Issuu on Google+


Table of Contents

Sasria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . pg 1 General Exceptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . pg 1 General Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . pg 2 Houseowners Section . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . pg 3 Householders Section . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . pg 5 All Risks Section . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . pg 8 Personal Liability Section . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . pg 8 Personal Accident Section . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . pg 9 Electronic Equipment Section . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . pg 10 Motor Section . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . pg 13 Pleasure Craft Section . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . pg 17

Contact Details Safire Insurance Company Limited Physical Address:

Safire House Redlands Estate Pietermaritzburg 3201

Tel: +27 (0)33 264 8500 Fax: +27 (0)33 264 8501 Website: www.safireinsurance.com Email: info@safireinsurance.com

Postal Address:

P O Box 11475 Dorpspruit 3206 South Africa

Reg No: 2000/027673/06 FSP No: 2092


SAFIRE SIGNATURE POLICY In consideration of the payment of the premium or satisfactory arrangements having been made for the discharge of the same, the Company / Companies mentioned in the schedule agrees to make good any loss suffered by the insured either by payment or at the Company’s option by reinstatement or repair or to pay compensation in respect of the events as provided in the sections forming part of this policy occurring during the period of insurance or any subsequent period for which the Company may agree to renew this insurance but not exceeding in respect of each section of the policy the sum insured, limit of indemnity, amount of compensation or any other amounts specified.

(viii) If the Company alleges that, by reason of clause 1.(A)(i), (ii), (iii), (iv), (v), (vi), or (vii) of this exception, loss or damage is not covered by this policy, the burden of proving the contrary shall rest on the insured. (B) This policy does not cover loss or damage caused directly or indirectly by or through or in consequence of any occurrence for which a fund has been established in terms of the War Damage Insurance and Compensation Act, 1976 (No. 85 of 1976) or any similar Act operative in any of the territories to which this policy applies. (C) Notwithstanding any provision of this policy including any exclusion, exception or extension or other provision not included herein which would otherwise override a general exception, this policy does not cover loss of or damage to property or expense of whatsoever nature directly or indirectly caused by, arising out of or in connection with any act of terrorism regardless of any other cause or event contributing concurrently or in any sequence to the loss, damage or expense.

The proposal and declaration made by or on behalf of the insured shall form the basis of and be deemed to be part of this policy. The General Exceptions and General Conditions shall apply in all respects to the insurance granted by this policy except as they may be varied by any Exception or Special Condition in any section. This policy and schedule must be read together as one contract and words and expressions to which specific meanings may have been given in any part of the policy shall have those meanings wherever they may appear.

For the purpose of this General exception 1.(C) an act of terrorism includes, without limitation, the use of violence or force or the threat thereof whether as an act harmful to human life or not, by any person or group of persons, whether acting alone or on behalf of or in connection with any organisation or government, committed for political, religious, personal or ideological reasons or purposes including any act committed with the intention to influence any government or for the purpose of inspiring fear in the public or any section thereof.

SASRIA If stated in the schedule Riot and Strike Cover provided by the South African Special Risks Insurance Association (SASRIA) Reg. No. 1979/00287/08 is included.

If the Company alleges that, by reason of clause 1.(C) of this exception, loss or damage is not covered by this policy, the burden of proving the contrary shall rest on the insured. 2. Nuclear

GENERAL EXCEPTIONS

Except as regards the Personal Accident section this policy does not cover:

Unless stated to the contrary in any section, this policy does not cover:

(A) loss or destruction of or damage to any property, whatsoever or any loss or expense whatsoever resulting or arising therefrom or any consequential loss

1. War, Riot and Terrorism

(B) any legal liability of whatsoever nature directly or indirectly caused by or contributed to by or arising from ionising irradiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel. For the purpose of this exception only, combustion shall include any selfsustaining process of nuclear fission.

(A) This policy does not cover loss of or damage to property related to or caused by: (i)

civil commotion, labour disturbances, riot, strike, lockout or public disorder or any act or activity which is calculated or directed to bring about any of the foregoing;

(ii)

war, invasion, act of foreign enemy, hostilities or warlike operations (whether war be declared or not) or civil war;

(iii) mutiny, military rising, military or usurped power, martial law or state of siege, or any other event or cause which determines the proclamation or maintenance of martial law or state of siege; insurrection, rebellion or revolution;

(C) the indemnity provided by this policy shall not apply to nor include any loss, destruction, damage or legal liability directly or indirectly caused by, or contributed to by, or arising from nuclear weapons material. 3. Computer Losses

(iv) any act (whether on behalf of any organisation, body or person or group of persons) calculated or directed to overthrow or influence any State or Government or any provincial, local or tribal authority with force or by means of fear, terrorism or violence; (v) 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 provincial, local or tribal authority, or for the purpose of inspiring fear in the public or any section thereof; (vi) any attempt to perform any act referred to in clause (iv) or (v) above; (vii) the act of any lawfully established authority in controlling, preventing, suppressing or in any other way dealing with any occurrence referred to in clause 1.(A)(i), (ii), (iii), (iv) or (v) above;

Safire Signature Policy

Page 1 of 22

General exception applicable to all sections of this policy insuring damage to property or the consequences of damage to property or any liability Notwithstanding any provision of this policy including any exclusion, exception or extension or other provision not included herein which would otherwise override a general exception, this policy does not cover: (A) loss or destruction of or damage to any property whatsoever (including a computer) or any loss or expense whatsoever resulting or arising therefrom; (B) any legal liability of whatsoever nature or any consequential loss directly or indirectly caused by or contributed to, by or consisting of or arising from the incapacity or failure of any computer, correctly or at all: (i)

to treat any date as the correct date or true calendar date, or correctly or appropriately to recognise, manipulate, interpret, process, store, receive or to respond to any data or information, or to carry out any command or instruction, in regard to or in connection with any such date, or

updated June 2010


(ii)

to capture, save, retain or to process any information or code as a result of the operation of any command which has been programmed into any computer, being a command which causes the loss of data or the inability to capture, save, retain or correctly to process such data in regard to or in connection with any such date, or

2. Claims (A) On the happening of any event which may result in a claim under this policy the insured must at his own expense (i)

(iii) to capture, save, retain or to process any information or code due to programme errors, incorrect entry or the inadvertent cancellation or corruption of data and / or programmes, or

notify the Company in writing of the event as soon as possible and shall give particulars of any other insurances which may also apply;

(ii)

(iv) to capture, save, retain or to process any data as a result of the action of any computer virus, or other corrupting, harmful or otherwise unauthorised code or instruction including any trojan horse, time or logic bomb or worm or any other destructive code, media or programme or interference.

immediately inform the police of any claim involving theft or loss of property and take all practicable steps to discover the guilty party and to recover the property;

(iii) within 30 (thirty) days after the event submit to the Company full details in writing of such claim together with particulars of any other claim made against the insured; (iv) give to the Company any proof information or sworn declaration it requires and forward to the Company immediately any notice of claim or any communication whatever writ summons or other legal process issued or commenced against the insured in connection with the event giving rise to the claim.

A computer includes any computer, data processing equipment, microchip, integrated circuit or similar device in computer or noncomputer equipment or any computer software, tools, operating system or any computer hardware or peripherals and the information or data electronically or otherwise stored in or on any of the above, whether the property of the insured or not.

(B) No claim under this policy will be payable after the expiry of 6 (six) months (or such further period as the Company may in writing allow) from the happening of the event giving rise to the claim unless the claim is the subject of pending legal action or is a claim for indemnity in respect of sums which the insured may become legally liable to pay as compensation in respect of death bodily injury illness loss or damage.

Special Extension to General Exception 3 (A) Loss or destruction of or damage to the insured property by fire, explosion, lightning, earthquake or by the special perils referred to in B. below or indemnified by the Glass, Employer’s Liability, Stated Benefits, Group Personal Accident or Motor section is not excluded by this General exception.

(C) In the event of the Company disclaiming liability in respect of any claim and an action or suit be not commenced within three months after the disclaimer all benefit under this policy in respect of that claim will be forfeited.

(B) The special perils that are not excluded for the purpose of this special extension are damage caused by: (i)

storm, wind, water, hail or snow excluding damage to property (a) arising from its undergoing any process necessarily involving the use or application of water;

If required, payments on account may be made to the insured at the discretion of the Company. 3. Other Insurances If at the time of any event in respect of which a claim is made under this policy there is another insurance effected by or on behalf of the insured covering the event the Company will not pay more than its rateable proportion of any sum payable.

(b) caused by tidal wave originating from earthquake or volcanic eruption; (c) in the underground workings of any mine; (d) in the open (other than buildings structures and plant designed to exist or operate in the open);

If the other insurance is subject to any Condition of Average this policy if not already subject to any Condition of Average will be subject to Average in a like manner.

(e) in any structure not completely roofed;

If the other insurance covers any of the events insured by this policy 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 to the loss damage or liability the Company will not pay more than its rateable proportion of any loss or damage as the sum insured bears to the value of the property or more than its rateable proportion of any liability.

(f) being retaining walls; (ii)

aircraft and other aerial devices or articles dropped therefrom;

(iii) impact by animals, trees, aerials, satellite dishes or vehicles excluding damage to such, animals, trees, aerials, satellite dishes or vehicles or property in or on such vehicles. These special perils do not cover wear and tear or gradual deterioration.

4. Reinstatement If the Company elects to reinstate or replace any property the insured must at his own expense give to the Company all plans documents books or information the Company requires. The Company is not bound to reinstate exactly or completely but only as circumstances permit and in a reasonably sufficient manner and will not pay in respect of any one of the items insured more than its sum insured.

(C) General exception 3. also does not apply to consequential loss as insured by any Business Interruption indemnity provided by this policy to the extent that such consequential loss results from damage to insured property by the perils referred to in Special extension 1. above.

5. Company’s Rights After an Event (D) This Special extension will not insure any loss, destruction, damage or consequential loss if it would not have been insured in the absence of this Computer Losses General exception and this Special extension. This Special extension shall not apply to any Public Liability indemnity.

(A) On the happening of any event in respect of which a claim is or may be made under this policy the Company or every person authorised by the Company may without incurring any liability and without diminishing the right of the Company to rely on any conditions of this policy (i)

enter take or keep possession of the building or premises where the loss or damage has happened and may take possession of or require to be delivered to it any of the property insured and may keep possession of and deal with the property for all reasonable purposes and in any reasonable manner;

(ii)

take over and conduct in the name of the insured the defence or settlement of any claim in the name of the insured for its own benefit and shall have full discretion in the conduct of any proceedings and in the settlement of any claim. No admission of liability statement or other offer may be made by the insured to other parties without the written consent of the Company.

GENERAL CONDITIONS 1. Prevention of Loss The insured must take all reasonable and timeous steps to prevent accident injury illness loss or damage.

Safire Signature Policy

Page 2 of 22

updated June 2010


(B) Any claimant under this policy must at the request and the expense of the Company give all assistance reasonably required by the Company in taking action against other parties irrespective of whether the assistance is required before or after he has been indemnified by the Company.

13. Jurisdiction Any dispute which the parties fail to settle by agreement or by arbitration shall be subject to the jurisdiction of the court of the Republic of South Africa.

If the insured or anyone acting on his behalf does not give that assistance or hinders or obstructs the Company in taking action against other parties then all benefit under this policy will be forfeited.

HOUSEOWNERS SECTION

6. Abandonment No property may be abandoned to the Company.

Loss of or damage to the buildings caused by any of the insured events. Subject to an excess of R250 (two hundred and fifty rand).

7. Fraudulent Statements The validity of this policy is based upon the information contained in the proposal signed by the insured and any fraudulent misrepresentation arising therefrom or contained therein shall immediately vitiate this policy. If a claim is made which is in any way unfounded or fraudulent or intentionally exaggerated or if any false declaration or statement is made in support of the claim or if any loss damage or liability is caused by the fraudulent act or with the fraudulent connivance of the insured all benefit under this policy will be forfeited.

Insured Events 1. fire lightning explosion 2. storm wind water hail or snow excluding (A) loss or damage caused by subsidence or landslip (B) loss of or damage to gates fences or retaining walls 3. earthquake 4. bursting or overflowing of water tanks apparatus or pipes including damage to the apparatus or pipes

8. (a) Cancellation This policy or any section may be cancelled

5. accidental impact to the exterior portion of the buildings

(i) by the insured at any time and the Company will be entitled to retain the customary short term premium or minimum premium (ii) by the Company by 30 (thirty) days notice given in writing to the insured at his last known address and the Company will retain a pro rata premium. (b) Continuation of Cover (where premium is payable by bank debit order or by transmission account)

6. theft or attempted theft but excluding theft of fixtures and fittings whilst the private residence or any of its parts are in the charge of housesitters or lent let or sublet by the insured unless the theft is accompanied by actual forcible and violent entry into or exit from the buildings at the premises 7. escape of oil fuel or lubricant from a fixed container or associated apparatus 8. malicious damage (as defined).

Underinsurance

The premium is due in advance and, if it is not received by the Company by the due date, this insurance shall be deemed to have been cancelled at midnight on the last day of the preceding period of insurance unless the insured can show that failure to make payment was an error on the part of his bank or other paying agent.

If the Property insured at the time of any loss or damage is collectively of greater value than the sum insured the insured will be considered to be his own insurer for the excess and must bear a rateable share of the loss or damage. Every item if more than one of this section is separately subject to this clause.

