Do you have an IAR policy?
A brief, but very important article to highlight that not all local insurance policies offer an Industrial All Risk, or IAR policy, as they say they do.
Fundamentally, an IAR policy, which is sold in Kenya, should cover any loss or damage unless specifically excluded, such as War, Terrorism, nuclear attacks, etc. All the JWS bespoke policies do and are exactly as they should be. Unfortunately, this is not always the case with local market policies, so please be very careful when buying these policies.
We have looked at three well known policies and have questioned the Insurers as to whether the policies provide exactly what the client expects. The wordings are almost identical, which is no surprise considering the policies are downloaded from the Regulators web site, and so the same gaps exist in each of them.
Two Insurers are presently reviewing before answering and one has confirmed, in their words…’to be honest, you are correct, and I personally struggle with the structure of the policy’. Then signing off saying ‘I would rather we forgot about this policy and the errors and work on a specific cover with you’! Fundamentally there are flaws in their policies and they have asked us to correct them.
So, if you have a local IAR policy wording, and you would like us to highlight the gaps in cover for you, please contact us as usual at [email protected].