With reference to the report Insurance industry
With reference to the report “Saudi Arabia’s insurance sector attracts investors” (Dec. 18), I must say there is a tremendous potential for insurance industry in Saudi Arabia. The potential for business has also created a number of competitors. However, due to lack of professional awareness many insurance companies may find it difficult to operate profitably. To survive in the competitive and high-growth environment, companies should hire professionals in the technical areas. Others should be trained to contribute their best. One should realize that insurance is different from trading.
– Mohammed Sadullah Khan, Online response, Published by Saudi Gazette on 21-12-2009
Monday, December 21, 2009
Tuesday, October 27, 2009
Medical Insurance
27-10-2009
A vast majority of the disputes related to Insurance arise due to lack of knowledge about Insurance. Unlike in the past when there was a strong possibility of fly by night operating Insurance companies. The current regulatory environment has put in place a system, where an Insurance Company is in a responsible position to deal with its providers. The CCHI has framed the Medical Policy, prescribed the payment procedures and dispute addressal system. It needs to the properly implemented. As regards to the provision of the selected medical centers for direct billing, it is one of the products provided by the Insurance companies to the customers to choose from various options. The motive of the customer is to get the basic mandatory insurance at the cheapest price and he ends up in going for the limited provider option. However this does not deny the insurance companies of their own profit motives.
A vast majority of the disputes related to Insurance arise due to lack of knowledge about Insurance. Unlike in the past when there was a strong possibility of fly by night operating Insurance companies. The current regulatory environment has put in place a system, where an Insurance Company is in a responsible position to deal with its providers. The CCHI has framed the Medical Policy, prescribed the payment procedures and dispute addressal system. It needs to the properly implemented. As regards to the provision of the selected medical centers for direct billing, it is one of the products provided by the Insurance companies to the customers to choose from various options. The motive of the customer is to get the basic mandatory insurance at the cheapest price and he ends up in going for the limited provider option. However this does not deny the insurance companies of their own profit motives.
Sunday, October 25, 2009
Callous Attitude
This is in response to "Arguing Northwest Pilots forget about landing". The above event has left a dangerous precedent. Fortunately things were settled, without causing any unpleasant situation. The passengers were lucky enough not to realize the actual situation. The role of a pilot is very critical as hundreds of lives depend on his alertness and skill. The Airlines should take necessary steps to make sure that such events do not happen in future.
24-10-2009
24-10-2009
Saturday, October 24, 2009
Global Warming
18-10-2009
The action done by the President of Maldives Mr. Mohammed Nasheed is really thought provoking. The wanton destruction of fossil fuels and creation of green house gases have given an advanced signals about the climatic catastrophe bound to happen if precautionary steps are not taken. Protection of the Maldives and other low lying areas will be the litmus test. It is the responsibility of each and every individual to see to it that environment is protected from the abuses of the greed.
The action done by the President of Maldives Mr. Mohammed Nasheed is really thought provoking. The wanton destruction of fossil fuels and creation of green house gases have given an advanced signals about the climatic catastrophe bound to happen if precautionary steps are not taken. Protection of the Maldives and other low lying areas will be the litmus test. It is the responsibility of each and every individual to see to it that environment is protected from the abuses of the greed.
Fire Safety
19-10-2009
It is really unfortunate that the firemen have died due to suffocation as the lift got stuck. One of the basic lessons taught in any of the fire safety program is that never to use lift if there is a fire in the building. The firemen are supposed to be trained in safeguarding of their own lives and the lives of others from fire and suffocation due to smoke. Unfortunately the non-compliance of one basic safety rule has cost them their lives.
It is really unfortunate that the firemen have died due to suffocation as the lift got stuck. One of the basic lessons taught in any of the fire safety program is that never to use lift if there is a fire in the building. The firemen are supposed to be trained in safeguarding of their own lives and the lives of others from fire and suffocation due to smoke. Unfortunately the non-compliance of one basic safety rule has cost them their lives.
Thursday, September 10, 2009
Technical Insurance and types of Insurance Policies.
Booming construction Industry in Saudi Arabia requiring Construction All Risks and Erection All risks Insurances.
