Terms and conditions of the General Third Party Liability insurance

Valid as of 01.02.2023

The terms and conditions of the LHV employer’s liability insurance describe the scope of insurance cover, what to do in the event of loss event, and the principles of compensation.

The aim of the employer’s liability insurance is to provide the employer with insurance cover in the event of an accident at work or an occupational disease, and the employer’s obligation to compensate for the damage incurred, as well as in the event of a claim for damages arising from an accident at work or an occupational disease and the employer needs legal assistance to defend against the claim.

Under these terms and conditions, the insurer will reimburse the employer for claims arising from accidents at work and for legal assistance costs incurred in defending against unfounded claims. If, in addition, insurance cover for health damage arising from occupational disease has been selected, the insurer will reimburse claims made to the employer based on the employee’s diagnosed occupational disease.

Employer’s liability insurance is necessary for all employers, as it is the employer’s responsibility to provide a safe working environment and to train employees. The damage suffered by an employee or their dependant(s) as a result of an accident at work or an occupational disease can be considerable and thus have a significant impact on the economic stability of the company.

The insurance contract is made up of an insurance policy (hereinafter the ‘policy’) and these terms and conditions of employer’s liability insurance (hereinafter the ‘terms and conditions’). The policy states the sum insured (the upper limit of compensation) and the amount of the insurance deductible (the amount the policyholder will have to pay in the event of an insured event). Before concluding an insurance contract, the policyholder must check the accuracy of the information and the suitability of the scope of the insurance cover and read the terms and conditions. In matters not covered by the insurance contract and the Terms and Conditions, the parties to the insurance contract are governed by the law of obligations and other legislation.

Insurer is AS LHV Kindlustus (hereinafter ‘LHV’).

Policyholder is the person provided in the policy who concludes an insurance contract with LHV.

Insured person is the employer, i.e. the person whose liability is insured. Insured person is the policyholder and/or the person provided in the policy.

Contact details for the insurer

Customer support
Mon–Fri 9 am–5 pm
699 9111
kindlustus@lhv.ee
lhv.ee

Claims adjustment
Mon–Fri 9 am–5 pm
6801122
kahjud@lhv.ee
lhv.ee

Definitions

A loss event is an unexpected event that results in property damage. The loss event may or may not be an insured event.
Insured person is an employee who has had an accident at work or who has been diagnosed with an occupational disease and the insured person is liable for the injury caused to the employee. In the event of the employee's death, the employee's dependents and the person who has borne the funeral expenses are also considered injured parties.
Insured object involves the proprietary obligations arising from the insured person’s civil liability under the law (hereinafter the ‘insured person’s liability’). Civil liability arising from an occupational disease (unless otherwise stated on the policy) or a work-related illness is not an insured object.
Insured event is an event established in the terms and conditions in case of which LHV must fulfil their obligations under the contract. Losses caused by the same sudden and unforeseeable event are considered as a single insured event.
Insurance cover is the insurer’s obligation, limited by the terms and conditions of the insurance contract, to pay compensation or otherwise perform the insurance contract in the event of insured events specified in the policy.
Insurance period is the period of time indicated in the policy during which the loss or damage resulting from an insured event will be compensated.
Insurance territory is the area where the insurance contract is valid.
Occupational disease an illness caused by a risk factor in the working environment or the nature of the work mentioned in the list of occupational diseases. The definition of an occupational disease stems from the Occupational Health and Safety Act. An occupational disease is a long-term health disorder, the main cause of which is a work-related physical, physiological, chemical or biological risk factor.
Employee a natural person in an employment or service relationship with the insured person; also includes member of the management board, procurator, trainee and temporary employee. Also includes persons who work for an insured person on the basis of a contract under the law of obligations (for example, an employment contract, authorization contract, agent's contract), provided that the insured person pays social tax on the basis of this contract.
Accident at work is physical harm sustained by or death of an employee which occurred while the employee was performing a job assigned by the employer or engaged in other work performed with their consent, during a break included within working hours or during other activities pursued in the interests of the employer. Physical harm or death that occurred in the cases listed but which is not causally connected to the employee's work or work environment shall not be considered an accident at work. The definition of an accident at work stems from the Occupational Health and Safety Act