Due date will be the very first day of every calendar month where premium is payable monthly, the first day of

Extensions

(i) each 3rd (third)

In addition to the sums insured this insurance includes the following:

(ii) each 6th (sixth) or (iii) each 12th (twelfth) calendar month following inception where premium is payable quarterly, half-yearly or annually

1. Capital Additions The value of alterations, additions and improvements (but not appreciation in value in excess of the sums insured) to the buildings for an amount not exceeding 15% (fifteen percent) of the sum insured but the insured must advise the Company as soon as possible of these alterations, additions and improvements and pay an appropriate additional premium.

9. Automatic Increase Margin The sums insured under the Householders section and Houseowners section may be increased automatically on the anniversary date of this policy by a percentage commensurate with price indices. This does not relieve the insured of responsibility to ensure that the sums insured represent the full value of the property at all times.

2. Municipal Charges Charges for which the insured is responsible levied by any municipal or local authority for fire extinguishment.

10. Observance of Terms and Truth of Statement The observance and fulfilment of the terms provisions conditions and endorsements of this policy by the insured insofar as they relate to anything to be done or complied with by him and the truth of the statements and answers in the proposal and declaration are conditions precedent to any liability of the Company to make any payment under this policy.

3. Protection of the Buildings Against Further Damage Costs reasonably and necessarily incurred for temporary protection of the buildings following damage caused by any of the insured events. The Company’s liability in terms of this extension will not exceed R5 000 (five thousand rand) any one occurrence unless approved by the Company

11. Interest in the Policy Unless otherwise agreed by endorsement nothing contained in this policy gives any rights against the Company to any person other than the insured. Furthermore the Company is not bound by any passing of the interest of the insured otherwise than by death or operation of law unless the Company by endorsement declares the insurance to be continued. The extension of the Company’s liability in respect of the property of any person other than the insured gives no rights of claim to the person the intention being that the insured must in all cases claim for and on behalf of the person and the receipt by the insured absolutely discharges the Company’s liability.

4. Loss of Rent An amount not exceeding 25% (twenty five percent) of the sum insured for rent receivable actually lost in respect of the period the buildings are uninhabitable following damage to the buildings caused by any of the insured events. 5. Accidental Damage to Public Supply or Mains Connections

12. Currency

Accidental damage to water sewerage gas oil electricity or telephone connections or other underground pipes on the property of the insured or for which he is legally responsible between the buildings and the public supply or mains.

Any premium payable to and any claim payable by the Company shall be paid in South African currency.

Safire Signature Policy

Page 3 of 22

updated June 2010


(E) liability in respect of death bodily injury illness loss or damage caused by or in connection with or arising from

6. Accidental Breakage of Glass and Sanitaryware The cost of replacement following accidental breakage (but only whilst the private residence is furnished and occupied) of (A) sanitary ware excluding chipping and scratching

(i)

any profession or business of the insured

(ii)

the ownership or possession or use by or on behalf of the insured of lifts or mechanically propelled vehicles or trailers other than motorised gardening equipment

(F) (i)

compensation for damages in respect of judgements delivered or obtained in the first instance otherwise than by a Court of competent jurisdiction within the area which on 1 December 1997 constituted South Africa. Costs and expenses of litigation recovered by any claimant from the insured which are not incurred in and

(B) fixed glass including mirrors and glass in solar heaters and stoves forming part of the buildings. 7. Rebuilding Costs Costs necessarily incurred by the insured in respect of the following as a result of loss or damage caused by any of the insured events: (A) Architects’ Surveyors’ Consulting Engineers’ and other fees approved by the Company

(ii)

(B) Demolition debris removal or the erection of pavement hoardings during rebuilding operations

(G) liability in respect of

(C) Costs to comply with Building Regulations framed in accordance with any Act of Parliament or by ordinance of any municipal or other local authority provided that the liability of the Company in respect of these costs will not exceed 20% (twenty percent) of the sum insured.

(i)

death, injury, illness, loss or damage caused by or in connection with or arising from pollution or contamination

(ii)

the cost of removing nullifying or cleaning up seeping polluting or contaminating substances unless the seepage pollution or contamination is caused by a sudden unintended and unexpected event

8. Costs of Removal of Fallen Trees

(H) liability for punitive exemplary or vindictive damages fines or penalties awarded in any Court;

Costs reasonably and necessarily incurred in removing from the premises trees or parts of trees that have fallen not exceeding R5 000 (five thousand rand).

(I) Costs and expenses incurred subsequent to the date on which the Company has paid or offered to pay either the full amount of the claim or the total amount recoverable in respect of any occurrence.

9. Automatic Reinstatement Maintenance of the sum insured at the amount shown in the schedule but the insured must pay additional premium on the amount of the loss or damage from the date of its occurrence to the expiry of the period of insurance.

11. Subsidence and Landslip

10. Public Liability (A) All sums which the insured is legally liable to pay as owner of the premises for compensation in respect of (i)

death of or bodily injury to or illness of any person;

(ii)

physical loss of or physical damage to tangible property occurring during the period of insurance as a result of an accident within the premises;

(B) All costs and expenses of litigation

(if stated in the schedule to be included) (A) This section is extended to include destruction or damage to the dwelling caused by subsidence or heave of the land supporting the dwelling or landslip provided such destruction or damage is not caused by or does not arise from (i)

excavations other than mining excavations

(ii)

alterations, additions or repairs to the dwelling

(iii) the compaction of infill (iv) defective design, materials or workmanship

(i)

recovered by any claimant against the insured;

(ii)

incurred with the written consent of the Company in respect of a claim against the insured for compensation to which the indemnity expressed in this extension applies.

(v) normal settlement, shrinkage or expansion of the dwelling.

In the event of the death of the insured the Company will in respect of the liability incurred by the insured indemnify the lnsured’s personal representatives in the terms of and subject to the limitations of this extension provided that the personal representatives must as though they were the insured observe fulfil and be subject to the terms exceptions and conditions of the policy so far as they can apply.

(B) The Company will not be liable for destruction or damage to (i)

solid floor slabs or any other part of the dwelling resulting from the movement of such slabs unless the foundations supporting the external walls of the private residence or its domestic outbuildings are damaged by the same cause at the same time.

(ii)

swimming pools, tennis courts, sauna and spa rooms and baths, gates, walls, fences, driveways, paths, patios, terraces, septic or conservatory tanks, drains and water courses unless the private residence or its domestic outbuildings are damaged by the same cause at the same time.

Provided that the amount payable in respect of any one accident or series of accidents arising out of one event will not exceed the sum stated in the schedule attached hereto inclusive of all compensation and all costs of litigation and all other costs and expenses. The indemnity expressed in this extension does not apply to nor include

(C) The Company will not be liable for (i)

work necessary to prevent further destruction or damage due to subsidence, heave or landslip except where appropriate design precautions were implemented during the original construction of the dwelling and any subsequent additions thereto

(ii)

the first portion of each claim calculated at 1% (one percent) of sum insured or R500 (five hundred rand) whichever is the greater.

(A) liability assumed by the insured by agreement and which would not have attached in the absence of the agreement; (B) liability in respect of death of or bodily injury to or illness of any person who is a member of the insured’s family or household; (C) liability in respect of death of or bodily injury to or illness of any person under a contract of service or apprenticeship with the insured if the liability is in respect of death bodily injury or illness arising out of and in the course of the employment of the person by the insured; (D) liability in respect of loss of or damage to property belonging to or in the charge or under the control of the insured or of any servant or agent of the insured or of a member of his family or household;

Safire Signature Policy

recoverable in the area described in F (i) above.

Page 4 of 22

(D) consequential loss of any kind whatsoever except loss of rent when specifically insured under this section. In any action suit or other proceeding where the Company alleges that, by reason of the provisions of these exceptions, any damage is not covered by this insurance, the burden of proving the contrary shall be upon the insured.

updated June 2010


delay otherwise no payment beyond the amount which would have been payable under this section if this Condition had not been incorporated will be made.

Definitions 1. The Insured

(B) Until expenditure has been incurred by the insured in replacing or reinstating the property damaged the Company will not be liable for any payment in excess of the amount which would have been payable under the section if this Condition had not been incorporated.

The insured means The insured named in the schedule and any member of his family normally residing with him. 2. Buildings Buildings means the building of the private residence constructed of brick stone or concrete with slate tile concrete asbestos or metal roof except as specially mentioned, and all its outbuildings including landlord’s fixtures and fittings, driveways, patios, tennis courts, spa baths, sauna rooms and swimming pools and spa sauna and swimming pool machinery (other than automatic pool cleaners), borehole equipment, septic or conservatory tanks and walls gates and fences (other than hedges) all situate on the premises.

(C) If at the time of replacement or reinstatement the sum representing the cost which would have been incurred in replacement or reinstatement if the whole of the property covered had been destroyed, exceeds its sum insured at the commencement of any damage the insured will be considered to be his own insurer for the excess and must bear a rateable proportion of the loss. Every item if more than one of this section is separately subject to this provision.

3. Malicious Damage

(D) This condition will be without force or effect if

Malicious Damage means loss or damage directly occasioned by or through or in consequence of the deliberate or wilful or wanton act of any person committed with the intention of causing such loss or damage but excluding loss or damage caused by or arising from theft or any attempt thereat.

(i)

the insured fails to advise the Company within 3 (three) months from the date of damage his intention to replace or reinstate the property damaged

(ii)

the insured is unable or unwilling to replace or reinstate the property on the same or another site.

Provided that this does not cover (A) consequential or indirect loss or damage of any kind or description whatsoever other than loss of rent if specifically insured (B) loss or damage resulting from total or partial cessation of work or the retarding or interruption or cessation of any process or operation

HOUSEHOLDERS SECTION

(C) loss or damage occasioned by permanent or temporary dispossession resulting from confiscation, commandeering or requisition by any lawfully constituted authority

Loss of or damage to the Contents caused by any of the insured events.

(D) loss or damage related to or caused by any occurrence referred to in General Exception 1.(A)(i), (ii), (iii), (iv) or (v) or the act of any lawfully established authority in controlling, preventing, suppressing or in any other way dealing with any such occurrence.

Insured Events 1. fire lightning explosion 2. storm wind water hail or snow but excluding damage to property in the open unless the property is designed to exist or operate in the open

If the Company alleges that by reason of provisos (A), (B), (C) or (D) loss or damage is not covered,the burden of proving the contrary shall rest on the insured.

3. earthquake

Exception

5. accidental impact to the exterior portion of the buildings

4. bursting or overflowing of water tanks apparatus or pipes excluding damage caused to the apparatus or pipes 6. (A) theft or attempted theft from

The indemnity provided by this section does not include consequential loss or damage of any kind whatsoever other than as provided by the extensions.

(i)

the buildings (but not its outbuildings which do not directly communicate with the private residence) but excluding theft or attempted theft whilst the private residence or any of its parts are in the charge of housesitters or lent let or sublet by the insured unless the theft is accompanied by forcible and violent entry into or exit from the buildings

(ii)

any outbuilding at the premises which does not directly communicate with the private residence but if the theft or attempted theft is not accompanied by forcible and violent entry into or exit from the outbuilding the Company will not pay more than R10 000 (ten thousand rand) in respect of that event

Special Conditions 1. Mortgagee The interest of any mortgagee as regards the buildings and Loss of Rent will not be invalidated by any act or neglect of the mortgagor or owner of the Property insured nor by any misrepresentation or nondisclosure by the mortgagor or owner of the Property insured at the time when the insurance is effected or renewed or during its currency nor by the alienation of property nor by its occupation for purposes more hazardous than are permitted by this policy provided that the act neglect misrepresentation non-disclosure alienation or occupation is effected without the knowledge of the mortgagee. Provided also that the mortgagee must notify the Company of the happening or existence of the act neglect misrepresentation non-disclosure alienation or occupation as soon as it comes to his knowledge and on reasonable demand must pay an additional charge for any increase of hazard created according to the established scale of rates at and for the time the increased hazard is assumed by the Company. 2. Reinstatement

(iv) any bank safe deposit furniture depository office or club where the Contents have been stored or deposited for safe custody (v) any other building if accompanied by forcible and violent entry into or exit from the building (B) theft or attempted theft

In the event of the Property insured being damaged by any of the insured events the amount payable for the Item affected will be the cost of replacing or reinstating on the same site property of the same kind or type but not superior to nor more extensive than the property insured when new subject to the following special provisions and subject to the terms exceptions and conditions of the policy except as varied by this Condition. (A) The work of replacement or reinstatement (which may be carried out upon another site and in any manner suitable to the requirements of the insured subject to the liability of the Company not being increased) must be carried out without unreasonable Safire Signature Policy

(iii) any building in which the insured is temporarily residing or any private residence in which the Contents are temporarily contained

Page 5 of 22

(i)

of laundry outdoor furniture and equipment including garden and swimming pool maintenance equipment (including automatic pool cleaners) from the grounds of the premises described in the schedule up to an amount of R10 000 (ten thousand rand) any one event

(ii)

whilst in transit in the custody of the insured to or from any place of purchase repair or renovation following an accident to the conveying motor vehicle or theft following forcible and violent entry into the vehicle up to an amount of R10 000 (ten thousand rand) any one event

updated June 2010


(iii) whilst in transit during the process of removal necessitated by a permanent change of residence of the insured named in the schedule or to or from any bank safe deposit furniture depository office or club where the contents are to be or have been stored or deposited for safe custody

7. Transit Damage limited to any one occurrence to household goods whilst in transit in the custody of the insured to or from any place of purchase repair or renovation and or permanent change of address provided the damage is caused by a fire, collision or overturning of the conveying motor vehicle. The companies liability will not exceed the sum insured stated in the schedule.

