FINANCIAL INSTITUTIONS INSURANCE

1

• FINANCIAL INSTITUTIONS INSURANCE
• üÆܲÜê²Î²Ü вêî²îàôÂÚàôÜܺðÆ ²ä²Ðàì²ðàôÂÚàôÜ

2
Agenda/Ìñ³Çñ

• 1. BANKERS BLANKET BOND (BBB)
  
  
  
  вزä²ðö²Î
  ²ÜβÚÆÜ Ì²ÌÎàôÚ (ÐÌ)
• 2. COMPUTER CRIME (CC)
  вزβðâ²ÚÆÜ
  вÜò²àðÌàôÂÚàôÜ (ÐÐ)
• 3. PROFESSIONAL INDEMNITY (PI)
  زêܲÆî²Î²Ü
  ä²î²êʲܲîìàôÂÚàôÜ (Øä)
• 4. DIRECTORS AND OFFICERS INSURANCE (DO)
  îÜúðºÜܺðÆ ºì
  Ժβì²ðܺðÆ ä²î²êʲܲîìàôÂÚ²Ü ²ä²Ðàì²ðàôÂÚàôÜ
  (îÔ)
• 5. THE MARKET
  
  
• ÞàôβÜ

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Covered Risks/²å³Ñáí³ñíáÕ éÇëÏñ

• What policies can you purchase ?
• ÆÝãåÇëÇ ³å³Ñáí³ñáõÃÛ³Ý å³Ûٳݳññ áõù ϳñáÕ
• ù ÝÉ
• Bankers Blanket Bond (BBB)
• вزä²ðö²Î ²ÜβÚÆÜ Ì²ÌÎàôÚ (ÐÌ)
• Electronic Computer Crime (ECCP)
• ¾ÈºÎîðàܲÚÆÜ - вزβðâ²ÚÆÜ Ð²Üò²àðÌàôÂÚàôÜ
  (¾ÐÐ)
• Professional Indemnity(PI)
• زêܲÆî²Î²Ü ä²î²êʲܲîìàôÂÚàôÜ (Øä)
• Directors Officers (DO)
• îÜúðºÜܺðÆ ºì Ժβì²ðܺðÆ ä²î²êʲܲîìàôÂÚ²Ü
  ²ä²Ðàì²ðàôÂÚàôÜ (îÔ)

4
What is BBB and why you need it

• Q What is Bankers Blanket Bond Insurance ?Ð -
  ÆÝã ÐÌ-Á
• A BBB Insurance attempts to provide, under one
  insurance contract, protection for money,
  negotiable's, funds and other valuable property
  against CRIME RISKS such as theft (by employees
  or other parties) and robbery. ä ÐÌ
  ³å³Ñáí³ñáõÃÛáõÝÁ ÙÏ å³Ûٳݳñáí Ýñϳ۳óÝáõÙ
  ýÇݳÝë³Ï³Ý, á˳ÝóáõÙ³ÛÇÝ, ýáݹ³ÛÇÝ ³ÛÉ
  ³ñÅù³íáñ áõÛùÇ å³ßïå³ÝáõÃÛáõÝ Ð²Üò²àðÌàôÂÚ²Ü
  èÆêκðÆò, ÇÝãåÇëÇù Ý áÕáõÃÛáõÝÁ (³ß˳ï³ÏÇóÝñÇ
  ϳ٠³ÛÉ ³ÝÓ³Ýó ÏáÕÙÇó) ÏáÕáåáõïÁ
• Q Why do you need BBB Insurance ? Ð - ÆÝãÇ
  ѳٳñ ÐÌ ³å³Ñáí³ñáõÃÛáõÝÁ
• A Crime is a global problem and is often an
  unfortunate by-product of social advancement.
  Crime is on the increase everywhere in the world
  and the sad fact is that many Banks/Financial
  Institutions have only become alerted to this as
  a result of a crime loss. Because of todays
  economic climate there has been a surge in armed
  bank raids, fraudulent transfer of funds by
  employees, theft of cash by employees, raids on
  cash in transit and increased document fraud. ä -
  гÝó³ÝùÁ Éáµ³É ËݹÇñ ѳ³Ë ëáódzɳϳÝ
  ½³ñ³óÙ³Ý ÏáÕÙݳÏÇ ³ñ¹ÛáõÝù гÝó³ÝùÝ ³ß˳ñÑáõÙ
  ½³ñ³óáõÙ ³åñáõÙ, ïËáõñ ³ëïÝ ³ÛÝ , áñ ß³ï
  µ³ÝÏñ ýÇݳÝë³Ï³Ý ѳëï³ïáõÃÛáõÝÝñ Ùï³ÑáíáõÙ
  Ý ¹ñ³ Ù³ëÇÝ ÙdzÛÝ Ñ³Ýó³ÝùÇ å³ï³éáí ïáõÅÉáõó
  Ñïá
• ²Ûëûñí³ ïÝïë³Ï³Ý ÙÃÝáÉáñïÇ å³ï³éáí ïÕÇ
  áõÝóÉ µ³ÝÏñÇ íñ³ ½ÇÝí³Í ѳñÓ³ÏáõÙÝñÇ,
  µ³ÝϳÛÇÝ ³ß˳ïáÕÝñÇ ÏáÕÙÇó ýáݹñÇ ³Ý³ñ¹³ñ
  á˳ÝóÙ³Ý Ï³ÝËÇÏ ¹ñ³ÙÇ áÕáõÃÛ³Ý, ³Ý³å³ñѳÛÇÝ
  ѳñÓ³ÏáõÙÝñÇ ³ëï³ÃÕÃñÇ ÏÕÍÙ³Ý ÝϳïÉÇ ³
• EVERY BANK AND FINANCIAL INSTITUTION IS
  VULNERABLE. Úàõð²ø²ÜâÚàôð ²ÜÎ ºì üÆܲÜê²Î²Ü
  вêî²îàôÂÚàôÜ ÊàòºÈÆ ¾

