the trade or economic sanctions, laws or regulations of the European Union, United Kingdom or United States of America.
     

  7. Theft by Deception (Cheating)

    The company shall not be liable for any loss or damage caused by or attributed to the act of cheating by any person within the meaning of the definition of the offence of cheating set out in the Penal Code.

    Cheating is defined in the Penal Code as “whoever, by deceiving any person fraudulently or dishonestly induces the person so deceived to deliver any property to any person or to consent that any person shall retain any property or intentionally induces the person so deceived to do or omit to do anything which he would not do or omit if he were not so deceived, and which act or omission causes or is likely to cause damage or harm to that person in body, mind, reputation or property, is said to Cheat”.
     

  8. Unvalued Policy Clause

    This is an unvalued policy. The onus is on the Insured to prove the actual value of the Property insured at the time of the happening of its destruction or the actual amount of such damage.