Transcript Construction Presentation

PROFESSIONAL INDEMNITY INSURANCE
COUNCIL OF ENGINEERS
JANUARY 22, 2014
AGENDA
 INTRODUCTION
 Lockton Wattana Insurance Brokers (Thailand) Ltd.
 RISKS MANAGEMENT
 PROFESSIONAL INDEMNITY
 COVERAGE / DEFINITION / EXTENSION / EXCLUSION
 STANDARD PREMIUM PRACTICE
 MARKET
 PROCESS OF BUYING POLICY
 CLAIM EXAMPLES & PROCESS
 INSURANCE PARTNERS
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Lockton Wattana Insurance Brokers (Thailand) Ltd.
• Established in 1984
• In 1986, entered into a joint venture with Citicorp Insurance Group
and become part of management buyout by Nelson Hurst
International Group in 1991
• In 1997, Price Forbes Group acquired Nelson Hurst, and renamed as
Alexander Forbes Wattana Co., Ltd.
• End of 2006, buyout of International Operation by Lockton Group,
we became Lockton Wattana Insurance Brokers (Thailand) Ltd.
• Ranking – Top ten of the world, top three in Thailand
• Over 140 offices in 44 countries.
• Office in Thailand – approximate. 230 staffs
• Outstanding Non-Life Insurance Broker for the year 2008, 2009,
2010, 2011 and 2012
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Lockton Wattana Insurance Brokers (Thailand) Ltd.
Insurance Services
- Property All Risks
- Marine Cargo / Inland Transit
- Business Interruption
- Personal Accident
- Public Liability
- Health
- Motor
- Travel
- Contractors’ All Risks
- Directors’ & Officers’ Liability
- Fidelity Guarantee
- Professional Indemnity/
Professional Liability
- Money
- Trade Credit
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RISKS MANAGEMENT – MIX STRATEGY
Transferred Risk
(Insurance)
Level Of Risk
Reduced Risk
(Safety Measures)
Avoided Risk
Retained Risk
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PROFESSIONAL INDEMNITY INSURANCE (PI)
 To indemnify the insured against legal liability for any claim first
made against them during the period of insurance.
 Arising from Wrongful Act (i.e. negligent act or error & omission) in
the conduct of the Professional Services practice carried on by the
insured.
 Professional Indemnity Policy would provide cover for: compensation, and/or damages awarded against professional
 legal costs and other expenses associated with defending
legal actions (subject to consent of the insurer).
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DEFINITIONS
Wrongful Act shall mean any error, misstatement, misleading statement,
act, omission, neglect or breach of duty committed, attempted or allegedly
committed or attempted, by an Insured while performing or failing to
perform Professional Services.
Professional Services shall mean services performed by an Insured solely
in its capacity as their Business Practice for or on behalf of a customer of
the Insured.
Business Practice shall mean the business conducted by the Insured, as
specified in the Schedule.
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CLAIM MADE BASIS
Claims made basis shall apply only to wrongful acts which happen, and
for which claim is made against the Insured, while the insurance is in force.
Claim Made
Wrongful Act
16/11/2013
15/5/2012
Retroactive Date
1/1/2011
2011
3rd Policy
2nd Policy
1st Policy
2012
2013
2014
Claim first made on 16/11/2013, Wrongful act happen on 15/5/2012
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PROFESSIONAL INDEMNITY INSURANCE (PI)
Policy schedule
 Limit of policy, Up to client, Normally Limit ~ USD 1 M – USD 20 M
 Deductible, ~ > USD 10,000
 Premium, ~ > USD 7,000
Type of Policies
1.
Annual Policy
- For all activities of the Insured and shall renew every year.
2.
Single Project Policy
- For Specific activity with period more than 1 year. Generally up to 10
Years.
3.
Excess Layer Placement
- In case of Higher Limit, we could use Local Insurance as Primary Layer
and use International Reinsurer as Excess Layer
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POLICY EXTENSION
- Libel and Slander
- Estates and Legal Representatives
- Project Management
- Acquired Entity or Subsidiary
- Outgoing Principals
- Fraud and Dishonesty (Optional)
- Loss of Documents
- Increased Aggregate Limit of Indemnity
(Optional)
- Intellectual Property
- Joint Venture Liability
- Consultants, Subcontractors and Agents
- Run-off Cover Insured Entity or Subsidiary
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STANDARD EXCLUSION
- Prior or Pending Claim
- Supply of Goods
- Known Claim & Known Circumstance
- War & Terrorism
- Fraud and Dishonesty
- Absolute Asbestos
- Assumed Duty or Obligation
- Previous Business
- Related or Associated Entities
- Bribe & Illegal Payment
- Fines and Penalties
- Punitive Damage
- Nuclear
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STANDARD PREMIUM PRACTICE
Experience &
Qualification
Deductible
Annual Report &
Overall business
Limit of liability
Claim
History
Business Type
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PROFESSIONAL INDEMNITY INSURANCE (PI)
Market Capacity
 INTERNATIONAL CAPACITY
 USD 10 M – USD 30 M
 LOCAL CAPACITY
 USD 5 M – USD 20 M
Example Of Local Capacity
QBE
Non Preferable Risk
Limit of Capacity
Single Project Period
AIG
ACE
* Geotechnical / Soil
* Environment Engineering
* Nuclear Engineering
* Mining Engineering
* Chemical Engineering
* Aeronautical / Space Engineering
* Marine / Naval Engineering
* Offshore Platform Engineering
USD 20 M
USD 5 M – 10 M
USD 10 M
7 Years
> 10 Years
1.5 Years
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PROCESS OF BUYING POLICY
Policy
Client
1. Insured complete Application Form
Application
2. LOCKTON approach the markets
submit to LOCKTON.
for insurance terms.