1. Policyholder and insured person

   1. The policyholder is the person named in the policy who has concluded an insurance contract with LHV and who is obligated to pay the insurance premiums.
   2. The insured person is the policyholder or the person named in the policy in respect of whom the liability is insured.
   3. The policyholder is liable for explaining the terms and conditions of the insurance contract to the insured person and for complying with them.
   4. The insurance contract extends to all natural persons employed under the authority and/or on assignment of the insured person who are employed by him or her in the course of his or her economic activities in the performance of his or her work or service duties (for example, persons employed under a contract of employment, temporary agency workers, legal representatives).
   5. The insurance contract does not cover legal persons who are used by the insured person in the performance of an obligation in the course of his or her economic activities and for whose damage the insured person is liable in the same way as for damage caused by himself/herself (for example, subcontractors).

2. Insurance coverage

   1. An insured event is the occurrence of unexpected and unforeseeable proprietary damage by an insured person to a third party during the insurance period as a result of which the insured person is required to compensate for the damage. The damage caused must be causally related to the activities of the insured person set out in the insurance contract and that activity must be the cause of the occurrence of damage. The insurance contract does not extend to the contractual obligations of the insured person, unless the corresponding obligation to indemnify would arise even without the concluded contract.
   2. An insured event is not covered by the exclusions listed in clause 4 of the Terms and Conditions.
   3. Obligations to indemnify for damage caused by one and the same circumstance or event will be considered a single insured event, subject to the sum insured or the agreed indemnity limit stated in the policy and one insurance deductible. The insured event is deemed to have occurred at the time of the occurrence of the first damage (giving rise to an obligation to pay compensation) which caused the insured person to become liable for the damage.

3. Extensions to insurance coverage

   The policyholder can choose the following extensions to insurance cover.

   1. Contractual liability
      1. If contractual liability cover is included in the policy, the insurance contract extends to claims for damages arising from the insured person’s breach of their contractual obligations. The damage caused must be causally related to the activities of the insured person established in the policy, and that activity must be the cause of the occurrence of damage.
      2. Insurance cover for contractual liability does not extend to claims for damages arising from a contract if the agreements on which they are based impose stricter conditions for compensation for damage than the law on the insured person, which restrict the rights of the insured person (for example, extension of the limitation period for claims, agreements extending the extent of damage, simplified evidence, forms of fault or liability).
      3. LHV will indemnify for damages resulting from the breach of a contractual obligation to the extent described in clause 8 of the Terms and Conditions.
      4. The contract covering the liability under the insurance contract must be concluded between the parties in a format that can be reproduced in writing.
   2. Activities of the subcontractor
      1. If subcontractor cover is included in the policy, the insurance contract extends to losses caused to third parties by a subcontractor used by the insured person in the course of their business if the loss or damage resulted from the insured activity included in the insurance contract and the insured person incurred an obligation to indemnify the third party.
      2. LHV will indemnify damage resulting from the activities of a subcontractor to the extent described in clause 8 of the Terms and Conditions.
      3. In the event of compensation for damage, LHV has the right to file a recovery claim against the person who caused the damage.
   3. Third party property in the possession and use of the insured person
      1. If the policy provides cover for third party property in the possession of the insured person, the insurance contract extends to the damage caused, including theft and robbery, to the third party assets in the possession of the insured person. No compensation will be paid for the damage caused by loss of property or gross negligence of the insured person (unless gross negligence insurance cover is selected).
      2. Insurance cover for property belonging to a third party is valid up to the limit of indemnity stated in the policy for the insurance period, but not exceeding EUR 50,000.
   4. Gross negligence
      1. If cover for gross negligence is indicated in the policy, the insurance contract shall extend to claims for which the underlying loss or damage was caused by gross negligence on the part of the insured person.
      2. The gross negligence insurance cover does not apply to damage caused in a state of intoxication, meaning alcohol, drug or any other state of intoxication.
      3. LHV will indemnify damage resulting from gross negligence to the extent described in clause 8 of the Terms and Conditions.

