Fire Insurance is a property insurance and it covers the material damage of the property insured. Insurers will compensate or indemnify the Insured for the repair costs or reinstatement costs if this is insured on a Reinstatement value basis (subject to the adequacy of the Sum Insured) of the property that has sustained damage by an insured peril.
It is therefore important for all owners of houses, shops, factories, machinery, stock etc to be covered by fire insurance, which is the simplest form of coverage offered to property owners.
A standard Fire policy covers loss and / or damage by:
i)Fire
ii)Lightning
iii)Explosion (due to domestic boiler or of gas for domestic purpose)
iv)Damage by water or other extinguishing agents used to put out the fire
v)Damage resulting from gaining access to a fire
vi)Smoke damage caused by fire
Principal Exclusions
Perils as specified (these perils can be granted subject to payment of additional premium):
A.Loss by theft during or after the occurrence of a fire
B.Arson by the Insured
C.Collapse of buildings
D.Subterranean Fire
E.War & Civil Commotion
F.Radioactive contamination
G.All forms of indirect (consequential) loss are excluded.
However, rental can be included if specifically insured.
Additional Cover
Subject to the Insured’s agreement and payment of additional premium, the basic policy can be extended to cover the following special perils: -
Additional Premium
Aircraft Damage 0.005%
Earthquake & Volcanic Eruption 0.010%
Storm, Tempest 0.015%
Flood 0.086%
Explosion
-Industrial without boilers 0.006%
-Industrial with boilers 0.008%
-Non-industrial without boilers 0.005%
-Non-industrial with boilers 0.008%
Impact Damage
- Excluding insured’s own vehicle 0.004%
- Including insured’s own vehicle 0.004%
Bursting & overflowing of water tanks: -
-Building exceeding 5 stories (including Mezzanine)0.006%
-Others 0.005%
Electrical Installation Clause B 0.056%
Bush or Lallang Fire 0.005%
Subsidence & Land Slip 0.081%
Spontaneous Combustion – By fire only 0.081%
Spontaneous Combustion – Full cover 0.0161%
Riot, Strike & Malicious Damage: -
-Residential Properties 0.010%
-Other than Residential Properties 0.014%
-Damage by Falling Trees or Branches and 0.010%
-Full Theft – Householder Policies only 0.250%
Sprinkler Leakage
-Buildings 0.005%
-Contents 0.025%
Spray Painting
-Subject to Spray Painting - 25% loading Warranty 24
-Without Spray Painting - 50% loading Warranty 24
-Smoke Damage 10% of Basic Fire
Sum Insured
Building and / or plant and machinery
Indemnity under a standard Fire Policy is on the market value at the time of the fire. It is also permissible to insure on reinstatement value basis whereby, the proposer must declare the reconstruction value or replacement value of the building and/or machinery.
Wednesday, 9 December 2015
Motor Insurance
The coverage available under a Motor insurance policy includes:
Act cover
The ‘Act’cover is the minimum cover required by the Road Traffic Ordinance. It covers death or injury to third party arising from the negligence of the insured in a motor accident. The amount covered under this policy is unlimited. This policy does not cover damages to third party property, damage to or loss of the driver’s vehicle or injuries suffered by the owner.
For example, Shanti crashed into a stationary car parked near her house, hurt herself and damaged the other car. The Act cover will pay for the injuries suffered by the injured person in the parked car. It will not cover the damages to the other car or the damages to her own car and her injuries.
Third party cover
The Third-party cover provides wider cover than the Act cover. It provides coverage for a blending of protection granted by an Act cover and in addition indemnity for liability for damages to property belonging to third parties.
Quoting the above case, if Shanti had bought a Third-party cover instead of an Act cover, it would have covered the cost of the other party’s damages to the vehicle.
Third party, fire and theft cover
This type of Third-party cover is a combination of Act cover, third party cover, and in addition, it indemnifies the insured against theft of his or her vehicle and damages by fire.
If Shanti’s car was stolen three months after the accident, this policy would cover her losses while the former two will not.
Comprehensive
This is the widest form of cover under motor insurance and is highly recommended. Acar is a major asset of the client and losses sustained in an accident would be substantial even if the loss is not total. The Comprehensive cover would confer a much greater cover to the client.
