PROPETRY INSURANCE

Fire and Special Perils

The basic fire insurance policy provides cover for physical loss of or damage to the property insured as a result of:

• • Fire,

  • Lightning or

  • Domestic explosion

Main Exclusions under a Basic Fire Insurance Policy:

• • Earthquake, volcanic eruption or other convulsion of nature;

  • Typhoon, hurricane, tornado and the like;

  • Burning of property by order of any public authority;

  • Subterranean fire;

  • Explosion other than explosion of gas used for illuminating and the clearing of land by fire;

  • Goods held in trust or on commission;

  • Bullion or unset precious stones;

  • Manuscripts, plans, drawing or designs, patterns, models or moulds;

  • Securities, obligations or documents of any kind, stamps, coins or currency notes, cheques, books of account or other business books or computer system records;

  • Explosives;

  • Loss by theft during or after occurrence of fire;

  • Loss or damage to property resulting from its own fermentation, natural heating or spontaneous combustion.

In addition to the basic fire, lightning and explosion cover the fire insurance policy can be extended to include various extraneous or special perils upon payment of additional premiums.

Special Perils

• Aircraft Damage

• Earthquake and volcanic eruption

• Storm tempest

• Flood Damage

• Explosion

• Impact Damage

• Bursting or overflowing of water tanks, apparatus or pips

• Riot, Strike and Malicious Damage

• Electrical Installation Clause B

• Bush or Lallang Fire

• Subsidence and Landslip

• Spontaneous Combustion

• Damage by falling tress or branches and objects therefrom

• Sprinkler leakage

• Smoke Damage

All Risks

All risks insurance is wider in scope compared to fire and special perils insurance because it covers against any ‘accidental damage’ as well as ‘theft’. Some all risks policies are issue on ‘named perils’ basis, for example fire, water damage, theft and accidental damage while others provide cover for ‘any physical loss of damage by a misfortune not specifically excluded’.

Main Exclusions

• Loss or damage consequent upon riot, strike, civil commotion, earthquake or volcanic eruption;

• Loss or damage arising from wear and tear, depreciation, gradual, deterioration, moth, vermin or from any process of cleaning or restoring any article;

• Scratching and breakage of lenses, glass or other brittle substances, mechanical or electrical breakdown or derangement of any mechanical or electrical equipment;

• Loss or damage arising from confiscation or detention by customs or other official authorise;

• Theft by deception.

The business interruption policy covers consequential losses that arise following material damage which directly results in a necessary interruption of operations. It is quite possible for a small amount of material damage to cause a serious business interruption. For example, lighting or fire may cause minor damage to some equipment but may shut down a production line until the damaged machinery is restored to its working condition. The loss can be aggravated if the spares are unavailable locally and the necessary overseas express freight charges will add cost to minimize the waiting period.

Business interruption insurance EXCLUDES the following types of losses: -

• Loss of production that results from industrial action or sabotage

• Cost of recovering lost reputation

• Loss of customers or business

• Loss of key personnel or skilled manpower

• Loss due to bankruptcy or closure of business

• Loss of goodwill, copyright, trademarks and economic losses

Houseowners Insurance

The houseowner policy is designed to cover buildings occupied as private dwelling houses, flats and apartment used solely for residential purposes including fixtures and fittings, garages out-buildings, wall, gates and fences against loss or damage caused by specified or named perils.

Specified perils under houseowners Insurance:

1.       Fire, Lightning, Thunderbolt and Subterranean Fire

2.       Bursting or Overflowing of Domestic Water Tanks, Apparatus and/or Pipes

3.       Theft by actual, forcible and violent means

4.       Explosion

5.       Earthquake and volcanic eruption

6.       Aircraft and other aerial devices and/or articles dropped therefrom

7.       Impact with any of the buildings by any road vehicles or animals not belonging to or under the control of the  

          Insured or any member of his family

8.       Hurricane, Cyclone, Typhoon, Windstorm

9.       Flood but excluding loss or damage caused by subsidence or landslip

10.   Rent (up to 10% of total sum insured) if building is rendered uninhabitable by insured peril.

11.   Public Liability up to RM 50,000.00 including legal expenses with insurer’s consent.

Main Exclusions under houseowners insurance policy:

• Loss or damage caused by hurricane, cyclone, typhoon or windstorm to any building under construction, reconstruction or repair, meta smoke stacks awning, blind, signs and other outdoor fixtures and fittings including gates and fences;

• Loss or damage causes by subsidence and landslip except where it is occasioned by earthquake or volcanic eruption.

Householders Insurance

The householder’s insurance policy covers household goods and personal effects kept in the private dwelling home or residence. The total value of jewellery, gold and silver articles, etc is normally restricted to one-third of the total sum insured on contents. The scope of cover is exactly the same as the specified perils from items 1 to 11 of houseowners insurance policy mention above and includes:

12.       Property temporarily removed but remaining in Malaysia up to 15% of the total sum insured on contents.

13.       Property in transit or on the person but excluding loss or damage by earthquake, volcanic eruption, 

           hurricane, cyclone, typhoon, windstorm and flood, cover up to 15% of the total sum insured on contents.

14.       Breakage of Mirrors excluding hand mirrors.

15.       Fatal injury causing death (within 3 months) up to RM 10,000 or one half of total sum insured on contents 

           whichever is lower.

16.       Loss or damage caused by any of the insured perils to servants clothing and personal effects.

Burglary Insurance

Theft of property usually arising out of violent entry into or exit from the premises is covered by burglary insurance. The policy provides cover against loss off or damage to insured property usually on a business premises (for example, stocks and materials-in-trade, furniture, office equipment, plants and machinery and personal effects of employees). Damage to the business premises (either to the building or property insured) following a burglary or housebreaking is covered even if no term wee stolen as a result.

Burglary insurance can be insured on full value or no first loss basis:

1.       Full value is the actual total value of the property to be insured. Such basis is normally adopted for high value good that are easily disposable and which can be carted away be thieves in one attempt.

2.       First loss sum insured represents the maximum probable loss estimated by the insured considering that the property is heavy or bulk and may be difficult for thieves to remove the entire lot in one attempt. The first loss sum insured represents a percentage of the actual total value will attract a higher premium than a higher percentage of say 50% as the level of exposure is reduced.

Main Exclusions under Burglary Insurance

• Depreciation, consequential loss, loss of market and losses discovered at stock-taking;

• Loss or damage occasioned by fire or explosion;

• Loss or damage brought about by or in collusion with the insured members of his household employee servants or any   

          person lawfully on the premises;

• Loss or damage when the premises are left vacant or abandoned.