1. Why We Need Insurance Philip Holdway-Davis Underwriting Manager
Federal Pacific Insurance Limited
Tonga & Samoa

2. Introduction Malo FPI PHD GIP Today: Why We Need Insurance
Tomorrow: Insurance Risk Management Basics
Insurance vs Beer
Insurance vs Gambling
Life, Health & General

3. 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

4. Why Do We Need Insurance?

42. 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

43. 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

44. 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

45. 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

46. 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

47. 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

48. 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

49. 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

50. 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

51. 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

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