Yashinda Dissanayake - Insurance Consultant

School memories 2013

Travel Insurance

Imagine you are planning to go outside of the country for a short period of time. You would be exposed to number of risks. To cover you up from this risks, insurers offering you a policy named “Travel Insurance”.

There are two types of travel insurance policies
1. Single trip
2. Annual

You can purchase an annual policy if you undertake multiple trips within a twelve-month period of time.
Otherwise single trip travel policy fits for you.
When considering the basic coverage of a travel insurance, there are five main areas covered,
1. Medical and associated expenses
2. Personal Accidents
3. Deposits due to cancellation of the trip
4. Baggage, personal effects and money (Money could take various forms, not merely cash)
5. Personal liability to the third parties

In addition to above areas, there are some extensuions too,
• Hospital cash benefits
• Delayed baggage
• Hijack
• Travel delay
• Loss of passport
• Legal expenses

Medical Expenses section covers expenses reasonably incurred respect of following,
• Medical treatment, hospital charges, surgical expenses, emergency dental treatment. (Dental treatments are covered if it is an emergency one. Otherwise dental treatments are not covered under a basic travel insurance policy. If someone want to cover up it, you can purchase a “Global Medical Insurance”)
• Additional expenses for accommodation of patient and member of family on prescription by a doctor/ consultant/ physician.
• Additional travel expenses and expenses to bringing the patient back to the home.
There are some specific exclusions except general exclusions.

• Loss of luggage due to confiscation (By customs or local authorities)
• Personal effects left unattended
• Losses not report within 24 hours
• Self- inflicted injuries
• Alcohol or drug abuse
• Participation in manual works
• Pregnancy and child birth
• Taking part in hazardous activities (generally described in the policy)

There would be some excesses.

Local insurers are not willing to issue travel insurance policies to persons who visit some countries like Mexico etc.

To issue a quotation, the proposer or the sales office should submit following information to the underwriter.
• The countries to planning to visit
• Duration of the trip
• Ages of travelers
• The limit of liability
• Whether it is North America or not
• Whether it’s a Schengen country or not

To proceed the policy, the proposer has to submit a clear copy of passport and filled and signed proposal form. (Now days insurers are using technological ICT systems)
Bonus facts:
To get full medical coverage for higher limits, you can purchase a “Global Medical Insurance” which covers you worldwide.
A travel insurance policy normally issuing for few days to 3-4 months only.

By Yashinda Dissanayake

All rights reserved

Insurable interest

This is an insurance principal which insurers aware already.

What is insurable interest….? There is no any specific definition to this term. Considering the all definitions and take it as a summary, the term Insurable Interest can be identified as below.



“Legal right that a person or an organization holds to insure a subject matter”.



There are few elements of Insurable interest. As following,

-Financial or economical interest of the proposer to subject matter
-The interest must be a current interest, not merely an expectancy
-A subject matter of insurance
-The interest must be a legal one


Why insurers have imposed this….. ?

-To reduce possible moral hazards
-To avoid wagering


In a business insurance/ commercial insurance/ Non-consumer insurance

Partners can insure each other
Employers can insure employees


In life insurance,

-Spouse
-Assignee

In property insurance,

Tenant and landlord
Bailees
Mortgagers and mortgagees


Insurance contracts are illegal and voidable if there are no “Insurable Interests”.

Economical interest must be proven, when you do an insurance on behalf of another to make the contract valid before the courts.

By,
Yashinda Dissanayake - Insurance Consultant

Why don't you need a FAMILY MEDICAL INSURANCE.....?

Lets discuss.....

There are various professions in Sri Lanka. Some are emplyed and some are unemployed. Others are self employed.
Most of the employees are currently enjoing a medical hospitalize insurance. Most of self employed perosonals are absolutely not.

Lets have a look into emplyed people. While they enjoing the medical insurance for themselves and their family members, they think that the limit of coverage would adequate for medical expenses. But, do you think it is adequate? No, not at all. Most of the employees are currently having a medical insurance under the limit of 200,000 LKR.

Nowdays, with higher level of inflation and due to the exchange rates you cannot fullfill your medical reimbursement desire by having such amount as the medical insurance limit.
In my openion, you should increase your medical insurance limits.
How can you do that?

Self employed persons too having a family. So you must care about them. Most probably you do not have a medical insurance except your personal life insurance. Have you ever think of your family?

