Burglary Insurance
Consequential Loss Insurance
Fire Insurance
Marine Cargo Insurance
Public Liability Insurance
Foreign Worker Medical Insurance (FWMI)
- How will I be compensated in the event of a loss?
Compensation will be on indemnity basis, i.e. claims are settled on the basis of new replacement value less depreciation, wear and tear. - What is the difference between insuring on Full Value and on First Loss Basis?
When you insure on Full Value, the insurance company will pay you for the loss suffered but not exceeding the full value. If the sum insured is inadequate, Average will apply, i.e. you will have to bear a proportionate share of the loss. When you insure on First Loss Basis, the insurance company will pay you for the loss suffered but not exceeding the first loss sum insured. If your loss, unfortunately, is more than the first loss sum insured, then you cannot claim the excess amount. Average does not apply. - How do I decide whether to insure on Full Value or on First Loss Basis?
The decision will depend on the nature of your goods. If there is a likelihood that all the goods can be stolen at any one time, then it is advisable to insure on Full Value. However, if this is most unlikely, then you should insure on First Loss Basis, the amount of which depends on your estimate of how much is likely to be stolen at any one time. - In the middle of the night, thieves entered into my premises with a duplicate key and stole my goods. Can I make a claim?
No, you cannot. In order to claim, there must be either forcible entry into or exit from the premises. - Thieves broke the window panes and grills to gain entry into my premises but luckily an alarm was raised and the thieves escaped without stealing anything. Can I claim for damage to the window panes and grills?
Yes, you can. The insurance company will pay for the repair or replacement of the window panes and grills.
- Can I buy a Consequential Loss Policy if I do not have a Fire Insurance Policy?
No, you cannot as a Consequential Loss Policy contains a Material Damage Proviso which states that a claim must be admitted in the Fire Policy before the loss in the Consequential Loss Policy is payable. - Is it therefore necessary that the cover in the Consequential Loss Policy must be the same as that in the Fire Insurance Policy?
Yes, the perils insured under the Consequential Loss Policy should be the same as those in the Fire Insurance Policy. - In arriving at the Gross Profit to be insured, what are Uninsured Working Expenses and why must I deduct such expenses from the Gross Profit?
Uninsured Working Expenses are specified working expenses which are variable, i.e. they increase or decrease correspondingly with increase or decrease in turnover. Examples are packing materials, freight, carriage charges and marine insurance. You must deduct such charges from the Gross Profit because they will not be incurred during the period of interruption to your business. - If I am starting a new company how do I insure the Gross Profit if I do not know what that the amount is?
You can either make a projection of the Gross Profit or alternatively you can insure the standing charges plus the estimated net profit. - What are standing charges?
Standing charges are fixed expenses which you will have to incur regardless of your turnover and which you must continue to incur even after a loss/damage. Examples of standing charges are rent, property tax, telephone bills, property and vehicle insurance, interest and directors’ fees. - If my company is making a loss, can I still buy a Consequential Loss Policy?
Yes, you can. You can still insure the Gross Profit or alternatively you can insure only the standing charges. - How can I insure wages?
Normally following a fire, you may not need to retain all the workers, e.g. daily rated employees who can be laid off. However, you may also wish to retain those monthly paid employees or those employees who are critical to your operations. You can include the wages of these workers in the Gross Profit (i.e. you do not list them as Uninsured Working Expenses). Alternatively, you can insure Wages/Payroll separately from Gross Profit. - Must the indemnity period necessarily be 12 months?
No, it can be more or less than 12 months, depending on the nature of the business and how quickly the business can revert to normal in the event of the business being totally destroyed. Hence you can insure for as short as 3 months to as long as 36 months. - If the indemnity is shorter or longer than 12 months, what will be the sum insured for Gross Profit?
For periods less than 12 months, the sum insured will be the 12 months Gross Profit. However, for periods longer than 12 months, the sum insured will have to be increased proportionately. - My business could be adversely affected because of a loss occurring at my neighbour’s, supplier’s or customer’s premises. How do I protect my gross profit against such events happening?
The policy can be extended to include such events as well as other events on the payment of additional premium. The common extensions are:
- Specified Suppliers’ Premises
- Unspecified Suppliers’ Premises
- Specified Customers’ Premises
- Denial of Access
- Public Utilities
- Infectious or Contagious Diseases, Murder, Suicide, Pest, Food or Drink Poisoning, or Defective Sanitary Arrangements
- There are two ways of calculating the sum insured when I am insuring my property – Indemnity Basis and Reinstatement Value Basis. How would I know which basis to use?
