Date effective: 1981-05-01
Authorized by: Vice-Rector, Resources
CLAIMS FILES WITH THE UNIVERSITY'S INSURANCE BROKERS
INSURANCE CLAIMS
GENERAL
1. This procedure should be read in conjunction with policies No. 25, Insurance Responsibilities, No. 41, Continuous Inventory of University Furnishings and Equipment, and with Procedure 4-4, Continous Inventory of University Furniture and Equipment.
2. In compliance with Policy No. 25, any fire, theft, accident, loss or damage to property must be reported immediately to Protection Services to initiate adequate emergency procedures and to inform Materials Management Services. Any incident involving an insurance claim must be reported immediately to Materials Management Services for necessary action.
3. The purpose of this procedure is
a) to assist deans and directors in submitting claims for theft of University assets;
b) to establish a procedure for other damages.
INSURANCE AGAINST THEFT AND OTHER RISKS
4. The content of University buildings is insured against loss or damage, including theft. However, a deductible of $50,000 per claim applies, except in the cases described below, where deductibles vary:
Special Coverage:
- Works of art on display (outside exhibits supervised by the University): all risks, $250 deductible. The insurer will pay the University up to $2,000 per article, and a maximum of $19,500 per claim; however, for fragile objects, the limit per object stays at $2,000 but the maximum per claim is $8,000.
- Employees' personal professional belongings: all risks, $250 deductible; $10,000 limit per employee.
- Contents outside Canada: all risks, $250 deductible; $10,000 limit per claim.
CLAIMS FOR THEFT (CONTENTS)
5. The Administrative Committee has established a program to cover losses caused by theft of University assets, under the following conditions:
- a) Theft Self-Insurance Fund for Sectors Financed by University Budgets
This first theft self-insurance fund applies only to faculties, institutes, schools, departments and services financed by the University's budgets. Self-financed services are not included.
The fund covers losses, per theft, between $2,000 and $50,000. The first $2,000 must be covered, however, by the faculty or service concerned.
Theft(s) occurring during the same calendar year will be subjected to an increase in deductibles in the amount equal to the amount paid by the University's funds. Consequently, a loss resulting from theft and valued at $2,500 implies that the sector is responsible for $2,000 and the University funds will absorb the $500. The sector's deductible will be adjusted from $2,000 to $2,500 for subsequent theft(s) occurring during the same calendar year.
The annual maximum increase of the sector's deductible is $1,000 per theft (for example, the value of the theft being $10,000, the sector is responsible for the first $2,000 to $3,000 applicable to subsequent thefts during the same calendar year).
- b) Theft Self-Insurance Fund for Self-Financed Services
Self-financed services are not eligible for theft reimbursements from the University's budgets.
However, upon request from the self-financed service, Materials Management Services will conduct a feasibility study to analyze the possibilities the self-financed service may receive the same reimbursements as other sectors from the University's budgets, conditional to an applicable premium.
- c) However, the faculty or service's net loss can come to less than $2,000 in the afore mentioned cases, because some deductibles are below $2,000.
- d) Security standards
We strongly recommend that you contact Protection Services to determine the type of security which best applies to your sector against equipment thefts.
Upon request, Protection Services will offer information sessions on security systems to minimize thefts.
As well, Client Services of the Computing and Communications Services will assist you in analyzing your needs, recommending, supplying and installing appropriate security systems for your computerized equipment and accessories.
INSURANCE CLAIMS FOR OTHER INCIDENTS (PROPERTY)
6. Self-Insurance Funds for Other Incidents
- a) A $5,000 deductible for all incidents other than theft is carried by the faculty except for the above specified policies and responsibility policies. The University's self-insurance funds will therefore take responsibility for the difference between the first $5,000 and the $50,000 limit which is the general deductible in the University's insurance policy.
Self-financed sectors are not eligible for reimbursement of their incidents by the University's budgets.
- b) Damages to buildings and property
In the occurrence of damages to buildings or property, Physical Resources Service will proceed with the required repairs but only after damages have been assessed by the insurance company, except for emergency repairs. Materials Management Services is responsible for reporting the incident to the insurance agency and request the services of the adjuster.
REPORTING OF LOSS AND PROCEDURE FOR CLAIMS
7. Upon discovery of a loss, the Protection Services must be advised immediately by the faculty or service (see Policy No. 25). A delay can seriously hinder the University's ability to successfully settle a claim.
To be considered for insurance purposes and for claims to the University's budgetary funds, incidents and their circumstances must be formally reported by Protection Services.
Furthermore, Materials Management Services must be informed of such incidents so as to notify the insurance agency and initiate related claims. The dean, director, or administrative officer is responsible for such notification within 24 hours after loss or incident or the first work day following incident.
The Protection Services' report must be forwarded to Materials Management Services together with a police report, if available.
The faculty or service suffering the loss must pursue the settlement of its loss by:
- a) reporting full details of the incident to Materials Management Services as well as
- b) supplying an estimate of costs to repair or replace contents lost or damaged with similar or equivalent available products. The Self-Insurance Fund will contribute to the reimbursement provided contents are effectively replaced or repaired.
The faculty or service suffering the loss must confirm that the contents are property of the University and are listed in its inventory.
LOSS SETTLEMENT
8.
- a) For losses from $2,000 to $50,000, Materials Management Services will verify, adjust and authorize settlement of the claim from the Self-Insurance Fund.
- b) All requisitions and supporting documents concerning a charge against the Self-Insurance Fund must be approved by Materials Management Services before forwarding to Financial Services for compensation.
- c) Losses in excess of $50,000 and losses covered by special coverages or a particular policy other than $50,000 will become the subject of a claim to the University's insurers by Materials Management Services.
- d) Claims Analysis and Deductibles
When a faculty or service files a claim, the analysis and applicable deductibles to such faculty or service will be determined by Materials Management Services which is responsible for the University's insurances.
When necessary, the Director, Materials Management Services or his delegate may appoint and supervise a specific evaluation committee to analyze incidents affecting the University's insurances.
- e) Revision of Deductibles
Under specific circumstances, Material Management Services may review the maximum reevaluation amount for the sector's deductibles according to the incidents it experienced.
Depending on the circumstances, deductibles could also be lowered.
- f) Neglect
Should an incident be the result of neglect either to set instructions and/or security standards, the University may decide to reimburse no more than 50% of claimed and approved replacement costs.
- g) Participation to the Self-Insurance Fund
The Self-Insurance Fund is applicable when incidents would be considered by our insurance agency should they have to manage our insurance policies, notwithstanding the level of deductibles.
- h) Assets on Loan to Employees
University assets on loan to employees and which are transported to their residences become the employee's responsibility and must be included in their insurance policy. The faculty or service authorizing the loan may cover the deductible applied to the employees' insurances according to the part of the value affixed to the University's assets in relation to the total loss; the amount covered by the faculty or service shall not exceed $500.
INFORMATION
9. More information may be obtained by contacting the Manager of the Administration Division (4-8202) or the Director of Materials Management Services.
EXCEPTION
10. No exception may be made to this procedure without the written consent of the Director, Materials Management Services.
Revised March 24, 1993
(Materials Management Services)