GLOBAL FIDELITY INSURANCE
An asterisk * indicates that the
term is defined in 18, Definitions
This being a translation,
the original Swedish wording
shall always prevail
1. Insureds and Insured activity
2. Geographical scope
3. When the Insurance applies
4. What the insurance covers
5. What is not covered by the insurance
6. Security regulations
7. Sum insured
9. Incorrect and incomplete information
10. Claims procedure
11. Indemnity rules
13. War or riot
14. Force majeure
15. Adjustment of premium
16. Cancellation of the insurance
17. Procedure in the event of a dispute and choice of law
1. INSUREDS AND INSURED ACTIVITY
The insurance covers the policyholder and co-insured companies*.
1.2 Insured activity
Except as otherwise stated in the policy, the insurance applies to the activity
carried on by the Insured during the policy period. The insurance also applies to
activities previously carried out by the Insured, unless otherwise agreed.
1.3 Cover for additional companies or activities
An additional activity arising during the policy period will be covered by the
insurance. The insurance also covers any company acquired or established
during the policy period where the Insured's share of the votes exceeds 50%
from the time of acquisition or establishment (see, however, 1.4 Increase in risk).
It is the responsibility of the policyholder to notify TeliaSonera Insurance
Company Ltd as soon as possible of any such change.
1.4 Increase in risk
When an additional activity or company has a degree of risk exposure or a
claims experience which entails an increased risk, an agreement about the
insurance conditions and the premium shall be reached within ninety days of the
start of the activity or the acquisition or establishment of the company. If no
agreement is reached, TeliaSonera Insurance Company Ltd will be entitled to
cancel retroactively the cover for an additional activity or company.
1.5 Cover for companies disposed of
Unless otherwise agreed, the insurance cover will cease to apply to an insured
company which is disposed of during the policy period. Cover will cease from the
time of disposal.
2. GEOGRAPHICAL SCOPE
The insurance covers loss which occurs in the geographical scope specified in
3. WHEN THE INSURANCE APPLIES
The insurance covers loss discovered during the policy period or not later than
twelve months after the insurance contract expires (extended period of
discovery). The act which resulted in the loss must have been committed after
the inception date of the insurance or other point in time specified in the policy
(retroactive date). In the case of discovery during the extended discovery period,
the act must have been committed during the period when the insurance was in
If the act was committed during the retroactive period*, the insurance will only
apply if the Insured is able to show that he was not aware on the inception date
of the circumstance underlying the loss.
The policy period starts from 00.00 hours local time on the inception date and is
one year, unless otherwise stated in the policy.
If P & C Insurance's liability will commence at the start of the policy period,
provided that the premium is paid within fourteen days after it has sent out the
premium notice. If payment is made later, If P & C Insurance's liability will not
commence until the day after payment.
4. WHAT THE INSURANCE COVERS
In the event of a loss arising from a criminal act* covered by the insurance which
exceeds the agreed deductible, TeliaSonera Insurance Company Ltd undertakes
to provide indemnity for the loss specified in clauses 4.1.1 and 4.1.2.
In the event of claims for damages referred to tin clauses 4.1.1 and 4.1.2,
TeliaSonera Insurance Company Ltd also undertakes to investigate whether
liability exists, to negotiate with the party claiming damages ant to represent the
Insured in legal or arbitration proceedings and tin this connection pay any court
or arbitration costs which the Insured incurs or is ordered to pay and which
cannot be obtained from the opposite party or from any other party.
4.1.1 Crime committed by an employee*
Loss - including liability for damages under the current national legislation
relating to damages - which an employee (see, however, 5.1.8 Persons
excluded) of an Insured inflicts on the latter as a result of a criminal act in the
course of his employment if the act was committed for the purpose of personal
financial gain (see, however, 5.1.9. Emoluments) for someone other than the
A condition of the loss being covered by the insurance is that the employee has
been convicted of the crime by due process of law or - in the absence of such
conviction - the investigation presented by the Insured makes it probable beyond
all reasonable doubts that the crime was committed by an employee of the
With regard to loss arising from trade involving any kind of securities, currencies,
commercial goods, raw materials and similar products and with regard to loss
due to any kind of credit, indemnity will be provided for the loss only if the
employee intended to inflict such loss on the Insured or other person and to
secure personal financial gain for himself ant the act also resulted in such
financial gain (see, however, 5.1.9 Emoluments).
4.1.2 Computer crime* committed by third party*
Loss - including liability for damages under current national legislation relating to
damages - which a third party inflicts on the Insured as a result of computer
crime if the crime was committed for the purpose of personal financial gain for
someone other than the Insured.
5. WHAT IS NOT COVERED BY THE INSURANCE
5.1.1 Previous criminal acts
The insurance does not apply when an employee who has previously committed
a criminal act for which indemnity would have been payable under these
conditions and of which the Insured's supervisory or works management is aware
recommits such an act.
