SYNOPSIS

When a property is damaged by fire, the insurer pays the claims and this makes the insurer one of the major stakeholder of the property. Insurance company is a business entity like all other businesses profit is critical to continue its operations. In this respect any risk submitted to an insurer it will go through the process of underwriting by an Underwriter in the office. How does the Underwriter get sufficient information to evaluate the risk, decision would be one of the followings: accept / decline / co-share the risk.

Insurance industry employs Risk Surveyor and they gather information in a prescribed format for the Underwriter to evaluate the risk. One of the key areas which the Risk Surveyor would visit is the fire protection systems installed in the building. Engineering consultants work is evaluated and shortcomings if any could be forwarded to the Property Owner as a recommendation.

Engineering consultants should be mindful of these shortcomings as this could lead to Professional negligence. Whilst it is not common that Property Owners take such drastic steps but this Should not be assumed it would not happen in future.  In the event of a large claim, the insurer can exercise the right of subrogation from the owner to sue the 3rd parties who cause the losses. Professional negligence of not designing the protection system in accordance to Malaysian Standards can deemed as negligence!


BIODATA OF SPEAKER

Ir. Gary Lim, a Fellow of IEM is a Mechanical Engineer graduated from University of Canterbury, New Zealand in 1978. He worked in the manufacturing sector for over 20 years then joined the insurance industry as the Risk Engineer and retired as the Risk Manager of the MNC insurance company. Since his retirement, he has been conducting courses on concepts and the design of Fire Engineering and Plumbing Engineering, SWV systems at all the IEM major branches in Malaysia.

Gary shares his knowledge of insurance company underwriting principles to enable Engineers appreciates the role of Risk Engineers of insurer hence Engineers get a better perspective of the relationship between insurance and fire protection systems. This is one area where many engineers failed to appreciate the role of risk engineers.