2 Lockton Wattana Insurance Brokers (Thailand) Ltd. Established in 1984In 1986, entered into a joint venture with Citicorp Insurance Group and become part of management buyout by Nelson Hurst International Group in 1991In 1997, Price Forbes Group acquired Nelson Hurst, and renamed as Alexander Forbes Wattana Co., Ltd.End of 2006, buyout of International Operation by Lockton Group, we became Lockton Wattana Insurance Brokers (Thailand) Ltd.Ranking – Top ten of the world, top three in ThailandOver 140 offices in 44 countries.Office in Thailand – approximate. 230 staffsOutstanding Non-Life Insurance Broker for the year 2008, 2009, 2010, 2011 and 2012
3 Lockton Wattana Insurance Brokers (Thailand) Ltd. Insurance ServicesProperty All Risks - Marine Cargo / Inland TransitBusiness Interruption - Personal AccidentPublic Liability - HealthMotor - TravelContractors’ All Risks - Directors’ & Officers’ LiabilityFidelity Guarantee - Professional Indemnity/ Professional LiabilityMoney - Trade Credit
5 PROFESSIONAL INDEMNITY INSURANCE (PI) To indemnify the insured against legal liability for any claim first made against them during the period of insurance.Arising from Wrongful Act (i.e. negligent act or error & omission) in the conduct of the Professional Services practice carried on by the insured.Professional Indemnity Policy would provide cover for:- compensation, and/or damages awarded against professional legal costs and other expenses associated with defendinglegal actions (subject to consent of the insurer).
6 DEFINITIONSWrongful Act shall mean any error, misstatement, misleading statement, act, omission, neglect or breach of duty committed, attempted or allegedly committed or attempted, by an Insured while performing or failing to perform Professional Services.Professional Services shall mean services performed by an Insured solely in its capacity as their Business Practice for or on behalf of a customer of the Insured.Business Practice shall mean the business conducted by the Insured, as specified in the Schedule.
7 CLAIM MADE BASISClaims made basis shall apply only to wrongful acts which happen, and for which claim is made against the Insured, while the insurance is in force.Claim Made16/11/2013Wrongful Act15/5/2012Retroactive Date1/1/20111st Policy2nd Policy3rd Policy2011201220132014Claim first made on 16/11/2013, Wrongful act happen on 15/5/2012
8 PROFESSIONAL INDEMNITY INSURANCE (PI) Policy scheduleLimit of policy, Up to client, Normally Limit ~ USD 1 M – USD 20 MDeductible, ~ > USD 10,000Premium, ~ > USD 7,000Type of Policies1. Annual Policy- For all activities of the Insured and shall renew every year.2. Single Project Policy- For Specific activity with period more than 1 year. Generally up to 10 Years.3. Excess Layer Placement- In case of Higher Limit, we could use Local Insurance as Primary Layer and use International Reinsurer as Excess Layer
9 POLICY EXTENSION Libel and Slander - Estates and Legal Representatives - Project Management- Outgoing Principals- Loss of DocumentsIntellectual PropertyJoint Venture LiabilityConsultants, Subcontractors and AgentsRun-off Cover Insured Entity or Subsidiary- Estates and Legal Representatives- Acquired Entity or SubsidiaryFraud and Dishonesty (Optional)Increased Aggregate Limit of Indemnity(Optional)
10 STANDARD EXCLUSION Prior or Pending Claim - Supply of Goods Known Claim & Known Circumstance- Fraud and Dishonesty- Assumed Duty or Obligation- Related or Associated EntitiesFines and PenaltiesPunitive DamageNuclear- Supply of Goods- War & Terrorism- Absolute Asbestos- Previous Business- Bribe & Illegal Payment
11 STANDARD PREMIUM PRACTICE Business TypeAnnual Report &Overall businessExperience &QualificationClaimHistoryLimit of liabilityDeductible
12 PROFESSIONAL INDEMNITY INSURANCE (PI) Market CapacityLOCAL CAPACITY USD 5 M – USD 20 MINTERNATIONAL CAPACITY USD 10 M – USD 30 MExample Of Local CapacityQBEAIGACENon Preferable Risk* Geotechnical / Soil* Environment Engineering* Nuclear Engineering* Mining Engineering* Chemical Engineering* Aeronautical / Space Engineering* Marine / Naval Engineering* Offshore Platform EngineeringLimit of CapacityUSD 20 MUSD 5 M – 10 MUSD 10 MSingle Project Period7 Years> 10 Years1.5 Years