5.1.2 Subsequent criminal acts
If the Insured's supervisory or works management has discovered that a
particular employee has committed a criminal act in the course of his
employment, the insurance will not apply to criminal acts subsequently
committed by the employee.
5.1.3 Interests etc.
The insurance does not cover loss of interest or other financial consequential
loss arising as a loss of money or securities.
The insurance does not cover loss which is discovered only in the course of an
inventory, unless a specific occasion on which a crime was committed can be
5.1.5 Investigational and auditing costs
The insurance does not cover investigational and auditing costs incurred for the
purpose of determining whether a loss qualifying for indemnity exists or for the
purpose of determining the extent of the loss, even if these costs have arisen in
connection with legal proceedings. This does not apply in the event of a claim for
damages against the Insured.
5.1.6 Indirect losses etc.
The insurance does not cover indirect losses such as loss of profit, income or
interest, loss of computer use or time, goodwill, or damages and penalties
payable under contract law.
5.1.7 Other insurance
The insurance does not cover loss which is covered by another insurance.
5.1.8 Persons excluded
The insurance does not cover loss caused by someone who has more then 15%
of the voting power of the Insured's shares.
The insurance does not apply when the financial gain consists only of salary or
wages, a fee, a commission, a bonus, promotion or similar emolument.
The insurance does not cover loss caused by an employee if it results from the
fact that the employee has been given authorisation to reconcile an account for
which he has also been authorised to issue cheques without a counter-signature
or to request transactions on his own.
The insurance does not cover loss caused by an employee as a result of his
being subject to extortion by someone who is not an employee.
6. SECURITY REGULATIONS
At least once during each policy period the Insured shall carry out an inventory of
stock, machinery and equipment and, in general, conduct the audits and controls
that are customary in his line of business (see further 6.5).
The Insured shall ensure that a system of access control is observed (see further
The Insured shall ensure that there is a written data security policy issued by the
management (see further 6.5).
The Insured shall ensure the observance of written rules governing the
documentation of systems, programs and computer operation and the
observance of written rules governing procedures and the responsibility for the
modification, distribution and storage of this documentation (see further 6.5).
if the Insured neglects his obligations in clauses 6.1-6.4, TeliaSonera Insurance
Company Ltd will be entitled to reduce the amount of indemnity or to exemption
from liability insofar as the negligence has been to is disadvantages.
7. SUM INSURED
The sum insured stated in the policy is the maximum aggregate amount payable
for each loss.
Where the policy specifies a "total sum insured", this refers to the total amount
payable for all losses during the policy period.
With regard to claims for damages, the sum insured comprises the total costs
thereof, including interest, investigations, negotiations, arbitration and legal
If a particular employee has committed criminal acts on different occasions and
these acts are considered to be identical in kind, they shall be regarded as one
and the same loss, with If P & C Insurance's liability being limited to a single sum
The deductible specified in the policy shall, in each case of loss, be deducted
from the amount of the claims.
9. INCORRECT AND INCOMPLETE INFORMATION
The premium and insurance conditions are based on the information supplied
when the insurance was taken out or renewed. If the Insured has supplied
information that he knew or should have known to be incorrect or incomplete,
resulting in too low a premium or too favourable conditions, If P & C Insurance's
liability will be limited to that it correspond to the premium paid and the conditions
which should, in fact, have applied. If If P & C Insurance, being aware of the
actual circumstances, would not granted insurance, it will be exempt from liability.
10. CLAIMS PROCEDURE
10.1 Notification of loss
If the Insured discovers that a criminal act has been committed which may result
in loss, he shall inform TeliaSonera Insurance Company Ltd of this event without
delay. The Insured shall take any measures within his power to limit or avert the
10.2 Indemnity claim
The Insured shall - except in the event of a claim for damages - investigate the
size of the loss.
The Insured shall also make available all documents and provide other
particulars that have a bearing on the assessment by TeliaSonera Insurance
Company Ltd of the indemnity claim. In the event of a claim for damages, the
Insured shall also carry out any enquiries, analyses and investigations which
have a bearing on the assessment of the loss and the liability of the Insured and
which can be carried out within the Insured's business.
The Insured shall request a police investigation if TeliaSonera Insurance
Company Ltd considers this to be necessary.
10.3 Neglect of obligations
If the Insured neglects his obligations as set out in clauses 10.1 and 10.2 above,
TeliaSonera Insurance Company Ltd will be entitles to reduce the amount of
indemnity or to exemption from liability insofar as the negligence has been to its
10.4 Settlement of action
The Insured is not entitled without the consent of TeliaSonera Insurance
Company Ltd to admit liability for damages, approve a claim for compensation or
to pay compensation. Should the Insured fail to comply with this provisions,
TeliaSonera Insurance Company Ltd will be exempted from liability unless the
claim was clearly founded in law.
