Underwriting Manual - Ammended Tn

7/30/2019 Underwriting Manual - Ammended Tn

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HOME COMBINED POLICY

This policy provides a blanket cover for personal insurance needs, with the exclusion of motor vehicles.This policy is targeted for strictly private dwelling houses and any conversation into a Business entity e.glodges ,suppliers of electrical gadgets may increase the risk eg fire or theft as the supply of electrical

gadgets would attract thieves.

The cover layout is as follows-

Section 1 : Houseowners (Buildings)

Section 2 : Householders (Contents)

Section 3 : Domestic All Risks

Section 4 : Personal Accident

Proposers may select any section they wish with the exception of the All Risks cover which is onlyavailable in conjunction with Householders cover.

Proposal form

This forms the basis of the insurance contract. Information required is simple and straight forward .Themain purpose of a proposal form is to evaluate the risk and either decline or accept.

Intermediaries (Brokers etc) are known to send memorandums as closing instructions and this usuallyleaves out the important information like previous claims, construction/condition of the building, that theproposer would be going on a long holiday soon after taking up the policy etc and it is therefore the duty ofevery underwriter to ensure that all detail is received before cover is granted.

Under Insurance

This usually occurs where the sum insured of the subject matter of insurance is less than its currentreplacement value .In the event of a claim this scenario results in the Insured being financially prejudicedthrough the application of Average therefore it cannot be emphasized too strongly that proposers shouldalways be encouraged to insure for the full value of their property.

It is also very important to review sums insured regularly to ensure adequacy of cover.

Cancellation During First Period

If a policy is cancelled before orduring the first period a refund should be calculated on the basis of pro-rota less 10% provided that the premium retained by the company is not less than 50% of the annualpremium.

Rating and Excesses

Refer to Addendum 01

Credit InsuraCredit Insurance Zimbabwe Limited- Underwriting Manual 1


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SECTION 1 (HOUSEOWNERS)

Cover is for Buildings and this class of Business is profitable because of the low frequency of losses

Risks with the following circumstances are to be referred

1. Unoccupied, temporarily occupied or isolated dwellings.2. Holiday homes eg at Kariba, Msuna, Nyanga etc.3. When proposer is going on holiday soon after the inception of cover.4. When acceptance or renewal of cover has been refused by another insurer.5. Premises of inferior or non-standard construction eg wooden walls.6. Short period risks.

SECTION 2 HOUSEHOLDERS

Introduction

Cover is for the Contents and the sum insured is assumed to cover the insureds movable property at theircurrent replacement cost .

It is important to obtain serial numbers for electronic equipment and other valuable items for ease ofidentification in cases were stolen items have been recovered


1. Unoccupied, temporarily occupied or isolated dwellings.2. Holiday home, eg at Kariba, Msuna, Nyanga etc.3. When the proposer is going on leave soon after the inception of cove.4. Stamp, coin, antique and silver collections.5. When acceptance or renewal of cover has been refused by another insurer.6. Property belonging to persons living in a mess boarding houses, hotels, hostels and similar places.7. Premises of inferior construction eg wooden or asbestos walls.8. When household goods are to be moved into storage shortly after inception of cover.

Discounts for specific types of Security and Approved alarm System


Unoccupancy

Continuous unoccupancy of up to thirty consecutive days allowed but if the premises are to be unoccupiedfor a longer period charge an additional premium of 25% of annual premium for each month or part thereofforthe period in excess of thirty days.



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SECTION 3 - DOMESTIC ALL RISKS

Introduction

This cover is only available as an extension to the householders section and can therefore not be issued inisolation.


1. Photographic equipment for professional or semi-professional persons.2. Glassware, pottery and articles of brittle nature.3. Musical instructions.4. Property of professional entertainers e.g. band and disco equipment.5. For property normally eligible for householders insurance but where no cover in force with the

company.6. Tools7. For specific items on their own where it is known proposer possesses other items not included on

the schedule i.e. spectacles or contact lenses in isolation (selection against the company)

Valuation certificates for any item of jewellery or fur with a value in excess of $ 150 000 000 is required atinception of cover and for any review in the sum insured mid term .

The Make ,Model and Serial numbers for the following items are a requirement

Cellphones

Digital Cameras

Laptops and Palm Tops

Portable Radios

Mp3 Players

Rating and Excess

Refer to addendum 01



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SECTION 4 PERSONAL ACCIDENT

Introduction

Cover is for Death or Bodily injury caused by violent accidental and visible means .

The following Benefits are provided

Death

Permanent Disablement

Medical expenses

Refer to Addendum 01 for the compensation provided on each benefit .

Underwriting

Cover is restricted to proposers in the 16-65 year age group although this can be extended to 70 years

provided the insured produces a satisfactory medical report prior to renewal after attaining 65 years of age.


Where the proposal indicates previous or existing injuries or disabilities which have necessitated surgery orother medical attention e.g. heart failure, broken hip etc.

Undesirable risks

Actors and Entertainers of all types (full or part time)Aircraft Pilots and CrewArmed forces PersonnelBarmanBookmaker (Betting)

Carpenters (using machines)Crop sprayer (Aerial)Demolition ContractorDiversElectricians (working with high voltages)Explosives workersFishermen (Commercial)FiremenHorse Trainer or GroomJockeyMiner, Quarry worker and Underground workerPolicemenProfessional Sportsmen/women/hunters

SawmillerScrap Metal MerchantSteeplejackStructural Steel workerStudentsTree fellerWindow cleaner



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Rating Scale

1.1 BASIS OF RATES

Rates are based upon the proposers occupation and the nature of duties within that occupation.For this purpose it is customary to have a classified list of occupations divided into four classesaccording to the degree of hazard involved.

A specimen division (classification1) of occupations follows but this should only be used as aGeneral guide and not for rating purposes. Classification 2 (see 1.3) should be used for ratingpurposes.

1.2 CLASSIFICATION 1 (NOT FOR RATING PURPOSES)

Where persons use motor vehicles in connection with their occupation or to a large extentprivately (say 25 000 km per annum) they should not be rated less than Class 2.

1.2.1 Class 1

a) Sedentary and Administrative Duties only e.g. Clerks engaged in professional,commercial, Municipal or Government employ, Secretaries and Office Workersgenerally.

b) Members of most Professions e.g. Accountants, Architects, Advocates,Attorneys, Chemists, (Dispensing only) Clergymen, Dentists, MedicalPractitioners, School Teachers, Stockbrokers, Surgeons (not VeterinarySurgeons with outside practice).

c) Other near sedentary occupations not involving manual labour or travelling, noruse of tools, machinery, step ladders or handling of bulky goods e.g. SaleshopCashier, Civil Engineers (Consulting).

1.2.2 Class 2

a) Master Tradesman who only superintend and direct their workers e.g. builders(Superintending only) Engineers (Superintending only) Farmers (Superintendingonly).

b) Shopworkers and Craftsmen using only light tools or mechanical aids e.g.Counter assistant, Bakers (Retail) Greengrocers, Grocers, Tailors.

c) Auctioneers (excluding livestock sales)

1.2.3 Class 3

a) Master tradesmen who work manually but who mainly supervise and controlothers e.g. Master Bakers, Master Builders, Electrical or Mechanical Engineers.

b) Other occupants involving a medium degree of hazard e.g. Auctioneers(Livestock), Farmers (Superintending and working), Licensed Hotel Keepers(excluding Barmen Veterinary Surgeons with outside practice)

1.2.4 Class 4

a) Travellers of all descriptions e.g. Commercial Travellers, ManufacturingRepresentatives, Insurance Representatives, Chauffeurs, drivers.

b) Occupations not listed above which are acceptable to the Company, but notneeding a special loading.



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1.3 CLASSIFICATION 2 (FOR RATING PURPOSES)

In classifying a risk for rating purposes the type of work must be considered rather than theoccupation, for example, an Architect would be eligible for rating as a Class 1 risk if he is solelyon office duties but if he visits the sites of building projects the nature of the risk involved maywell warrant rating under Class 3.

1.3.1 Referable Occupations

Where an occupation is marked Refer new proposals must be referred to theUnderwriting Manager for a decision on rating.

1.3.2 Unacceptable Occupations

Should we come under pressure, either from a Broker or for connectional reasons, toconsider a proposal falling under this heading the matter should be referred to theUnderwriting Manager.

1.3.3 Classification of Occupations

The Classified List of occupations shown on the following is not exhaustive and anyoccupation not listed should be considered and classified on the basis of any similaroccupation which is listed. In the event of any doubt reference should be made to theUnderwriting Manager.

Rating


Extensions

For deletion of rugby, football and motor cycling exceptions in each case add 50% of premium.



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MOTOR VEHICLE POLICY

Motor vehicle insurance serves two purposes ,namely the need to meet statutory requirements and tosafeguard a Motor vehicle against loss or damage .

