This provides cover against losses caused:
Fire, Lightning, Explosion of domestic gas cylinders. Storm, Tempest, Flooding, Escape of water, Impact damage by road vehicles and animals, Earthquakes or Volcanic Eruptions, Aircraft and other aerial devices or articles dropped therefrom.
TERMS & CONDITIONS
TAKAFUL POLICY FOR FIRE AND SPECIAL PERILS
Takaful International Company – from herein referred as “THE COMPANY” agrees (subject to the terms, definitions, exclusions, provisions and conditions contained herein or endorsed or otherwise expressed hereon which conditions shall so far as the nature of them respectively will permit be deemed to be conditions precedent to the right of the participant to recover hereunder), that if after the participant has paid or undertaken to pay the First or any renewal contribution, the Property covered by this policy described in the Schedule or any part of such property be lost, destroyed or damaged by any of the PERILS covered in the Schedule at any time during the Period of takaful insurance the Company will pay to the participant the value of the property at the time of the happening of its loss or destruction or the amount of such damage or at its option will reinstate or replace such property or any part thereof.
PROVIDED THAT-the liability of the Company shall in no case exceed
(i) In the whole the Total takaful amount or in respect of any item its takaful amount at the time of the loss, destruction or damage
(ii) The takaful amount remaining after payment for any otherloss destruction or damage occurring during the same Period of Insurance unless the Company shall have agreed to reinstate any such takaful amount.
DEFINITION – the word “DAMAGE” in capital letters shall mean
loss or destruction of or damage to the Property under cover at
the Premises.
PERILS
A. FIRE, LIGHTNING, EXPLOSION
i. FIRE (whether resulting from explosion or otherwise excluding)
(a) Any DAMAGE occasioned by earthquake, volcanic eruption or other convulsions of nature
(b) DAMAGE occasioned by
(i) its own spontaneous fermentation or heating or
(ii) its undergoing any process involving the application of heat.
(c) any DAMAGE occasioned by or through or in consequence of the burning, whether accidental or otherwise, of forests, bush, prairie, pampas or jungle, and the clearing of lands by fire.
ii. LIGHTNING
iii. EXPLOSION
(a) of boilers
or
(b) of gas
used for domestic purposes only but excluding DAMAGE caused by earthquake, volcanic eruption or other convulsions of nature.
B. EXPLOSION
excluding DAMAGE by and / or to boilers (other than boilers used for domestic purposes), economisers, or other vessels, machinery or apparatus in which pressure is used or to their contents resulting from their explosion.
C. AIRCRAFT and other aerial devices and / or articles dropped therefrom excluding DAMAGE by pressure waves caused by aircraft or other aerial devices travelling at super sonic or sonic speeds.
D. EARTHQUAKE OR VOLCANIC ERUPTION, including flood or overflow of the sea occasioned thereby. The Company is not liable for the Deductible specified in the Schedule in respect of DAMAGE caused otherwise than by fire. The Deductible applies to each and every loss at each separate location as ascertained after the application of Claims Condition No.6 Average (Under takaful).
E. STORM AND TEMPEST
Excluding DAMAGE
(i) caused by
the escape of water from normal confines of any
natural or artificial water course or lake reservoir
canal or dam or any water tanks, apparatus or
pipes an inundation from the sea whether resulting
from storm or otherwise.
(ii) caused by frost, subsidence or landslip
(iii) to awnings, blinds, signs or other outdoor fixtures and fittings, gates and fences and movable property in the open
(iv) to premises in course of construction, alteration or repair except when all outside doors, windows and other openings are complete and protected against storm or tempest
(v) by water of rain other than by water or rain entering the building through openings made in its fabric, by the direct force of the storm or tempest
(vi) as a result of doors, windows or roof lights being left open or in a defective condition
(vii) solely attributable to change in water table levels The company is not liable for the Deductible specified in the Schedule. The Deductible applies to each and every loss at each separate location as ascertained after the application of Claims Condition No.6 – Average (Under takaful)
F. FLOOD
DAMAGE caused by the escape of water from the normal confines of any natural or artificial water course or lake reservoir canal or dam or inundation from the sea.
