1. SECTION 1 – INSURANCE ON THE MOTOR VEHICLE

1. Loss or Damage

The Company will indemnify the Insured against loss of or damage to the Motor Vehicle and its accessories and spare parts whilst thereon. At its own option the Company may pay in cash the amount of the loss or damage or may repair, reinstate or replace the Motor Vehicle or any part thereof or its accessories or spare parts.

of the insured, what the insured

does, the cover given and the relevant limits, sums insured and excess etc.

The liability of the Company shall not exceed the value of the parts lost or damaged and the reasonable cost of fitting such parts it being understood that the Company’s liability shall be limited to the reasonable market value of the Motor Vehicle at the time of the loss or damage but not exceeding the Insured’s estimate of value stated in the Schedule.

1. Hire Purchase Agreement or Mortgage

   If to the knowledge of the Company the Motor Vehicle is the subject of a Hire Purchase Agreement or a Bill of Sale by way of mortgage any payment in cash shall be made to the owner described in the Hire Purchase Agreement or the mortgagee described in the Bill of Sale whose receipt shall be full and final discharge to the Company in respect of such loss or damage.

2. Protection and Removal after accident

   If the Motor Vehicle is disabled by reason of loss or damage insured under this Policy the Company will subject to the Limits of Liability bear the reasonable cost of protection and removal to the nearest repairers and of delivery within the country where the loss or damage was sustained.

3. Authority to Repair

   The Insured may authorize the repair of the Motor Vehicle necessitated by damage for which the Company may be liable under this Policy provided that:

   1. (a)  the estimated cost of such repair does not exceed the Authorized Repair Limit;

   2. (b)  a detailed estimate of the cost is forwarded to the Company without delay.

      EXCLUSIONS TO SECTION 1

The Company shall not be liable to pay for:

1. (a)  consequential loss of any kind except where car hire charges are covered as indicated in the scheule;

2. (b)  depreciation, wear and tear, mechanical or electrical breakdown, mechanical failures or breakages;

3. (c)  damage to tyres unless damage is caused to other parts of the Motor Vehicle at the same time

SECTION 2 – LIABILITY TO THIRD PARTIES

1. Indemnity to the Insured

   The Company will subject to the Limits of Liability indicated in the schedule and the Jurisdiction Clause indemnify the Insured against sums including claimant’s costs and expenses which the Insured shall become legally liable to pay in respect of:

   1. (a)  death of or bodily injury to any person;

   2. (b)  damage to property;

   Where such death or injury or damage arises out of an Accident caused by or in connection with the Motor Vehicle or the loading or unloading of the Motor Vehicle.

2. Indemnity to other persons

   The Company will subject to the Limits of Liability indicated in the schedule and the Jurisdiction Clause indemnify any Authorized Driver or at the request of the Insured any person (other than the person driving) in or getting into or out of the Motor Vehicle against all sums including claimant’s costs and expenses which such Authorized Driver or person shall become legally liable to pay in respect of:

   1. (a)  death of or bodily injury to any person;

   2. (b)  damage to property;

   where such death or injury or damage arises out of an accident caused by or in connection with the Motor Vehicle or the loading or unloading of the Motor Vehicle.

3. Indemnity to Legal Representatives

   In the event of the death of any person entitled to indemnity under this Section the Company will in respect of the liability incurred by such person indemnify his legal personal representatives in the terms and subject to the limitations, which applied to such person.

4. Application of Limits of Liability

   In the event of an accident involving indemnity under this Section to more than one person the Limits of Liability shall apply to the aggregate amount of indemnity to all persons indemnified and such indemnity shall apply in priority to the Insured.

5. Representation and Defense

The Company may at its own option:

1. (a)  arrange for representation at any inquest or fatal inquiry in respect of any death which may be the subject of indemnity under this Section;

2. (b)  undertake the defense of proceedings in any Court of Law in respect of any act of alleged offence causing or relating to any event, which may be the subject of indemnity under this Section.