This plan is a combination of the Act and Third party coverage plus any physical damage to the insured vehicle and its spare parts following accidental collision and other perils as more specifically covered in the policy.. It is also possible to increase the policy’s degree of comprehensiveness by adding other coverage such as windscreen cover and P.A. cover, etc.
With this policy, Shanti would have been able to claim the losses on the repairs made to her damaged car.
Classes of Motor Insurance
The 3 classes of motor insurance under the Motor tariff are:
a)Private motor car
b)Motorcycle
c)Commercial vehicle
Each of the above classes has its own motor insurance policy and is rated separately under its own section of the Motor Tariff.
Sum Assured
The risk amount to the insured of a motor vehicle is reflected in the sum insured. The sum insured of the vehicle is the client’s estimation of the value of the vehicle and its accessories. The value should be reflective of the market value at the time the insurance is bought. Depreciation of the vehicle must be taken into consideration and the value should be reviewed every renewal date. Over insurance will obviously waste the client’s money, while under insurance will subject the claim to the average clause.
Rating
In accordance with the ICAGIB (Inter-Company Agreement General Insurance Business) ruling, premiums charged must be those stated in the Motor Tariff. This would mean the rates, unless loaded, on each class of vehicle will be the same for all insurers.
Private Motor Car
Comprehensive premium is calculated based upon:
-sum insured
-the cubic capacity of the car
To arrive at the third party premium it is necessary to know the cubic capacity of the car and reference is then made to the premium chargeable on the third party columns as shown in the Tariff.
Commercial Vehicle
As there is a wide category of vehicles falling under this class, the exact type of vehicle must be known. Comprehensive premium is calculated based on:
-sum insured
-tonnage
-business permit e.g. A to C to obtain the comprehensive premium
For third party cover, the sum insured need not be known and the same procedure applies as in private car third party insurance.
Motorcycle
The comprehensive premium is calculated based on:
-the cubic capacity of the vehicle
-the sum insured
-whether for single or all riders or commercial usage
To arrive at the third party premium the sum insured need not be known and the premium calculation
is obtained from the third party column of the tariff.
Minimum Premium
The minimum premium per policy (whether annual or short period) is RM50.00 for (private cars and commercial vehicles cars) and RM20.00 for (motor cycles) after deducting No Claim Discount but before allowing commission /brokerage.
No Claim Discount
Written evidence of entitlement or confirmation from previous insurer must be obtained before allowing the No Claim Discount.
No Claim Discount should only be allowed on the basic premium (including the premium charged for any loading imposed). All extra benefits extension shall not be permitted a No Claim Discount.
Under no circumstances can any staff make special arrangement to issue NCD vide credit note with agents. All NCD should be for the benefit of the policyholder and not credited to agents’ account. When requested to issue NCD letters, these letters must be issued in duplicate to the insured and the insurance company will return one duly signed copy of the letter to the policyholder.
Likewise, the new policyholder should obtain NCD letters in duplicate and sign and return one copy of the letter to the previous insurer. This is to allow the industry to check that no forged NCD letters are treated as valid. There have been instances that NCD letters submitted by policyholders are “fakes”.
Extensions to Basic Cover
i.Windscreen cover may be granted at inception of cover but if the cover is requested during the currency of the Policy, a survey must be conducted before cover can be granted. Additional premium at 15% of windscreen value.
ii.Passengers liability cover can be granted on request by payment of an additional premium of 25% of the premium charged for the third party cover. For cars with seating capacity in excess of 4 passengers, an amount of RM10.00 per passenger after the 4th passenger would be charged
iii.Medical expenses (Section III) and personal accident (Section IV) cover are excluded. However they can be granted on request by payment of additional premium of RM20.00 per person
iv.Strike, riot, civil commotion cover can be granted with additional premium of 0.30% of the sum insured.
Act cover
The ‘Act’cover is the minimum cover required by the Road Traffic Ordinance. It covers death or injury to third party arising from the negligence of the insured in a motor accident. The amount covered under this policy is unlimited. This policy does not cover damages to third party property, damage to or loss of the driver’s vehicle or injuries suffered by the owner.
For example, Shanti crashed into a stationary car parked near her house, hurt herself and damaged the other car. The Act cover will pay for the injuries suffered by the injured person in the parked car. It will not cover the damages to the other car or the damages to her own car and her injuries.