Excluding DAMAGE
(i) caused by frost, subsidence or landslip
(ii) to awnings, blinds, signs or other outdoor fixtures and fittings, gates and fences and moveable property in the open
(iii) to premises in course of construction, alteration or repair except when all outside doors, windows and other openings are complete and securely protected
(iv) by water or rain other than by water or rain entering the building through openings made in its fabric by the direct force of the storm or tempest
(v) as a result of doors, windows or roof lights being left open or in a defective condition
(vi) resulting from the escape of water from any tank apparatus or pipes
(vii) caused as a result of inability of gutters, pipes, downpipes and apparatus to convey rain water off and out of the Building
(viii) Solely attributable to change in water table levels The Company is not liable for the Deductible specified in the Schedule. The Deductible applies to each and every loss at each separate location as ascertained after the application of Claims Condition No.6 – Average (Under takaful)
G. ESCAPE OF WATER FROM ANY TANK, APPARATUS OR PIPES
Excluding
(i) DAMAGE by water discharged or leaking from an installation of automatic sprinklers
(ii) DAMAGE in respect of any building which is empty or left unoccupied for more than 30 days consecutively
(iii) DAMAGE to the component or appliance from which the water escapes
(iv) Costs of locating and rectifying the source of escape of water. The Company is not liable for the Deductible specified in the Schedule. The Deductible applies to each and every loss at each separate location as ascertained after the application of Claims Condition No.6 Average (Under takaful)
H. IMPACT BY ANY ROAD VEHICLE OR ANIMAL
Excluding
DAMAGE by any road vehicle or animal belonging to or under the control of the participant or any occupier of the premises or their respective employees. The company is not liable for the Deductible specified in the Schedule. The Deductible applies to each and every loss at each separate location as ascertained after the application of Claims Condition No.6 – Average (Under takaful)
GENERAL EXCLUSIONS
This Policy does not cover:
1. DAMAGE
(a) occasioned by or through or in consequence directly or indirectly
(i) of malicious act or acts of sabotage by any person or persons known or unknown for the purpose of this exclusion “Malicious Act” or “Sabotage” shall mean any loss or damage which is deliberately caused by a person or persons known or unknown
(ii) of acts of terrorism committed by a person or persons acting on behalf of or in connection with any organization for the purpose of this Exclusion “terrorism” means the use of violence for political ends and includes any use of violence for the purpose of putting the public or any section of the public in fear or activities directed to the overthrow of the Government de jure or de facto or the influencing of it by such terrorism
(iii) riot, civil commotion, strikers or locked outworkers
(iv) war, invasion, act of foreign enemy, hostilities or warlike operations (whether war be declared or not), civil war,
(v) mutiny, military or popular uprising, 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 of martial law or state of siege.
(b) to any property whatsoever or any loss or expense whatsoever resulting or arising therefrom or any consequential loss directly or indirectly caused by or contributed to by or arising from
(i) any nuclear weapons material
(ii) ionizing radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel. Solely for the purpose of this Exclusion “combustion” shall include any self sustaining process of nuclear fission.
(c) to any electrical machine, apparatus, or any portion of the electrical installation arising from or occasioned by overunning, excessive pressure, short circuiting, self heating, arcing or leakage or electricity arising from whatever cause (lightning included) PROVIDED that this Exclusion shall only apply to the particular machine, apparatus or portion of the electrical installation so affected, and not to other machines, apparatus or electrical installation destroyed or damaged by fire set up by such particular machine, apparatus or other electrical installation.
(d) caused by pollution or contamination except (unless otherwise excluded) DAMAGE to the Property under
cover caused by
(i) pollution or contamination which itself results from a Peril hereby covered against
(ii) any Peril hereby covered against which itself results from pollution or contamination This Insurance also excludes any liability in connection with disposed or dumped wasted materials or substances.
(e) Caused by wear and tear, corrosion, vermin, insects, fungus, dry rot or gradual deterioration.
2. (a) Goods held in trust or on commission including under custody, control and care as part of any contractual obligation of the participant bullion or unset precious stones, money (coined or paper), cheques, securities, obligations, stamps, documents, manuscripts, business books, computer systems records, patterns, models, moulds, plans, drawing or designs, explosives, unless specifically mentioned as covered by this Policy;
(b) DAMAGE to Property covered which, at the time of the happening of such DAMAGE is covered by, or would, but for the existence of this Policy, be covered by any marine policy or policies, except in respect of any excess beyond the amount which would have
been payable under the marine policy or policies had this takaful insurance not been effected.
3. Consequential loss or DAMAGE of any kind or description except those specified in the Schedule of the Policy.
CLAIMS CONDITIONS
1. Action by the participant:
If any event giving rise to or likely to give rise to a claim under this Policy comes to his knowledge the participant shall
(a) immediately
(i) take steps to minimise the loss or damage and recover any missing property
(ii) give notice in writing to the Company
(b) within 30 days or such further time as the Company may in writing allow, deliver to the Company
(i) a claim in writing for the DAMAGE containing as particular an account as may be reasonably practical of all the several articles or items of property lost or damaged and the amount of DAMAGE thereto respectively having regard to their value at the time of
the DAMAGE.
