Luxury Rosewood Coffins: Is Spending Millions on a Burial Worth It?

Published September 3, 2024August 31, 2024 by jamin

Luxury Rosewood Coffins: Is Spending Millions on a Burial Worth It?

**The Prized Rosewood Coffin: A Tale of Luxury, Art, and Risk**

In my 23 years of navigating the world of general insurance, I’ve seen my fair share of unusual cargo. But none were quite as remarkable as the day I was called to insure a shipment of two extraordinary rosewood coffins.

### The April Fools’ Day Call—But This Was No Joke

It all began on an April Fool’s’ morning. My Singaporean partner, Mr. Leong, who typically dealt with used imported tyres, reached out with an urgent request. He needed to help to underwrite a shipment of coffins—no ordinary coffins, but opulent rosewood masterpieces destined for a Singaporean tycoon. Mr. James, a skilled craftsman, crafted the dragon and phoenix on both sides of these coffins. His masterpieces of art were stored in Ho Chi Minh City, Vietnam, and awaited our green light to ship them out immediately.

Luxury Rosewood Coffins: Is Spending Millions on a Burial Worth It?

### Coffins as Art—Craftsmanship Beyond Compare

These were not just coffins; they were works of art. Commissioned as a tribute to the tycoon’s elderly parent, the coffins were carved from the finest rosewood, each adorned with intricate dragon and phoenix designs. A team of ten master craftsmen had painstakingly worked for three months to bring these designs to life. The rosewood, sourced from trees over 100 years old, was further enhanced with a touch of gold dust, giving the carvings an ethereal shimmer. The entire process, from sourcing the wood to the final polish, took six months. The irony? These exquisite pieces were destined to be cremated.

### The Challenge—Insuring the Uninsurable

My job was to insure these coffins against any possible damage. The client had one non-negotiable demand: the exterior had to remain flawless. In their belief, even the slightest scratch was seen as a bad omen, signalling misfortune for the family. This condition made Vietnamese insurers hesitate. But I accepted the challenge.

Luxury Rosewood Coffins: Is Spending Millions on a Burial Worth It?

### Preparing for Perfection—A Seamless Journey

To ensure these coffins arrived in perfect condition, I laid out a meticulous plan:

– **Detailed Inspection:** A Swiss cargo surveyor was hired to inspect the packaging and record detailed video footage of the carvings before shipment.
– **Wood Verification:** A dendrochronologist provided a report verifying the rosewood’s age, ensuring it was indeed over 100 years old.
– **Protective Packaging:** The coffins were encased in double-layered corrugated boxes with styrofoam inserts to absorb shocks. They were then wrapped in airtight plastic to prevent moisture damage.
– **Professional Handling:** Experienced handlers were employed to supervise the loading process, ensuring the coffins were placed securely in the container.
– **Foam Padding:** To avoid any movement during transit, the gaps in the container were filled with protective foam padding.

Given the craftsmanship and the client’s demands, the declared value was increased by 30% to S$2.6 million for insurance purposes.

Luxury Rosewood Coffins: Is Spending Millions on a Burial Worth It?

### Comprehensive Policy Coverage

The insurance policy I crafted was equally detailed, covering:

– **ICC “A” Clause:** Comprehensive marine insurance.
– **Constructive Total Loss:** Coverage in the event the container was submerged.
– **Loading/Unloading:** Protection during these critical phases.
– **Hijacking and Armed Robbery:** Particularly for the high-risk areas near the Southern Philippines and Indonesia.
– **Strike, Riot, and Malicious Damage:** Additional protection against civil unrest.
– **Warehouse-to-Warehouse:** Coverage from the moment the coffins left the workshop until they arrived at the final destination.
– **Scratch and Dent Coverage:** Specific coverage for any damage to the coffins’ delicate carvings.

Luxury Rosewood Coffins: Is Spending Millions on a Burial Worth It?

### The Unthinkable—A Scratch at Customs

Despite all the precautions, disaster struck during the Singapore customs inspection. A handler, perhaps careless or simply unlucky, pierced the double-layered packaging with a long knife, leaving a noticeable scratch on the dragon head carving.