Third party cover
The Third-party cover provides wider cover than the Act cover. It provides coverage for a blending of protection granted by an Act cover and in addition indemnity for liability for damages to property belonging to third parties.
Quoting the above case, if Shanti had bought a Third-party cover instead of an Act cover, it would have covered the cost of the other party’s damages to the vehicle.
Third party, fire and theft cover
This type of Third-party cover is a combination of Act cover, third party cover, and in addition, it indemnifies the insured against theft of his or her vehicle and damages by fire.
If Shanti’s car was stolen three months after the accident, this policy would cover her losses while the former two will not.
Comprehensive
This is the widest form of cover under motor insurance and is highly recommended. Acar is a major asset of the client and losses sustained in an accident would be substantial even if the loss is not total. The Comprehensive cover would confer a much greater cover to the client.
This plan is a combination of the Act and Third party coverage plus any physical damage to the insured vehicle and its spare parts following accidental collision and other perils as more specifically covered in the policy.. It is also possible to increase the policy’s degree of comprehensiveness by adding other coverage such as windscreen cover and P.A. cover, etc.
With this policy, Shanti would have been able to claim the losses on the repairs made to her damaged car.
Classes of Motor Insurance
The 3 classes of motor insurance under the Motor tariff are:
a)Private motor car
b)Motorcycle
c)Commercial vehicle
Each of the above classes has its own motor insurance policy and is rated separately under its own section of the Motor Tariff.
Sum Assured
The risk amount to the insured of a motor vehicle is reflected in the sum insured. The sum insured of the vehicle is the client’s estimation of the value of the vehicle and its accessories. The value should be reflective of the market value at the time the insurance is bought. Depreciation of the vehicle must be taken into consideration and the value should be reviewed every renewal date. Over insurance will obviously waste the client’s money, while under insurance will subject the claim to the average clause.
Rating
In accordance with the ICAGIB (Inter-Company Agreement General Insurance Business) ruling, premiums charged must be those stated in the Motor Tariff. This would mean the rates, unless loaded, on each class of vehicle will be the same for all insurers.
Private Motor Car
Comprehensive premium is calculated based upon:
-sum insured
-the cubic capacity of the car
To arrive at the third party premium it is necessary to know the cubic capacity of the car and reference is then made to the premium chargeable on the third party columns as shown in the Tariff.
Commercial Vehicle
As there is a wide category of vehicles falling under this class, the exact type of vehicle must be known. Comprehensive premium is calculated based on:
-sum insured
-tonnage
-business permit e.g. A to C to obtain the comprehensive premium
For third party cover, the sum insured need not be known and the same procedure applies as in private car third party insurance.
Motorcycle
The comprehensive premium is calculated based on:
-the cubic capacity of the vehicle
-the sum insured
-whether for single or all riders or commercial usage
To arrive at the third party premium the sum insured need not be known and the premium calculation
is obtained from the third party column of the tariff.
Minimum Premium
The minimum premium per policy (whether annual or short period) is RM50.00 for (private cars and commercial vehicles cars) and RM20.00 for (motor cycles) after deducting No Claim Discount but before allowing commission /brokerage.
No Claim Discount
Written evidence of entitlement or confirmation from previous insurer must be obtained before allowing the No Claim Discount.
No Claim Discount should only be allowed on the basic premium (including the premium charged for any loading imposed). All extra benefits extension shall not be permitted a No Claim Discount.
Under no circumstances can any staff make special arrangement to issue NCD vide credit note with agents. All NCD should be for the benefit of the policyholder and not credited to agents’ account. When requested to issue NCD letters, these letters must be issued in duplicate to the insured and the insurance company will return one duly signed copy of the letter to the policyholder.
Likewise, the new policyholder should obtain NCD letters in duplicate and sign and return one copy of the letter to the previous insurer. This is to allow the industry to check that no forged NCD letters are treated as valid. There have been instances that NCD letters submitted by policyholders are “fakes”.