4. Exclusions

   LHV will not indemnify claims for loss or damage caused by the following circumstances.

   1. Dishonesty, intent and gross negligence
      A loss resulting from a circumstance or event of which the insured person was or should have been aware before concluding the insurance contract, caused by the insured person intentionally or due to gross negligence. LHV indemnifies damage caused as a result of gross negligence if, according to the policy, the insurance coverage described in clause Error! Reference source not found. of the terms and conditions applies.

   2. State of intoxication
      Damage caused while intoxicated, i.e., under the influence of alcohol, drugs or any other form of intoxication, by the insured person, their employee or contractor or a person for whom the insured person is responsible.

   3. Non- proprietary loss and income forgone
      Damage based on non-proprietary damage (i.e. moral damage) and forgone income, with the exception of the reduction or absence of income related to health problem of a third party (the basis for the calculation of the decrease in income is the third party's average income subject to social tax for the last 12 months) and any other damage, which is not material damage as described in clause 8.3 of the terms and conditions.

   4. The following non-contractual obligations
      The insurance contract shall not extend to claims, the basis of which is a public promise to pay, presentation of an item, negotiorum gestio or unjust enrichment.

   5. Product and employer´s liability
      Damage caused caused by a defect in a product produced, sold or distributed by the insured person (product liability insurance covers claims arising from a product defect) and damage incurred by such a product itself, as well as damage caused by the insured person from an accident at work or occupational disease that befell a person working for (employer's liability insurance covers claims arising from said losses).

   6. Professional liability
      Damage caused by the provision of a professional service. Professional services include legal assistance, medical, accounting, supervision and design services and other professional advice, measurement and planning, as well as service that comprises calculation and evaluation. Professional liability insurance covers claims arising from the provision of professional services.

   7. Compulsory insurance
      Damage covered by compulsory insurance (including motor third party liability insurance).

   8. Loss indemnified under pension insurance or other social security scheme

   9. Loss incurred personally by the insured person

   10. Claims between insured persons and claims from persons associated with the insured person
       LHV does not indemnify claims between the insured persons or the claims between the policyholder and the insured person. Nor does LHV indemnify claims brought against the policyholder or the insured person by a person directly or indirectly owned or managed by the policyholder or the insured person (for example, a subsidiary or affiliated company) or by a legal or contractual representative, family member or other close relative of the policyholder or the insured person, or an entity who owns the policyholder or the insured (for example, the parent company or an individual).

   11. Damage to third-party property in the possession of the insured person
       A loss caused by damage to or destruction (including loss, theft, robbery) of third party property (including documents, data carriers) in the possession, use, storage of or being processed, repaired or undergoing maintenance by the insured person. LHV indemnifies damage caused as a result of damage to, destruction and theft (including in a robbery) of third-party property in the possession of the insured person if, according to the policy, the insurance coverage described in clause Error! Reference source not found. of the terms and conditions applies.

   12. Substandard service
       A loss resulting from the insured person's failure to provide service or from improper performance, or insufficient quality of the service (for example, expenses for redoing, repairing, or replacing work performed improperly).

   13. Uninsured activity
       Damage that does not result from an insured activity specified in the policy.

   14. Fines
       Public sanctions (e.g. monetary penalty, fine, penalty payment, imprisonment) and private sanctions (e.g. earnest money , late payment, liquidated damages, guarantee, interest.

   15. Liability arising from contract
       Claims based on breach of contractual obligations and related liability, unless, according to the policy, the insurance coverage described in clause Error! Reference source not found. of the terms and conditions is applicable.

   16. Confidential information
       Damage caused by the infringement of personal rights, disclosure or making available of any confidential information.