### A Claim Filed—And Settled

Thankfully, the pre-shipment video provided undeniable proof that the coffins were in pristine condition before departure. Armed with this evidence, I filed a claim against the freight forwarder for negligence. Given the agreed-upon value policy, the client received a settlement of S$1.3 million, minus the deductible, accounting for the salvage value of the damaged rosewood.

### A Reflection—The Cost of Luxury

As I closed this case, I couldn’t help but reflect on the lengths some go to for their final resting place. A rosewood coffin is more than just a burial vessel; it’s a statement of wealth, a testament to craftsmanship, and, in this case, a symbol of filial piety. But in the end, is it worth it to invest so heavily in something destined for six feet underground?

Luxury Rosewood Coffins: Is Spending Millions on a Burial Worth It?

One notable incident occurred in October 2019 when Typhoon Hagibis, a powerful storm, swept through the South China Sea and surrounding areas. The typhoon, known for its destructive force, was responsible for the sinking of the Panamanian-flagged cargo vessel “Jianfu Star.”

The vessel was en route from Indonesia to China when it encountered the typhoon’s fury off the coast of the Philippines. Battling violent winds and towering waves, the Jianfu Star was overwhelmed, leading to the ship’s capsizing and eventual sinking. Tragically, 13 crew members were reported missing, and despite search and rescue efforts, the majority were never found. This incident highlights the perilous nature of maritime navigation in the South China Sea, especially during typhoon season.

A powerful storm swept through the South China Sea, creating treacherous conditions for maritime vessels. The storm, which recorded wind speeds exceeding 100 knots, generated towering waves and reduced visibility to nearly zero. Several ships in the region, including cargo vessels and fishing boats, were caught in the storm’s path, leading to significant delays, re-routing, and, in some cases, distress calls. The storm’s intensity disrupted shipping lanes, with many vessels seeking shelter in nearby ports, underscoring the unpredictable and hazardous nature of marine adventures in this volatile region.

Insuring your cargo has never been more crucial, especially in light of the recent impacts of global warming. As climate change intensifies, we’re witnessing an increase in the frequency and unpredictability of severe weather conditions. From violent storms in the South China Sea to sudden shifts in temperature, these environmental changes pose significant risks to maritime transport. Uninsured cargo is vulnerable to damage, loss, or delays, potentially resulting in substantial financial losses. In today’s volatile climate, comprehensive cargo insurance is not just a precaution—it’s a necessity to safeguard your assets against the unforeseen.

### Sharing the Tale

If this story captivated you, share it with others who might appreciate the delicate balance between luxury and risk. I welcome your thoughts, suggestions, and, of course, your subscription to my mailing list.

Marine underwriter using outdated git for transporter

Published August 31, 2024 by jamin

Marine underwriter using outdated git for transporter

In the dynamic world of marine insurance, transporters face a myriad of challenges that require both strategic foresight and practical solutions. From managing sensitive product information to navigating complex insurance claims, marine underwriters play a pivotal role in safeguarding goods in transit. This blog delves into some pressing issues faced by marine underwriters and transporters, offering insights and best practices to enhance risk management and insurance efficacy.

1. The Conundrum of Sensitive Product Information

Transporters often handle products whose pricing and specifications are sensitive. Manufacturers typically do not disclose unit prices to transporters to maintain confidentiality and competitive advantage. This presents a challenge for insurers when estimating annual carrying values for insurance purposes.

Best Practice:

Blanking Out Sensitive Information: Ensure that both invoices and delivery orders have unit prices blanked out. This maintains confidentiality while still providing necessary documentation for insurance assessments.
Collaborative Estimation: Work closely with manufacturers to develop standardized methods for estimating values without disclosing sensitive information.

2. Declaring Inland Transit Without Cross-Border Complexity

Declaring inland transit can be straightforward unless the transportation crosses international borders, such as within the EU, where multiple regulations and Incoterms come into play.

Best Practice:

Clear Documentation: Ensure all inland transit documents are thorough and comply with local regulations.
Understanding Incoterms: Familiarize yourself with relevant Incoterms like FOB (Free on Board), CIF (Cost, Insurance, and Freight), CNF (Cost and Freight), and Ex-Works to determine responsibility and liability accurately.

