Overview

Protects the Pension Fund and its trustees against possible claims relating to fraud and errors and omissions.

Summary of Cover

Insurance indemnifying the Fund in respect of claims/losses resulting from Trustee/Officer:

• Negligence
• Theft
• Fraud
• Dishonesty

in the capacity as Trustee/Officer of the Fund.

Insurance indemnifying the Fund in respect of claims/losses resulting from Third Party:

• Computer Crime

Cover responds to many types of claims

• A written demand, whether or not for monetary compensation
• A civil proceeding
• A criminal proceeding
• A formal administrative proceeding
• An arbitration proceeding
• Commencement of an investigation by the Pensions Ombudsman

Typical Pension Scheme Liability claims

Errors and omissions

• Payment of benefits to deceased beneficiary's mistress, rather than the wife, led to a claim against trustees
• Trustees sued because of negligent advice given to beneficiary's widow in relation to employee share option scheme

Fraud

• A syndicate is created between Fund employees and administrators. Surplus apportionment theft occurs over incorrect identification of Fund members.
• Fund employees identify which benefits have not been paid in a long time. This is then transferred into the employee’s bank account.
   

Conditions of Cover

• The insured will ensure that all trustees receive training from a competent training organisation as to what their responsibilities and duties are, as a trustee.

Policy Exclusions

• Any wilful breach of the procedural and other material aspects of current Pension Law.
• Bodily injury or property damage.
• Prior and pending litigation up to three months after inception of the policy.