The covers offered are

Full Third Party

This policy combines the minimum cover which was referred to as the Road Traffic Act ,which is theminimum requirement stipulated by an Act of Parliament to use a vehicle on public roads. It also coversThird party property Damage and Bodily injury/ Death for the limit that would have been chosen by theproposer

A third party is defined as an individual not party to an insurance contract between the insured person and

the Insurance Company .

Rating guide

Refer to the current Insurance council rating schedule .

Full Third Party Fire and Theft or Fire and Theft

This is an extension of the Full Third Party and in addition of the covers mentioned above it covers

-Loss of or damage to the motor vehicle resulting from self-ignition, lightning or explosion or by theft orany attempt thereof

Comprehensive Cover or Full Cover

This represents the widest cover and incorporates Full third Party ,Fire and Theft . It further extents tocover the following

- Damage to the insureds own vehicle- Medical and Funeral expenses- Towing of Disabled vehicles- Legal practitioners fees- Costs of protecting and removing the vehicle to the nearest repairer

Classes of Vehicles /Insurance

Private Motor vehicles

This is the most common type and constitute the majority of vehicles on the road.

A private vehicle refers to any type of passenger vehicle were the seating capacity does not exceed 8including the driver and a mass not exceeding one and a half tones (1400 kgs) in weight .

Commercial Vehicles



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Mainly designed for business entities in such lines of business like Haulage and deliveries . This classexcludes vehicles used for the carriage of passengers for hire or reward such as commuter omnibuses ,taxisand conventional buses .

Examples in this class include

-Freightliners-Tankers-International Horses-Mazda T3500

Motor Cycles

Cover is for motor cycles ,scooters ,and motor assisted pedal cycles .

Fleets

This is not an over the counter insurance and a brief summary of this product is as follows

The policy is designed to cover a group of vehicles which are not necessarily of the same type but which

are owned hired or leased by the same person or organization or subsidiary organizations or associatecompanies . The minimum size to qualify for a fleet is 20 Vehicles and above

Proposal Form

A proposal form must be completed in order to have a full assement of the risk . Some of the importantinformation that will be requested is as follows

-Occupation or trade of the proposer-Vehicle details-Vehicle use-Name of previous insurer and details of No Claims Discount

Cover Notes

Confirms existence of some form of insurance . It should only be issued to a person after they have paidtheir premiums

Covernotes should not be backdated and the time of issuance should always be noted in the relevant field .They should be valid for the period of insurance paid for .

Rating and Excesses

Refer to addendum 01



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MULTI PERILPOLICY

Cover is provided as follows:

Section 1 FireSection 2 Business Interruption (including Accounts Receivable if required)Section 3 All RisksSection 4 TheftSection 5 MoneySection 6 GlassSection 7 Goods in TransitSection 8 Public Liability

Any section may be selected with a condition that section 2-8 must be taken in conjuction with section 1

It is important that the full name of the proposer or the registered name of the company and the occupationbe shown on the proposal form.



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SECTION 1 FIRE

INTRODUCTION

This is a desirable class of business and is traditionally very profitable.

Cover Provided:

The policy provides cover for fire lighting and fire following explosion only but can be extended to coverany of the following perils

1. Earthquake2. Explosion3. Riot and Strike and Malicious Damage4. Storm and Special Perils5. Spontaneous Combustion.

AVERAGE AND UNDER INSURANCE

As the fire policy is subject to average it cannot be emphasized too strongly that proposers should always

be encouraged to insure for the full replacement value of their property and the initial sum insured shouldallow for likely escalation of costs during the ensuing twelve months. Failure to do so is likely to result inthe amount of settlement following a claim being less than the cost of making good the loss. Particularlyin times of high inflation such as we are experiencing in Zimbabwe it is also very important to review andupdate sums insured annually if they are to remain at realistic levels.

FIRE SURVEYS

All fire risks should be surveyed as this gives a guide to rating underwriting and reinsurance retentions. Inmost cases provisional acceptance pending a survey may be given.

RATING

This is controlled by the Fire Tariff but basically the following procedure is used:

1. Refer to the alphabetical index of risks.

2. Having found the class of risk you wish to rate you will be referred to an Annexure which willindicate a minimum and maximum basic rate. This means that you cannot charge less than theminimum basic rate but can charge up to the maximum rate.

3. Having ascertained your basic rate you should now refer to Area Loadings if any loadings apply. .e.g. If you receive a request to give a quotation for an office block situate in Masvingo built of brick

and roofed with thatch you should adopt the following procedure.

Refer O in Annexures and you will find that you must turn to Annexure 12 General and

turningto that Annexure you will find the following:

BASIC RATES

From To

Offices 0.57% 0.76%

Let us assume that you have decided to charge 0.57% you will now refer to page 30 , where you



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will find the undernoted loading

From ToThatch 0.150% 0.20%

Again assuming that you have decided to charge 0.15% -the total rate at this stage is 0.057%

+0.150%_______0.207%=======

If you now turn to page 32 you will find that Masvingo is classified as Area 2 for which noloading

is to be charged.

The final rate is therefore 0.207%

Please note that there are also loadings for inferior construction, deletion of the inflammableliquids warranty etc.

For the rating of earthquake explosion riot and spontaneous combustion please refer to therelevant

section of the manual insofar as storm and special perils are concerned the following rates apply:

Cities - 050%Towns - 075%Other Areas - 100%Discounts are available from magnitude and religious bodies.

Risks with the following circumstances should be reffered

1. Unoccupied buildings

2. Thatched risks3. Premises of inferior or non-standard construction e.g. wooden or asbestos walls4. Short period risks5. When acceptance or renewal of cover has been refused by another insurer6. When the proposal discloses any adverse features or previous losses.



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SECTION 2 BUSINESS INTERRUPTION (B.I.)

INTRODUCTION

The underwriting of this class of business is very involved and all cases must be referred to anUnderwriting Manager. Please note that we do not accept B.I. unless we are also offered thecorresponding fire insurance.

Cover Provided

As a B.I. policy provides that cover is only operative if there is a corresponding fire policy underwhich liability has been admitted it is essential that the B.I. policy covers the same perils asinsured under the proposers fire policy. Certain extensions such as prevention of access are alsoavailable, please read the policy for our standard extensions.

As you will appreciate a fire not only destroys property but also interrupts business. B.I. or Lossof Profits insurance covers the resultant loss of profit that would have been earned had the fire notoccurred. B.I. can also be extended to cover the other perils covered under the Fire Section.

The loss is measured over the period of time (Indemnity Period) during which the business suffers

the effect of the fire. Provided the sum insured on Gross Profit is sufficient and the IndemnityPeriod selected is long enough the Insured should after a loss end up with the same gross profitthat would have been earned had the fire not taken place.

The schedule caters for two alternative methods of calculating the Gross Profit.

Average and Under-Insurance

As the policy is subject to Average it is essential that the proposer be encouraged to insure for arealistic gross profit figure which will take into account any future increase in the turnover of thebusiness. Provision is made for a return premium if the figure is in excess of the actual GrossProfit at the year end.

RATING

The rating follows that of the fire policy a percentage of the rate being charged in accordance withthe Indemnity Period selected as follows:

Indemnity Period % Of Fire Rate

3 months 40%6 months 60%12 months 100%

The indemnity period has a direct bearing to the policy period as follows-

Policy Period Indemnity period allowed

12 Months 6 Months6 Months 3 Months3 Months 1.5 Months

The maximum indemnity period is 6 Months



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SECTION 3 ALL RISKS

INTRODUCTION

As the cover granted is very wide and the claims experience generally unsatisfactory cover for thissection but is only available when supported by more desirable classes of business.

UNDESIRABLE RISKS TO BE REFERRED

1. Computers which should be covered under an Electronic Equipment Policy2. Professional photographers and musicians equipment3. Property insurable by a Goods in Transit policy4. Stock in Trade5. Travellers samples6. Workers tools7. Short period insurance8. Property insurable under a Money policy9. Articles usually left in motor vehicles.



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SECTION 4 THEFT

CoverTheft where violent and forcible entry or exit is involved.

UNDERWRITINGa) All risks are to be surveyed before acceptance an cover can only be granted if the survey

reveals that the protections are such that the property is physically secure having regardto locality nature value of contents structure and previous claims history.It is essential that surveys are carried out as a matter of urgency as any undue delay inconfirming cover will result in the business being placed elsewhere.

b) Policies are usually written on a first loss basis if full value cover is required the casemust be referred to Underwriting Manager.

UNDESIRABLE RISKS TO BE REFERRED

Antique dealers, photographic dealers, high tech electrical goods dealers, jewelers, farm stores(other than as part of a full farming account), furriers, gemstones dealers, pawn brokers property

in the open or in substandard buildings secondhand goods stamp dealers and watchmakers.