3. Navigating Insurance Claims and Responsibility

In scenarios where goods are hijacked before reaching the port of loading, determining responsibility can be complex, especially when different Incoterms are in play.

Case Study:

Ex-Works Term: The transporter is responsible until the goods leave the warehouse. If goods are hijacked during transit, the transporter’s insurance is liable.
FOB/CIF Terms: Responsibility shifts based on the Incoterm. For instance, under FOB, responsibility transfers once goods are loaded onto the vessel, making the overseas buyer’s insurer liable for subsequent claims.

Best Practice:

Clear Incoterm Agreements: Clearly define Incoterms in contracts to delineate responsibility.
Subrogation Clauses: Implement waiver subrogation clauses to prevent double insurance claims and streamline the claims process.

4. Addressing Double Insurance Concerns

Multiple insurers cover the same risk, leading to complications during claims.

Solution:

Waiver Subrogation Clauses: These clauses allow the insured to waive the right to subrogation, preventing insurers from pursuing each other for claims, thus mitigating the risk of double insurance.

5. Premium Calculations and Affordability for Transporters

Transporters with substantial sales turnover may find high insurance premiums burdensome, especially when estimating annual carrying values that are significant.

Example:

A transporter with a sales turnover of RM9.5 million might face a premium of RM1.5 million for an estimated annual carrying value of RM100 million at a premium rate of 1.5 sen/100 from an Asian insurer, compared to 3 sen/100 from a local insurer.

Considerations:

Reinsurance Treaties: Local insurers may offer lower premiums due to reinsurance agreements, making them more affordable.
Risk Assessment: Transporters should conduct thorough risk assessments to determine the most cost-effective insurance options without compromising coverage.

6. The Role of Agents and Brokers in Closing Sales

Agents and brokers play a crucial role in the insurance ecosystem by bridging the gap between insurers and transporters. However, there’s often a tension between designing comprehensive quotations and meeting the immediate needs of clients.

Best Practice:

Balanced Quotations: Develop quotations that are both comprehensive and client-friendly, ensuring essential clauses are included without overwhelming the transporter with complex terms.
Client Education: Educate clients on the importance of various clauses and coverage options to foster trust and facilitate informed decision-making.

7. Enhancing Practical Knowledge in Marine Underwriting

Marine underwriters must stay abreast of field realities to provide relevant and effective insurance solutions. Practical experience complements theoretical knowledge, leading to better risk assessment and claim handling.

Recommendation:

Field Engagement: Encourage underwriters to engage directly with transporters, visit operational sites, and participate in maritime industry events.
Continuous Learning: Invest in ongoing training and professional development to keep up with evolving industry standards and practices.

Marine underwriter using outdated git for transporter

When it comes to the marine underwriter asking for an annual estimated carrying for a transporter, it’s crucial for accurate premium calculation. However, as you pointed out, the transporter often doesn’t have access to sensitive information like the unit price of goods, which makes estimation challenging, especially if the product is sensitive. Transporters often rely on delivery orders or blank invoices, and when cross-border transactions or Incoterms (like FOB, CIF, CNF, Ex-warehouse/factory) are involved, the complexity grows.

The case of fraudulent claims, such as the hijacked goods before port loading, highlights how both the local and overseas insurers can get involved, leading to potential double insurance. This can occur when two policies—like the local transporter’s inland transit insurance and the overseas buyer’s international marine insurance—both cover the same risk. Whether the total value of goods like $300k is factored into the estimated annual carrying or not depends on the underwriter’s approach and the specifics of the policies.

For a transporter with RM100 million in estimated annual carrying, premium rates of 1.5 sen/100 from an Asian insurer compared to 3 sen/100 from a local insurer may seem excessive, especially if the reinsurer treaties increase the local premium. An RM9.5 million turnover transporter may find it hard to justify a premium of RM1.5–3 million unless the risks are significant or the terms are more favourable. This situation often places brokers or agents in a tough spot, as they need to balance competitive premiums with adequate coverage and terms that protect the insured. Challenges in Estimating Annual Carrying:

Transporters often face difficulties in providing accurate annual carrying estimates due to a lack of access to sensitive information such as the unit price of goods. This is especially true when invoices and delivery orders have prices redacted.

