Typhoon survival tips before and aftermath

Typhoon survival tips before and aftermath

Florida braced the impact of Hurricane Irma, destroyed of million homes, massive economic losses. The financial cost of Hurricane Irma could rise as high as $300bn the storm lashes Florida, damaging homes, businesses and critical crops, including orange groves.

The recent masses 6.3 million evacuations of Florida before the imminence of category 5 of Hurricane Irma ignored by the Trump admiration about global warming. The speed of 150 Km per hour swept away houses and vehicles along its path, uproot trees, resulting in a million lost their homes, no electricity and no clean water supply.

The storm has already unsettled the monetary markets, sending insurance shares falling. An analyst from a stockbroker company positioned the general economic value at $300bn, with insurance firms probably at the hook for among $100bn and $150bn while the smooth-up operation gets underway.

The bulk of Irma’s claims are probably for wind damage. With a predicted 300 000 shares for wind damage and 150 000 claims for flood damage, insurance claims for Irma are expected to obtain extra than $40 billion. However, insurers handling Irma can also attempt to wriggle out of protecting houses with each wind and water damage through bizarre “anti-concurrent-causation” clauses – that is, clauses that put off insurance for wind damage if an “uninsured flood” takes place on the equal.

Those egregious clauses are impossible for consumers to understand, as the general public cannot consider insurers selling them a policy with wind coverage that could disappear playing with technical insurance jargon words.

What to do with a Typhoon imminent?

Typhoon survival tips before and aftermath

Before the Typhoon:

  • Prepare an adequate storage supply of meals and drinking water.
  • It is vital to store at least two weeks of canned food and mineral water.
  • Preserve flashlights, candles and battery-powered radios within easy reach.
  • Examine your own home and restore its unstable parts
  • Harvest mature plants or crops.
  • Keep domesticated animals on safe ground.
  • For the fisherman, anchor boats in a sheltered area.
  • Have you needed to evacuate, carry clothing, blankets, whistles, first-aid package, candles/flashlight, battery-powered radio, meals, and some cash?

At some point of the storm:

  • Stay indoors.
  • Prepare constantly having the latest weather forecast result from radio or social media.
  • If the drinking water is not suitable for human consumption, advise boiling the water at least 20 minutes before drinking.
  • The water container covers with a lid.
  • Please saves some lighted candles or fuel lamps.
  • Do not go through floodwaters to avoid being electrocuted and contracting illnesses.
  • If there is a need to move to an evacuation centre, follow those instructions.
  • Evacuate calmly. Close the home windows and turn off the main electricity switch.
  • Put essential home equipment and belongings on a high floor.
    Keep away from the fast swift following water.
  • Make a communication plan with the family.
  • Ensure a proper meeting place if the smartphone is not working.
  • Note down the important emergency number.

After the typhoon

  • If a typhoon destroys your private home, it is advisable to stay elsewhere.
  • Watch out for snakes that can have entered your house.
    Return home only after authorities have given the green light announcing the if is safe for the dwelling.
  • Be careful with the wires immersed in water that can cause electrocution.
  • Make a report of broken electrical cables and fallen posts to the concerned authority.
  • Do not allow the water stagnant in tires, cans or pots to avoid breeding grounds for mosquitoes.
  • Remember, preparedness is the key. So be smart and stay alert.

Can I insure my house against typhoons and floods?

Yes, 1st you need to have a fire or home insurance, not only your house but also the contents, including your personal effect. You need to fork out the extra premium with these 2 extension clauses.

What does Typhoon Insurance cover?

Typhoon insurance covers only wind damage, but not the loss or damage caused by rain, regardless of whether driven by wind. The damage covered only the actual damage to the roof or walls by the direct force. The insurer is liable for loss or damage to the building or insured property whereby the rain is entering the building through openings in the roof or walls caused by the typhoon. There is No cover for the water damage due to the door being open, windows, transoms, or roof lights being left open, despite a typhoon’s existence or presence.

Flood Insurance

The flood insurance does not cover loss or damage caused directly or indirectly by landslide, subsidence, explosion, incidental to flood or not, and theft occurring during or after a flood. In addition, the following do not constitute a flood: overflowing, bursting or leakage of water tanks, pipes, gutters, downpipes, public water supply mains, backing up of sewers or drains.

Motorcar damage insurance

The standard 1st party motor Car policy does not cover “any accident, loss, damage, or liability directly or indirectly, proximately or remotely occasioned by caused by any traceable of a flood, typhoon, and hurricane.” Some insurers are willing to cover these perils at an additional premium. Others reject it even though the insured is willing to pay the extra premium. It is mainly due to reinsurance or co-insurance treaty.

Personal accident policy usually does not cover a tidal wave.

Some insurers cover you against typhoons only if your house is made of concrete under a galvanized iron roof or against flood only if your home is built on high ground. Again, it is best to let your insurance agent or broker negotiate with their principal.

Typhoon survival tips before and aftermath 1

How to Claim Hurriance Damage to Your Property

How to claim Hurriance damage to your property, if you have sustained a heavy loss or damage.

