Grabcar, Uber Drivers Will Have To Buy Commercial Insurance, Says Transport Ministry

Grabcar, Uber Drivers Will Have To Buy Commercial Insurance, Says Transport Ministry

KUALA LUMPUR: The government will make it compulsory for drivers of ride-sharing services such as Uber and GrabCar to buy commercial insurance just like taxi operators in order to operate legally.

Deputy Transport Minister Datuk Azinuz Kaprawi said a full announcement on the issue will be made soon.

He said the Land Public Transport Commission (SPAD) is still in the midst of discussions to regulate the industry.

"We want to regulate the industry so that these vehicles are safe for people to ride in. We also want to legalise the industry as the number of phone apps will continue to grow.

"Malaysians find these apps very convenient in terms of securing public transport," he said.

Last October, Aziz had said Malaysia might legallise such ride-sharing services if the operators fulfil certain conditions set by the government.

He had said that the government was locked in a series of final discussions with the companies, and an official announcement on the matter was expected soon.

The discussions involve not just Uber, GrabCar and the Transport Ministry but also SPAD to come up with best solutions.

Among the topics discussed so far included making it compulsory for Uber and GrabCar vehicles to undergo periodic computerised vehicle inspections by Puspakom.

A survey by SPAD found that more than 76 per cent of respondents said they were more comfortable using app-based services such as Uber or GrabCar.

More than 86 per cent had claimed that conventional taxis overcharged or did not use meters.

Almost 45,000 respondents took part in the survey initiated by SPAD, titled “General Perception: Taxi Services in Malaysia.”

The majority of the respondents were aged 21 to 30.

-New Straits Times

Protect Your Building from the Cold

Arctic temperatures can have a dramatic effect on your building — and your livelihood. Regular maintenance and a winter weather plan can help you avoid any negative impact.

WHAT CAN HAPPEN

Winter storms frequently cause electrical power failure, which in turn can disable your heating system. If this happens, water-filled piping (such as sprinklers, domestic water pipes and heating, ventilation and air conditioning systems) may freeze and rupture. It is important to assess the potential for this hazard.

• Inspect all safety shutoff valves and cutoff switches on combustion equipment such as rooftop units, boilers and ovens, including water main shutoffs and main electrical service disconnects.
• Have qualified contractors or staff properly inspect heating, air-handling units and space heaters on at least an annual basis. Assure that space heaters are monitored for fire safety.
• Review the location and storage of flammable liquids such as propane, gasoline and diesel fuel. Should your sprinkler system freeze and require that it be disabled, it is recommended to reduce this storage to a minimum to minimize the amount of fuel in a fire.

Without proper winter weather preparation, your business could experience property damage — roof collapse, pipe rupture and more.

HOW TO REDUCE YOUR RISK

There are some strategies you can implement to protect your facility and minimize the impact of severe weather on your business:

• Maintain building temperatures above 55 degrees. Plan for maintenance personnel to properly monitor buildings during cold snaps, making more frequent visits to buildings or areas of buildings not normally occupied.
• Inspect all areas along the inside and outside perimeters of the building to ensure they are sealed and there are no drafty areas.
• Maintain roofs in good condition, including repairing leaks, securing flashing and clearing debris from the roof, roof drains and overflow scuppers.
• Check that downspouts are secured to buildings and clear of leaves and debris. If they iced over during a previous winter, consider properly installing heat trace to prevent major icicles and dams.
• Make sure all building openings are weather-tight so they do not admit cold air.
• Consider how you’ll address removing snow accumulation on your roof. If you or a contractor use a snow blower, make sure the height of the snow blower shave plate is adjusted higher as to not damage the underlying roofing material.

Gusting winds, heavy snow and bitter temperatures can create catastrophic property losses and havoc in your life, but a little preparation can prevent losses, saving you time and money.

Business Tips: Controlling Risk For Property Owners

-Cincinnati Ins. Co (Kevin Oleckniche)

Losses that occur on property you own can affect your livelihood and that of your tenants. They also can affect your insurance rates and eligibility. Without the proper controls in place, you could be saddled with the responsibility of owing for injury or damages that you did not cause.

RECOGNIZE THE RISKS

When you understand the risks you face as a property owner and lessor, you can better manage them. Consider these scenarios:
Natural perils – A tornado sweeps through town, damaging your building and your tenants’ contents.
Fire – A grease fire starts in a restaurant at one end of your building. Before it is extinguished, fire damages multiple units and tenant contents.
Third-party injury or illness – A patron slips and falls in the parking lot, spraining her ankle.
Change in occupancy – A restaurant replaces a retail store in one of your units. As a property owner, you want to determine if the current sprinkler system is able to handle the demands of a restaurant.
Change in tenant operations – A retail craft store expands its operations to include pottery making. With this expansion, your tenant adds kilns to heat-treat ceramic projects.
Vacancy – Your unoccupied building is vandalized, resulting in damaged property.

