Recently, we have seen an increasing number of injury claims arising from winter sports. Common injuries include fractures, ACL and meniscus injuries, and sprained arms and legs. In more serious situations, customers have required repatriation services provided by our emergency service providers to transfer them back to Hong Kong for further examination and treatment. As safety is of the utmost importance, customers should take all reasonable precautions before embarking on their trip.

First of all, customers should ensure that their travel insurance plan includes coverage of Amateur Dangerous Sports. Nowadays, most travel insurances provide protection for Amateur Dangerous Sports despite their varied coverage. With MSIG’s travel insurance plans, the Amateur Dangerous Sports Extension includes hot-air ballooning, scuba diving to a depth not greater than 30 metres below sea-level, winter sports, water skiing, rafting, sailing, windsurfing, bungee jumping and horseriding. Customers should pay careful attention as to whether the planned activity is covered by their travel policies. Most policies, including those of MSIG, do not cover sports activities of a professional nature or if income can be earned through them while some policies may carry height or depth restrictions for a particular sports activity.

In addition, customers should stay alert to the geographical and weather conditions of the location where the sports activities take place to avoid being trapped or injured by natural disasters such as avalanches.

To conclude, customers are advised to take out travel insurance policies most suitable to their needs. Our policyholders can bring along our purchase confirmation SMS which includes the contact numbers of the emergency services hotline during the trip. If an accident should occur, clients should stay calm and seek advice and assistance from the emergency assistance services provider.

Learn more about our insurance plans:
iTravel Plus (Single Trip)
iTravel Plus (Annual)

Mr. Chan drove his wife to the supermarket last Sunday. When Mrs. Chan opened the door to get out of the car, the door accidentally hit a child who was running nearby. The child was sent to hospital and stayed there for two days. His mother made a claim against Mrs. Chan. Can the “Third Party Legal Liabilities” section of Mr. Chan’s private motor car insurance policy cover the claim from the child’s mother?

According to the “Third Party Legal Liabilities” section of private motor car insurance policy, the insurance company will “indemnify the Insured and/or any Insured Driver in or getting into or out of the Motor Car against all sums including claimant’s costs and expenses which the Insured and/or such Insured Driver and/or such other person shall become legally liable to pay and other costs and expenses incurred …in respect of (i) death or bodily injury to any person; and/or (ii) damage to property …”

Therefore, the insurance company will indemnify Mr. Chan against any costs and expenses incurred in the above-mentioned accident against third party. 

Some people may think that the Third Party Legal Liabilities section of motor insurance will only provide cover for vehicles moving on the road. In fact, as long as the loss circumstances fulfil the conditions listed out in the policy, the insurance company will honour the claim according to the terms and conditions.

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Private Motor Car

When a customer’s car is damaged in a road traffic accident, is he/she free to choose which workshop will repair the vehicle?

Under normal circumstances, most motor insurers will not intervene in a customer’s decision as to which workshop will repair the damaged vehicle. Car dealer workshops normally charge more, with the customer having to pay more for depreciation as a result. Non-dealer workshops normally charge less, resulting in a lower cost of depreciation.

On some occasions, however, in an effort to protect the interests of both the customer and insurer, the insurer may exercise the right of veto given under the policy and object to the customer’s chosen workshop. A case in point is where the practices/procedures of the workshop deviate significantly from accepted market standards. For example, some workshops ask for a deposit before starting work. This is unacceptable to most insurers because it could jeopardise the interests of both the customer and insurer in the event the workshop fails to complete the repair work for reasons such as bankruptcy. 

In some cases, the workshop may not provide a full quotation before starting work and reserve the right to charge more even after the repair work has started. Motor insurers are reluctant to accept unreasonable demands of this nature as they are not in the best interests of either the customer or the insurer. In circumstances like these, the insurer will exercise the right of veto under the policy.

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Private Motor Car

While driving his car last year, Mr. Wong was involved in a road traffic accident. As the third party car owner did not ask for compensation, and only some paint on Mr. Wong's car was scratched, he did not report the accident to his insurance company as his own car damage was not covered by his motor third party liability insurance.

However, Mr. Wong eventually received a third party property claim one year later. Mr. Wong then reported the claim to his insurance company, but his claim was rejected. Why did Mr. Wong's insurance company reject his claim?