Damage from Hurricane Irma

If a storm damages your property, It is the wise choice you to report your claim directly to your insurer. They will have a claims agents accessible 24 hours a day. Note down the contact number before the storm. You might not connect to either internet or mobile phone access after the storm.

  • The Insurer will assign an adjuster to get in touch with you at the number you gave on your claim report, so make sure to give an insurer to contact you.
  • The insurer typically sends the adjuster priority to extremely damaged properties.
  • If your home or business is uninhabitable or you move elsewhere briefly, make certain to tell the insurer where you can reachable.

In the event that you sustain a minor damaged, please try to remain tolerant. When the adjuster contacted you, please take note the vital information like their hame, office contact number and the claim report number.  Likewise, ask the adjuster what the next course of action you should take it and when he/she will be back in contact with you. Ask the agent any inquiries you may have about your claim. How to Claim Hurriance Damage to Your Property 2

Make Temporary Repairs. Take photographs or video recordings.

  • If you damaged home or business, please make immediate repairs to mitigate the loss and to protect your safety.
  • Keep all your receipts, the insurer will request them at a later date.
  • Keep damaged items for the adjuster to examine later. Try not to dispose of damaged goods.
  • Temporarily repairs like tarping your rooftop, remove a tree from your home, and repair broken windows.
  • Take photographs as well as recordings of the damaged,  including recording your damaged personal items. This will expedite your claim.


Try not to make Permanent Repairs

Try not to make permanent repairs to your home until your adjuster has examined your damaged. If you have doubt, please call the insurer.

Begin setting up a Personal Property Inventory

  • Try not to discard the damaged items until the adjuster has seen them, especially premium good. The damaged personal belongings, your adjuster will ask you for a personal property inventory. This is a listing of the damaged items and their value(s)
  • We recommend you achieve this on a room-by-room basis and list it down with detail description. List the “Replacement Cost” of everything and its genuine cash value. Replacement cost is the thing that it would cost today to substitute an item with the resemblance. Genuine Cash Value the item is truly worth subsequent to deducting for wear and tear.
  • Enclose any documentation you can (receipts, photographs,
    canceled the checkbook, financial records, guarantee booklets, and so forth.)

Your adjuster may have particular forms they will give you.

Be Cautious of repair scam

  • Resist the temptation to sign up with the repair contractor that appears at your door. You should not sign repair contract or assignment of benefits. This is giving away your right to the contractor and may affect the claim later.This could cause lost control the cash paid by the insurer. Respectable repair contractor won’t expect you to sign an agreement that included the assign of benefits.
  • The assignments of Benefits scams are the main source of rising insurance premium, and fraud sees hurricane aftermath a golden chance to prey on desperate homeowners.We suggest that you call your insurer or adjuster to report the damaged claim and decide the next ideal approach.

Emergency Relief Centre

A storm severely damaged your home, please liaise the local authority for next nearest emergency relief center.

Sign up for online policy access

Nowadays, it is an e information, all insurers have the online policy access, it is vital to sign up this offering. Tracking your claim status reduced your stress after suffering a tragedy.

Talk about claim with the adjuster

The insurer expects a huge amount of claims. Please patient, it is normal for an insurer dealing priority on the extremely damaged cases.

Frequent Asked Questions

  1. How does a Hurricane deductible function?

Irma is presently a tropical storm, and a storm deductible will apply to any damage to your home or business asset. The Hurricane deductible only applies if a hurricane watch or warning issues in any part of an affected area and ends 72 hours from the time the warning or watch terminates.

With a hurricane deductible, the homeowner is liable for this deductible. The covered damage that exceeds your deductible will pay by the insurer. Generally, hurricane deductibles range from 2% to 10% of the insured value of the home.  So, if your home insures for $400,000 with a 2% hurricane deductible, your hurricane deductible is $8,000.

This is an annual deductible, so if you have 2 different hurricane losses in one calendar year and you already exceeded your deductible during the 1st hurricane, you will not have to pay a deductible during the rest of the policy period.

2. Will my car insurance cover damage to my car?

If you purchased a comprehensive policy with flood extension, both hurricane damage and flooding cover your car your car insurance company. A comprehensive deductible will apply.

3. Will my homeowner’s policy cover flood damage?

A homeowners policy covers the wind and hurricane damage if it inclusive in the policy. If the blown roof and then the rain pours into the building that would be covered by the wind portion of your policy.

Rising groundwater from a storm surge or hurricane considers a flood. Flood damage is not covered by standard homeowners or business insurance policy unless you have the flood extension clause in your policy.a hurricane in most the commonwealth nations, unlike the USA having 2 separate coverages.

4. Will my homeowner’s policy cover trees down?

Most homeowners and business packages provide for removal of trees or branches that have fallen on your structures. The insurer doesn’t pay for removal of trees or debris that blew into your or fell in your yard without damaging anything.

5. My house is uninhabitable. What do I do?

To begin with, let us say we know this is hard and trying time while you are homeless. Please call the insurer for the arrangement for the temporary shelter in a decent home befits for your current damage lifestyle home.