By Shujaath Ahmed Khan
As lot of construction activity is taking place in the India, Kingdom of Saudi Arabia, Arab countries, GCC and world wide inspite of global recession. The following information will be useful to the Principals, Contractors, sub-contractors and other interested parties.In most of the Civil Engineering or Machinery Erection Projects the Project Management faces the problem of fixing the responsibility for insuring the risks to which the project is exposed and for administering the insurance policies. The Project Manager and the Risk Manager has to assess the risks they face in the Project and shall have to make a decicion on the extent of insurance covers needed. Even when the other parties are obliged to insure various risks relating to the Project ultimately the cost will have to be borne by the Employer directly or indirectly.2. THE EMPLOYER'S RISKS:2.1. The Employer has the highest stake in completing the Project and hence in its insurance covers.2.2. In most of the cases, contracts can be better dealt with by the Employer assuming the responsibility for insurance. The Employer should foresee contingencies such as insolvency of the contractor, default by the Contractors, suspension/ termination of the Contractor replacing him with another Contractor etc while providing the insurance requirements.2.3. The factors in favour of the Employer carrying the insurable risks are:(a) The Employer has to pay the premium either directly or indirectly (costs built in the contract price). By combining the insurance requirements of various Contractors the volume of premium will be high enough to secure better insurance terms from the market.(b) The Employers has the highest stake in completing the project since his investment is exposed to the perils(c) The Contractors tend to cover their exposure only(d) Cover can be continued with the Fire Insurers for the completed sections(e) No gaps or grey areas as in the policies procured by the Contractors(f) Employer is protected in case of insolvency or termination of the Contractor and apponintment of another to complete the contract(g) Employer is protected against under-insurance if the insurances are properly arranged(h) Employer's insurance can take care of common facilities and utilities which may be used by many contractors(i) Employer can cover the risks of price escalation and replacement escalation where as the Contractors will be unwilling to cover such escalation in price(j) Coordination and completion of restoration works following a major loss to works carried out by different contractors will be easy if the indemnity is provided by one insurer(k) Following major losses it may not be possible to replace a machinery with another one of the same kind due to changes in technology. Employer's policy will be able to deal with the situation better in such a contingency(l) Employer is familiar with the local law and the import and customs law. Hence he can arrange protection needed to meet their reqirement.(m) If the Employer purchases the materials and supplies the same to the Contractor for Erection disputes may not arise between the Marine Insurer (of the Employer) and the Construction Risk Insurer as to when the damage occurred (when the materials are not checked as soon as they land or at the site) if both risks are covered by the same insurer(n) Administration of the insurance function will be easier and less expensive if the Employer effects policies including the interest of the Contractors and manages the risk using one centralised office for the whole project. Coordination will be easier with this type of centralised administration. This will also avoid time and effort spent on actions for recovery by different Insurers insuring different interests of the same subject matter affected.2.4. Even if the responsibility for managing the risks is passed on to the Contractors and the Employer is named as an insured, the Employer will continue to carry the following risks:2.4.1. MATERIAL DAMAGE AND LIABILITY:(a) Loss, damage or liability arising out of faulty design of the works by the Engineer(b) Loss or damage arising out of or aggrevated by the "excepted risks" such as the war, hostilities (whether war be declared or not), invasion, act of foreighn enemies, revolution, insurrection or military or usurped power,civil war, riot, commotion or disorder, ionising radiations or contaminations by radio-activity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel, radio-active toxic explosive or other hazardous properties of any explosive, nuclear assembly or nuclear component thereof, pressure waves caused by air craft or other aerial devices travelling at sonic or super sonic speeds, or any other operation of the forces of nature as an experienced contractor could not foresee, or reasonably make provision for (force majeure)(d) Loss or damage arising out of riot, strike or civil commotion or disorder(e) Loss or damage to the works or part of the works taken in to use or is occupied by the Employer(f) Non disclosure or misdescription of any material fact affecting the risk or any material changes affecting the risk(g) Loss or damage arising out of or aggrevated by wilful act or wilful negligence of the insured (Employer) or his responsible representative(h) Loss or damage arising out of or aggrevated by cessation of work whether total or partial(i) Loss or damge occuring after commencement of tests on the second hand machinery installed2.4.2. MATERIAL DAMAGE SECTION:In addition to the above risks mentioned in paragraph 2.4.1, the following risk are also to the account of the Employer even if the responsibility for insurance is passed on to the contractor:(a) Financial, consequential and trade losses such as the loss of anticipated profits due to delayed completion of the project, additional capital to be invested due to escalationin the project cost, penalties, fines, failure to secure special priviledges from the authorities due to delays (eg. concessional customs duties available during a period), loss of the targeted market etc.(b) Faulty design or defective material if these are supplied by the Employer(c) Loss or damage to materials supplied by the Employer due to normal wear and tear, corrosion oxidation or other normal atmospheric conditions2.4.3. THIRD PARTY LIABILITY:In addition to the above risks mentioned in paragraph 2.4.1, the Employer is exposed to the following risks in case of bankruptcy or closure of the Contracting Company the following risk are also to the account of the Employer even if the responsibility for insurance is passed on to the Contractor, unless each of the following risks is adequately insured by the party directly liable for the loss under specific policies such as the Workmen Compensation Insurance Property All Risks Insurance, Aviation Liability Insurance or the Motor Vehicle Insurance.(a) Legal liability to pay compensation for damages consequent up on accidental bodily injury to or illness of third parties not connected with the project work (whether fatal or not) and accidental loss of damage to property belonging to third parties occuring in direct connection with the erection, construction or testing on the insured project work and happening on or in the immediate vicinity of the of the site during the period of the cover(b) Legal liability to pay similar compensation for damages to one party involved in the construction work caused by another party involved in the same contract work(c) Liability consequent upon bodily injury to or illness of Employees or Workmen of the Principal, Contractors or any other Firm connected with the Project(d) Liability consequent up on loss of or damage to property belonging to or held in care, custody or control of the the Principal, Contractors and any other Firm connected with the Project(e) Liability consequent up on any accident caused by vehicles licensed for general road use or by waterborne vessel or craft(f) Liability assumed by agreement unless such liability would have attached also in the absence of such agreement(A) DAMAGE TO MATERIALS USED IN THE PROJECT:Construction Projects