   17. Intellectual property
       A loss arising from infringement of intellectual property rights. Intellectual property rights are copyright and rights attendant on copyright and industrial property (e.g., trademark, patent, industrial design).

   18. Unprofessionalism
       A loss caused by the absence or insufficiency of permits, qualifications or licences required for the insured person's activities.

   19. Construction work
       A loss caused by construction, repair, renovation, demolition, adjustment or conversion work. The insurance contract applies to the abovementioned works only to the extent of operations performed for the purpose of daily maintenance at the insurance location.

   20. Water, gas, heat or electricity supply disruptions, interruptions or shortages

   21. Hardware, software and processors
       Damage directly or indirectly related to any computer or server hardware, software or processors.

   22. Pollution and contamination
       Damage resulting from regular contamination and pollution of the environment (including claims arising from the Environmental Liability Directive and legislation).In relation to environmental damage, the insurance contract extends only to damage caused by an sudden and unforeseen event, and the time between the pollution introduced into the environment and its discovery must not exceed 72 hours. LHV only indemnifies direct material damage and the cost of removing environmental pollution. LHV does not indemnify personal injuries caused by environmental damage.

   23. Long-term deleterious effect
       A loss caused by long-term factors such as wear and tear, mould, mildew, wastewater, decay, corrosion, moisture, dust, noise and light (excluding damage caused by an sudden and unforeseen event such as fire).

   24. Precipitation and melt water
       Recurring damage caused by precipitation or water from melting ice or snow entering the building through any of its structures. The insurance contract is valid in case of the first insured event at the insurance location (this means that said loss has not occurred before to the bets of existing knowledge).

   25. Subsidence and movement of soil
       Damage caused by ground subsidence or movement, including earthquake, landslide, erosion or vibration.

   26. Force majeure
       Force majeure is a circumstance beyond the control of the insured person. Among other things, the insurance contract does not apply to losses caused by a natural disaster (a natural phenomenon of an extraordinary nature), war or war-like activity, coup d'état, uprising, terrorism, revolution, state of emergency, civil unrest, act of a foreign enemy, strike, crime (including computer crimes and cybercrime), expropriation, confiscation of assets , nationalization and any other similar event.

   27. Explosives and weapons handling
       Damage caused by any explosive (including blasting), explosive product, pyrotechnic product or weapons (including firearms, chemical and biological weapons and electromagnetic weapons).

   28. Other risk factors in regard to the environment and health
       Damage caused by asbestos, tobacco or tobacco products, toxic mould, drugs, any infections and communicable diseases (including AIDS, HIV and hepatitis), dioxin, genetically modified substance or organism, animal disease agents, pesticides, radioactive radiation, nuclear energy, magnetic, electric or electromagnetic field.

       LHV does not indemnify claims relating to:

   29. management of landfills or waste treatment centres;

   30. non located on land, i.e., offshore and water construction objects works;

   31. blasting and ramming works, underground and underwater works;

   32. owning, operating, managing or using a port, wharf, aircraft, watercraft, airfield, railway or railway rolling stock;

   33. constructing, repair and maintenance of aircraft and watercraft;

   34. damage to aircraft and watercraft;

   35. work in the airport territory and air traffic control centre;

   36. operating and management of an aquatic centre, ski resort or amusement park.

5. Validity of the insurance contract

   1. The insurance contract is valid under the terms and conditions, period, place and territory of insurance agreed in it. If the policy does not specify the insurance territory, the insurance contract is valid for insured events occurring in the Republic of Estonia.
   2. The insurance contract is valid for claims made against the insured person within three years after the end of the insurance period, but for which the act giving rise to the damage occurred during the insurance period. The insured person is obligated to inform LHV of the claims made against them as soon as possible.
   3. If the scope of the insurance contract extends outside the Republic of Estonia, the law will be applied in accordance with the provisions of the Private International Law Act. However, insurance cover does not apply to the damage claims governed by the law of a country other than the country indicated as the insured territory.

