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MISCELLANEOUS INSURANCE (MONEY POLICY (GENERAL CONDITIONS - ( POSITIVE…
MISCELLANEOUS INSURANCE
THEFT INSURANCE
Scope of cover
Full Value basis
covers total of property
Full Value basis
based on % of the total value
Definition
: covers against loss/damage to insured property upon actual,forcible/violent entry/exit from premises.
Main perils
( must happen concurrently for the risk to be covered)
burglary
housebreaking
Property Covered
business premises
example : stock in trade, equipment fixtures, fittings, furnitures
private dwelling
example : household goods, personal effect, furnitures, jewelery & valuable things
Common Policy Conditions
i) interpretations
ii) Precautions
iii) Records
iv) Cancellations
v) Reinstatements
vi) Other insurance (contributions)
vii) Claims
Cancellations
insured
: 1 month notice to insurer's
insurer
: 14 days notice to insured
Policy Exclusions
accounting shortage ( mankind mistake)
seizures
nuclear weapons
war
strike and riot
breach of trust
theft by any members of insured family
loss of damage if premises are left unoccupied for more than 30 days
Extension Policy
coverage
time
Underwriting
types of property
value of property
descriptions
security
safety
risk management
theft happens in accidental
locations
high crime area
low crime area
size of premium
amount of sum insured
MONEY POLICY
DEFINITION OF MONEY POLICY
Covers organization and individuals that handle and transact cash (in hand) in large volumes against loss of own-money or money for which the insured is responsible
MONEY (SUBJECT MATTER)
Stamps
Cash
Cheques ( money in form of credit)
Postal/Money Order (Instruction to bank/Post Office)
Bills of exchange ( document stated for sold things)
SCOPE OF COVER
Damage to Strongrooms and Safes
Cost of repair or replacement to the damaged locked safe or strongroom resulting from theft of money or any attempt threat
Money In Transit
Includes money drawn as wages & salaries from the time of receipt until paid out
Monies must be under the insured custody or authorized custody
In direct transit between premises and bank/ post office
Money In Premises
money in locked drawers or cabinets or cash registers
money in insured's premises during and outside normal business hours
money in insured's premises contained in strongrooms or locked safes
ADDITIONAL COVERS
(Add premium)
riot, strike & civil commotions ( includes as additional covers because in Malaysia the events are rarely happens)
personal accident to messenger or custodians - bodily injury
armed robbery & hold-up at the insured's premises
Period of Covers (Duration)
1 Year - Renew annually
PREMIUM CHARGE
Total premium may vary depend on limit of liability insured, risk exposure and underwriting requirements of the company
FEES & CHARGES
- COMPULSORY TO BE PAID BY INSURED
Commission paid to the insurance intermediary (if any) - 25% of the total GST excluded premium
stamp duty -RM10.00
GST - 6% of premium
EXCLUSIONS
1)Shortage due to error or omission or resulting from clerical or accounting errors and loss due to errors in receiving or paying out and/or loss due to mysterious disappearance. ( Human Error)
2) Fraudulence - Loss or damage by or through the collusion of or fraudulence embezzlement by or the fraudulent misappropriation by the insured or any person or person in the service of the insured
3) Loss occur outside Territorial Limits - outside Malaysia, Brunei and Singapore
4) Any loss occur when the premises are closed unless the money are in a locked safe or locked strong-room
5) Any loss or damage caused by or consequences, directly/indirectly
i) war,invasion, act of foreign enemy, hostilities or warlike operations or civil war
ii) mutiny, strike, riot, civil commotion,military, or popular arising, insurrection, rebellion,revolution, conspiracy,military or usurped power
iii) martial law or state of siege or any event causes determine the proclamation or maintenance of martial law or state of siege
iv) any act of terrorism
6) Loss or destruction of or damage to any property whatsover or any loss or expense resulting or arising thereform or any consequential loss directly or indirectly caused by ir contributed to by or arising form
a) ionizing radiation or contamination by radioactivity from any nuclear fuel or from nuclear waste from the combustion of nuclear fuel
b) nuclear weapon material
7) Loss from unattended vehicle