6. Expenses

The Company will pay all costs and expenses incurred with its written consent in respect of a claim under this insurance.

EXCLUSIONS TO SECTION 2

The Company shall not be liable:

1. a)  for death of or bodily injury to any person in the Insured’s employment arising out of and in the course of such employment;

2. b)  for damage to property held in the Insured’s trust , custody or control or belonging to the Insured or any member of the Insured’s household or the insured’s employee;

3. c)  For damage to property held in trust, custody or control or belonging to any other person claiming to be indemnified under subsection 1.

   SECTION 3 – MEDICAL EXPENSES

The Company will subject to the Limit of Liability stated in the schedule pay to the Insured the reasonable medical expenses incurred in connection with any bodily injury by violent, accidental, external and visible means sustained by the Insured or Authorised Driver or any occupant of the Motor Vehicle as the direct and immediate result of an accident to the Motor Vehicle.

SECTION 4 – MOTOR VEHICLE IN CUSTODY OF MOTOR TRADER

Notwithstanding General Exclusion 1(b) the indemnity provided by this Policy shall be operative but only so far as it relates to the Insured whilst the Motor Vehicle is in the custody or control of a member of the Motor Trade for the purpose of overhaul upkeep or repair.

INSURANCE PROVIDED

1. Where the insurance provided is “Comprehensive” all Sections of this Policy are operative.

2. Where the insurance provided is “Third Party Fire and Theft” Section 3 of this Policy is cancelled and Section 1 operates only in respect of loss or damage caused directly by fire, self-ignition, lightning, explosion, theft or attempted theft.

3. Where the insurance provided is “Third Party only” Section 1, 3 and of this Policy is cancelled.

   LIMITATIONS AS TO USE

Use only for social, domestic and pleasure purposes and by the Insured in person in connection with his business or profession or any other person authorized by the insured.

The Policy does not cover use for racing, competitions, rallies or trials (or use for practice for any of them) or use for hire or reward, commercial traveling, the carriage of goods in connection with any trade or business or use for any purpose in connection with the Motor Trade.

JURISDICTION CLAUSE

The indemnity under this Policy shall not apply in respect of judgements which are not in the first instance delivered by or obtained from a Court of competent jurisdiction within the Geographical Area.

AVOIDANCE OF CERTAIN TERMS AND RIGHTS OF RECOVERY

If the Company is obliged by the law of any country within the Geographical Area to pay an amount for which the Company would not otherwise be liable under this Policy the Insured shall repay that amount to the Company.

GENERAL EXCLUSIONS

The Company shall not be liable in respect of:

1. Any accident, loss, damage or liability caused, sustained or incurred:

   1. (a)  outside the Geographical Area;

   2. (b)  whilst on the Insured’s order or with his permission or to his knowledge any motor vehicle in respect of which indemnity is provided by this Policy is:

      1. (i)  being used otherwise than in accordance with the Limitation as to Use;

      2. (ii)  being driven by any person other than an Authorised Driver or is for the purpose of being driven by him in the charge of such person.

2. Any accident, loss, damage or liability (except so far as is necessary to meet the requirements of the legislation) directly or indirectly, proximately or remotely, occasioned by or contributed to by or traceable to or arising out of or in connection with:

   1. (a)  war, invasion, act of foreign enemy, hostilities or war like operations (whether war be declared or not), civil war, mutiny, rebellion, revolution, insurrection, military or usurped power;

   2. (b)  strike, riot and civil commotion;

   3. (c)  Detention, seizure, confiscation or any attempt thereat, or by any direct or indirect consequences of any of the said occurrences to be indemnified shall prove that the accident, loss, damage or liability, arose independently of and was in no way connected with or occasioned by or contributed to by or traceable to any of the said occurrences or any consequence thereof and in default of such proof the Company shall not be liable to make any payment in respect of such a claim.

3. Any liability, which attaches by virtue of any agreement but which would not be attached in the absence of such agreement.