Most motor insurance policies in the market have a provision stating that the insured has to give written notice with full particulars to their insurance company immediately after an accident. As Mr. Wong did not inform his insurance company right after the accident happened last year, it prejudiced the insurance company's right to collect loss circumstances and evidence for defending claims from a third party. For this reason, insurance companies may reject late-reported claims. 

In Hong Kong, it is common for car owners to take out only motor third party liability insurance, especially for second-hand cars. Knowing that their insurance will not cover damage to their own cars, car owners may overlook informing their insurance company of minor traffic accidents especially when the third party does not immediately ask for compensation. Customers are advised to inform their insurance company immediately after any road traffic accident, regardless of the seriousness of the accident, to secure better insurance protection.

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Private Motor Car

Private motor car ownership in Hong Kong is very common. Today, car parks are an essential part of car ownership irrespective of whether the vehicles are used for travel to and from work or for leisure purposes as owners need somewhere to leave their cars when they are not in use. In the unfortunate event that a vehicle is stolen from a car park, is the car park operator liable for the car owner’s loss?

Generally speaking, car owners have to take responsibility for looking after their own vehicles and property at all times. Most car parks display their regulations at the entrance to the car park to ensure that they are exempt from liability for any loss, damage or injury suffered by any person or caused to any property within their car park. But, by displaying their regulations, do car park operators really exempt themselves from these liabilities? Based on a number of well-documented legal precedents, Courts will take the following factors into consideration before reaching their decision:

1. Do the regulations stand the test of reasonableness?
2. Have any similar car thefts occurred in the operator’s car park(s) in the past?
3. Do the car park operators have any security measures in place to prevent car theft?
4. Has the car owner taken reasonable care to safeguard his/her vehicle?

As there are often many areas of potential disagreement in these situations, car owners’ claims against car park operators may need to be settled in Court. Customers are therefore advised to take out comprehensive private motor vehicle insurance to provide cover for third party property damage and bodily injury as well as loss of or damage to their own vehicle.

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Private Motor Car

Mr. Lee's car was slightly damaged in a motor accident and sent to a garage for repair work including new parts. He then reported the accident to his insurance company and requested to claim for the cost of repairs. A surveyor negotiated the cost of repairs with the garage, and a total repair cost of HK$50,000 was arrived at.

As stated in the policy schedule, Mr. Lee had to pay HK$10,000 excess on his claim. Mr. Lee was also advised by his insurance company that he had to pay an additional HK$5,000 for depreciation. Why did Mr. Lee have to pay for depreciation?

Normally, cars are insured based on their market value. Motor policies also exclude liability in respect of depreciation and wear and tear. Because garages usually use new parts to replace/repair damaged items, depreciation is usually applied to the claim.

As Mr. Lee's car was manufactured 3 years ago, depreciation was applied to his claim at his cost. 

Since depreciation is a factor affecting the value of a motor car, customers are advised to review the market value of their vehicles annually to ensure the sum insured accurately reflects its current value.

Learn more about our insurance plans:
Private Motor Car

Mr. Cheng was driving along Clear Water Bay Road and accidentally crashed into the side mirror of Mr. Wong’s car. As the collision only caused minor damage, they both agreed not to report it to the police and decided on private settlement. Mr. Wong estimated the damage and requested HK$1,000 as compensation. Thinking that his motor insurance policy had a HK$1,500 excess, and as he wanted to keep his No Claims Bonus (NCB), Mr. Cheng agreed and settled immediately.
 
Three months later, Mr. Cheng received a claim from Mr. Wong’s motor insurance company. It stated that Mr. Wong’s back was hurt in the previous motor collision with Mr. Cheng’s car. Mr. Wong had spent HK$20,000 on his medical treatment and wanted to claim from Mr. Cheng. Mr. Cheng then filed the claim with his motor insurance company. However, his insurance company declined his claim as the earlier motor collision had never been reported. 
 
Why did Mr. Cheng’s motor insurance company decline his claim? 
 
According to the motor insurance policy, Mr. Cheng was obliged to report every single motoring incident immediately. Late reporting to an insurance company can affect its right to collect evidence to defend its claim, and, because of this, insurance companies have the right to reject late-reported claims.

To enjoy comprehensive protection, customers should immediately report all motoring incidents to their insurance company regardless of the seriousness of the damage.