involving Civil Engineering Works and Machinery Erection are exposed to the following risks:1. Materials forming part of the construction work:(a) Construction/ Erection Risks while carrying out exploratory and/ proto type testing works such as drilling of test bore holes, exploratory excavations etc(b) Storage risks at the suppliers' and manufacturers' premises for imported and locally supplied materials which have already been sold but not delivered to the Contractor/ Principal(c) Marine/ transit risks from the suppliers'/ manufacturers' premises to the site of erection for materials to be imported including the risks of incidental & or intermidiate storages(d) Storages in bonded warehouses and/ or Project warehouses near the port of entry(e) Transits to and from the fabricators premises outside the construction site (for materials procured by the Contractor/ Principal and sent for fabrication/ assembly/ further process prior to Erection at site)(f) Risks during storage and fabrication/ assembly/ process at the intermediate fabricators premises mentioned in (d) above(g) Off site storages and inland transit from such storage locations to the site(h) Storage at site(i) Storage risks of materials procured for contracted/ subcontracted work but in custody of the Principal/ Contractor waiting to be handed over to the Contractor/ Sub-Contractor(j) Normal construction/ erection risk at site(k) Risks due to defective material and/ or defective workmanship(l) Risks due to faulty design(m) Completed portion of the work handed over to the Contractor but not handed over to the Principal(n) Completed sections taken over by the Principal but not taken in to use due to delay in completion of other sections(o) Risks during testing of each section of the Machinery on load(p) Integrated final testing of the complete line of Machinery on full load resulting in achievement of commercial production(q) The period of test run on load(r) Risks during the Period Of Maintenance(s) Risks during the Period Of Guarantee2. Materials used for or inconnection with the Project but not forming part of the work (temporary works not fully written of in the Project, Constructional Plant, Equipment and Machinery and Temporary Buildings such as Stores, Labour Camp etc):(a) Risks during transit from the storage premises of the owner to the site of Erection/ Construction(b) Risks during storage off site(c) Transit to and from such storage location to site and back daily/ periodically(c) Risks during storage at site.3. Unless specifically insured a normal Contractors/ Erection All Risks Policy will indemnify the Insured the cost of rectifying or replacing the item affected to the extent insured provided the loss did not occur due to any excepted peril. Such cover is provided for items 1(g) and 1(i) above if only the total contract value is declared for insurance. Even for these the following losses and/ or costs are not covered unless specifically agreed at the inception of the policy:(a) Architects, Surveyors and Consulting Engineers Fees to be incurred for reinstating the damaged property(b) Riot, strike and civil commotion risks(c) Cost of removal of debris following an indemnifiable damage to the contract work(d) Express freight (other than air freight) for replacements/ spares following an occurrence(e) Overtime, night work and holiday wages for repairs/ replacements following an occurrence(f) Air freight for replacements and spare parts to be procured following an occurrence(g) Additional customs duties for replacements/ spares to be procured following an occurrence(h) Escalation in prices of replacements/ spares to be procured following an occurrence (escalation may be due to inflation, incresed demand, reduced supply, increased cost of production, exchange rate fluctuation, original discounts not available for replacements etc; estimation of this should be based on the replacement cost of the project following a major catastrophic loss at the end of the construction period)(i) Escalation in the cost of the project due to the reasons stated in (h) above (limit of indemnity being the Escalated Project Value)(j) Cost of new parts for repairing second hand machinery and equipments(k) Loss of or damage to existing or surrounding property (not forming part of the contract work) caused by the construction work(l) Cost of removal of debris following land slides/ erosions and the cost of repairing the erroded slopes(m) Cost of replacement with newer/ improved model of the machine in the place of the destroyed (total loss) machine when the same model or its equivalent is not produced any more(n) Financial losses such as the loss of expected profits to be generated caused by the delay in completion of the project on account of an indemnifiable material loss or damage(o) Guarantee for the works following the maintenance period (5 years or 10 years guarantee for Buildings and Civil Engineering Works and additional 1 or 2 years guarantee for Machinery)(p) Loss of or damage to the Material Handling Equipments and other Machinery when they are being used for the Construction/ Erection activity after such equipments have been installed unless such equipments are insured as "Construction Plant and Machinery" for the period they will be used for the erection work by the Contractor or the Principal. Such equipments should also be insured as part of the Contract Work (the Contract Work sum insured also should include the value of such equipments) if such equipments will be taken over by the Principal as a part of the Main Project). An example is a gantry crane installed in a production bay and used for lifting the production machinery during installation.(B) LIABILITY TO THIRD PARTIES ARISING OUT OF THE WORK:Third party liability risks to which the Principal is exposed to are:Liability for accidental bodily injury or illness and for accidental loss of or damage to property caused by(a) The Principal or his representatives and employees to Third Parties and the Property of Third Parties not connected with the Project(b) The Principal or his representatives and employees to other Parties engaged in the Contract Work and to their PropertyLiability for accidental bodily injury or illness and for accidental loss of damage to property caused by(a) The Contractors and other parties employed by the Principal in connection with the Construction/ Erection Work to third parties not connected with the project(b) Any of the Contractor or the other parties employed by the Contractor in connection with the Contract Work caused to another party or another Contractor employed for the same projectLiability for loss of or damage to property in care, custody or control of the PrincipalCHECKLIST FOR RISK MANAGERS OF CONSTRUCTION/ ERECTION PROJECTS:DESIGN & CONSULT:Insurance cover for Architects, Design Engineers and Consulting Engineers:(a) Professional Indemnity cover to be producured by the Architects, Design Engineers and Consulting Engineers: limit of indemnity to be specified by the Principal depending on the exposureName of the specialist Period of cover Limit of indemnity(b) Personal insurances for these officials and their assistants:Cover Period of Limit of Schedule ofrequired insurance indemnity itemsMotor vehicle insuranceWorkmen Compensation insuranceGeneral liability insuranceInsurance covers for the employer/ principal:(a) Contactors all risks and third party liability covers including the following extensions:Risks to be covered:Insurance covers for the contractors and the sub contractors:(a) Marine/ inland transit cover for materials supplied(a) Contractors all risks and third party liability covers including the following extensions(b) Plant all risks cover(c) Motor vehicle insuranceCover to include:(d) Workmen compensation insurance(e) Medicare and personal accident covers(f) Bonds(g) Fire and perils covers for off site accommodation, offices, warehouse buildings etc (permanent buildings taken on lease and the contents not absorbed in the contract price)(h) General liability cover. Other types of Insurance Policies in Kingdom of Saudi Arabia. India and the world over are as follows.