**Double Insurance Risk:**
Double insurance can occur if both the buyer and transporter take out separate policies covering the same goods. For instance, a local transporter might have inland transit insurance, while the buyer holds marine insurance. This situation can complicate claims, particularly in cases of loss or theft before the goods reach their final destination.

**Premium Calculation and Negotiation:**
For a transporter with RM100 million in estimated annual carrying, premium rates can vary significantly. A transporter cannot afford the high premiums, if the local insurer’s rates are influenced by reinsurance treaties. This is a critical point for brokers and agents who need to ensure competitive yet comprehensive coverage.

**Practical Advice for Marine Underwriters:**
Marine underwriters should be proactive in understanding real-world risks by engaging with the field rather than solely relying on office-based assessments. Practical experience can lead to better policy designs that balance coverage and cost-effectiveness.

These revised points will provide a clearer and more accurate perspective for those involved in marine and inland transit insurance, ensuring that responsibilities and risks are well understood.

Marine underwriter using outdated git for transporter

**Annual Turnover vs. Estimated Annual Carrying**

The **Estimated Annual Carrying** is often irrelevant in a good-in-transit proposal form due to Incoterm provisions. From a transporter’s perspective, it’s more logical to use **annual sales turnover** to compute premiums, as this approach minimizes the risk of double insurance.

Mitigating fraudulent claims:

The use of estimated annual carrying can lead to exploitation, where fraudulent transporters might submit endless claims within a year. For example, one year could see multiple claims, followed by even larger claims in subsequent months. To curb this, it’s wise to cap aggregate claims per year and per accident and limit liability per accident based on the transporter’s annual turnover.

**Fairness in Premium Calculation:**
– This method of capping and limiting liability not only prevents fraudulent claims but also creates a fairer system for both the insured and the insurer. It aligns the premium more closely with the actual risk the transporter presents, rather than relying on potentially inflated estimates of annual carrying.

. **Practical Advice for Marine Underwriters:**
Marine underwriters should incorporate these strategies into their policies to strike a balance between coverage and fraud prevention. By limiting liability based on turnover and capping claims, insurers can offer more realistic and fair premiums that reflect the true risk profile.

Marine underwriter using outdated git for transporter

These points offer a comprehensive approach to addressing the complexities of marine and inland transit insurance, ensuring that both transporters and insurers are protected against potential abuses and misunderstandings related to Incoterms.

My experience in handling such complex claims and standing firm on your decision, even in the face of legal pressure, reflects a deep understanding of both insurance law and the intricacies of shipping and transportation.

Marine underwriter using outdated git for transporter

**Real-World Case: Repudiation of a Transporter’s Claim:**
In one notable case, despite the transporter hiring two prominent lawyers to speed up claim recovery under ex-work terms, the claim was repudiated. I countered legal arguments with a deep understanding of shipping and insurance principles, leading to the refund of premiums and blacklisting of the transporter.

**Leveraging Industry Experience:**
Drawing on a decade of experience in a conglomerate’s shipping department, it’s crucial to stand firm on contractual terms. My background provides the necessary insight to recognize when claims are unjustified. The claimant applied legal pressure on me.

4. **Importance of Accurate Premium Calculation and Claim Limits:**
This experience underscores the importance of capping aggregate claims per year and accidents and limiting liability based on the transporter’s turnover. These measures protect against fraudulent claims and ensure premiums are fair and reflective of actual risk.

5. **Guidance for Marine Underwriters:**
Marine underwriters should use these insights to design policies that are both fair and robust. The claim is paid based on the terms justification. This involves a thorough understanding of Incoterms, claim responsibilities, and the potential for fraudulent claims.

This approach combines your expertise in handling disputes with practical advice for other professionals in the field, ensuring they are better prepared to manage similar situations.

Marine underwriter using outdated git for transporter

Conclusion

Marine insurance for transporters is a complex field that demands a balance between risk management, cost-effectiveness, and practical applicability. By addressing sensitive information handling, understanding Incoterms, preventing double insurance, managing premiums, and enhancing practical knowledge, marine underwriters can provide robust support to transporters. Building strong relationships through transparent communication and tailored insurance solutions is key to navigating the challenges and ensuring the safe transit of goods.

Finally, please leave your thoughts and constructive comments in the comment section. Thanks for reading.

