PROFESSIONAL INDEMNITY ERRORS & OMISSIONS INSURANCE FOR
CHARTERED ACCOUNTANTS/ FINANCIAL ACCOUNTANTS/MANAGEMENT
CONSULTANTS/LAWYERS/ ADVOCATES/ SOLICITORS/ COUNSELS

1. OPERATIVE CLAUSE:
WHEREAS the insured named in the Schedule hereto and carrying on the
business/profession described in the said Schedule has applied to THE
.................... COMPANY LIMITED (hereinafter called 'the COMPANY') for
the indemnity hereinafter contained and has made a written proposal and
declaration which shall be the basis of this contract and is deemed to be
incorporated herein and has paid the premium as consideration for or on
account of such indemnity.
NOW THIS POLICY WITNESSETH that subject to the terms exceptions and
conditions contained herein or endorsed hereon the Company will indemnify the
Insured against their legal liability to pay compensation including defence
costs, fees and expenses anywhere in India in accordance with Indian Law.
2. INDEMNITY
The Indemnity applies only to claims arising out of losses and/or damages during
the period of insurance first made in writing against the Insured during the
Policy Period and Insured is indemnified in accordance with Operative Clause
for any breach of Professional duty by reason of any negligent act, error or
omission, whenever and wherever committed or alleged to have been committed
during the period Of insurance, by
(i) the insured as stated in the Schedule
(ii) the predecessors in business of the said firm in respect of whom
insurance coverage is expressly provided in the Schedule
(iii) any person at any time employed by the Insured or by such predecessors
in business in the conduct, by or on behalf of the said firm or such
predecessors of any business conducted in their professional
capacity.
PROVIDED ALWAYS THAT
(a) such Act during the Period of Insurance results in a claim being first made
in writing against the Insured during the policy period as stated in the
Schedule.
(b) there shall be no liability hereunder for any claim made against the insured
for act committed or alleged to have been committed prior to the
Retroactive Date specified in the Schedule.
For the purpose of determining the Indemnity granted
(a) 'Policy Period' means the period commencing from the effective date and
hour as shown in the Policy Schedule and at midnight on the expiry
date as shown in the Policy Schedule.
(b) `Period of Insurance' means the period commencing from the retroactive
date and terminating on the expiry date as shown in the Policy
Schedule.
(c) `Bodily Injury' means death, injury, illness or disease of or to any person.
3. LIMIT OF INDEMNITY
Company's total liability to pay compensation, claimant's costs,fees and defence
costs shall not exceed the limit of indemnity stated in the Schedule Indemnity
Limit applies to any one claim or series of claims arising from one originating
cause. Indemnity Limit shall represent the total amount of company's liability
during the Policy Period.
4. DEFENCE COSTS
The Company will pay all costs, fees and expenses incurred with their prior
consent in the investigation, defence or settlement of any claim made against the
Insured and the costs of representation at any inquest, inquiry or other
proceedings in respect of matters which have a direct relevance to any claim
made or which might be made against the Insured, provided such claim or claims
are the subject of indemnity by the Policy. Such costs, fees and expenses are
called `Defence Costs'.
5. (a) NOTIFICATION EXTENSION CLAUSE
Should the Insured notify the Company during the Policy Period in accordance
with General Condition No. 10.1 of any specific event or circumstance which the
company accepts may give rise to a claim or claims which form the subject of
indemnity by this policy, then the acceptance of such notification means that the
Company will deal with such claim or claims as if they had first been made
against the Insured during the Policy period. The extension under the Clause
will be subject to the maximum time limit laid down under the Indian Limitation
Act in force from time to time.
(b) EXTENDED CLAIM REPORTING CLAUSE
In the event of non-renewal or cancellation of this Policy either by the Company
or by the Insured, the Company will allow a time limit not exceeding 90 days
from the date of expiry or cancellation of the policy, provided no insurance is in
force during this extended reporting period for the same interest, for notification
of claims for accidents which had taken place during the period of insurance but
could not be made during the Policy Period, provided however, all claims made
during the extended reporting period shall be handled as if they were made on
the last day of the expiring policy period and are subject to the limits of
indemnity and the terms, conditions and exceptions of the policy.
