Why We Need Insurance

Philip Holdway-Davis

Underwriting Manager

Federal Pacific Insurance Limited

Tonga & Samoa

Introduction

Malo

FPI

PHD

GIP

Today: Why We Need Insurance

Tomorrow: Insurance Risk Management Basics

Insurance vs Beer

Insurance vs Gambling

Life, Health & General

Why We Need Insurance

Why do we need insurance?

How & why insurance started

Joseph, Pharoah’s No. 2

The beginnings of the insurance industry today

How insurance works

Making a claim

What if there was a natural disaster?

How an insurance company makes a profit

Types of insurance

Why Do We Need Insurance?

Federal Pacific Insurance - Key Products

Business Assets (Material Damage)

Business Interruption

Public Liability

Contract Works

Personal Accident

Private Motor Vehicle

Commercial Motor Vehicle

Employers Liability

Domestic House & Contents

Business Assets (Material Damage)

Unforeseen, unintended, sudden, accidental and fortuitous physical loss or damage

Buildings and structures

Business contents, machinery, equipment and stock

Fire & listed named perils & cyclone and natural disaster

All perils except as stated in the policy wording exclusions

Business Interruption

Policy triggered if FPI pays a claim under the material damage policy

Pre-tax net profit

Wages/salaries

Loss of rent income

Interest for loans

Telephone & communication

Power and electricity

Water rates

Additional increased cost of working

Public Liability

Indemnifies you for all sums that a competent court in Tonga finds you legally liable to pay, for third party property damage and third party bodily injury due to a breach of your duty of care to the public.

Product liability included for the manufacture, supply or distribution of products in Tonga.

Defence costs (if not expressly excluded)

Landlord’s liability included

Tenants liability included

Bailee's liability – optional

Defective design, mechanical plant and removal of support - optional

Contract Works (C.A.R.)

Unforeseen, unintended, sudden, accidental and fortuitous physical loss or damage

Public liability arising out of the contract works

Contract value

Materials supplied by principal or free to contractor

Demolition and removal of debris after a loss

Architects, engineers, consultants fees

Existing structures

Contractor’s temporary buildings and site huts

Contractor’s plant and machinery

Employees hand tools

Personal Accident

Group policy preferable but can do individual

Lump sum for death by accident or illness (up to 3x annual salary)

Lump sum scale for disabilities caused by an accident

Weekly accident benefit

Exclude pre-existing conditions

Maximum age 60

Private Motor Vehicle

Market value

Full comprehensive cover – own damage and third party liability

Third party fire & theft

Third party only

Uninsured third party cover up to TOP$3,000

Trailer cover

Reasonable salvage and rescue costs

Commercial Motor Vehicle

Market value

Full comprehensive cover – own damage and third party liability

Third party fire & theft

Third party only

Uninsured third party cover up to TOP$3,000

TOP$10,000 death by accident benefit

TOP$5,000 funeral costs

Disability modifications

Hoists and hydraulic rams

Property in transit/removal of debris/salvage & rescue costs/safety of the vehicle/tarpaulins, sheets, ropes and chains

Invalidation - optional

Employers Liability

Indemnifies you for all sums that a competent court in Tonga finds you legally liable to pay, for bodily injury due to a breach of your duty

of care to an employee

Domestic House & Contents

Unforeseen, unintended, sudden, accidental and fortuitous physical loss or damage

House & structures

Home contents

Named perils + cyclone and natural disaster.

Public liability

Thank YouTomorrow: Insurance Risk Management

Basics