Insurance Journal (4th Quarter 2017)

Guest Contribution
(I) Loss or Damage or Cost or
Expense, directly or indirectly caused
by an Act of Terrorism, regardless of
any Other Cause or Event which
might have concurrently contributed
to the same Act of Terrorism, shall fall
out of the ambit of the relative Fire
Insurance Policy, even if the Standard
Explosion Endorsement would have
been attached therewith.
Any Act of Terrorism has been
defined as “the use of un-limited
Force or Violence and/or Threat
thereof. Besides, Terrorism would
also include a Harmful Act to humanlife,
or Tangible or Un-tangible
property or Infrastructure by any
Person or group of Persons,
irrespective of whether working alone
or on behalf of an Organization, for
Political, Religious, Ideological or
other alike purposes. Terrorism would
also include an intention to
influencing the government or putting
public or any Section of the Public in
fear.
It is also pertinent to mention that any
Loss or Damage or Cost or Expenses,
as a consequence of an action, which
would have been taken, either directly
or indirectly, in the course of
controlling, preventing, suppressing
the Acts of Terrorism, would also fall
within the Exclusions of the Standard
Explosion Endorsement.
Besides, any Loss or Damage, which
would have happened during the
existence of Abnormal Conditions in
the course of the afore-mentioned
Happenings, shall be deemed uncovered
by the relevant Fire Insurance
Policy. In case, however, if the
Insureds shall be able to prove that the
s a m e L o s s h a s t a k e n p l a c e
independently of the said Abnormal
Conditions, then the same shall be
considered covered within the scope
of the relevant Fire Insurance Policy.
In case of any Legal Suit or Action,
when the Underwriters would have
alleged that under the Provisions of
Conditions of this Standard Explosion
Endorsement, any Loss or Damage is
not covered by the Insurance Policy,
then the burden of proving that it is
covered, would be the responsibility
of the Insureds.
(II) In case, there shall be another Fire
Insurance Policy/Policies on the same
Subject-matter of Insurance, the
Company shall be liable only to the
Pro-Rata amount of the Loss with
other alike Insurance Policies, in
respect of any Loss or Damage by
Explosion, irrespective of the fact
whether or not those other Fire
Insurance Policies would cover Loss
or Damage by Standard Explosion
Endorsement.
In case, at the time of the Occurrence
of a Loss or Damage by Explosion, if
the Subject-matter of Insurance would
have been covered or ought to have
been covered by any other existing
Policy/Policies, but had not been so
covered due to the existence of this
Policy, any Loss or Damage due to
Exclusion would fall out of the
purview of this Fire Insurance Policy,
despite the attachment of the Standard
Explosion Endorsement thereon.
(III) However, this Policy would only
indemnify the Insureds for the Excess
amount of the Loss or Damage which
would have been payable under those
other Insurance Policy/Policies, had
this Insurance not been effected.
To Be Continued……
Insurance Journal October, November, December 2017
15
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