(ii) Particulars of all other insurance or takaful insurance if any The participant shall at all times at his own expense produce, procure and give to the Company all such further particulars,plans, specifications, books, vouchers, invoices,duplicates or copies thereof, documents, proofs and information with respect to the claim and the origin and cause of the DAMAGE and the circumstances under which the DAMAGE occurred, and any matter touching the liability or the amount of liability of the Company as may be reasonably required by or on behalf of the Company together with a declaration on oath or in other legal form of the truth of the claim and any matters connected therewith.
2. Forfeiture:
(a) All benefit under the Policy shall be forfeited if any claim made is in any respect fraudulent or if any fraudulent means or devices are used by the participant or any one acting on his behalf to obtain benefit under this policy or if any DAMAGE is caused by the willful act or with the connivance of the participant.
(b) Benefit under the Policy shall also be forfeited in respect of any claim made and rejected if an action or suit be not commenced within twelve months after such rejection.
3. Basis of Loss Settlement:
(a) The participant is required to keep all books of accounts, business records and the like accurately and in such a manner that the true extent of any loss can be established in accordance with the basis of settlement detailed below.
(b) Unless otherwise specifically stated in the Policy, Claims under the Policy will be settled in accordance with the Operative Clause and Claims Condition No.4 of the Policy and, claim payments will be calculated taking into account the actual value of the Property under cover at the time of the DAMAGE subject to deductions for betterment (if any), depreciation, wear and tear, slow, non-moving, obsolete or unsaleable stocks in accordance with international Accounting Standards IAS 2 Valuation and presentation of inventories in the context of the historical cos system” or any revisions thereof, Provided that the amount payable under the Policy shall not exceed any individual item(s) takaful (s) amount (s) or in all the Total Sum Insured under the Policy.
4. Reinstatement:
The company may at its option, repair or replace the property damaged or destroyed, or any part thereof, instead of paying the amount of the loss or DAMAGE, or may join with any other Company or Insurers in so doing, but the Company shall not be bound to repair exactly or completely, but only as circumstances permit and in reasonably sufficient manner, and in no case shall the Company be bound to expend more in repair than it would have cost to repair such property as it was at the time of the occurrence of such loss or damage, nor more than the takaful
amount thereon.
If the Company so elects to repair or replace any property the participant shall, at his own expense, furnish the Company with such plans, specifications, measurements, quantities and such other particulars as the Company may require, and nor acts
done, or caused to be done by the Company with a view to repair or replacement shall he deemed an election by the company to repair or replace.
If in any case the Company shall be unable to repair or replace the Property under cover, because of any municipal or other regulations in force affecting the alignment of streets, or the construction of buildings, or otherwise, the Company shall, in
every such case, only be liable to pay such sums as would be required to repair or replace such Property if the same could lawfully be repaired to its former condition.
5. Rights of the Company following a claim:
On the happening of DAMAGE in respect of which a claim is made the Company and any person authorised by the Company may without hereby incurring any liability or diminishing any of the Company’s rights under this Policy,
(a) enter, take or keep possession of the premises where such DAMAGE has occurred
(b) take possession of or require to be delivered to the Company any Property under cover and deal with such Property for all reasonable purposes and in any reasonable manner. No property may be abandoned to the Company whether taken possession of by the Company or not.
6. Average (Under takaful):
If the Property under cover, at the time of any DAMAGE, be collectively of greater value than the takaful amount thereon, the participant shall bear a share of the loss corresponding directly to the proportion of under insurance. Every item, if more than one, of the Policy shall be separately subject to this Condition.
7. Contribution:
If at the time of any DAMAGE there be any other takaful insurance or insurance effected by or on behalf of the participant covering any of the Property lost, destroyed or damaged, the liability of the Company hereunder shall be limited to its rateable proportion of such DAMAGE.
If any such takaful insurance or insurance is expressed to cover any of the Property under cover, but is subject to any provision whereby it is excluded from ranking concurrently with this Policy either in whole or in part or from contributing rateably to the destruction or DAMAGE, the liability of the Company hereunder shall he limited to such proportion of the destruction or damage as the takaful amount hereby bears to the value of the property.
8. Subrogation:
The claimant agrees to subrogate all rights or remedies to the company for obtaining relief or indemnity from other parties, upon its paying or making good any destruction or damage under this Policy, and shall at the request and at the expense of the company do and concur in doing and permit to be done all such acts and things as may be necessary or reasonably required by the company for the purpose of enforcing such rights or remedies, whether such acts and things shall be or become necessary or required before or after his indemnification by the company.