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Climate for Fraud / ÎÕÍÙ³ÝÁ Ýå³ëïáÕ Ñ³Ý³Ù³ÝùÝñ

• Acquisition, Merger or Disposals ÒéùµñáõÙÝñ,
  ÙdzÓáõÉáõ٠ϳ٠Õϳí³ñáõÙ
• Management Changes γé³í³ñÙ³Ý
  ááËáõÃÛáõÝÝñ
• Changing Technology îËÝáÉádzÛÇ
  ááËáõÃÛáõÝ
• Moving Locations
  îÕ³áËáõÙÝñ
• Launching a new service
• Üáñ ͳé³ÛáõÃÛ³Ý ëïÕÍáõÙ
• Understaffing
  ²ß˳ïáõÅÇ ³Ýµ³í³ñ³ñáõÃÛáõÝ

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Why commit the Crime? / ÆÝãáõ ϳï³ñÉ
ѳÝó³áñÍáõÃÛáõÝ
Why? ÆÜâàô
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Who commits the crimes?/ àíùñ Ý Ï³ï³ñáõÙ
ѳÝó³áñÍáõÃÛáõÝ
8
How does it happen?/ ÆÝãåë ¹³ å³ï³ÑáõÙ

• Employee embezzlement / ²ß˳ï³ÏÇóÝñÇ
  ë³Ï³Ý³óáõÙ
• Hold ups / гñÓ³ÏáõÙÝñ
• Fraudulent invoices / ÎÕÍ Ñ³ßÇíÝñ
• Transit of payroll / ì³ñÓ³ïñáõÃÛ³Ý áõß³óáõÙ
• Fraudulent purchasing of stock and other trading
  
• operations / ²åñ³ÝùÝñÇ ÏÕÍ ÝáõÙ ³ÛÉ
  ³éïñ³Ï³Ý
• áñÍáÕáõÃÛáõÝÝñ
• Expenses / ̳Ëëñ
• Loans / ì³ñÏñ

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Main Insuring Clauses / ÐÇÙÝ³Ï³Ý ²å³Ñáí³ñáõÃÛ³Ý
¹ñáõÛÃÝñ

• Fidelity/ʳñ¹³ËáõÃÛáõÝ
• On Premises/î³ñ³ÍùÝñ
• In Transit/öá˳¹ñáõÙ
• Forgery/Securities/ÎÕÍáõÙ/²ñÅÃÕÃñ
• Counterfeit Currency/ÎÕÍ ¹ñ³Ù
• Damage to Offices and Contents/ìݳë
  ñ³ëÝÛ³ÏÝñÇÝ å³ñáõݳÏáõÃÛ³ÝÁ

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Fidelity/ ʳñ¹³ËáõÃÛáõÝ

• Covers loss due to fraudulent/dishonest acts of
  an employee (with the intent to make improper
  personal gain) whether committed alone or in
  collusion with others.
• ²ß˳ï³ÏóÇ ÙdzÛÝ³Ï Ï³Ù áõñÇßÝñÇ Ñï ÙdzëÇÝ
  ϳï³ñ³Í ³Ý³½ÝÇí áñÍáÕáõÃÛáõÝÝñÇ Ñï³Ýùáí
  ³é³ç³ó³Í ÏáñëïÇ Í³ÍÏáõÛà (ë³Ï³Ý ß³Ñ Ñï³åݹÉáõ
  å³ñ³³ÛáõÙ)