About the Author: Jamin Wong is a seasoned marine underwriter with extensive experience in marine insurance and risk management. Passionate about improving industry practices, Jamin Wong shares insights and strategies to help transporters and insurers navigate the complexities of maritime insurance.

Contact: For more information or to discuss your marine insurance needs, contact [email protected]

1 Smart way to claim impact damage to your home by vehicle

Published August 28, 2024August 28, 2024 by jamin

I drove along the hot, sultry tar road on a quiet afternoon. It was surrounded by a ring of palm oil trees, I slowly made my way into the Felda Sg Sayong settlement, trailing behind a palm oil tanker. To my dismay, the winding road took a sudden turn, and the tanker driver lost control of the steering. The vehicle veered off course and rammed into a settlement house on the lower ground.

1 Smart way to claim impact damage to your home by vehicle

It was a terrifying experience. Fortunately, no one was injured when the palm oil tanker crashed into the semi-brick wooden house. Accidents like these, especially in areas with varying road elevations, can have serious consequences.

The scenario —where a truck lost control, rammed through a divider, and crashed into a house—is an unfortunate but not uncommon occurrence in regions where heavy vehicles frequently travel near residential areas. In this case, it’s lucky that the elder couple who lived in the house were unharmed, though the destruction of part of their home must have been quite distressing.

Aftermath of the Palm Oil Tanker Crash

The aftermath of the palm oil tanker crash into the semi-brick wooden house was chaotic but, fortunately, without casualties. The incident occurred when the tanker, travelling on the upper road near Felda Sungai Sayong, lost control, crashed through a road divider, and rammed directly into a house situated on lower ground.

Damage to the House: The front wall of the house was severely damaged, collapsing under the force of the impact. The structural integrity of the house was compromised, with debris scattered across the front yard. The semi-brick construction of the house offered some resistance, but the force of the large tanker was too great, leading to substantial destruction.

The Elderly Couple’s Reaction: An elderly couple was startled by the loud crash. They rushed to the front of the house, where they discovered the extensive damage. Though shaken, they were unharmed, which was a small miracle given the extent of the damage to their home. The incident left them in shock, but they were relieved that they had not been injured.

Community Response: Neighbors quickly gathered around the scene, offering assistance and support to the couple. Emergency services were called to assess the situation, and the tanker driver was checked for injuries. Fortunately, there were no serious injuries reported.

Repair and Recovery: In the days following the crash, the couple faced the daunting task of repairing their home. With help from the community and possibly some insurance, they began the process of rebuilding. The accident served as a reminder to the local authorities about the dangers posed by heavy vehicles in residential areas, leading to discussions on improving road safety measures to prevent similar incidents in the future.

This event, while harrowing, fortunately, resulted in no loss of life, and the community’s swift response highlighted the resilience and solidarity of the residents in the face of such unexpected disasters.

These incidents highlight the importance of road safety measures, particularly in areas where homes are located close to busy roads or where roads are at different elevations. They also emphasize the need for proper maintenance and caution when transporting heavy goods like palm oil, which is common in areas with palm oil plantations.

After the palm oil tanker crashed into the house, the priority was to check on the condition of the driver. Neighbours and bystanders rushed to the scene, finding the driver visibly shaken but conscious. He was carefully helped out of the cab of the tanker, showing signs of shock but, thankfully,

without any serious injuries.

One of the bystanders immediately called the police and emergency services to report the accident. While waiting for them to arrive, some of the onlookers provided first aid to the driver, ensuring he remained calm and seated away from the vehicle, as there was concern about potential fuel or oil leaks.

The police arrived swiftly and began securing the area. They took statements from the driver, the elderly couple, and witnesses who had seen the accident occur. The driver was later taken to the hospital for a thorough check-up, while the police initiated an investigation to determine the cause of the accident, including whether mechanical failure, road conditions, or driver error played a role.

The police also coordinated with emergency response teams to ensure that the scene was safe and that no hazardous materials from the tanker posed further risks to the community. The community was advised to keep a safe distance while the authorities worked to clear the wreckage and investigate the incident.

