General Questions

? Who can take the Contractor's All Risk Policy ?

The policy can be taken by the principal, contractor, or sub-contractor, jointly or separately.

? How to select the sum insured?

The sum insured selected under section I should represent total contract value including the estimated cost of labour charges and cost of materials but excluding profit. The cost of materials supplied by the principal is to be declared separately.
In case of long term contracts, there is bound to be escalation in prices. The basic policy will pay only as per the original cost and prices. However escalation clause can be opted for, under which escalation upto 50%, can be selected to take care of such increase in prices.
The sum insured under section II should represent the per accident limit (the maximum legal liability that may fall on the insured as a result of an accident in the insured's site). The limit per policy period should be fixed taking into account the maximum number of such accidents which can reasonably be expected to occur.

? What is Insurance ?

Insurance is a means of protection from financial loss. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. An entity which provides insurance is known as an insurer, insurance company, or insurance carrier.
A person or entity who buys insurance is known as an insured or policyholder. The insurance transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer's promise to compensate the insured in the event of a covered loss. The loss may or may not be financial, but it must be reducible to financial terms, and must involve something in which the insured has an insurable interest established by ownership, possession, or preexisting relationship.
The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated. The amount of money charged by the insurer to the insured for the coverage set forth in the insurance policy is called the premium. If the insured experiences a loss which is potentially covered by the insurance policy, the insured submits a claim to the insurer for processing by a claims adjuster.

? If i met with an accident, what is the procedure to get my claim?

Both parties have to visit the Traffic department to get the accident certificate, go to the Gulf Union Automotive Repair centre. Submit Traffic Certificate to Register a new claim after that relevant people will assist you to go further.

? Why do I need Insurance?

Insurance is a hedge against the occurrence of unforeseen incidents. Insurance products help you in not only mitigating risks but also helps you by providing a financial cushion against adverse financial burdens suffered.

? What is Premium?

Premium is the fixed amount of sum paid over the period by the insured to the insurance company to take the insurance policy and to complete the contract of insurance.

? What does General Insurance do for me?

Accidents... illness... fire... financial securities are the things you'd like to worry about any time. General Insurance provides you the much-needed protection against such unforeseen events. Unlike Life Insurance, General Insurance is not meant to offer returns but is a protection against contingencies. Under certain Acts of Parliament, some types of insurance like Motor Insurance and Public Liability Insurance have been made compulsory.

? How much Insurance do I need?

It is very important to have an adequate amount of coverage for each insurance policy. For any asset or property insurance, the value of the asset based on market value or reinstatement value should be taken into consideration before deciding Sum Insured. If the Sum Insured is not adequate, the percentage representing the uncovered portion of the asset is to be borne by the insured.

? What all can I get covered under insurance?

Almost everything that has a financial value in your life and has a probability of getting lost, stolen or damaged, can be covered through insurance. Property (both movable and immovable), vehicle, cash, household goods, health, dishonesty and also your liability towards others can be covered.

? What is Underwriting?

It is the consideration of material fact to asses the risk and to take the decision whether to accept the risk for an insurance contract and if so at what rate of premium.

? What is Reinsurance?

It is an arrangement by which insurance companies spread their risk with other underwriters or reinsurance companies called Reinsurance.

? What is deductible?

The amount, which the insured has to bear in all cases and this amount is first, deducted from the total assessed payable claims amount before determining insurance company's liability.

? Why should I fill up proposal form for buying Insurance?

Insurance is a contract between the insured and the insurer. The proposal form is the basis of the contract and it contains all the required information for the preparation of the policy which is a contract document.

? Why should one cover oneself immediately?

Accidents and mishaps can occur anytime and anywhere. It is important to identify the risks faced and insure oneself against these at the earliest.


? When can my cover begin?

You can apply for cover up to 30 days before you would like your policy to start (the inception date).
Once your application has been received, we will process the information you have provided us. If you have answered 'no' to all the medical questions, it can be processed immediately and a policy issued within 48 hours. If you have declared a medical history, your application will be assessed by our underwriting team, which usually takes up to 5 working days.
Once a policy has been issued and your first premium collected, you are covered as per the benefits of the plan that you have selected.

? Do I need to supply details of my medical history?

We appreciate that some medical conditions may have taken place some time ago and no longer require treatment. In such cases we will try to be as flexible as possible in our underwriting and not automatically exclude past medical conditions. For this reason, it is important that you provide as much information as possible when applying for cover so that we can properly evaluate your application.
At HealthCare International, we define a pre-existing condition as being an illness, injury or related medical condition, which within the last 5 years, you or any dependants included in your application have experienced symptoms or received treatment, medication, advice or investigation.
Any illness or condition occurring between the time of signing and submitting your application to us will also be considered a pre-existing medical condition.

? Who is eligible to apply for cover?

