Chapter7–OtherRequirementsfor
Cover
19.GeneralExclusions–whatwedonotcover
(1)Excluded events
Wewill not payfor
(a)loss, destruction, damage or liabilityarisingfrom
(i)the deliberate disregard by youof the need totake all reasonable stepsto preventlosses
(ii)ionising radiation, or contamination by radioactivity, fromany
nuclearfuel waste orweapon – whetherfromadirector indirecteffect
(iii) asbestosresultingfrommining, handling, processing, manufacture,sale, distribution,storage, presence, use or
removal of asbestosproductsand/or productscontaining asbestos(unless,in thecase of removal, thisisnecessary
followinganincidentwhichwe cover), or
(b)anyclaim resultingfrom
(i)war,invasion, actof a foreignenemy, hostilities(whether war
isdeclared or not),civil war, rebellion, revolution, insurrection, or militaryorusurped power18
(ii)confiscation, nationalisation, requisition,or damageto
propertyordered byacompetentauthorityexceptwhere such actionwasin theprocessof the defence of humanlife andor
thirdparty property, or19
(iii) the discharge, dispersal, release or escape of pollutantsorfor the costsof removing, nullifyingor cleaninguppollutants or for thecostof preventing theescapeof pollutantsunlessit isa sudden,identifiable, unintended, unexpected andaccidental happening which takes place initsentiretyata specifictime and place.
18 This exclusiondoes not applytothePropertyinTransitcoverinSection10; PersonalAccident coverin Section14; TravelOutsideCountrycoverin Sections 15and16;or Expatriate coverinSection17.
19 This exclusiondoes not applytothePropertyinTransitcoverin Section10.
(2)Other liabilities andcosts
Wewill not payfor
(a)anyliabilityarisingfromtheownership, maintenance, operation(which includes yourmeansof access)or use by youof watercraft greater than
15 metresinlength and all aircraft, rocketsand satellites, that are in
yourpossession, care, custodyorcontrol, unlessspecified inyour
Schedule of Cover
(b)loss, destructionor damage towatercraft greater than15 metresin length and all aircraft, rockets andsatellites, that are inyourpossession, care,custodyorcontrol, unlessspecifiedinyourAssetsSchedule20
(c) anyliabilityorcostsconnected with anyclaimor requestfor
(i) reviewofyourdecision-makingunder thegroundssetout in the Administrative Decisions (JudicialReview)Act 1977or the Judiciary Act1903
(ii)other judicial reviewofyourdecision-making, or
(iii) administrative or meritsreview ofyourdecision-making21
(d)anyclaim, if youhave admitted liability withoutComcover’sprior writtenapprovalor ifyouhave otherwise compromisedyourlegal positionto theextentyouhave prejudicedComcover’sposition
(e)the liabilityof a manufacturer,supplier, contractor,orrepairerunless such liabilityarisesunderthetermsof acontractwith you
(f) anyfines, penalties, ormultiple, punitive, exemplaryoraggravated damages
(g)liquidateddamageclausesorperformancewarrantiesunlessproven that liability would have attached in theabsence ofsuch clausesor warranties
(h)yourcostsincurred inappearing before any inquiry
(i) anyliabilityofyouremployeesor officersarisingfromtheirdeliberate disregard of the need totake all reasonablestepsto preventlosses
(j) anyliabilityarisingsolelyfromadecision by youtoterminate any contractor agreement,22or
20 Exclusions 19.2(a)and19.2(b)donot applytoliabilityyouhaveas achartererwhichiscoveredinPart 7.
Exclusions 19.2(a)and19.2(b)donotapplytowatercraft andaircraftyou lawfully seizein theexerciseof your
duties providedyou notifyusof theirdetails as soonas possibleafteryou have seized them.
21 Decision-makingincludesyour conductandanyactiontakenbyyou.
22 This exclusiondoes not applytothecovergivenunder 8.(4)(a).
(k)the paymentof entitlementsto a third party whichtheFund Member would have had topay butfor negligentadvice by theFund Member regardingsuch entitlements.