REVIEW THE RESPONSIBILITIES

A well-designed lease agreement can assist owners in transferring responsibility for payment due to bodily injury or property damage to the legally responsible party.  Consult with legal counsel when evaluating your current lease or other formal contract.  When consulting with your attorney, consider whether your agreement:

-is signed by all tenants
-contains appropriate anti-subrogation wording and indemnification–hold harmless provisions favorable to you and acceptable under your state’s laws
-authorizes you to develop, change and enforce rules and regulations for the premises
-defines which areas you control and which the tenant controls
-defines the maintenance obligations of all parties while specifying the scope of the operations and the steps you will take if the tenant defaults on these obligations
-grants you the right to inspect the leased premises for conformance with the lease provisions concerning maintenance and to point out to the tenant any obvious hazards
-requires the tenant to obtain permission before performing any building alterations
-contains provisions regarding use of hazardous substances, dispensing of liquor and other activities that increase the risk of loss
-requires service contractors who come on your premises to provide certificates of insurance verifying adequate limits of insurance and appropriate state licenses, where applicable
-requires tenants to obtain specified liability insurance on behalf of the owner, with you listed as an additional insured on a primary basis. Make sure you obtain proof that the tenant has acquired and maintains all required insurance.

Consult with legal counsel to familiarize yourself with state laws before you lease space to bars, restaurants or stores that sell liquor.
While it is your duty to live up to your obligations as a property owner, it is also wise to make your tenants take responsibility for their actions and premises upkeep.
Your local independent insurance agent is there to help you maneuver around the challenges you face as a property owner. Contact your agent whenever a new tenant moves into the building, a current tenant changes its operations or part of the building becomes vacant for 30 days.

Why your privately held business needs Directors & Officers Insurance

by Tom Kelly, Cincinnati Insurance Company

Every corporation relies on the guidance of its board of directors for success. Although lawsuits against larger, publicly traded companies receive the lion’s share of media attention, privately held corporations are also vulnerable to lawsuits by competitors, government agencies, creditors and employees. You can protect your hard-earned success by purchasing directors and officers insurance (D&O) coverage for your company.

Having directors and officers insurance coverage in place can help you attract the talent you need for your board. Directors or officers of privately held companies who do not insist that the company purchase D&O insurance are putting themselves, their spouses and their estates at financial risk. D&O insurance minimizes risk to their personal assets.
Not having D&O coverage can have a serious impact on a company’s viability. Even a financially sound business may have insufficient funds to defend officers and directors in the event of a lawsuit. A D&O policy will take care of defense costs and settlement, even if t
he company ends up in bankruptcy.
States impose statutory duties on corporate directors. D&O coverage protects the company and its directors from claims arising from alleged or actual failure to uphold those duties. Directors are under legal obligation to govern their corporation and carry out their responsibilities of office:

• in good faith
• in the best interest of the corporation
• with the care that an ordinary prudent person in a like position would exercise under similar circumstances

Similar duties are imposed on officers of a corporation who may or may not serve on the board. Both directors and officers share the duty to:

• grow the company by prudently managing the affairs of the business
• exercise due diligence that is standard for operating the business
• maintain loyalty to the corporation to avoid conflicts of interest
• obey the corporate charter and state corporate statutes

Policy limits and other factors can vary. Your legal advisers and local independent insurance agent can help you determine how much coverage you need. Premiums are based on the coverage limit requested and other factors such as type of business, financial strength, claims history and deductibles.
Additional coverages, such as employment practices liability, fiduciary liability and cyber liability insurance, may also be available to eligible companies for an additional premium.

Employment Practices Liability

A popular insurance text starts with, “The growth of federal and state legislation dealing with employment discrimination and sexual harassment, the changing legal views on wrongful termination, and the increasing tendency of aggrieved parties to turn to the courts for settlement of such disputes have caused insurers to specifically exclude coverage for such employment-related claims in the commercial general liability policy.”

To fill this gap, a number of insurers are offering employment practices liability (EPL) coverage as an endorsement to the commercial general liability policy or as a stand-alone policy. Independently developed by each company, the EPL coverage forms vary by company, however, most policies are similar in terms and conditions.

EPL policies are usually written on a claims-made basis, which means that for a claim to be covered, it must occur during the policy term. Extended reporting periods from one to three years can be added for an additional premium.

In addition to damages paid for judgments or settlements, the cost of defense is covered. However, it is usually paid from the limit of liability, not in addition to the limit of liability. Most EPL policies specifically cover back pay. Back pay is commonly awarded to successful claimants in discrimination and wrongful termination actions.

Typically, the definition of “insured” in an EPL policy includes the corporation, its directors and officers, its employees, and, in most policies, its former employees. Some policies limit the definition of “insured” to include only managerial employees.

The deductible for this coverage ranges from $1,000 to $250,000, depending on underwriting factors. One difference from other types of policies is that the EPL policy usually requires the insured to participate in losses exceeding the deductible. The amount that the insured contributes after the deductible has been satisfied is based on the “participation rate.” Participation rates are usually 5 to 10 percent, but can reach as high as 25 percent depending on underwriting factors.