Extensions to Basic Cover
i.Windscreen cover may be granted at inception of cover but if the cover is requested during the currency of the Policy, a survey must be conducted before cover can be granted. Additional premium at 15% of windscreen value.
ii.Passengers liability cover can be granted on request by payment of an additional premium of 25% of the premium charged for the third party cover. For cars with seating capacity in excess of 4 passengers, an amount of RM10.00 per passenger after the 4th passenger would be charged
iii.Medical expenses (Section III) and personal accident (Section IV) cover are excluded. However they can be granted on request by payment of additional premium of RM20.00 per person
iv.Strike, riot, civil commotion cover can be granted with additional premium of 0.30% of the sum insured.
Wednesday, 2 December 2015
General Insurance Products in Insurance Planning
General insurance policies are based on the principle of indemnity. This principle enunciates that a person who has suffered a loss must be placed in the same position as he was before the loss (after being duly compensated), provided that the sum insured is adequate. What this simply means is that individuals cannot profit from a general insurance policy. The insured is only entitled to recover to the extent of his actual loss. For example, if a house is partially destroyed by fire, it is not possible for the owner to insist on rebuilding the entire premises, or even enhancing the premises, just because the owner has a fire policy. Indemnity dictates that the premises will be repaired and the owner compensated to the extent that the premises is reconstructed to approximately the same condition it was in before the fire occurred.
Arising from this basic concept of indemnity are the two subsidiary principles of contribution and subrogation.
An insured is entitled to effect more than one policy on the same risk ( subject to the terms of the insurance policy ). However in the case of policies of indemnity, an insured who has effected two or more policies cannot recover more than the amount of his loss and often enough, only one insurer is called upon to indemnify him. Where this is the case, the insurer who has paid for the insured’s loss is entitled to call upon the other insurer or insurers, as the case may be, to contribute towards the amount which has been paid to the insured in respect of his loss. Each insurer bears a rateable share of the loss.
The right of contribution, ensures that the insured is not unjustly enriched by effecting several policies of insurance on the same risk.
The right, which is given to an insurer who has settled the claim of the insured under the terms of an indemnity policy, to step into the shoes of the insured and claim his rights against the third party who has caused the loss to the insured is called subrogation. Thus, from the foregoing an insurer cannot exercise his right of subrogation under a policy of indemnity unless the insurer has already indemnified the insured. Once indemnified, the insured has a duty to assist the insurer in the exercise of the right of subrogation and must ensure that he does not prejudice the insurer’s position to claim from the third party.
The principle of subrogation has no application in non-indemnity polices such as life insurance policies.
All properties are directly or indirectly exposed to risks of being destroyed or damaged. Generally, these properties are accumulated by the owner over a period of years in line with the wealth accumulation plan. Any damage or loss of such property can have a direct or indirect impact on the individual’s financial circumstances – especially when there is no provision made for loss transfer.
In the respect, we need to familiarize with two types of losses that properties can experience:
Arising from this basic concept of indemnity are the two subsidiary principles of contribution and subrogation.
Contribution
An insured is entitled to effect more than one policy on the same risk ( subject to the terms of the insurance policy ). However in the case of policies of indemnity, an insured who has effected two or more policies cannot recover more than the amount of his loss and often enough, only one insurer is called upon to indemnify him. Where this is the case, the insurer who has paid for the insured’s loss is entitled to call upon the other insurer or insurers, as the case may be, to contribute towards the amount which has been paid to the insured in respect of his loss. Each insurer bears a rateable share of the loss.
The right of contribution, ensures that the insured is not unjustly enriched by effecting several policies of insurance on the same risk.
Subrogation
The principle of subrogation has no application in non-indemnity polices such as life insurance policies.
Property Risk Exposures
Identifying the Risks: Expenses and Losses
In the respect, we need to familiarize with two types of losses that properties can experience:
- A direct loss is a financial loss that results from the physical damage, destruction or theft of the property. An example of a direct loss is a house destroyed by fire, or a valuable item that is stolen.
- An indirect or consequential loss is a financial loss that results indirectly from the event of a direct loss of the property. The consequential loss in the case of a house been destroyed by fire is the cost of rental that is paid for a place of stay while the original property is being repaired for habitation.
Tuesday, 28 July 2015
Life Insurance VS Life Unexpectancy - The Wisdom of Financial Planning
Stop saying Insurance is a scam!
Insurance is designed to mitigate the impact of RISK! Even Big Banks insure themselves, let alone average folks.