If TeliaSonera Insurance Company Ltd has declared itself willing to reach a
settlement with the claimant, it will be exempted from any liability to pay
compensation in excess of the amount at which a settlement could have been
reached as well as to meet any costs arising thereafter and to undertake a
10.5 Fraudulent information
If the Insured fraudulently states, omits to mention or conceals anything that has
a bearing on the assessment of the loss, the right to indemnity may be affected
or be forfeited.
11. INDEMNITY RULES
11.1 Recovered property
The policyholder has a prior right over TeliaSonera Insurance Company Ltd to
benefit from the value of property (including money) which is recovered to the
extent that the total amount of the claim exceeds the sum insured plus the
deductible. TeliaSonera Insurance Company Ltd is entitled to benefit from the
remainder, up to the amount of indemnity paid out. Finally, the Insured is entitled
to benefit from indemnity corresponding to the deductible paid.
If property for which indemnity has been paid is recovered, it shall be placed at If
P & C Insurance's disposal as soon as possible. However, the Insured may keep
the property if he repays without delay the indemnity received for it.
11.2 Claim by an employee
When calculation the size of the claim, a deduction shall be made - to the extent
this is legally possible - for any claim on the Insured held by the employee who
has committed the act.
To the extent that it has paid indemnity, TeliaSonera Insurance Company Ltd
assumes the right of the Insured to claim compensation from the party
responsible for the loss.
13. WAR OR RIOT
No indemnity will be paid for loss whose origin or extent is directly or indirectly
caused by or connected with war, hostilities, civil war, revolution, rebellion or riot.
14. FORCE MAJEURE
No indemnity will be paid for loss which may arise if the investigation of the claim,
the payment of indemnity or repair of damaged property is delayed because of
war, hostilities, civil war, revolution or rebellion or as a result of the action of the
authorities, strike, lockout, blockade or other similar event.
15. ADJUSTMENT OF PREMIUM
Except as otherwise stated in the policy, the premium paid at the start of each
policy period is provisional and will be adjusted after the expiry of the policy
period. The final premium is calculated on the basis of particulars requested by If
P & C Insurance. These particulars shall be supplies by the Insured within five
months of TeliaSonera Insurance Company Ltd requesting them.
16. CANCELLATION OF THE INSURANCE
In the event of a delay in the payment of premium, TeliaSonera Insurance
Company Ltd will be entitled to cancel the insurance at three days' notice.
In the event of a claim, both the policyholder and TeliaSonera Insurance
Company Ltd will be entitled to cancel the contract at ninety days' notice.
If the insurance is cancelled by If TeliaSonera Insurance Company Ltd, the
premium paid for the remainder of the policy period shall be repaid.
If the insurance is cancelled by the policyholder, TeliaSonera Insurance
Company Ltd shall repay 75% of the premium which relates to the remainder of
the policy period.
17. PROCEDURE IN THE EVENT OF A DISPUTE AND CHOICE OF
Any dispute about the existence and vality of the insurance contract or about the
application and interpretation of the conditions of the insurance contract shall be
resolved by arbitration in accordance with the Insurance Arbitration Rules of the
Arbitration Institute of the Stockholm Chamber or Commerce. Swedish law will
18.1 Co-insured companies
Co-insured companies is understood to mean companies in which the Insured at
the inception of the insurance controls more than 50% of the votes.
18.2 Retroactive period
Retroactive period is understood to mean the period of time from the retroactive
date specified in the policy to the inception date of the insurance.
18.3 Criminal act
Criminal act is understood to mean an act which, according to current national
legislation, constitutes a crime for which the perpetrator has been convicted by
due process of law or - in the absence of such conviction - in respect of which
the investigation presented by the Insured makes it probable beyond reasonable
doubt that the crime was committed by the perpetrator.
An employee is understood to mean
- an individual who performs duties in the Insured's normal business if
payment for his work is made by the Insured,
- a student doing practical work for the Insured,
- a board member, insofar as he is carrying out his duties on behalf of the
- an individual who is temporarily made available to the Insured by an
employment office or similar agency for the performance of duties normally
carried out by employees. However, the insurance only covers loss caused
by such a person if no indemnity for it is obtainable under another
insurance taken out by the agency supplying the labour on behalf of the
An employee is also understood to mean anyone previously employed by the
Insured, provided that no more than thirty days have elapsed since the
18.5 Computer crime
Computer crime is understood to mean a criminal act caused by an unauthorised
person gaining access to, recording, modifying, withholding, removing or erasing
data or computer programs in the Insured's computer system.
18.6 Third party
A third party is understood to mean an individual who is not to be regarded as an
18.7 Computer system
A computer system is understood to mean the Insured's computers, terminals,
input media, input, data communication lines and modems, documentation,
computer programs and output.