RATING SCALEEach premises should be surveyed and rated individually.

Premiums are to be computed by reference to the following class classification and rating table:

CLASS CLASSIFICATION

Artists Supplies ABakers ABooks ABoots and Shoes C

Bottle Stores DBuilders Merchants CButchers ACarpets BChina BChurches/Church Halls CClubs DConfectioners ACurios CCycles and Spares BDairy Products ADressmakers CDrycleaners D

Electrical Goods DFancy Goods BFlorists AGames BGarden Suppliers AGeneral Dealers BGlassware BHardware CIronmongers CKitchenware B



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Leather Goods CMotor Spares DMusical Instruments AOffices BOutfitters DPharmaceutical Chemists CPharmaceutical Products BPicture Dealers APrinters BProfessional Rooms BRestaurants ASchools ASoft Furnishings CSports Goods DStationers DTailors CToys B

RATING TABLE

The rates quoted below are for first class risks and if protections, locality or the like are not up tostandard discretion must be used and the rates loaded accordingly:

First Loss

Limits Class A Class B Class C Class D

10 000 to 50 000 5% 7.5% 10% 12.5%50 001 to 100 000 5% 7.25% 10% 12.5%100 001 to 150 000 5% 7.00% 9.85% 12.00%150 001 to 200 000 5% 6.95% 9.70% 11.95%200 001 to 250 000 5% 6.75% 9.55% 11.85%250 001 to 300 000 5% 6.55% 9.40% 11.70%

N.B. Burglary/Theft Policies are usually written on a first loss basis. If full value cover isrequired the case must be referred to the Underwriting Manager.



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SECTION 5 MONEY

INTRODUCTION

Careful consideration must be given to each and every risk bearing in mind the largesums

of money being transported the increasing frequency of thefts and the deterioration incrime classes claims experience.

Cover

All Risks of money loss as defined in the Policy.

UNDERWRITING

Policies are now written on a non-adjustable premium basis the rate per cent beingapplied

to the major liability limit.

Note that if more than one situation is insured under one policy consideration must be

givento how many times the rate should be applied to the major limit.

Requests to include personal accident cover as an extension must be referred. Cover foraccidental injuries to workers on duty is properly provided by personal accident or stated

benefits insurance and the National Social Security Authority.

Our policy excludes losses arising from the dishonesty of employees. This exceptionmust

not be modified because such a contingency is the subject of fidelity guarantee insurance.

Requests to include money stolen from unattended vehicles should be referred to anUnderwriting Manager or above.

RATING

Annual - 2% - 3.5% on major limit. The lower rate is usually applied to highlimits and vice versa.

SEASONAL (TEMPORARY) INCREASES in the major limit are sometimes requestedby

clients. Rate to be applied should be 15% of premium for every 100% increase of thelimit

of liability

For example Major limit = $100 000 000

Rate = 3%Premium = $3 000 000

Seasonal increase for months of November to December = $400 000 000 Additionalpremium

for the seasonal increase should be:

(400 000 000 100 000 000 x 15) 100% x 3 000 000100 000 000 100



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= 3 000 000 @ 45% = $1 350 000

Please note that if more than two temporary increases are requested or if the period of thetemporary increase is more than four (4) months this should be referred to the

UnderwritingManager.



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SECTION 6 GLASS

INTRODUCTION

Note that cover extends beyond mere glass breakage and includes painting and letteringboarding-up or security costs frameworks and window displays.

UNDERWRITING

The practice of measuring and evaluating each item of glass to be insured has largelyfallen

away and has been replaced by the practice of insuring all fixed glass in suitable for useon

either a blanket or an itemised basis and in the interests of accuracy of evaluation it isvery desirable that all glass is measured at the time of risk acceptance.

UNDER-INSURANCE AND AVERAGE REPLACEMENTS

This section is subject to an average condition and it is therefore in the policyholdersinterest that the sum insured represents the replacement value of the glass. In the absence

of co-operation by the broker or agent in this respect it will be necessary from time totime at managements discretion to impose a percentage increase in sums insured at aselected renewal date.

RATING

Annual 4% our standard rate for the majority of risks but certain features can merit avariation.

Aspects for the surveyor to note are:-

i) premises on a corner siteii) glass which is fitted to floor level

iii) premises in a busy locality e.g. near a bus or railway stationiv) premises which constitute a heavy risk because of a particular trade

carried on e.g. bar, retail shop e.t.c.



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SECTION 7 GOODS IN TRANSIT

INTRODUCTION

This section has been designed to cover the Insureds merchandise whilst in transit inZimbabwe such as delivery of goods sold. Cover is restricted to transit by motor vehicleor trailer which are owned or under the control or the Insured. If any other means ofconveyance such as rail is used cover can only be granted under a Marine Inland Transitpolicy.

UNDERWRITING

Cover is practically all risks and factors to be considered include the nature of goodscarried the quality of drivers and vehicles and previous accident record.

The property is insured on a limit per vehicle basis which is generally agreed and thepremium is based on that amount.

RATING

Please refer to an Underwriting Manager or above.



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SECTION 8 PUBLIC LIABILITY

INTRODUCTION

Public liability insurance is one of the most challenging and rapidly changing of allclasses of insurance. This is because present day commercial and industrial activitiesare constantly changing using new and untried processes and substances. From suchtechnological development heavy liabilities can arise to the extent of which in some casesis still largely unknown.

Credsure freely transacts public liability insurance but preferably in conjunction withother classes of insurance in the same name.Note that we are not willing to quote for nor to accept as reinsurance inwards the heavierkinds of public liability risk in isolation. The most desirable segment of public liabilityinsurance is where cover is restricted to property owners liability and such risks canstand on their own in our portfolio of liability business.

For those risks which are acceptable to us every effort must be made to secure anadequate premium from inception of cover particularly if a flat premium basis is usedbecause periodic revision of such premiums to recognise inflationary trends is usually

overlooked. Therefore our preference is that where at all possible risks should be ratedon an adjustable element turnover or wage roll and this should be the norm wheneverproduct liability cover is given. We are then afforded the opportunity at each renewaldate of augmenting our premium income on the receipt of a retrospective declaration.This procedure as to premium collection if diligently pursued will ensure that anyinflationary trend in turnover totals and national wage levels is reflected in our premiumreceipts.

SCOPE OF COVER

Our policy indemnifies the Insured up to the limit of indemnity against all sums hebecomes legally liable to pay in the event of accidental injury or damage caused to thirdparties in the course of the business. Note particularly that cover is for the legal liability

of the Insured and not for any moral obligation or responsibility he may be inclined toaccepts.

Our policy incorporates the claims made wording one feature of which is that the limitof indemnity is inclusive of costs and expenses for which we are liable.

POINTS TO NOTE

The operative clause of our policy refers to accidental injury and accidental physicaldamage. The importance attaching to the used of this adjective is outlined below. It ishere emphasized requested to participate by way of reinsurance in another Insurers risk.A non-accidental wording is unacceptable to us.

Accidental Injury

Accidental is defined as unexpected or unintended from the standpoint of the Insured.It is for the Insured his employees and any other person indemnified under the policy toshow that the injury (or damage) was accidental as far as they were concerned bearing inmind it is not intended to indemnify losses arising from deliberate acts or omissions.

Injury is defined to mean bodily injury and includes death and disease. Injury willusually be of a physical nature although in some circumstances nervous shockunaccompanied by any direct physical impact could come within the definition. Non-



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bodily injuries are sometimes referred to as personal injuries and these include suchthings as libel slander false arrest imprisonment or defamation. These are not normallycovered by the policy and any enquiries must be referred to an Underwriting Manager.Our current general attitude is to resist requests for this cover but in the event of problemsarising from important connections the matter should be referred to an UnderwritingManager.

Accidental Damage to Property

Damage to property is defined to include loss of the property. Although property has awide meaning in law including debts copyrights patent and design rights trade marks andtrade names our intention is to cover loss of or damage to material property in aphysical sense only. Thus property has now been defined as material property to makeour intention quite clear.

Cross Liabilities

This is now included in the standard Public and Products Liability policy wording givingsignificant additional cover. Thus where the Insured comprises more than one party careshould be taken in evaluating this additional cover and the policy premium should reflect

the extent of any additional liabilities incurred. In particular it should be noted that thepolicy includes Partner to Partner liability.

However the total amount of indemnity to all such parties does not exceed the limit ofindemnity under the policy.

EXCEPTIONS

The cover granted by the policy is subject to certain exceptions. Comments on some ofthem follows:

Contractual Liability

Our intention is to exclude only those liabilities incurred because of an agreement and forwhich without the agreement there would have been no liability. Occasionally modifiedby endorsement to admit a particular agreement of which we have full details.

