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

Tomorrow: Insurance Risk Management Basics Thank You Tomorrow: Insurance Risk Management Basics