I provided practical advice to the elderly couple by suggesting they claim the damage under their house fire insurance’s impact damage clause or extension, which would likely be a more efficient process than dealing with the truck’s insurance company. This approach would allow them to avoid the lengthy and complex process of claiming through the truck’s insurer, which could involve extensive back-and-forth and delays.

Involving a lawyer who takes a 25% cut from the claim’s quantum is a smart backup plan if the insurance claim is complicated or disputed. The lawyer’s expertise could streamline the process, ensuring that the couple receives the compensation they deserve while reducing the stress and time involved in handling the claim themselves.

This strategy focuses on leveraging existing coverage and expert help, making the resolution process as smooth and swift as possible for the couple.

Filing an impact damage claim under a house fire insurance policy involves several steps to ensure that the claim is processed efficiently and fairly. Here’s a general outline of the process:

1. Review Your Insurance Policy

Understand the Coverage: Check your policy to confirm that it includes coverage for impact damage. This might be explicitly stated or included as part of a broader clause.
Check Deductibles and Limits: Be aware of any deductibles (the amount you must pay out-of-pocket) and the coverage limits for impact damage.

2. Document the Damage

Photographs and Videos: Take clear, detailed photographs and videos of all damage caused by the impact. This should include wide shots of the overall damage and close-ups of specific areas.
Keep Records: Save any debris or damaged materials that may be relevant to the claim. Also, keep records of any temporary repairs you made to prevent further damage.

3. Notify Your Insurance Company

Immediate Reporting: Contact your insurance company as soon as possible to report the incident. Provide them with all necessary details, including the date, time, and description of the event.
Submit a Claim: Officially file your claim through the insurance company’s specified process, which may involve filling out forms and providing your documentation.

4. Work with an Adjuster

Inspection: The insurance company will likely send an adjuster to inspect the damage. Ensure you are present during this inspection to point out all the areas of damage.
Provide Documentation: Share your photographs, videos, and any other evidence with the adjuster. Be thorough in your explanation of the impact and the resulting damage.

5. Assessment and Settlement

Claim Assessment: The adjuster will assess the damage and report back to the insurance company, which will then determine the payout based on the policy terms.
Receive Payment: Once the claim is approved, you’ll receive payment for the damage. This may come in one lump sum or instalments, depending on the insurer.

6. Legal Assistance (if necessary)

Involve a Lawyer: If the claim is disputed or if the payout is lower than expected, involving a lawyer can help negotiate a fair settlement. As you advised, some lawyers may take a percentage of the settlement as their fee, typically around 25%.

7. Repair the Damage

Hire Contractors: Use the payout to hire contractors to repair the damage. Make sure to keep all receipts and records of the work done, as the insurance company may require proof of repairs.

By following these steps, the elderly couple can streamline the process of claiming under the impact damage clause and ensure they are fairly compensated for the damage to their home.

Filing an impact damage claim directly with your fire insurance provider has several advantages over pursuing a liability claim against a truck’s insurance, especially when a lawyer is involved. Here are the key benefits:

1. Faster Resolution

Streamlined Process: Filing a claim under your fire insurance policy for impact damage is usually a straightforward process. The insurance company already has a relationship with you, making it easier to initiate and process the claim.
Avoid Legal Delays: When you pursue a liability claim against the truck’s insurer, the process can be slow, particularly if the case involves legal disputes or requires going to court. This can result in significant delays before you receive any compensation.

2. Less Time-Consuming

Simplified Communication: Dealing with your insurer means fewer parties are involved. You only need to communicate with your insurance company and possibly an adjuster, rather than multiple parties, including the truck’s insurance company, lawyers, and potentially the court.
No Court Involvement: Impact damage claims typically don’t require you to go to court, which saves you time and the stress of legal proceedings.

3. Lower Costs

No Legal Fees: By claiming under your policy, you avoid the potentially exorbitant legal fees associated with hiring a lawyer to pursue a liability claim. Lawyers often charge a percentage of the settlement, and legal battles can be costly.
Fixed Deductible: The only out-of-pocket expense you typically face is your policy’s deductible, which is usually predictable and manageable compared to the uncertain and potentially high costs of legal fees.

4. Greater Control and Certainty

Predictable Process: The process of claiming impact damage under your fire insurance is generally well-defined and predictable. You know the steps involved and can manage the process directly with your insurer.
Quicker Repair of Damages: Because the claim process is faster, you can begin repairs on your property sooner, minimizing disruption to your life and reducing the potential for further damage.