Loss of Use: This is to reimburse you for extra expenses and temporary housing incur. Generally, the temporary housing amount based on the fair rental value of your home or apartment during your displacement period. Additional expenses include expenses that you would not normally incur, such as additional petrol mileage, electricity consumption, generators, electrical, phone or food expenses over and above your usual costs. It is not the obligation for the insurer to pay you the limit upfront. You must incur the extra expense and provide proof of loss in form of receipts or invoices for reimbursement from them.

Need an attorney to claim for hurricane damage

Unfortunately, insurer and their adjusters are not in the business of paying out claims. Generally, the insurer’s trained adjuster attempts to negotiate the minimum of claim or deny it outright based the exclusion in the policy. You might not aware of this, but for the adjuster, this process starts when you phone to file a claim. Understandably, you might suffer from stress or tension due to damages or losses caused by typhoon Irma, however, you ought to remember the fact that every question you answer could be an element in determining if a claim is successful. The insurer doesn’t care in case you stress or confused when you informed, they’ll blissfully use it against you later.

While you honestly in reporting a loss to your insurance company, you have the right under the Federal Constitutions. The adjuster is a trained expert; you aren’t. A house owner without the full understanding of the policy coverage will at the mercy of the insurer when claiming a loss. It is sensible to consult your lawyer to prevent a claim being denied or short payment. Once the damage was done, it is more difficult for a lawyer which you hired after your claim denied to effectively recovering for you. Keep in mind; it is compulsory for all insurers to provide you with an updated copy of your insurance policy inclusive of all amendments and endorsements.

As said above, do not discuss your loss till you’re absolutely prepared to do so. This means having a complete copy of your policy in front of you so that you are aware the coverage. Understand it before you speak your claim with your insurer.

If you do decide to contact your insurer, be sure you take the following steps before contacting your insurance company. Remember there is no rush and normally, you have few weeks to file a claim after a loss which includes Hurricane Irma.

How to Claim Hurriance Damage to Your Property


  • Read and understand your entire homeowner’s insurance policy together with any endorsements and amendments.

Do not record over the smartphone. Do not comply with offer a recorded or sworn declaration over the phone. Ask to offer one in person or in writing. Don’t forget to consult with an attorney first. PUBLIC ADJUSTERS aren’t legal professionals.

      • Communicate in writing if you wish. Try to make certain most of your conversation is in writing. When you have a telephone conversation and follow it up with an email or a fax.
      • List down and everything lost or damaged. Create a list of all damaged belongings such as any personal items. Please ensure to consist of the brand name, model, and accurate description of all claimed items. Include all items irrespective of how small.
      • Document all damages. Don’t only photograph the damage, but additionally, make sure every picture is both time-stamped or logged with the date and time when it was taken.
      • Witnesses are crucial. List down everyone who witnessed the losses and may testify to how the losses came about. This includes the names of any contractors or different employees who do the repairs.
      • Keep a logbook of contact with your insurance company. Take down the first and last name of everyone you speak to from your insurance company, the date you spoke to them, and what you spoke to them about.
      • Accumulate your past information. If possible take all records any previous maintenance or inspections of your private home. This will make it greater tough for the insurer to assert the preexisting or unrelated damage.


Your Thoughts

As usual, I would love to hear any thoughts or questions that you have in the comments section below.

Email me at myonlineinsurances@gmail.com.

How to Claim Hurriance Damage to Your Property 3

Determine the Sum Insured for Loss of Profit Insurance

How to Determine the Sum Insured for Loss of Profit Insurance?

Loss of Profit insurance is a complex field sending a spine- chilling signal to even veteran insurance broker, but when mastering the subject, another income from cross-selling. Providing an insight into this cover explains, in plain layman English, to derive the sum insured.

The accountant terms on gross profit are entirely different from the insurance point of view as the definition relates to Income minus Expenses during shut down period.

Two ways on calculates the Loss of profit insurance either on an Additions or on a Difference basis.



The Additions basis insure by adding the Net Profit and all the Standing Charges.
* The total Net Profit (before deduction of Income Tax) generated annually for running a year of business without interruption.
* Standing Charges are those expenses incur regardless whether the business is in operation, e.g. rent, salaries, hire purchases, lease agreement payments, etc.


The Difference basis deducts those working expenses not required to cover from the Turnover.

* Turnover is the total sales amount received for the business activity undertaken.

* Uninsured Working Expenses are the total of all those eliminated expenses not required any business termination, e.g. purchases, commissions, packaging, outsourcing, contract workers, part-time worker, transport.

Insurance Gross Profit

We establish the insurance Gross Profit figure based on

Net Profit before tax known called it Net Profit before Tax
Standing Charge termed as fixed costs.

Uninsured Working Expenses termed as variable expenses.
Turnover called “income” or “sales” or “revenue”.

Notice that the Turnover of the business comprises Net Profit before Tax + Fixed and Variable costs or expenses.

Rate of Gross Profit

The Loss of profit policy wording is the only wording that actually guides insured on how to calculate a claim and therefore assists in establishing a sum insured. The claim settlement requires that the Rate of Gross Profit applies to the shortfall in Turnover expected by looking backward and adding any future enhanced trends. Briefly to say that businesses rarely change on a successful duplicated operating system to generate further turnover and any supplement to keep up with the inflation upward trends.