Employees

Injury to employees sustained in the course of their employment is not covered becauseliability for such claims is the subject of workers compensation or employers liabilityinsurance. Note that the exclusion applies only to bodily injury.

Defective Design

The policy does not cover the cost of rectifying defective work but any loss or damage as

a result of such defective work would be covered for legal liability.

Defective Design

Defective design and formula relate to the original design of the product and include thedirections for use. If however some mistake is made by an employee who say eithermisreads the basic design or incorrectly labels the product this will be the subject ofindemnity under the policy. This error by the employee may render the productineffective but this in itself is not a valid claim under the policy. The product itself mustcause injury or damage. Our policy does not grant cover for products which fail to



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perform the function for which they are intended but may provide cover for any legalliability for consequential accidental injury or damage.

Vibration Removal of Support

If the owner of land excavates it and this results in the removal or weakening of thesupport of his neighbors property the landowner is usually absolutely liable for theconsequences. The risk envisaged is hazardous and calls for specialist knowledge. Forthis reason it should be underwritten by means of the liability section of a contract workpolicy.

Consequential Loss

Our policy provides an indemnity for any consequential loss which flows directly fromthe injury or damage where liability is established viz. to pay not only for the cost ofrepairing a damaged third motor car but in addition any legitimate hire costs arising fromthe temporary loss of use of the car.

No cover is given for financial loss i.e. liability for losses not flowing directly from injuryor damage for example interference with access to third party premises which have not

themselves been damaged.

PRODUCT LIABILITY

This cover is now incorporated in the policy by the phrase caused by products in theoperative clause. This is a departure from previous practice. The reasons for the changeare:

i) it is an essential aspect of the liability needs of a business;ii) it is increasingly important in todays consumer orientated society;iii) we are adopting a more positive attitude towards this cover and its

inclusion in the policy will be more likely to encourage clients to optfor the cover.

It follows that our field staff and agents should be encouraged to sell products liabilitywherever possible and especially where a manufacturing process is involved.

Definition

Products is defined to mean goods manufactured or processed by the Insured (includingcontainers or packaging and labelling thereof) not in the custody or control of the Insuredand sold or supplied by the Insured in connection with the business from any premises inZimbabwe.

Note that the goods must have been supplied in connection with the business referred toin the policy and from premises within the territorial limits. Injury or damage caused by

products which are still at the Insureds premises is regarded as a general third party risk.

UNDERWRITING

In addition to a completed proposal form a products liability questionnaire should becompleted for all but simple non-hazardous risks.

A physical survey must be carried out to assess both the general liability and the productliability hazards. The survey features to consider are summarised below:



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a) Location city urban or rural. Nature of surrounding structures. Proximity tothoroughfares. Pedestrian access or otherwise.

b) Business its nature extend and period established. Reputation.

c) Wage roll and number of employees this information gives an indication of thesize of risk each employee being a potential perpetrator of an act of negligence.

d) Work away the main risk often lies in this area. Ascertain number and extentof

outside contracts and type of premises on which work is undertaken.

e) Ownership construction and condition age of building. State of maintenance.

f) Nature of use of premises by other occupiers.

g) Dangerous machinery if not adequately fenced and protected the possibility of

2 accidents to visitors is increased. Possible hazards from a tool of tradeextension. Lifting apparatus.

h) Harmful waste products our policy does not cover the gradual or regularemission of effluent or noxious substances. However the sudden accidentaldischarge of effluent or noxious substances would be covered. It is the

possibilityof its escape.

i) Acids gases chemicals and explosives manner and safety or their storage.

j) Special features of hazard railway sidings overhead runways. Adequacy offireexists in cinema halls etc.

RATING

Refer to underwriting Manager



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RISKS INCLUDING PRODUCT LIABILITY

Rates quoted are applied to annual turnover or where marked ** to the annual wage rolland are inclusive of cover for property owners liability (where applicable) premises riskwork away and tenants liability.

All requests for a Losses Occurring policy should be referred to an UnderwritingManager.

Products Durable If ProductsClassification Quickly Products Liability not___________ Consumed _______ Required Deduct

Annual Annual% % %

A ,015 ,020 20B ,025 ,035 25C ,040 ,055 33,333

D ,055 ,075 40E ,100 ,150 50F DECLINE if pressed refer to an Underwriting Manager

Classification of Product/Liability Risks

Abattoirs FAdhesives FAgricultural Chemicals FAgricultural Machinery CAir-conditioning Engineers

FAircraft Maintenance FAmusement Parks FAnimal Feeds FAntique Shops FAsbestos Products FBakers CBall Bearings DBattery Manufacturers DBiscuits CBitumen Emulsion ABoat Builders CBooks and Stationery A

Boots and Shoes BBottle Stores BBreakfast Foods CBreweries CBuilders Merchants DButchers C

Canvas workers A**Carpenters 0.5%Carpet contractors C



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Caterers ECement (No asbestos products) DChemists Dispensing FChemists Retail CChemists Manufacturing & Chemical FChina Glass CChurches See Separate SectionCleaners Dyers CClothing BClubs See Separate SectionCoal Merchants CConcrete Products DConfectioners CCooked Meat/fish ECosmetics FCycle Dealers CDairy Products D**Decorators/Painters 1%Delicatessen DDemolition-Excavation Contractors F

Department Stores CDetergents CDomestic Appliance Manufacturers CDress Shops BDyers Cleaners CElectrical Appliances (No Repairs) CElectrical/Radio AppliancesManufacturers C**Electricians 1%Explosives F

Farmers See Separate SectionFertilizers F

Fish Canners EFishmeal FFlooring Contractors DFlorists AFlour Mills CFruit and Vegetable Canners EFurniture B

Garages (Motor) Separate InternalRisks Policy to be issuedGas Container Manufacturers FGeneral Dealers CGlass Products D

**Glaziers 0.5%Greengrocers BGrocers CGunsmiths D

Hairdressers E(subject to a questionnaire on a staff experience

chemical mixing etc)Halls See Separate SectionHardware C



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Jam Factories EJewelers A**Joiners 0.5%Kitchenware B

Laundries BLeather goods B

Machinery (Industrial) EMargarine/Cooking Fat CMeat Processors and Canners EMenswear BMilk Products DMineral Waters CMotor Spares Manufacturers FMotor Spares Retailers DMotor Garages Separate InternalRisks Policy to be issuedMusical Instruments A

Needlework ANeon Signs EOffices See Separate SectionOffice Machinery BOpticians DOutfitters B**Painters/Decorators 1%Paint Manufacturers DPerfume BPharmaceutical Chemists CPharmaceutical Dispensing FPharmaceutical Products FPhotographic Dealers B

Picture Framers/Dealers APlant Foods F**Plasterers 0.5%**Plumbers 1%Property Owners See Separate Section

Radio equipment CRefrigerators CRestaurants DRiding Schools F**Roofing Contractors 1%Saleshops See separate section

Scaffolding FSchools CSeedmen BSeed Suppliers Bulk Commercial FSewing Machines CShoe Manufacturers B**Shopfitters 0.5%**Sign Erectors/Signwriters 0.5%Soap Manufacturers C



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Sports Equipment C

Sprinkler Engineers FStationers ASupermarkets CSurgical Supplies BSweet Manufacturers C

Tailors BTakeaway Foods DTea Blenders/Packers BTimber Merchants CTinned Preserves Soups EToymakers CTyre Manufacturers/Retreaders FVegetable and Fruit Canners EVegetable Oil Mills CWater Treatment Plant FWeed Killers FWine and Spirits Retail C

Womenswear B**Woodworkers ,5%



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FIRE RATING GUIDE

EXPLOSION

Rating Schedule

Class I. All risks (not) specifically rated elsewhere in this Section or in one of the Annexureswhich can comply with the undernoted Hazardous Goods Warranty.

Hazardous Goods Warranty

Warranted that, except as may be specifically provided herein, no hazardous goods as defined below shallbe kept, stored, deposited or used in or on the premises described in (Item Nos of thispolicy: -

AcetyleneAmmunition (exceeding in value 5% of the value of the contents)Calcium CarbideCarbon BisulphideCelluloid (excluding manufactured articles)ChloratesCollodion Cotton

EtherExplosivesFireworks (exceeding in value 5% of the value of contents)

Inflammable and non-inflammable gas incylinders in excess of 15kg.Liquids giving off inflammable vapour at or under 40oC in excess of 25 litresMagnesiumMetallic (bronze) powdersNapthaNitrates (other than fertilizers)PotassiumSulphur

Provided that this Warranty shall not be deemed to apply to liquid fuel in the tanks of vehicles within thebuilding.

