It is common for companies to transport goods from one place to another. The process usually involves different parties, such as forwarders, airline companies and shipping agents. Professional advice on insurance cover is needed to ensure that the transportation goes smoothly, and to minimise the risk of any transit loss. This is particularly important when fragile and valuable items are insured. You may find the following tips useful.

1. Suitable and secure packaging
   If you are going to transport valuable and delicate products, such as musical instruments (e.g. pianos) or electronic equipment (e.g. computers), you should ensure that the goods are protected by suitable and sufficient forms of packing in compliance with standard export requirements. In general, wooden crate boxes provide better protection than cartons or cardboard boxes. It is also strongly advised to have the cargoes containerised. In case the goods are vulnerable to changes in surrounding moisture levels, you should make sure that adequate silica gel is placed inside the packing to absorb excessive moisture.
    
2. Reliable and reputable carrier/forwarder
   While some companies often mainly look at the amount of fees charged by their forwarders/carriers to determine whether they will utilise their service, our advice is that it is equally, if not more, important that the forwarders/carriers must be able to provide reliable and quality service to you. The reason is two-fold. Firstly, reliable forwarders/carriers with good service quality often mean a high degree of skill and workmanship on the part of their staff and workers in handling the goods of your customers. This can minimise the risks of transit damage or loss. Secondly, in the unfortunate event that the goods are damaged and a claim arises, insurers, following claim settlement, will pursue recovery against the liable parties who are usually the carriers/forwarders in question. Reputable forwarders/carriers often have appropriate liability insurance covers to meet subrogated claims from cargo insurers. If insurers' claim outlays can be fully/partially recovered from third parties, this can improve your customers' loss ratio which is certainly to their advantage in future reviews of insurance premium rates.

Learn more about our insurance plans:
Cargo
Pleasure Craft

Mr. Wong took out a hospital cash insurance policy with ABC Insurance Company in March 2018. He slipped at home and was admitted to hospital at 9.00pm on 5 May 2018. He was discharged at 10.00am the next day after treatment. He then filed a claim with his insurance company.

Question:
Can Mr. Wong successfully claim for the hospital cash benefit?

Answer:
Mr. Wong was confined to the hospital for 13 hours. According to the Hospital Cash Insurance policy, “the Insured Person must be confined for a continuous uninterrupted period of at least 24 hours upon the advice of, and under the regular care and attendance of, a physician. The confinement should be in a hospital for which the hospital makes a charge for room and board (unless the charge is waived)”. Although Mr. Wong fulfilled the latter part of the abovementioned clause: to pay for the room and board charges, he failed to fulfil the former part: to stay for a continuous period of 24 hours. Therefore, Mr. Wong was not entitled to the hospital cash benefit.

Customers sometimes misunderstand that hospital cash benefit will be paid when they are admitted to hospital no matter how long they are confined. Customers are advised to read the terms and conditions of the policy carefully or contact their insurance representative for clarification of their own policies.

Learn more about our insurance plans:
CriticalCare 1.0
MediSure Plus
HospitalCare

Question:
What is the difference between a valued policy and an unvalued policy?

Answer:
A valued policy is a policy in which the insurer agrees in advance on the value of the subject matter insured and it shall be conclusively taken as the value of the subject matter when it is damaged.
An unvalued policy is a policy which does not specify the value of the subject matter insured, but is subject to the limit of the sum insured. It leaves the insurable value to be ascertained by specified means in advance.

Question:
When will we issue a valued policy and an unvalued policy?

Answer:
Usually, cargo policy may either be valued or unvalued. It depends on the nature of trading and the type of commodity. Policies that cover fine arts, antiques, jewellery or personal property will usually be treated as valued policy as they tend to involve sentimental value.

If you wish to insure the branding value, assessment of a masterpiece, item with historical value or even personal items, since the policy is valued, you should ensure that the sum insured represents the new replacement value at destination. Based on this declared value, you will have full protection from the insurer.

There may be some cases in which customers escalate the value of the item to get a higher sum insured for a minimum premium. Please be reminded that in case of claims, indemnity may not be in the form of cash; the insurance company can also reimburse the product to you.

Learn more about our insurance plans:
Cargo
Pleasure Craft

Mary took out medical insurance in early April and she was admitted to hospital in mid April with acute gastroenteritis. After being discharged from hospital, she filed a claim with her insurance company for hospitalisation expenses. However, the insurance company declined her claim as the policy was still in its waiting period.

So, what is “waiting period”?