Do not try to measure RISK, using your calculator, if it is doable, then it is definitely not RISK.
Insurance can not change the way you lead your life, but can definitely prevent the quality of your life being changed.
Often the importance of Umbrella (Insurance) is realize on Rainy days, when you do not have one.
It is just like after your "Toilet business", and you are stranded in the cubicle without Toilet paper (Insurance).
Ain't it too late to ask for help?
Wisdom is the ability to plan ahead of life.
The function of Life Insurance is to provide financial security against Life Unexpectancy. Traditional Whole Life policy provide such benefits. As we progress, Insurance companies designed different policies, to cater to every individual needs.
Today, Insurance has evolved beyond their basic functions. Other than just financial protection, it is also a tax free wealth with compound benefits, which can also serve as your retirement nest.
Most would think, having Insurance is a shield against RISK, and is exactly the same, if I were to save with the banks, should there be any emergency, I will have easy access to the money.
The truth is, Not the same.
Let's say a Bypass surgery, cost $50,000 for a stem and $100,000 for 2. Supposedly, you save $3,000 with the bank each year, how long would it take for you to save up to $100,000? 30 years!
In the event, you need this sum of money within the next 10 years. Would your bank pay you interests of $100,000?
However with the same premium of $3,000, you would have successfully transfer your $100,000 obligation to Insurance and be assure of the pay out.
Most have the misconception that, if they remain healthy during their lifetime, the premiums would be forfeited. Which is absolutely not the case, after 30 years, in addition to the principal, you will be enjoying the compounded interests.
2 Distinctive differences:
So if you save with the bank, you need 30 years to accumulate $100,000, whereas Insurance would pay the lump sum immediately, in the event of any mishap.
What if you remain healthy after 30 years? Fret not, you still get back what you pay, together with accrued bonuses.
Some say, I am very healthy, "it" would never happen to me. IF really happens, I am sure the bills would be affordable.
I ask, if a person has so much money, that he would never be able to finish in his lifetime, is it true that medical issues are insignificant?
World's richest man, Bill Gates say:" Medical Insurance is the lowest costs policy, yet the most efficient tool to manage healthcare." Falling sick does not just affect your lifestyle, it also affect the quality of your life.
If you deposit $500K with the bank, should the bills cost you $500K, your account would be wiped out instantly. What kind of impact do you think, it would have on both you and your family?
Alternatively, you could deposit $400K with the bank, $100K with insurance to create a $1 million Sum Assured. This is how the sums would work out to be, you get the million compensation, $500K to pay for the medical bills, the balance of $500K plus the $400K in your bank account, you have a decent $900K, to take care of your lifestyle.
Thursday, 22 May 2014
Renew Car Insurance Malaysia Online
We, MHH Agency (JM 0655223-U) are registered Insurance Agent with Allianz General Insurance Company (Malaysia) Berhad under Allianz Malaysia Berhad (AMB). Our online presence is hope to provide car owners to renew their car insurance with a few buttons click away in front of computer without the hassle of driving out to look for insurance agent shop. We know that many people are busy at their work and only free at night or weekend but insurance shops in Malaysia normally close at the weekend and after 6pm. We strive to cater car owners a safe, fast and convenient platform to renew their car insurance online. We do also provide road tax renewal service. The road tax will deliver to your doorstep in 3 working days.
For car insurance renewal, all the required information needed can be submit to us via email at MHH.Agency@gmail.com or snapshot the previous car insurance policy e-cover note which contain all required information and send to us via WeChat at WeChat ID: alvin-wechat (016-888 4292). Your insurance premium can be made via Internet Banking. Internet banking is the best and safe online payment because the transaction is done through bank secure website and all the transaction recorded so no dispute may arise. Kindly notify us once the payment is made. Upon receiving your payment, we will proceed to renew your car insurance and send you a soft copy of car insurance policy e-cover note issued by Allianz in PDF format. With the car insurance cover note, you can proceed to renew your road tax. You can opt to let us to renew your road tax and it will deliver to your doorstep in 3 working days.
If you wish to know the estimate premium of your car insurance before car insurance renewal, you can use this car insurance calculator to get a estimate premium. Car market value can be found here. If you need an official car insurance quotes from Allianz, kindly submit the information required. We dedicated to revert back to you within the working day.