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On Premises/ î³ñ³ÍùÝñ

• Loss of or Damage to Valuable Property through
  theft, burglary, robbery, false pretence,
  hold-up, mysterious disappearance or damage by
  any cause whilst on / ²ñÅù³íáñ áõÛùÇ Ïáñáõëï
  ϳ٠íݳë áÕáõÃÛ³Ý, ÏáÕáåáõïÇ, ÏÕͳíáñáõÃÛ³Ý,
  ѳñÓ³ÏÙ³Ý, ³Ýµ³ó³ïñÉÇ ³ÝÑï³óÙ³Ý Ï³Ù áñ ³ÛÉ
  å³ï³éáí, à ¹åùÁ ïÕÇ áõÝóÉ
• The Assureds premises/²å³Ñáí³ñí³ÍÇ ï³ñ³ÍùÝñáõÙ
• Any recognised place of safe deposit including
  the Assured correspondent bank/ ä³ßïå³Ýí³Í
  Ýñ¹ñáõÙÝñÇ áñ ѳÛïÝÇ í³ÛñáõÙ, Ýñ³éÛ³É
  ²å³Ñáí³ñí³ÍÇ ÃÕóÏóáÕ µ³ÝÏÁ

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In Transit / ֳݳå³ñÑÇ ÁÝóóùáõÙ

• Loss or damage whilst in transit anywhere in the
  custody of/áõÛùÇ ïÕ³áËÙ³Ý Ï³Ù á˳¹ñÙ³Ý
  ÁÝóóùáõ٠ѳëóí³Í íݳëÁ ϳ٠ÏáñáõëïÁ, ÙÇÝã áõÛùÁ
  íëï³Ñí³Í ϳ٠ѳÝÓÝí³Í
• An Employee of the Assured/²å³Ñáí³ñí³ÍÇ
  ³ß˳ï³ÏóÇÝ
• A person designated by the Assured to have
  custody/²å³Ñáí³ñí³ÍÇ ÏáÕÙÇó Ý߳ݳÏí³Í ³ÝÓÇÝ
• A security armoured motor vehicle
  company/²Ýíï³ÝáõÃÛ³Ý ½ñ³Ñ³å³ï/½ÇÝí³Í
  ³íïáÙùݳÛÇ ÁÝÏñáõÃÛ³ÝÁ

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Forgery or Alteration/ÎÕÍáõ٠ϳ٠ááËáõÃÛáõÝ

• Loss resulting from- / Îáñáõëï, áñÝ ³é³ç³óÉ
• Forgery or fraudulent alteration of, or in
  cheques, bill of exchange, acceptances, drafts,
  certificates of deposits, etc. (banking
  collateral instruments)/âÏñÇ, á˳ÝóÙ³Ý
  ѳßÇíÝñÇ, ѳÝÓݳñ³ñ³ññÇ, Ýñ¹ñáõÙ³ÛÇÝ
  ѳí³ëï³ññÇ ÏÕÍÙ³Ý Ï³Ù Ë³ñ¹³Ë ááËáõÃÛ³Ý
  Ñï³Ýùáí,
• When the Assured makes a payment or similar
  transaction in reliance upon a written
  instruction which either/ºñµ ²å³Ñáí³ñí³ÍÁ
  ϳï³ñáõÙ í³ñáõ٠ϳ٠ÝÙ³Ý áñ áñÍáÕáõÃÛáõÝ
  ϳåí³Í ñ³íáñ Ññ³Ñ³ÝÇ Ñï, áñÁ
• Bears a forged signature, or/ÏñáõÙ ÏÕÍ
  ëïáñ³ñáõÃÛáõÝ
• Has been fraudulently altered/ ÏÕÍí³Í

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Securities/²ñÅÃÕÃñ

• Loss resulting from the Assured acting in good
  faith upon Securities which prove to
  be-/Îáñáõëï, áñÝ ³é³ç³óÉ ³ëï³ÃÕÃñÇ Ýϳïٳٵ
  ²å³Ñáí³ñí³ÍÇ íëï³ÑáõÃÛ³Ý Ñï³Ýùáí, ñµ ¹ñ³Ýù
  ÕÉ Ý
• Counterfeit/Forged /ÎÕÍ
• Fraudulently altered/ʳñ¹³ËáñÝ ÏÕÍí³Í
• Lost or stolen/Îáñ³Í ϳ٠áÕ³óí³Í

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Counterfeit Currency/ÎÕÍ ¹ñ³Ù