6. Sum insured, limit of indemnity and deductible

   1. The sum insured is the amount specified in the policy, which is the maximum disbursement amount for all insurance indemnities (including legal assistance fees) payable during the insurance period.
   2. The limit of indemnity is the maximum amount of insurance indemnity, specified in the policy, to be paid out for the insurance period, insured event, legal expenses, type of damage or insurance risk. The limit of indemnity is not additional to the sum insured, but is contained within in it.
   3. Deductible is the amount, specified on the policy, that is to be borne by the policyholder in case of an insured event. In relation to claims arising from the same insured event, the deductible is taken into account only in the case of the first disbursed insurance indemnity.

7. Legal expenses

   1. Legal the purpose of the terms and conditions, legal costs are out-of-court legal aid, court and expert analysis costs that accompany related to the defence against and processing of claims against the insured person.
   2. Legal expenses are indemnified by LHV if they are necessary to defend against and process claims. LHV shall indemnify legal assistance expenses even if the claim against the insured person later turns out to be baseless.
   3. Only legal expenses agreed in advance with LHV will be indemnified.
   4. LHV will not indemnify legal expenses if indemnification of damages is excluded by the terms and conditions.
   5. A deductible is not charged in respect to legal expenses.
   6. The insured person is obliged to refund legal costs to LHV in the amount indemnified by LHV if the court orders a third party to bear the insured person's legal costs.
   7. LHV shall be released from further obligation to indemnify legal expense if, it turns out during the loss process that cause of the loss was an exclusion specified in the terms and conditions. LHV shall be released from its performance obligation at the moment it became aware of the exclusion applicable to the loss event.

8. Insurance indemnity and indemnifiable loss

   1. The indemnity is a sum of money that is paid out to the policyholder to compensate it for material damage and the necessary legal expenses incurred as a result of an insured event.
   2. Under general third party liability insurance, LHV indemnifies material damage caused to a third party caused by the insured person in the course of insured activity specified in the policy, and legal assistance expenses incurred by the insured person in order to contest claims against the insured person.
   3. Indemnifiable material damage is:
      1. property damage, i.e., the cost incurred as a result of damage or destruction of an item belonging to the injured person on repairing or replacing the item with an equivalent one. If it is not possible to repair the item or purchase a new equivalent item, LHV shall compensate the value of the irreparable/unavailable item;
      2. personal injury, i.e., expenses incurred by the injured person as a result of physical harm, bodily injury or death.
      3. material damage, which is not property damage or personal injury, but a direct consequence of said damage. LHV indemnifies up to 20% of the personal injury and/or property damage to the injured party for other material damage (for example, expenses for filing claims related to damage compensation) that is directly related to the property damage and/or personal injury.
   4. LHV does not indemnify the following:
      1. non-material or moral damage, which primarily includes the physical and mental pain and suffering of the injured person;
      2. loss income, with the exception of a decrease or loss of earnings related to physical harm sustained by a person.

9. LHV's right of recourse

   1. The event of payment of the insurance indemnity, the right of claim held by the policyholder, the insured person or the beneficiary against the person responsible for the loss, including policyholder equivalents, shall transfer to LHV in the extent of the amount indemnified.
   2. If there is an extension of insurance cover for subcontractor activities under the policy, in the event of loss or damage caused by these subcontractors, LHV has the right to bring a claim for recovery against the person who caused the loss or damage and was engaged in the economic activity after the insurance indemnity has been paid.

10. Safety requirements

    1. For the purposes of compliance with the safety requirements, insured persons and persons used in the course of an economic activity are deemed to be the persons treated as policyholders.
    2. The policyholder and persons treated as their equals are obligated to comply with the safety requirements arising from the legislation and the instructions for use.
    3. The policyholder and persons treated as their equals have a duty to exercise reasonable care and to act with due diligence in order to avoid an adverse outcome.
    4. The policyholder and persons treated as their equals are obligated to take measures to prevent repetitive damage.