Information required:
1. Name as per NRIC*
2. NRIC Number
3. Address
4. Mobile Number
5. Email
6. Type of insurance coverage - Comprehensive Insurance*
7. Amount to be insured (RM)
8. NCD Entitlement
9. Existing Insurer
10. Insurance Expiry Date
11. Car Plate Number
12. Car Model/Make
13. Engine Capacity (cc)
14. Existing Hire Purchase
15. Year Of Manufactured
16. Chassis Number
17. Engine Number
18. Windscreen Coverage (optional)
19. Name of Second Driver
20. Additional Remark
Please feel free to contact us should you have any inquiry at 016-888 4292 or email us at MHH.Agency@gmail.com
For car insurance renewal, all the required information needed can be submit to us via email at MHH.Agency@gmail.com or snapshot the previous car insurance policy e-cover note which contain all required information and send to us via WeChat at WeChat ID: alvin-wechat (016-888 4292). Your insurance premium can be made via Internet Banking. Internet banking is the best and safe online payment because the transaction is done through bank secure website and all the transaction recorded so no dispute may arise. Kindly notify us once the payment is made. Upon receiving your payment, we will proceed to renew your car insurance and send you a soft copy of car insurance policy e-cover note issued by Allianz in PDF format. With the car insurance cover note, you can proceed to renew your road tax. You can opt to let us to renew your road tax and it will deliver to your doorstep in 3 working days.
If you wish to know the estimate premium of your car insurance before car insurance renewal, you can use this car insurance calculator to get a estimate premium. Car market value can be found here. If you need an official car insurance quotes from Allianz, kindly submit the information required. We dedicated to revert back to you within the working day.
Information required:
1. Name as per NRIC*
2. NRIC Number
3. Address
4. Mobile Number
5. Email
6. Type of insurance coverage - Comprehensive Insurance*
7. Amount to be insured (RM)
8. NCD Entitlement
9. Existing Insurer
10. Insurance Expiry Date
11. Car Plate Number
12. Car Model/Make
13. Engine Capacity (cc)
14. Existing Hire Purchase
15. Year Of Manufactured
16. Chassis Number
17. Engine Number
18. Windscreen Coverage (optional)
19. Name of Second Driver
20. Additional Remark
Please feel free to contact us should you have any inquiry at 016-888 4292 or email us at MHH.Agency@gmail.com
Saturday, 17 May 2014
Fire insurance
Fire Insurance
Our house is one of the most
expensive things we buy in our lifetime. Our house is where all of our beloved
family live, rest and enjoy life. So, we must make sure our house is secure and
protected if something happen to our house like fire. There are different types
of fire insurance available in the market for home owner to select such as most
basic and must have insurance fire insurance, and other home owners insurance
like houseowner insurance, household insurance (content insurance).
Malaysia, being an equatorial
country which is all year round hot weather is tending to be catch with fire.
For this reason, banks that provide the mortgage loan require home owner to
purchase the fire insurance before banks approved the mortgage loan. This is
mainly for the protection and security of banks themselves and house owner.
What is fire insurance and what does
it cover?
Fire insurance in Malaysia is a regulated
insurance. It means that its basic insurance premium is calculated based on a
standard fire tariff rate FTR define by Persatuan Insurans Am Malaysia (PIAM)
and is affected by the type of building (detached, non-detached, flats or
apartment), construction classification of the building.
The
basic fire insurance policy covers loss or damage to residential building,
furniture, fixtures and fittings caused by fire, lightning or domestic gas
explosion. This compensation usually covers the
cost of reconstruction, replacement, and repair of damaged property. In
commercial fire insurance, fire insurance is required to safeguard your
buildings owned by the business to
protect the contents of businesses
premises including machinery, equipment, stock, furniture against
damages caused by fire or lightning.
Although
the basic fire insurance policy only covers the building against fire damage,
lightning and domestic gas explosion, home owner can extended the fire
insurance policy to include perils such as Riot, Strike &
Malicious Damage, Explosion (with / without Boilers), Flood, Aircraft Damage,
Earthquake, landslide, Impact Damage
(including/excluding own vehicles). All of the extensions will come with
additional charges added to the insurance premium.