All risks insurance in Saudi Arabia, India and worldwide,Aviation insurance,Accidental Insurance,Business interruption insurance,
Bullock Cart Insurance
Bancassurance
Boat Insurance
Baggage InsuranceConstruction insurance,
Craft InsuranceCasaulty Insurance,Credit Insurance,Credit Guarantee Insurance,
Computer All Risks Insurance
Consequential Loss InsuranceDirectors and Officers Insurance,Domestic maid insurance in saudi arabia,Employee dishonesty insurance,Erection insurance in saudi arabia,
Erection all risks insurance
Failed well InsuranceFidelity guarantee insurance in saudi arabia,Fire insurance,Fisheries Insurance,
Group life insurance,General insurance,Health insurance,
Hole in one Insurance
Horse Insurance,Insurance education in saudi arabia,
Individual health Insurance
Individual life InsuranceLiability Insurance in Saudi Arabia,Life insurance in saudi arabia,Loss of profit,
Loss of profit machinery breakdown Insurance
Loss of profit Material Damage Insurance
Personal Lines Insurance in India and Saudi Arabia.
Personal Accident Insurance
Personal Liability Insurance in India and Saudi Arabia
Personal Possession All Risks Insurance in Saudi Arabia and India,Poultry Insurance,
Protection and Savings insurance in Saudi Arabia, India and world over, (more popular in USA, Britain, France, Germany and other European countries)
Property All Risks Insurance
Professional Insurance Education in Saudi Arabia and India,
Insurance Education in Saudi Arabia and India
Insurance Institute of India,
Chartered Insurance Institute, London, United Kingdom.
Institute of Banking and Finance involved in professional insurance education in Saudi Arabia.
There are many other organizations offering professional insurance education in India apart from Insurance Institute of India.
Basic Property Insurance in Saudi Arabia, Indian and world overMachinery insurance,Machinery all risks insurance in saudi Arabia,Marine Insurance in Saudi Arabia and India,
Marine Cargo Insurance
Marine Hull InsuranceMedical insurance in saudi Arabia and India,Medical malpractice insurance,Money insurance in saudi arabia,Motor Insurance in Saudi Arabia and India,Personal possession insurance,Professional insurance education in saudi arabia,Property insurance in saudi arabia,Property all risks insurance,Third party insurance in saudi arabia,Travel insurance in saudi arabia,Workmen compensation,
As lot of construction activity is taking place in the India, Kingdom of Saudi Arabia, Arab countries, GCC and world wide inspite of global recession. The following information will be useful to the Principals, Contractors, sub-contractors and other interested parties.In most of the Civil Engineering or Machinery Erection Projects the Project Management faces the problem of fixing the responsibility for insuring the risks to which the project is exposed and for administering the insurance policies. The Project Manager and the Risk Manager has to assess the risks they face in the Project and shall have to make a decicion on the extent of insurance covers needed. Even when the other parties are obliged to insure various risks relating to the Project ultimately the cost will have to be borne by the Employer directly or indirectly.2. THE EMPLOYER'S RISKS:2.1. The Employer has the highest stake in completing the Project and hence in its insurance covers.2.2. In most of the cases, contracts can be better dealt with by the Employer assuming the responsibility for insurance. The Employer should foresee contingencies such as insolvency of the contractor, default by the Contractors, suspension/ termination of the Contractor replacing him with another Contractor etc while providing the insurance requirements.2.3. The factors in favour of the Employer carrying the insurable risks are:(a) The Employer has to pay the premium either directly or indirectly (costs built in the contract price). By combining the insurance requirements of various Contractors the volume of premium will be high enough to secure better insurance terms from the market.(b) The Employers has the highest stake in completing the project since his investment is exposed to the perils(c) The Contractors tend to cover their exposure only(d) Cover can be continued with the Fire Insurers for the completed sections(e) No gaps or grey areas as in the policies procured by the Contractors(f) Employer is protected in case of insolvency or termination of the Contractor and apponintment of another to complete the contract(g) Employer is protected against under-insurance if the insurances are properly arranged(h) Employer's insurance can take care of common facilities and utilities which may be used by many contractors(i) Employer can cover the risks of price escalation and replacement escalation where as the Contractors will be unwilling to cover such escalation in price(j) Coordination and completion of restoration works following a major loss to works carried out by different contractors will be easy if the indemnity is provided by one insurer(k) Following major losses it may not be possible to replace a machinery with another one of the same kind due to changes in technology. Employer's policy will be able to deal with the situation better in such a contingency(l) Employer is familiar with the local law and the import and customs law. Hence he can arrange protection needed to meet their reqirement.