11. General principles of indemnification

    1. LHV will make a decision on compensation within ten working days of receiving all the necessary information about the loss event. LHV will pay the policyholder the insurance indemnity within at least two weeks after the claim against the insured person has been deemed proven and justified and the decision on indemnification has been made and/or after a court judgment has entered into force. If part of the claim is not proven, LHV will only reimburse the proven part of the claim. LHV may extend the term for making a decision on compensation for damage for good reason. LHV has the right to postpone its decision if civil, criminal or misdemeanour proceedings have been instituted in connection with the loss event and the facts established in the proceedings are relevant for the determination of LHV’s obligation to pay compensation.
    2. If more than one person makes a claim against the insured person in respect of the same insured event and the total amount of the claims exceeds the sum insured stated in the policy, LHV will indemnify the claims on a pro rata basis, based on the amount of the claims up to the sum insured stated in the policy (provided that the claims are made in time and LHV has not already indemnified other claims).
    3. If the insured person is jointly and severally liable with other persons for damage caused to a third party (joint and several liability), LHV will base its calculation of the insurance indemnity on the amount of the claim against the insured person and not on the division of the insured person’s liability between joint and several debtors.
    4. When compensating for loss or damage, LHV will proceed on the basis of the legislation in force at the time of the insured event, the terms and conditions of the insurance contract, the sum insured stated in the policy, the limit of indemnity and the insurance deductible.
    5. The sum insured and the indemnity limits for the insurance period will be reduced in proportion to the indemnity and legal costs paid out under the insurance contract. A supplementary contract can be concluded to restore the sum insured and the indemnity limit.

12. Action to be taken in case of a loss event

    In the event of a loss, the policyholder and/or the insured persons must:

    1. take measures to prevent or reduce further damage;
    2. report the incident immediately by calling 112 if one suspects the intentional action of a third party or in the event of a fire or explosion, or otherwise call the relevant competent authorities or persons;
    3. notify LHV of the loss event as soon as possible, but no later than five days after the loss event has occurred or became known about it;
    4. immediately submit to LHV any claim for damages submitted to them, as well as notify LHV of the commencement of any legal or other proceedings that may give rise to liability of the insured person and of any circumstance that may result in the occurrence of an insured event, but no later than five days from the time the insured person became aware of the circumstance or the submission of the claim. The insured person may not give any consents or promises related to the indemnification of damage before having agreed upon them with LHV;
    5. follow the instructions given by LHV;
    6. take into account that, in order to establish the circumstances of the loss event, LHV may, inter alia, require the policyholder to submit:
       1. documents proving the expenses incurred due to the loss event;
       2. a certificate issued by the police in the case of theft, vandalism, and intrusion;
       3. a certificate issued by the Rescue Board in case of fire;
    7. inform LHV in a format that can be reproduced in writing, at the earliest opportunity, of any claim for compensation by a third party or if the third party waives the claim for compensation.

13. Obligations of the policyholder

    The policyholder is obligated to:

    1. pay the insurance premium in the agreed amount and in the agreed manner;
    2. explain the rights and obligations arising from the insurance contract to all insured persons, as well as to persons employed by the policyholder and used by the policyholder in the course of its business. If these persons violate the safety requirements, it means that the policyholder has defaulted on the contract;
    3. provide LHV with complete and correct information for the purpose of assessing the insurance risk and to inform LHV, when concluding the insurance contract, of all material circumstances of which it is aware that affect or may affect the decision to conclude the insurance contract on the agreed terms;
    4. allow LHV to inspect the place of insurance and the documents necessary for the conclusion of the insurance contract and to assess the insurance risk;
    5. notify LHV of the occurrence of multiple insurance;
    6. inform LHV at the earliest opportunity that the information provided to LHV turned out to be incorrect or incomplete;
    7. promptly notify LHV of any increase in the insurance risk, for example, if there are any changes compared to what is stated in the insurance contract. An increase in the insurance risk is considered to be a situation in which the circumstances affecting the insurance risk, about which LHV has requested information at the time of concluding the insurance contract, have changed and as a result the probability of an insured event occurring has increased;
    8. do everything in their power to prevent the insured event and reduce possible damage, to avoid the possible increase of the insured risk and not to allow the persons who use the insured property to increase the insurance risk;
    9. allow LHV to investigate the circumstances of the insured event in order to establish the cause of the loss, the amount of the loss and the persons responsible for the loss, to involve experts where necessary, and/or authorise LHV to obtain information to establish the circumstances of the insured event.
    10. return the insurance indemnity paid to LHV in the event that, after LHV has compensated the loss, circumstances precluding compensation arise or the loss is compensated by a third party;