4. Any accident, loss or damage to any property whatever, resulting or arising there from or any consequential loss.

1. Any liability of whatsoever nature, directly or indirectly caused by or contributed to or arising from ionizing radiation or contamination by radioactivity from any nuclear fuel. For the purpose of this exception combustion shall include any self-sustaining process of nuclear fission.

2. Any accident, loss or damage or liability directly or indirectly caused by or contributed to by or arising from nuclear weapon materials.

3. Drunk/intoxication: It is hereby declared and agreed that the company shall not be liable to make any further payment in respect of any accident, loss, damage or liability caused or arising whilst the motor vehicle in connection with which insurance or indemnity is granted hereunder is being driven by the Insured or any other person with the knowledge and consent or order of the Insured whilst impaired by intoxicating liquor or drug.

4. Terrorism Exclusion Clause:
   Notwithstanding any provision to the contrary within this Policy or any endorsement thereto, this insurance agreement does not cover any liability, loss, damage or expenses of whatsoever nature directly or indirectly caused by, resulting from happening through or in connection with any act of terrorism, regardless of any other cause contributing concurrently or in any other consequence to the loss, damage or expense

   For the purpose of this exclusion, terrorism means an act of violence or an act dangerous to human life, tangible or intangible property or infrastructure with the intention or effect to influence any government or to put the public or any section of the public in fear.

   In any action, suit or other proceedings where the Company alleges that by reason of this definition a loss, damage or expense is not covered by this Policy, the burden of proving that such a loss, damage or expense is covered shall be upon the Insured

   GENERAL CONDITIONS

1. Interpretation

This Policy, the Schedule, Proposal form and any endorsement thereto shall be read together as one contract and any word or expression to which a specific meaning has been attached in any part of this Policy or of the Schedule shall bear such specific meaning wherever it may appear.

1. Insured’s Duty

   The due observance and fulfilment of the Terms of this Policy in so far as they relate to anything to be done or not to be done by the Insured or any person claiming to be indemnified and the truth of the statements and answers in the Proposal shall be conditions precedent to any liability of the Company to make any payment under this Policy.

2. Written Notice

   Every notice or communication to be given or made under this Policy shall be delivered in writing to the Company.

3. Care of Motor Vehicle

   The Insured shall take all reasonable steps to safeguard the Motor Vehicle from loss or damage and to maintain the Motor Vehicle in efficient condition and the Company shall have at all times free and full access to examine the Motor Vehicle or any part thereof or any driver or employee of the Insured. In the event of any accident or breakdown the Motor Vehicle shall not be left unattended without proper precautions being taken to prevent further loss or damage and if the Motor Vehicle be driven before the necessary repairs are effected any extension of the damage or any further damage to the Motor Vehicle shall be excluded from the scope of the indemnity granted by this Policy.

4. Notification of Accidents

   In the event of any occurrence which may rise to a claim under this Policy the Insured shall as soon as possible give notice thereof to the Company with full particulars. Every letter claim, writ, summons and process shall be notified or forwarded to the Company immediately on receipt. Notice shall also be given to the Company immediately the Insured or any person claiming to be indemnified shall have knowledge of any impending prosecution inquest or fatal inquiry in connection with any such occurrence. In case of theft or other criminal act which may give rise to a claim under this Policy the Insured shall give immediate notice to the police and co-operate with the Company in securing the conviction of the offender.

5. Claims Procedure

   No admission, offer, promise or payment shall be made by or on behalf of the Insured or any person claiming to be indemnified without the written consent of the Company which shall be entitled if it so desires to take over and conduct in the name of the Insured or such person the defence or settlement of any claim or to prosecute in the name of the Insured or such person for its own benefit any claim for indemnity or damages or otherwise and shall have full discretion in the conduct of any

proceedings and in the settlement of any claim and the Insured and such person shall give all such information and assistance as the Company may require.