Sum Insured Basic Rates

From To

Up to $1 999 999 ) 0.006% 0.010%) in Zimbabwe



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$2 000 000 to $4 999 999 ) 0.005% 0.010%

$5 000 000 and above world wide 0.003% 0.010%

Class II. All risks (not specifically rated in one of the Annexures to Agreement D) which carry aLoading under sub-section (2) of Section 3 Agreement D for Painting, Enameling,Lacquering and Polishing or under sub-section (3) of Section 3 of Agreement D forStorage of Inflammable Liquid and/or Inflammable Liquid Gas.

Electric Light and Power Stations and Transformer Houses.

Refrigerating and Ice works and Cold Stores

(i) Using only ammonia or freon (Without Temperature Clause)(ii) Using other refrigerants (with Temperature Clause)


From To

Up to $1 999 999 ) 0.013% 0.02%) in Zimbabwe

$2 000 000 to $4 999 999 ) 0.010% 0.02%

$5 000 000 and above world-wide 0.006% 0.02%

Class III. Refrigerating and Ice Works and Cold Stores using refrigerants other than ammonia orfreon (Without Temperature Clause).


From To

Up to $1 999 999 ) 0.02% 0.03%) in Zimbabwe

$2 000 000 to $4 999 999 ) 0.014% 0.03%

$5 000 000 and above 0.010% 0.03%

Class IV. Explosives and Ammunition Magazine


From To

Up to $1 999 999 ) 0.066% 0.1%) in Zimbabwe

$2 000 000 to $4 999 999 ) 0.05% 0.1%

$5 000 000 and above World-wide 0.034% 0.1%



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SPONTANEOUS COMBUSTION

Rating Schedule

Class

I. Dwellings (Private) and all risks falling within the Classification of Risks under Agreement E

(Combined Insurance)

II. All other risks not specifically rated.

Policy Wording

It is not permissible to waive, delete or vary any part of the prescribed wording given below: -

It is hereby declared and agreed that notwithstanding anything herein contained to the contrary theinsurance by (Items ... of) this policy.

Destruction or damage by fire only of or the insured property caused by its own SPONTANEOUSFERMENTATION HEATING OR COMBUSTION.

Provided that:(a) all the conditions of the policy (except as expressly varied herein) shall apply as if they

had been incorporated herein.

NOTE: - If the cover is given by endorsement on a Fire Policy insert the words shall extend toinclude.If the cover is given by issue of a separate policy insert the words cover only.



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EARTHQUAKE

Rating Schedule

Notes:

1. The following rates apply to all risks within Zimbabwe irrespective of construction.2. The Earthquake Fire Risk may only be insured in conjunction with the ordinary Fire Insurance on

the same property.3. The Earthquake Shock Risk may only be insured in conjunction with the Earthquake Fire and the

ordinary Fire Insurance on the same property.

1. Earthquake Fire Risk only

Sum Insured Rate

From To

Up to $1 999 999 ) 0.004% 0.006%

) in Zimbabwe$2 000 000 to $4 999 999 ) 0.003% 0.006%

$5 000 000 and above World-wide 0.002% 0.006%2. Earthquake Shock Risk

Sum Insured Rate

From To

Up to $1 999 999 ) 0.002% 0.003%) in Zimbabwe

$2 000 000 to $4 999 999 ) 0.002% 0.003%

$5 000 000 and above World-wide 0.001% 0.003%



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LOADINGS

(1) Construction FROM TO

External Walls

(a) Metal or asbestos on metal framework or metal bricklined or steel framework filled in with brick 0.015% 0.02%

(b) Metal or asbestos on wooden framework 0.045% 0.06%

(c) Having one or more open sides 0.022% 0.03%

(d) Otherwise than Standard Construction or (a) to (c) above 0.06% 0.08%

Roofs

(e) Wholly or in part of thatch 0.150% 0.20%

(f) As in (e) but laid over concrete or wholly covered with

metal or asbestos 0.105% 0.14%

(g) Otherwise than Standard Construction or (e) to (f) above 0.0155 0.02%

(2) Painting, Enameling, Lacquering and Polishing

Where such processes involve the use of liquids containing oils orspirits giving off inflammable vapour at a temperature of less than40oC the following additional rates apply: -

By means of spraying apparatus Nil Nil

(a) By means of spraying apparatus otherwise than as

described in (a) above

(i) Metal goods only 0.045% 0.06%(ii) Other than Metal Goods 0.06% 0.08%

(b) By means other than spraying(i) Metal Goods only 0.02% 0.026%(ii) Other than Metal Goods 0.03% 0.04%

(c) Drying of goods treated with above liquids by Infra RedLamps, hot water or steam pipes, or electricity, where theelements are entirely enclosed in metal tubes.

(i) Metal Goods only 0.015% 0.02%(ii) Other than Metal Goods 0.02% 0.026%

(d) Drying by artificial heat otherwise than as in (d)(i) Metal Goods only 0.045% 0.06%(ii) Other than Metal Goods 0.075% 0.10%

N.B. (d) or (e) are cumulative with (a), (b) or (c)(3) Storage or Inflammable Liquids and/or Inflammable Liquid Gas



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The storage of 25 litres of liquids giving off inflammable vapour under40oC and/or 400 litres of liquids giving off inflammable vapour between40oC and 90oC and/or 100 kg of inflammable liquified gas is allowedwithout additional charges in all risks unless otherwise stated. Wherequantities in excess of these limits are stored the following additionalwill apply: -

(a) Liquids giving off inflammable vapour under 40oC

(i) Between 25 and 230 litres 0.015% 0.02%(ii) More than 230 litres 0.03% 0.04%

(b) Liquids giving off inflammable vapour between 40oCand 90oC

(i) Between 400 and 2 300 litres 0.007% 0.01%(ii) More than 2 300 litres 0.015% 0.02%

(c) Inflammable Liquified Gas more than 100 Kg 0.03% 0.045

N.B.1. Charges under (a), (b) and (c) are cumulative.N.B.2. For the purpose of this paragraph Paraffin shall be

regarded as giving off inflammable vapour between40oC and 90oC.

N.B.3. Fuel in the tanks of motor vehicles is exempted fromThe application of this section.

(4) Deletion of Electrical Clause

This clause may be omitted on payment of an extra premium at the rate of 0.300% net on the totalvalue of the electrical machines, apparatus, fixtures, fittings and installations belonging to theinsured or for which he is responsible, such value to be separately declared and specified in thePolicy and the minimum extra premium so charged to be $50.00.

Either of the following alternative clauses is to be inserted in such cases:

A. Separate

In consideration of the payment of an additional premium this Policy extends subject toits terms and conditions to indemnify the Insured in respect of loss or damage toelectrical machines, apparatus or any portion of the electrical installation insured byItem of this Policy caused by

(a) fire arising from or occasioned by over-running, excessive pressure, shortcircuiting, arcing, self-heating or leakage of electricity;

(b) direct lightning strike to the electrical machines, apparatus or electricalinstallation or to a building in which they are contained.

Note 1 - The Electricity Clause may be omitted without extra charge in the case of FirePolicies covering Buildings and Contents of Private Dwellings and contents ofFlats, and property insured under Agreement E.

Note 2 - For the extension of the Electrical Clause in respect of Electric Light and/orPower Stations and Transformer Houses see the entries in Annexure 12 toAgreement E.



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Note 3 - The loading of 0.300% re referred to above may be reduced to 0.150% wherethe total sum insured on all property (i.e. not merely that property to which theElectrical Clause relates) in the same interest is in excess of either $2 000 000 inZimbabwe or $5 000 000 World-wide. In this context, in the same interestextends include Subsidiary Companies where the Holding Companys interest isnot less than 50% but does not include Associated Companies.



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AREA LOADINGS

Except for risks ratable under Annexures 2,22 and 35 all Fire basic rates and loadings under this Agreementare subject to the Area Loadings shown below on the situation of the risk in accordance with the followingArea Classification Table.

AREA LOADINGS

Area 2 NilArea 3 10%Area 4 15%Area 5 30%Area 6 50%

AREA CLASSIFICATION TABLE

Note 1 - The respective areas are deemed to be those legally defined for Municipal, Village ManagementBoard or Town ship purposes as at 1st January 1969 (i.e. prior to any incorporation of peri-urbanor other areas into these towns or places on or after that date).

Note 2 - Any town or place not listed falls under Area 6.

AREA 2

Harare, Bulawayo, Gweru, Mutare, Masingo, Kwekwe, Kadoma,

AREA 3

Bindura Rusape Kariba Redcliff Victoria Falls Hwange, Beitbridge,

AREA 4

Plumtree, Kario, Gwanda, Gokwe, All Growth Points

AREA 5

Any town or place on listed under Areas 2 to 4.



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DISCOUNTS

Whilst it is not mandatory it is suggested, for the sake of uniformity, that these discounts be made from thepremium rather than the aggregate rate.

The discounts must not be added together but a separate calculation made for each applicable discount.