14. Obligations of LHV

    LHV is obligated to:

    1. familiarise the policyholder with the documents related to the insurance contract prior to the conclusion of the insurance contract and to keep confidential the information disclosed to LHV in connection with the insurance contract;
    2. issue to the policyholder a replacement policy, as well as copies of the policyholder’s declarations of intent made in a format that can be reproduced in writing, and information and copies of documents affecting the policyholder’s rights or obligations under the insurance contract, provided that such action is not contrary to the law;
    3. start handling the insured event immediately after receiving the notice of loss, and determine the amount of indemnifiable loss;
    4. after receiving the notice of loss, inform the policy holder of which documents must be submitted to LHV in order to determine the cause and amount of the loss;
    5. make a decision on compensation for damage or refusal to do so no later than within 10 (ten) working days after the receipt of all required documents and determination of the amount of damage and the circumstances of its occurrence;
    6. pay insurance indemnity in the event of an insured event, based on the insurance contract;
    7. LHV shall pay the insurance indemnity within a reasonable time after the completion of the claims handling operations and the indemnification decision. If LHV delays the performance of a financial obligation, it is required to pay default interest at the rate provided in the Law of Obligations Act;
    8. reimburse the policyholder, to the extent agreed, for the costs incurred by the policyholder in preventing or reducing the loss or damage which the policyholder considered necessary, even if the incurrence of those costs did not produce the desired result. LHV must reimburse the costs incurred on the basis of the policyholder’s instructions even if, together with other compensation, they exceed the sum insured;
    9. in the event of an obligation to pay compensation for loss or damage, to reimburse, inter alia, the necessary expenses incurred by the policyholder in establishing the loss or damage and determining the amount thereof. LHV will reimburse the costs of hiring an expert and adviser if the policyholder has agreed these costs with LHV in advance;
    10. refuse to pay the insurance indemnity if the payee is subject to a corresponding restrictive international financial sanction established on the basis of UN resolutions or the relevant legislation of the European Union or the Republic of Estonia.

15. Release from performance of insurance contract

    1. LHV has the right to refuse to compensate or reduce the insurance indemnify if:
       1. the insured person waives their right of recovery against the person who caused the damage or if LHV’s right of recourse proves impossible through no fault of the insured person (for example, exceeding the deadline for filing a claim, failure to submit the necessary documents);
       2. the insured person compensates a third party for damage or recognises a claim for damages brought by a third party in a situation where the liability or extent of liability of the insured person is not clear;
       3. the policyholder has intentionally provided LHV with false or misleading information or has failed to provide important information concerning material facts of the insurance contract or the loss event;
       4. it is an event, as a result of which the damage caused is not compensated on the basis of the terms and conditions;
       5. the policyholder fails to pay the premium by the due date or by an additional deadline and the insured event occurs after the expiry of the additional deadline, unless the policyholder’s failure to pay is due to circumstances beyond their control;
       6. the policyholder has failed to comply with any of the safety requirements listed in clause 10 of the Terms and Conditions or any of the obligations listed in clause 13 of the Terms and Conditions and there is a causal link between the occurrence of the damage.
    2. LHV has the right to refuse to pay the insurance indemnity if the payee is subject to the relevant international financial sanction established by the Office of Foreign Assets Control (OFAC) under the relevant legislation of the United States or HM Treasury under the relevant legislation of the United Kingdom.

