WIXLIB

Limit of liabilitylimit of liability means the total aggregate liability we willreimburse the insured and shall not exceed the Limit of Liabilitystated in the schedule.Period of insuranceperiod of insurance means the Period of Insurance stated inthe schedule.Our AgreementSubject to the prior payment of or the insured’s agreement to paythe premium set out in the schedule, we agree with the insured toprovide insurance as set out in this policy.In issuing this policy, we rely on the information contained in theproposal form and or any other information given by or on behalf ofthe insured which shall be the basis of the contract.Propertyproperty means currency, coin, bank notes, bullion, negotiable andnon-negotiable instruments, goods or other items either belonging to,or in the care, physical custody or control of the insured and for whichthe insured is legally liable other than property excluded by this policy.Scheduleschedule means the Schedule attaching to and forming part ofInsuring ClauseSubject to the limit of liability stated in the schedule and the termsand conditions of this policy, we will reimburse the insured for lossof property which:(a) directly results from a dishonest act of an employeecommitted alone or in collusion with others; andthe policy wording, including any renewal schedule.Subsidiary companysubsidiary company means a company or legal entity in respectof which the first named insured named in the schedule directlyor indirectly:(b) is discovered during the time limitations.Limitations of Cover1.Excess(a)(a) controls or controlled the composition of the board ofpart of loss which exceeds the excess and such excessdirectors; and/orshall be borne by the insured uninsured and at theinsured’s own risk.(b) controls or controlled more than half of the voting power; and/or(b)(c) holds or held more than half of the issued share capital orunder a prior policy containing an excess amount,and shall in any event include any company or legal entity whosethe excess amount specified in the schedule shall befinancial accounts are required to be consolidated with those ofreduced by the excess amount applied to such loss bythe first named insured pursuant to the Corporations Law or thethe prior policy.applicable Australian accounting standard.time limitations means the period of insurance and the earlier ofeither 12 months after the expiration of the period of insurance orthe period up to the date upon which the employee committing aShould any loss be discovered which is partlyrecoverable under this policy and partly recoverableother ownership of the entity,Time limitationsOur liability under this policy shall apply only to that2.Limit of liability(a)We shall not be liable for more than the limit of liabilitystated in the schedule for any loss:(i)arising directly or indirectly from any oneemployee or any number of employees acting indishonest act is terminated.collusion, or in respect of which the employee isimplicated regardless of whether the dishonestact was committed or the loss occurred duringmore than one period of insurance; and(ii)in respect of one dishonest act or series ofdishonest acts arising from the one sourceor original cause, regardless of whether thedishonest act was committed or the loss occurredduring more than one period of insurance.Page of 12

(b)Where more than one dishonest act is committed and/or loss occurs during more than one period of insurance,the dishonest act is deemed to have been committedExtensions of Cover1.on the date of the first dishonest act or alternatively theto the policy or new subsidiary company formed or acquired,loss is deemed to have occurred on the date upon whichcoverage is provided for:the first loss occurred.3.(a)Non-accumulation of liability(a)Additional insureds – Liability for prior lossesIf during the period of insurance an additional insured is addedaddition; andRegardless of the number of years coverage shall(b)continue in force and the number of premiums whichwhatsoever, our liability with respect to any loss orProvided that:losses shall not be cumulative from one period of(i)insurance to another period of insurance. Where thereis more than one insured, our aggregate limit of liabilityfor loss or losses sustained by any or all of them shalland there is continuity of cover from the date the lossnot exceed the amount for which we would be liable ifwas sustained to the effective date of the inclusion; and(ii)the loss is discovered within the time limitationsOur total aggregate limit for losses under this policy orprovided by this policy if it would have been coveredany other fidelity policy issued by the Zurich Group ofunder the prior policy, except for the fact that it wasinsurance companies in respect of the same period ofdiscovered after the time limitations under that policyinsurance shall not exceed the aggregate limit of liabilityhad expired; andset out in the schedule of this policy.(iii)the amount payable shall form part of and will not be inaddition to the limit of liability; andTerritorial and Jurisdictional limitsThis policy shall apply to dishonest acts committed within the5.the additional insured carried a policy providingcomparable cover prior to the inclusion under this policyall losses were sustained by any one of them.4.any losses sustained prior to the effective date of suchaddition or acquisition,shall be payable or paid or any other circumstances(b)any losses sustained after the effective date of such(iv)the loss would have been covered under this policy ifTerritorial and Jurisdictional Limits specified in the schedule.this policy with its terms, conditions and exclusions asValuation and Foreign currencyat the date of substitution had been in force when theWe shall not be liable under this policy for more than;dishonest act causing the loss was committed; and(a)the actual market value of lost, damaged or destroyed(v)securities at the close of business on the business dayThe amount payable under this extension will not exceed theimmediately preceding the day on which the loss islesser of:discovered, or for more than the actual cost of replacing(1)the securities, whichever is less;(b)had applied at the date of discovery of the loss; or(2)or other records;the Australian dollar value of a foreign currency basedon the rate of exchange published in The AustralianFinancial Review on the day any loss involving foreigncurrency is discovered.the amount which would have been payable under theprior policy if the prior policy had continued in force orthe cost of blank books, pages, tapes or other blankmaterials to replace lost or damaged books of account(c)the loss has not been notified to any other insurer.2.the limit of liability at the date of substitution.Claims preparation costsWe agree to reimburse the insured for an amount no greaterthan the amount of loss payable under this policy, for thereasonable costs incurred in substantiating a loss.Provided that the amount payable under this extension shallbe part of and not in addition to the limit of liability specifiedin the schedule.This extension shall not apply in respect of any loss which doesnot exceed the excess.Page of 12