Learn more about our insurance plans:
Private Motor Car

According to Hong Kong’s legislation, every motor vehicle owner has to take out Motor insurance in order to protect third parties. Motor insurance can be classified mainly as Third Party Only cover and Comprehensive cover. 

Comprehensive motor insurance covers own damage, third party liability and personal accident. Own damage refers to damage or loss of the motor car itself. Third party legal liability refers to the cost and expenses that the insured is legally liable to pay in the event of damaging the property, or causing death or bodily injury to a third party. Personal accident covers medical expenses incurred in an accident sustained by the insured.

A well-rounded comprehensive motor insurance policy will include vehicle assistance services which provide 24-hour emergency roadside assistance, 24-hour free towing service, alternative vehicle rental arrangements and a 24-hour general advisory service.

Under general circumstances, comprehensive motor insurance provides coverage for accidents that happen within the Hong Kong SAR. Any accidental loss, damage or liability caused outside Hong Kong will generally be excluded. Hence, if the insured person has to travel to Mainland China by private motor vehicle, extended coverage for own damage could be arranged on request. The insured should also purchase third party liability insurance in line with regulations in China to enjoy full cover.

Learn more about our insurance plans:
Private Motor Car

When you rent a motor vehicle overseas, the total rental price usually includes a Collision Damage Waiver (CDW) element. This means that if the vehicle is accidentally damaged by you or a third party, you will not be liable to pay the full cost of the repair. However, you will often be liable for a portion of the repair cost – this is usually called the ‘Collision Damage Waiver Excess’.

Many rental companies will offer the opportunity to reduce or eliminate the excess in the form of additional insurance from them. But that can be expensive, and may not be necessary!

One of the many benefits of iTravel Plus is the standard inclusion of ‘Rental Vehicle Excess’ coverage. In the event of loss of or damage to the vehicle, MSIG will reimburse the excess amount payable to the rental company up to HK$5,000. That’s a great benefit that could save you money.

However, to make sure you are properly protected, it is important to understand the circumstances in which a claim on iTravel Plus will be considered, and those in which it will not.

1. The limit of compensation is HK$5,000.
2. Coverage only includes accidental damage, collision, or theft. Compensation will not be paid for other charges. Towing fee will not be covered when the rental vehicle is not damaged. Any charges incurred for the loss of use of the rental vehicle or similar charges imposed by the rental company will not be covered, including but not limited to Non- Operation Charge (NOC).
3. The vehicle must be driven by the named insured driver, and he/she must have a valid driving licence.
4. The rental vehicle must be under the operation and control of the insured at the time of loss.
5. The vehicle must be rented from a licensed rental company using a valid Car Rental Agreement.
6. The rented vehicle must be of a type where a valid driving licence is required to drive it (i.e. scooters etc. that do not require a driving licence will not be insured).
7. The rented vehicle may not be used to commit an illegal or unlawful act.
8. The rented vehicle may not be used for racing or other contests.

So the next time you go on an overseas trip, the “Rental Vehicle Excess” benefit could save you a lot of headache, and some money too!

Learn more about our insurance plans:
iTravel Plus (Single Trip)
iTravel Plus (Annual)

Under a traditional comprehensive office insurance policy, cover for office contents, money, liabilities and EC are included. There is a section that not many customers are fully aware of, which covers for loss of gross profit. In fact, we believe this section offers a good option to customers to recover its gross profit when business is interrupted. However, attention is needed when taking out this section of this policy to prevent future dispute.

Important points to note:

1. Customers are required to submit information in 3 areas for working out premiums:
   1. Anticipated gross profit
   2. Maximum indemnity period
   3. Sum insured required
2. The amount of anticipated gross profit should be made on the basis of the actual gross profit in the last 12 months at least. You are not encouraged to estimate with gut feel.
3. There were cases in which customers mistakenly anticipated gross profit based on the maximum indemnity period which was less than 12 months. These customers were found to be under-insured to cover against the actual loss.

When our claims department receives a claim submission for the loss of gross profit, it is essential to determine whether the underlying factors for such business interruption event would fall within the scope of the policy. Compensation will be made based on the reported losses, the customer's previous sales record, the sum insured as well as the indemnity period.

Any underestimation of the amount of anticipated gross profit may cause the customer to suffer all or part of the losses.

Learn more about our insurance plans:
SME Protection Bundle
Office Insurance
Shop Insurance
Business Insurance