What to do if we are planning to
take up a fire insurance policy for our house?
Since the fire insurance can add
extensions to tailor made your needs, it is important for home owner to
understand what is his requirements to fulfill his/her needs. There are no cheapest
home insurance or best home insurance but its suitability. Below are a few
things to consider before taking up fire insurance for your property:
Type
of property: If you are an house owner of a
non-landed property, Management Corporation already bought master fire
insurance for the condo or flat. You can however buy it for double protection
or consider other protection plans like homeowners insurance or household
insurance (home contents insurance).
Evaluate the location in which your property
is located: This is important to better protect
your property against damages caused by geographical natural disaster like
flood, theft and impact damages. Fire
insurance extended to include other perils providing you a more comprehensive
coverage tailor to your needs for the location of your property.
Determine
the appropriate sum insured: It
is important that you factor in the cost of rebuilding or repairing your
property when determining the sum insured.
Fire
insurance in the event of property damages
You must notify your insurance company in writing
with full details the soonest the best.
If temporary repairs are required to stop further
damage, you should ensure that these are carried out immediately and the receipt
of repair work must be kept as part of your fire insurance claims. An example
of temporary repair is to use a waterproof material to cover damaged area to
avoid further damage by rain water.
If the repairs required permanent nature, you should
obtain estimates and send them to your insurance company for approval.
Settlement
of fire insurance claims
The compensation amount depends on the basis of the fire
insurance cover:
Indemnity basis will pay the cost of repairing the
damaged building exclude the amounts for wear and tear and depreciation; or
Reinstatement value basis will pay the full cost of
repairing the damaged building without any deductions for wear and tear or
depreciation, provided that the sum covered is adequate to cover the total cost
of reinstatement.
In the absence of any special provision, the fire
insurance policy cover will be on indemnity basis. If you want to be covered on
reinstatement basis, your fire insurance policy should have the relevant clause
attached to it.
Excesses,
being the amount you have to bear before your insurance company indemnifies
you. It is applied to certain perils, such as landslide, windstorm, and flood
claims.
Making
a fire insurance claims
You must submit your fire insurance claims with all
supporting receipts and documents to your insurance company. The more
information you have on the damaged items, the easier and faster it will be for
your insurance company to assess your claims. In the event of cooperation
requested by investigators appointed by insurance company to assess your claims,
remember to cooperate with them to the fire insurance claims faster and smooth.
 |
| Fire |
Tuesday, 13 May 2014
Malaysia Car Insurance
In Malaysia, motor insurance is compulsory for all
motor vehicle under the Road Transport Act 1987. To prevent the case such as motor
vehicle owners not purchase motor insurance, government had implemented the
rule that motor vehicle owner need to have motor insurance before they can
renew road tax.
There are 3 main types of motor insurance in
Malaysia, ranging from the most basic protection to more in-depth assurance to
its driver, namely Third Party Cover, Third Party, Fire and Theft Cover, and
Comprehensive Cover.
Third Party Cover
In the motor insurance terms, the “first party” is you (the driver), the “second party” is the motor insurance company and the “third party” is everyone else. A Third Party Cover is third party car insurance that insures you against any injuries or deaths caused to another person, as well as loss or damage to a third party property caused by your vehicle.
Fundamentally, third party car insurance provides the minimum level of cover to you as required by the law. With third party insurance, you cannot claim for any damages to your own vehicle. Its third party liability means that only third party (not your own vehicle) can claim for damages from your insurer, and you cannot claim for damages to your own vehicle in any accidents, fire damage or stolen.
Third party insurance is normally offered at a cheaper premium if compared to Comprehensive Cover. Third Party Cover is the minimum level of coverage a motor vehicle owner needs to have in order to renew his/her road tax.
People who look for third party insurance are usually those whose cars are old and have completed car loan repayment. Even though Third Party Cover comes with a cheaper premium, with the nature of older cars tend to cause accidents, it could end up costing more.
The process to buy third party insurance is a bit more complicated, as most car insurance companies prefer to deal with Comprehensive Cover. The main reason is the recent rise in road accidents and claims cost, which had made third party car insurance less profitable for insurance companies. In addition, it is rather difficult to estimate the value of old motor vehicle, which is needed to work out the premium on the insurance. Some car insurance companies do not accept the old cars aged above 15 years, while other insurance companies value the 15 years old and above old cars at RM10,000.