5. Avoiding Disputes

Fewer Disputes: When dealing with your own insurance company, disputes over liability and the extent of damages are less likely. In contrast, the truck’s insurer might contest the claim, leading to prolonged negotiations or litigation.
Reduced Stress: Handling a claim directly with your insurer, especially when you have clear coverage, can be much less stressful than engaging in a legal battle over liability.

In summary, claiming impact damage directly through your fire insurance is typically faster, less expensive, and less stressful than pursuing a liability claim against the truck’s insurer. It allows you to avoid legal complexities and focus on repairing the damage and returning to normal as quickly as possible.

Differential Between Tour Bus Liability and Travel Insurance

Published August 18, 2024August 18, 2024 by jamin

Differential Between Tour Bus Liability and Travel Insurance

What is Tour Bus Liability?

Coverage scope: specifically covers incidents that occur on the tour bus.

Primary Focus: Protects the tour company against claims resulting from accidents or injuries on the bus.

Typical Inclusions:

Passenger injuries due to bus accidents.

Property damage caused by the bus.

Legal fees and settlements related to accidents involving the bus.

Beneficiaries: Primarily benefits the tour company, with indirect benefits to passengers in the event of an accident.

Differential Between Tour Bus Liability and Travel Insurance

What is travel insurance?

Beneficiaries: This directly benefits the traveller, ensuring a wider safety net for various travel contingencies. Travel insurance coverage typically includes several key areas designed to protect you from financial loss and provide assistance while you’re travelling. Here’s a breakdown of what most travel insurance policies cover:

Trip Cancellation or Interruption: Reimbursement for non-refundable trip costs if you have to cancel or cut short your trip due to covered reasons like illness, injury, death of a family member, natural disasters, or other unforeseen events.
Medical Expenses: Coverage for emergency medical treatment and hospitalization while travelling is especially important if travelling internationally, where your regular health insurance may not apply.
Emergency Medical Evacuation: Covers the cost of transportation to the nearest suitable medical facility or back home in case of a serious illness or injury.
Lost, Stolen, or Damaged Baggage: Reimbursement for your personal belongings if your luggage is lost, stolen, or damaged during your trip.
Trip Delay: Compensation for additional expenses like meals and accommodation if your trip is delayed for a covered reason.
Travel Accident Insurance: Provides a payout in the event of accidental death or serious injury while travelling.
Rental Car Coverage: Protection in case of damage to a rental car, is often an optional add-on.
Missed Connection: Coverage for additional expenses if you miss a connecting flight or other transportation due to a covered reason.
24/7 Assistance Services: Access to a hotline for help with medical emergencies, travel arrangements, lost passports, and other issues while travelling.

Travel Insurance Exclusions

The travel insurance has excluded specific conditions or events that are not covered. Understanding these exclusions is crucial to ensuring that you’re adequately protected during your trip. Common travel insurance exclusions include:

Pre-existing Medical Conditions: Most policies do not cover medical expenses related to conditions that existed before you purchased the insurance unless a waiver or special coverage is obtained.
High-Risk Activities: Activities considered dangerous, such as bungee jumping, scuba diving, or other extreme sports, may be excluded from standard coverage unless you add a specific rider.
Acts of War or Terrorism: Many policies exclude coverage for incidents related to war, terrorism, or civil unrest, especially if travelling to regions known for such risks.
Travel to High-Risk Destinations: If you travel to areas under a government travel advisory or countries considered unsafe, your policy may not cover incidents that occur there.
Pandemics and Epidemics: Coverage for pandemics like COVID-19 may be limited or entirely excluded, depending on when the policy was purchased and the specific terms.
Illegal Activities or Negligence: Any losses or injuries incurred while participating in illegal activities or due to reckless behaviour are typically not covered.
Non-Refundable Costs: If you cancel your trip for a reason not covered by the policy (e.g., a change of mind), you won’t be reimbursed for non-refundable costs.

Carefully review your travel insurance policy to understand what is and isn’t covered, and consider purchasing additional coverage if necessary to suit your travel plans.

