CONDITIONS PRECEDENT TO LIABILITY
1. If there shall be any incorrect or untrue statement in the proposal herein referred to, or if the insured shall not state any material fact or circumstances at the time of proposal or afterwards or at the commencement of the risk hereunder or on any alteration or extension or renewal of this policy, or on the insured making any claim hereunder or if he shall make any false or fraudulent claim or shall fail in any particular to observe and perform the terms and conditions hereof, this policy shall be void and all premiums paid hereon shall be forfeited to the company.
Insured are all animals of the bovine species which belong to the farm(s) described in the Schedule, provided they are older than 90 days.
AUTOMATIC INCLUSIONS CLAUSE
Notwithstanding anything within the Policy contained to the contrary,it is hereby understood and agreed that the indemnity granted by this Policy shall automatically cover additional animals with effect from the date of acquisition provided that notice of such addition be advised by the Insured within seven (7) days of the date of such addition and the appropriate additional premium, pro-rated until expiry shall become payable accordingly.
Changes in herd size / underinsurance
The Insured is obliged to inform the Company of any changes in numbers of the Livestock covered exceeding 5 % of total number of animals per farm. The right to reduce any compensation in the event of underinsurance is reserved.
Post mortem examination
The Insured shall, at his own expense, procure immediate post mortem reports from the available veterinary services or other qualified veterinary personnel agreed upon by the Company. In cases where immediate post mortem service is not available, the Insured shall take immediate steps to conserve the carcass unless the Company gives prior agreement to dispose of the carcass.
The Insured shall dispose of the salvage [to the best advantage] or [according to the Company’s instructions] and the amount realized shall belong to the Company. However, the Insured shall take all reasonable measures to avoid or minimize the loss.
Sale, mortgage, lien or charge
Unless expressly described as such in this Policy or by endorsement hereon, no sum shall be payable hereunder by way of indemnity, compensation or otherwise in respect of any Livestock which, during the currency of the period of insurance stated in the Schedule:
a) The Insured sells or otherwise parts with any interest hereon, whether temporarily or permanently or
b) Is subject to any mortgage, instrument by way of security, lien or charge or is held (whether by the Insured or by any other person whatsoever) on trust, hire or commission.
Provided however that the Policy will continue to insure a sold stock of Livestock remaining inside the Insured premises, which is awaiting delivery to the buyer. It is however a condition that such stock is kept under the same good management practice as any unsold stock.
The basic premium and the level of premium payable at the start of the insurance is 100 % of the base premium. The premium for subsequent insurance years takes account of any claims made and is adjusted annually.
If no claims leading to indemnification have been made in the insurance period, the insured is entitled to pay a lower level of premium for the next year of insurance unless he is already on the lowest level.
If one or more claims resulting in indemnification are made during the insurance period, this will result in an increase of the existing premium by one level for the following year of insurance, with the highest level as maximum.
If the loss occurs in the time between making the application and the start of the insurance, account will be taken of this fact by means of a further adjustment in the premium.
No change in premium will be made in the following cases:
– If the claim proves not to be covered;
– If the claim is less than the amount of the respective deductible.
FULL DESCRIPTION OF LIVESTOCK TO BE INSURED