An In-Depth Understanding of Machinery Breakdown (MB) & Machinery Breakdown Loss of Profits (MBLOP) Insurance

Recommended for

  • Executives and supervisors handling engineering insurance
  • Those who have completed the Introduction Course in Engineering Insurance (Machinery Breakdown & Loss of Profit)
  • Non insurance personnel whose work requires an understanding or practical knowledge of the subject

18 & 19 March 2024
9.00 a.m. - 5.00 p.m.

Method: In-Person Training
CPD Hours: 14
Registration Closing Date:
13 March 2024

About the trainer:

PETER YONG WENG SING
Chartered Insurer, ACII, AMII

Peter Yong has more than 30 years of working experience in the Insurance industry in all major aspects of underwriting, claims, reinsurance, risk surveys, technical audit and business development. He specializes in property and engineering insurance. Although most of his working life was spent in general insurance companies, Peter also has a 3-year experience serving the professional reinsurance company as the Head of Facultative Reinsurance.

He was an active working member under several Expert Committee Groups for Miscellaneous Accident, Engineering Task Force, Fire Sub-Committee and MNRB Special Ratings in PIAM (General Insurance Association of Malaysia). Currently, Peter Yong is the Head of Technical Support in a leading foreign insurance company.
Course Outline
Day 1
  • Overview of the market for Engineering (Machinery Breakdown & MB Loss of Profits Insurance)
  • Boiler and Pressure vessel
    » Cover as per Munich Re wording
    » Policy condition, underwriting provision, Definition & Exclusions
    » Extension of policy cover
    » Type of boilers
    » For safe working and maintenance of boiler and pressure vessel
    » Type of maintenance
    » Underwriting and rating considerations
  • Machinery Breakdown
    » Cover as per Munich Re wording
    » Clauses/ extensions
    » Types of items suitable for MB insurance
    » Risk assessment
    » Risk management
    » Rating
    » Good features that attract discounts and poor feature that attract loading
    » Type of Maintenance
    » What are the diagnostic checks?
    » How to insure? Sum insured on New Replacement Value and reason
    » What is Indemnity and application of Average
    » Precautionary note despite having available maintenance in place
    » An ideal risk for MB Insurance
  • MB Loss of Profit
    » Need for MB LOP
    » Sum Insured, Indemnity Period
    » What is the consideration to insure MB LOP
    » Cover as per Munich Re wording
    » Exclusion, Underwriting provisions
    » Subject matter of insurance
    » Extensions/ Clauses
    » Precautionary note with regard to MB LOP
    » Risk assessment on MB LOP
  • Electronic Equipment Insurance
    » Cover as per Munich Re wording
    » 4 Sections of coverage i.e. Material damage, External data media, Increase in cost of work and Loss of Profit / revenue
    » Special Exclusion of the 4 Sections and General Exclusion
    » Extension/ Clauses and policy conditions
Day 2
  • Deterioration of Stocks
    » Cover as per Munich Re wording
    » Exclusions, underwriting provisions and policy conditions
    » Extension/ Clauses
    » Type of Cold chamber
    » Application of warranty
    » Risk assessment
    » Underwriting consideration
    » Rating (criteria on type of cold store, location and type of stocks)
    » Loss minimization and Loss Prevention measures
  • Storage Tank
    » Cover as per Munich Re wording
    » Exclusions, underwriting provisions and policy conditions
    » Extension/Clauses »Basis of Sum Insured
    » Basis of Indemnification
    » Items suitable for insurance
  • Civil Engineering Completed Risk
    » General feature of CECR and its application
    » Item suitable for insurance and those excluded items
    » Cover as per Munich Re wording
    » Exclusions, underwriting provisions and policy conditions
    » Extension/Clauses
    » Underwriting consideration and documents required
    » Inspection / Survey/ Risk assessment
    » Rating
  • Engineering risk survey
    » Objective of Engineering risk survey
    » Benefit of conducting survey
    » Value-add to underwriters and to Intermediaries
    » Survey details / documents
    » Post loss survey following a loss
    » Inspection / risk management / loss prevention
    » Eyes and Ears to underwriter / Intermediaries
    » Engineering survey report
  • Proposal form and questionnaire – Boiler & Pressure Vessel, Machinery Breakdown, MB Loss of Profit, EEI
    » Machine observe a Bath tub curve (burn in failure, useful life and wear out failure)
    » Causes of loss (product fault, manufacturer’s fault, operational fault and handling, human error and other failures)
  • Root cause of loss on machine and components
    » Definition
    » Reactive Maintenance
    » Periodic or schedule maintenance
    » Preventive maintenance by condition monitoring
    » Short and long term benefits of proactive maintenance strategies involving root cause analysis
    » Most common causes of service failures and breakdown
    » Statistics on losses
    » What are the sub-standard acts that causes failures or breakdowns
    » Basic causes related to work and personal factors
  • Case studies

Contact Info

The Malaysian Insurance Institute 197701004772 (35445-H),
Level 6, Bangunan AICB,
No. 10 Jalan Dato’ Onn,
50480 Kuala Lumpur, Malaysia 

Tel : +603 2712 8882

Email : customercare@mii.org.my

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