LOCKTON
3. LOCKTON return Quotations with
suggestion to Insured.
Insurers
Insurer
Insurer
4. Insured select the prefer one,
then receive Policy from LOCKTON
while LOCKTON continue support
for any claims that may occur.
Insurer
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ROLE OF INSURANCE BROKER
 To work for insurance related issues on your behalf
 To assist you in buying insurance and not selling
 To analyze and survey of your insurance needs and arrange the
insurance which most suits to your exposure.
 Market with underwriters different appetites and capacities.
 To clarify and discuss with you to choose the appropriate
insurance program
 To handle and manage the claim until the claim is finally settled
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CLAIM EXAMPLES
CLAIM INVESTIGATION
1. What actually happened?
2. What went wrong?
3. Why did it go wrong?
 Royal Plaza Hotel at
Nakhonratsima collapsed on 13th
August 1993
 137 people died
 Renovated from 3 storeys
building to 6 storeys due to
boom business
4. Was the Insured or one of their employees
responsible for what went wrong?
5. Is the loss covered by the policy?
6. Are the Insured’s business activities
correctly described in the policy schedule?
7. Was the loss notified in accordance with the
requirements of the policy?
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CLAIM EXAMPLES
CLAIM INVESTIGATION
1. What actually happened?
2. What went wrong?
3. Why did it go wrong?
4. Was the Insured or one of their employees
responsible for what went wrong?
5. Is the loss covered by the policy?
 Burapha University, Chonburi,
2nd Flooring collapsed on 15th
August 2010
 One dead and four got injured
6. Are the Insured’s business activities
correctly described in the policy schedule?
7. Was the loss notified in accordance with the
requirements of the policy?
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CLAIM EXAMPLES
CLAIM INVESTIGATION
1. What actually happened?
2. What went wrong?
3. Why did it go wrong?
4. Was the Insured or one of their employees
responsible for what went wrong?
5. Is the loss covered by the policy?
 7 Storeys, 77 Rooms Apartment
at Kukot, Lamlukka leaned in
2013
 Had to demolish
6. Are the Insured’s business activities
correctly described in the policy schedule?
7. Was the loss notified in accordance with the
requirements of the policy?
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CLAIM EXAMPLES
CLAIM INVESTIGATION
1. What actually happened? Concrete Beam
Cracked
2. What went wrong? Incorrect Design
3. Why did it go wrong? Loading calculation
error
4. Was the Insured or one of their employees
responsible for what went wrong? Yes
 6 Storeys Shopping Complex at
Samutprakarn, Concrete Beam
Cracked in 2013
 Rectification Cost approx 6mb
5. Is the loss covered by the policy? Yes
6. Are the Insured’s business activities
correctly described in the policy schedule?
Yes
7. Was the loss notified in accordance with the
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requirements of the policy? Yes
CLAIM PROCESS
1
Claim First Made
2
INSURED
CLAIMANT
Pay damages, Indemnity
Claim
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Consult
3
Lockton report claim and
assist Insured to get their Claim.
LOCKTON
INSURANCE
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STANDARD CLAIM PRACTICE
 The Insured must give to LOCKTON a written notice of any Claim first
made against the Insured - as soon as practicable and during the
Period of Insurance.
 Relevant documents :
 The date in which the Insured/Company first became aware of the
matter, if other than the court summons.
 Notice letters and/or demand letter and/or other written
correspondence from the claimant etc. (if any).
 Other additional documents, if required.
 In case there is a circumstance which the Insured realize that it may
lead to a claim in the future, it is required by the Insurer to report
such circumstance to reserve the right of claim. LOCKTON may also be
able to advise you about whether a situation is a circumstance that
should be notified.
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INSURANCE PARTNER
LIU
SCCB
ACCP
THAISRI
ACE
DHIPHAYA
ACR
LOCKTON
A
QBE
Generally
AIG
SWISS RE
ZURICH
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LOCKTON WATTANA – PI TEAM
Lockton Wattana Insurance Brokers (Thailand) Ltd.
35th Floor, United Centre Building,
323 Silom Road, Khet Bangrak, Bangkok 10500
Tel. 02-635-5000
• Underwriting:Name
Ext.
Khun Mingkwan Sirichaiyakul
6902
Khun Viyada Engchuan
6901
Khun Supattaga Kunjara Na Ayudhya 6903
Email
[email protected]
[email protected]
[email protected]
• Claims Department:Name
Khun Sakorn Sudsa-ard
Khun Pannapa Thepmahutsilp
Khun Tipprapai Lagum
Email
[email protected]
[email protected]
[email protected]
Ext.
6400
6300
6301
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THANK YOU
Q&A
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