Stock and merchandise are insured on Indemnity Basis and all property other than stock and merchandise, e.g. building, plant & machinery, furniture, fixtures, fittings and the like, are insured on Reinstatement Value Basis. - If I insure a value higher than that required for Indemnity Basis or Reinstatement Value Basis, how would I be indemnified in the event of a loss?
On Indemnity Basis, the insurance company will try to return you back to the position before the loss, i.e. put you in the position as if you had never suffered a loss. In other words, the insurance company will settle the claim on the basis of new replacement value less depreciation, wear and tear. On Reinstatement Value Basis, however, the insurance company will settle the claim without deduction for depreciation, wear and tear. Therefore if you have over insured, you will not be paid the higher amount that you have insured. - In that case, why should I over insure? I might as well under insure.
It is always better to over insure than to under insure. This is because the policy is subject to the Average Condition, which means that if the sum insured is not adequate, you will have to bear a proportion of the loss. It is also advisable that the sum insured should take into account any inflation. - My stock fluctuates from month to month. How do I know which amount to insure?
You can insure your stock on declaration basis. - How do I insure my stock on declaration basis and what are the advantages?
The sum insured selected by you should represent the highest amount of stock that you are most likely to have at a particular point of time. For example during the festive season you are likely to carry more stock than usual. You therefore select the highest stock level during this period as the sum insured.
The insurance company will charge you a provisional premium based on 75% of the rate. At the end of each month you will have to declare the highest stock level for that month. At the end of the insurance period, the insurance company will total the stock for the 12 months and arrive at the average stock for that particular period of insurance. The actual premium is then charged on this. If this exceeds the provisional premium, you are required to pay an additional premium. However, if this is the reverse, the insurance company will make a refund to you, subject to a maximum of 50% of the provisional premium.
- What are the types of marine cargo policies that are suitable for shipments of cargo by sea, air or land conveyance, including sending by post or by courier?
There are 3 types of marine cargo policies available. They are Open Policy, Annual Policy and Single Policy. Any one of these policies can cover shipment by sea, air or land conveyance. - What is an Open Policy?
An Open Policy is suitable for merchants who have regular imports and exports of goods and merchandizes worldwide. The features of an Open Policy are:- It is a permanent policy and there is no need to renew it.
- It covers all consignments made by you within the scope of the Policy and you are required to declare all these consignments to EQ Insurance
- It specifies the basis of valuation, the rates agreed with you and the maximum sum insured for any one consignment.
- You have to declare each and every shipment, usually on a monthly basis. For each monthly declaration, a certificate of insurance will be issued and a premium charged based on the agreed rates.
- What is an Annual Policy?
If you want to avoid the hassle of making declarations, then an Annual Policy is another option. An Annual Policy is similar to an Open Policy but its features are:- It is issued for a period of time, usually twelve months and has to be renewed on its expiry.
- It insures all shipments made by you within the scope of cover of the Policy.
- At the inception of the Policy, you declare to us the estimated annual turnover for the Policy period and pay a minimum deposit premium.
- At the end of the Policy period, you have to declare to us the actual value of shipments made during the Policy period. The actual premium is calculated based on the rate agreed at inception and you will have to pay the additional premium, if any. The additional premium is the difference between the actual premium and the minimum deposit premium. If the actual premium is lower than the minimum deposit premium, you will not be entitled to any refund in premium.
- What is a Single Policy?
A single policy is suitable if your shipments are infrequent or as and when you require such a policy. A separate policy is issued for each and every shipment made and for each shipment a premium is charged. - What is a Marine Cover Note?
A Marine Cover Note is suitable where you need to import a particular consignment but you do not know exactly the shipment date. It is valid for a limited period, usually three months. As soon as a shipment is made within this period, you have to declare this shipment. A separate policy will be issued on this shipment and a premium paid based on the rate agreed at the inception of the Marine Cover Note. - What happens if there is double insurance?
Under the marine cargo insurance, the claimant can claim under one of the 2 insurance policies. It is then up to the insurer who has paid the claim to recover a proportion of his outlay from the other insurer. - How often is a General Average Declared?
Not very often. The incidence of General Average is more frequent with older or poorly maintained vessels. - Can the insured abandon the cargo in the event of a claim?
No. An insured remains the owner of the cargo and must act responsibly. - How long does the insured have to make a claim?