• Loss arising out of receipt or acceptance of
  counterfeit currency (notes or coins)/ÎÕÍ ¹ñ³ÙÇ
  (ÃÕó¹ñ³Ù ϳ٠Ùï³Õ³¹ñ³Ù) ëï³óÙ³Ý Ï³Ù ÁݹáõÝÙ³Ý
  Ñï³Ýùáí ³é³ç³ó³Í Ïáñáõëï

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Offices and Contents/ñ³ëÝÛ³ÏÝñ
å³ñáõݳÏáõÃÛáõÝ

• Loss of or damage to/Îáñáõëï ϳ٠íݳëí³Íù
• furnishings, fixtures, equipment (except computer
  equipment of any kind) caused by burglary,
  robbery, hold-up, theft or larceny, or any
  attempt thereat, or by vandalism or malicious
  mischief./ ÏÝó³Õ³ÛÇÝ ïËÝÇϳÛÇ,
  ë³ñù³íáñáõÙÝñÇ (µ³óÇ ó³Ýϳó³Í ïë³ÏÇ
  ѳٳϳñã³ÛÇÝ ë³ñù³íáñáõÙÝñÇó) ÏáÕáåáõïÇ,
  áÕáõÃÛ³Ý, ѳñÓ³ÏÙ³Ý Ï³Ù ¹ñ³Ýó áñÓÇ, í³Ý¹³ÉǽÙÇ
  ϳ٠Ýå³ï³Ï³áõÕÕí³Í íݳëí³Íù ѳëóÝÉáõ Ñï³Ýùáí,
• (b) any office of the Assured caused by burglary,
  robbery, hold-up, theft or larceny, or any
  attempt thereat, or to the interior of any such
  office by vandalism or malicious mischief/
  ²å³Ñáí³ñí³ÍÇ ó³Ýϳó³Í ñ³ëÝÛ³ÏÇ ÏáÕáåáõïÇ,
  áÕáõÃÛ³Ý, ѳñÓ³ÏÙ³Ý Ï³Ù ¹ñ³Ýó áñÓÇ Ñï³Ýùáí,
  ݳ ñ³ëÝÛ³ÏÇ ÇÝïñÇñÇ Ïáñáõëï ϳ٠íݳëí³Íù
  í³Ý¹³ÉǽÙÇ Ýå³ï³Ï³áõÕÕí³Í íݳëí³Íù ѳëóÝÉáõ
  ³ñ¹ÛáõÝùáõÙ

17
BBB Losses - Fidelity / ÐÌ ÏáñëïÇ ¹åùñ.
˳ñ¹³ËáõÃÛáõÝ

• Hungarian International Bank/Ðáõݳñ³Ï³Ý
  ØÇç³½³ÛÇÝ ³ÝÏ
• Internal Fraud caused by misallocation of
  funds into dormant account.... GBP 500,000/
  ÜñùÇÝ Ë³ñ¹³ËáõÃÛáõÝ
• 500,000
• Bank of Vidrogenya, Ukraine/àõÏñ³ÇݳÛÇ
  Vidrogenya µ³ÝÏ
• Third party fraud with 16,000 cheques drawn on
  false bank accounts. GBP 4,700,000/ ºññáñ¹ ÏáÕÙÇ
  ˳ñ¹³ËáõÃÛáõÝ 16,000 ãÏñÇ ñ³ÝóáõÙ ÏÕÍ
  µ³ÝϳÛÇÝ Ñ³ßÇíÝñÇ íñ³ 4,700,000
• IPB Investicni A Postovni Banka, Czech
  Republic/âËdzÛÇ IPB Investicni A Postovni
  Banka
• Internal fraud caused by head of the bank and
  his deputy, whom were arrested and sentenced to
  prison/ ÜñùÇÝ Ë³ñ¹³ËáõÃÛáõÝ µ³ÝÏÇ ïÝûñÝÇ Ýñ³
  Ýñϳ۳óáõóãÇ ÏáÕÙÇó, áíùñ Óñµ³Ï³ÉíÉ
  µ³Ýï³ñÏíÉ Ý

Source/²ÕµÛáõñÁ Various Press



Articles/ î³ñµñ Ñá¹í³ÍÝñ Ù³ÙáõÉÇó
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BBB Losses - On premises/ÐÌ ÏáñëïÇ ¹åùñ.
î³ñ³ÍùÝñ