7. escape of oil from a fixed fuel or lubricant container or associated apparatus. 8. malicious damage (as defined).

8. Foodstuffs

Underinsurance

Loss not exceeding R10 000 (ten thousand rand) any one occurrence due to deterioration of food whilst in any refrigerator or deep freeze (food freezer) caused by accidental failure of the power supply (including gas and paraffin) or by the breakdown of the refrigeration unit or by the interruption of the power supply where no prior notice thereof has been given by the supplier.

If the property insured at the time of any loss or damage is collectively of greater value than the sum insured the insured will be considered to be his own insurer for the excess and must bear a rateable share of the loss or damage. Every item if more than one of this section is separately subject to this clause.

9. Locks and Keys

Extensions

Costs and expenses not exceeding R10 000 (ten thousand rand) any one occurrence reasonably and necessarily incurred as a direct consequence of the loss of or damage to any keys to the buildings or to any motor vehicle or caravan owned by the insured including costs of modifying or replacing locks and remote controls.

In addition to the sums insured this insurance includes the following and a claim in respect of any of the extensions will not affect the Claim Free Group.

10. Cash Cards and Credit Cards

1. Municipal Charges

Loss suffered or liability incurred by the insured (and not otherwise insured) up to R1 000 (one thousand rand) in any one period of insurance as a direct result of the loss or theft during the period of insurance and the subsequent unauthorised use of any cash card or credit card provided that the insured has complied with the terms and conditions of the card issuing authority.

Charges for which the insured is responsible levied by any municipal or local authority for fire extinguishment. 2. Protection of the Contents Against Further Damage Costs reasonably and necessarily incurred for temporary protection of the Contents following damage to the buildings caused by any of the insured events. The Company’s liability in terms of this extension will not exceed R5 000 (five thousand rand) any one occurrence unless approved by the Company.

11. Veterinary Fees Veterinary fees and expenses incurred not exceeding R10 000 (ten thousand rand) any one accident as a result of injury caused by a road vehicle to a dog or cat owned by the insured or for which the insured is responsible.

3. Rent An amount not exceeding 25% (twenty five percent) of the sum insured if the buildings are so damaged by any of the insured events that they become uninhabitable. Payment will be for the period necessary for the buildings to be rendered habitable and will be limited to

12. Medical Expenses Medical expenses not exceeding R10 000 (ten thousand rand) per person (and not otherwise insured) incurred as a result of accidental bodily injury sustained

(A) the actual rent for which the insured is liable as occupier of the private residence (B) any reasonable additional expenses necessarily incurred in providing alternative accommodation

(A) by any person (not being the insured or a member of the insured’s family or household or in the insured’s service) directly caused by any domestic animal owned by the insured and kept at the premises

(C) necessary transit and storage expenses in respect of the Contents.

(B) by any guest or visitor of the insured directly caused by any defect in the premises (C) by any domestic servant of the insured arising out of and in the course of the employment of the servant.

4. Loss of Money Loss of money not exceeding R10 000 (ten thousand rand) any one occurrence whilst in the buildings by any of the insured events but excluding loss by theft unless accompanied by forcible and violent entry into or exit from the buildings.

13. Documents Costs and expenses not exceeding R10 000 (ten thousand rand) any one occurrence reasonably and necessarily incurred as a direct consequence of loss or damage caused by any of the insured events to the insured’s personal documents. The Company will be liable only for the value of materials and the cost of labour in reinstatement or other costs in obtaining duplicate documents.

5. Accidental Breakage of Mirrors and Glass Accidental breakage of mirrors and plate glass tops to furniture or fixed glass forming part of any article of furniture or of a stove whilst in the buildings. 6. Accidental Damage to Video Recorders DVD Players Decoders and Television Sets

14. Compensation for Death of Insured A payment of R10 000 (ten thousand rand) per person to the insured or the insured’s legal representative should the insured be fatally injured in or on the premises by thieves or during a fire provided that the death ensues within twelve months of the injury. Provided that the amount of the Company’s liability in respect of the death of any minor child shall not exceed any limit imposed by law in respect of such payment.

Costs of repairing or replacing video recorders decoders dvd players and television sets (including aerials) damaged whilst in or on the buildings by accidental external means not otherwise insured by this section provided that the Company will not be liable in respect of (A) damage arising (i)

from mechanical damage or electrical breakdown

(ii)

from wear and tear depreciation rust moth vermin any process of cleaning repairing or restoring gradual deterioration which includes the action of light atmospheric or climatic conditions

15. Property Belonging to Guests

(iii) from scratching, abrading, chipping or denting (iv) during the fitting, adjustment, repair or dismantling of any part of the equipment or aerial

Property belonging to guests temporarily residing with the insured whilst in the buildings if lost or damaged by any of the insured events provided that (A) the property is not otherwise insured (B) the Company’s liability will not exceed R10 000 (ten thousand rand) in respect of any one occurrence.

(B) the cost of re-erecting or realigning aerials or aerial fittings which have been displaced but which have not been damaged. Safire Signature Policy

Page 6 of 22

updated June 2010


Average is not applicable to this cover. A claim will not influence your no claim bonus.

16. Hole-in-one or Perfect Eight Benefit If a Hole-in-one or Perfect Eight is scored whilst playing as an amateur in a game of golf or bowls in terms of the rules of any recognised golf club or bowling club, the Company will pay R3 000 (three thousand rand) on written confirmation by the Secretary of the club.

21. Trauma Cover Medical expenses not covered elsewhere following a Fire or a violent act of theft, attempted theft, hold up or hi-jacking, which necessitates professional counselling. The Company will pay compensation up to R5 000 (five thousand rand) any one claim.

17. Property Belonging to Domestic Servants Property belonging to domestic servants in the direct employ of the insured whilst contained in the buildings if lost or damaged by any of the insured events other than theft not accompanied by forcible and violent entry into or exit from the buildings provided that

22. Business Goods Loss of/or damage to business goods and equipment whilst in the buildings caused by any of the insured events but not exceeding R30 000 (thirty thousand rand) in any 12 (twelve) month period.

(A) the property is not otherwise insured (B) the Company’s liability will not exceed R10 000 (ten thousand rand) in respect of any one occurrence.

Definitions 1. The Insured

18. Automatic Reinstatement Maintenance of the sum insured at the amount shown in the schedule but the insured must pay additional premium on the amount of the loss or damage from the date of its occurrence to the expiry of the period of insurance.

The insured means the insured named in the schedule and any member of his family normally residing with him. 2. Contents Contents means household goods and personal effects of every description, the property of the insured or for which he is responsible and the fixtures and fittings (not being landlord’s fixtures and fittings) normally situated at the premises.

19. Tenants Liability All sums which the insured is legally liable to pay as tenant and occupier of any private residence for compensation in respect of (A) physical loss of or physical damage to the buildings of the private residence directly caused by any of the insured events

3. Buildings Buildings means the private residence constructed of brick stone or concrete with slate tile concrete asbestos or metal roof except as specially mentioned and all its outbuildings all situate on the premises.

(B) physical breakage of (i)

sanitary ware excluding chipping and scratching

(ii)

fixed glass including mirrors and glass in solar heaters and stoves forming part of the buildings of the private residence

4. Malicious Damage Malicious damage means loss or damage directly occasioned by or through or in consequence of the deliberate or wilful or wanton act of any person committed with the intention of causing such loss or damage but excluding loss or damage caused by or arising from theft or any attempt thereat. Provided that this does not cover

(C) physical damage to underground pipes and cables extending from the buildings of the private residence to the public mains or to underground fuel oil pipes occurring during the period of insurance as a result of an accident.

(A) consequential or indirect loss or damage of any kind or description whatsoever other than loss of rent if specifically insured

20. Accidental Damage The Company will indemnify the insured for accidental damage to contents insured whilst inside buildings or on the premises limited to R10 000 (ten thousand rand) per event.

(B) loss or damage resulting from total or partial cessation of work or the retarding or interruption or cessation of any process or operation

Exceptions

(C) loss or damage occasioned by permanent or temporary dispossession resulting from confiscation, commandeering or requisition by any lawfully constituted authority

(A) loss or damage which is payable under the insured events and extensions of the policy.

(D) loss or damage related to or caused by any occurrence referred to in General Exception 1.(A) (i), (ii), (iii), (iv), (v) or (vi) or the act of any lawfully established authority in controlling preventing suppressing or in any other way dealing with any such occurrence.

(B) Loss, destruction or damage caused by or resulting from: (i)

wear and tear

(ii)

depreciation

If the Company alleges that by reason of provisos (A), (B), (C) or (D) loss or damage is not covered the burden of proving the contrary shall rest on the insured.

(iii) electrical or mechanical breakdown (iv) rust, mildew, moth, vermin, insects

Exceptions

(v) scratching, denting or chipping (vi) the insured’s own domestic pets (vii) any gradually operating cause (viii) any process of dyeing, cleaning or renovating

The Company will not be liable in respect of 1. loss or damage arising outside the area which constitutes the Republic of South Africa, as defined from time to time. 2. loss of or damage to

(ix) the action of light or atmospheric conditions (x)

(A) motor vehicles trailers watercraft or their accessories whilst in or on the vehicle or craft

confiscation or detention by any process of law

(B) livestock

(C) to musical instruments by breakage of reeds, skins or strings

(C) deeds bonds bills of exchange promissory notes money cheques securities for money stamps documents manuscripts medals or coins except as specifically provided

(D) to firearms (E) to laptop computers and cellular telephones (F) the cost of reproduction of data (G) to video or audio tape cassettes or compact discs (H) to articles of a fragile nature (I) to garden furniture and equipment (J) to sporting equipment

3. theft or attempted theft occurring during any period of unoccupancy of the buildings in excess of 60 (sixty) days of unoccupancy in any period of insurance unless the Company has by endorsement specifically agreed otherwise 4. an amount in excess of one third of the sum insured in total in respect of platinum gold and silver articles, jewellery, watches, furs, photographic equipment, oriental carpets and rugs, and sound reproduction equipment

(K) to over winding of clocks or other mechanical apparatus Safire Signature Policy

Page 7 of 22

updated June 2010


5. Any amount in excess of R8 000 (eight thousand rand) in respect of desktop computers and R14 000 (fourteen thousand rand) in respect of laptop/portable computers, inclusive of software and peripherals.

3. loss or damage arising from wear and tear depreciation rust moth vermin insects larvae any process of cleaning dyeing repairing or restoring gradual deterioration which includes the action of light atmospheric or climatic conditions 4. loss or damage arising from mechanical or electrical breakdown 5. breakage of glass (other than lenses) not due to fire or thieves

ALL RISKS SECTION Loss of or damage to the Property insured by any accident or misfortune whilst in the Situation.

The Situation

6. cash bank notes, currency notes, bonds, coupons, stamps, negotiable instruments, title deeds, manuscripts securities of any kind or travel tickets 7. loss of or damage to photographic and optical equipment whilst the equipment is being used for commercial or professional purposes or expeditions of discovery or research or underwater photography

1. The Republic of South Africa as defined from time to time.

8. loss of or damage to sound or video recording tapes other than by fire or theft and then only for their value as unused material

2. Accompanying the insured anywhere else in the World in the course of temporary visits which do not exceed 6 (six) months.

9. the first R100 (hundred rand) of each and every loss of or damage to the property described in the schedule unless otherwise stated.

Special Conditions

Underinsurance If at the time of any loss or damage the sum insured in respect of any item stated in the schedule to be subject to Average is less than the total value of that item the insured will be considered to be his own Insurer for the excess and must bear a rateable share of the loss or damage.

Extensions 1. Automatic Reinstatement

1. If any item in the schedule is declared to be “Admitted Value” it is agreed that settlement of any claim in respect of the item will be based on the item being of the value specified in the document described and on the date stated following words “Admitted Value”. 2. If any item in the schedule is declared to be “Agreed Value” it is agreed that in the event of a claim for total loss or destruction of the item the Company will pay to the insured the amount specified as the value of that item in the document described following the words “Agreed Value”.

The sum insured where appropriate will not be reduced by the amount of any loss or damage but the insured must pay additional premium on the amount of the loss or damage from the date of its occurrence to the expiry of the period of insurance.

PERSONAL LIABILITY SECTION

2. Groceries and Household Goods If groceries and household goods belonging to the insured being conveyed directly by the insured to or from any place of purchase, repair or renovation are stolen such articles will be deemed to fall within the definition of wearing apparel and personal effects.

Definitions

Applicable if either Houseowners or Householders cover is in force

The Specification 1. All sums which the insured is legally liable to pay for compensation in respect of (A) death of or bodily injury to or illness of any person;

1. The Insured

(B) physical loss of or physical damage to tangible property occurring anywhere in the Republic of South Africa during the period of insurance as a result of an accident.

The insured means the insured named in the schedule and any member of his family normally residing with him.

2. All costs and expenses of litigation

2. Wearing Apparel and Personal Effects The words wearing apparel and personal effects means:

(A) recovered by any claimant against the insured;

(A) wearing apparel excluding furs

(B) incurred with the written consent of the Company in respect of a claim against the insured for compensation to which the indemnity expressed in this section applies.

