1. PROFESSIONAL INDEMNITY INSURANCE COUNCIL OF ENGINEERS JANUARY 22, 2014

2. Transferred Risk (Insurance) Reduced Risk (Safety Measures) Avoided Risk Retained Risk Level Of Risk RISKS MANAGEMENT – MIX STRATEGY

3.  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 defending legal actions (subject to consent of the insurer). PROFESSIONAL INDEMNITY INSURANCE (PI)

4. DEFINITIONS Wrongful 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.

5. Retroactive Date 1/1/2011 2011 Claim Made 16/11/2013 Claim first made on 16/11/2013, Wrongful act happen on 15/5/2012 2012 2013 Wrongful Act 15/5/2012 2014 1 st Policy 2 nd Policy 3 rd Policy CLAIM MADE BASIS Claims 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.

6.  Limit of policy, Up to client, Normally Limit ~ USD 1 M – USD 20 M  Deductible, ~ > USD 10,000  Premium, ~ > USD 7,000 PROFESSIONAL INDEMNITY INSURANCE (PI) Policy schedule 1.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, Broker may use Local Insurance as Primary Layer and use International Reinsurer as Excess Layer Type of Policies

7. -Libel and Slander -Project Management -Outgoing Principals -Loss of Documents - Intellectual Property - Joint Venture Liability - Consultants, Subcontractors and Agents - Run-off Cover Insured Entity or Subsidiary POLICY EXTENSION - Estates and Legal Representatives - Acquired Entity or Subsidiary - Fraud and Dishonesty (Optional) - Increased Aggregate Limit of Indemnity (Optional)

8. -Prior or Pending Claim - Known Claim & Known Circumstance -Fraud and Dishonesty -Assumed Duty or Obligation -Related or Associated Entities - Fines and Penalties - Punitive Damage -Nuclear STANDARD EXCLUSION - Supply of Goods - War & Terrorism - Absolute Asbestos - Previous Business - Bribe & Illegal Payment

9. STANDARD PREMIUM PRACTICE Business Type Annual Report & Overall business Experience & QualificationClaimHistory Limit of liability Deductible

10. PROFESSIONAL INDEMNITY INSURANCE (PI) Non Preferable Risk * Geotechnical / Soil * Environment Engineering * Nuclear Engineering * Mining Engineering * Chemical Engineering * Aeronautical / Space Engineering * Marine / Naval Engineering * Offshore Platform Engineering Limit of CapacityUSD 20 MUSD 5 M – 10 MUSD 10 M Single Project Period7 Years> 10 Years1.5 Years  LOCAL CAPACITY  USD 5 M – USD 20 M  INTERNATIONAL CAPACITY  USD 10 M – USD 30 M Example Of Local Capacity Market Capacity

11. ClientClient ApplicationApplication InsurersInsurers 1. Insured complete Application Form submit to Broker.Application Form 2. Broker approach the markets for insurance terms. 3. Broker return Quotations with suggestion to Insured. 4. Insured select the prefer one, then receive Policy from Broker while Broker continue support for any claims that may occur. PROCESS OF BUYING POLICY BrokerBroker Policy Insurer

12. ROLE OF INSURANCE BROKER  To work for insurance related issues on your behalf  To assist you in buying insurance and not selling  To 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 program  To handle and manage the claim until the claim is finally settled

13. CLAIM EXAMPLES  6 Storeys Shopping Complex at Samutprakarn, Concrete Beam Cracked in 2013  Rectification Cost approx 6mb CLAIM INVESTIGATION 1.What actually happened? Concrete Beam Cracked 2.What went wrong? Incorrect Design 3.Why did it go wrong? Loading calculation error 4.Was the Insured or one of their employees responsible for what went wrong? Yes 5.Is the loss covered by the policy? Yes 6.Are the Insured’s business activities correctly described in the policy schedule? Yes 7.Was the loss notified in accordance with the requirements of the policy? Yes

14. INSURED INSURANCE CLAIMANT Claim First Made Claim Pay damages, Indemnity Pay Defense, Investigation BROKER Broker report claim and assist Insured to get their Claim. Consult 1 1 2 2 3 3 4 4 CLAIM PROCESS

15. STANDARD CLAIM PRACTICE  The Insured must give to Broker 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. Broker may also be able to advise you about whether a situation is a circumstance that should be notified.