(m) If the Employer purchases the materials and supplies the same to the Contractor for Erection disputes may not arise between the Marine Insurer (of the Employer) and the Construction Risk Insurer as to when the damage occurred (when the materials are not checked as soon as they land or at the site) if both risks are covered by the same insurer(n) Administration of the insurance function will be easier and less expensive if the Employer effects policies including the interest of the Contractors and manages the risk using one centralised office for the whole project. Coordination will be easier with this type of centralised administration. This will also avoid time and effort spent on actions for recovery by different Insurers insuring different interests of the same subject matter affected.2.4. Even if the responsibility for managing the risks is passed on to the Contractors and the Employer is named as an insured, the Employer will continue to carry the following risks:2.4.1. MATERIAL DAMAGE AND LIABILITY:(a) Loss, damage or liability arising out of faulty design of the works by the Engineer(b) Loss or damage arising out of or aggrevated by the "excepted risks" such as the war, hostilities (whether war be declared or not), invasion, act of foreighn enemies, revolution, insurrection or military or usurped power,civil war, riot, commotion or disorder, ionising radiations or contaminations by radio-activity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel, radio-active toxic explosive or other hazardous properties of any explosive, nuclear assembly or nuclear component thereof, pressure waves caused by air craft or other aerial devices travelling at sonic or super sonic speeds, or any other operation of the forces of nature as an experienced contractor could not foresee, or reasonably make provision for (force majeure)(d) Loss or damage arising out of riot, strike or civil commotion or disorder(e) Loss or damage to the works or part of the works taken in to use or is occupied by the Employer(f) Non disclosure or misdescription of any material fact affecting the risk or any material changes affecting the risk(g) Loss or damage arising out of or aggrevated by wilful act or wilful negligence of the insured (Employer) or his responsible representative(h) Loss or damage arising out of or aggrevated by cessation of work whether total or partial(i) Loss or damge occuring after commencement of tests on the second hand machinery installed2.4.2. MATERIAL DAMAGE SECTION:In addition to the above risks mentioned in paragraph 2.4.1, the following risk are also to the account of the Employer even if the responsibility for insurance is passed on to the contractor:(a) Financial, consequential and trade losses such as the loss of anticipated profits due to delayed completion of the project, additional capital to be invested due to escalationin the project cost, penalties, fines, failure to secure special priviledges from the authorities due to delays (eg. concessional customs duties available during a period), loss of the targeted market etc.(b) Faulty design or defective material if these are supplied by the Employer(c) Loss or damage to materials supplied by the Employer due to normal wear and tear, corrosion oxidation or other normal atmospheric conditions2.4.3. THIRD PARTY LIABILITY:In addition to the above risks mentioned in paragraph 2.4.1, the Employer is exposed to the following risks in case of bankruptcy or closure of the Contracting Company the following risk are also to the account of the Employer even if the responsibility for insurance is passed on to the Contractor, unless each of the following risks is adequately insured by the party directly liable for the loss under specific policies such as the Workmen Compensation Insurance Property All Risks Insurance, Aviation Liability Insurance or the Motor Vehicle Insurance.(a) Legal liability to pay compensation for damages consequent up on accidental bodily injury to or illness of third parties not connected with the project work (whether fatal or not) and accidental loss of damage to property belonging to third parties occuring in direct connection with the erection, construction or testing on the insured project work and happening on or in the immediate vicinity of the of the site during the period of the cover(b) Legal liability to pay similar compensation for damages to one party involved in the construction work caused by another party involved in the same contract work(c) Liability consequent upon bodily injury to or illness of Employees or Workmen of the Principal, Contractors or any other Firm connected with the Project(d) Liability consequent up on loss of or damage to property belonging to or held in care, custody or control of the the Principal, Contractors and any other Firm connected with the Project(e) Liability consequent up on any accident caused by vehicles licensed for general road use or by waterborne vessel or craft(f) Liability assumed by agreement unless such liability would have attached also in the absence of such agreement(A) DAMAGE TO MATERIALS USED IN THE PROJECT:Construction Projects involving Civil Engineering Works and Machinery Erection are exposed to the following risks:1. Materials forming part of the construction work:(a) Construction/ Erection Risks while carrying out exploratory and/ proto type testing works such as drilling of test bore holes, exploratory excavations etc(b) Storage risks at the suppliers' and manufacturers' premises for imported and locally supplied materials which have already been sold but not delivered to the Contractor/ Principal(c) Marine/ transit risks from the suppliers'/ manufacturers' premises to the site of erection for materials to be imported including the risks of incidental & or intermidiate storages(d) Storages in bonded warehouses and/ or Project warehouses near the port of entry(e) Transits to and from the fabricators premises outside the construction site (for materials procured by the Contractor/ Principal and sent for fabrication/ assembly/ further process prior to Erection at site)(f) Risks during storage and fabrication/ assembly/ process at the intermediate fabricators premises mentioned in (d) above(g) Off site storages and inland transit from such storage locations to the site(h) Storage at site(i) Storage risks of materials procured for contracted/ subcontracted work but in custody of the Principal/ Contractor waiting to be handed over to the Contractor/ Sub-Contractor(j) Normal construction/ erection risk at site(k) Risks due to defective material and/ or defective workmanship(l) Risks due to faulty design(m) Completed portion of the work handed over to the Contractor but not handed over to the Principal(n) Completed sections taken over by the Principal but not taken in to use due to delay in completion of other sections(o) Risks during testing of each section of the Machinery on load(p) Integrated final testing of the complete line of Machinery on full load resulting in achievement of commercial production(q) The period of test run