(B) luggage containers, handbags and briefcases

In the event of the death of the insured the Company will in respect of the liability incurred by the insured indemnify the insured’s personal representatives in the terms of and subject to the limitations of this section provided that the personal representatives must as though they were the insured observe fulfil and be subject to the terms exceptions and conditions of the policy insofar as they can apply.

(C) sporting equipment but excluding pedal cycles, motor vehicles, trailers, hang-gliders, aircraft or water craft (D) watches, jewellery, trinkets and toilet requisites (E) photographic equipment, pocket calculators and binoculars (F) other personal effects generally carried on the person but excluding contact lenses, radios, sound reproduction equipment, firearms and cellphones. Provided that the liability of the Company in respect of any one article or set (other than clothing) will not exceed 25% (twenty five percent) of the sum insured or R1 000 (one thousand rand) whichever is the greater unless admitted on the basis as defined under Special Conditions.

Provided that the amount payable in respect of any one accident or series of accidents arising out of one event will not exceed the Limit of Indemnity specified in the schedule inclusive of all compensation and all costs of litigation and all other costs and expenses.

Extension 1. Wrongful Arrest All sums which the insured is legally liable to pay for compensation or damages in respect of wrongful arrest or alleged wrongful arrest by the insured of any person other than

Exceptions The Company will not be liable in respect of 1. loss or damage arising from detention confiscation destruction or requisition by customs or other officials or authorities 2. The Company will not be liable for property other than fixed motor car radios and fixed sound reproduction equipment from unattended motor vehicles unless the property was concealed in a locked boot or concealed within a locked vehicle and there is violent and forcible entry into the vehicle

Safire Signature Policy

Page 8 of 22

(A) a person under a contract of service or apprenticeship with the insured or; (B) a member of the insured’s family or household which arises out of the insured’s activities as a member of a neighbourhood watch or a block watch group or of a similar voluntary non-profit organisation. Provided that the amount payable for all compensation and damages and all costs and expenses of litigation and all other costs and expenses will not exceed R15 000

updated June 2010


(fifteen thousand rand) in respect of all death injury illness loss and damages sustained during any one period of insurance.

PERSONAL ACCIDENT SECTION

Definition

The Specification

1. The Insured

Bodily injury caused solely by violent accidental external and visible means which injury independently of any other cause is the sole cause of any of the undernoted events:

The insured means the insured named in the schedule and any member of his family normally residing with him.

1. death;

Exceptions General Exception 1. does not apply to this section but the indemnity expressed in this section will not apply to or include: 1. liability assumed by the insured by agreement and which would not have attached in the absence of the agreement

2. total and permanent loss or disablement as specified in the Table of Permanent Disablement; 3. total disablement from engaging in or attending to usual business; 4. partial disablement from engaging in or attending to usual business; will be compensated by the Company in accordance with and subject to the provision of the Table of Permanent Disablement.

2. liability in respect of death of or bodily injury to or illness of any person who is a member of the insured’s family or household

Total and permanent loss includes total and permanent loss of use.

3. liability in respect of death of or bodily injury to or illness of any person under a contract of service or apprenticeship with the insured if the liability is in respect of death bodily injury or illness arising out of and in the course of the employment of the person by the insured other than domestic staff

Events (3) and/or (4) will be deemed to have ceased when the bodily injury which brought about the disablement has been healed or cured as far as is reasonably possible even though some permanent disablement may remain. The Company will pay to the insured, on behalf of such person or his estate, the capital sum stated in the schedule in the event of accidental bodily injury to any such person directly and independently of all other causes resulting within 24 (twenty four) calendar months in death or disability as specified in the schedule.

4. liability in respect of loss of or damage to property belonging to or in the charge or under the control of the insured or of any servant or agent of the insured 5. liability in respect of death bodily injury illness loss or damage caused by or in connection with or arising from (A) the ownership tenure possession or use of any land or buildings by or on behalf of the insured; (B) any profession or business of the insured; (C) the ownership or possession or use by or on behalf of the insured of any mechanically propelled vehicle trailer animal drawn vehicle aircraft or watercraft (other than a row boat surfboard paddle ski sailboard or canoe). 6. (A) compensation for damages in respect of judgements delivered or obtained in the first instance otherwise than by a Court of competent jurisdiction within the area which constitutes the Republic of South Africa as defined from time to time; (B) Costs and expenses of litigation recovered by any claimant from the insured which are not incurred in and recoverable in the area described in 6 (A) above. 7. liability in respect of

Compensation will not be payable 1. for more than one of events (1) and (2) caused by the same occurrence except that as regards event (1) if compensation has been paid or is payable for event (2) the amount will be limited to the sum by which compensation (1) exceeds compensation (2); 2. for Event (1) and (2) unless occurring within twelve months of the happening occurrence; 3. in respect of events (3) or (4) or (3) and (4) combined for any period in excess of 104 (one hundred and four) weeks from the happening of the occurrence; 4. for any specific event where greater compensation is payable for an event which includes the specific event; 5. under this policy in respect of any of the abovementioned events, which is in any way, directly or indirectly caused by or arising or resulting from or traceable to any physical defect or infirmity which existed prior to any occurrence and/or event

(A) death injury illness loss or damage caused by or in connection with or arising from seepage pollution or contamination; (B) the cost of removing nullifying or cleaning up seeping polluting or contaminating substances unless the seepage pollution or contamination is caused by a sudden unintended and unexpected event.

Extensions 1. Disappearance and Exposure Subject to the terms exceptions and conditions of this section: (A) in the event of the disappearance of the insured in circumstances which satisfy the Company that he has sustained bodily injury to which this section applies and that the injury has resulted in the death of that person the Company will presume his death provided that if after the Company has paid the claim he is found to be alive this payment shall be refunded to the Company;

8. liability to punitive exemplary or vindictive damages fines or penalties awarded in any Court; 9. liability for any consequence of war invasion act of foreign enemy hostilities (whether war be declared or not) civil war rebellion revolution insurrection or military or usurped power;

(B) the occurrence includes injury caused by starvation thirst or exposure to the elements directly or indirectly resulting from mishap.

10. costs and expenses incurred subsequent to the date on which the Company has paid or offered to pay either the full amount of the claim or the total amount recoverable in respect of any one occurrence.

2. Double Compensation

Special Condition The Company may in the case of any occurrence pay to the insured the maximum sum payable under this section (but deducting any sum or sums already paid) or any lesser sum for which the claim or claims can be settled and relinquish the conduct of any defence settlement or proceedings and the Company will not be responsible for any damage alleged to have been caused to the insured in consequence of any alleged action or omission of the Company in connection with the defence settlement or proceedings or of the Company relinquishing such conduct.

Subject to the policy providing compensation for events 1, 2 and 3 and the compensation for event 3 being at least 1% (one percent) of that for event 1 then in the event of an accident giving rise to a valid claim for compensation 1 also being the sole and direct cause of the death within 12 (twelve) months of the accident of the spouse of the insured the Company will when settling the claim pay double compensation 1. Provided that (A) there is a minor child who was entirely dependent on the insured and his spouse and (B) the insured spouse and child were at the time of the accident all members of the same household.

Safire Signature Policy

Page 9 of 22

updated June 2010


A proportion assessed by the Company as in the opinion of the Company’s medical advisors is not inconsistent with the above without regard to the insured’s occupation together with all costs and expenses necessarily incurred for artificial aids prostheses medical surgical dental nursing home or hospital treatment (including costs and expenses incurred in emergency transportation or freeing the injured person if trapped or bringing the injured person to a place of safety) and incurred within a period of time 2 (two) years from the date on which the occurrence happened less any amount recoverable from any other source.

Exceptions The General Exceptions do not apply to this section but this insurance will not apply to any occurrence consequent upon: 1. suicide (whether felonious or not) or any attempt thereat or intentional self-injury 2. the insured being in or on or entering into or descending from any aircraft other than a fully licensed passenger-carrying aircraft in which the insured is travelling as a passenger other than as a member of the crew and not for the purpose of undertaking any trade or technical operation in or on the aircraft 3. the insured participating in sports of any kind on snow or ice or professional football or polo on horseback or mountaineering necessitating the use of ropes or motorcycling (whether as a driver or passenger) or racing of any kind involving the use of any power driven vehicle vessel or craft or of yachts (other than on coastal or inland waters) skydiving, bungee jumping or sports or undertakings of a similar kind whereby the insured is intentionally exposed to the risk of death or injury

ELECTRONIC EQUIPMENT SECTION Sub-Section A: Material Damage Defined Events

4. pregnancy or childbirth 5. war invasion act of foreign enemy hostilities (whether war be declared or not) civil war rebellion revolution insurrection or military or usurped power.

Special Conditions General Condition 3. does not apply to this section but the following Special Conditions are included: 1. The insured must give immediate notice to the Company of any change in the insured’s business or habits or pursuits and pay any additional premium that may be required by the Company and before each renewal of the insurance give written notice to the Company of any disease or physical defect or infirmity with which the insured has been or is affected. 2. On the happening of any occurrence for which compensation is payable the insured must employ the services of a registered medical practitioner and undergo any treatment the practitioner deems necessary. 3. The insured as often as required by the Company must submit to medical examination at the Company’s expense. 4. The Company will in the case of the death of the insured be entitled to have a post-mortem examination at its own expense. 5. No assignee will be entitled to any compensation except that payable in respect of death. 6. This section will be subject to revision at the end of the period of the insurance during which the insured attains the age of 75 (seventy five) years.

Table of Permanent Disablement

Compensation Percentage

1.

Total and permanent disablement

100

2.

Total and permanent loss of both hands or feet or one hand and one foot

100

3.

Total and permanent loss of all sight in one eye and total and permanent loss of one hand or one foot

100

4.

Total and permanent loss of all sight in both eyes

100

5.

Total and permanent loss of all sight in one eye

50

6.

Total and permanent loss of hearing or speech

50

7.

Total and permanent loss of hearing in one ear

15

8.

Total and permanent loss of one hand

50

9.

Total and permanent loss of arm from shoulder

75

10. Total and permanent loss of forearm

65

11. Total and permanent loss of one foot

50

12. Total and permanent loss of thigh

75

13. Total and permanent loss of leg at or below knee

65

14. Total and permanent loss of thumb (both phalanges)

25

15. Total and permanent loss of thumb (one phalanx)

10

16. Total and permanent loss of index finger (three phalanges)

10

17. Total and permanent loss of index finger (two phalanges)

8

18. Total and permanent loss of index finger (one phalanx)

4

19. Total and permanent loss of finger other than thumb or index finger

5

20. Total and permanent loss of great toe

5

21. Total and permanent loss of any other toe

1

Safire Signature Policy

Physical loss of or damage to the property insured described in the schedule from any cause not hereinafter excluded whilst 1. at work or at rest anywhere within that part of the building occupied by the insured at the insured premises described in the schedule; 2. in transit including loading and unloading or whilst temporarily stored at any premises en route; 3. temporarily removed from that part of the building occupied by the insured at the insured premises described in the schedule to any other building.

Exception to Sub-section A The Company will not be liable to indemnify the insured irrespective of the original cause in respect of: 1. the first amount payable as stated in the schedule in respect of subsection A of each and every event giving rise to a claim. Where more than one item of property insured suffers physical loss or damage in any one event the first amount payable shall be the highest single amount applicable to such property insured 2. derangement unless accompanied by physical damage otherwise covered by this section 3. loss or damage recoverable under the terms of any maintenance and/or leasing agreement effected by or on behalf of the insured covering the insured equipment 4. faults or defects known to the insured (or their responsible employees) at the time this insurance was arranged or during the currency of the insurance and not disclosed to the Company or any consequences thereof 5. wastage of material or the like or wearing out of any part of the property insured caused by or naturally resulting from ordinary usage or working or other gradual deterioration, development of poor contacts or scratching of painted or polished surfaces of a cosmetic nature 6. parts having a short life such as (but not limited to) bulbs, valves, contacts, X-Ray tubes, cathode ray tubes, thermionic emission tubes, fuses and sacrificial buffer circuits. If such parts are damaged as a result of physical loss or damage as provided for by this sub-section to other parts of the property insured, the Company shall indemnify the insured for the residual value prior to the loss of such exchangeable parts 7. the cost of reproducing data and/or programs whether recorded on cards, tapes, discs or otherwise unless specifically provided for in sub-section B hereof 8. loss of use of the property or other consequential loss, damage or liability of whatsoever nature other than losses specifically provided for herein 9. loss by theft or disappearance of the property insured unless accompanied by forcible and violent entry into or exit (or any attempt thereat) from that part of the building occupied by the insured at the insured premises described in the schedule or as a result of theft or any attempt thereat, following violence or threat of violence 10. loss of the property insured by theft during transit or whilst temporarily removed from the insured premises unless identifiable by the insured with a specific incident which has been immediately reported to the police and the Company 11. The Company shall not indemnify the insured for theft of the property insured from any motor vehicle where the property insured has been:

Page 10 of 22

(A) left in the motor vehicle overnight unless the vehicle is housed in a securely locked building and entry to such vehicle or building is accompanied by forcible and violent entry or exit

updated June 2010


(B) contained in a compartment of the motor vehicle which is visible to passers-by provided that (a) and (b) above shall not apply to theft of the property insured where the transport vehicle:-

account in arriving at an indemnifiable amount and the age of the property insured. (A) In respect of property insured not provided for in 2. above, the basis of indemnification shall be

(i) has been hijacked or (ii) has been involved in a road accident or sustains a breakdown and, due to circumstances beyond the control the vehicle crew/driver the property insured is of necessity left unprotected.

