Risk Management in Commercial Insurance 2 - 3 case studies of Japanese companies in Malaysia
Is your company fully protected against risk with insurance?
Do you think commercial insurance is necessary for your company?
Risk Exposure varies depending on business type and company size. Insurance plays an important role to protect against unfortunate events that could occur.
We had a chance to have the interview with Ms. Bando, Senior Manager at TOYOTA TSUSHO HOKEN AGENCY (M) SDN. BHD., one of the leading Japanese corporate agents in Malaysia to talke
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Risk Management and Commercial Insurance in Malaysia 1 – Possible risks in Malaysia
TOYOTA TSUSHO HOKEN AGENCY (M) SDN. BHD.
Senior Manager / ACII
Ms. Izumi Bando
After spent 6 and a half years at Tokio Marine & Nichido Fire Insurance Co., Ltd. (former Tokio Marine & Fire Insurance Co., Ltd.), studied in Britain and obtained ACII（Associated Chartered Insurance Institute）. Had worked 3 and a half years at the leading US company, Marsh Insurance Broker Japan（former Johnson & Higgins Insurance Broker）and 6 and a half years at the sales department at TOYOTA TSUSHO HOKEN AGENCY.
Commercial Insurance – What is the Basic Insurance Package for any industry
First of all, the basic insurance is the more or less same even business types and company sizes are different.
You just add clauses or the Buy-Back option (certain exclusions can be taken out with additional premium such as deductible that the insured needs to bear the first portion of claim payment) to your basic insurance upon your request.
Basic insurance is “Fire insurance” and “Theft insurance”.
If you need employees benefit insurance,
You can add “Group Personal insurance” and “Group medical insurance” to your basic insurance.
“Theft insurance”, “Money insurance” and “Fidelity Guarantee” are required for companies to protect against unexpected financial loss.
Car dealers normally have showrooms and automobiles workshop.
Case 1: Car dealers
Numerous people visit showrooms so risks related to premises are considered high compared to the office, i.e. customers might be injured caused by slips and falls at the showrooms.
I recommend you to buy Public liability insurance that covers the legal liability of the insured when the third party is injured or their property is damaged caused by your premise’s defect or your staff’s fault.
Plate glass in showrooms, offices, shops, and buildings can be insured under the Plate Glass insurance. Plate Glass Insurance covers accidental breakage of glass in your showrooms, offices or buildings.
Garage liability insurance protects you against the legal liabilities arising from the workshop’s general business operations within your premises.
You can also add “Trade plate insurance” in case an accident happened during test drive outside the premises.
You may also need “Cargo Insurance” that provides coverage against damage to your own cargo during the transit.
Case 2: Heavy Equipment Rental industry
It trends upward that Japanese companies in service sector expanded their business in Malaysia.
As an example, the company provides the heavy equipment rental service. We were advised the company planned to store the equipment at the isolated place with a security guard, we recommended them “Fidelity Guarantee” which protects them against financial loss caused by any fraudulent or dishonest acts committed by their employees. Unfortunately, there are a lot of cases that employees commit fraudulent or dishonest acts in Malaysia. In this case, the equipment was stolen by one of their employees collaborated with a security guard immediate after starting to store, thus, Fidelity Guarantee became a safeguard of the company against financial loss caused by the dishonest act of the employee.
We are the leading and experienced insurance agent in Malaysia.
We recommend the commercial insurance properly to meet
Case 3: Manufactures
Manufactures own factory buildings and machinery. It is necessary for them to have insurance for factories and machinery to protect their own assets against possible exposure.
Along with the basic fire insurance, we may recommend you to cover “Landslide Risk” when the building of manufacture is located near hill or on raised ground level. This coverage has two choices: one is to cover the building only and the other to cover the surroundings as well. We will explain the difference of two choices when this coverage is recommended.
We may recommend you “All Risks Insurance” to cover loss or damage to your property caused by fire, theft or any other accident or misfortune happening instead of fire policy.
We may also recommend you “Machinery Breakdown Insurance”, which provides coverage against sudden and unforeseen physical loss of or damage to your machinery due to such as faulty design and short circuit.
“Gross Profit Insurance” is also important. This insurance covers the net profit and fixed costs until the turnover becomes normal after your property is damaged.
How an Insurance Claim Processes
A policyholder needs to notify the claim to us upon the damage or loss. We advise an insurance company subsequently.
Once the insurance company receives the claim notification, a loss adjuster is normally appointed to handle the claim.
Our experienced staff in the Claim Department determines to settle the claim reasonably. For example, we have settled one landslide claim with RM1 million payment after negotiating with the insurance company. The first offer of this claim was RM300,000 but we could not accept such offer and carried out long and hard negotiation to reach RM1 million claim payment which is the full amount settelment.
We are dedicated to work together with the insured for a reasonable claim settlement.
Clear Explanation on Risk Prevention Survey and Insurance Coverage
TOYOTA TSUSHO HOKEN AGENCY specialized in Insurance as “Risk Management”.
We conduct plant visits to analyze fire and related exposures like natural disaster, and the exposure of machinery breakdown and theft before providing you an insurance quotation.
We may look through your agreement to make sure to vest you with proper insurance coverage if necessary.
When you purchase insurance, we explain to you clearly about coverage and exclusion and we offer you insurance tailored to your needs and budgets.
We recommend your insurance should not be “Under Insured” ** .
** “Under Insured" is the sum insured of insurance policies that does not represent the full value of your assets which leads to the claim payment to be made proportionally.
Please feel free to contact us when you start your business in Malaysia or need to review your insurance policy and consultation fee is free.
・ Risk Management and Commercial Insurance 1 – Possible risks in Malaysia
・Service Overview of TOYOTA TSUSHO HOKEN AGENCY (M) SDN. BHD.