In an economical situation like this, all of you must purchase a family medical insurance to protect your beloved ones against medical conditions.

With legendary insurer Mr. Niranjan Manickam

පවතින තත්තවය හමුවේ රජය විසින් සාමාන්‍ය ජන විරෝධතා ත්‍රස්තවාදය බව පෙන්වීමට කටයුතු කරන අතර මෑත අනාගතයේදී හදිසි නීතිය ක්‍රියාත්මක කර ත්‍රස්තවාදය ප්‍රකාශ කල හැක. එබැවින් ඔබගේ වාහනය/නිවස/ව්‍යාපාර රක්ෂණය සඳහා ත්‍රස්තවාදී ආවරණය ලබාගන්නා මෙන් දන්වා සිටිමි

72 Hours Clause

Most probably you may not aware about this clause since it is not within the main clauses in a non-motor insurance.

In this particular clause, this describes and related to the perils from natural disasters.

In an event of a natural peril, frequent claims arise within 72 hours are recognized as a single event.

Ex : Imagine there is a storm and the losses arise within the first 72 from the beginning of the storm, are considered as a loss by a single event. Therefore, if there is a limit on each event would be affected to the indemnity claim.

Yashinda Dissanayake
All rights reserved
Intellectual propert Act

සමුද්‍ර රක්‍ෂණය සම්බන්ධයෙන් ගත් කල, Cargo, Hull & Machinery සහ P&I (Protection & Indemnity) ලෙස ප්‍රධාන කාණ්ඩ 3ක් ඇත.
මෙම ලිපියෙන් අපි හල් සහ යන්ත්‍රෝපකරණ රක්ෂණය පිළිබඳව සාකච්ඡා කිරීමට නැඹුරු වෙමු.
යමෙකුට නැවක් හෝ යාත්‍රාවක් රක්ෂණය කිරීමට අවශ්‍ය නම් (SUV රථය නොවේ), එසේ කිරීමට අවස්ථා තිබේ.
1) Hull & Machinery රක්ෂණයක් හරහා තමන්ම ආරක්ෂා කර ගැනීම
2) P&I රක්ෂණයක් හරහා තෙවන පාර්ශවයන් ආරක්ෂා කිරීම

මෙය මෝටර්රථ රක්ෂණයක් වැනිය, ඔබට විස්තීරණ රක්ෂණයක් හෝ තෙවන පාර්ශවයකට පමණක් රක්ෂණයක් මිලදී ගත හැක. මෝටර් රථ සවිස්තරාත්මක රක්ෂණය තුළ, එය වර්ගීකරණයකින් තොරව තමන්ගේම හානි සහ තෙවන පාර්ශවයන් ආවරණය කරයි. නමුත් සමුද්‍ර රක්‍ෂණයේදී වෙනම ආවරණ සඳහා වෙනම ප්‍රතිපත්ති ලබා ගත යුතුය.
සරලව කිවහොත්, Hull & Machinery රක්ෂණය පූර්ණ/විස්තීර්ණ මෝටර් රථ රක්ෂණයක් ලෙසත්, P&I තෙවන පාර්ශවීය මෝටර් රථ රක්ෂණයක් ලෙසත් තේරුම් ගැනීම පහසුය.
තාක්ෂණික වශයෙන්, හල් සහ යන්ත්‍රෝපකරණ රක්‍ෂණයට යාත්‍රාව ජලය හරහා ගමන් කරන අතරතුර රක්‍ෂිත අනතුරු හේතුවෙන් සිදුවන හානිවලට එරෙහිව ආරක්ෂාවක් ලෙස අර්ථ දැක්විය හැක. එය කුණාටු, ගින්න සහ අනෙකුත් අන්තරායන් ආවරණය කරයි. තෙවන පාර්ශවීය නෛතික වගකීමේ අවශ්‍යතාවය සපුරාලීම සඳහා, "Collision Liability" ලෙස පිළිගත් අතිරේක ආවරණයක් ඇත. යාත්‍රාව හෝ නැව තවත් එකක ගැටී භාණ්ඩ හා දේපළවලට හානි සිදුවුවහොත් ගැටීමේ වගකීම එම ස්ථානයට පැමිණේ.
වාරිකය ගණනය කිරීමේදී, මෝටර් රථ රක්ෂණය සමඟ මෙම රක්ෂණ සංසන්දනය කිරීමට මා උත්සාහ කළද, මෝටර් රථ රක්ෂණයකට වඩා වැඩි තොරතුරු ප්‍රතිරක්ෂණකරුවන්ට අවශ්‍ය වේ. වෙනත් රක්ෂණ ප්‍රතිපත්තිවලට සම්බන්ධ නොවන අසාමාන්‍ය අවදානම් සාධක ඇගයීම මගින් ප්‍රතිරක්ෂණකරුවන් අවදානම ඇගයීමට ලක් කළ යුතුය. ඒවා වරායේ ගැඹුර, යාත්‍රාව ඉදිකිරීම, වඩදිය ආරක්‍ෂාව සහ වරායේ නැංගුරම් ලෑම ලෙස හඳුනාගත හැකිය. වෙනත් අවදානම් සාධක රක්ෂණයකදී සලකා බලනු ලැබේ.
Hull & Machinery රක්ෂණය ආවරණය කරන්නේ යාත්‍රාවට හෝ යන්ත්‍ර සූත්‍රවලසහ වර්ගීකරණය කරන ලද තුන්වන පාර්ශ්වයන්ට සිදුවන පාඩුව හෝ හානි පමණි. භාණ්ඩ සඳහා වෙනම රක්ෂණයක් සහිතව රක්ෂණය් කළ යුතුය.
මගේ පෙර පළ කිරීම් මගින් ඔබට භාණ්ඩ රක්‍ෂණ ආවරණ සරලව ඉගෙන ගත හැකිය.

