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Insurance Hold Harmless Agreement Template for Malaysia

A comprehensive legal document governed by Malaysian law that establishes insurance requirements and indemnification obligations between parties. The agreement combines elements of traditional hold harmless provisions with specific insurance coverage requirements, ensuring that the indemnifying party maintains adequate insurance to support their indemnification obligations. The document is structured to comply with Malaysian insurance regulations, particularly the Financial Services Act 2013, and includes provisions for risk allocation, claims procedures, and insurance maintenance requirements. It serves as a risk management tool while ensuring compliance with local regulatory requirements and business practices.

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What is a Insurance Hold Harmless Agreement?

The Insurance Hold Harmless Agreement is a crucial risk management instrument used in Malaysian business transactions where one party seeks to protect itself from potential losses or liabilities by requiring another party to maintain specific insurance coverage and provide indemnification. This document is particularly relevant in commercial relationships involving significant operational risks, complex project arrangements, or substantial potential liabilities. It must comply with Malaysian legal requirements, including the Financial Services Act 2013 and the Contracts Act 1950, while addressing practical business needs for risk allocation and insurance coverage. The agreement typically specifies insurance types, coverage limits, additional insured requirements, and procedures for maintaining coverage, while establishing clear indemnification obligations and claim handling procedures.

What sections should be included in a Insurance Hold Harmless Agreement?

1. Parties: Identifies and defines all parties to the agreement, including the indemnitor (party providing indemnification) and indemnitee (protected party)

2. Background: Explains the context and purpose of the agreement, including the relationship between parties and the general scope of activities covered

3. Definitions: Defines key terms used throughout the agreement, including specific insurance-related terminology and scope of covered incidents

4. Scope of Indemnification: Details the specific risks, losses, and circumstances covered by the hold harmless provision

5. Insurance Requirements: Specifies required insurance coverage types, minimum coverage amounts, and insurance provider requirements

6. Duration and Termination: Establishes the term of the agreement and conditions for termination

7. Notice Requirements: Procedures for notification of claims, incidents, or changes in insurance coverage

8. Compliance with Laws: Ensures adherence to Malaysian laws and regulations, particularly insurance and contract laws

9. Dispute Resolution: Procedures for handling disputes, including jurisdiction and governing law provisions

10. General Provisions: Standard contractual provisions including severability, entire agreement, and amendments

What sections are optional to include in a Insurance Hold Harmless Agreement?

1. Additional Insured Requirements: Used when specific parties need to be named as additional insured on insurance policies

2. Cross-Indemnification: Include when both parties are providing reciprocal indemnification

3. Subrogation Waiver: Added when parties agree to waive rights of subrogation against each other

4. Special Risk Provisions: Include for specific high-risk activities or special circumstances requiring additional coverage

5. Insurance Premium Allocation: Used when specifying how insurance premiums will be shared or allocated between parties

6. Claims Handling Procedures: Added for complex agreements requiring detailed claims processing procedures

What schedules should be included in a Insurance Hold Harmless Agreement?

1. Schedule A - Insurance Coverage Requirements: Detailed breakdown of required insurance types, coverage limits, and specific terms

2. Schedule B - Named Additional Insureds: List of all parties to be named as additional insureds on required policies

3. Schedule C - Excluded Risks: Specific exclusions from the scope of indemnification

4. Appendix 1 - Certificate of Insurance Template: Standard format for insurance certificates to be provided

5. Appendix 2 - Claim Notification Form: Standard form for notifying claims or incidents under the agreement

6. Appendix 3 - Insurance Provider Requirements: Specific requirements for acceptable insurance providers, including minimum ratings

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Malaysia

Publisher

Ƶ

Document Type

Release Agreement

Cost

Free to use

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