1. MAGNITUDE

It is permissible to allow a discount on the grounds of magnitude in connection with risks ratable undercertain Annexures. -

Scale A

(Applicable to Annexures 2 (Section C only), 12,28,31,33,34,35,38)

Sum Insured Discount

$500 000 to $999 999 ) 8%$1 000 000 to $1 499 999 ) in Zimbabwe 15%

$1 500 000 to $1 999 999 ) 20%$2 000 000 and above ) 40%

$5 000 000 and above world-wide 40%

Scale B(Applicable to Annexures 1, 3, 4, 6, 7, 8, 9, 10, 11, 13, 14, 15, 16, 17, 18, 19, 20, 21, 23, 24, 25, 26, 27,29, 30, 32, 36, 37, 39, 40)

Sum Insured Discount

$500 000 and above in Zimbabwe 15%

Note No discount for magnitude is applicable to Annexures 5, 22 or Sections A and B of Annexure 2.

2. PUBLIC AND CHURCH BODIES

Risks coming within the following categories are subject to a discount of 25%.

Government Departments and and/or City and/or Municipal CouncilsGovernment Harbor, Hospital (which include any officially recognizedSchool and Water Boards Town or Village Management Board, HealthAnd/or Provincial Councils Committee or similar local Authority)

and/or Proprietary Railway Companiesand/or Church Properties

and/or those organisations registered in terms of theWelfare Organisations Act, 1966.

Note 1 - It is not permissible to extend this discount to Third Parties even when the Policy concerned iscompleted in the sole name of the Government or of the above Bodies.

Note 2 - Zimbabwe Railways risks are exempted from the scope of this Tariff.



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3. FIRE EXTINGUISHING EQUIPMENT

Discounts may be allowed for the installation of Fire Extinguishing Equipment, Automatic Alarms andAutomatic Sprinkler Installations where these comply with the Regulations of The Automatic SprinklerInspection Bureau. The discounts allowable are those laid down or approved by the said Bureau.

4. LONG TERM AGREEMENTS

Discounts for Long Term Agreements may be allowed.

5. DEDUCTIBLES

Discounts for Deductibles may be granted by the Standing Committee where the sum insured is at least$5 000 000 in Zimbabwe or $10 000 000 worldwide.



38/131

ANNEXURERS



39/131

ANNEXURE 1

ACCUMULATOR MANUFACTURERS

Basic Rates

From ToBitumen case manufactures 0.176%0.22%Rubber case manufacturers See RubberGoodsPlate and separator and/or accumulator assembly (no case making) 0.112%0.14%Dismantlers, repairers and reassemblers 0.200%0.26%Pitch distillers in open 0.24%0.30%

Warranties Loading toDelete

From To

1. Warranted no drying by artificial heat other than steam 0.016%

0.02%2. Warranted no boiler in communication with the factory 0.016%0.02%3. Warranted no pitch distillation is done 0.112%0.14%4. Warranted no power-driven woodworking machines are used per machine 0.024%0.03%5. Warranted no rubber solution is used 0.032%0.04%6. Warranted no acetylene generation is done 0.048%0.06%7. Warranted all waste is swept up and removed from the building daily 0.022%0.028%



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ANNEXURE 2

AGRICULTURE

SECTION A Crops (Excluding Tobacco). SECTION C Miscellaneous .

SECTION B Tobacco buildings and crops. SECTION D Warranties .

SECTION A

CROPS (Excluding Tobacco)

N.B.1. Short period rates are not applicable to any insurances on crops.

N.B.2. The discounts for magnitude under Section 5 of Agreement D do not apply to any insurances oncrops.

N.B.3. Average may be deleted if the following wording is used.

The sum insured hereby and the premium and hereon are provisional only being based upon theInsureds estimate of the value of the whole crop of the aforesaid farm and the Insured undertakesby acceptance of the Policy to declare to the Company at the end of the season the total value ofthe said crop as ascertained by sales and including the value of any portion of the crop retained forown use. If the total value so declared shall be either greater or less than the estimated figure onwhich the premium has been paid the difference in premium shall be paid by or refunded to theInsured as the case may be. Provided that if a claim shall have been made under this Policy theamount paid or payable in respect thereof shall be included in such declaration. Provided furtherthat the limit of liability in respect of any one claim shall not exceed the sum insured hereby.

1. Including growing risk Basic Rates

Not exceeding 4 months Exceeding 4months

But notexceeding

12 months

(a) Maize On first $100 000 0.5% 0.6%On $100 000 to $200 000 0.42% 0.52%On $200 000 to $200 000 0.34% 0.44%On $300 000 to $400 000 0.28% 0.4%On $400 000 to $500 000 0.26% 0.36%

(b) Wheat, Barley, Oats

Any period not exceeding 12 months 0.4%

(c) SorghumAny period not exceeding 12 months subject to Warranty 7 0.4%

(d) Sugar CaneAny period not exceeding 12 months 0.22%



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(e) CottonAny period not exceeding 12 months subject to Warranties 1,5,7,

On first $10 000 0.38%On $10 001 to $20 000 0.3%On excess of $20 000 0.22%

(f) Coffee BeansAny period not exceeding 12 months subject to Warranties 1,7,8 0.l4%

(g) Coffee Trees (Excluding Coffee Nurseries)Subject to Warranty 1. 0.14%

(h) Tea BushesSubject to Warranty 1 0.14%

(i) Other Crops Refer to Standing Committee

Policy Wording

On Maize (or insert the crop to be insured), the property of the Insured only farm lands, whether growing,standing, cut or picked and produce derived therefrom whilst in the open and/or in any building on theInsureds farm known as . And/orwhilst in transit until final delivery to Buyers and/or Agents premises in Zimbabwe.

2. Excluding growing risk BasicRates(a) Coffee Beans

Subject to Warranties 1,7,8 0.14%

(b) GroundnutsSubject to Warranties 1,6,7 On first $10 000 0.24%

On $10 001 to $20 000 0.20%On excess of $20 000 0.16%

(c) CottonSubject to Warranties 1,5,7. On first $10 000 0.20%

On $10 001 to $20 000 0.16%On excess of $20 000 0.12%

(d) Tobacco Leaf See section B.

(e) Soya Beans

Subject to Warranties 6,7. 0.18%

(f) ChicorySubject of Warranty 1 and to the following: - Warranted that no process

other than drying be carried on. 0.32%

(g) Other crops Refer to Standing Committee

Policy Wording



42/131

On Coffee Beans (or insert the crop to be insured), the property of the Insured only from the time ofreaping or picking whilst in the open and/or in any building on the Insureds farm known as...and/or whilst in transit until delivered to Buyers and/or Agents premises inZimbabwe.

SECTION B

TOBACCO BUILDING AND CROPS

N.B.1. Short period rates are not applicable to any insurance on crops.

N.B.2. The discounts for magnitude under Section 5 of Agreement D do not apply to any insurances ontobacco buildings or crops or other commodities rateable under this Section.

N.B.3. An approved Curing Unit shall be any one of the following:

Apex Steam Curing UnitHasler-Brown Curing SystemReunert & Lenz Tobacco Curing Unit

Spiral Tube Companys Steam Heated Tobacco Curing Unit.

N.B.4. Sums insured on more than one farm in identical ownership under one policy may be accumulatedfor

the purposes of Sections 2(a) and 2(b).

1. Buildings

(a) Tobacco Flue Curing Barns and other buildings used for the processing and/or storage ofVirginia Tobacco communicating therewith or separated therefrom by less than 6 metres

BasicRates

(i) Subject to Warranty 9 0.6%

(ii) Subject to Warranties 9,11 0.3%

(iii) Subject to Warranty 10 0.12%

(b) Tobacco Air Curing Barns and other buildings used for theprocessing and/or storage of Burley Tobacco communicatingtherewith or separated therefrom by less than 6 metres.

Subject to Warranty 10 0.30%

(c) All other buildings detached from the above by more than 6 metresand used for the processing and/or storage of Tobacco.


2. Tobacco Leaf

(a) On the basis of Policy Wording 1 (Full Field to Floor)

(i) With Approved Curing Units (Subject to Warranties 9,11)



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BasicRates

(ii) Without Approved Curing Units (Subject to Warranty 9)


(iii) Air Cured in Barns


(iv) Air Cured in openSubject to Warranty 10 0.14%

(b) On the basis of Policy Wording 2 (Full Field to Floor with partApproved Curing Units).

Where only some of the Insureds barns have an Approved Curing Unit theprovisional premium shall be calculated as follows but the actual premiumshall be calculated on the declared sums insured according to the ratesapplicable under (a) (I) and (a) (ii) above.Subject to Warranty 9 (No Smoke Curing)


Without Warranty 9 (With Smoke Curing)


The Form of Declaration to be used is as follows: -

Declaration under Policy No ..

(a) Total Gross Sales $.

