Introduction
This form of takaful provides covers
for electronic equipment such as computers and its
peripheral devices due to any unforeseen and sudden
physical loss or damage from any cause other than
specifically excluded. It will also indemnify loss
or damage to external data media inclusive of the
information stored which can be directly processed
in EDP systems. Additionally, it provides cover for
additional expenditure incurred for the use of substitute
EDP equipment during the interruption period.
What does IKHLAS Electronic Equipment
Takaful Cover?
Material Damage
Under this section, the Company agrees to indemnify
the items covered that suffered any unforeseen
and sudden physical loss or damage from any cause
other than specifically excluded occurring during
the period of takaful.
External Data Media
The Company also agrees under Section 2 of the
Certificate that if the external data media which
can be directly processed in EDP systems suffer
any material damage indemnifiable under Section
1 of this Certificate, the Company will indemnify
in respect of such loss or damage provided that
the data media are kept on the premises.
Increased Cost of Working
The Company will indemnify the participant for
any additional expenditure incurred for the use
of substitute EDP equipment not covered under
this Certificate up to an amount agreed.
Exclusions
General Exclusions
The Company shall not indemnify the participant
in respect of loss or damage directly or indirectly
caused by, arising out of or aggravated by:
| a) |
War, invasion, act of foreign enemy, hostilities
(whether war be declared or not, civil war, rebellion,
revolution, insurrection, mutiny, riot, strike, lock-out,
civil commotion, military or usurped power, a group
of malicious persons or persons acting on behalf
of or in connection with any political organization,
conspiracy, confiscation commandeering, requisition
or destruction or damage by order of any government
de jure or de facto or by any public authority; |
| b) |
Nuclear reaction, nuclear radiation or radioactive
contamination; |
| c) |
Willful act or willful negligence of the participant
or his representatives. |
In any action, suit or other proceeding where the
Company allege that, by reason of the provisions
of Exclusion a) above, any loss, destruction or damage
is not covered by this Certificate, the burden of
proving that such loss, destruction or damage is
covered shall be upon the participant.
Special Exclusions to Section 1
The Company shall also not be liable for:-
| a) |
The deductible stated in the schedule. If however,
more than one item is lost or damaged in one occurrence,
the Participant shall not however, be called upon
to bear more than the highest single deductible applicable
to such items; |
| b) |
Loss or damage directly or indirectly caused
by or arising out of earthquake, volcanic eruption,
tsunami, hurricane, cyclone or typhoon; |
| c) |
Loss or damage directly or indirectly caused
by theft; |
| d) |
Loss or damage caused by any faults or defects
existing at the time of commencement of this Certificate
within the knowledge of the Participant or his representatives,
whether such faults or defects were known to the
Company or not; |
| e) |
Loss or damage directly or indirectly caused
by the failure or interruption of any gas water or
electricity service or supply; |
| f) |
Loss or damage as a direct consequence to the
continual influence of operation (e.g. wear and tear,
cavitations, erosion, corrosion, incrustation) or
of gradual deterioration due to atmospheric conditions; |
| g) |
Any costs incurred in connection with the elimination
of functional failures, unless such failures were
caused by an indemnifiable loss of or damage to the
covered items; |
| h) |
Any costs incurred in connection with the maintenance
of the covered items, such exclusion also applying
to parts exchanged in the course of such maintenance
operations; |
| i) |
Loss or damage for which the manufacturer or
supplier of the covered items is responsible either
by law or under contract; |
| j) |
Loss of or damage to rented or hired equipment
for which the owner is responsible either by law
or under a lease and/or maintenance agreement; |
| k) |
Consequential loss or liability of any kind or
description; |
| l) |
Loss of or damage to bulbs, valves, tubes, ribbons,
fuses, seals, belts, wires, chains, rubber tyres,
exchangeable tools, engraved cylinders, objects made
of glass, porcelain or ceramics, sieves or fabrics,
or any operating media (e.g. lubrication oil, fuel,
chemicals); |
| m) |
Aesthetic defects, such as scratches on painted,
polished or enamelled surfaces. |
In respect of the
parts mentioned under m) and n) above, the Company
shall be liable to provide compensation
in the event that such parts are affected by an indemnifiable
loss of or damage to the covered items.
Special Exclusions to Section 2
| a) |
The deductible stated in the schedule; |
| b) |
Any costs arising from false programming, punching,
labeling or inserting, inadvertent canceling of information
or discarding of data media, and from loss of information
caused by magnetic fields; |
| c) |
Consequential loss of any kind or description
whatsoever. |
Special Exclusions to Section 3
| a) |
Restrictions imposed by public authorities concerning
the reconstruction or operation of the EDP equipment
covered; |
| b) |
The necessary funds not being available to the
participant in time for repairing or replacing damaged
or destroyed equipment |
Basis Of Indemnity
Section 1
| a) |
Where damage to a covered item can be repaired,
the Company shall pay expenses necessarily incurred
to restore the damaged item to its former state of
serviceability plus the cost of dismantling and re-erection
incurred for the purpose of affecting the repairs
as well as ordinary freight to and from a repair
shop, customs duties and dues, if any. If the repairs
are executed at a workshop owned by the participant,
the Company shall pay the cost of materials and wages
incurred for the purpose of the repairs plus a reasonable
percentage to cover overhead charges. |
No deduction shall be made for depreciation in respect
of parts replaced, but the value of any salvage shall
be taken into account.