Most insurance companies have introduced a “waiting period” in their medical insurance policies in order to avoid any claim arising from a disease contracted before the application of policy - which is beyond the original underwriting risk.

Diseases or symptoms occurring during the “waiting period” are excluded from medical insurance policies. However, if the insured is hospitalised due to bodily injury during the “waiting period”, as it is not contracted before the policy becomes effective, it is not confined by the “waiting period”. The insured is therefore entitled to any corresponding claims according to the policy.

Most medical insurance policies have a 30-day “waiting period”. The “waiting period” for specific diseases may vary from 6 to 12 months and customers should read the terms and conditions carefully before taking the policy. If there are any queries, customers should contact their insurance agent or insurance company immediately.

The Hospital Benefit and Optional Outpatient Benefit of the MSIG MediSure Plus policy do not have any “waiting period”. The “waiting period” for Optional Critical Illness Benefit is 60 days and for Optional Maternity Benefit, it is 12 months.

Learn more about our insurance plans:
CriticalCare 1.0
MediSure Plus
HospitalCare

Mr. Wong is a manager in an estate management company, and he has just purchased a flat on an instalment payment scheme. Mrs. Wong is a full-time housewife taking care of their 3-year old son while housework is handled by their domestic helper. Knowing that he is the only breadwinner of the family, Mr. Wong has planned well for their future and has purchased many kinds of family-related insurance products.

Unfortunately, two weeks ago, Mr. Wong was diagnosed with coronary heart disease with 60% stenosis of a major artery supplying blood to the heart. The attending doctor advised Mr. Wong to have the operation as soon as possible. The operation fee is around HK$50,000, with the estimated total cost of hospitalisation at around HK$120,000.

Mr. Wong calculated that his existing medical insurance would cover his total hospitalisation bill and that he could be discharged without paying a dollar. Unfortunately, Mr. Wong soon discovered that he needed to settle his bill in full before claiming for reimbursement and became extremely worried that he did not have the HK$120,000 to hand.

Having medical insurance does not necessarily mean having instant money for medical treatment!

Most of the individual medical insurance policies in the market require the insured to pay their hospital bills first and then submit a claim for reimbursement. It is important to check whether Guarantee of Payment for Hospitalisation is included in a medical insurance policy.

As a comprehensive and caring medical insurance product, MediSure Plus provides worldwide Guarantee of Payment for Hospitalisation for complete peace of mind. If admission to any of the private hospitals in Hong Kong for operation or treatment is required, you just need to notify us beforehand within office hours so that we can have time to arrange the Guarantee of Payment for you. Once your request is approved, we will settle all eligible medical expenses directly with the hospital for you.

If you are unable to obtain our Guarantee of Payment beforehand due to admission and discharge out of office hours, please settle your bills with the hospital first and submit your claim for reimbursement. Usually, claims will be settled within 7 working days upon receipt of all necessary documents and information.

Learn more about our insurance plans:
CriticalCare 1.0
MediSure Plus
HospitalCare

The Consumer Council received 164 complaints relating to medical insurance in 2006 and 2007, of which 29 complaints (17%) were related to policy renewal, such as decline of renewal, mid-term termination of policy and increased premiums.

The insured may not be aware that most health insurance policies in the market are on a yearly renewable basis up to a certain age. An annually renewable policy is subject to insurance market conditions and the insurer's capacity to provide cover. For yearly renewable policies with a poor claims history, some insurance companies may not renew the policy, or may apply premium loading or impose restrictions based on the insured's health condition.

However, MSIG's MediSure Plus offers Lifelong Guaranteed Renewal. Policies will be renewed regardless of the insured's age, his/her health condition or the number of claims that have been made. Adjustments to premium or policy terms will only be made on the company portfolio basis.

To assure lifelong health insurance protection, you are advised to make sure that the health insurance policy provides lifelong cover with guaranteed renewal.

MSIG's MediSure Plus provides lifelong cover with guaranteed renewal for a lifetime's peace of mind. Customers only need to pay the required premium for renewal and the policy will be renewed automatically.

Learn more about our insurance plans:
CriticalCare 1.0
MediSure Plus
HospitalCare

Shipment of goods usually involves different means of transportation and transshipment is common. However, insurers sometimes may not be well informed of the transshipment's details. Let's examine the case below:

Scenario:
Sender Mr. A shipped goods from Hong Kong to Italy by air (CIF). Mr. A was informed that the goods would first be sent to the UK and then to Italy by air transit again. Unfortunately, the flight was delayed in the UK. To make up for the lost time, the carrier therefore changed the transportation means to land transit without informing Mr. A. However, the goods were damaged during the journey to Italy by truck. Since the transportation means was changed, would the loss be covered by the insurance policy against the perils of ICC (Air)?