The market value of the property insured immediately before the loss or damage. At the option of the Company, the property insured shall be regarded as totally destroyed if the repair costs as defined in 1. above equal or exceed its market value immediately before the damage.

Basis of Indemnification

Definition of Market Value

The indemnity by this sub-section subject always to the sums insured contained in the schedule or any specific limit contained in this subsection shall be as hereinafter provided and as appropriate, including dismantling, re-erection, transportation, removal of damaged property insured (but less the value of the remains) and, where applicable importation duties and value added tax.

The current day purchase price of second-hand/used property of equal performance and/or capacity to the property lost or damaged and of substantially similar condition. Where no similar property is available market value shall be calculated by deducting from the current new replacement value of the nearest equivalent property an amount representing

1. Partial Loss

(A) 20% (twenty percent) for the first year after the date of purchase and

If the property insured suffers damage that can be repaired, the basis of indemnification shall be the restoration expenses reasonably and necessarily incurred to restore the damaged property to working order provided that

(B) 10% (ten percent) per year for each succeeding year subject always to a minimum indemnity of 40% (forty percent) of the current new replacement value of the nearest equivalent property.

(A) the value of damaged parts which can be used will be deducted;

Definition of New Replacement Value

(B) the costs of any alteration, addition, improvement or overhaul carried out at the time of repair are not recoverable under this sub-section;

New replacement value shall be the cost at which the Company’s computer equipment supplier, or at the discretion of the Company such other supplier, would sell such equipment in the normal course of its business.

(C) if, without the consent of the Company, temporary repairs are carried out by the insured in the interests of safety or to minimize further loss or damage to the property insured, the cost of such temporary repairs will be borne by the Company. In the event that the temporary repairs aggravate the loss or cause additional loss or damage to the property insured any additional costs so incurred or consequence arising therefrom will be for the account of the insured;

Average In respect of 1. and 2. above, if at the time of repair, replacement or reinstatement, the sum representing the cost which would have been incurred in repair, replacement or reinstatement if the whole of the property insured had been lost or damaged exceeds the sum insured thereon at the time of any loss of or damage to such property, then the insured shall be considered as being their own insurer for the difference and shall bear a rateable proportion of the loss or damage accordingly. Each item of this section (if more than one) to which these conditions apply shall be separately subject to this provision.

(D) where the damage is restricted to a part or parts of an insured item, the Company shall not be liable for an amount greater than the value of such part or parts which are lost or damaged allowed for within the sum insured. 2. Total Loss (Other Than Computer Equipment) (A) In cases where the New Property insured is totally lost or destroyed, the basis of indemnification shall be the cost of replacing or reinstating on the same site new property of equal performance and/or capacity or, if such be impossible, its replacement by new property having the nearest equivalent performance and/or capacity to the property lost or damaged provided always that (i) the work of replacement or reinstatement (which may be carried out upon another site and in any manner suitable to the requirements of the insured, subject to the liability of the Company not being thereby increased) must be commenced and carried out with reasonable despatch otherwise no payment exceeding the market value of the property insured immediately before the damage shall be made; (ii) until expenditure has been incurred by the insured in replacing or reinstating the property insured, the Company shall not be liable for any payment in excess of the amount which would have been payable if these conditions had not been incorporated herein.

Limit of Liability The amount of liability shall not exceed in respect of any of the items specified in the schedule, the sums insured set opposite thereto respectively and, in addition thereto, the following: 1. Architects’ and Other Professional Fees Professional fees necessarily and reasonably incurred in the repair or reinstatement of property following indemnifiable loss or damage, provided that the amount payable in respect of such fees does not exceed 15% (fifteen percent) of the total amount of the claim, but shall not include expenses incurred in connection with the preparation for the insured’s claim. 2. Clearance Costs Costs necessarily and reasonably incurred by the insured in respect of demolition or dismantling of property and/or removal of debris and in providing, erecting and maintaining hoardings and other similar structures required during demolition, dismantling, debris removal and reconstruction following indemnifiable loss of or damage to such property, provided that the total amount recoverable does not exceed 15% (fifteen percent) of the total amount of the claim.

(B) these conditions shall be without force or effect if (i) the insured fails to intimate to the Company within 6 (six) months of the date upon which the damage occurred (or such further time as the Company may in writing allow) his intention to replace or reinstate the property insured; (ii) the insured is unable or unwilling to reinstate the property on the same or another site.

3. Express Delivery and Overtime Extra charges for express delivery, airfreight, overtime, Sunday and holiday rates of wages payable in respect of the necessary and reasonable additional costs incurred by the insured for effecting repairs or replacement approved by the Company, limited to 50% (fifty percent) of the amount which the repair or replacement would have cost had these additional costs not been incurred.

At the sole option of the Company, following commercial and technical appraisal by a representative of the Company, the period referred to in the definition of new property may be extended (on an annual basis from renewal date) subject always to such extension of period being admitted by memorandum to this section.

Definition of New Property Insured (other than computer equipment) New property shall mean property purchased no more than 7 (seven) years (or such extended period as may be approved by the Company in writing) prior to the defined event, it being expressly agreed that in applying this definition upgrades and enhancements will be taken into Safire Signature Policy

Clauses and Extensions 1. Power Surge or Lightning Strikes

Page 11 of 22

All loss or damage to the property insured by power surges or lightning strikes will be subject to an additional first amount payable of 10% (ten percent) of the net amount payable for the items so damaged subject to updated June 2010


a minimum of R1 000 (one thousand rand), but not exceeding R2 000 (two thousand rand) per occurrence. However, should the property insured be appropriately and adequately protected by suitable safeguards against electrical supply fluctuations, then this additional first amount payable will be waived. 2. Fire Brigade Charges If any public authority empowered to do so shall charge the insured with any costs arising from their activities in dealing with the consequences of an insured peril having operated, such costs will be deemed to be damage to the property insured and will be payable in addition to any other payment for which the Company may be liable in terms of this insurance.

accident and ending not later than the expiry of the period detailed in the schedule as the indemnity period after such occurrence. The time excess shall not apply to loss or damage directly caused by fire, storm (excluding lightning), subsidence, wind or the collapse of buildings. 2. Accident (Applicable to increased cost of working only) physical loss of or damage to the property insured described in the schedule from any cause as provided for under sub-section A of this section, liability under which sub-section shall, except for the provisions relating to the first amount payable or the maintenance/lease agreements, be a condition precedent to a liability hereunder.

3. Tenants

(A) Failure of the public supply of electricity at the terminal ends of the service feeders in the premises from any accidental cause other than:

This insurance will not be invalidated by any act or neglect on the part of a tenant of the insured (where the insured owns the building) or another tenant or the owner of the building (where the insured is the tenant) provided that the insured notifies the Company as soon as such act or neglect comes to their knowledge and pays on demand the appropriate additional premium.

(i) the deliberate act of the insured or any supply authority (ii) drought or shortage of fuel at any electricity utility (B) Special conditions applicable to failure of the public supply of electricity:

4. Hire Purchase / Finance Agreements Where the Company has knowledge of the property insured or any individual item thereof being the subject of a suspensive sale or similar agreement, payment hereunder shall be made to the owner described therein whose receipt shall be a full and final discharge to the Company in respect of loss or damage indemnifiable by this sub-section of the section.

(i) The liability of the Company shall not exceed the sum insured by this sub-section. (ii) The indemnity period shall commence 12 (twelve) hours after the failure and end not later than 30 (thirty) days after such failure.

Sub-Section B: Consequential Loss

The Limit of Liability

Defined Events

The liability of the Company shall not exceed the amounts specified in the schedule (relating to sub-section B) in respect of any one accident or series of accidents arising out of or in connection with any one event.

The insurance provided by this sub-section (if stated in the schedule) shall be subject to the limits of indemnity stated in the schedule and shall include

In the event of the payment by the Company of any sum or sums in discharge of the Company’s liability in terms of this sub-section, the sum(s) insured shall automatically be reinstated for the remainder of the current period of insurance.

1. Increased Cost of Working The insurance under this item is limited to the additional expenditure necessarily and reasonably incurred by the insurance during the indemnity period in consequence of the accident for the sole purpose of avoiding or diminishing the interruption of or interference with the normal business of the insured less any sum saved during the indemnity period in respect of such of the charges and expenses of the business as may cease or be reduced in consequence of the accident.

The insured shall pay to the Company additional premium required by the Company calculated pro rata from the day of the accident to the end of the period of insurance.

Specific Exceptions to Sub-Section B Unless specifically provided for

The indemnity by this item shall not apply directly or indirectly to:

1. Fines and Damages

(A) the cover provided for in item 2. of this sub-section

the Company shall not be liable to indemnify the insured in respect of fines or penalties for breach of contract for late or non-completion of orders or any penalties of whatsoever nature.

(B) the intrinsic value (including reinstatement value) of the property insured by sub-section A of this section. 2. Reinstatement of Data / Programs

2. Loss of Profit

Costs and expenses necessarily and reasonably incurred by the insured for the reconstitution or recompilation of data and/or programs recorded on or stored in data-carrying media which are lost as a result of accidental erasure (which shall include the events defined in the indemnity clause to sub-section A of this section) or by theft or by the deliberate, wilful or wanton intention of causing the cancellation or corruption of data or programs as provided for in sub-section A of this section provided that

The Company shall not be liable to indemnify the insured in respect of loss of profit or consequential loss of whatsoever nature unless specifically provided for herein.

Clauses and Extensions 1. Reinstatement Notwithstanding anything to the contrary contained in this sub-section, it is hereby declared and agreed that, in the event of any interruption, following loss or damage, being aggravated by:

(A) the indemnity shall not extend to nor include such costs incurred to program errors, incorrect entry of the inadvertent cancellation or corruption of data and/or programs

(A) the insured being unable or unwilling to replace or reinstate property destroyed or damaged, or failing to carry out such replacement or reinstatement, within a reasonable time, or

(B) in respect of each and every event or series of events arising out of or in connection with one original cause or source indemnifiable by this item, the insured shall bear the amount stated in the schedule as the first amount payable.

(B) addition, alterations or improvements being effected to the property insured on the occasion of its repair,

(C) where the insured elects to insure programs (software), a schedule of such programs shall be lodged with the Company at the commencement of each period of insurance.

Definitions

(C) the Company’s liability under this section, shall be related solely to the business interruption which would have arisen in the absence of (a) and (b). 2. Telkom Access Lines (If Stated in the schedule to Be Included)

1. Indemnity Period The period during which the results of the business shall be affected in consequence of the accident beginning with the number of hours/days detailed in the schedule as the time excess after the occurrence of the Safire Signature Policy

Page 12 of 22

Subject to the limits specified in the schedule, consequential loss as provided for under defined events (i) and (ii) of sub-section B arising from accidental failure of the Telkom access lines is included, provided

updated June 2010


(i) the costs provided for in (A), (B) and (C) above shall be necessarily and reasonably incurred to maintain normal working conditions;

always that the insurance under this extension shall be subject to the special conditions below. Special Conditions Applicable to Telkom Access Lines (A) The liability of the Company shall not exceed the sum insured by this sub-section.

(ii) such additional costs shall be incurred as a direct consequence of indemnifiable loss or damage in terms of sub-section A or B 2 of this section

(B) The indemnity period shall commence 12 (twelve) hours after the failure and end not later than 30 (thirty) days after such failure.

(iii) The cover afforded hereunder shall be restricted to (a) parts or components of the electronic system which are not indemnifiable under sub-section A hereof

(C) The insurance provided does not cover loss occasioned by the deliberate act of any Telkom authority or by the exercise of such Telkom authority of its power to withhold or restrict access to its lines.

(b) programs or data reinstated not indemnifiable under item 2 of subsection B hereof; The indemnity by this extension shall, in respect of any one event, be limited in the aggregate to 20% (twenty percent) of the applicable total sum insured under sub-section A (the limit of indemnity) and sub-section B 2 of R25 000 (twenty five thousand rand), whichever is the lesser.

General Memoranda Memo 1 – Capital Additions and Currency Fluctuations The indemnity by this section shall include: (A) additional equipment or programmes purchased by the insured of a similar nature to that specified in the schedule, provided that, in respect of loss or damage due to electrical, mechanical or electronic breakdown or explosion, the insurance shall only commence after satisfactory completion of installation or commissioning / testing and put into use at the insured’s premises

MOTOR SECTION Sub-Section A: Loss or Damage

(B) provision for devaluation or revaluation of the currency of the Republic of South Africa against that of the country of origin of the property insured and other inflationary trends, which may result in the escalation of the sum insured (representing the installed new replacement value) of the property insured provided that the increase shall not exceed, by more than 25% (twenty five percent), the total sum for sub-section A specified in the schedule, it being agreed that the insured will advise the Company of such alterations after the expiry of each period of insurance and pay the appropriate premium thereon but not exceeding 50% (fifty percent) of the difference.