(b) (i) Weight of all the Tobacco cured in barns providedwith .. curing unit, .. kg.

(ii) Weight of all the Tobacco cured in the remainingbarns kg.



44/131

I/We hereby declare that the statement as set forth above representsthe actual gross sales and weights of all Virginia Tobacco Leaf grownon Farm/Farms district of during the 19/Season.

(c) On the basis of Policy wording 3 (Field to Floor excluding Barn Risk andBuildings communicating therewith) 0.14%

Subject to Warranty 12

(d) On the basis of Policy Wording 4 (Field to Floor excluding Barn Risk) 0.22%Subject to Warranty 10

(e) On the basis of Policy Wording 5 (Storage Risk Only excluding Barn Riskand Buildings communicating therewith) 0.12%

(f) On the basis of Policy Wording 6 (Storage Risk Only excluding Barn Risk)Subject to Warranty 10 0.20%



45/131

SECTION

MISCELLANEOUS

N.B.1. Fodder or Eorage shall mean Grass Hay, Oat Hay, Chaff, Straw, Alfalfa andLucerne.

N.B.2. Grain shall include Groundnuts.

N.B.3. There is no loading for construction on Bulk Oil Storage Tanks.

N.B.4. Agricultural Vehicle shall mean any type of tractor or traction engine, any self propelledagricultural implement or any manually assisted agricultural implement used solely foragricultural work or operations incidental thereto.

N.B.5. Grinding and/or cutting of grain, fodder and forage for own use only, i.e. not for sale or reward, isallowed without loading.

BasicRates

FromTo

1. Fruit and Vegetable Processing.

Buildings used for washing, waxing, grading and packing fruit and vegetables,also preserving and processing sheds on farms for fruit and vegetables wherepower does not exceed 4 kw.

Subject to Warranty 3 0.09%0.12%

2. Wineries on Farms.

Wine cellars with maturation, blending and/or fortification of (no extra forDistilling) 0.09%

0.12%

N.B. Storage of spirit for fortification of wine is allowed without loading

3. Farm Stalls.

(a) Selling agricultural produce only 0.24%0.32%

(b) Otherwise 0.27%

0.36%

4. All other Farm Buildings (including Bulk Fuel Storage Tanks) Subject to Warranty 2 0.090%0.12%

5. Implements, Utensils, Farming Requisites and Livestock (not otherwise provided for)

(a) Whilst in the open on any farm. 0.090%0.12%



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(b) Whilst in a specified farm building Same rate asbuilding

(c) Whilst in a specified farm building or buildings and/or whilst in the Apply rate ofhighest open on any farm

rated building.

(d) Whilst in any unspecified farm building or buildings and/or whilst in 0.18%0.24%

the open on any farm or rate of highestrated

buildingwhichever is

higher.(e) Whilst in any buildings and/or in the open and/or whilst in transit

anywhere in Zimbabwe0.225% 0.3%

Basic Rates

From To

6. Agricultural Vehicles and non-mobile Machinery

Whilst moving or in operation or silent in the open or whilst in any buildingAnywhere in Zimbabwe 0.225%0.30%

7. Grain stored in the on farms.

(a) Subject to Warranty 1 0.225%0.30%(b) In tanks or silos 0.06%0.08%

8. Fodder or Forage in the open on farms

(a) Baled subject to Warranty 1 0.450%0.60%

(b) Not baled subject to Warranty 1 0.525%0.70%

Subject to a minimum short term rate of 0.225%

0.30%

9. Fruit or Vegetables in the open on farms.

Subject to Warranty 1 0.90%0.12%

10. Orchards and Vineyards 0.24%0.32%

10



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11. Plantations of Growing Trees (other than Orchards and Vineyards)

A. Full Value - To be specially rated by the Standing committee

B. First Loss Basis To be specially rated by the Growing timberConsortium of the Insurance Council.



48/131

SECTION D

Warranties Loading

to delete

FROM

TO

1. Warranted not within 10 metres of any stacks, stubble or bush

(a) Risk rateable under sub-sections 1(d), 1(e), 1(f), 2(a), 2(b),2(c) of section A 0.075%0.10%

(b) Risks rateable under-section 7 of Section C (Grain in the open) 0.225%0.30% (c) Risks rateable under sub-section 8 of Section C (Fodder or Foragein the open)

(i) Baled 0.09%0.12%

(ii) Not baled 0.075%0.10%

(c) Risks rateable under sub-section 9 of Section C (Fruit orVegetables in the open) 0.135%0.18%

2. Warranted that no drying of mealies by artificial heat be carried on 0.06%0.08%

3. (a) Warranted that no artificial heat other than steam generated outside thebuilding is used 0.022%

0.03%

(b) Warranted that no power other than electric motors with power notexceeding 4 kw in the aggregate is used, there being no powergenerated within the building 0.015%0.02%

(c) Warranted that no ripening, colouring or fumigation be done by

(i) Sulphur burning 0.015%0.02%

(ii) Ethylene Oxide, Acetylene or similar With Warranty 4 0.075%

0.105inflammable gases and Without Warranty 4 0.168%0.20%

(iii) Liquids giving off inflammable vapour under 40oC 0.045%0.06%

(d) It is a condition of this insurance that the Company shall not be liable for loss 0.150%0.2%



49/131

or damage which may be caused by a change of temperature resulting from the of thegrosstotal or partial destruction or disablement by fire of the Refrigerating Plant rate

(e) Warranted that no liquids giving off inflammable vapour under 40oC arestored or used in the building 0.015%

0.02%

*These two loadings are not cumulative.

4. Warranted that the gas installation be installed and kept in accordance with thefollowing regulations:-

(a) The heating of the rooms in which the gas is used shall be by low pressurehot water or low pressure steam pipes or radiators only, fed in either casefrom a boiler external to the rooms in which the gas is used.

(b) No artificial light other than electric light shall be allowed and See 3(c)(ii) above

(i) All lamps shall be flameproof fittings.

(ii) No portable lamps and no flexibles and no plugs or socketsshall be allowed inside the chambers.

(iii) All switches and fuses shall be outside the chamber.

(iv) All electric motors used inside the chamber shall be of flameprooftype and all switch and starting gear connected with it shall be outsidethe chamber.

(c) Smoking and the use of any naked light shall be prohibited in or near the chamber.

(d) Spare cylinders of gas shall be kept in a dry, well ventilated building outsidethe main premises

5. Warranted that no process be carried on. Seeannexure 9

6. Warranted that no process other than shelling be carried on. 0.075%0.10%

7. Warranted that no drying by artificial heat be done.

(a) Coffee and Soya Beans 0.80%0.100%

(b) Cotton Seeannexure 9

(c) Groundnuts Seeannexure 3

8. Warranted that no process be carried on other than pulping, fermenting, drying,packing, husking and grading See

annexure 32



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9. Warranted that no smoke curing be carried on. 0.10%0.15%

10. Warranted that no curing of Tobacco be done in which artificial heat, hot air orsmoke is used without the prior written consent of the Company and payment ofthe additional premium applicable SeeSection B

11. Warranted that, except as otherwise stated, all barns in which curing by artificialheat is carried on are provided with (here insert trade name of curingsystem) ..curing units. See

Section B

12. Warranted that none of the buildings described herein is used for, or communicateswith, a building used for stringing, curing, bulking, grading or storage of tobacco See

Section B



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ANNEXURE 3

BAKERS AND CONFECTIONERS

Basic Rates

FROM TO

1. Bakeries 0.200% 0.250%

2. Biscuits and macaroni factories 0.220% 0.275%

3. Sweet and Chocolate factories 0.180% 0.275%

4. Peanut and Popcorn processors 0.240% 0.300%

Loading toDelete

FROM TOWarranties

1. Warranted no boiler in communication with the factory 0.028% 0.035%

2. Warranted no sugar or starch grinding is done 0.020% 0.025%

3. Warranted no roasting of nuts, beans or grain be done (excluding 4 above) 0.048% 0.069%

4. Warranted no boiling of sugar be done other than by steam 0.040% 0.050%

5. Warranted no fumigation of nuts, grains or beans be done 0.160% 0.200%

6. Warranted no bulk storage of sugar or salt petre within the factory 0.020% 0.025%

7. Warranted not more than sufficient packing and wrapping materials for one

days use are brought in the factory at any one time 0.020% 0.025%

8. Warranted no power-driven woodworking machines are used 0.030% 0.037%per machine

9. Warranted all waste is swept up and removed from the building daily 0.040% 0.050%

Explosion:Where sugar or starch grinding is done rate as Class 11.