-යෂින්ද දිසානායක-
බුද්ධිමය දේපල පනත 2003

First I would say sorry to all of you about writing this article in English. The Sinhala translation will be uploaded soon.
Let’s get to the point. When it comes to Marine Insurance, there are 3 main categories as Cargo, Hull & Machinery and P&I (Protection & Indemnity).
In this article we tend to discuss regarding the Hull & Machinery Insurance.
If someone wants to insure a ship or a vessel (Not the SUV), there are two scenarios to do so.
1). Protecting the own through a Hull & Machinery Insurance
2). Protecting third parties through a P&I Insurance

This is like motor insurance, you may buy a comprehensive insurance or a Third party only insurance. In Motor comprehensive insurance, it covers the own damages and the third parties without categorizations. But in Marine insurance, you have to get separate policies for separate covers.
Simply, its easy to understand that the Hull & Machinery Insurance as a full/ comprehensive motor insurance and P&I as third party only motor insurance.
In technical terms, the Hull & Machinery Insurance can define as a protection against the damages caused by insured perils while the vessel is in transit over water. It covers storms, fire and other perils. To fulfill the requirement of the third party legal liability, there is an additional coverage recognized as “Collision Liability”. If the vessel or the ship collides with another and damages to cargo and properties, the collision liability comes to the place.
When calculating the premium, underwriters need more information than a motor insurance even though I tried to compare these insurances with motor insurance. Underwriters have to evaluate the risk by evaluating the uncommon risk factors that are not related to other insurance policies. Those can be identified as Depth of the port, the construction of the vessel, the presence of tide protection and anchorage at the port. Other risk factors are common considering in an insurance.
The Hull & Machinery Insurance covers only loss or damage to the vessel or machinery and the categorized third parties. Cargo should be insured with a separate policy.
You can simply learn cargo insurance coverages by my previous posts.

-Yashinda Dissanayake-
Intellectual propert Act 2003

Old days

බෝයිස් ඇට් කොලඹාර්

The Recital - Parties to the contract and premium. Insured ceding the risk to the insurer and insurer charge a premium on it

Operative clause - It explains the extended coverage under the policy.
Ex : Personal Accident cover under Motor Insurance policy

Exceptions - Restrictions under operatice clause. Insurer shall grant the cover on specific exceptions.

Conditions - Specific terms, requirements to keep policy valid

Warranties - It explains the duty of the insured. Insured must adhere with warranties, otherwise insurer has the right to refuse paying claims even though the loss not happened due to the breach of warranties.

Ex: No smoke warranty. Even in a loss due to flood, if insured breach the warranty of No smoking, the claims would be rejected.

YD

Useful to understand estimate approvals

Pro tip - Do not use jargons with customers 🤛🤛🤛🤛

රක්ෂණ මූලධර්ම.....
සවිස්තරාත්මකව ඉදිරියේදී......

Marine insurance clauses

SLIM NASCO
Silver award - General Insurance

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So much more is coming 💪💪💪💪