RULINGS AND APPLICATION

1. Unattended Cloakrooms. In two separate cases legal authority ruled that a mess incurs no legal liability in providing an unattended cloakroom. Therefore an individual cannot make a claim against a mess as a result of any loss therefrom. To preclude the filing of unnecessary claims and the attendant discussions of "moral responsibility" it is suggested that a sign be placed in the cloakroom disclaiming liability. Additionally liability can be denied in an attended cloakroom if a sign is displayed disclaiming responsibility for articles left therein. A suggested format is "Articles Left at Owner's Risk".

2. Repeated Losses. Repeated losses occurring in the same location under essentially the same circumstances may be deemed to be the result of mismanagement and hence a normal trade loss. For example, a location experienced thefts by persons unknown at regular intervals over an 18 month period. As the procedures used in each theft were virtually identical and no apparent changes in security measures were instituted the losses were deemed to have resulted from normal trade practices and were not reimbursed.

3. Repairs to Damaged Property. It is the claimant's responsibility to minimize the amount of any loss. Therefore when property has been damaged the claimant must have it repaired as soon as practicable after the amount of the loss has been established.

4. Joint Liability. Where it has been determined that liability for a claim is to be borne jointly by two or more entities then each portion of the loss will be treated as a separate claim. For example, a claim for public liability was decided in the courts as 50 per cent NPF liability and 50 per cent Crown liability. For NPF CIP purposes the 50 per cent NPF liability is deemed to be the whole claim and the deductible applied accordingly. Note, however, that if the two entities were both NPF activities the deductible would only be applied once to the occurrence.

5. Lightning Strikes. Lightning strike and consequential damage resulting therefrom is insured.

6. Improperly Secured Cash. Losses that fall under this category will not be covered under the NPP CIP. See Annex K, para 7.

7. Portable Attractive Items. Valuable, expensive portable items are to be secured in place by bolt, screw or chain and padlock to hinder or prevent theft, eg, microwave ovens.

8. Normal Trade Loss. See non-exhaustive definition in Annex P.

9. Honour Bars. "Honour Bars" by their nature are open-ended arrangements, which unless adequate physical security, accounting, and control measures are adopted and enforced may lead to insurance claims which are deemed to be of the type classed as normal trade loss. (See paragraph 8.)