on load(r) Risks during the Period Of Maintenance(s) Risks during the Period Of Guarantee2. Materials used for or inconnection with the Project but not forming part of the work (temporary works not fully written of in the Project, Constructional Plant, Equipment and Machinery and Temporary Buildings such as Stores, Labour Camp etc):(a) Risks during transit from the storage premises of the owner to the site of Erection/ Construction(b) Risks during storage off site(c) Transit to and from such storage location to site and back daily/ periodically(c) Risks during storage at site.3. Unless specifically insured a normal Contractors/ Erection All Risks Policy will indemnify the Insured the cost of rectifying or replacing the item affected to the extent insured provided the loss did not occur due to any excepted peril. Such cover is provided for items 1(g) and 1(i) above if only the total contract value is declared for insurance. Even for these the following losses and/ or costs are not covered unless specifically agreed at the inception of the policy:(a) Architects, Surveyors and Consulting Engineers Fees to be incurred for reinstating the damaged property(b) Riot, strike and civil commotion risks(c) Cost of removal of debris following an indemnifiable damage to the contract work(d) Express freight (other than air freight) for replacements/ spares following an occurrence(e) Overtime, night work and holiday wages for repairs/ replacements following an occurrence(f) Air freight for replacements and spare parts to be procured following an occurrence(g) Additional customs duties for replacements/ spares to be procured following an occurrence(h) Escalation in prices of replacements/ spares to be procured following an occurrence (escalation may be due to inflation, incresed demand, reduced supply, increased cost of production, exchange rate fluctuation, original discounts not available for replacements etc; estimation of this should be based on the replacement cost of the project following a major catastrophic loss at the end of the construction period)(i) Escalation in the cost of the project due to the reasons stated in (h) above (limit of indemnity being the Escalated Project Value)(j) Cost of new parts for repairing second hand machinery and equipments(k) Loss of or damage to existing or surrounding property (not forming part of the contract work) caused by the construction work(l) Cost of removal of debris following land slides/ erosions and the cost of repairing the erroded slopes(m) Cost of replacement with newer/ improved model of the machine in the place of the destroyed (total loss) machine when the same model or its equivalent is not produced any more(n) Financial losses such as the loss of expected profits to be generated caused by the delay in completion of the project on account of an indemnifiable material loss or damage(o) Guarantee for the works following the maintenance period (5 years or 10 years guarantee for Buildings and Civil Engineering Works and additional 1 or 2 years guarantee for Machinery)(p) Loss of or damage to the Material Handling Equipments and other Machinery when they are being used for the Construction/ Erection activity after such equipments have been installed unless such equipments are insured as "Construction Plant and Machinery" for the period they will be used for the erection work by the Contractor or the Principal. Such equipments should also be insured as part of the Contract Work (the Contract Work sum insured also should include the value of such equipments) if such equipments will be taken over by the Principal as a part of the Main Project). An example is a gantry crane installed in a production bay and used for lifting the production machinery during installation.(B) LIABILITY TO THIRD PARTIES ARISING OUT OF THE WORK:Third party liability risks to which the Principal is exposed to are:Liability for accidental bodily injury or illness and for accidental loss of or damage to property caused by(a) The Principal or his representatives and employees to Third Parties and the Property of Third Parties not connected with the Project(b) The Principal or his representatives and employees to other Parties engaged in the Contract Work and to their PropertyLiability for accidental bodily injury or illness and for accidental loss of damage to property caused by(a) The Contractors and other parties employed by the Principal in connection with the Construction/ Erection Work to third parties not connected with the project(b) Any of the Contractor or the other parties employed by the Contractor in connection with the Contract Work caused to another party or another Contractor employed for the same projectLiability for loss of or damage to property in care, custody or control of the PrincipalCHECKLIST FOR RISK MANAGERS OF CONSTRUCTION/ ERECTION PROJECTS:DESIGN & CONSULT:Insurance cover for Architects, Design Engineers and Consulting Engineers:(a) Professional Indemnity cover to be producured by the Architects, Design Engineers and Consulting Engineers: limit of indemnity to be specified by the Principal depending on the exposureName of the specialist Period of cover Limit of indemnity(b) Personal insurances for these officials and their assistants:Cover Period of Limit of Schedule ofrequired insurance indemnity itemsMotor vehicle insuranceWorkmen Compensation insuranceGeneral liability insuranceInsurance covers for the employer/ principal:(a) Contactors all risks and third party liability covers including the following extensions:Risks to be covered:Insurance covers for the contractors and the sub contractors:(a) Marine/ inland transit cover for materials supplied(a) Contractors all risks and third party liability covers including the following extensions(b) Plant all risks cover(c) Motor vehicle insuranceCover to include:(d) Workmen compensation insurance(e) Medicare and personal accident covers(f) Bonds(g) Fire and perils covers for off site accommodation, offices, warehouse buildings etc (permanent buildings taken on lease and the contents not absorbed in the contract price)(h) General liability cover. Other types of Insurance Policies in Kingdom of Saudi Arabia. India and the world over are as follows.
