PROPERTY & LIABILITY INSURANCE
PROPERTY & LIABILITY INSURANCE
1. FIRE &
EXTRANEOUS PERILS INSURANCE
Fire Insurance is
required to safeguard the policyholder’s Buildings if these are owned by the
business, and in any event to protect the Contents of the premises such as
Machinery, Equipment, Stock and Furniture against damages caused by Fire and/or
Besides Fire and/or
Lightning, loss or damage to property caused by natural disasters, Flood,
Explosion, Riot and Strikes, Malicious Acts, Impact of Aircraft or Vehicle
and/or Water Damage can be just as severe and such calamities are insured under
a Standard Fire and Extraneous Perils Cover.
2. ALL RISKS
The basic Fire and
Extraneous Perils cover is extended to an All Risks Insurance for buildings and
other crucial contents such as plants and machinery, office equipment, stock,
and miscellaneous items. This will also provide protection against any
accidental loss or damage including theft or burglary and the policy is fit for
industrial and commercial organization.
Instead of the
policyholder choosing from the list of perils available for insurance, the “all
risks” form includes all of the perils and accidental damage to the property
insured. The perils insured against are not specified. Instead, the policy
promises to pay for accidental damage or destruction to the property insured.
While the coverage is
termed “All Risks” there are commonly excluded perils such as war, civil
insurrection, nuclear risks, machinery breakdown risks, etc.
The income of a
business may be just as important to it as its buildings and contents. The
business can safeguard its income lost following damage covered by a Fire
Insurance Policy or an All Risks (Material Damage) Insurance Policy by arranging
suitable Business Interruption Insurance.
A Fire Policy or an
All Risks (Material Damage) Insurance only covers material damage to physical
property, and would not cover consequential losses such as reduction in profit,
an increase in costs of working, or provide cash to pay for normal ongoing
expenses such as salaries and rent, all these are covered under Business
Interruption Insurance Policy which is by experience shown to be a vital form of
cover for Industrial and Commercial organizations to avoid being closed down
permanently after suffering a fire or other serious calamity.
A Public Liability
Insurance Policy aims to indemnify the policyholder against the compensation and
legal costs the policyholder may be legally liable to pay for accidents causing
bodily injury, death, disease or illness to any one or damage to a third party’s
material property, arising out of or in connection with the Business, and
occurring during the period of insurance in Vietnam, elsewhere in the world in
connection with commercial visits by directors or non-manual staff normally
resident in and traveling from Vietnam. Cover is not available for activities
conducted from overseas premises.
A Products Liability
Insurance Policy covers legal liability for Bodily Injury or Damage occurring
anywhere in the world caused by goods or products which the policyholder have
supplied, sold, erected, repaired, altered, treated or installed in connection
with and in the course of Business.
As a basic Public
Liability Insurance Policy normally does not cover Products Liability, the
latter liability can be covered by deleting the “Product Liability” exclusion in
the Public Liability Policy, by a separate Products Liability Policy or a
combined liability policy with two separate sections for Public & Products
Liability. And it is not usual for an Insurer to offer products cover unless the
policyholder holds the Public Liability Insurance.
6. MONEY INSURANCE
covers cash, cheques, any banks notes, currency notes, money orders, postal
orders, current unused postage stamps etc while in transit, on the insured’s
premises during business hours, out of business hours and not in a safe or
strong room (nominal limit), in a bank night safe, in a locked safe or strong
room out of business hours, in the private residence of any principal or an
employees of the Insured (nominal limit), in the custody of collectors or
travelers provided it is delivered to the Insured, banks or post office within
Coverage is on “all
risks” basis, including theft and other accidental losses. Cover can be extended
to include Damage caused by thieves to safes and strong rooms, Personal Accident
benefits to employees or representative who may be attacked while handling or
carrying money on behalf of the Insured, loss of or damage to employees’
clothing and personal effects in the course of theft or attempted theft, cost of
opening safes or strong rooms following theft of keys.
relate to situations where employees handle their employers’ money or other
property, either by way of handling cash as a cashier or sale assistants does,
or by way of being involved in record keeping, in a way that an accountant,
computer operator or purchase manager does. Either way, it is possible for the
employee to divert the employer’s money or property to somewhere it is not
supposed to go – such as the employee’s pocket or bank account. This is the sort
of fraud and dishonesty that is insured by a Fidelity Guarantee.
The cover applies
during the currency of the policy, the “discovery period” – a period during
which a theft committed during the currency of the policy and discovered up to
24 months after termination of the policy, or after the guilty party resigns,
leaves the employment, or dies. The Insurance can also be extended to cover
auditor’s fees incurred in substantiating the amount of the loss and the cost of
rewriting or amending computer program to avoid future losses.
WORKMEN’S COMPENSATION INSURANCE
Compensation Insurance provides cover for employers for sums in respect of
hospitalization expenses, disability sums and lost wages that the employers are
liable to pay to injured employees under the Labor Code of Vietnam. As an
employer, it is mandatory under the Law that the employees are fully protected
against injury/death by accident or disease arising out of and in the course of
This is insurance
cover for work related accidents and/or diseases and while the employees are at
the work place or moving to and from the work place, including whilst on
business trips anywhere in Vietnam during his employment with the employer .
9. OFFICE &
HOME MULTI RISKS INSURANCE
These two insurance
policies are designed to protect the Policyholder against most perils that are
likely to damage or destroy property belonging to the policyholder at Office and
In addition, public
liability cover, money cover, personal accident benefits cover for office staff
can be endorsed to the Office Multi Risks Policy while other miscellaneous
perils covers can be endorsed to both policies.
Theft is also covered
under both policies if there is physical evidence of break in.
PROFESSIONAL INDEMNITY INSURANCE
Indemnity Insurance insures professional people (accountants, solicitors,
architects and surveyors, Insurance or stockbrokers, doctors, dentists and other
medical practitioners etc) or firms for their legal liabilities to third parties
arising from their professional negligence or that of their employees i.e. the
professional people can fail to exercise the skill and care that is expected of
them – this skill and care is above and beyond the normal duty of care,
resulting in loss to the client.