Page 28 - Insurance Times December 2019

Y (Key clause) Conclusion and general legality
Before/after business hours, a criminal entered into the Businesses establishment face various types of theft,
premises merely by turning the door knob/handle and including burglary and robbery by outsiders, theft by
stole the goods for which a claim was made against the insiders and identity theft. Language can be sometimes
insurer and the court of appeal held that there had confusing, especially when two words almost mean the
been no forcible and violent entry and therefore no same. Theft and burglary are used interchangeably at the
loss within the meaning the risk held covered under time of writing, but when it comes to home or office
the insurance policy. If the keys of the premises had insurance, the meaning changes completely. While the
been stolen and used by the criminal go gain to access householder's insurance covers against burglary, it does not
and steal and the court held that there had been a cover the risk of theft.
forcible, but no violent entry. The word 'violent', Y Theft: You may have visitors and helps commonly visiting
means that the use of force (which might be minimal) your house. Although they may not intentionally steal
must be accentuated or accompanied by some act, anything, but there is every bit of a possibility that some
which could properly be regarded as violent and it is household items may be lost - valuable and not valuable.
not sufficient that the act is unlawful. Even the use of In case of not so valuable items, say daily-use utensils,
force and violence need not be against the property the concern may not be much. But, what if you lose a
and also against the occupants of the premises. valuable diamond ring? Such a loss could be a theft
during the normal course of activity in your house. You
Y Breaking of/entering in to the premises:
may discover such a loss over time and not instantly.
Breaking into or out of the dwelling or any other Such losses are not covered under the householder'
premises by a person is said to commit house/premises policy as it is not treated as burglary.
breaking who commits house trespass, if he effect
entry into the premises or any part of it for the purpose Y Burglary: For the sake of insurance, burglary is
of committing an offence or having committed an something that occurs when your house or office is
offence therein/thereto, he quits the premises in any broken into by force. For instance, the breaking in of a
of the following manner and/or ways. door or a window to get inside the premises is all signs
O First: if he enters or quits through a passage made that the house or office was burgled and robbed. It
by him or any abetter in the house trespass, in generally refers to crimes involving the unlawful entry
order to committing the house trespass. of a structure with or without force.
O Second: If he enters or quits through any passage Understand the distinction between these two to know
not intended by any person, other than himself or when your householder's and office policy will stand the
an abetter of offence, for human entrance or test of insurance and when your claim will be declined.
through any passage to which he has obtained Theft inside the house is assumed to be negligence by the
access by scaling or climbing over any wall or insurer and is hence not covered. The reason why insurers
building. do not service such claims is because of the difficulty of
ascertaining the loss due to negligence or actually the
O Third: I he enters or quits through any passage
which he or any abetter of the house trespass has intentions of someone to actually steal and rob the owner.
opened, in order to committing of house trespass Some insurers do offer additional theft cover, but it is fairly
by any means by which that passage was not expensive compared to the policy sans this cover.
intended of the house to be opened. O Robbery - Robberies involve the taking of valuables
from another person(s) by force or threat of force.
O Fourth: If he enters or quits by opening any lock
in order to committing of house trespass or in O Insider Crime - Many businesses put a great deal of
order to quitting of the premises after house/ effort into protecting their property from theft by
premises trespass. outsiders but neglect to put an equal effort into
preventing insider theft.
O Fifth: If he effects the entrance or departure by
using criminal force or committing an assault of by O Identity Theft - Identity theft occurs when an individual
threatening of any person with assault. uses someone else's personal information to commit fraud.

O Sixth: if he enters or quits by any passage, which Generally, insurance does not cover loss of theft or shop
he knows to have been fastened against such lifting which are most trades is inevitable and must be
entrance or departure and to have been unfastened regarded as not sustainable or payable under burglary
by him or by an abetter of the house trespass. insurance cover. T

28 The Insurance Times, December 2019