9. Arbitration:
(a) Any difference which may arise between the contracting parties of this agreement or the validity thereof and which cannot be settled by amicable arrangement shall be submitted for final decision to a Court of Arbitration.
(b) The place of Arbitration shall be in Kingdom of Bahrain.
(c) The Court of Arbitration shall consist of two Arbitrators and one Umpire. The said Arbitrators and Umpire shall be present or past executives or officials of takaful insurance / insurance / retakaful or Reinsurance Companies.
(d) The Defendant shall, within four weeks of receiving nomination by the Plaintiff or the latter’s Arbitrators likewise appoint an Arbitrator. Both Arbitrators shall appoint the Umpire within four weeks of nomination of the Second Arbitrator.
(e) Should the Defendant fail to nominate his Arbitrator within the terms specified or should the Umpire not be appointed within the period prescribed, they shall on the Plaintiff’s application be appointed by the High Court of the Kingdom of Bahrain.
(f) Should either of the Arbitrators or the Umpire be prevented from attending the proceedings, he shall be replaced in like compliance with the above regulations.
(g) Within four weeks of constitution of the Court of Arbitration the Plaintiff shall submit his points of claim to the Umpire in quadruplicate. One copy shall be deliveredto the Defendant by the Umpire under cover of registered letter and within four weeks of receipt thereof the Defendant shall submit his points of defense to the Umpire. Upon specific request, and for valid reasons, the Umpire may extend the period stipulated for the above procedure.
(h) In all other respects the Court of Arbitration shall decide according to its own free discretion as to the procedure to be followed, in which respect judicial formalities shall be avoided wherever possible.
(i) The Court of Arbitration shall pass all decisions by absolute majority of votes. In the event of parity of votes the Umpire shall hold the casting vote.
(j) The Award shall be given within one year as from receipt of the point of claim by the Umpire, it shall be drawn up in writing together with the reasons supporting the Award and shall be signed by the Arbitrators and the Umpire should a minority of the Court of Arbitration refuse to sign the said Award, this shall not detract from the validity thereof.
(k) The Court of Arbitration shall decide as to the allocation of the costs between the parties, the advance of a reasonable sum may be demanded from the parties at any time.
(l) The law of procedure applicable at the place of Arbitration shall be observed as supplementary to these present provisions.
(m) The present agreement shall be subject to the substantial law in Kingdom of Bahrain. The Arbitrators shall nevertheless give their decision with due regard to current takaful practice and common equity rather than according to the strict letter of the law. (n) The decision of the Court of Arbitration shall be final and binding on the parties with no right of appeal therefrom.
GENERAL CONDITIONS
1. Identification
This policy and the Schedule and Specification (which form an integral part of this Policy) shall be read together as one contract and words and expressions to which specific meanings have been attached in any part of this Policy or of the Schedule or Specification shall bear such specific meanings wherever they may appear.
2. Policy Voidable
This Policy shall be voidable by the Company in the event of misrepresentation, misdescription or non-disclosure in any material particular by the participant.
3. Alterations and Removals
Under any of the following circumstances the takaful insurance ceases to attach as regards the property affected unless the participant before the occurrence of any DAMAGE, has obtained the sanction of the Company signified by endorsement upon the Policy, by or on behalf of the Company:
(a) if the trade or manufacture carried on is altered, or if the nature of the occupation of or other circumstances affecting the building under cover or containing the Property under cover is changed in such a way as to increase the risk of DAMAGE by any of the perils cover;
(b) if any of the buildings under cover or containing theProperty under cover become unoccupied and so remain for a period of more than 30 days;
(c) if the Property under cover is removed to any building or place other than that in which it is herein stated to be cover;
(d) if the interest in the Property under cover passes from the participant otherwise than by will or operation of Law.
4. Sum takaful
(a) It is a condition of the Policy that any individual takaful amount (s) and/or the Total takaful amount must equal the total value(s) of the property at risk.
(b) Unless otherwise specifically stated in the Policy, ifany individual takaful amount and / or the Total takaful amount is found to be less than the value at risk, in accordance with the terms of Claims Condition No.6 Average (Under takaful) of the Policy claim payments will be reduced in such proportion as the takaful amount bears to the value at risk.
5. Cancellation
This Policy may be terminated at any time at the request of the participant in writing in which case the Company will retain the customary short period rate for the time the Policy has been in force. This policy may also be terminated at any time at the option of the Company, on seven days notice to that effect being given to the participant, in which case the Company shall be liable to repay on demand a rateable proportion of the contribution for the unexpired term from the date of the cancellation.