Answer:
If Mr. A insured with MSIG, MSIG will honour the claim under the condition that Mr. A is able to prove that he was not notified by the carrier of the change in transportation means under our investigation.

Tips:

• Disclose details if any transshipment is involved when booking the flight
• Employ a good forwarder/carrier who will give prompt notice to shipper in case of any incidental changes
• Inform insurer immediately after receiving notice from carrier to ensure that your goods are still covered by the policy

By providing more information on the transshipment details, the chances of experiencing delays in delivery or loss of goods can be minimised.

Learn more about our insurance plans:
Cargo
Pleasure Craft

With the booming economy in China, the number of private cars imported from foreign countries has been increasing. In general, there are two common methods of shipping private cars from one country to another: placing the private car inside a container or through a Roll on Roll off (RORO) Vessel.

First method: the private car will be placed inside a container. Ropes will be fastened on a fixed cradle on the ground to fix the position of the car. The private car will not be discharged until the container has been transported to the consignee's discharge port.

Second method: the private car will be driven into a Roll on Roll off (RORO) Vessel. The vessel is designed with side, and/or rear and/or bow entrances, all having a “let down” ramp which enables vehicles to drive into and out of the vessel.

For both methods, after arriving at the consignee's discharge port, a "T licence-plate" (if in Hong Kong) will be put on the private car and it will be driven by an authorised driver to the consignee's warehouse. If, unfortunately, the car with a "T licence-plate" meets with an accident on the way to the vessel or the warehouse, will the loss or damage be covered by marine insurance?

Unfortunately, if there is a car accident when an authorised driver is driving the car with a "T licence-plate" on the way to the vessel or the warehouse, as long as the car is being driven on the road, motor insurance instead of marine insurance will cover the loss or damage arising out of the car accident. This is because marine insurance covers loss or damage arising from maritime perils during "transport". The word "transport" does not include the insured property being used as a carrying conveyance.

Learn more about our insurance plans:
Cargo
Pleasure Craft

Is import duty insurable?" This is quite a frequently asked question from intermediaries. The answer is "Yes".

In some countries, tariffs are imposed on imported goods. For example, Argentina has imposed a 10% tariff on almost all capital goods while Australia has imposed a 24-34% tariff on textile, clothing, and footwear products. It is suggested to remind your customers to take the import duty into account when taking out insurance for export goods. The duty amount should be clearly stated in the insurance policy. However, the duty is warranted free of claims in the following circumstances:

1. In the event of total loss of the cargo concerned or total loss/partial loss of the carrying vessel or craft before arrival at destination unless duty has been prepaid.
2. In the event of General Average
3. In respect of duty waived by customs authorities at destination on shipment arriving damaged by a peril covered under the policy
4. In cases where no duty or landing charges are paid

Learn more about our insurance plans:
(MCS Note to FW: Anchor link below to lead to other insurance plans)
Cargo
Pleasure Craft

The sentence “...... including items held in trust ...... for which the Assured would be responsible.” is commonly seen in a cargo open policy. Are “goods in trust” automatically covered in a cargo policy in the absence of insurable interest?“

Let's use a simple example to study the marine cover:

Factory A takes out an Annual cover with Insurer X in its own name. The policy covers the interests of Factory A also “including items held in trust ...... for which the Assured would be responsible”. Insurer X charges an insurance premium based on the estimated annual turnover which Factory A declared to Insurer X.

One day, Factory A receives a request from Factory B who wishes Factory A to help to deliver one lot of cargo. Factory A agrees without obtaining prior agreement from Insurer X. Unfortunately, an accident occurs and the cargo is lost or damaged. Are the goods belonging to Factory B covered under Factory A's policy ?

The answer is “Not Covered”. The reason is that at the beginning of negotiation, Factory A only declared their “OWN turnover” to Insurer X and, in the absence of consideration/cargo premium for this extra risk, there will be no contract between Factory B and Insurer X.

How can we provide comprehensive coverage for you?

1. Advise us prior to commencement of voyage and obtain acceptance; or 
2. Declare deliveries of this kind on a monthly basis even if the Declaration Clause is not required. These frequent declarations imply that you have auto cover from the insurer; or 
3. Estimate a separate turnover of this kind of “goods in trust” to the insurer if you frequently help others or you regularly ship cargoes on behalf of others.

Learn more about our insurance plans:
Cargo
Pleasure Craft