13 PROCESS OF BUYING POLICY ClientInsured complete Application Form submit to LOCKTON.LOCKTON approach the markets for insurance terms.LOCKTON return Quotations with suggestion to Insured.Insured select the prefer one, then receive Policy from LOCKTON while LOCKTON continue support for any claims that may occur.ApplicationPolicyLOCKTONInsurersInsurerInsurerInsurer
14 ROLE OF INSURANCE BROKER To work for insurance related issues on your behalfTo assist you in buying insurance and not sellingTo analyze and survey of your insurance needs and arrange the insurance which most suits to your exposure.Market with underwriters different appetites and capacities.To clarify and discuss with you to choose the appropriate insurance programTo handle and manage the claim until the claim is finally settled
15 CLAIM EXAMPLESCLAIM INVESTIGATIONWhat actually happened?What went wrong?Why did it go wrong?Was the Insured or one of their employees responsible for what went wrong?Is the loss covered by the policy?Are the Insured’s business activities correctly described in the policy schedule?Was the loss notified in accordance with the requirements of the policy?Royal Plaza Hotel at Nakhonratsima collapsed on 13th August 1993137 people diedRenovated from 3 storeys building to 6 storeys due to boom business
16 CLAIM EXAMPLESCLAIM INVESTIGATIONWhat actually happened?What went wrong?Why did it go wrong?Was the Insured or one of their employees responsible for what went wrong?Is the loss covered by the policy?Are the Insured’s business activities correctly described in the policy schedule?Was the loss notified in accordance with the requirements of the policy?Burapha University, Chonburi, 2nd Flooring collapsed on 15th August 2010One dead and four got injured
17 CLAIM EXAMPLESCLAIM INVESTIGATIONWhat actually happened?What went wrong?Why did it go wrong?Was the Insured or one of their employees responsible for what went wrong?Is the loss covered by the policy?Are the Insured’s business activities correctly described in the policy schedule?Was the loss notified in accordance with the requirements of the policy?7 Storeys, 77 Rooms Apartment at Kukot, Lamlukka leaned in 2013Had to demolish
18 CLAIM EXAMPLESCLAIM INVESTIGATIONWhat actually happened? Concrete Beam CrackedWhat went wrong? Incorrect DesignWhy did it go wrong? Loading calculation errorWas the Insured or one of their employees responsible for what went wrong? YesIs the loss covered by the policy? YesAre the Insured’s business activities correctly described in the policy schedule? YesWas the loss notified in accordance with the requirements of the policy? Yes6 Storeys Shopping Complex at Samutprakarn, Concrete Beam Cracked in 2013Rectification Cost approx 6mb
19 CLAIM PROCESS Claim First Made Pay Defense, Investigation CLAIMANT 1Claim First Made2CLAIMANTINSUREDPay Defense, InvestigationPay damages, IndemnityClaimConsult43Lockton report claim andassist Insured to get their Claim.LOCKTONINSURANCE
20 STANDARD CLAIM PRACTICE The Insured must give to LOCKTON a written notice of any Claim first made against the Insured - as soon as practicable and during the Period of Insurance.Relevant documents :The date in which the Insured/Company first became aware of the matter, if other than the court summons.Notice letters and/or demand letter and/or other written correspondence from the claimant etc. (if any).Other additional documents, if required. In case there is a circumstance which the Insured realize that it may lead to a claim in the future, it is required by the Insurer to report such circumstance to reserve the right of claim. LOCKTON may also be able to advise you about whether a situation is a circumstance that should be notified.
21 INSURANCE PARTNER LOCKTON LIU ACCP ACE ACR QBE AIG ZURICH SWISS RE GenerallyADHIPHAYATHAISRISCCB
22 LOCKTON WATTANA – PI TEAM Lockton Wattana Insurance Brokers (Thailand) Ltd.35th Floor, United Centre Building,323 Silom Road, Khet Bangrak, Bangkok 10500Tel• Underwriting:-Name Ext.Khun Mingkwan SirichaiyakulKhun Viyada EngchuanKhun Supattaga Kunjara Na Ayudhya 6903• Claims Department:-Khun Sakorn Sudsa-ardKhun Pannapa ThepmahutsilpKhun Tipprapai Lagum