6. FaIl or Displacement of Building
All takaful insurance under this Policy
(i) on any building or part of any building
(ii) on any property contained in any building
(iii) on rent or other subject matter of takaful insurance in respect of or in connection with any building or any property contained in any building shall cease immediatelyupon, any fall or displacement:
(a) of such building or of any part thereof,
(b) of the whole or any part of any range of buildings or of any structure of which such building forms part. PROVIDED that such fall or displacement is of the whole or a substantial or important part of such building or impairs the usefulness of such building or any part thereof or leaves such building or any part thereof or any property contained therein subject to increased risk of fire or is otherwise material. AND PROVIDED that such fall or displacement is not caused by fire, loss or damage which is covered by this Policy or would be covered if such building, range of buildings or structure were covered under this Policy.
7. Safeguards and Maintenance
The participant Insured shall all the time take steps to safeguard the property under cover and maintain it in a proper state of repair. The participant shall also take steps to enforce the observation of all statutory provisions, manufacturers recommendations and other regulations relating to the safety, use and inspection of the property under cover.
8. Warranties
Every warranty to which the Property under cover or any item thereof is, or may be made subject, shall from the time the warranty attaches apply and continue to be in force during the whole currency of this Policy, and noncompliance with any such
warranty shall be a bar to any claim in respect of such property or item, provided that whenever this Policy is renewed a claim in respect of DAMAGE occurring during the renewal period shall not be barred by reason of a warranty not having been complied with at any time before commencement of such period.
9. Contracting Purchase’s Interest
If at the time of DAMAGE the participan shall have contracted to sell the interest of the cover in any building hereby cover and the purchase shall not have been completed but shall be thereafter completed, the purchaser on completion of the purchase (if and so far as the property is not otherwise cover against such DAMAGE by the purchaser or on behalf of the purchaser) shall be entitled to benefit under this Policy without prejudice to the rights and liabilities of the participant or the Company until completion.
10. Jurisdiction
The policy is subject to the provisions issued by the courts with competence in the Kingdom of Bahrain. Licensed as a General and Family Takaful Company by the Central Bank of Bahrain.
THE TAKAFUL PRINCIPLES AND CONDITIONS
i) The principles and provisions of the Islamic Sharia shall be applicable to this Takaful policy as decided by the Company’s Sharia Board.
ii) The participant is considered jointly liable with the remaining participants for compensating the losses suffered by any participant. The Company shall compensate the participant out of the Takaful fund for losses and damages sustained according to the terms and conditions set forth in this policy.
iii) The participant shall donate part of all of each contribution into a co-operative Takaful fund for the benefit of the participants.
iv) The Wakala fees (Management Fees) will be paid to the Company out of gross contribution paid by the participants to manage the business. This fees is a percentage of overall contribution which is determined at the beginning of each financial year. Participants will be notified about this fees in advance through press media and renewal notice or any other means of contacts.
v) The Company shall invest participant’s contributions collectively for the benefit of participants on a Mudaraba basis for a fee equal to a percentage of the realized profits calculated at the end of the financial year. This predetermined percentage shall be declared at the beginning of each financial year and the participants shall be informed through press media and renewal notices, or any other proper means of communications.
vi) Surplus account is calculated as follows:-
(a) If there is any deficit in overall underwriting business, all classes will be treated as one portfolio and distribution of profit will not be made for any class of insurance Takaful.
(b) In case of any overall surplus, this will be allocated prorata across the profitable classes according to their contribution to overall surplus.
vii) The Company shall distribute from the surplus arising in the Takaful fund to eligible participants as follows:-
(a) A participant will not have the right to receive any surplus from Takaful surplus; it he/she is compensated for damage sustained by him/her where the compensation is equivalent to or more than the contributions.
(b) A participant will have the right to receive a part of his entitlement to the Takaful surplus after deducingthe damages sustained if the compensation is less than the contributions.
viii) The financial position of the participant shall be deemed as one position in respect of each type of Takaful Insurance with the Company.
ix) If the participant does not collect his/her share of surplus within a period of 5 years from the end of the financial year during which this policy expires, that share of surplus shall be transferred to a reserve fund to protect the equity of participants.
x) A deduction of not more than 50% of surplus Takaful fund will be made as a donation for Takaful provisions to protect the equity of participants subject to maximum of Company’s capital. In case of Company’s liquidation, this provision will be paid to as charity as decided by Sharia Board after settlement of participants liabilities/commitments.