1. Payment of Limits of Liability

   At any time after the happening of any event giving rise to a claim or series of claims under Section 2 – 1(b) and Section 2 – 2(b) of this Policy the Company may pay to the Insured or any person claiming to be indemnified the full amount of the Company’s liability under Section 2 1(b) and Section 2 – 2(b) and relinquish the conduct of any defence, settlement or proceedings and the Company shall not be responsible for any damage alleged to have been caused to the Insured or such person in consequence of any alleged action or omission of the Company in connection with such defence settlement or proceedings or of the Company relinquishing such conduct nor shall the Company be liable for any costs or expenses whatsoever incurred by the Insured or such person or by any claimant or other person after the Company shall have relinquished such conduct.

2. Other Insurance

   If at the time any claim arises under this Policy there is any other insurance covering the same loss, damage, or liability the Company shall not be liable to pay or contribute more than its rateable proportion of any loss, damage, compensation costs or expenses.

9. Cancellation

(a) The Company may cancel this Policy by sending thirty days’ notice via electronic mail, facsimile, registered letter or by personal delivery to the Insured at his last known address or his appointed intermediary and in such event will return to the Insured the premium paid less the pro rata portion thereof for the time during the current Period of Insurance the Policy has been in force provided no claims have been paid under this insurance.

The Policy may be cancelled at any time by the Insured by giving thirty days’ notice to the Company provided no claim has arisen during the current Period of Insurance and the current Certificate(s) of Insurance has been returned to the Company on or before the date of cancellation the Insured shall be entitled to the difference (if any) between the premium paid and the premium calculated at the Company’s Short Period rates for the time during the current Period of Insurance the Policy has been in force.

SHORT PERIOD RATES

• -  Up to three months- 30% of annual premium

• -  Three to Six months- 60% of annual premium

• -  Six to nine months – 90% of annual Premium

(b) For purposes of this policy, notices and all other communication provided for under this contract shall be in writing.

10. Complaints Procedure

(a) The Company is committed to resolving all grievances, complaints or/or disputes in a quick, fair and timely manner.

1. (a)  The insured may lodge a formal grievance or complaint and the Company undertakes to review any such grievance or complaint and keep the Insured informed of the progress of the review within fifteen (15) days from the date of receipt of the grievance or complaint.

2. (b)  In the process of review of the grievance or complaint the Company may request for further information, undertake further assessment or investigation to assist them in reviewing the grievance or complaint.

3. (c)  The Company undertakes to inform the Insured of the outcome of the review within thirty 30 days from the date of receipt of the grievance or complaint or from the receipt of further information or report from assessment or investigation.

11. Dispute Resolution

(a) The parties (the Company and the Insured) shall endeavor to resolve any disputes arising out of this Policy first by negotiation.

The dispute or any issues not resolved by negotiation within sixty (60) days after the dispute arising (unless the parties extend that period in writing) may be resolved through a sole mediator jointly appointed by the parties in writing. Both parties shall contribute to the cost of the mediation. This Clause shall not preclude or prevent the Insured from referring the matter to the Complaints Bureau of the Insurance Regulatory Authority of Uganda.

12. Premium Payment

The premium indicated in the policy schedule must be paid to the insurers as per the provisions of the Insurance Act of Uganda.
If the premium due under this contract has not been paid to the Insurers by the agreed date, the Insurers shall have the right to cancel this contract. In the event of cancellation, premium is due to Insurers on a pro rata basis for the period that Insurers are on risk provided there are no claims, but the

full contract premium shall be payable to Insurers in the event of a loss prior to the date of termination which gives rise to a valid claim under this contract. Please note that the Company shall only assume risk upon receipt of the full premium.

13. Premium Payment Acknowledgement

No payment in respect of any Premium shall be deemed to be payment to the Company unless a printed form of receipt for the same signed by an Official or duly appointed Agent of the Company shall have been given to the Insured.
Please note that the Company shall only assume risk upon receipt of the full premium.

ENDORSEMENTS ATTACHING TO AND FORMING PART OF THE POLICY

1. Compulsory Excess Clause
(i) Excess–AllClaimsClause

It is hereby understood and agreed that Section 1 of this Policy the Insured in respect of each and every claim amount payable shall be responsible for the first amount shown in the Schedule (or any less expenditure which may be incurred) of any expenditure for which provision is made thereunder (including any payment in respect of costs and expenses) and of any expenditure by the Company in the exercise of its discretion under Conditions 5 of this Policy.