For those who are looking at Third Party Cover, there will have a “loading” which a driver has to bear. The “loading” is an additional amount added to the insurance premium to reflect the additional and higher risk the insurance companies had to bear. Some insurance companies require the driver to get Personal Accident Insurance in order to secure third party insurance.
Third Party, Fire and Theft Cover
Basically, Third Party, Fire and Theft cover is the same as Third Party Cover,
with the added car insurance coverage of fire damage and theft
to your motor vehicle. Its third party liability is to protects you (the driver) against claims by a third party,
be it bodily injuries or death, third party property loss or damage caused by
your vehicle and with additional protection to fire damage and theft to your
car.
Comprehensive Cover
A Comprehensive Cover provides wider range of protection for both driver and third party. With a Comprehensive Cover, you basically enjoy the same coverage as in a Third Party, Fire and Theft Cover, but with the added car insurance coverage of own motor vehicle damages.
Comprehensive Cover normally only available for motor vehicle that have not exceed 15 years old. It is advisable to get a Comprehensive Cover for your car insurance if your car is expensive, prone to theft or the repair cost tend to be expensive (especially imported cars with less spare parts available and not popular in Malaysia car market), as the more valuable your car is, the more protection value it offers to you.
Stolen car compensation
The standard car insurance practice for stolen motor vehicle or total loss claims is to compensate the policyholder based on the market value of the car at the time of loss (or damage), or the sum agreed in the policy, whichever is lower. However some insurance companies reimburse the policyholder based on an agreed car value specified in advance in an agreement with the policyholder, rather than the normal car market value.
Exclusions that not protected by above 3 types of car insurance policy:
1.
Your own death or bodily injury
2.
Your liability against claims from your passengers
3.
Theft of non-factory fitted vehicle accessories (car
stereos, leather seats, sports rims etc)
4.
Consequential loss, depreciation, wear and tear,
mechanical or technical breakdown failures or breakages
5.
Loss/damage arising from an act of nature, e.g. flood,
landslide
However,
you may pay additional premium for your car insurance to cover some of the
above exclusions as below:-
Windscreen
Cover the breakage of glass in windscreens, front,
rear and side windows. The damaged windscreen will be replaced and your NCD
will not be affected. Its premium is normally 15% of insured amount.
Legal Liability To Passengers
This coverage protects the Insured against legal
liability to the passenger in the event of a claim.
Legal Liability of Passengers
Covers the legal liability of passengers for acts of
negligence.
Strike, Riot & Civil Commotion
Covers the vehicle against damage caused by strike,
riot and civil commotion.
No Claims Discount
(NCD)
Persatuan
Insurans Am Malaysia (PIAM) has an outline rule for car insurance
companies about discount on no claim car
insurance. If the policy holders do not claim from car insurance
companies for first year and subsequently
years, they will entitle to No Claim Discount NCD from the first year of 25% to
up to 55% in following years as attached NCD image.
This makes a substantial difference
to the overall car insurance premium. If you do claim for damage on your own
car where the damage was caused by you, you NCD will back to square at 0% and
start from beginning. This is car insurance companies intention to encourage people not to claim. If the damage to your
vehicle was by a third party, you will not lose your NCD by claiming from the third
party car insurance
companies. For those who want to replace new
car or sell own old car, remember that NCD is attach to vehicle, not the
driver.
Excess
Excess is the amount that you have
to pay in the event of a claim. For example, if the excess on a car insurance policy
is RM500 and you make a claim of RM1,500, you will need to pay the RM500 and the
rest of RM1,000 will be paid by the car insurance companies.
A Compulsory Excess is stipulated by
PIAM for incidents in which the driver of the vehicle is:
- not listed in the Policy Schedule
- is under 21 years of age
- is a Provisional license driver or held a full driving license for less than 2 years
Loading
A loading is an additional charge on
your policy that the car insurance
companies added to your premium if they need
to bear additional risk, including driver age or experience, age of
vehicle, claims experience, sport and high performance car, carrying capacity, special
vehicles carrying noxious or flammable materials, low loaders, timber/log
carriers & petrol tanker.
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