However, copying last year operating system means that all the ratios against Turnover will probably remain stable – so the more sales volume means the more increase the operation cost. So a 15% increase in turnover correspondingly 15% increase in the working cost. (This is a minimum percentage to keep ahead of inflation) If not, then the business has not copied last year’s system 100% and the broker needs to prove the reason.

The Rate of Gross Profit is the percentage ratio of the insurance Gross Profit to the Turnover. In other words:

Rate of Gross Profit =Turnover x 100

The broker assists the insured by taking the last financial report (Balance Sheet and profit and loss account and stock) figures for fixed costs, variable costs and NPBT and calculates the Gross Profit, as per the insurance definition. When both agreed on the method to establish the rate of gross profit and will use for future reference provided the rate is correct. Since all business increases their Turnover every year by more than the inflation rate, the client must agree to their expected annual Turnover increase percentage.

So the insured now has a Rate of Gross Profit and an annual expected Turnover increase rate.

Next, the insured needs to calculate their expected Turnover for the year after the expiry of the next period of insurance. This means that the insured looking two years beyond for projection. This turnover applies the Rate of Gross Profit and that is the expected Gross Profit.

Adding the VAT to this expected rate of gross profit and round to the nearest $100.00, inflates twice the figures, but the premium only charged on 75% of this Gross Profit sum insured.

Example figures

Fixed Charges= $5 million
Variable Expenses= $4 million
NPBT= $500 000.00

Turnover 31/12/2016= $10 million
Insurance Gross Profit =$6 million
Rate of Gross Profit =60%
Turnover increased =15%

Period of Insurance 01/01/2017 to 31/12/2017
Expected Turnover =$11.5 million

Year after expiry of policy 01/01/2018 to 31/12/2018
Expected Turnover= $13 225 000.00
Thus Insurance Gross Profit= $13 225 000.00 x 60% (Rate of Gross Profit)
Gross Profit Sum Insured= $7 935 000.00
Plus 6 % Vat ($7 935 000.00 + 476 100.00) = $8 411 100.00
The sum insured calculates on 75% of $8 411 100.00 =$6 308 325.00

It is our broker’s duty to aid the insured on deriving a reasonable sum insured. The insured’s understanding on the calculation is crucial to avoid future dispute when a claim incurs. However, to safely guide the broker from the insured sued the former for professional indemnity. Advisable requesting the insured signs a document stating that they agree with the method used and that the figure is acceptable.

End of Policy Year Adjustment

If the client achieves marginal  15% increase in their Turnover, during the insured period, adjustments require, we arrive at the following figures:

Turnover= $11 500 000.00

Gross Profit =$6 900 000.00 (60% of Turnover)

Plus 6 % VAT ($6 900 000 x 6%) =$7 314 000.00

Initial sum insured of  $6 308 325.00 but their real Gross Profit was $7 314 000.00, the sum insured difference is $1 005 675.00, a lesser premium collected. The insured paid a 75% as a deposit premium, providing a correct calculation; the insured had 100% coverage with a 75% of the paid premium.

If the premium rate was 0.10% the client paid a deposit premium of $6308.33 plus an adjustment premium of $ 1 005.68, which totals $7 314.01, instead of a full premium of $8 411.10.

A Mistake did by broker Howard

The broker utmost responsibility duty to decide the insured NPBT figure, Howard does not include NPBT in their coverage. Consequently, wrongly calculate the sum insured on Consequential Loss Policy, arriving at a Rate of Gross Profit of 56.24% which converts into a sum insured of $5 400 000 +6% VAT = $5 724 000.00. Not to forget the deposit premium and end of policy year adjustment for this coverage.

Bearing in mind

Loss of profit insurance works either all the fixed cost items for the Additions basis only or all the variable charges for the Difference basis only.

Not using the above 2 methods, this leads to either the law of average applies or the insurer not agreeing with the client’s calculation of their claim. Also, the  Loss adjusters find in a daunting task in finalizing a claim if excluded the charges.


Your Thoughts

As usual, I would love to hear any thoughts or questions that you have in the comments section below.


Email me at myonlineinsurances@gmail.com.


Determine the Sum Insured for Loss of Profit Insurance 4

Determine the Sum Insured for Loss of Profit Insurance 5

Loss of Profit Insurance What and why are the coverage?

Loss of Profit Insurance What and why are the coverage?

The Loss of Profits policy covers the monetary loss occurring from a break in a business activity arising due to the physical loss of property by an event covered by insurance.

What is the coverage?

In general term, the Policy broadly covers loss of Gross Profit for business interruption, consequent upon Material Damage to property due to Fire or any other insured peril under the Standard Fire and Special Perils Policy.
It also covers standing charges which continue incurring during the interruption thereby increasing the working cost necessarily and reasonably incurred to support the business to its formal activity. Consequently, therefore, that loss under net profit and standing charges can avoid or mitigate.

It also covers standing charges which continue incurring during the interruption thereby increasing the working cost necessarily and reasonably incurred to support the business to its formal activity. Consequently, therefore, that loss under net profit and standing charges can avoid or mitigate.

An eye-opening for the bewilderment insured during the closed-door discussion between me, and insured’s finance controller.

Why need to cover the loss of profit insurance?