(3)Indemnity
Wewill not payfor liabilityarisingout of anyindemnityunless
(a)the liability would have arisenin theabsenceof such indemnity, or
(b)theindemnityiscontained inacontractwhere thecontractwasentered into priorto 1July2004,or
(c)youhave followed AustralianGovernment policyonissuingand managingindemnitiesand, aftermaking reasonable inquiries,youhave assessed:
(i)the likelihood of the eventgiving rise totheliabilityoccurring aslessthan5%; and
(ii)themostprobable expenditure that would need to be madeif the eventgiving rise tothe liabilityoccurred asless than
$5,000,000.
(4)Claimscovered by otherlegislation
Wewill not payfor
(a)any workers'compensationclaimspayableunderthe Safety, Rehabilitation andCompensationAct1988, the Military, Rehabilitation andCompensationAct2004or anyother workers' compensation legislationinanyjurisdictionor associatedcommonlawclaims,or
(b)any personal injuryordeathclaimscovered byany policyissued or which should have been issued underapplicabletransport accident compensationlegislation.
(5)Claimsfrom incidentspriortocommencementdate
Wewill not payfor any claimbased directlyorindirectlyonincidentswhich
(a)youhave, orshould have,givenwritten notice ofunder anycontractof insuranceheld beforeyourcommencement datewithComcover, or
(b)youknewabout beforeyourcommencement datewithComcover and whichyouknew, oroughtto reasonably to have known, could give rise to aclaim undera previousinsurance arrangementandyou did not informthepreviousinsurers.
(6)Corruption of computerdata
Wewill not payfor any losscaused directlyorindirectly byerasure or corruptionof informationoncomputersystemsorotherrecordsarising
fromacomputer virus orincorrectprogramming, punching, labelling, insertionorcancellation.
20.OtherConditions
(1)Schedule of Cover
Comcover issuesto eachFund Membera Schedule of Cover which specifiestheparticularcover, maximumlimits, andexcesses, ifany, provided toeachFundMember.
(2)Retroactivedate
If youhadDirectors’andOfficers’and/or Professional IndemnityInsurance before joining Comcover,thenwe will set adate prior toyourjoining the Fund that will identifythe time fromwhichwe willacceptliabilityfor executionor breachofyourduty, or wrongfulacts, which give rise to a claimmade during yourperiod of coverwithus.Theapplicabledate will be that shownin yourSchedule of Cover.If youhad General Liability insurancebeforejoiningComcover, we will acceptliabilityfor eventswhich occurredafter the timeyou joined theFund.23
(3)Duty of disclosure
(a)You have a dutyof disclosure in respectofyourriskexposures, which meansthat
(i)beforeacceptingcover,you musttell Comcovereverymatter youknow, or could reasonably be expected to know,is relevantto Comcover'sdecisionto offer cover
(ii)at all timeswhilethisStatementof Cover applies, you must give Comcoverwritten notice, assoonaspossible, of
everything that youare awareof in the ordinarycourseof
businessthat isrelevanttoyourriskexposures
(b)youdo not haveto disclose a matter
(i)that diminishestherisk,or
(ii)thatwe knowor intheordinarycourse ofourbusinessought to know.
(4)Claims
Whena claimismade against you, or aneventoccursthat maygive rise toa
claim, you must:
(a)providewritten details, including detailsof anyother insurance which coverstheclaim, toComcoverassoonaspracticable24
(b)not admitliabilityfor, or settle, any claimor incur anycostsin connectionwith aclaimwithout the prior writtenconsentofComcover.
23 If you didnot havecoverforthe classes of risks listedabovebeforeyou joined theFundthen,subject tothe terms of this Part 2andyourSchedule ofCover, Comcoverwillonly acceptliabilityforexecutionorbreachofyourduty, orwrongful actsforoccurrenceswhichhappenafterthetime youjoinedtheFund.