• Hansabank Estonia/ гÝë³µ³ÝÏ ¾ëïáÝdz
• On Premises est . GBP 135,000/î³ñ³ÍùÝñ -
  135,000
• Hold up of a branch of the bank./гñÓ³ÏáõÙ
  µ³ÝÏÇ Ù³ëݳÛáõÕÇ íñ³
• Banca Di Roma Italy/ Di Roma µ³ÝÏ Æï³Édz
• On Premises est . Euro
  50,000,000/î³ñ³ÍùÝñ 50,000,000
• íñá
• A number of thieves broke into the Banks
  Vault
• and cleared out approx.570 Safe Deposit
  Boxes/
• гÝó³áñÍÝñÇ ËáõÙµÁ ÝñËáõÅÉ µ³ÝÏ
  ï³ñÉ
• Ùáï³íáñ³åë 570 ³Ýѳï³Ï³Ý å³Ñ³ñÏÕñ
• Budapest Bank Hungary /áõ¹³åßï µ³ÝÏ
  Ðáõݳñdz
• On Premises - est... GBP 650,000/ î³ñ³ÍùÝñ -
  650,000
• Armed raid on Laktanya Utca branch/¼ÇÝí³Í
  ѳñÓ³ÏáõÙ
• ȳÏï³ÝÛ³ àõïϳ Ù³ëݳÛáõÕÇ íñ³

Source/²ÕµÛáõñÁ Various Press Articles/ î³ñµñ
Ñá¹í³ÍÝñ Ù³ÙáõÉÇó
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BBB Losses - Other sections/ÐÌ ÏáñëïÇ ¹åùñ.
²ÛÉ µ³ÅÇÝÝñ

• Various Middle Eastern Banks/ ²ÛÉ ÙÇçÇÝ ³ñÉÛ³Ý
  µ³ÝÏñ
• Forged securities - est... USD
  150,000,000/ÂñÇ ³Ýíï³ÝáõÃÛáõÝ - 150,000,000 ²ØÜ
  ¹áɳñ
• A person obtained securities by using forged
  documents/ØÇ ³ÝÓ ³ñÅÃÕÃñ Óéù µñÉ
  ûï³áñÍÉáí ÏÕÍ ³ëï³ÃÕÃñ

Source/²ÕµÛáõñÁ Various Press
Articles/ î³ñµñ Ñá¹í³ÍÝñ Ù³ÙáõÉÇó
20
Electronic Computer Crime/¾ÉÏïñáݳÛÇÝ-ѳٳϳñã³Û
ÇÝ Ñ³Ýó³áñÍáõÃÛáõÝ

Computer Crime Insurance attempts to provide,
under one insurance contract, protection for
electronic funds against Crime Risks
perpetrated by a third party through the
Banks/Financial Institutions computer system(s).
гٳϳñã³ÛÇÝ Ñ³Ýó³áñÍáõÃÛ³Ý ³å³Ñáí³ñáõÃÛáõÝÁ
ÙÏ å³ÛٳݳñÇ Ýñùá Ýñϳ۳óÝáõÙ ¾ÉÏïñáݳÛÇÝ
ýáݹñÇ å³ßïå³ÝáõÃÛáõÝ Áݹ¹Ù гÝó³áñÍáõÃÛ³Ý
éÇëÏñÇ, áñáÝù Çñ³Ï³Ý³óíáõÙ Ý ññáñ¹ ÏáÕÙÇ
³ÝÓ³Ýó ÏáÕÙÇó µ³ÝϳÛÇÝ/ýÇݳÝë³Ï³Ý
ѳëï³ïáõÃÛáõÝÝñÇ Ñ³Ù³Ï³ñã³ÛÇÝ Íñ³ññÇ ÙÇçáóáí
What risks does it cover? ÆÝãåÇëÇ éÇëÏñ
³ÛÝ ³å³Ñáí³ñáõÙ
21
Main Insuring Clauses/²å³Ñáí³ñáõÃÛ³Ý ÑÇÙݳϳÝ
¹ñáõÛÃÝñ
22
Computer Crime Losses/гٳϳñã³ÛÇÝ
ѳÝó³áñÍáõÃÛ³Ý ¹åùñ