16. Termination and cancellation of the insurance contract and withdrawal from contract

    1. The insurance contract ends:
       1. at the end of the insurance period;
       2. upon cancellation of the insurance contract;
       3. upon withdrawal from the insurance contract;
       4. by agreement between the policyholder and LHV;
       5. on other grounds provided for by legal acts.
    2. LHV has the right to cancel the insurance contract, following the cancellation deadlines provided by legislation, in the event that:
       1. the policyholder has not performed the insurance contract, among other things, failure to pay the insurance premium by the deadline or additional deadline;
       2. the policyholder has intentionally submitted false information to LHV regarding the insurance contract and/or the circumstances of the insured event;
       3. an insured event has occurred and LHV has made a decision on indemnification or refusal to indemnify the damage;
       4. the insurance risk has increased (including a situation if the insurance risk has increased independently of the policyholder and the policyholder does not agree to amend the insurance contract retroactively starting from the increase of the insurance risk));
       5. other grounds for cancellation of the insurance contract provided by legislation become apparent.
    3. LHV has the right to withdraw from the insurance contract if the policyholder has failed to notify LHV of material circumstances affecting the insurance risk when concluding the insurance contract and/or has knowingly submitted false information (including deliberately avoiding reporting a material circumstance). LHV may withdraw from the insurance contract within one month after LHV became aware or should have become aware of the policyholder's failure to perform the notification obligation.
    4. If the policyholder has not paid the first insurance premium within 14 days after concluding the insurance contract, LHV may withdraw from the insurance contract until the payment is made. If the paid insurance premium, including an instalment thereof, is less than the amount payable specified in the policy, the insurance premium shall be deemed not to have been paid. LHV shall be presumed to have withdrawn from the insurance contract if it does not file an action for the collection of the insurance premium within three months as of the premium becoming collectible.
    5. If the insurance contract is entered into through telecommunications, the policyholder has the right to withdraw from the insurance contract within 14 days as of the conclusion of the insurance contract. The policyholder must submit a written application to LHV regarding the withdrawal in a form that can be reproduced in writing. In the event of withdrawal, LHV shall refund the paid insurance premium. If LHV has provided the policyholder with immediate insurance coverage, the policyholder shall not have the right of withdrawal.
    6. If the insurance contract has been cancelled or a party has withdrawn from it, then from the end of the insurance contract the parties to the insurance contract no longer have obligations arising from the contract, unless the insured item has been destroyed as a result of an insured event or the insurance indemnity has been paid out in the entire sum insured during the insurance period, LHV has the right to receive insurance premiums for the current insurance period. Other rights and obligations of the parties shall remain until the expiry of the insurance contract.

17. Multiple insurance

    If the policyholder insures the same risk, either in part or in full, with more than one insurance provider, and the total amount of insurance indemnity paid by the insurance providers would exceed the amount of the loss, the insurance providers are jointly and severally liable (multiple insurance).

18. Communication

    All notices necessary for the performance of the insurance contract shall be submitted in a form that can be reproduced in writing.

19. Processing of personal data

    1. LHV is entitled to process personal data related to the insurance contract on the basis of LHV's Principles of Processing Client Data and to disclose information related to the insurance contract to a third party who is entitled under LHV's Principles of Processing Client Data to receive information.
    2. LHV has the right to retain recordings obtained by telecommunication or other means in connection with the performance of the insurance contract and, if necessary, use them to prove the declarations of intent submitted by the policyholder.

20. Expiry of claims arising from insurance contracts

    The limitation period for claims arising from the insurance contract is three years. The limitation period shall run from the end of the calendar year in which the claim becomes collectible.

21. Conflicts in insurance contract documents

    1. If there are any inconsistencies in the documents of the insurance contract, the interpretation shall be based on the presumption that the special terms and conditions of the insurance contract specified in the policy take precedence over the general terms and conditions.
    2. If the terms and conditions have been translated into a foreign language, the Estonian-language terms and conditions shall take precedence in interpretation in case of a dispute.