6. CLAIMS SERIES CLAUSE
For the purpose of this policy where a series of losses and/or bodily injuries
and/or deaths are attributable directly or indirectly to the same cause or error or
omission relating to discharge of professional services all such losses and/or
bodily injuries and/or death claims shall be added together and all such losses
and/or bodily injuries and/or death shall be treated as one claim and such claim
shall be deemed to have been made at the point in time when the first of the
claims was made in writing. There shall, however, be no coverage for claims
made arising from one specific cause which are made later than 3 years after
the first claim of the series.
7. COMPULSORY EXCESS
The Insured shall bear for each and every claim a compulsory Excess of 1/2% of
the limit of Indemnity per Any One Year as shown in the schedule subject to
minimum of Rs. 5,000/-
8. VOLUNTARY EXCESS
In the event of the Insured opting the policy shall be subject to a voluntary excess
as mentioned in the Schedule. This voluntary excess shall be applicable to each
and every claim. The Company's liability shall attach for the claim in excess of
such compulsory and voluntary excess.
9. EXCLUSIONS
This Policy shall not indemnify the Insured against any claim made against them
in respect of :
(a) (i) arising out of all personal injuries such as libel, slander, false arrest,
wrongful eviction, wrongful detention, defamation, etc. and mental
injury, anguish or shock resulting therefrom.
(ii) infringement of plans, copy-right, patent, trade name, trade mark,
registered design.
(b) infringement of patents and copy-rights or arising from the granting of
licences by the Insured as a party to the construction project.
(c) any dishonest, fraudulent criminal or malicious act or omission
(d) liabilities assumed by the Insured by agreement and which would not have
attached in the absence of such agreement.
(e) loss of any documents/data/information/losses sustained on account of
time spent in investigating the cause of damage (including costs for reprojecting
in connection with the damage) and claims for losses
sustained.
(f) bodily injury, sickness, disease, death, damage to property or financial loss
and/or consequential loss unless arising out of wrongful, faulty or
inadequate design or advice.
(g) injury to any person under the contract of employment or apprenticeship
with the Insured their contractor(s) and/or Sub-Contractor(s) when such
injury arises out of the execution of such contract.
(h) the ownership, maintenance, use, occupation, leasing or custody of
property mobile and/or immobile by, to or on behalf of the Insured, or
brought about by damage to or destruction of property owned by, rented
or leased to or in the custody of the Insured.
(i) deliberate, wilful or intentional non-compliance of any Statutory provision.
(j) fines, penalties, punitive or exemplary damages or any other damages
resulting from the multiplication of compensatory damages.
(k) any happening through or in consequence of war, invasion, act of foreign
enemy, hostilities (whether war be declared or not), civil war, rebellion,
revolution, insurrection or military or usurped power.
(l) losses directly or indirectly caused by or contributed by
a) ionising radiations or contamination by radioactivity from any nuclear fuel
or from any nuclear waste from the combustion of nuclear fuel
b) the radioactive, toxic, explosive or other hazardous properties of any
explosive nuclear assembly or nuclear component thereof.
(m) Earthquake, earth-tremor, volcanic eruption, flood, storm, tempest, typhoon,
hurricane, tornado, cyclone or other similar convulsions of nature and
atmospheric disturbance.
(n) any loss and/or damage and/or injury which has its origin in a neglect,
error or omission prior to the Retroactive Date mentioned in the
Schedule
(o) The deliberate non-compliance with technical standards commonly observed
in professional practice, laid down by law, or regulated by official bodies
(p) loss of use and/or loss due to delay
(q) Ownership and/or conduct of any other business or activities wholly or partly
owned/operated or managed except the business described in the
Schedule.
(r) arising from exceeding fire estimates and costs from not adhering to
deadlines in completing the construction of project or part thereof and
from defective accounts or control of accounts.
(s) inadequate quantities/qualities or arranging or handling the supply of
material
(t) activities of the Insured as joint venturer or as partner unless such joint
venture and/or partnership is described in the Schedule; the liability of
the Company being limited to the extent of participation/share in the
business so named
(u) any contract where the Insured acts as a construction contractor whether
or not in conjunction with his/their profession as stated in the Schedule
(v) liabilities arising out of pollution and/or contamination whatsoever nature.
(w) claims for losses as a consequence of material or construction damage,
such as eg. loss of production of all kinds, loss for inferior
performance, poor quality or lower profitability and additional futile
expenditure of the principal to reach normal performance, quality or
profitability
(x) claims for damage cause by motor vehicles, sea vessels or aircraft
10. CONDITIONS
10.1 The Insured shall give written notice to the Company as soon as reasonably
practicable of any claims made against the Insured (or any specific event
or circumstances that may give rise to a claim being made against the
Insured) and which forms the subject of indemnity under this policy and
shall give all such additional information as the Company may require.