• Citibank USA / êÇÃǵ³ÝÏ ²ØÜ
• Third Party Fraud - est... 4,000,000/ ºññáñ¹
  ÏáÕÙÇ Ë³ñ¹³ËáõÃÛáõÝ - 4,000,000
• Hacking by Russian, Vladimir Levin, in
  St.Petersburg instructing cash transfers to his
  own account/
• ê.-äïñµáõñáõÙ éáõë ìÉ. ÈÇÝÇ ÏáÕÙÇó ϳÝËÇÏ
  ¹ñ³ÙÇ á˳ÝóáõÙ ë³Ï³Ý ѳßíÇÝ
• Salomon Brothers USA / êáÕáÙáÝ Õµ³ÛñÝñ ²ØÜ
• Third Party Fraud - est... 400,000/ ºññáñ¹
  ÏáÕÙÇ Ë³ñ¹³ËáõÃÛáõÝ - 400,000
• Former Investor Services Specialist charged with
  hacking into shareholder accounts/
• Üñ¹ñáõÙ³ÛÇÝ Í³é³ÛáõÃÛáõÝÝñÇ Ý³ËÏÇÝ
  ³ß˳ï³ÏÇóÁ ÙÕ³¹ñíÉ µ³ÅÝïÇñáç ѳßÇíÝñÇ Ùç
  Ùáõïù áñÍÉáõ ѳٳñ
• Source/²ÕµÛáõñÁ Various Press Articles/ î³ñµñ
  Ñá¹í³ÍÝñ Ù³ÙáõÉÇó

23
Professional Indemnity Insurance/سëݳÇï³Ï³Ý
å³ï³ë˳ݳïíáõÃÛ³Ý ³å³Ñáí³ñáõÃÛáõÝ

• Protects a person during the exercise of his or
  her professional duty./ä³ßïå³ÝáõÙ ³ÝÓÇÝ Ýñ³
  Ù³ëݳÇï³Ï³Ý å³ñï³Ï³ÝáõÃÛáõÝÝñÇ Ï³ï³ñÙ³Ý
  ÁÝóóùáõÙ
• Indemnifies the insured in respect of their legal
  liability to third party claimants resulting from
  a negligent act, negligent error or negligent
  omission committed during the course of
  business./ä³ßïå³ÝáõÙ ññáñ¹ ÏáÕÙÇ Ñ³Ûóáñ¹ÝñÇ
  Ñ³Ý¹å ²å³Ñáí³ñíáÕÇ Çñ³í³Ï³Ý å³ï³ë˳ݳïíáõÃÛáõÝÁ
  ³Ý½áõÛß áñÍáÕáõÃÛ³Ý, µ³óÃáÕÙ³Ý Ï³Ù ë˳ÉÙáõÝùÇ
  ¹åùáõÙ, áñáÝù ÃáõÛÉ Ý ïñíÉ ³ß˳ï³Ýù³ÛÇÝ
  áñÍáõÝáõÃÛ³Ý ÁÝóóùáõÙ
• Third party claimants are likely to be clients
  and other parties who are owed a duty of care in
  the exercise of the business./ºññáñ¹ ÏáÕÙÇ
  ѳÛóáñ¹ÝñÁ ϳñáÕ Ý ÉÇÝÉ ²å³Ñáí³ñíáÕÇ
  ѳ³Ëáñ¹ÝñÁ ϳ٠³ÝÓÇÝù, áõÙ Ñ³Ý¹å ²å³Ñáí³ñíáÕÝ
  áõÝÇ Ù³ëݳÇï³Ï³Ý áñÍáõÝáõÃÛ³Ý ÁÝóóùáõÙ
  ½áõßáõÃÛáõÝ óáõó³µñÉáõ å³ñï³Ï³ÝáõÃÛáõÝ

24
Professional Indemnity - Source of
Claims/سëݳÇï³Ï³Ý å³ï³ë˳ݳïíáõÃÛáõÝ Ð³ÛóñÇ
³ÕµÛáõñÁ

• Legal liabilities of Financial Institutions
  towards their clients or any claimant third party
  arise out of/üÇݳÝë³Ï³Ý ѳëï³ïáõÃÛáõÝÝñÇ
  Çñ³í³Ï³Ý å³ï³ë˳ݳïíáõÃÛáõÝÁ ѳ³Ëáñ¹ÝñÇ Ï³Ù
  ññáñ¹ ÏáÕÙÇ ³ÛÉ Ñ³Ûóáñ¹ÝñÇ Ýϳïٳٵ ͳáõÙ
• Traditional banking activities/²í³Ý¹³Ï³Ý µ³ÝϳÛÇÝ
  áñÍáõÝáõÃÛáõÝÇó
• Online banking and trading/Øßï³Ï³Ý µ³ÝϳÛÇÝ
  ³éïñ³ÛÇÝ áñÍáõÝáõÃÛáõÝÇó
• MA advisory and consulting services/ ØdzíáñÙ³Ý
  ÒéùµñÙ³Ý ËáñÑñ¹³ïí³Ï³Ý ͳé³ÛáõÃÛáõÝÝñÇ
  ïñ³Ù³¹ñáõÙÇó
• Fund and Asset Management/üáݹñÇ Ï³åÇï³ÉÝñÇ
  ϳé³í³ñáõÙÇó