3.Continuity of cover5.Reinstatement of the limit of liabilityIf this policy has been substituted for any prior policy providingIn the event of the insured successfully making a claim undercomparable cover held by the insured with any other insurerthis policy, the limit of liability shall be reinstated for theand there is unbroken continuity of cover apart from theamount required to restore the limit of liability to the amountsubstitution, this insurance applies to any loss discoveredstated in the schedule.within the time limitations provided by this policy if it wouldProvided that:have been covered under the prior policy except for the fact(a)that it was discovered after the time limitations under thatan amount equal to the limit of liability;policy had expired.(b)Provided that:(a)the amount payable shall form part of and will not be inthe loss would have been covered under this policy ifthis policy with its terms, conditions and exclusions asat the date of substitution had been in force when thedishonest act causing the loss was committed; and(c)the amount payable will not exceed the lesser of:(i)the amount which would have been payableunder the prior policy if the prior policy hadcontinued in force or had applied at the date ofdiscovery of the loss; or(ii)(d)the limit of liability at the date of substitution; andthe loss arises from a dishonest act committed after theRetroactive Date in the schedule, and(e)4.the loss has not been notified to any other insurer.Merger, takeover, sale, winding-up of insuredIf, during the period of insurance, the insured is subject to amerger, takeover, sale or winding-up, or the responsibilitiesof any insured are fully assumed by any other person and/orentity, then coverage shall continue through to the expiryof this policy, and apply only to loss sustained prior to theeffective date of the merger, takeover, sale or winding-up orassumption of responsibilities.Page of 12our liability in respect of more than one loss arisingfrom the same source or cause shall not exceed thelimit of liability.addition to the limit of liability; and(b)the aggregate of amounts so reinstated shall not exceed6.Unidentifiable employeesIf a loss is alleged to have been caused by the fraud ordishonesty of any one or more of the employees and theinsured shall be unable to designate the specific employeecausing the loss, the insured’s claim in respect of such lossshall not be invalidated by their inability to do so, provided theinsured is able to furnish evidence to prove to us that the losswas in fact due to the fraud or dishonesty of one or more ofits employees.

Exclusions10.loss arising from the complete or partial non-payment of orWe will not pay anything in respect of any:1.caused by a mechanical failure and/or programming errors.2.Other insuranceliability for which the insured is entitled to claim under anyother policy but subject always to the provisions of theInsurance Contracts Act 1984 (as amended).12.or punitive damages.Professional liabilityloss arising out of a breach of duty owed in a professionalDamagesloss which wholly or in part consists of exemplary, aggravatedcapacity by the insured.13.Subsequent lossesloss arising from any dishonest act committed by an employeeFraudulent claimsafter the insured has discovered any other dishonest acts byfraudulent claim or claims made by or involving any fraudulentthe employee.means or devices used by the insured or any person acting onthe insured’s behalf to obtain any benefit under this policy orany loss giving rise to a claim under this policy caused by orwith the collaboration of any insured.5.11.loss involving the cost of reproducing any informationaccounts, microfilms, tapes or other records.4.accounts or invoices or other transactions of similar character.Cost of reproducing informationcontained in any lost or damaged manuscripts, records,3.default on any loan, extension of credit, discounted or acquiredComputer virusloss or part of a loss arising out of any computer virus or lossNon-payment / Default of loan14.Trading lossesloss resulting directly or indirectly from trading in securitiesor derivatives whether or not in the name of the insured andwhether or not in a genuine or fictitious account.Inventory / Profit and lossloss or part of a loss where proof of its existence or amountdepends on any comparison of inventory records with aphysical count or a profit and loss computation.Exclusion 5. does not apply to the extent that the insured canprove the existence or amount of the loss through evidencewholly independent of the comparison or computation.6.Knowledge of prior theftloss caused by an employee if an elected or appointed officerof the insured possessed at any time knowledge of any act oracts of theft, fraud or dishonesty committed by such employeeduring the term of the employment of such employee, or priorto employment by the insured, provided that such conductinvolved property valued at 25,000 or more.7.Legal proceedingscosts incurred by the insured in connection with any legalproceeding.8.9.Loss of potential income(a)loss of potential income not in fact earned; or(b)other consequential or indirect loss.Loss of trade secretsloss of trade secrets, confidential processing methods or otherconfidential information of any kind.Page of 12