Almost anyone can purchase a HealthCare International medical policy. Our plans are tailored for expatriates with the only proviso being that you must be aged under 75 when first applying. Annual plans are renewable for whole of life.

? Are there any occupations that are not eligible to take our cover?

Yes – There are some professions perform dangerous activities or experience harsh environments, such as police, the armed forces and sports professionals that require underwriting evaluations and are subject to plan conditions and restrictions. For further information please contact us at

? Do I have a choice where my medical treatment is provided?

Members have complete choice where they have their treatment, and in the event of hospitalisation we will arrange for direct settlement with your provider – avoiding the need to pay any expenses yourself.
if you have selected the "Worldwide cover including USA" policy option, you can go for Non-emergency treatment.

? Does everyone in the same family have to have the same level of cover?

Yes – You and your dependents will be covered on the same plan with the same chosen excess and co-pay. An age-rated premium applies for each insured member.

? Is Pregnancy and Maternity care covered?

Yes – Once you have been with us for 12 months, both routine maternity and complications of pregnancy are covered on all but our Emergency+ and Short Term plans. We will pay 100% of reasonable and customary charges for inpatient and outpatient treatment, up to the specified plan limits.
You are covered for treatment of a medical condition that arises during the antenatal stages of pregnancy, or for complications that require a recognised obstetric procedure during childbirth. Cover is only provided for caesarean sections required on medical grounds. Elective caesareans and investigations into infertility are not covered.

? What is Well Child Care and what does it cover?

The benefit will pay for young children, up to the age of seven years, 100% reasonable and customary charges for the child to visit their physician, up to the specified limits of the Plus, Premium and Executive Plans.

? What happens if I don't pay my premiums on time?

It is important that your premiums are paid on time to ensure you have no interruption to your cover. Failure to pay your premiums on time will likely result in your claims being rejected, and/or your policy being cancelled.

? What happens when my policy is due for renewal?

You do not have to do anything, as your policy will renew automatically. We will however be contacting you prior to renewal to inform you of the premium for the upcoming year. We will also be telling you of any material changes to your policy and developments within our service proposition to you. We remain ready and able to assist you at any time in ensuring your plan option remains appropriate for your circumstances.
Should you not wish to renew your policy with us, we will require written notification from you 60 days prior to the renewal date.

? When can I change the details of my policy?

Changes to your benefit level can only be made at renewal and you will need to inform us within 30 days of your renewal date. Any waiting-periods will still have to be served.


? What does Motor Package Policy Cover?

This type of policy covers all the risks covered under Motor Liability policy plus loss or damage caused to the vehicle due to:
Accident, Fire, Explosion, Self Ignition, Lighting, Burglary, House Breaking, Theft, Riots & Strikes, Earthquakes, Flood, Typhoon, Hurricane, Storm, Cyclones, Malicious Acts, Transit by rail/road, air and waterways and also include Windshield Damage &towing charges.

? What is covered under Liability Only Policy?

Owners' liability towards Third Party Personal Injury and Property Damage.

? Is it mandatory to have insurance for plying vehicles on the public place?

As per the laws of Bahrain it is mandatory to have Motor Liability only Policy for covering Third Party.

? What are the policies available for covering the vehicles?

There are two policies: Motor Liability Only Policy and Motor Comprehensive Policy.

? What are documents required at the time of claim?

Copy of claim intimation given to insurer with CPR, Police Report, duly filled Claim Form, Driving License, Registration Certificate of Vehicle.

? What are the exclusions under Package Policy?

Damage caused due to:
Driver being under intoxication, Vehicle being driven by a person not holding an effective valid license, Damage to tires (unless the vehicle is damaged at the same time),Wear and tear and mechanical breakdown damages.

? What is No Claim Bonus?

It is a special discount given on premium for every claim-free year.

? Can the amount be paid directly to the repairer?

Yes –after the claim intimation, the company surveyor surveys the damages and submits a report to the company, based on which depending upon the age of the vehicle an Approved Garage is selected for repairs.
For vehicles which are upto 3 years old agency repairs are allowed. However vehicles which are more than 3 years old are repaired outside Agency but in approved garages.
If the claimant wishes to repair his more than 3 year Vehicle at the agency then he has to bear the depreciation for parts and labor as per schedule fixed by the BIA

? What is the amount I have to bear?

Compulsory excess, and depreciation wherever applicable.

? How can I lower my insurance costs?

To lower your premium, ask your insurance broker about the following:
increasing your deductible (i.e., your share of the cost of a claim) � by increasing the amount you are willing to pay, you will decrease your premium;
dropping collision coverage on an older car; bundling your car and home insurance;
installing an approved theft deterrent system in your vehicle;
buying a car with a lower-cost insurance rating.

? My car is 3 Years old. How many years can i get Comprehensive cover?