“Boss, by having fire insurance is not a perfect shield for your business empire, a complimentary policy utmost important for your factory with a workforce of closed a thousand. Let me introduce the Loss of Profit Insurance” I announced.

“What is that? Such policy exists?” they questioned me with their disbelief eye.

” Your factory premises and machinery all under financed with a local bank, a short-circuit would curtail the production flow, subsequently a reduction turnover, How shall you keep the monthly installment repayment to the bank in addition to ongoing costs like staff salary utility bills, lease payments or advertising. The board of Director and the top management lives on fresh air and the sunshine with dwindling in bank cash flow?

The owner and the finance controller trying to fob off me, “We really don’t need this kind of policy.”

Increase working cost

“Well, having some oversea buyers with the confirmed letter of credit at sight, can you offend your buyer by postponed shipment date? If so, how many times, is there no late penalty and your goodwill and credit-worthiness could restore when it tarnished. This policy would solve this temporary relocation cost and the rental cost to compile with the shipment date. Pouring salt on the wound, some supplier would inflate your buying cost price besides the logistics cost. Your creditor adds fuel to fire, giving a shorter credit payment term.  The maxim goes, misfortune always knock twice”

“The bank would close their umbrella during this trying time, and seek for a reduction of capital-outlay to your factory when the building blaze to the ground, coupling with these 2 events, Can you cope with  it?”

The following clauses are the extension of the Standard Policy for Loss of Profit Insurance.

Free of Charge Clauses:-

  • Denial of Access/adjoining Premises risk.
  • Alternative Indices.
  • Waiver of Material damage proviso.
  • Payment of account – cash call*.
  • Premium Payment.
Payment Clauses.
  1. Supplier’s and Customer’s premises.
  2. Upward adjustment Clauses 25%.
  3. Failure of supply from public utilities at least 48 hours.
  4. Accumulation of Stock.
  5. Department Clauses.
  6. New Business for 1st year only.
  7. Salvage sales.

*Payment of account: The beauty of this policy when an insured peril occurs, the insured can evoke by asking insurer for advanced payment at least 50% of the sum insured within 14 days’ notice without incurring any interest charges prior to finalize a report provided that it is a genuine claim.

How to derive adequate sum insured for Loss of profit Insurance will roll out soon?

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Loss of Profit Insurance What and why are the coverage? 9

Loss of Profit insurance why agent shy away

Loss of Profit insurance why agent shy away?

The Loss of profit insurance sounds an alien phrase to the majority of the agent, nevertheless, it brings a profitable for an underwriting profit for the year-end. Despite the fact it is a complementary policy to the fire insurance for the existing client, the agent silence on this as if it is a taboo subject to even those veterans. Stumbling across an agent serving an insured for the past 2 decades, never raise the issue on this loss of profit insurance. Consequently, he would out of business for the following year, when a knowledgeable, armed competitor edged over the business.

Industrious to learn this subject, without the Accounting, grasping to analyze and digest this subject is a tremendous task for me. Enrolling in the class whereby I was the eldest peer among the student half of my age. Doubling hard, sacrificing my family time, enrolling for another 3 subjects for Australian Institute of Insurance via self-study. Passed 4 with  3 credit another with a distinction in addition working in a public listed insurance company and managing my logistic firm. No Labor, No Gain is my philosophy. Firmly believe the saying learning begins at the womb, ending at the tomb.

What is Loss of Profit Insurance?

Well, in basic terms, loss of profit insurance ensures your business having a decent income when impossible operation at full capacity with declining revenue as you normally would and the subsequent loss of profits 

So, essentially, it covers the loss of profit your business will suffer consequences damage from an insured peril. Insured perils typically include fire, floods, hurricanes, storms, earthquakes or volcanic eruption.

The types of events impact where it’s possible to halt your business operations for a period or operate at a lower capacity, typically result in a loss of profit. It ranges from between being a minor blip on your business’s earning potential radar to completely obliterating your business.

Interpreting the coverage

An insurance policy is an evident contract between the insured and the insurer, spells out the right and duties between them, particularly, specifies the circumstances under which the insurer will pay the insured. And if the insured or anyone wants to know the coverage provided by the insurer, by finding the answer in the policy. 

Policy couched in legal terms and phrases, not surprisingly few people including agents actually read and understand it. Such a situation judge an advocate of creative insurance marketing should not condone. After all one of the basic selling skills is product knowledge, indeed “Know the product” is one of the commandments practiced religiously by disciples of “creative selling” or “high impact selling”.

Is a problem for Malaysian scenario, not just food for thought?

Agents generally lack in-depth product knowledge that they are selling. The lacking not only blunts one’s competitive edge but also prevents one from reaping opportunities offer. Apparently, one contributing factors is the tangible aspect of the insurance product in the form of a legal document, undoubted hard read and understand due to the lengthy sentence full of technical jargon words. Both the insured and the agent, gratefully, they could spare the effort to read the policy. Another reason, many insureds show little interest in the exact coverage offered under such policy until they come to a crunch when a claim arises. Such apathy coupled the incompetence of many agents to explain the policy coverage fluently resulting in unjustified criticism that insurance product hides in a black box and you probably won’t know what is inside until there is a claim.

