Page 130 - Agriculture Policy Wording Binder

Products recall
In consideration of the payment of an additional premium and notwithstanding anything contained to the contrary in Specific Exception 6.1 applicable to Sub-Section 1 and 2 the Company will indemnify the Insured in respect of expenditure incurred by the Insured for the recall of product(s) or any part thereof as a result of a decision taken by the Insured during the period of insurance and notified to the Company during the period of insurance, that it is necessary to recall such products because use or consumption (or continued use or consumption) may cause the Insured to become legally liable as provided for in terms of Sub-Section 2 – Products Liability of this Section;
PROVIDED THAT:
the Company shall not be liable for any expenditure arising from or consequent upon the Insured’s decision to recall any such products:
1. when such decision is forced upon the Insured by any Government or Public Authority and which the Insured would not have made but for the intervention of the said Government or Public Authority;
2. which have not been delivered to customers by the Insured and which remain in the care, custody and control of the Insured or his parent or subsidiary or associated companies;
3. solely as a result of their having been wrongly delivered or misdirected by or on behalf of the Insured;
4. where recall is brought about solely due to exposure to weather or due to external loss or damage or gradual deterioration. This exclusion shall not apply where a defect in the product supplied is merely exacerbated by exposure to weather or the passage of time;
5. the Insured’s liability to pay any import duties or Customs or Excise charges or Value Added Tax (VAT) incurred or payable before the delivery of the product(s) to the Insured;
PROVIDED THAT:
1. the amount payable in terms of this Extension inclusive of any legal costs recoverable from the Insured by a claimant or any number of claimants and all other costs and expenses incurred with the Company’s consent for any one event or series of events with one original cause or source or during any one (annual) period of insurance, shall not exceed in the aggregate the limit of indemnity for this Extension stated in the Schedule;
2. the Insured shall be responsible for the First Amount Payable of 10% (ten percent) of claim, with a minimum of R15 000 (fifteen thousand rand) or the amount stated in the Schedule whichever is the greater in respect of each and every claim.
Definition:
Expenditure shall mean:
1. the reasonable and necessary financial outlay (including the cost of correspondence, newspaper and magazine advertising, media, radio and/or television announcements, transportation costs, packaging and/or temporary storage charges) incurred by the Insured to provide for the return of the product(s) or any part thereof:
1. to the premises of the Insured;
2. to the premises of the manufacturer or producer (or manufacturers’ or producers’ nominated agent);
2. the cost of examination and, where necessary, replacement or reworking of the product(s) (or part thereof) whether incurred by the Insured or his nominated agent out of a recall as described above.
Spread of fire
This Extension will indemnify the Insured against loss of or damage caused by the spreading of fire from the Insured's property to a third party property;
PROVIDED THAT:
1. this Extension does not cover loss or damage to plantations, forests or sugar cane;
PROVIDED FURTHER THAT:
1. 2.
Page | 128
Any reference to the word "plantations" in terms of this extension does not apply to, and specifically excludes "vineyards"
the limit of indemnity shall not exceed the amount stated in the Schedule.
Policy Wording – Agriculture – Binder – Version 2 2023
Combined Liability (Claims-made Basis)