Some policies impose time limits - others do not. As a general rule, the longer it takes to claim, the more difficult it is to prove that the loss occurred within the policy period. In addition there is a duty on the insured to preserve subrogation rights against third parties. Notices have to be filed within the strict time limits as spelt out in the bill of lading and airway bill. - What happens if there is a change in the voyage or change in the vessel?
The insured will need to refer to the policy wordings to be certain. As a general rule, changes of this kind are held covered. If there is a significant change in the risk, an additional premium may be payable.
- A visitor comes to my premises, slips on the wet floor and injures himself. Will my public liability policy respond if he engages a solicitor to sue my company?
The insurance company will assist you to handle the claim including the engagement of a solicitor if need be. - A customer sends his machine to my company for repair and my workman, whilst carrying it to the store, negligently drops and damages it. Will my public liability policy respond if the customer sues my company?
No, it will not. The public liability policy excludes loss of or damage to property whilst in the charge or under the control of the Insured. - A customer visits my company and later complains of food poisoning arising from the consumption of food and beverage at my premises. Will the Public Liability Policy respond to such nature of claim?
Yes, it will if the food or beverage is served for consumption on your premises. - There could be occasions when the company’s directors, executives or employees travel overseas for business. Will they be covered under the Public Liability Policy?
The territorial limits under the Policy are restricted only to Singapore. You will have to extend the territorial limits under the Policy and pay an additional premium, if required. However, the Policy will be subject to Singapore jurisdiction.
Foreign Worker Medical Insurance (FWMI)
- Why do I need to purchase medical insurance for my foreign worker?
Since 1st January 2008, subsidies on hospital bills for foreigners have been removed. With the revision, Ministry of Manpower (MOM) mandates for all employers to purchase a minimum medical insurance of S$5,000 for their foreign workers during their stay in Singapore. And with effect from 1st January 2010, MOM announced that the minimum insurance coverage has been increased from S$5,000 to S$15,000 for foreign workers (Work Permits & S Pass holders). With the increased in the benefit, it will help to reduce employer’s exposure to large bills. - What are the benefits under our FWMI plan?
- All pre-existing illness are covered up to S$15,000
- No waiting period of 12 months
- Policy can be administered on a headcount basis for group size of more than 20 workers
- A 4-tier premium refund policy for addition and deletion of workers
- Faster claims processing
- Do I need to update MOM on my medical insurance?
- Yes. All employers need to furnish the medical insurance details for their Work Permit and S Pass holders via Work Permit Online (WPOL).
You are required to furnish the following information:- Name of Insurer: EQ Insurance
- Insurance Policy Number:
- Insurance Policy Commencement Date:
- Insurance Policy Expiry Date:
For more information, you may visit MOM’s website at www.mom.gov.sg or contact MOM's hotline directly at: Tel: (65) 6438 5122 - MOM allows same policy no. for registration of additional workers. If you encounter any errors in online registration, you may print the screen shot, indicating the error message and fax to MOM at 65320795.
- Yes. All employers need to furnish the medical insurance details for their Work Permit and S Pass holders via Work Permit Online (WPOL).
- Can I backdate the policy commencement date?
No, backdating is not allowed. - Does the EQ FWMI plan guarantee renewability?
Renewability is not guaranteed, subject to claims experience. The premium rate may also change upon renewal. - How are the premiums charged / refunded if an employee joins or leave the employment of the company?
If the group size is 20 and below, the Policy shall be administered on a “named” basis. Full particulars showing the insured worker’s (i) name, (ii) WP/SP No and (iii) effective date of cover or date of termination of cover shall be provided in writing within 1 month of such addition/deletion and we shall charge or refund the premium as follows.
Period of Cover Short-Period Premium Charged 3 months and below 40% of Annual Premium 6 months and below 60% of Annual Premium 9 months and below 80% of Annual Premium More than 9 months 100% of Annual Premium
If the group size is more than 20, the Policy shall be administered on a “headcount (unnamed) basis” with a list of all insured workers lodged with us at inception. New workers will be automatically covered subject to a quarterly declaration. Headcount adjustments, based on average, will be done at the end of each quarter of the policy period. We will charge or refund the premium based on the above short-period rate.
No refund of premium will be granted if there is a claim submitted by the terminated worker. - How do I submit the claims for the hospital bill?
You will have to settle the bill with the hospital first. Thereafter, submit the following documents to EQ Insurance for reimbursement:- A copy of work permit
- Original and Final Settled Hospital Bill
- Inpatient Discharge Summary (for government hospitals only if patient is warded)
- EQ Insurance – FWMI claim form for Hospital Claims is to be fully completed.