As per Gulf Union Insurance & Reinsurance Co. BSC (C) policy cover only 5 years, next year it goes to Silver Cover.

? I have no accident record and i am keeping comprehensive policy, will i get discount in my renewal?

Yes. As per Gulf Union Insurance & ReInsurance Co. BSC (C) policy, for comprehensive customers get our fixed discount on your premium when you renew.

? If i met with an accident, what is the procedure to get my claim?

Both party has to visit Traffic department to get the accident certificate, go to the Gulf Union Automotive Repair center. Submit Traffic Certificate to Register a new claim after that relevant people will assist you to go further.


? What is Marine (Cargo) Insurance?

The insurance of goods in transit from one place to another by any single mode or combined modes of sea, rail, road, air and inland waterways.

? What is covered under Marine (Hull) Insurance?

It covers loss/damage suffered to a ship and machinery of vessel.

? What types of risks are covered under Fire Policy?

Fire, Lightning, Explosion/Implosion, Aircraft Damage, Storm, Cyclone, Riot, Strike, Malicious Damage, Impact Damage, Subsidence, Land Slide, Missile Testing Operation, Bush Fire etc.

? What kind of properties can be covered under Standard Fire & Special Perils Policy?

Building, Machinery & Equipment, Furniture, fixture & fittings and Stocks.

? What are the insurance policies that cover property?

Insurance policies like Standard Fire & Special Perils Policy, Marine (Cargo), Marine (Hull), Engineering and Burglary Insurance policies cover various types of properties.

? Is there any policy available to cover the accompanied baggage during travel?

Travel Insurance or Baggage Insurance.

? Is there any comprehensive policy available for a shopkeeper?

Shopkeeper's Insurance Policy

? Which policy best suits to household?

Householder's Insurance Policy comprising of 10 sections that covers most of the risks faced by a household.

? What does Burglary Insurance cover?

It covers theft of property after actual forcible and violent entry or exit.

? What types of cover are available for industries and Civil Construction?

Two broad groups of Engineering polices are available for industries
1. Construction Phase
Contractor's All Risk Insurance, Erection All Risk Insurance, Marine-Cum-Erection Insurance, Contracts Works Insurance and Delay in start-up Insurance.
2. Operational Phase
Machinery Breakdown Insurance, Boiler & Pressure Plant Insurance, Machinery Loss of Profit Insurance, Contractor's Plant and Machinery Insurance, Civil Engineering Completed Risk, Electronic Equipment and Deterioration of Stock Insurance.


? Types of reinsurance1. Treaty and 2. Facultative

The two basic types of reinsurance arrangements are Treaty and Facultative reinsurance.
In Treaty reinsurance, the ceding company has a contractual obligation to cede, and the reinsurer to accept, a specified portion of a type or category of risks insured by the ceding company. Reinsurers producing treaties, do not separately evaluate each of the individual risks assumed under the treaty. Rather, after reviewing the ceding company’s underwriting practices, they base their decision on the coverage decisions made originally by the the ceding company's policy writers.
Such dependence subjects reinsurers in general to the possibility that the ceding companies have not adequately evaluated the risks to be reinsured and, therefore, that the premiums ceded in connection therewith may not adequately compensate the reinsurer for the risk assumed. Therefore the reinsurer’s evaluation of the ceding company’s risk management and underwriting practices, as well as its claims settlement practices and procedures, will usually impact the pricing of the treaty.
In Facultative reinsurance, the ceding company cedes and the reinsurer assumes all or part of the risk covered by a single specific insurance policy. Facultative reinsurance is negotiated separately for each insurance contract reinsured. Facultative reinsurance is normally purchased by ceding companies for individual risks not covered by their reinsurance treaties, for amounts in excess of the monetary limits of their reinsurance treaties and for unusual risks. Underwriting expenses and, in particular, personnel costs, are higher than premiums written on facultative business, because each risk is individually underwritten and administered. The ability to separately evaluate each risk reinsured, however, means that the underwriter is more likely to price the contract to accurately reflect the risks involved.

? Brokered and Direct reinsurance

Reinsurance can be written through professional reinsurance brokers or directly from ceding companies. A ceding company’s selection of the market will be influenced by its perception of the advantages and disadvantages involved in the reinsurance coverage being placed. For example, broker coverages usually involve a number of participating reinsurers that have been assembled by a broker, each assuming a specified portion of the risk being reinsured. A ceding company may find it easier to arrange such coverage in a difficult underwriting environment where risk capacity is constrained and reinsurers are seeking to limit their risk exposure. By contrast, direct coverage is usually structured by ceding companies directly with one or a limited number of reinsurers. The relative amount of brokered and direct business written by the Group’s subsidiaries varies according to local market practice.

? Reinsurance is a very specific sector in the sphere of insurance.