8) Any loss or damage by natural disaster - flood, hurricane, cyclone, , earthquake
GENERAL CONDITIONS
- ( POSITIVE ACTION THAT THE INSURED OUGHT TO DO)
material changes of subject
- within 7 days , changes of format of subject matter
Fraud
- acting on behalf insured party to obtain benefits
Assignment
- cannot render policy to other party
Cancellation
- send 7 days notice to insurer/ insured ( depends on which party wants to cancel the policy)
Change of policy terms and conditions
- change address , reply within 7 days to insured
subrogation
Contribution
- Insurer not liable for loss more than proportion
Arbitration
Loss notification
- take precaution ( risk management)
CLAIMS CONDITIONS
Notification of claims
-notify insurer within 7 days
all details and evidence which we ask for concerning and amount of any loss,damage or injury shall be provided by you at your own expenses
WARRANTIES
( POSITIVE AND NEGATIVE ACTION INSURED ARE OUGHT TO DO )
1) All money not paid out on the day on which it is received from the bank is secured in the Insured premises in a locked safe or strong room after business hours
2) Disclose all information to insurer
3) The insured shall take all ordinary and reasonable precautions for the safety of the money
4) Cash boxes or till drawers after business hours to be kept with their contents in safe or strong rooms in the insured premises
5) Safe or strong rooms keys or duplicate thereof at all times be kept away from the portion of the insured premises in which such safe or strong room is situated and always out of sight of the public.
6) If the insured premises are left unattended
the rooms in the insured premises in which money iskept is also securely locked
all locks, bolts and other protective devices are full operation and the insured premises are fully secured
all keys including those relating to safes or strong rooms and notes of combination locks to safes or strong rooms are removes from the insured premises
UNDERWRITING CONSIDERATIONS
Sum insured
FIDELITY INSURANCE
DEFINITION
: Indemnifies you as an employer against any direct loss of pecuniary that you may sustain through acts of dishonesty by your employees
example: forgery, embezzlement, defalcation, fraudulent
Subject Matter
(Created the loss)
actions of employees from dishonesty
Risk : Fidelity
Loss: Pecuniary Loss
TYPE OF POLICIES
Individual policies
covers
individual/ person
named in policy for a stated amount
Positions Policy
covers
named position
without name of employees being indicated
refers to position of employees
Collective Policy
combinations of individual & position policy
covers
group
of employees
sum insured differs based on the position of employee
Floating Policy
has limitation of people
same sum insured to whole group of employee
no specific named workers
Blanket Policy
for every employees
covers group of employee without specified person
low premium
Features Of Covers
covers insured pecuniary loss/ goods belongs
Uninterruption
covers the number of working days
Exclusions
terrorism
error in book keeping
email/electronic mail
Conditions
Interpretations
Claims
Cancellations
Terms
Period of Insurance
Risk management steps
Underwriting
position
number of employee
sum insured
EQUIPMENT ALL RISK POLICY
General : all risk covers most common risk that could directly damage your property
Equipment All Risk
covers valuable article & portable items
anything that can used in form of portable ( carried/wear)
example : watch, laptop
Scope of Covers
1) Fire, Lightning, explosion
2) Burglary, Theft
3) Accidental damage/ Misfortune
SECTION 1 : MATERIAL DAMAGE
Covers insured property - equipment
Insured perils
stated in policy
SECTION 2 : THIRD PARTY
Any party that exclude insured/ under supervision of insured
Insured Perils
any loss or damage that affected to the third party
Covers
body injury (Physical)
loss of property damage belongs to third party (Property)
Claims
medical costs
lost earning
replacement/ repair of damaged property
Excluded Perils
exclude high costly or uncommon perils
insurance company does not bear responsibility of providing financial relief for the listed perils
General Exclusions
1) Loss or damage caused by :
war
confiscation
wear & tear
porcelain
2) Over winding / Internal damage of watches/ clocks
3) Loss caused from repair, restore/ renovate any property insured
4) Loss of camera, telescope by mechanical deragement
5)damage to gramophone records