Consequences of No Travel Insurance

The incident occurred at a picturesque coastal location known for its serene sunsets, making the incident all the more alarming. The elderly woman, aged 81, was enjoying the evening strolling the beach with her tour buddies and local residence when the wooden jetty platform, which had become unstable due to wear and tear, gave way. This instability caused the elderly woman to lose her balance and fall, resulting in her injuries. She sustained injuries as a result of the fall. The incident happened in Kukup, Pontain, Johor, Malaysia on July 27, 2024, at 6.30 p.m.

This incident serves as a reminder of the importance of proactive safety measures, particularly in public areas that attract a wide range of visitors. Regular inspections and timely repairs of such structures are essential to prevent accidents and ensure that everyone, regardless of age, can enjoy public spaces safely.

The Importance of Travel Insurance

Following the incident, on-site personnel and concerned bystanders quickly responded to the elderly woman’s needs. They administered first aid to stabilize her condition and provide immediate comfort. Recognizing the potential severity of her injuries, they promptly arranged for her to be transported to the nearest private clinic for further medical evaluation and treatment. Their quick actions ensured that she received timely care, helping to mitigate the impact of her injuries and demonstrating the importance of community awareness and preparedness in such situations.

Hospitalization: The injured woman was admitted to Kpj Hospital Kluang for further evaluation and treatment after finishing her medication and consulting another doctor at the Kluang government hospital, with a few slides of x-rays taken to ensure that there was no fracture, but two broken blood tissues. After 4 days, she was discharged when her blood clots subsided. Despite being hospitalized for four days, she had to pay her medical bills before being discharged from the private hospital. Throughout her stay, the heartless tour guide neither called nor visited her.

Her injuries sustained include multiple bruises and a blood clot on the right thigh. The bruises are consistent with blunt force trauma, varying in size and colouration, indicating both recent and older impacts. The blood clot on the right thigh suggests localized internal bleeding, likely caused by a direct blow or repeated pressure on the area. The severity of these injuries, particularly the clotting, warrants medical attention to prevent further complications, such as restricted movement or potential infection.

Preventive Measures:

Regular Inspections: Establishing a routine for frequent inspections of the jetty is essential to identify and address any structural weaknesses before they pose a danger to the public. These inspections should be thorough and conducted by qualified personnel to ensure the safety of all users.
Maintenance Schedule: Implementing a strict maintenance schedule is crucial to keeping the jetty in optimal condition. Regular maintenance ensures that all components, such as planks, railings, and supports, are secure and functional, preventing accidents caused by wear and tear.
Safety Signage: Installing clear and visible signage around the jetty can effectively warn users of potential hazards, such as slippery surfaces or structural concerns. These signs should be strategically placed to advise caution and guide visitors on how to safely navigate the area.
Public Awareness: Raising public awareness about the importance of reporting any observed damage or instability is a vital preventive measure. Educating the community encourages proactive involvement, ensuring that any issues are promptly reported to the appropriate authorities, allowing for timely repairs and the prevention of accidents.

How to Choose a Travel Insurance Policy:

Assess Your Needs: Consider what coverage is essential for your trip, like medical coverage if you’re going abroad or trip cancellation if your plans are uncertain.
Compare policies: Look at different providers to see which offers the best coverage for your needs at a reasonable price.
Check Exclusions: You need to understand what the exclusion clauses in the policy are and what is and isn’t covered by the policy. Common exclusions include pre-existing conditions, certain high-risk activities, and specific travel destinations.
Read the Fine Print: Understand the terms and conditions, including any deductibles, claim procedures, and coverage limits.

Conclusion:

It’s important to be cautious when relying on tourist guides who may promise you the moon. To protect yourself from unforeseen circumstances, always secure a hard copy of your travel insurance before embarking on any excursion. This ensures you’re covered for potential emergencies, giving you peace of mind as you explore new destinations.

This incident highlights the critical need for diligent maintenance of public amenities to prevent accidents and ensure the safety of all users. The authorities should take immediate steps to repair the loose jetty platform and enhance safety protocols to avoid future occurrences.

In summary, travelling without insurance exposes you to a range of financial risks and potential hardships. It can turn a simple mishap into a costly and stressful ordeal, making travel insurance a critical component of any travel plan.