Every claim, writ, summons or process and all documents relating to the
event shall be forwarded to the Company immediately they are received by
the Insured.
10.2 No admission offer promise or payment shall be made or given by or on
behalf of the Insured without the written consent of the Company.
10.3 The Company will have the right but in no case the obligation, to take over
and conduct in the name of the insured the defence of any claims and will
have full discretion in the conduct of any proceedings and in the
settlement of any claim and having taken over the defence of any claim
may relinquish the same. All amounts expended by the Company in the
defence, settlement or payment of any claim will reduce the limits of
indemnity specified in the Schedule of the Policy.
In the event that the Company, in its sole discretion chooses to exercise
its right pursuant to this condition, no action taken by the company in the
exercise of such right will serve to modify or expand in any manner, the
company's liability or obligations under this policy beyond what the
company's liability or obligations would have been had it not exercised its
rights under this condition.
10.4 The Insured shall give all such information and assistance as the Company
may reasonably required.
10.5 The Insured shall give notice as soon as reasonably practicable of any
fact, event or circumstance which materially changes the information
supplied to the Company at the time when this policy was effected and the
Company may amend the terms of this policy.
10.6 The Company may at any time pay to the Insured in connection with any
claim or series of claims under this policy to which an indemnity limit
applies the amount of such limit (after deduction of any sums already
paid) or any lesser amount for which such claims can be settled and
upon such payment being made the Company shall relinquish the
conduct and control of and be under no further liability in connection
with such claims.
10.7 The Policy and the Schedule shall be read together as one contract and
any word or expression to which a specific meaning had been attached in
any part of this policy or the Schedule shall bear such specific meaning
wherever it may appear. The terms and exclusions of this policy (and
any phrase or word contained therein) shall be interpreted in accordance
with the Indian Law.
10.8 If at the time of happening of any event resulting into a liability under this
policy, there be any other liability insurance or insurances effected by the
Insured or by any other person covering the same liability, then the
Company shall not be liable to pay or contribute more than its rateable
proportion of such liability.
10.9 This Policy does not cover liability which at the time of happening of any
event resulting into such liability, be insured by or would but for the
existence of this policy, be insured by, any other policy (but not a liability
policy) or policies, except in respect of any excess beyond the amount
which could have been payable under such policy/policies had this
insurance not been effected.
10.10The Company may cancel this Policy by giving thirty days' notice in writing
of such cancellation to the Insured's last known address and in such an
event the company will return a pro-rata portion of the premium (subject
to a minimum retention of 25 per cent of the annual premium) for the
unexpired part of the Insurance.
This Policy may also be canceled by the Insured by giving thirty days' notice
in writing to the Company in which event the Company will retain premium
at short period scale provided there is not claim under the Policy during
the period of Insurance. In case of any claim under the policy, no refund
of premium shall be allowed.
10.11In the event of Liability arising under the Policy or the payment of a claim
under this Policy, the limit of indemnity per any one year under the policy
shall get reduced to the extent of quantum of liability to be paid or actual
payment of such claim. Under not circumstance it shall be permissible to
reinstate the aggregate limit of indemnity to the original level even on
payment of extra premium.
10.12 It is also hereby further expressly agreed and declared that if the Company
shall disclaim liability to the Insured for any claim hereunder and such
claim shall not within 12 calendar months from the date of such disclaimer
have been made the subject matter of suit in a court of Law then the claim
shall for all purposes be deemed to have been abandoned and shall
not thereafter be recoverable hereunder.
10.13The Company shall not be liable make any payment under this Policy in
respect of any claim if such claim shall be in any manner fraudulent or
supported by any statement or device whether by Insured or by any
person on behalf of the Insured and/or if the insurance has been continued
in consequence of any material mis-statement or the non-disclosure of
any material information by or on behalf of the Insured.
10.14Policy disputes Clause
Any dispute concerning the interpretation of the terms conditions limitations
and/or exclusions contained herein is understood and agreed to by both the
Insured and Company to be subject to India Law. Each party agree to
submit to the jurisdiction of any Court of competent jurisdiction within India
and to comply with all requirements necessary to give such Court of
jurisdiction. All matters arising hereunder shall be determined in
accordance with the law and practice of such Court.