The principles of reinsurance : Reinsurance is a contract under which a company, the reinsurer, agrees to indemnify an insurance company, the ceding company, against all or part of the primary insurance risks underwritten by the ceding company under one or more insurance contracts.
Reinsurance differs from insurance primarily in terms of its inherent complexity, which is linked to its broader range of activities and international nature. Reinsurance can provide a ceding company with several benefits, including a reduction in net liability on individual risks and catastrophe protection from large or multiple losses. Reinsurance also provides ceding companies with the necessary capacity to increase their underwriting capabilities, in terms of both the number and size of risks. Reinsurance does not, however, discharge the ceding company from its liability to policyholders. Reinsurers themselves may feel the need to transfer some of the risks involved to other reinsurers (known as retrocessionnaires).

? Retrocession

Reinsurers typically purchase reinsurance to cover their own risk exposure or to increase their capacity. Reinsurance of a reinsurer’s business is called a retrocession. Reinsurance companies cede risks under retrocession agreements to other reinsurers, known as retrocessionnaires, for reasons similar to those that cause primary insurers to purchase reinsurance: to reduce net liability on individual risks, protect against catastrophic losses and obtain additional underwriting capacity.

? Types 2 Proportional and Non-Proportional reinsurance

Both Treaty and Facultative reinsurance can be underwritten on a proportional (or quota share) basis, a non-proportional (excess of loss) basis or on a stop-loss basis.
With respect to Proportional or quota share reinsurance, the reinsurer, in return for a predetermined portion or share of the insurance premium charged by the ceding company, indemnifies the ceding company against the same predetermined portion or share of the losses of the ceding company under the covered insurance contract or contracts. In the case of reinsurance written on a non-proportional, excess of loss or excess of stop-loss basis, the reinsurer indemnifies the ceding company against all or a specified portion of losses, on a claim by claim basis or with respect to a specific event or line of business, in excess of a specified amount, known as the ceding company’s retention or reinsurer’s attachment point, and up to a negotiated reinsurance treaty limit.
Although the losses under a quota share reinsurance treaty are greater in number than under an excess of loss contract, it is generally simpler to predict these losses on a quota share basis and the terms and conditions of the contract can be drafted to limit the total coverage offered under the contract. A quota share reinsurance treaty does not, therefore, necessarily require that a reinsurance company assume greater risk exposure than on an excess of loss contract. In addition, the predictability of the loss experience may better enable underwriters and actuaries to price such business accurately in light of the risk assumed, thereby reducing the volatility of results.
Excess of loss reinsurance is often written in layers. One or a group of reinsurers accepts the risk just above the ceding company’s retention up to a specified amount, at which point another reinsurer or a group of reinsurers accepts the excess liability up to a higher specified amount or such liability reverts to the ceding company. The reinsurer taking on the risk just above the ceding company’s retention layer is said to write working layer or low layer excess of loss reinsurance. A loss that reaches just beyond the ceding company’s retention will create a loss for the lower layer reinsurer, but not for the reinsurers on the higher layers. Loss activity in lower layer reinsurance tends to be more predictable than that in higher layers due to a greater historical frequency, and therefore, like quota share reinsurance, enables underwriters and actuaries to more accurately price the underlying risks involved.
Premiums payable by the ceding company to a reinsurer for excess of loss reinsurance are not directly proportional to the premiums that the ceding company receives, because the reinsurer does not assume a directly proportionate risk. By contrast, premiums paid by the ceding company to the reinsurer under a quota share contract are strictly proportional to the premiums received by the ceding company, and correspond to its share of the risk coverage. In addition, in a quota share reinsurance treaty, the reinsurer generally pays the ceding company a ceding commission. The ceding commission is usually based on the cost for the ceding company of acquiring the business being reinsured (commissions, premium taxes, assessments and miscellaneous administrative expense) and may also include a profit ratio.

? Reinsurance provides three essential functions

It offers the direct insurer greater security for its equity and solvency, as well as stable results when unusual and major events occur, by covering the direct insurer above certain ceilings or against accumulated individual commitments;
It allows insurers to increase their available capacity - i.e. the maximum amount they can insure for a given loss or category of losses, by enabling them to underwrite policies covering a larger number of risks, or larger risks, without excessively raising their administrative costs and their need to cover their solvency margin and, therefore, their shareholders' equity;
It makes substantial liquid assets available to insurers in the event of exceptional losses.
In addition, reinsurers also provide advisory services to ceding companies by:
defining their reinsurance needs and devising the most effective reinsurance program to better plan their capital needs and solvency margin;
supplying a wide array of support services, specifically in terms of technical training, organisation, accounting and information technology;
providing expertise in certain highly specialised areas such as the analysis of complex risks and risk pricing;
enabling ceding companies to build up their business even if they are temporarily under-capitalised, particularly in order to launch new products requiring heavy investment.