Defined Events Loss of or damage to any vehicle described in the schedule and its accessories and spare parts whilst thereon. In addition, if such vehicle is disabled by reasons of any loss or damage insured hereby, the Company will pay the reasonable cost of protection and removal to the nearest repairers and the insured may give instructions for repairs to be executed without the previous consent of the Company to the extent of but not exceeding R10 000 (ten thousand rand), provided that a detailed estimate is first obtained and immediately forwarded to the Company. The Company will also pay the reasonable cost of delivery to the insured, after repair of such loss or damage, not exceeding the reasonable cost of transport to the permanent address of the insured in the Republic of South Africa, Namibia, Botswana, Lesotho, Swaziland, Zimbabwe, Mozambique and Malawi provided that

Memo 2 – Prevention of Access If, during the indemnity period, the business at the premises is interrupted or interfered with in consequence of the insured being prevented from having access to the property insured situated at the premises caused by damage to property within a 10km radius of the insured premises as described in the schedule by fire, lightning, explosion, storm, tempest, flood, water inundation, earthquake, or impact by vehicles the Company shall indemnify the insured for loss resulting from such interruption or interference in accordance with the provisions contained herein provided that (C) the insured is not entitled to indemnity as provided for in this extension under any other policy or section of this policy; (D) this section shall not be brought into contribution with any other policy or section of this policy bearing a like extension. Special exception (sub-sections A and B) Viruses, Trojans and Worms The Company shall not indemnify the insured for loss or damage of whatsoever nature arising directly or indirectly out of or in connection with the action of any computer virus, trojan or worm(s) or other similar destructive media.

General Extension 1. Incompatibility Cover (If Stated in the schedule to Be Included) Notwithstanding anything to the contrary contained in the policy, the indemnity by sub-sections A and B of this section shall indemnify the insured for costs incurred in respect of (A) modifications or alterations to the property insured directly consequent upon indemnifiable loss or damage to ensure the operating integrity of the electronic system (B) replacement or upgrading of legal programmes to achieve compatibility with the modified or altered electronic system (C) the restoration of previously captured data which has become inaccessible due to the modifications to or alterations of the electronic system or in consequence of the replacement or upgrading of legal programmes; provided always that

Safire Signature Policy

1. the limit of indemnity for each type of vehicle is as stated in the schedule and shall be the maximum amount payable by the Company in respect of such loss or damage, but shall not exceed the reasonable market value of the vehicle and its accessories and spare parts at the time of such loss or damage; 2. the Company may, at its own option, repair, reinstate or replace such vehicle or any part thereof and / or its accessories and spare parts or may pay in cash the amount of the loss or damage not exceeding the reasonable market value of such vehicle and / or its accessories and / or spare parts at the time of such loss or damage; 3. if, to the knowledge of the Company, the vehicle is the subject of a suspensive sale or similar agreement, such payment shall be made to the owner described therein whose receipt shall be a full and final discharge to the Company in respect of such loss or damage; 4. in respect of each and every occurrence giving rise to a claim (except a claim resulting from fire, lightning or explosion) under this sub-section, the insured shall be responsible for the first amounts payable stated in the schedule (according to the type of vehicle) of any expenditure (or any less expenditure which may be incurred) for which provision is made under this sub-section (including any payment in respect of costs, expenses and fees), and of any expenditure by the Company in the exercise of any discretion it may have under this insurance. If the expenditure incurred by the Company shall include any first amount payable for which the insured is responsible, such amount shall be paid by the insured to the Company forthwith; 5. the Company shall not be liable for more than the amount stated in the schedule (after deduction of the first amounts payable) in respect of the theft or attempted theft of radios, tape players and similar equipment or telephones not supplied by the manufacturers of the vehicle when new.

Exceptions to Sub-section A The Company shall not be liable to pay for: 1. consequential loss as a result of any cause whatsoever, depreciation in value whether arising from repairs following a defined event or otherwise, wear and tear, mechanical, electronic or electrical breakdowns, failures or breakages;

Page 13 of 22

updated June 2010


2. damage to tyres by application of brakes or by road punctures, cuts or bursts;

enclosed passenger carrying compartment of a commercial vehicle with a carrying capacity not exceeding 1500 (one thousand five hundred) kg)

3. damage to springs / shock absorbers due to inequalities of the road or other surface or to impact with such inequalities;

(C) liability arising from the operation, demonstration or use (for purposes other than maintenance or repair of the vehicle) of any tool or plant forming part of or attached to or used in connection with a vehicle or anything manufactured by or contained in any such tool or plant. This exclusion shall not apply to forklift trucks.

4. Loss, damage, cost or expense directly or indirectly arising from permanent or temporary dispossession resulting from detention, confiscation, forfeiture, impounding or requisition legally carried out by Customs, Police Services, Crime Prevention Units or any lawfully constituted officials or authorities.

Limits of Indemnity

Sub-Section B: Liability to Third Parties

Unless otherwise stated, the liability of the Company under this subsection in respect of any one occurrence shall not exceed the limits of indemnity as stated in the schedule.

Defined Events Any accident caused by or through or in connection with any vehicle described in the schedule or in connection with the loading and / or unloading of such vehicle in respect of which the insured and / or any passenger becomes legally liable to pay all sums including claimant’s costs and expenses, subject to the limitation contained in the schedule and this policy in respect of

Sub-Section C: Medical Expenses Defined Events If an occupant in the specified part of a vehicle described below, in direct connection with such vehicle, sustains bodily injury by violent, accidental, external and visible means, the Company will pay to the insured the medical expenses incurred as a result of such injury up to R10 000 (ten thousand rand) per injured occupant but not exceeding R20 000 (twenty thousand rand) in total for all occupants injured as a result of an occurrence or series of occurrences arising out of one event.

1. death of or bodily injury to any person, but excluding death of or bodily injury to any person in the employ of the insured arising from and in the course of such employment or being a member of the same household as the insured 2. damage to property other than property belonging to the insured or held in trust by or in the custody or control of the insured or being conveyed by, loaded onto or unloaded from such vehicle

The amount payable under this sub-section shall be reduced by any amount recoverable under any workmen’s compensation enactment or similar legislation.

3. the Company will also, in terms of and subject to the limitations of and for the purposes of this sub-section: (A) pay all costs and expenses incurred with their written consent, and shall be entitled at their discretion to arrange for representation at any inquest or inquiry in respect of any death which may be the subject of indemnity under this sub-section, or for defending in any magistrate’s court any criminal proceedings in respect of any act causing or relating to any event which may be the subject of indemnity under this sub-section, provided that the total of the Company’s liability under both this extension and sub-section B shall not exceed the limit of indemnity stated to apply to sub-section B in the schedule

The term medical expenses includes any costs incurred to free such injured occupant from such vehicle or to bring such injured occupant to a place where medical treatment can be given. Defined vehicle but only if it is insured under sub-section A of this section

Specified part of vehicle in which injury must occur

1.

Any private type motor car or motorised caravan.

Anywhere inside the vehicle

2.

Any other type of insured vehicle other than a bus or taxi

The permanently enclosed passenger carrying compartment

(B) indemnify any person who is driving or using such vehicle on the insured’s order or with the insured’s permission provided that (i) such person shall, as though he were the insured, observe, fulfill and be subject to the terms, exceptions and conditions of this insurance in so far as they can apply (ii) such person driving such vehicle has not been refused any motor insurance or continuance thereof by any insurer

Definitions 1. Occurrence The term occurrence shall mean an occurrence or series of occurrences arising from one cause in connection with any one vehicle in respect of which indemnity is provided by this insurance.

(iii) indemnity shall not apply in respect of claims made by any member of the same household as such person (iv) such person is not entitled to indemnity under any other policy except in respect of any amount not recoverable thereunder

2. Vehicle

(C) indemnify the insured while personally driving or using any private type motor car not belonging to him and not leased or hired to him under a lease or suspensive sale agreement, provided the insured is an individual and has insured hereunder a vehicle described under definition 2(A) or 2(B) and provided the Company shall not be liable for damage to the vehicle being driven or used (D) indemnify the insured in respect of liability arising from the towing by a vehicle (other than for reward) of any other vehicle or trailer (including liability in connection with the towed vehicle or trailer), provided the Company shall not be liable for damage to the towed vehicle or trailer or to property therein or thereon.

Exceptions to Sub-Section B 1. The Company shall not be liable under this sub-section in respect of (A) so much of any compensation or claim as falls within the scope of any compulsory motor vehicle insurance enactment. This exception shall apply notwithstanding that no insurance under such enactment is in force or has been effected (B) death of or injury to any person being carried in or upon or entering or getting onto or alighting from a vehicle described in definition 2(B), 2(C), 2(D) or 2(E) at the time of the occurrence of the event from which any claim arises (except any person being carried in or upon or entering or getting onto or alighting from a permanently Safire Signature Policy

Page 14 of 22

The term vehicle shall mean: (A) private type motor cars (including station wagons, safari vans, estate cars, light delivery vehicles not exceeding 3 500 (three thousand five hundred) kg in gross vehicle mass and the like or similar vehicles designed to seat not more than 9 (nine) persons including the driver); (B) commercial vehicles and special type vehicles as described in the schedule; (C) motor cycles (including motor scooters and 3 (three) wheeled vehicles); (D) buses (including any vehicle used for business purposes and designed to seat more than 9 (nine) persons, including the driver); (E) trailers, i.e. any vehicle without means of self-propulsion designed to be drawn by a self-propelled vehicle, but excluding any parts or accessories not permanently fitted thereto; any such vehicle being owned by or hired or leased to the insured, including any such vehicle temporarily-operated by the insured as replacement for any vehicle out of use for the purpose of overhaul, upkeep and / or repair provided that the Company’s maximum liability shall not exceed the lesser of the market value of the replacement vehicle or the limit of indemnity of the replaced vehicle as stated in the schedule. No claim rebate provisions (applicable to specified vehicle basis)

updated June 2010


The claim-Free Groups or No Claim Discounts applicable will be established at inception date and/or anniversary date and the reference to “preceding years” means the relevant period of 12 (twelve) consecutive months preceding such dates.

(B) any such person in the event of an accident arising in the course of the business and caused by or through or in connection with any motor vehicle not belonging to him or to the insured or leased or hired by either of them, but only in so far as such person has not been refused any motor insurance or continuance thereof by any insurer provided that

In the event of no claim being made or arising under this policy during a period of insurance specified below immediately preceding the renewal of this policy, the renewal premium for the insurance of the vehicles will be based on the relevant Claim-Free Group or subject to the No Claim Discount as follows:

(i) all the words in (B) of the exceptions to sub-section B are deleted (ii) the Company shall not be liable for loss of or damage to any motor vehicle being used for the purposes and in the manner described in (A) and (B) above

Definition 2(A) Period of Insurance during which no claim is made or arises

Claim-Free Group

the preceding year the preceding two consecutive years the preceding three consecutive years the preceding four consecutive years the preceding five or more consecutive years

1 2 3 4 5

the preceding six or more consecutive years

6

the preceding seven or more consecutive years

7

the preceding eight or more consecutive years

8

the preceding nine or more consecutive years

9

(iii) the payment by the insured of subsidies or travelling allowances to such person for the use of his own vehicle for official purposes of the insured, including the carriage of persons for such purposes, is allowed without prejudice to the insurance by this extension (iv) if, at the time of the occurrence of any accident giving rise to a claim under this extension, the insured or such person is entitled to indemnity under any other policy in respect of the same occurrence, the Company shall not be liable to make any payment hereunder except in respect of any excess beyond the amount payable under such other policy

Otherwise than above, Claim-Free Group 0 applies. Should the insured have a claim on the vehicle stated in the schedule that has earned a reward bonus, the premium will not increase due to the claim, but the rewards bonus will merely reduce by one year with no effect on the premium. If one or more claims are made or arise under this policy during a period of insurance for which the premium is based on Claim-Free Group 4 or 5, then the next renewal premium will be based respectively on Claim-Free Group 2 or 3 and for subsequent renewals as follows (A) Claim-Free Group 4 Period of Insurance during which no claim is made or arises

Claim-Free Group

the preceding year the preceding two consecutive years the preceding three or more consecutive years

3 4 5

(v) the terms exceptions and conditions of the policy shall otherwise apply. 2. Passenger Liability (if stated in the schedule to be included) Exception (B) to sub-section B shall not apply to vehicles described in definition (B), other than special types, or in definitions (C), (D) or (E). The limit of indemnity for any one occurrence shall not exceed the amount stated in the schedule. 3. Unauthorised Passenger Liability (if stated in the schedule to be included) The indemnity under sub-section B, notwithstanding exception (B) thereto, extends to cover the insured’s legal liability for death of or bodily injury to persons while being carried in or upon or entering or getting onto or alighting from any vehicle in contravention of the insured’s instructions to their driver not to carry passengers. The limit of indemnity for any one occurrence shall not exceed the amount stated in the schedule.

Otherwise than above, Claim-Free Group 0 applies.

4. Parking Facilities and Movement of Third Party Vehicles (if stated in the schedule to be included)

(B) Claim-Free Group 5 Period of Insurance during which no claim is made or arises

Claim-Free Group

the preceding year the preceding two consecutive years

4 5

Otherwise than above, Claim-Free Group 0 applies.

This section extends to indemnify the insured in respect of accidents caused by or through or in connection with the moving of any vehicle (not owned or borrowed by or hired or leased to the insured) by any person in the employment of the insured or acting on the insured’s behalf, provided always that such vehicle was being moved

Definitions 2(B) 2(C) 2(D) and 2(E)

(A) with the authority of any tenant, customer or visitor of the insured or

Period of Insurance during which no claim is made or arises

No-Claim Discount

the preceding year the preceding two consecutive years the preceding three consecutive years the preceding four consecutive years

15% 20% 30% 40%

(B) in connection with the insured’s parking arrangements or (C) to facilitate the carrying out of the insured’s business, and provided further that this extension shall not apply in respect of damage to vehicles which are parked for reward. For the purpose of this extension, such vehicle (and its contents) shall not be deemed to be held in trust by, or in the custody or control of, the insured.