All risks insurance in Saudi Arabia, India and worldwide,Aviation insurance,Accidental Insurance,Business interruption insurance,
Bullock Cart Insurance
Bancassurance
Boat Insurance
Baggage InsuranceConstruction insurance,
Craft InsuranceCasaulty Insurance,Credit Insurance,Credit Guarantee Insurance,
Computer All Risks Insurance
Consequential Loss InsuranceDirectors and Officers Insurance,Domestic maid insurance in saudi arabia,Employee dishonesty insurance,Erection insurance in saudi arabia,
Erection all risks insurance
Failed well InsuranceFidelity guarantee insurance in saudi arabia,Fire insurance,Fisheries Insurance,
Group life insurance,General insurance,Health insurance,
Hole in one Insurance
Horse Insurance,Insurance education in saudi arabia,
Individual health Insurance
Individual life InsuranceLiability Insurance in Saudi Arabia,Life insurance in saudi arabia,Loss of profit,
Loss of profit machinery breakdown Insurance
Loss of profit Material Damage Insurance
Personal Lines Insurance in India and Saudi Arabia.
Personal Accident Insurance
Personal Liability Insurance in India and Saudi Arabia
Personal Possession All Risks Insurance in Saudi Arabia and India,Poultry Insurance,
Protection and Savings insurance in Saudi Arabia, India and world over, (more popular in USA, Britain, France, Germany and other European countries)
Property All Risks Insurance
Professional Insurance Education in Saudi Arabia and India,
Insurance Education in Saudi Arabia and India
Insurance Institute of India,
Chartered Insurance Institute, London, United Kingdom.
Institute of Banking and Finance involved in professional insurance education in Saudi Arabia.
There are many other organizations offering professional insurance education in India apart from Insurance Institute of India.
Basic Property Insurance in Saudi Arabia, Indian and world overMachinery insurance,Machinery all risks insurance in saudi Arabia,Marine Insurance in Saudi Arabia and India,
Marine Cargo Insurance
Marine Hull InsuranceMedical insurance in saudi Arabia and India,Medical malpractice insurance,Money insurance in saudi arabia,Motor Insurance in Saudi Arabia and India,Personal possession insurance,Professional insurance education in saudi arabia,Property insurance in saudi arabia,Property all risks insurance,Third party insurance in saudi arabia,Travel insurance in saudi arabia,Workmen compensation,
Tuesday, June 16, 2009
Saudi Arabain Monetary Agency - Releases The Saudi Insurance Market Survey Report 2008
The Saudi Arabian Monetary Agency releases its annual report on The Saudi Insurance Market Survey Report ,2008. Which gives comprehensive information about the Insurance Industry in Saudi Arabia. It can be accessed at
http://www.sama.gov.sa/sites/SAMAEN/Insurance/InsuranceRegulations/Pages/Home.aspx
http://www.sama.gov.sa/sites/SAMAEN/Insurance/InsuranceRegulations/Pages/Home.aspx
3rd - Saudi Insurance Summit set to begin Today - 17-05-2009
Finally the long awaited 3rd Insurance Summit, 17-20 May 2009 is set to begin at the Riyadh Marriott Hotel, Riyadh today. The summit is being held amidst the growing global recession crisis.
The opening address will be given by the dynamic HE Mohammed Al Jasser, Governor of SAMA. It will be followed by the panel discussions and presentations by various leading personalities of the Insurance Industry.
In Saudi Arabia the Insurance Industry is going through a phase of regulation. The government had made the Medical and Motor insurance as Mandatory. The regulation scenario has brought about a new type of competition. Insurance Industry in Saudi Arabia is still grappling with the lack of well qualified and professional staff.
The hunger for business has fuelled the insurance companies to go all out for any kind of business without looking into the consequence. The Risk Management, main domain of Insurance Industry has taken a back-seat.
During the first two days of the summit, the focus will be on many issues including the state of Saudi Insurance Industry, co-operative Health Insurance, effect of Global financial crisis, Bancassurance and Risk Management. Another new element which is being seriously looked into is the Takaful Insurance, a concept which is being adapted throughout the world. The speakers are drawn from Saudi Arabia, Middle East and Europe.
Dr. Saleh J. Malaikah, Chairman, SALAMA had said, "With enormous untapped potential, the insurance market in Saudi Arabia continues to flourish and is poised for impressive growth in the coming years. Recent studies have shown that the KSA market for Sharia-compliment insurance will be worth US$4 billion in 2010, and forecast that the Islamic insurance (Takaful) market will grow five-fold over the next 10 years. The Third Saudi Insurance Summit will provide timely opportunity for reflection, discussion and decision-making -- helping all attending to take the insurance market forward in challenging but opportunity-filled times."
Mr. Mohammed Sadullah Khan, an Insurance Expert and the Faculty Member at The Institute of Banking, was upbeat about the summit and opined that this will provide an ample opportunity for the Insurance Industry in Saudi Arabia. This will also serve as a platform for networking and help the Insurance Industry to move forward and make them look at the challenges with a 360 degree vision. In the current scenario the Insurance Industry is facing a shortage of qualified Manpower. Saudization will help the Industry if a proper training program is put in place. Insurance is not like trading, it is highly technical Industry. Without understanding the intricacies of Insurance, it will not be possible to run a mutually beneficial organization.
Shujaath Ahmed Khan, is a freelance writer and can be contacted at shujaathahmed@yahoo.co.in.
The opening address will be given by the dynamic HE Mohammed Al Jasser, Governor of SAMA. It will be followed by the panel discussions and presentations by various leading personalities of the Insurance Industry.