25
Professional Indemnity Losses/سëݳÇï³Ï³Ý
å³ï³ë˳ݳïíáõÃÛ³Ý ÏáñëïÇ ¹åùñ

• Bank received a deposit from a client but
  accidentally deposited the funds in the wrong
  account, from where they were withdrawn by
  another party. The client went into liquidation
  and successfully sued the bank and its Directors
  for US 65,000,000./³ÝÏÁ ëï³óÉ Ñ³³Ëáñ¹Çó
  áõÙ³ñ, áñÁ ë˳Éٳٵ ¹ñíÉ ³ÛÉ Ñ³ßíÇ íñ³,
  áñïÕÇó É ³ÛÝ íñóíÉ ³ÛÉ Ñ³³Ëáñ¹Ç ÏáÕÙÇó
  г³Ëáñ¹Á ëݳÝϳóÉ ¹³ï³Ï³Ý áñÍ Ñ³ñáõóÉ
  µ³ÝÏÇ ïÝûñÇÝáõÃÛ³Ý ¹Ù, Ýñ³ÝÇó ëï³óÉ
  65,000,000 ²ØÜ ¹áɳñ áËѳïáõóáõÙ
• Bank and its Directors sued for US 7,500,000
  alleging negligence in management of clients
  funds by the Asset Management division./³ÝÏÁ
  Ýñ³ ïÝûñÇÝáõÃÛáõÝÁ ïáõ³ÝíÉ 7,500,000 ²ØÜ
  ¹áɳñÇ ã³áí, ù³ÝÇ áñ µ³ó³Ñ³ÛïíÉ , áñ ϳåÇï³ÉÇ
  ϳé³í³ñÙ³Ý µ³Å³ÝÙáõÝùÁ ³ÝáõÃáõÃÛáõÝ
  óáõó³µñÉ Ñ³³Ëáñ¹ÝñÇ ýáݹñÇ Ï³é³í³ñÙ³Ý
  áÉáñïáõÙ
• Private client claim against a bank and its
  Directors for US 8,000,000 for following poor
  advice on management of clients
  Assets./г³Ëáñ¹Ç ÏáÕÙÇó 8,000,000 ²ØÜ ¹áɳñÇ
  ¹³ï³Ï³Ý ѳÛó ѳñáõóíÉ µ³ÝÏÇ Ýñ³ ïÝûñÇÝáõÃÛ³Ý
  ¹Ù ë³Ï³Ý ϳåÇï³ÉÁ ïÝûñÇÝÉáõ Ñï ϳåí³Í
  ³ÝѳçáÕ ËáñÑáõñ¹ ï³Éáõ ѳٳñ
• Source/²ÕµÛáõñÁ Various Press Articles/ î³ñµñ
  Ñá¹í³ÍÝñ Ù³ÙáõÉÇó

26
Directors Officers Insurance (DO)/îÝûñÝÝñÇ
Õϳí³ñÝñÇ ³å³Ñáí³ñáõÃÛáõÝ (îÔ)

• Directors Officers Insurance provides
  indemnity for the Individual Directors and
  Officers of a company against their legal
  liability to pay damages to third party claimants
  as a consequence of the third party having
  suffered financial loss through the negligent
  act, error or omission of the Director or Officer
  in his/her managerial capacity./îÝûñÝÝñÇ
  Õϳí³ñÝñÇ ³å³Ñáí³ñáõÃÛáõÝÁ å³ßïå³ÝáõÙ
  ÁÝÏñáõÃÛáõÝÝñÇ ³Ýѳï ïÝûñÝÝñÇ Õϳí³ñÝñÇ
  Çñ³í³Ï³Ý å³ï³ë˳ݳïíáõÃÛáõÝÁ ѳïáõóÉáõ ññáñ¹
  ÏáÕÙÇÝ ÇñÝó ÙÕùáí å³ï³éí³Í ýÇݳÝë³Ï³Ý
  ÏáñáõëïÝñÁ îÔ Ï³é³í³ñ³Ï³Ý ë³ÑÙ³ÝÝñáõÙ
• In other words, it is a Managerial Negligence
  cover./²ÛÉ Ëáëùñáí ³ÛÝ Õϳí³ñáõÃÛ³Ý
  ³ÝáõÃáõÃÛ³Ý Í³ÍÏáõÛÃ
• Third party claimants are likely to be
  Shareholders, Employees and Governmental
  bodies./ºññáñ¹ ÏáÕÙÇ Ñ³Ûóáñ¹ÝñÁ ϳñáÕ Ý ÉÇÝÉ
  µ³ÅÝïññÁ, ³ß˳ï³ÏÇóÝñÁ åï³Ï³Ý Ù³ñÙÇÝÝñÁ

