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Section 3 – Special Exclusions

This part does not cover:

1. Application of Systems of Selection and Control
any loss arising out of any act of fraud or dishonesty committed by any Person Insured in respect of whom
the Systems of Selection and Control have not been properly applied or applied at all and this exclusion will
be a bar to any claim involving such a Person Insured acting in collusion with another or others even though
the Systems of Selection and Control have been properly applied to such other person.

This exclusion will not be a bar to any claim if you can demonstrate that proper application of the
Systems of Selection and Control would not have revealed any reason why the Person Insured should
not have been appointed to the position of trust held at the time of fraud or dishonesty

2. Consequential Loss
any loss of interest or consequential loss of any kind

3. Exercise of Systems of Selection and Control
any loss arising out of or contributed to by you failing to exercise properly the Systems of Selection and
Control other than as specifically referred to in 1. above

4. Reasonable Grounds for Suspicion
any loss arising out of any act of fraud or dishonesty committed by any Person Insured after you or any
person acting on your behalf has become aware of or has reasonable grounds for suspicion of any act
of fraud, dishonesty or improper or irregular conduct on the part of that Person Insured and this
exclusion will also be a bar to any claim involving such a Person Insured acting in collusion with another
or others even though such other person may not have committed or have given reasonable grounds
for suspicion of any act of fraud or dishonesty or irregular conduct.

Section 4 – Special Provisions

1. Our Rights
The commencement of criminal proceedings against any Person Insured alleged by you to have
committed any act of fraud or dishonesty will not be a condition precedent to your right to indemnity
under this part but in the event of us being required to indemnify we will be entitled to exercise in
your name but at our own expense and for our own benefit all your rights of action against the
Person Insured or their estate. This policy will be evidence of our leave so to do and you will provide
all such assistance as we may require in pursuit of the said rights.

2. Limit of Indemnity
The limit of indemnity stated in the schedule is our monetary limit in respect of:

a) any one loss irrespective of the number of Persons Insured involved
b) the total of all losses discovered during any one period of insurance. Any losses discovered within
the 24 month period allowed under section 2 c) will be treated as having been discovered during
the final period of insurance
c) our total liability during any number of periods of insurance and for any number of losses forming
the basis of any one claim whether under this part or any similar policies issued in addition to them
or in substitution for them.

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