Types of engineering insurance
There are six headings under which engineering plant may generally be grouped. These are Boilers and pressure plants Engine plant Lifting and handling machinery Electrical plant Computers Miscellaneous plant. Boilers and Pressure plant Under this sub- title, we will deal with: Steam boilers, steam receivers, economizers, super heaters, steam pipes, hot water heating and […]
Introduction to engineering insurance
The Insurance Act defines Engineering insurance as the business of effecting and caring out contracts of insurance of various perils arising out of plant and machinery, such as explosion and collapse of boilers, breakdown of electrical and mechanical plant and lifts and cranes and resultant of damage to the insured surrounding property and liability to […]
Emerging risks and the insurance response
An Emerging risk from the insurance perspective, is an issue that is perceived to be potentially significant but which may not be fully understood or understood or allowed for in insurance terms and conditions, pricing, reserving and capital setting. A number of such issues are assuming increasing importance in East African region. Some of these […]
Future trends in underwriting
There is now a trend to move away from stand-alone general insurance products (i.e. policies generally covering one peril) such as the standard fire policy, theft, money, goods in transit, business interruption and the like. On a series drawback, with such products in their tendency to generate disputes as some clients interpret the meaning of […]
Products Designed to Enhance Insurance Penetration
There is a big market insurance that has not been exploited and strategies need to be devised to access it. This unreached market is basically made up of the majority who are poor – at the bottom of the pyramid, the middle class, who decline insuring because of its rather negative image. As a result […]
Alternative Bases of Insurance
Some of the alternative basis of arriving at at the sum insured include: Agreed Value Basis An agreed value policy or valued policy is one which the maximum payable in the event of total loss is the sum insured which was agreed in between the insurer and the insured at the time of effecting the […]
Reinstatement under policy
Reinstatement means the restoration of the property insured to the condition in which it was in immediately before its damage or destruction. For example, a total loss is made good by rebuilding the premises or replacing the goods with similar ones. In case of the partial loss, reinstatement is made by undertaking the necessary repairs. […]
Average Conditions in property insurance
The application of average is a method by which insurers seek to defeat under – insurance and its negative effects of the insurer, when an insurance is subject to average the amount payable by insurers is restricted to that proportion of the loss that the sum insured bears to the value of property at the […]
The sum insured in property insurance
The Sum Insured The sum insured is the insurers maximum liability, and is the basis upon which the premium is calculated. It represents the maximum value at risk of property. It is the proposer’s responsibility to determine the sum insured which should represent the full value of the property covered. The sum insured is […]
Advance Profits Business Interruption Insurance
This cover is available where a new business is contemplated or a major extension to an existing business is to be made by either their building work or the introduction of new equipment or machinery. Were either of the losses to happen, a financial a financial loss may occur through delay by: Damage to the […]