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ANNEXURE 4

BRUSH, CANE AND BASKET WORKS

Basic Rates

FROM TO

1. Brush making shops 0.380% 0.475%

2. Handle dipping and spraying sheds only 0.700% 0.875%

3. Spraying sheds only 0.500% 0.625%

4. Woodworking shops only 0.300% 0.375%

5. Upholstery shops only Rate under upholstery

6. fibre preparation only 0.300% 0.375%

7. Cane chair or basket assembly 0.220% 0.275%

Warranties Loading to delete

FROM TO

1. Warranted no power-driven woodworking machines are used 0.024% 0.030%

2. Warranted no spraying or dipping is done 0.08% 0.10%

3. Warranted no boiler in communication with the factory 0.032% 0.04%

4. Warranted no heat process other than by steam 0.048% 0.06%

5. Warranted no heckling or teasing by power is done 0.024% 0.300%

6. Warranted no upholstering is done 0.08% 0.10%

7. Warranted all waste is swept up and remove from the factory daily 0.08% 0.10%

Sprinkler DiscountThe aggregate Fire rate may be discounted by 20% where the premises are sprinklered.



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ANNEXURE 5

BUILDERS RISK

BasicRates

1. Where the sum insured represents the estimated completed value of the building fromthe time that building material is deposited on the site until such time as the buildingis completed, including builders plant, materials and tools on the building site

0.02%

2. Where the sum insured is increased as the building progresses, including builders plant.materials and tools on the building site

0.04%

3. Where the period of contract is expected to exceed 12 months, the sum insured in respectof any one risk or complex shall represent the value of the work which it is estimatedwill have been completed at the end of each year of insurance0.02%

4. In respect of Housing Schemes, it is permissible to give cover for the maximum value ofHouses which it is expected will at any one time be in course of erection and completedbut not handed over0.04%

Notes

1. In the case of annual insurances effected under 1 and 3 above, where the final period ofinsurance repuired is for less than one year, it is permissible to issue a policy at a prorata premium.

2. If any building is occupied or partly occupied prior to completion, the rate to be charged

must be amended to that applicable to the occupation.

Warranties Loadingto delete

1. Warranted that during the currency of this Policy there be on the building site no 0.03%woodworking machines using power in excess of 4 kw any power unit. per machine



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ANNEXURE 6

BUILDING MATERIALS AND CERAMICS

BasicRates

FROMTO

1. Manufacturers of asbestos cement products including tiles, building blocks,sheets, boards and blankets. 0.064%0.08%

2. Burnt brick and tile works, ceramics and pottery works 0.08%0.1%

3. Precast, prestressed concrete manufacturers 0.064%0.08%

4. Cement factories 0.064%

0.08%

5. Plaster ceiling boards and wall boards 0.112%0.14%

6. Stone crushers, marble and slate works and processors of non-hazardousminerals such as Vermiculite, Mica and Kaolin 0.08%0.1%


FROM

TO1. Warranted no lime quenching or slaking is done 0.016%

0.02%

2. Warranted no painting, glazing or varnishing is done 0.032%0.04%

3. Warranted no paper, straw, woodwool or similar combustible materialsare stored within the processing building 0.032%0.04%

4. Warranted no power-driven woodworking machines are used 0.024%0.029%

5. Warranted all combustilbe waste is swept up and removed from thebuilding daily 0.032%

0.04%



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ANNEXURE 7

CHEMICALS AND MINERAL OILS

BasicRates

FROMTO

Manufacturers of chemical compounds, mineral oils and grease, waxes, candles and polishes,insecticides, wood preservatives, bitumen and the like 0.114%

0.18%


FROM

TO

1. Warranted no artificial heat is used in any manufacturing process 0.032%

0.04%

2. Warranted no manufacturing process is carried on involving the useof liquids giving off inflammable vapour:-

(a) Having a flash point under 175oC. 0.048%0.06%

(b) Having a flash point under 50oC. 0.16%0.2%

(c) Having a flash point under 25oC. 0.256%0.32%

Note: The loadings under 2(a) (b) and (c) are not cumulative.

3. Warranted all waste is swept up and removed from the building daily 0.032%0.04%

4. Warranted all electrical equipment is of the flameproof type whereliquids off inflammable vapour under 175oC. are used 0.096%0.12%


per

machine

Sprinkler Discount

The aggregate Fire rate may be discounted by 20% where the premises are sprinklered.

Explosion FROMTO



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Where Warranty 2(c) cannot be complied with 0.029%0.06%

Where Warranty 2(b) cannot be complied with 0.02%0.04%

Otherwise Rate asClass 11.



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ANNEXURE 8

CLOTHING FACTORIES

BasicRates

FROMTO

1. Tailors, Dressmakers and Costumiers workshops (not forming part of a retail shop)

(a) With power not exceeding 1.5 kw 0.100%0.12%

(b) Otherwise 0.12%0.16%

2. Factories for the manufacture of clothing, hosiery and knitted garments 0.12%0.16%

3. Manufacturing Milliners and Furriers 0.17%0.22%

4. Hood manufacturers 0.22%0.28%

5. Block-making only 0.24%0.30%

6. Stiffening and/or Drying and/or Spraying only 0.33%0.42%

7. Leather clothing manufacturers excluding boots and shoes 0.44%0.18%

8. Waterproof clothing manufacturers 0.336%0.42%

Loadingto delete

FROMTO

1. Warranted that all irons are protected by either:

(a) A metal stand at least 25 mm high standing on a incombustible base or

(b) A portion of the ironing table being cut away and replaced by a metal gridhaving a minimum superficial area of at least 0.1m2 or three times the sizeof the iron used, whichever is the greater or

(c) A counter-weight or other similar contrivance which prevents direct contactbetween the idle iron and the table 0.032%

0.04%



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2. Warranted that all switches controlling electrically heated irons are fitted withwarning lights or are of a type where the current is automatically switched offwhen not in use. 0.016%0.02%

3. Warranted no boiler in communication with the factory 0.032%0.04%

4. Warranted that no garment fusing process involving the use of inflammableliquids is carried on 0.032%0.04%

5. Warranted that no brushing or raising is done 0.032%0.04%

6. Warranted that no drying of garments or fabrics be done other than by steam, hotwater apparatus or electricity 0.08%0.1%

7. Warranted that no stiffening be carried on (not applicable to 7 above) 0.8%0.1%

8. Warranted no water-proofing is done 0.92%0.24%


10. Warranted that all waste is swept up and removed from the building daily 0.08%0.1%



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ANNEXURE 9

COTTON

BasicRates

FROMTO

1. Cotton Ginneries and buildings used for bale opening, blowing and mixing

(a) Buildings 0.272%0.34%

(b) Machinery 0.96%1.2%

(c) Stock 4%5%

2. Carding, preparing and spinning 0.24%0.3%

3. Weaving, warping, winding and taping 0.44%0.18%

4. Bleaching and dying 0.112%0.14%

5. Buildings used for storage and grading of seed cotton 0.32%0.4%

6. Baled cotton in the open 0.32%0.4%

7. Cotton and/or cotton seed in the open 0.64%0.8%


FROMTO

1. Warranted no boiler in communication with the ginnery/mill 0.032%0.04%

2. Warranted that all ginning machines are fitted with magnetic separators anddriven with totally enclosed airblast or mechanical conveyors 0.128%0.16%

3. Warranted that all lint fly and other waste is swept up and removed from thebuilding daily 0.08%0.1%



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4. Warranted that no mule spinning be carried on 0.112%0.14%

5. Warranted that, if mule spinning is carried on, the ceiling above the headstockis protected 0.08%

0.1%

6. Warranted that not more than 20 000 mules are used for spinning 0.048%0.06%

per 10000 in excess7. Warranted that not more than 10 jacquard looms are used 0.032%

0.04%

8. Warranted that no healds other than metal be stored 0.32%0.04%

9. Warranted no singeing is done 0.336%0.42%

10. Warranted that no raising is done other than by teasles 0.032%0.04%

11. Warranted that no flannelette finishing is done 0.24%0.3%

12. Warranted that all irons are protected by either

(a) a metal stand at least 25mm high standing on an incombustible base, or

(b) a portion of the ironing table being cut away and replaced by metal gridhaving a minimum superficial area of 0.2m2 or three times the size of theiron used, whichever is the greater, or

(c) a counterweight or other contrivance which prevents direct contactbetween the idle iron and the table 0.032%

0.04%

13. Warranted that all switches controlling electricity heated irons are fitted with warninglights or are of a type where the current is automatically switched off when not in use 0.016%

0.02%

Note: The loadings under Warranties 4 and 5 cumulative.

Sprinkler Discount

The aggregate Fire rate may be discounted by 20% where the premises are sprinklered.



61/131

ANNEXURE 10

DAIRY PRODUCE

Basic Rates

FROM TO1. Buildings used for pasteurising, sterilising or separating milk or cream

and for the manufacture of butter, evaporated or condensed milk, icecream or soft cheese (processed cheese) 0.08% 0.1%

2. Factories ma

Documents

Underwriting Manual - Ammended Tn