In Saudi Arabia the Insurance Industry is going through a phase of regulation. The government had made the Medical and Motor insurance as Mandatory. The regulation scenario has brought about a new type of competition. Insurance Industry in Saudi Arabia is still grappling with the lack of well qualified and professional staff.
The hunger for business has fuelled the insurance companies to go all out for any kind of business without looking into the consequence. The Risk Management, main domain of Insurance Industry has taken a back-seat.
During the first two days of the summit, the focus will be on many issues including the state of Saudi Insurance Industry, co-operative Health Insurance, effect of Global financial crisis, Bancassurance and Risk Management. Another new element which is being seriously looked into is the Takaful Insurance, a concept which is being adapted throughout the world. The speakers are drawn from Saudi Arabia, Middle East and Europe.
Dr. Saleh J. Malaikah, Chairman, SALAMA had said, "With enormous untapped potential, the insurance market in Saudi Arabia continues to flourish and is poised for impressive growth in the coming years. Recent studies have shown that the KSA market for Sharia-compliment insurance will be worth US$4 billion in 2010, and forecast that the Islamic insurance (Takaful) market will grow five-fold over the next 10 years. The Third Saudi Insurance Summit will provide timely opportunity for reflection, discussion and decision-making -- helping all attending to take the insurance market forward in challenging but opportunity-filled times."
Mr. Mohammed Sadullah Khan, an Insurance Expert and the Faculty Member at The Institute of Banking, was upbeat about the summit and opined that this will provide an ample opportunity for the Insurance Industry in Saudi Arabia. This will also serve as a platform for networking and help the Insurance Industry to move forward and make them look at the challenges with a 360 degree vision. In the current scenario the Insurance Industry is facing a shortage of qualified Manpower. Saudization will help the Industry if a proper training program is put in place. Insurance is not like trading, it is highly technical Industry. Without understanding the intricacies of Insurance, it will not be possible to run a mutually beneficial organization.
Shujaath Ahmed Khan, is a freelance writer and can be contacted at shujaathahmed@yahoo.co.in.
Sunday, May 10, 2009
3rd Saudi Insurance Summit, Riyadh, Kingdom Saudi Arabia
The 3rd Saudi Insurance Summit, the premier annual insurance event for Saudi Arabia, taking place at the Riyadh Marriott Hotel from 17 – 20 May 2009.The Kingdom looks set to face a number of challenges in both the economic and political sphere. Some of these challenges lie in the continued development of the private sector, as well as in the reduction of the country’s dependence on oil in order to achieve economic diversification and ensure long-term economic growth.Historically, the insurance sector has been one of the challenges for the Saudi Arabian government but was always clearly a source of huge potential. Great strides have been made to move the industry forward and with the Saudi Arabian Monetary Agency (SAMA) continuing to develop the insurance industry through increased market liberalisation, the sector has been boosted with greater credibility and sophistication. It is thought that these developments will result in a doubling of insurance turnover over the next five years. The 3rd Saudi Insurance Summit will tackle all the current issues and developments, including these significant topics, through a series of presentations and panel discussions. There will be ample opportunity for you to address your questions to each of the high profile professionals participating in this important industry event. In addition to the exclusive two-day summit, there is a practical pre-summit workshop and intensive two-day post-summit seminar covering some of the most important subjects in the Saudi insurance industry. These interactive training days are designed by experienced trainers to provide delegates with tangible tools and techniques to take back to their respective organisations and put into practice immediately. You can find out more information about these exclusive training events as well as all the information about the 3rd Saudi Insurance Summit by reading this brochure.As the organisers of the nationally recognised insurance industry event for Saudi Arabia, it is our pleasure to welcome you to what will be the largest and best Summit that has ever been held in the Kingdom. It is our hope that you will join us to support competition and vibrancy within the market. Featuring new and progressive organisations looking to improve a once stagnant industry, the 3rd Saudi Insurance Summit is an event that cannot be missed.
Participants
SAMA, KSA
SALAMA, KSA
Heritage London, UK
PricewaterhouseCoopers, KSA
Bank Al Jazeera, KSA
National Takaful Insurance Company (NTICO), KSA
Standard and Poor’s
AIG-ALICO, KSA
United Insurance Brokers Ltd., UK
Saudi Telecom Company, KSA
Saudi Basic Industries Corporation (SABIC), KSA
Ministry of Health, KSA
Council for Cooperative Health Insurance (CCHI), KSA
Manar Sigma Financial Consulting, KSA
The Chartered Insurance Institute, Bahrain
Aldar Audit, UK
Swiss Reinsurance Company,Switzerland Federation of the Mediterranean Insurance Intermediaries (FMBA), Lebanon
Unit Head of Bancassurance, First Gulf Bank
SALAMA, KSA
Heritage London, UK
PricewaterhouseCoopers, KSA
Bank Al Jazeera, KSA
National Takaful Insurance Company (NTICO), KSA
Standard and Poor’s
AIG-ALICO, KSA
United Insurance Brokers Ltd., UK
Saudi Telecom Company, KSA
Saudi Basic Industries Corporation (SABIC), KSA
Ministry of Health, KSA
Council for Cooperative Health Insurance (CCHI), KSA
Manar Sigma Financial Consulting, KSA
The Chartered Insurance Institute, Bahrain
Aldar Audit, UK
Swiss Reinsurance Company,Switzerland Federation of the Mediterranean Insurance Intermediaries (FMBA), Lebanon
Unit Head of Bancassurance, First Gulf Bank
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