Loss of profit, what to cover in my next coming post?

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Life insurance claims nursing tutor silences husband

Love is blind, life insurance claims nursing tutor silences husband perpetually for debt settling, happening in our neighboring a land of smile. Cool-blooded nursing tutor silenced her 6 months, husband, a grisly horror life insurance claim due to extravaganza compulsive buying branded bag and customized designer shoe. It is un unjust society where the murder had scot-free to another nation by bribing the concerned authority, a criminal proof plan. Love at sight meeting for this metrosexual couple at a posh hotel lobby, promptly married within a month. It ended with a most unnoticed traceable tragedy. Devil with an Angel dressing, let us be alert and aware such white- collar culprit.

Love at first sight marriage

King and Queen of the day, after the grand and blissful celebration on a luxury yacht, cruising along the city main river with all colleagues, 14 days overseas honeymoon follow suit, envy by many.

The dust has settled and back to their normal lifestyle. A faithful wife to her husband by night, a diligent nurse at the hospital by day, with her loving and career, minded spouse. She prepared the breakfast and cooking their meal happily together, a good neighbor in their gated community suburban residences. The 29 years old wife loved shopping during the weekend, having a soft spot for bag and shoe with her spouse in tow with bags of victory good. Born with a silver spoon, finally, her flamboyant life bares the true color to her husband, often ending with gruesome quarreling.


Her spouse did not rise up after she finished preparing his breakfast before off to the bank at 7.30 a.m. daily. Lying motionless on the king-side bed, she confirmed that her loving hubby dies of naturally dead at the age of 32, subsequently, not suspicious case, no need for a postmortem.

Exorbitant Claim

Instantly, after the funeral over, she went straight to the insurer filing a claim of her late husband life policy, as she was the main beneficiary. $ 1 million exorbitant sums insured for a young bank manager arose of a doubtful claim as the policy inception date less than a year. The insurer called a team of expert to handle such a huge quantum of claim collaborating with the bank and the insurance agent and a famed pathologist.

Confirmed by the agent the nurse approached him to have a policy on the life of her husband. Over the moon, the agent let her filled up all the proposal form and duly signed by the insured, payment with her own credit card.

I let my hand handle this fraud claim when the insurance company requesting to solve this mysterious claim. In the proposal form for a large inquiry for a lump sum insured, she wrote 8 years of marriage which later by the registrar of marriage clarifying the marriage of 6 months. The forensic document analysis had verified that she fabricated her husband signature.

The final verdict

Cremation of corpse did not deter the finding cyanide toxin from the ash of her late husband by a forensic pathologist. Neighbor provision shop she frequents saying she daily buying fresh cassava leaf to make a drink for her husband in the morning. Coupling the smoking habit like a chimney stressful job as fund manager of a foreign bank, indeed a low torturing poison death to him. The final verdict he died of consuming cassava leaf juice blended with some tobacco leaves accumulates of cyanide toxin in his body.

Compulsive Spender

The insurer checked with the credit card company about the spending behavior revealing a compulsive spender weekly on her bag and shoes amounting $1500 a month. Earning $1200 a month, she indeed grossly overspent, thus there is a saying woman complaining not having enough shoe to wear, never enough filling up her wardrobe.

Knowing that she failed to claim the insurance money, she escaped to other nation by bribing those corrupted officer concerned. A sobbing true story the downfall of prominent foreign Ivy graduated nursing tutor and a young innocent bank manager had gone forever due to the compulsive buying behavior.

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Earthquake and Volcanic Eruption property coverage

The Earthquake and Volcanic Eruption property coverage under in the Fire Insurance for Malaysian. Without any apparent warning sign, a magnitude size of 6.00 on 5th June 2015 erupted at Mt Kinabalu had rocked the nation off guard. The  Sabah earthquake, not only devoured 18 life but brought masses destruction to the infrastructure and building with estimated total damage to US$2.84 billion. Consequently, we are no longer living the free earthquake zone. Malaysian starts to realize and the urgent need to have the earthquake and volcanic eruption for the house or commercial property.

The basic Earthquake and Volcano Eruption Clause

All kinds of damages including those arising directly or indirectly out of earthquakes,
tsunami or volcano eruptions including fire, explosion, landslide, and land collapse including the foundations and retaining walls in the cover.

Additional Covered Causes Of Loss

The following 4 items to cover the loss due the cause of


The Volcanic Eruption means  eruption,
explosion or effusion of a volcano.

Any Sprinkler Leakage resulting from Earthquake.

The Sprinkler Leakage resulting from  Volcanic
Eruption. Volcanic Eruption means the
eruption, explosion or effusion of a volcano.

All Earthquake shocks or Volcanic Eruptions
concurrently occurrence within 168-hour period will constitute a single Earthquake or Volcanic Eruption.
The expiration of this policy will not reduce
the 168-hour period.

Exclusion clause

The insurer shall not liable for any damage arising out
of the loss of insured items during fire and explosion caused by earthquakes or volcano.


Insurers are liable for damages in excess of Total Loss occurrence in 72 hours the period in damages caused by earthquake and volcano eruptions excluding fire.

