K. M.

DASTUR REINSURANCE
BROKERS PRIVATE LIMITED,
MUMBAI

REINSURED:

SHIKHAR INSURANCE COMPANY LIMITED,

KATHMANDU, NEPAL

PERIOD:

Losses occurring during the period from 17thJuly, 2009 to

16th July, 2010.

TYPE OF TREATY:

FIRE RISK EXCESS OF LOSS REINSURANCE

CLASS:

All Direct insurance written and Facultative reinsurance

accepted by the Reinsureds Fire/IAR department, which
are retained for the Net Account

TERRITORIAL SCOPE:

Nepal and SAARC countries and / or Nepalese interest

abroad, excluding USA & Canada.
Including policies from other countries in respect
International program of Nepalese domicile original
Insureds, Subsidiary companies of Nepalese domiciled
clients and overseas joint venture interests of Nepalese
clients is construed as Nepalese interest abroad.

LIMIT

Layer I
To Pay up to N. Rs. 2,000,000 Ultimate Net Loss, each and
every loss
Excess of N. Rs. 1,500,000 Ultimate Net loss, each and
every loss
Layer II
To Pay up to N. Rs. 2,000,000 Ultimate Net Loss, each and
every loss
Excess of N. Rs. 3,500,000 Ultimate Net loss, each and
every loss
Layer III
To Pay up to N. Rs. 4,500,000 Ultimate Net Loss, each and
every loss
Excess of N. Rs. 5,500,000 Ultimate Net loss, each and
every loss
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K. M. DASTUR REINSURANCE
BROKERS PRIVATE LIMITED,
MUMBAI

REINSTATEMENT:

Layer I
Two at 100% additional premium pro rata as to amount
reinstated
Layer II
One at 100% additional premium pro rata as to amount
reinstated
Layer III
One at 100% additional premium pro rata as to amount
reinstated

MINIMUM &
DEPOSIT PREMIUM:

Layer I
N. Rs. 300,200 payable in two equal installments on 17th
July 2009 and 17th Jan 2010 and adjustable at 3.16% of
GNPI
Layer II
N. Rs. 143,450 payable in two equal installments on 17th
July 2009 and 17th Jan 2010 and adjustable at 1.51% of
GNPI
Layer III
N. Rs. 169,100 payable in two equal installments on 17th
July 2009 and 17th Jan 2010 and adjustable at 1.78% of
GNPI

TAXES/CHARGES:

2.50% (1.00 % levy on premium to Beema Samiti + 1.50%

tax)

BROKERAGE:

10.00% (Nil on Reinstatements)

WORDING:

To be agreed with Leading Reinsurer only

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K. M. DASTUR REINSURANCE
BROKERS PRIVATE LIMITED,
MUMBAI

GENERAL CONDITIONS:
1. Reinsured to be sole judge as to what constitutes one
risk
2. Ultimate Net Loss Clause
3. Net Retained Lines Clause
4. Local Jurisdiction Clause [Proper Law and Jurisdiction
governing this Reinsurance (including Arbitration
Tribunals) shall be according to Nepalese Law]
5. Claim Reporting Clause (75%)
6. Extended Expiration Clause
7. Arbitration Clause
8. Loss Settlements Clause
9. Inspection of Records Clause
10. Errors and Omissions Clause
11. Several Liability Notice LSW 1001 (Reinsurance)
12. Special acceptance to be agreed by leading reinsurer
only and binding on all following reinsurers. Renewals
of special acceptance agreed on the previous
underwriting year of the treaty to be automatically
covered and advised to the leading reinsurer.
13. Changes in Law Clause
14. Acts in Force Clause
EXCLUSIONS:
1. Obligatory Reinsurance Treaties
2. Business written on Stop Loss or Layered basis, other
than policies where underlying primary layer is in
vogue
3. War /Civil War
4. Political Risks Exclusion Clause (as attached)
5. IT Hazards Clarification Clause NMA 2912
6. Nuclear Energy Risks (Reinsurance) (1984)
(NMA1975A)
7. Business accepted by the Reinsured in any Pooling
arrangement
8. Crop Insurance
9. Terrorism Exclusion Endorsement (Reinsurance)
10. Riots, Strikes and Malicious Damage (RSMD)
11. Seepage and Pollution
12. Casualty Exclusion Clause
13. Transmission and Distribution Lines other than agreed
by Nepalese Fire Tariff.
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K. M. DASTUR REINSURANCE
BROKERS PRIVATE LIMITED,
MUMBAI

INFORMATION:

1) Estimated G.N.P.I. NRs 9,500,000

2) Reinsureds Maximum Net Retention
N. Rs 10,000,000

LEADER:

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K. M. DASTUR REINSURANCE
BROKERS PRIVATE LIMITED,
MUMBAI

Political Risks Exclusion Endorsement (Reinsurance)

Notwithstanding any provision to the contrary within this reinsurance or any endorsement
thereto it is agreed that this reinsurance excludes loss, damage, cost or expenses of
whatsoever nature directly or indirectly caused by, resulting from or in connection with
any of the following regardless of any other cause or event contributing concurrently or
in any other sequence to the loss :
1) War, invasion, act of foreign enemy, hostilities or warlike operations (whether war
be declared or not), civil war, permanent or temporary dispossession resulting from
confiscation, commandeering, requisition or destruction of or damage to property by
order of the government de jure or de facto or by any public authority. Mutiny, civil
commotion assuming the proportions of or amounting to a popular rising, tribal
rising, military rising, insurrection, rebellion, revolution, military or usurped power,
martial law or state of siege or any of the events or causes which determine the
proclamation or maintenance of martial law or state of siege; or
2) Any act of terrorism.
For the purpose of this endorsement an act of terrorism means an act, including but
not limited to the use of force or violence and/or the threat thereof, of any person or
group(s) of persons, whether acting alone or on behalf of or in connection with any
organization(s) or government(s), committed for political, religious, ideological, or
ethnic purposes or reasons including the intention to influence any government and /
or to put the public, or any section of the public, in fear.
This endorsement also excludes loss, damage, cost or expense of whatsoever nature
directly or indirectly caused by, resulting from or in connection with any action taken
in controlling, preventing, suppressing or in any way relating to (1) and /or (2) above.
If the Reinsurer alleges that by reason of this exclusion, any loss, damage, cost or
expense is not covered by this reinsurance the burden of proving the contrary shall be
upon the Reassured.
In the event any portion of this endorsement is found to be invalid or unenforceable,
the remainder shall remain in full force and effect.

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