27
D O Losses / îÔ ÏáñëïÇ ¹åùñ

• TIG Holdings - USA - est... GBP 100,000,000/
  TIG Holdings ²ØÜ - 100,000,000
• The suit alleges that TIG and two of its
  officers inflated the share price for a period
  throughout 1997/98./³ï³ñ³ÝÝ ³å³óáõóÉ , áñ
  TIG-Ç ñÏáõ Õϳí³ñÝñ 1997/98 Ãí³Ï³ÝÝñÇÝ
  ³ÙµáÕçáõÃÛ³Ùµ ÏÕÍÉ Ý ß³Ñ³µ³ÅÇÝÁ
• Banco di Napoli - Italy - est... GBP
  300,000,000/ Banco di Napoli Æï³Édz -
• 300,000,000
• The current management of the Banco di Napoli
  are suing former executives and their auditors,
  Price Waterhouse, for negligence arising out of
  bad and doubtful loan losses posted in July
  1996./ Banco di Napoli ÁÝóóÇÏ Ï³é³í³ñÙ³Ý
  µ³Å³ÝÙáõÝùÁ ¹³ïÉ Ýáñ ϳé³í³ñÇãÝñÇÝ Ýñ³Ýó
  ³áõ¹ÇïáñÝñÇÝ Price Waterhouse-ÇÝ 1996Ã.
  ÑáõÉÇëÇÝ ñ³Ýóí³Í ϳëϳÍÉÇ å³ñïùñÇ å³ï³éáí
• Sumitomo Corp - Japan - est... GBP
  1,000,000,000/ Sumitomo Corp Ö³åáÝdz -
• 1,000,000,000
• Shareholder suit vs.. former chairman and 4
  former executives - derivative
• action for lack of supervision which
  enabled Copper trader to rack up
• GBP1.6 billion losses in unauthorised
  dealing and falsifying /
• documentation./³ÅÝïñÁ ¹³ï³Ï³Ý ѳÛó
  Ýñϳ۳óñÉ ïÝûñÝÇ 4 áñͳ¹Çñ
• ïÝûñÝÝñÇ ¹Ù. íñ³ÑëÏÙ³Ý
  µ³ó³Ï³ÛáõÃÛ³Ý å³ï³éáí ïÕÇ áõÝó³Í ë˳É
  áñÍáÕáõÃÛ³Ý
• Ñï³Ýùáí Ùï³ÕÇ ³éïñáí ½µ³ÕíáÕ
  ѳ³Ëáñ¹Á ë³Ï³Ý³óñÉ ÙÏáõÏë ÙÇÉdzñ¹ ýáõÝï
• ëïéÉÇÝ Çñ³Ï³Ý³óÝÉáí ã³ñïáݳñí³Í
  áñͳñù ˳µáõÃÛáõÝ
• Source/²ÕµÛáõñÁ Various Press Articles/ î³ñµñ
  Ñá¹í³ÍÝñ Ù³ÙáõÉÇó

28
The Market / Þáõϳ

• Specialist Financial Institution Insurance Market
  Place. / سëݳÇï³óí³Í ýÇݳÝë³Ï³Ý
  ѳëï³ïáõÃÛáõÝÝñÇ ³å³Ñáí³ñ³Ï³Ý ßáõϳ
• Lloyds London based Insurance Companies
  (Approximately 20 Lloyds Syndicates 10
  Insurance Companies)/
• Lloyds London-Ç Ñï ѳٳïÕ áñÍáÕ
  ³å³Ñáí³ñ³Ï³Ý ÁÝÏñáõÃÛáõÝÝñ (Ùáï³íáñ³åë 20
  ëÇݹÇϳïÝñ 10 ³å³Ñáí³ñ³Ï³Ý ÁÝÏñáõÃÛáõÝÝñ)
• London Insurance Market Dominates Global
  Financial
• Institution insurance arena./
• ÈáݹáÝÇ ³å³Ñáí³ñáõÃÛ³Ï³Ý ßáõÏ³Ý ñ³ÏßéáõÙ
  ѳٳß˳ñѳÛÇÝ ýÇݳÝë³Ï³Ý ѳëï³ïáõÃÛáõÝÝñÇ
  ³å³Ñáí³ñ³Ï³Ý ¹³ßïáõÙ
• Insurance Companies world-wide outside of
  London./
• ²å³Ñáí³ñ³Ï³Ý ÁÝÏñáõÃÛáõÝÝñ ³ÙµáÕç ³ß˳ñÑáõÙ
  ÈáݹáÝÇó ¹áõñë