On 20-21 February 2020, The Malaysian Insurance Institute (MII) held a successful and effective two-day CECR workshop attended by representatives from insurance companies, brokers and highway operators. The workshop was conducted smoothly despite health and safety concerns due to the COVID-19 outbreak.

On Day One before the commencement of the workshop, a short video clip entitled, “How to prepare for the Corona Virus risk exposure?” was played to create awareness on the risk and exposures relating to the global pandemic as recently announced by the World Health Organisation (WHO). CECR Workshop Course Leader, Ir Pooba Mahalingam then welcomed all participants and thanked the MII team for their cooperation and efforts in making the workshop a successful event despite the global health challenges.

Ir Pooba kicked off the event outlining the objectives of the workshop, explained the interactive mode of the program and the learning outcomes. The case study concept was also highlighted as the workshop focused on actual cases and how to handle such cases, instead of the “conventional policy structure and coverage learning.” Ir Pooba also introduced the three guest speakers for the workshop, namely, Mr Bill Addington (an expatriate geotechnical specialist), Mr Vidhyanathan Samuel (an experienced underwriter) and Mr Sean Chao (a senior insurance broker) who are all experts in their respective technical fields.

Ir Pooba then presented some key features of the CECR policy and shared interesting examples on how the “CECR policy will trigger”. He also identified several key contentious issues that may appear in typical risks. Being a former loss adjuster, Ir Pooba used his previous experience with some interesting claims as case studies to explain the application of the policy and respective clauses. During the workshop, participants and facilitators actively discussed the policy coverage and how it is worded. Participants of the workshop found the case study sharing method used in the workshop as a practical way to understand the interpretation and application of the policy.

After the morning tea break, the first guest speaker, Mr Vidhyanathan Samuel shared some deep underwriting perspectives relating to the CECR policy. He gave specific points on dimensions, measurements of risks and Probable Maximum Loss (PML) evaluations. He also raised concerns about ensuring that the proposal form be adequately filled-in to assist underwriters to complete their task.
Later the same afternoon, participants of the workshop and the workshop course leader went for a site visit at PLUS highway Traffic Monitoring Center located at Subang Perdana. The delegation was welcomed by the team from PLUS, led by the Head of Risk Management, En Allan Zulnikman. The PLUS team presented a power point slide show, video clip and explained how the highway network is maintained and operated.

The presentation included points on slope monitoring, bridge inspection, drainage clearing and pavement rehabilitation and how PLUS manages the main North-South expressway which runs across the peninsula, Seremban PD Highway, Kulim Butterworth Expressway and a section of the East Coast Highway. The presentation was followed by a Q & A session which raised pertinent points relating to the current insurance coverage and claims experience as arranged for this highway risk. There were some interesting discussion on the previous Gua Tempurung and Bukit Lanjan slope incidents which were both insurance claims lodged by PLUS. Both these incidents attracted media and public attention more than a decade ago. The current maintenance and inspection regime implemented by PLUS together with the Authority requirements ensure that such a recurrence will not take place.

On Day Two of the CECR workshop, Ir Pooba summarised the highlights of the site visit to PLUS, with regards to the CECR policy coverage. Ir Pooba then ventured into particular clauses and endorsement relevant to the CECR policy. He also got the participants involved in a group discussion to explore insurance coverage “assignment” for a water pipeline crossing at a causeway. The use of various technical issues and risk examples “to bring home the message” Kept the session interesting.

The first guest speaker who presented on Day Two, Mr Bill Addington, shared some of his expertise as a Geotechnical consultant dealing with operational risks in Malaysia and the region. He highlighted that engineering maintenance is essential to ensure a safe and sound facility. In his presentation, he also shared some cases involving slopes and bridges that require regular inspection and repair attention.
The presentation by Sean Chao, a senior broker was conducted via live steaming to safeguard against exposure to the COVID-19. In the live streaming session, Sean deliberated on the CECR policy with a theme on “Owner’s perspective, supported by the Broker.” This session was equally interesting, and the participants raised some challenging questions during Q&A.
The workshop ended with a group photo session.