Strata Titled Property Fire Insurance

The Building and Common Property (Maintenance and Management) Act 2007(" The Act") coming into force on 12 April 2007 in the Peninsular Malaysia.

The powers and duties of the JMB are enumerated by Section 8 of the Act which stated

8. (1)(c) to insure and keep insured the building to the replacement value of  the building against fire and such other risks as may be determined by the Body;

8. (1)(d) to apply insurance moneys received by the Body in respect of damage to the building for the rebuilding and reinstatement of that building;

8. (3) The Body shall be deemed—

(a) for the purposes of effecting any insurance under paragraph (1)(c), to have an insurable interest in the building equal to its replacement value or any value as determined by the Body; and

(b) for the purposes of effecting any insurance under paragraph (1)(d), to have an insurable interest in the subject matter of the insurance.

Intrepretation:
 
The Joint Management Body must insured the following insurance:

1. Fire & All perils Insurance (Min perils Subsidence & Landslip, RSMD & BOW)
 
Building - For all the units that is individually own including all the common property.

In this case when the purchaser have a Loan with the Bank, the purchaser need not buy an additional insurance and can use the individual "Certificate of Insurance" issued from the Master policy.

It should include the following clauses:-

Reinstatement Value (valuation report by an accredited quantity surveyor at least once in 5 years)
Removal of Debris
Architect & surveyor Fee
Rent Clause
 
2. Public Liability Insurance
 
Legal liability to pay compensation for accidental bodily injury or accidental damage to the property to the Vistors for using the common property of the Building.

 
Under Section 4 Establishment of a Joint Management Body

(2) The Body established by subsection (1) shall be a body corporate having perpetual succession and a common seal.

(3) The Body may sue and be sued in its name.

(4) The Body shall comprise the developer and the purchasers.
 
Intrepretation:
 
As the JMB is a body corporate the volunteered committee members can now be sued by the purchasers for Breach of Duty. An E&O or a PL policy to protected the personal liability of the individual committee.

 
3. Error & Ommission or Professional Liability Insurance
 
The Insurer will pay on behalf of any Insured all Damages resulting from any Claim for any Breach of Duty of the Insured.
 
N/B The policy should be placed immediately after the formation of the JMB. 
 
Strata Title Risks Solution:
 
Products Offered:
  1. Fire Insurance
  2. Fire Consequential Loss
  3. All Risk Insurance
  4. Crime Insurance ( Burglary & Money)
  5. Plate Glass Insurance
  6. Machinery Breakdown Insurance
  7. Public Liability Insurance
  8. Property Terrorism
  9. Professional Indemnity for Joint Management Body ( JMB) or Management Corporation (MC)
FIRE INSURANCE FOR STRATA-TITLED PROPERTIES

FREQUENTLY ASKED QUESTIONS (FAQs)
 
 
 
Fire Rating Structure
 

TARIFF RATE
* FOR RISKS RM10M & BELOW PER LOCATION

SELF-RATE
*FOR RISKS ABOVE RM10M AND UP TO RM30M PER LOCATION

SPECIAL RATE
*FOR RISKS ABOVE RM30M AND UP TO RM300M PER LOCATION

INDUSTRIAL ALL RISKS (IAR)
*FOR RISKS ABOVE RM50M AND UP TO RM300M PER LOCATION

LARGE & SPECIALIZED RISKS (LSR)
*FOR RISKS ABOVE RM300M PER LOCATION

 


 

 
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Ang Ah Meng,
May 1, 2009, 2:13 AM
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Ang Ah Meng,
May 1, 2009, 2:12 AM
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Ang Ah Meng,
Nov 21, 2009, 4:30 PM
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Ang Ah Meng,
Nov 19, 2009, 8:24 PM
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Ang Ah Meng,
Nov 19, 2009, 8:25 PM
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Ang Ah Meng,
Nov 19, 2009, 8:26 PM
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Ang Ah Meng,
Nov 19, 2009, 8:27 PM
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Ang Ah Meng,
Jun 20, 2009, 5:29 AM
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Ang Ah Meng,
May 6, 2009, 4:19 AM
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Ang Ah Meng,
May 6, 2009, 4:19 AM
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Ang Ah Meng,
May 1, 2009, 2:12 AM
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