24 SeeChapter8General Information formoredetailsonhowtoreportdifferenttypesof claims.
(5)Excess
(a)Whenaclaimismade against you, or aneventoccursthat maygive rise to aclaim, youmustpaytheexcesspromptly, asand wheninstructed byComcover25
(b)Ifdifferentexcessesapplyto a claim underdifferentcovers,youmust pay thehigher orhighestexcess
(c)Where more thanoneclaim arisesout of thesame actor omissionor a seriesof related actsoromissions, all of thoseclaimswill together be
oneclaim for the purposesof determining theexcess
(d)wheremore thanoneclaim resultingfromanycombinationevents or a seriesof related eventswhich occur duringany120hour period,all of
thoseclaimswill together be treated asone claimfor the purposesof
determining theexcess. (6)Subrogation
(a)If Comcover acceptsa claim under thisStatementof Cover, Comcover
will have yourrightsof recovery to the extentof theclaim payment made by Comcoverto you or onyourbehalftoanyother party
(b)youmustallowandassistComcoverto claimindemnityorcontribution inyourname fromany partyagainstwhomyoumayhave such rights
(c)youmust giveusall theassistancewemayreasonably require forthe prosecutionandsettlementof recoveryactions
(d)Ifanamount isrecoveredthenComcover will be entitled to deductfrom that amountanyadministrative or legalcostsincurred or paid by Comcover infunding therecoveryaction
(e)Whereyouhave paid anexcessin relationto that claim, you will be entitled to a refund of that excessin theproportionthatthe net amount recovered (lessexpenses)bearsto theclaim paymentmade by Comcover.
(7)Claimsco-operationand settlement
(a)Comcover isresponsiblefor the defence and settlementofclaims.You must giveusall the assistance wemayreasonablyrequire for the defence and settlementofclaimsand recoveryactions
(b)If you wantto contestaclaim, whichwe believeshould be settled,you mayelectto doso butourliabilityfor theclaim willnot exceed the amountfor which,butforyourelection, theclaimcould have been settled togetherwith costsand expenseswemustpayyou up tothe date of yourelection
25If you donot, then Comcover may directlydeduct any amount owingfrom theamount required tosettletheclaim
orrefuseto managethe claim.
(c)Inthe event that you,or adirector or officerof yours,isparty to a claim which iscoveredonlyinpartunderthispolicy, you(or yourself andyourdirector and officer)andComcoverwill use their bestefforts to agree upona fairandproper allocationofloss, and feesand expenses including defence costswhich should be insuredunderthispolicyand which relate solelyto whatiscovered under thispolicy
(d)Inthe event thatanagreementcannot be reached,Senior Counsel (to be mutuallyagreed betweenus)will determine, asanindependentexpert but not anarbitrator, afairand proper allocation. Until the Senior Counsel hasmadehisorher determination,Comcovermay,inits discretion, paysuchlossandfeesandexpensesincluding defence costs asitconsidersappropriate.
(8)Comcover Services
You must not enterinto anyseparatecontract, arrangementor understanding withanysupplierofComcover Services in relationto the managementof a claimorprotectionofyournormallyinsurable risks without the expressapprovalofComcover.
(9)OtherInsurance
You mustadviseusassoonaspracticable if any riskthatwe coverisalso covered foryoubyanyother insurance policy.
(10)Dispute resolution– Claims
(a)Any dispute arising betweenaFund MemberandComcover, or betweenFund Members,concerninganymatterrelating to the applicationof thisStatementof Cover, includingasto
(i)thescope of cover provided or
(ii)thesettlementor managementof a claimagainsttheFund, must be settled betweenthepartiesconcerned according to the
following procedure.
(b)You must notify Comcoverof the nature and circumstancesof the dispute and yourexpectations for resolutionof thedispute. Comcover will investigate asnecessaryand respond withinone calendarmonth.
(c)Ifthedispute cannot thenbe resolved themattermust be referredto the Secretaryof the DepartmentofFinanceandtheChief Executive Officer of the memberorganisationor their nominees.
(d)Ifthedispute cannot thenbe resolved themattermust be referredto the relevantMinisters.
(11)Confidentiality
(a)You must not disclose without the prior writtenconsentofComcoveror asotherwise required bylaw:
(i)thenature andlimitof theliabilitiescovered, or
(ii)the amountofyourmember premium.