If the expenditure incurred by the Company shall include the amount for which the Insured is responsible hereunder, such amount shall be repaid by the Insured to the Company forthwith.

For the purposes of this Endorsement the expression ‘event’ shall mean an event or series of events arising out of one cause in connection with any one Motor Vehicle in respect of or in connection with which indemnity is granted under this Policy.

(ii) Excess – Theft Claims

It is hereby understood and agreed that Section 1 of this Policy the Insured in respect of each and every amount of claim payable resulting from Burglary housebreaking or theft shall be responsible for the first amount shown in the Schedule of the Insured’s estimate of the value stated in the Schedule whichever is the greater.

It is further understood and agreed that this amount is additional to any other amount for which the Insured may be responsible under the Terms of this Policy.

2. Young and/or inexperienced drivers:

The Company shall not be liable under Sections 1 and 2 of this Policy for the first amount shown in the Schedule of any amount otherwise payable in respect of loss or damage to the Motor Vehicle (other than by Fire, external explosion, self ignition or lightning or burglary housebreaking or theft) occurring whilst the Motor Vehicle is being driven by or is for the purpose of being driven by him in charge of any person who:

a) is under twenty five years of age or;

b) has not held for a period of three years a license other than a provisional licence to drive a vehicle of the same class.

The aforesaid amount shall be payable in addition to any other amount which the Insured may be responsible within the terms of the Policy.

1. Average Clause

   It is hereby understood and agreed that the Insured’s estimate of value of the vehicle including accessories and spare parts stated in the Policy shall be the basis of the amount of indemnity described in Section 1. If at the time of an occurrence giving rise to a claim under Section 1 of this Policy the estimated market value of the vehicle is greater than the Insured’s estimate of value of the vehicle including accessories and spare parts stated in the Policy then the Insured shall be considered as being his own insurer for the difference and Company’s liability shall be limited to such rateable proportion of the total expenditure under the said Section 1 of the Policy as the Insured’s estimated market value at the time of the occurrence.

2. Intoxicating Drinks & Drugs Clause

   It is hereby understood and agreed that the Company shall not indemnify the Insured or any other person in respect of any loss occurring whilst the Insured or his authorised driver is certified by a competent authority to have been under the influence of a drink or a drug to such an extent as to have rendered him incapable of having proper control of the vehicle at the time of an accident collision or other occurrence giving rise to such a loss.

3. Replacement Parts Clause

   It is hereby understood and agreed that in the event of loss or damage to the Motor Vehicle or its accessories or spare parts necessitating the supply of a part not obtainable from stocks held in the country in which the Motor Vehicle is held for repair or in the event of the Company exercising the option under Section 1-2 to pay in cash the amount of the loss or damage the liability of the Company in respect of any such part shall be limited to:-

(a) (i) the price quoted in the latest catalogue or price list issued by the Manufacturer or his Agents for the country in which the Motor Vehicle is held for repair; or

(ii). if no such catalogue or price list exists the price list obtained at the Manufacturer’s Works plus the reasonable cost of transport otherwise than by air to the country in which the Motor Vehicle is held for repair; and

(c) the reasonable cost of fitting such part(s).

1. Windscreen and Window Glass

   In consideration of the payment of an additional premium it is hereby understood and agreed that any claim for the cost of reinstating any windscreen or window glass forming part of the motor vehicle, as a result of breakage will be made within the terms of the Policy without deduction of any amount for which the Insured is responsible in the terms of any Excess endorsement attaching to the Policy. Any payment under this endorsement shall not constitute a claim within the meaning of the No-claim Discount provisions of the Policy. The maximum indemnity provided by this extension is limited to the amount shown in the Schedule and in the event of a claim arising under this endorsement notwithstanding that the payment may be less than the indemnity provided by the extension, cover under the extension shall be forfeited and may be reinstated at the discretion of the Company and the payment of an additional premium of not less than the amount originally charged.