Claims ConditionsStandard ConditionsCompliance with the following conditions is a condition precedent to1.our obligation to indemnify the insured under this policy.1.Cancellation(a)in writing to us;Reporting(b)On discovering a loss or circumstances likely to give rise to aloss the insured must:(a)give immediate notice to us;(b)within 120 days provide to us a written statement1984 (as amended), such cancellation to take effectwithin 30 days from the time of notification received bythe insured;(c)of the loss and all other relevant information;complete any claim form or sworn proof of loss that weunexpired period of insurance;(d)provide full assistance and cooperation to us in2.(e)take all reasonable steps to obtain recovery of the lossand prevent any further loss.Upon cancellation by us a refund of premium will beallowed pro rata for the unexpired period of insurance.2.Misrepresentation, Misdescription, Non-disclosureWe may, if they so choose, proceed to conduct the defence ofThis policy is voidable in the event of fraudulentany claim made against an insured, and shall in any event retainmisrepresentation, misdescription or non-disclosure. We maythe right to actively participate in the defence. The insured shalldeny a claim or reduce a claim amount if the insured has failednot admit liability for or settle any claim under this policy orto comply with the duties of utmost good faith or disclosureincur any costs or expenses without our prior written consent.or if the insured has made a false statement to us before theSuch consent shall not be unreasonably withheld.contract was entered into. In determining whether any non-Subrogationdisclosures or representations are grounds for not meeting(a)(b)(c)The insured will do and permit all things and executea claim or reducing the claim amount we shall rely upon theall documents reasonably required by us to enable us torelevant provisions of the Insurance Contracts Act 1984 (aspursue any recovery rights in respect of the loss.amended).To the extent allowed by law, the insured will retain3.Change of riskall amounts payable to and property of any employeeEvery change materially affecting the facts or circumstances,implicated in the loss, which may be in or come to thedegree or amount of risk existing at the commencement ofinsured’s possession or under the insured’s control andthis insurance or at any subsequent renewal date, shall bewill apply the amounts or property towards makingnotified in writing to us as soon as such change comes to thegood the loss.notice of the insured or any officer or representative of theinsured. On receipt of such notice we may vary the terms ofAll recoveries whether made by the insured or us will bethis policy and/or charge such additional premium as we mayapplied to reimbursement in the following priorities:(i)(ii)(iii)all costs incurred in effecting the recoveries;(iv)determine appropriate in the circumstances.4.Singular and pluralto the insured to the extent that the loss exceedsExcept where the context otherwise requires, a reference tothe limit of liability;the singular includes the plural and vice versa.to us to the extent that it has indemnified theinsured under this policy;Page 10 of 12We will be entitled to retain any tax owing for which weare unable to obtain a refund;investigating the loss; and(e)Upon cancellation by the insured a refund of premiumwill be allowed pro rata of 70% of the premium for themay require;(d)We may cancel this policy in any of the relevantcircumstances set out in the Insurance Contracts Actcontaining details of the cause, description and amount(c)You may cancel this policy at any time by giving noticeto the insured to the extent of any excess.

5.6.Notice8.PrivacyEvery notice or communication to us shall be in writing andZurich respects your privacy. Before we collect personalsent to the office where this policy was issued.information you should know the following things:Proper law and jurisdictionWe require personal information about you to assess your(a)request for insurance and to administer the policy.The construction, interpretation and meaning ofthe provisions of this policy shall be determined inaccordance with Australian law.(b) personal information (other than sensitive informationIn the event of any dispute arising under this policy,including but not limited to its construction and/orvalidity and/or performance and/or interpretation, thesuch as health information) to your intermediary. We will also, where relevant, disclose your personalinformation, including sensitive information, toinsured will submit to the exclusive jurisdiction of anyour service providers (including loss adjusters,competent Court in the Commonwealth of Australia.7.Where relevant for this purpose, we will disclose youradministrators, reinsurers) and to our business partnersPayments in respect to Goods and Services Taxfor this purpose. By submitting your personal details,When we make a payment under this policy for the acquisition ofyou consent to those organisations collecting and usgoods, services or other supply, we will reduce the amount of thedisclosing personal and sensitive information about youpayment by the amount of any input tax credit that the insuredfor this purpose.are, or will be, or would have been entitled to under A New TaxSystem (Goods and Services Tax) Act 1999, in relation to that partners we commonly use is available on request, or onacquisition, whether or not that acquisition is actually made.our website. Go to www.zurich.com.au and click on t

About our Fidelity Guarantee Insurance About Zurich 3 How to apply for this insurance 3 Our contract with you 3 . Cost of reproducing information 9 Damages 9 Fraudulent claims 9 . appropriate for your personal objectives, needs or financial situation.