ADVOKS GLOBAL · KENYA
The Central Depositories (Regulation of Central Depositories) Rules
17. Insurance
Edition: 2025-02-14 · In force
17. Insurance
(1)A central depository shall at all times maintain an insurance policy to cover loss or damage arising from, inter alia—(a)computer crime, involving theft or criminal damage to the computer system;(b)theft, damage, falsification or alteration of any record or data kept within the computer system;(c)stolen, missing certificates which are under the physical control of the central depository, whether such certificates are kept on its premises or are in transit;(d)fire or theft of any records in any vault, premise or warehouse of the central depository where such records are kept pursuant to the Act;(e)professional negligence of its employees, agents or servants;(g)fraudulent or dishonest acts of its employees or agents with intent to cause or sustain loss.(2)The central depository shall obtain and maintain at a reasonable and competitive cost, one or more insurance policies for such amounts and coverage as may be reasonably determined in the best interests of the central depository and its depositors.(3)The insurance policies maintained by the central depository shall be available for inspection by central depository agents and the Authority during business hours, upon request.(4)The central depository shall notify the Authority and the Central Depository agents of any material reduction in the coverage or amount of any policy of insurance it maintains.