The concrete building will attract higher deduction in comparing with a wooden structure as the former razes to the ground completely. Nevertheless, it is unusual to have an excess of $50 000 for any claim loss unless you can prove to the underwriter that building will build to earthquake resistance proof like in Japan. Sad to say that Malaysian government lukewarm attitude, sitting on the comfort zone has not acquired such enforcement skill.

Premium Rate: 0.010%

If you are insuring your commercial building for a sum insured of $2 million, thus, the affordable premium is $200 per year. Why saves a penny now, spending a fortune later to reconstruct your sweet home later on?

Important to have this clause

Occasionally occurrence tremor on the Peninsular Malaysia hailing from large earthquakes in the Sumatran plate
margin. The highest observation recorded VI on
the Modified Mercalli (MM) scale. No exception to East Malaysia with the localized earthquake rampages on properties damage and human casualties.
The peak VII on MM scale intensity earthquake on the Southern Philippine and in the Straits of Macassar, the Sulu, and the Celebes Sea had spilled over the Sarawak and Sabah.
The earthquake occurs, the magnitude size is not a contributing factor for asunder destruction, but the population density and fire as a secondary event.

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Lazada MalaysiaEarthquake and Volcanic Eruption property coverage 21

Bank wrongly insured different classes of fire insurance

Bank wrongly insured different classes of fire insurance.

The working class will always dream to have a roof over their head. In order to archive the goal, they toil hard from dawn to sunset.  Some even do moonlight on several jobs in a day. They save every a single penny. They called the modern Zombie living merely eat and sleep. They come out to face the sunshine when they save enough to make the 10% or even 30% down payment. Are they happy? Please read on.

Client’s Call

“Jamin, how come your insurer sent my fire insurance policy to the old address? The building had already demolished.” my relative called me during a fine morning after having my morning 10.00 break.

“Let me check first, I shall call you later.”

“What is the policy number you are referring to? I asked her.

“I do not have such policy number, could it be you taking a loan from a bank. It arranged the fire insurance on your behalf.”

Yes, it is correct the bank already auto debit my account for the past 3 years on this shop house.” she answered me with a soft tone.

I was on my way back home on a routine visit to the hospital.  I dropped by to read their policy, shocking to find out that the bank for the 3 years making the same imbecile mistake.

Classification of Risk

As per attachment here, the policy stating the building is vacant and occupied also the sum insured. But, in fact, it occupied as a shop doing retaining business. Dear readers, let us think out of the box.

Which risk is higher? Is it the vacant shop house or retailer? The answer is crystal clear the retailing business attract many customers, thus the higher the risk compared with the unoccupied building.

The vacant risk the insured pay lesser premium, higher for the retailer shop house. Occurring of fire razed the building to ash, will insurer pay? The Principle of Utmost good faith shall apply to whom.  Is the bank or the insured party?

Insurable Interest

Malaysia is a unique country with different rule and regulation. The local bank also has a subsidiary composite insurance. It could be a general or life insurance. Despite the Bank Negara Malaysia gave warning to the bank stating it could not force the borrower to buy fire insurance with them.   Nevertheless, it has fallen to a deaf ear, either the bank is greedy to make an excess profit out from the borrower or the insured is very ignorant. Do bank has any insurable interest in the building? Does the bank suffer any financial loss without the building?

Creditor Insurance

The insured is still continuing paying the installment even without the existence of the building. The bank providing the credit to the borrower, the bank should issue the creditor’s insurance to the borrower.  In the event, the borrower passed away, the bank would suffer the financial loss, as it has insurance interest on the loan amount, not on the building.

Under insurance

The Malaysian ringgit has depreciated against the US dollars about 30-35% coupling with the 6% of GST implemented 1st April 2015. It was inadequate to cover the building that brought from the developer in 2014. The purchase price was RM350 000.00 and the loan amount was RM244 000.00. On 2017, the sum insured was still the same amount as before without any upward adjustment.  No inflation for the past 3 years in Malaysia? Even the kid knows the answer. When a claim occurs, the average would apply. People would say insurer always conned people.

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Bauxite vessel sinks off Vietnam coast of Vung Tau

Bauxite vessel sinks off Vietnam coast of Vung Tau. M.V.,”Bulk Jupiter” left Kuantan Port carrying a cargo of bauxite ore sank off Vietnam waters on the way to China killing 18/19 crewmembers. The only Filipino chef survival said that he did not know why the ship suddenly capsized and sank when it was about 150 nautical miles from the southern city of Vung Tau on the morning of January 2, 2015 (Vietnam time).

The cause of sinking

The liquefaction of cargo causing the cargo to behave like a liquid inside the cargo hold of the ship hence causing instability to the ship and making it basically turn turtle.

The following was my comment on the FB on 7th April 2017 in the Insurance Forum.


Under the Code, bauxite is stated to be a Category “C” cargo, with the following cargo composition: Size
70% of 90% Lumps:
2.5 mm to 500 mm
10% to 30 % powder.

We assuming the cargo is sufficiently dry and in any event has a moisture content below the Transportable Moisture Limit (the “TML”) which is, of course, a figure at 90% of the Flow Moisture Point (the “FMP”). In this case, the port surveyor engaged by the Charter Party i.e the shipper did not test the cargo before loading. If the test was not in their favor, the shipowner could refuse to load the said cargo. Refer to the IMSBC code for further explanation.

