What is a “Claims Made Basis”?

a “claims made policy” – No claim can be made against the policy after the expiry date stated in the Schedule.  the policy is not a renewable contract.

 

The time of happening of the occurrence which gives rise to a Claim(s) or a possible Claim(s), is not of relevance provided they occur after the Retroactive Date specified in the Schedule.

 

Upon expiry of the Period of Insurance, no further Claims can be made under the Policy and, therefore, the maintenance of insurance provided by this Policy is essential.

 

 

The terms and conditions of the Policy usually provide that:

 

(i)  a Claim (as defined) must be made against the Insured during the Period of Insurance for the Policy to apply; and

 

(ii)  the Insured must immediately notify the Company in writing of such Claim(s).  Such notification must be given to the Company during the Period of Insurance for the Policy to apply.

 

If any circumstances or facts come to the attention of the Insured during the Period of Insurance which are likely to cause a Claim(s) to be made against the Insured or which the Insured should reasonably expect to cause a Claim(s) to be made against the Insured, the terms and conditions of this Policy provide the Insured with an option as to whether or not to notify the Company.  However, failure to notify may affect Policy indemnity, i.e. all or part of any subsequent Claim may not be covered.  Assuming the option to notify the Company is chosen, such notification must be given in writing during the Period of Insurance for the Policy to apply.

 

Again,

 

The time of happening of the occurrence which gives rise to a Claim(s) or a possible Claim(s), is not of relevance provided they occur after the Retroactive Date specified in the Schedule.

 

Upon expiry of the Period of Insurance, no further Claims can be made under the Policy and, therefore, the maintenance of insurance provided by this Policy is essential.

 

DEFINITIONS:

 

“Claim” means:

(a)  the receipt by the Insured of any written or verbal notice of demand for compensation made by a third party against the Insured; or

(b)  any writ, statement of Claim, summons, application or other originating legal or arbitral process, cross-Claim, counter-Claim or third or similar party notice served upon the Insured.

 

“Retroactive Date” means the date after which coverage in respect of any Personal Injury or Property Damage may be granted.

 

 

“Occurrence Basis”

 

“The Company will pay to or on behalf of the Insured all sums which the Insured shall become legally liable to pay way of compensation (excluding Punitive or exemplary and/or aggravated damages and/or any additional damages resulting form the multiplication of compulsory damages) in respect of Personal injury or Property damage Happening during the Period of Insurance caused by an Occurrence in connection with the Business of the Insured within the Territorial Limits as specified within the Policy Schedule”.

 

The time of happening of the occurrence which gives rise to a Claim(s) or a possible Claim(s), is of essential time it must be happening during the Period of Insurance for the Policy to apply; and

 

Notification of claim can be made upon expiry of the Period of Insurance, provided the claim is not “time-barred”.

 

 

By Imam MUSJAB

Tel: +628128079130

E: imusjab@gmail.com

 

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