If the costs of repairs is equal or exceed the actual
value of the covered items immediately before the
occurrence of the damage, the settlement shall be
made on the basis provided for in b)
|
| b) |
Where a covered item is destroyed the Company
shall pay the actual value of the item immediately
before the occurrence of the loss including costs
for ordinary freight, erection, customs duties and
dues, if any. Such actual value to be calculated
by deducting proper depreciation from the replacement
value of the item. The Company shall also pay any
normal charges for the dismantling of the item destroyed
but the value of any salvage shall be taken into
account. |
The destroyed item shall no longer be covered under
this Certificate, and a necessary data on the relevant
substitute item shall be indicated for its inclusion
in the schedule.
(The Company may agree - by application of the relevant
endorsement – to extend this takaful to cover
reimbursement of the full replacement value.)
As from the date of an indemnifiable occurrence
the sum covered shall be reduced for the remaining
period of takaful by the amount of indemnity paid,
unless the sum covered is reinstated.
Any extra charges incurred for overtime, night work,
work on public holidays or express freight shall
be covered by this takaful only if especially
agreed in writing.
The costs of any alterations, additions, improvements
or overhauls shall not be recoverable under this
Certificate.
The costs of any provisional repairs shall be borne
by the Company if such repair constitutes part of
the final repairs and does not increase the total repair
expenses.
The Company shall make payments only after being
satisfied by production of the necessary bills and
documents that the repairs have been effected or
replacement has taken place, as the case may be.
Section 2
The Company shall indemnify any expenses that can
be proved to have been incurred by the Participant
within a period of 12 months as from the date of
the occurrence strictly for the purpose of restoring
the covered external data media to a condition equivalent
to that existing prior to the occurrence and necessary
for permitting data processing operations to be continued
in the normal manner.
If it is not necessary to reproduce lost data or
information, or if such reproduction is not effected
within 12 months after the occurrence, the Company
shall only be liable to indemnify the expenses incurred
for replacing the lost or damaged data media themselves
by new material.
As from the date of an indemnifiable occurrence
the sum covered shall be reduced for the remaining
period of takaful by the amount of indemnity paid,
unless the sum covered is re-instated
Section 3
In the event of failure of the EDP equipment covered,
the Company shall be liable for the additional expenditure
that can be proved to have been incurred for the
period during which the use of substitute EDP equipment
is essential, but at the most for the indemnity period
agreed.
The indemnity period shall commence as soon as the
substitute equipment is put into use.
The participant shall bear that proportion of each
claim which corresponds to the time excess agreed.
If it is found following an interruption of the
operation of the EDP equipment covered that the additional
expenditure incurred during the period of interruption
is higher than the proportionate share of the annual
sum covered which is applicable to this period, the
Company shall only be liable to indemnify the Participant
in respect of that proportion of the agreed annual
sum covered which is applicable to the period of
interruption, duly taking into account the indemnity
period agreed.
Any savings in cost shall be taken into account
when calculating the indemnity amount to be paid
by the Company.
As from the date of an indemnifiable occurrence
the sum covered shall be reduced for the remaining
period of takaful by the amount of indemnity paid,
unless the sum covered is reinstated.
Standard Extension
Eartquake
The risk of earthquake, tidal wave caused by earthquake
and volcanic eruption (i.e. earthquake risks) are
not included in the basic cover. If these risks are
to be covered, the earthquake endorsement must be
applied and a limit of indemnity not exceeding the
sum covered or maximum RM 4,000,000.00 is to be fixed.
Hurricane, Cyclone and Typhoon
The risk of hurricane, cyclone and typhoon are not
included in the basic cover. For the inclusion of
these risks, hurricane, cyclone and typhoon endorsement
must be applied and a limit of not exceeding the
sum covered or maximum RM1,000,000.00 is to be fixed.
These hazards may only be included in the case of
risks situated outside particularly exposed areas.
Special Extension
Strike, Riot and Civil Commotion
On request, the risks of strike, riot and civil
commotion (SRCC), not assuming the extent of a popular
rising, may be included. The indemnity limit which
can be granted for this extension however should
not exceed the sum covered.
Extra Charges for Overtime, Night Work, Work
on Public Holidays and Express Freight
Extra charges for overtime, night work, work
on public holidays and express freight, incurred in
direct connection with repair work may be extended
under this Certificate.
The reimbursement of these
extra charges is limited
to indemnifiable claims, i.e. the repair costs must
exceed the deductible.
Extra Charges for Airfreight
Extra charges for airfreight incurred in direct
connection with repair work may also be extended.
The
reimbursement of these extra charges is limited to
indemnifiable claims, i.e. the repair costs must
exceed the deductible.
Theft
Contrary to the burglary hazard, the theft risk
is not included in the basic cover. It may be included
by applying Theft Endorsement on the client special
request but only if sufficient safety precautions
exist.
The participant has to bear a deductible of 25%
in the case of loss or damage due to theft.
Waiver of Right of Recourse
If
an installation is temporarily or permanently operated
by third parties with the Participant’s
consent, they will be liable to recourse by the Company
in any case of a loss according to the takaful conditions.
The right may be renounced by applying the Waiver
of Rights of Recourse Endorsement. Damage due to
willful or grossly negligence acts, however, is excluded.
Mobile or Portable Equipment
If loss of or damage to mobile or portable equipment
outside the premises is to be covered, it can be
done by applying the Mobile or Portable Equipment
Outside the Premises Endorsement.
Loss of Rental
Loss of Rental Endorsement is to be applied if rental
is included in the cover, which has to be paid during
the interruption due to indemnifiable loss (participant
is the lessee) or which is not received (participant
is the lessor).
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