Flag of convenience

The MV “Bulk Jupiter” was a flag of convenience registered in the Bahamas, thus it was the sub-standard class of vessel. Was it a member of the London P& I club.? Also, the annual dry docking for inspection would able to find out the vessel fatigue. Had the sea-worthiness and crew-worthiness certificate been obtained from the classification society namely Lloyd, Bureau Veritas, American Bureau of Shipping, Russian maritime of shipping and Nippon Kaiji Kyokai?

The Master’s Knowledge

The master of the ill-fated vessel knew that the bauxite can turn into a liquid state, by 10% of moisture content, which risks increase from C to A category. Therefore, there was a chance of cargo shift that leads the vessel capsizing. Was the crew constantly monitor on the bulk cargo in the various hold? The stability of the vessel depends on the crew competency. During the Northwest monsoon, the sea wave is choppy in the South China Sea, with the frequency of Typhoon Signal of 3 or even higher that bring disaster to vessel plying along the coastal area or in the open sea. Had the master been warned about it?

P & I club will never engage a pre-shipment surveyor. Whether it is loading in America, Canada, Thailand, Indonesia, Malaysia and Australia port. According to various sources, the cargo insurer was actively threatened by the bauxite syndicate and practically tossed out of port” Was it true? Any evidence to prove it?

Finally, the chartered party term and insurance policy need to examine closely. The master log book report with a special detail of the sea weather condition like wind speed and, wave level need to study carefully before it can derive a final report.


The Sub-Committee concluded that:

  • There is a need to raise awareness, despite the efforts to date made by the Member clubs of the International Group of P&I Clubs, of the possible dangers of liquefaction associated with carriage of bauxite.
  • The potential for bauxite to liquefy is not specifically addressed in the IMSBC Code since it is only classified as Group C cargo.
  • If a Group A cargo is shipped with moisture content in excess of its transportable moisture limit (TML) there is a risk of cargo shift, which may result in capsizing.
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Lazada MalaysiaBauxite vessel sinks off Vietnam coast of Vung Tau 24

The Fast claim on equipment breakdown insurance

 The Fast claim on equipment breakdown insurance. Generally speaking, most of the household has a numerous of equipment at home. It can be kitchen electrical appliances, air-condition, robotic vacuum cleaner or lawn movie machinery. Likewise, it is the same for a factory using equipment for fast production.

Mega Risk Insurance

A plastics molded manufacturer insured their factory building, machinery, and loss of profit insurance with me. The Bank provided the loan facilities to insured, but not keen to cover this high-risk upon completed the premise. I was called to handle this mega risk for a special rating instead of following the fire tariff. An engineer from the HQ came down to survey the premises and recommend the special rating for PIAM approval after testing all the sprinkler system, water tank vortex, water hydrant, fire extinguisher and the firefighting squad team.

We have a whole day discussion how much coverage was required for the risk.

Machinery Coverage

Since all the machinery was imported directly from Japan. I need the original invoices to convert from Japanese Yen to Malaysian Ringgit.

“All the machinery is worth around RM10 million, it is best to cover this amount,” I advised the owner.

“I think we should cover less than this amount less say 20% depreciation.” the accountant said.

“Why? I asked him.

“The machinery would depreciate at least 10 to 20% after a year. We will write down for say 10% of depreciation based on our accounting system.”

“In insurance term, we “appreciate” for your used machinery less than 5 years old, provided that you have to cover the sum insured based on the original invoice value.  We will apply average in the event of the claim”

“What do you mean the word average”

“Average is a penalty, same like the franchise in marine insurance.”

“You mean deduction from the claim,’

“Yes, Mr. Accountant, as all the machinery imported from Japan directly, I will add the adjusting and replacement cost value clauses. It is free of charge.”

What is replacement cost value?

Replacement Cost Value is the amount it would cost to repair or replace an item with one of like kind and quality as the original – in today’s market without deduction for depreciation.

3 years later, a short circuit completed blazed the one unit of the equipment into the charcoal black. It was a total loss, the machinery needed to import from Japan. The Japanese Yen had appreciated more around 35% against Malaysia Ringgit.

“Jamin, we would like to claim the total loss for this unit of a machinery of RM100 000.00 as we have the coverage.” the owner called me.

“Please do not worry, the insurer will pay you the full amount. Please request a copy of performance invoice from Japan along with duly signed and completed the claim form and forward to us.”

The final verdict

The owner called and invited me for a business lunch after I personally handed over the cheque amounting to RM135 000 for the total loss claim. If the owner agreed with his accountant to cover Rm90 000 for the said equipment just to save an insignificant amount on premium. The claim would be RM90 000/135000 x 100% = 66.60%. The average rule applies Rm90 000 x 66.60% = Rm59 940 would be the final claim amount. Do you want to have insurer pay you RM135 000 or RM59 940?

Why extra?

Why RM135 000 instead of the original price of RM 100 000.  It is due to the replacement cost value at the current market price without any deduction for depreciation. The reader can also claim the household electrical appliances for new for old replacement. 

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