Otherwise than above, no discount applies. Should the Company consent to a transfer of interest in this policy, the period during which the interest was in the transferrer shall not accrue to the benefit of the transferee.

5. Windscreen / Glass The provisions of this section relating to first amount payable and No Claim Rebate shall not apply to any payment for damage to windscreen glass, headlights, taillights, side or rear glass forming part of any vehicle provided that:

If more than one vehicle is described in the schedule to this policy, the Claim-Free Group/No Claim Discount shall be applied as if a separate policy had been issued in respect of each such vehicle.

(A) no other damage has been caused to the vehicle giving rise to a claim under the policy;

Extensions

(B) the insured shall be responsible for the first amount payable (applicable to glass) stated in the schedule of each and every loss;

1. Contingent Liability (If stated In the schedule to be included) The indemnity under sub-section B includes claims made against

6. Waiver of Subrogation Rights

(A) the insured in the event of an accident arising in the course of the business and caused by or through or in connection with any motor vehicle not the property of or provided by the insured, while being used by any partner or director or employee of the insured (hereinafter in this extension referred to as such person);

Safire Signature Policy

Page 15 of 22

For the purposes of this section, the Company waives all rights of subrogation or action which they may have or acquire against any other person to whom the indemnity hereunder applies, and each such person shall observe, fulfill and be subject to the terms, exceptions and conditions (both general and specific) of this insurance in so far as they can apply.

updated June 2010


7. Principals

12. Wreckage Removal (if stated in the schedule to be included)

Notwithstanding specific exception 2. of this section, the indemnity under sub-section B extends to indemnify, to the extent required by the conditions of any contract of the Building Industries Federation of South Africa, and in connection with any liability arising from the performance of such contract, any principal named in such contract entered into by the insured for the purposes of the business, provided that the liability of the Company shall not exceed the limit of indemnity stated in the schedule 8. Cross Liabilities

The cover provided under sub-section A of this section is extended to include costs and expenses incurred by the insured in respect of the clearing up and removal of debris and wreckage of any insured vehicle following damage to such vehicle by a defined event, provided that, in addition to the limit of indemnity under sub-section A of this section, the limit of the Company’s liability under this extension shall not exceed, in respect of any one occurrence, the limit stated in the schedule to apply to this extension. 13. Credit Shortfall (if stated in the schedule to be included)

Where more than one insured is named in the schedule, the Company will indemnify each insured separately and not jointly, and any liability arising between such insured shall be treated as though separate policies had been issued to each, provided that the aggregate liability of the Company shall not exceed the limit of indemnity stated in the schedule.

If any total loss settlement under sub-section A is less than the amount owing to the financier under a current instalment sale or lease agreement, the Company will pay to the insured an additional amount equal to the shortfall less: (A) any arrears instalments or rentals including interest payable on such arrears;

9. Riot and Strike (if stated in the schedule to be included)

(B) all refunds of premium for cancellation of any insurance cover relating to the motor vehicle;

Subject otherwise to the terms, conditions, exclusions, exceptions and warranties contained therein, this section is extended to cover loss or damage directly occasioned by or through or in consequence of:

(C) the increased instalments or rentals that would have been paid had there been no residual capital value at the end of the finance period, calculated to the month in which the claim is settled;

(A) civil commotion, labour disturbances, riot, strike or lockout; (B) the act of any lawfully established authority in controlling, preventing, suppressing or in any other way dealing with any occurrence referred to in (A) above;

(D) the first amount payable under sub-section A provided always that (i) the amounts payable shall not exceed the maximum indemnity less the first amount payable under sub-section A

provided that this extension does not cover: (i) loss or damage occurring in the Republic of South Africa and Namibia;

(ii) this endorsement shall not apply to an agreement whereby the amount of any single instalment other than the final residual amount after the initial payment differs by more than 10% (ten percent) from any other instalment

(ii) consequential or indirect loss or damage of any kind or description whatsoever, other than loss of rent if specifically insured;

(iii) if such shortfall is as a result of a re-advance under an instalment sale or refinancing in terms of a lease the insurance by this extension shall be void.

(iii) loss or damage resulting from total or partial cessation of work, or the retarding or interruption or cessation of any process or operation; (iv) loss or damage occasioned by permanent or temporary dispossession resulting from confiscation commandeering or requisition by any lawfully constituted authority;

14. Replacement of a New Vehicle Replacement of the vehicle, which is a car or light delivery vehicle, with a similar new vehicle, provided the vehicle is no older than twelve months after the date of first registration and has not done more than 30 000 (thirty thousand) kilometres. We will replace the vehicle if it is damaged and, in our opinion, it cannot be repaired economically, or if it is stolen and not recovered within a reasonable period.

(v) loss or damage related to or caused by any occurrence referred to in General exception 1.(A)(i), (ii), (iii), (iv) or (v) of this policy or the act of any lawfully established authority in controlling, preventing, suppressing or in any other way dealing with any such occurrence.

This cover will only be applicable if the insured amount for the vehicle is equal to or more than the retail price as stated in the Auto Dealer’s Guide published by Mead and McGrouther.

If the Company alleges that, by reason of provisos (i), (ii), (iii), (iv) or (v), loss or damage is not covered by this section, the burden of proving the contrary shall rest on the insured. 10. Loss of Keys The Company will indemnify the insured in respect of the cost of replacing locks and keys, including the remote alarm controller and, if necessary, the reprogramming of any coded alarm system of any insured vehicle,following upon the disappearance of any key or alarm controller of such vehicle or following upon the insured having reason to believe that any unauthorised person may be in possession of a duplicate of such key or alarm controller. (A) the Company’s liability shall not exceed R5 000 (five thousand rand), in respect of any one event;

Replacement of the vehicle will only take place if a similar new vehicle is available on the local market. 15. Tracking Device In the event of there being an operational tracking system in the vehicle, as described in the schedule and the vehicle is irreparably damaged or unrecovered following theft, the Company will pay to an approved Vehicle Tracking Company the actual cost up to R1 000 (one thousand rand) to install a tracking system on the new vehicle provided that the installation is authorised by the Company. 16. Car Hire (If stated in the schedule to be included)

(B) such amount shall be reduced by an amount payable of R500 (five hundred rand). The provisions of this section relating to first amount payable and No Claim Rebate shall not apply to this extension. 11. Fire Extinguishing Charges Any costs (not exceeding R5 000 (five thousand rand)) relating to the extinguishing or fighting of fire shall be deemed to be damage to the insured property and shall be payable in addition to any other payment for which the Company may be liable in terms of this section, provided the insured is legally liable for such costs and the insured property was in danger from the fire.

The Company will pay compensation limited to R300 (three hundred rand) per day for a vehicle on an unlimited distance basis but excluding the cost of fuel and lubricants: (A) If the vehicle cannot be driven following insured loss or damage; (B) While the vehicle remains unrecovered following theft; (C) The period of hire must commence no later than 30 (thirty) days from the day which: (i) The vehicle was handed to the motor trade for repairs or (ii) The theft of the vehicle is reported to the Company (D) No compensation will be paid: (i) From the day the insured regains possession of the vehicle or (ii) From the day the Company discharges liability for the total loss of the vehicle or

Safire Signature Policy

Page 16 of 22

updated June 2010


(iii) After a maximum period of 30 (thirty) days, whichever occurs first.

2. Third party, fire and theft only limitation (If stated In the schedule to be applicable) The liability of the Company under sub-section A is restricted solely to loss or damage resulting from fire, self-ignition, lightning or explosion or by theft or any attempt thereat. Further, sub-section C and the No-Claim Rebate provisions are cancelled.

Provided that the order for the hire of a vehicle is placed through and authorised by the Company, the insured will be bound by all the terms and conditions imposed by the Car Hire Company. 17. Tow-in Cost and Safeguarding after Mechanical Breakdown The Company will pay the costs for the removal to safeguard the vehicle up to R1 000 (one thousand rand) if the vehicle has a mechanical or electrical breakdown, limited to a single claim during a 12 (twelve) month period of insurance.

Specific Exceptions 1. The Company shall not be liable for any accident, injury, loss, damage or liability (A) whilst the vehicle is being used with the general knowledge and consent of the insured otherwise than in accordance with the description of use clause;

18. Emergency Accommodation The Company will pay all reasonable costs incurred for emergency accommodation for the insured and any passenger travelling with the insured up to R400 (four hundred rand) per person, but not exceeding R2 000 (two thousand rand) per event in any twelve-month period of insurance. The cover is valid for two nights away from home, should the insured be unable to complete the journey, due to loss or damage to the vehicle subject to the loss or damage occurring not less than 250(two hundred and fifty) km from the insured’s private residence. Cover in respect of emergency accommodation will not be covered in respect of mechanical or electrical breakdown.

(B) incurred outside the Republic of South Africa, Namibia, Botswana, Lesotho, Swaziland, Zimbabwe, Mozambique and Malawi but the Company will indemnify the insured against loss of or damage to any vehicle while in transit by sea or air between ports or places in these territories including loading and unloading incidental to such transit; (C) incurred while any vehicle is being driven by: (i) the insured while under the influence of intoxicating liquor or drugs (unless administered by or prescribed by and taken in accordance with the instructions of a member of the medical profession other than himself) or while not licensed to drive such vehicle;

19. Waiver of the Basic first amount payable including windscreen and / or window glass (if stated in the schedule to be included) The basic first amount payable for each and every claim in respect of private type motor cars and LDV’s not exceeding 3 500 (three thousand five hundred) kg GVM is hereby deleted.

(ii) any other person with the general consent of the insured who, to the insured’s knowledge, is under the influence of intoxicating liquor or drugs (unless administered by or prescribed by and taken in accordance with the instructions of a member of the medical profession other than himself) or who is not licensed to drive such vehicle, but this shall not apply if the insured was unaware that the driver was unlicensed and the insured can prove to the satisfaction of the Company that, in the normal course of his business, procedures are in operation to ensure that only licensed drivers are permitted to drive insured vehicles.

20. Trauma Treatment Medical expenses, not covered elsewhere, up to R5 000 (five thousand rand) per event, for trauma treatment by a psychologist, if you, your spouse or your natural, legally adopted or step-children need treatment after hi-jacking or attempted hi-jacking of the vehicle.

Memoranda 1. Premium Adjustment Clause

provided that any driver shall be deemed to be licensed to drive the vehicle if he is complying with the licensing laws relating to any of the territories referred to under Specific exception (B), or if noncompliance with any licensing law is solely because of failure to renew any licence subject to periodic renewal, or if a licence is not required by law, or while such driver is learning to drive and is complying with the laws relating to learners.

If this section is issued on a non-specified vehicle basis, the insured shall submit to the Company at the end of each period of insurance a declaration of the total number of vehicles owned, hired or leased at such expiry date. The Company shall, upon receipt of this declaration, make a premium adjustment of 50% (fifty percent) of the annual rate per vehicle applied to the difference in the number of vehicles at inception or renewal and the number declared.

2. The Company shall not be liable for any claim arising from contractual liability, unless such liability would have attached to the insured notwithstanding such contractual agreement.

2. War Clause In respect of sub-sections B and C only, General exception 1 is deleted and replaced by the following:

Specific Condition

This section does not cover war, invasion, act of foreign enemy , hostilities (whether war be declared or not) civil war, mutiny, insurrection, rebellion, revolution, military or usurped power.

If, during the currency of this section, any driver’s licence in favour of the insured or their authorised driver is endorsed, suspended or cancelled, or if he or they shall be charged or convicted of negligent, reckless or improper driving, notification shall be sent in writing to the Company immediately the insured have knowledge of such fact.

3. Description of Use Clause Use for (A) Social domestic and pleasure purposes (private) and / or

PLEASURE CRAFT SECTION

(B) Use for the business or occupation of the insured including farming, but excluding: hiring, carriage of passengers for hire or carriage of fare paying passengers, racing speed or other contests, rallies, trials, carriage of explosives or carriage of any load or passengers exceeding the capacity for which it is constructed or licensed to carry or use for any purpose in connection with the motor trade. The indemnity to the insured in connection with any vehicle shall operate while such vehicle is in the custody or control of a member of the motor trade for the purpose of its overhaul, upkeep or repair.

Definition For this section vessel means the pleasure craft having a maximum designed speed of 43 (forty three) knots (80 (eighty) km/h) specified in the schedule comprising the hull, superstructure, fittings, machinery, engines, motors, boats, gear and equipment such as would normally be sold as one unit, excluding its trailer, limited to R350 000 (three hundred and fifty thousand rand).

Optional Limitations 1. Third party only limitation (If stated In the schedule to be applicable) Sub-sections A and C and the No-Claim Rebate provisions are cancelled.

Safire Signature Policy

Page 17 of 22

updated June 2010


(B) loss of or damage to property not belonging to the insured or the permitted user;

1. Indemnity (A) If the vessel is lost or damaged following an insured event the Company will at its option indemnify the insured by paying for its repair by a repairer acceptable to them or replacement or the amount of loss or damage less the first amount payable. Repair or replacement will be as close to the original specification as possible but the Company will not be expected to achieve an exact restoration. If the vessel is the subject of an instalment sale or lease agreement any money due to the insured will be used first towards the repayment of the debt under the agreement. The receipt of the owners referred to in the agreement will be a complete discharge to the Company for the repayment.