   Provided that this endorsement shall not apply to the breakage of glass arising from an occurrence in which other damage is sustained by the Motor vehicle.

2. Strike Riot and Civil Commotion
   It is hereby understood and agreed that cover provided by this Policy extends to include loss, damage or liability directly caused by:

   1. a)  the act of any person taking part together with others in any disturbance of the public peace (whether in connection with a strike or lock-out or not) or the action of any lawfully constituted authority in suppressing or attempting to suppress any such disturbance or in minimizing the consequences of such disturbance;

   2. b)  The wilful act of any striker or locked out worker done in furtherance of strike or in resistance to a lock-out or the action of any lawfully constituted authority in preventing or attempting to prevent any such act or in minimizing the consequences of any such act.

1. Total Loss Clause

   The value of the vehicle(s) described in this Policy is (are) not necessarily the amount payable by the Company in the event of a total loss. In accordance with the Policy conditions, the Company's liability is limited to the Market Value of the vehicle(s) immediately prior to the date of loss or the Value stated in the Policy whichever in less after deduction for the excess amount applicable.

2. Locks and Keys Clause

   The Company shall indemnify the Insured in respect of the cost of replacing locks and keys, including the reprogramming of any coded alarm controller of any such vehicle or following upon the Insured having reason to believe that an unauthorised person may be in possession of a duplicate key or alarm controller, provided the Insurer's liability shall not exceed for any event, the amount stated in the Schedule.

10. Car Entertainment Unit Extension

In consideration of the payment of an additional premium, it is hereby understood and agreed that any claim for the cost of repairing/reinstating or replacing a specified radio/cassette player or any other type of entertainment unit fitted to motor vehicle as a result of loss or damage due to theft following forcible and violent entry (of which there shall be external visible entry) into the Motor Vehicle will be made within the terms of the Policy without deduction of any amount for which the Insured is responsible in terms of any Excess provided for in the Policy.

Any payment under this endorsement shall not constitute a claim within the meaning of No Claim Discount provisions of the Policy. The maximum indemnity provided by this extension is limited as indicated in the policy schedule.

In the event of a claim arising under this endorsement notwithstanding that the payment may be less than the indemnity provided by the extension, cover under the extension shall be forfeited and be reinstated at the discretion of the Company on the payment of an additional premium of not less than the amount originally charged, it being understood and agreed that loss, or damage to external aerial will not constitute a claim under this extension. Subject otherwise to the terms, exceptions, provisions and conditions of this Policy.

11. Personal Accident Extension

In consideration of the Insured paying an additional Premium, the Motor Insurance Policy is extended to cover the Insured against bodily injury and permanent total incapacity up to a limit stated in the Policy Schedule resulting solely and directly from an accident caused by violent external and visible means during the Period of Insurance and arising out of the use of the motor vehicle insured under this Policy.

12. Personal Effects

In consideration of the Insured paying an additional Premium, the Policy is extended to cover personal effects up to a limit stated in the Policy Schedule as a result of loss or damage due to theft following forcible and violent entry (of which there shall be external visible entry) into the Motor Vehicle will be made within the terms of the Policy.

13. Car Hire Charges

In consideration of the Insured paying an additional premium, the Motor Insurance Policy is extended to cover Car Hire Charges up to the limit stated in the Schedule as a result of the Insured’s motor vehicle being inoperative because of an accident or theft.

14. Automobile Association of Uganda (AAU) Membership

In consideration of the insured paying an additional premium, the Motor Insurance Policy is extended to cover Emergency 24 Hour Road Rescue, Towing and valuation by the Automobile Association of Uganda (AAU).

15. Geographical Area

In consideration of the Insured paying an additional premium, this Motor Insurance Policy is extended to cover East Africa Region (Kenya, Tanzania, Rwanda and Burundi) up to the full material damage limit excluding third party liabilities.