(C) attempted or actual raising, removal or destruction of the wreck of the vessel or any neglect or failure to raise, remove or destroy the wreck; (D) expenses incurred by the insured with the Company’s prior written consent in connection with official enquiries and coroners inquests; (E) legal costs, incurred with the Company’s prior written consent in defending any action or contesting liability whether or not such action proceeds in the criminal or civil court.

The maximum amount payable will be:

The Company’s liability in respect of this section is limited to R1 000 000 (one million rand) in respect of any one claim or series of claims arising from one event.

(B) the current purchase price of a new vessel of the same or a similar model if the vessel is less than 4 (four) years old; (C) the current market value if the vessel is older than 4 (four) years or the limit of indemnity shown in the schedule whichever is the lower, less the first amount payable. If at the time of loss or damage the cost of replacing the property insured as per (B) and (C) above is greater than the limit of indemnity shown in the schedule the insured will be their own insurer for the difference and will bear a rateable proportion of the loss or damage.

Insured Events

Special Extensions The Company will pay for 1. Sighting Expenses The expense of sighting the underwater section of the hull after grounding, if reasonably incurred specially for that purpose, even if no damage is found. 2. Emergency and Salvage Charges

The insured events are

All charges and expenses (up to 50% (fifty percent) of the sum insured of the item concerned) reasonably and necessarily incurred in minimising or averting a loss which would be covered by this policy.

1. accident; 2. fire, lightning, explosion, earthquake or volcanic eruption; 3. malicious acts;

3. Transit Risks

4. loss of or damage to outboard motor(s) provided that it is securely attached to the vessel;

Any loss or damage following transit by land (including loading and unloading) but excluding scratching and denting and liability to third parties. This section also extends to include claims made by third parties for death, injury or damage arising out of such loading or unloading operations.

5. latent defect in the vessel or the vessel’s machinery; 6. negligence of any person; 7. theft or attempted theft including machinery, outboard motors, gear or equipment if stolen with the vessel or following forcible and violent entry into or exit from the vessel or place of storage.

The Company will not be liable whilst the vessel is: (A) being conveyed by a person who has no valid driver's licence unless the person concerned is charged with the theft or illegal use of the vehicle used for conveying the trailer;

Credit Shortfall If any total loss settlement is less than the amount owing to the financier under a current instalment sale or lease agreement, the Company will pay the insured an additional amount equal to the shortfall less:

(B) under the control of any person who is under the influence of intoxicating liquor or drugs or while the concentration of alcohol in their blood exceeded the statutory limit.

(A) any arrear instalments or rentals including interest payable on such arrears;

4. Yacht Racing Risk The cost of repairing or replacing sails, masts, spars, standing and running rigging lost or damaged by an insured event whilst the vessel is racing, but the Company will only pay a maximum of two-thirds of the sum insured specified in the schedule (as applicable to such items).

(B) all refunds of premium for cancellation of any insurance cover relating to the vessel; (C) the increased instalments or rentals that would have been paid had there been no residual capital value at the end of the finance period, calculated to the month in which the claim is settled;

If the loss or damage is caused by the vessel being stranded, sunk, burnt, on fire, in collision, or in contact with any external substance (ice included) other than water, the Company will pay the repair or replacement costs up to the limit of the sum insured after the deduction of any first amount payable.

(D) the first amount payable; provided always that (i) the amounts payable shall not exceed the maximum indemnity less the first amount payable;

Special exclusion 1 (A) (iv) does not apply to this extension.

(ii) this endorsement shall not apply to an agreement whereby the amount of any single instalment other than the final residual amount after the initial payment differs by more than 10% (ten percent) from any other instalment; (iii) if such shortfall is as a result of a re-advance under an instalment sole or refinancing in terms of a lease the insurance by this extension shall be void.

5. Medical Expenses Bodily injury sustained by any person on board the vessel as a result of an accident up to a maximum of R15 000 (fifteen thousand rand) any one occurrence, if not otherwise insured. 6. Use by Other Persons Any person other than the operator or an employee of an operator of a shipyard, repair yard, slipway, yacht club, marina or vessel sales service or similar operation using the vessel with the insured’s permission will be regarded as the insured provided that person complies with and is subject to the terms of the policy.

Liability to Third Parties The Company will indemnify the insured or any person using the vessel with the insured’s permission or any water skier being towed or preparing to be towed by the insured vessel against all sums including claimants' costs and expenses which the insured shall become legally liable to pay in respect of:

7. Personal Accident Defined Events Bodily injury caused solely by violent accidental external and visible means whilst boarding, aboard or alighting from the insured vessel,

(A) death of or bodily injury to any person other than the insured or other than as specified in special exclusions 2(A) to 2(G);

Safire Signature Policy

Page 18 of 22

updated June 2010


which injury independently of any other cause is the sole cause of any of the undernoted events:

5. No assignee will be entitled to any compensation except that payable in respect of death.

The Company will pay to the insured, on behalf of such person or his estate, the capital sum stated in the schedule in the event of accidental bodily injury to any such person directly and independently of all other causes resulting with 24 (twenty four) calendar months in death or disability as specified in the schedule, limited to R200 000 (two hundred thousand rand) any one occurrence.

6. This section will be subject to revision at the end of the period of the insurance during which the insured person attains the age of 75 (seventy five) years.

Table of Permanent Disablement

(A) Death;

1. 2.

(B) Total and permanent loss or disablement as specified in the Table of Permanent Disablement.

3.

Total and permanent loss includes total and permanent loss of use. Compensation will not be Payable (A) for more than one of events (A) and (B) caused by the same occurrence except that as regards event (A) if compensation has been paid or is payable for event (B) the amount will be limited to the sum by which compensation (A) exceeds compensation (B); (B) for Event (A) and (B) unless occurring within 12 (twelve) months of the happening occurrence; (C) for any specific event where greater compensation is payable for an event which includes the specific event; (D) under this policy in respect of any of the abovementioned events, which is in any way, directly or indirectly caused by or arising or resulting from or traceable to any physical defect or infirmly which existed prior to any occurrence and/or event.

4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21.

Percentage of Capital Sum

Total and permanent disablement Total and permanent loss of both hands or feet or one hand and one foot Total and permanent loss of all sight in one eye and total and permanent loss of one hand or one foot Total and permanent loss of all sight in both eyes Total and permanent loss of all sight in one eye Total and permanent loss of hearing or speech Total and permanent loss of hearing in one ear Total and permanent loss of one hand Total and permanent loss of arm from shoulder Total and permanent loss of forearm Total and permanent loss of one foot Total and permanent loss of thigh Total and permanent loss of leg at or below knee Total and permanent loss of thumb (both phalanges) Total and permanent loss of thumb (one phalanx) Total and permanent loss of index finger (three phalanges) Total and permanent loss of index finger (two phalanges) Total and permanent loss of index finger (one phalanx) Total and permanent loss of finger other than thumb or index finger Total and permanent loss of great toe Total and permanent loss of any other toe

100 100 100 100 50 50 15 50 75 65 50 75 65 25 10 10 8 4 5 5 1

Disappearance and Exposure Extension Definitions

Subject to the terms exceptions and conditions of this section. (A) In the event of the disappearance of an insured person in circumstances which satisfy the Company that he has sustained bodily injury to which this section applies and that the injury has resulted in the death of that person the Company will presume his death provided that if after the Company has paid the claim he is found to be alive this payment shall be refunded to the Company.

1. Wearing Apparel and Personal Effects The words Wearing Apparel and Personal Effects means (A) wearing apparel excluding furs; (B) luggage containers, handbags and briefcases; (C) sporting equipment but excluding pedal cycles, motor vehicles, trailers, hang- gliders, aircraft, watercraft and scuba equipment;

(B) The occurrence includes injury caused by starvation thirst or exposure to the elements directly or indirectly resulting from the mishap.

(D) watches, jewellery, trinkets and toilet requisites; (E) photographic equipment, pocket calculators and binoculars;

Exceptions

(F) other personal effects generally carried on the person but excluding contact lenses, radios, sound reproduction equipment, firearms and cellphones.

The General Exceptions do not apply to this section but this insurance will not apply to any occurrence consequent upon

Provided that the liability of the Company in respect of any one article or set (other than clothing) will not exceed R1 000 (one thousand rand);

(A) suicide (whether felonious or not) or any attempt thereat or intentional self injury; (B) pregnancy or childbirth;

2. Electronic Equipment

(C) war invasion act of foreign enemy hostilities (whether war be declared or not) civil war rebellion revolution insurrection or military or usurped power.

Items of electronic equipment which would be usual to Pleasure Craft.

Special Exclusions

Special Conditions

1. Loss or Damage to Vessel

General Condition 3 does not apply to this section but the following Special Conditions are included

The Company will not be liable for loss of or damage

1. The insured must give immediate notice to the Company of any change in the insured person's business or habits or pursuits and pay any additional premium that may be required by the Company and before each renewal of the insurance give written notice to the Company of any disease or physical defect or infirmity with which the insured person has been or is affected. 2. On the happening of any occurrence for which compensation is payable the insured person must employ the services of a registered medical practioner and undergo any treatment the practitioner deems necessary.

(A) whilst the vessel is (i) being used for any purpose other than private and pleasure; (ii) let out on hire or charter; (iii) being towed on water except (a) when in need of assistance; (b) for customary towage in connection with laying up, fitting out or repairs;

3. The insured person as often as required by the Company must submit to medical examination at the Company's expense.

(iv) towing or salvaging a vessel other than one in distress;

4. The Company will in the case of the death of the insured person be entitled to have a post-mortem examination at its own expense.

(v) towing or salvaging a vessel (whether or not in distress) under a contract arranged prior to commencing towing or salvaging;

Safire Signature Policy

Page 19 of 22

updated June 2010


(vi) participating in racing or speed tests, or any trials in connection therewith;

3. Left Afloat Clause The Company will not be liable for loss of or damage to the vessel or for liability to any third party or for any salvage services caused by the vessel being stranded, swamped, sunk or breaking adrift whilst left moored or anchored unattended off an exposed beach or shore.

(vii) left moored or anchored unattended off an exposed beach or shore and it becomes stranded, sunk, swamped or breaks adrift; (B) due to wear, tear, depreciation, corrosion;

4. Territorial Limits The Company will not be liable for loss, damage, injury or liability caused, sustained or incurred outside the territorial limits of the Republic of South Africa, Botswana, Lesotho, Mozambique, Namibia, Swaziland, Malawi and Zimbabwe. Subject to a maximum cruising range of 12 (twelve) nautical miles from the coast of the Republic of South Africa, Namibia or Mozambique.

(C) due to mechanical or electrical breakdown of machinery, engines, motors, batteries and their connections (other than the shaft and propeller) unless occasioned by external causes not otherwise excluded; (D) to sails or protective coverings split by the wind or blown away whilst set, unless in consequence of damage to the spars to which the sails are bent or occasioned by the vessel being stranded, sunk, burnt, on fire, in collision or in contact with any external substance (ice included) other than water;

5. Competency The Company will not be liable for loss or damage, injury or liability caused, sustained or incurred whilst the vessel is being piloted by any person not competent to pilot such vessel unless under the immediate supervision of a person so competent.

(E) to masts, spars, sails, standing or running rigging whilst the vessel is racing unless such loss or damage is caused by the vessel being stranded, sunk, burnt, on fire, in collision or in contact with any external substance (ice included) other than water; (F) to any part condemned solely because of a fault in design or construction; (G) due to any defect resulting from either negligence or breach of contract in respect of any repair or alteration work; (H) to personal effects, consumable stores, fishing gear or moorings; (I) to the vessel's rudder, propeller, strut shaft, machinery, engines, motors, batteries and their connections caused by collision, with a submerged object; (J) to the vessel if used or occupied as a houseboat or permanent residence; (K) due to fire or explosion to a vessel fitted with inboard machinery unless the vessel is equipped in the engine room or engine space, tank space and galley with an automatic fire extinguishing system or one having controls at the steering position. 2. Liability to Third Parties The Company will not indemnify the insured or the permitted user or water skier against claims resulting from legal liability for (A) death or bodily injury in respect of any person employed in any capacity by the insured or any other person in connection with the vessel or similarly employed by any person using the vessel with the insured’s permission or similarly employed by any water skier; (B) accidents arising from any person engaged in kiting or other airborne sport whilst being towed by the insured vessel or preparing to be towed by the insured vessel or until safely back on board the vessel; (C) accidents arising while the vessel is in transit by mechanically propelled road vehicle, rail, ship or aircraft; (D) death or bodily injury in respect of fare-paying passengers and loss of or damage to their property; (E) damages or penalties arising under contract; (F) fines or other penalties imposed under any statutory code or common law in respect of any offence committed; (G) death or bodily injury to any person operating or employed by the operator of a shipyard, repair yard, slipway, yacht club, marina, sales agency or similar organisation.

Memoranda 1. First Amount Payable In the event of loss of or damage to the vessel by an insured event the insured will be responsible for the first amount payable shown in the schedule. 2. Care of Vessel The insured will take all reasonable steps to protect and maintain the vessel in a proper state of repair and seaworthiness.

Safire Signature Policy

Page 20 of 22

updated June 2010


NOTES

Safire Signature Policy

Page 21 of 22

updated June 2010


NOTES

Safire Signature Policy

Page 22 of 22

updated June 2010


Signature Policy-English