Malaysia Insurance Law - Property Insurance

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INSURANCE LAW - Property Insurance

Related Topics : Auto Insurance . Business Insurance . Disability Insurance . Health Insurance . Insurer's Bad Faith . Life Insurance Law . Property Insurance

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I WISH TO CANCEL MY HOUSE INSURANCE POLICY MIDWAY, CAN I DO THAT ?

You have the right to cancel your policy at any time. All you have to do is to notify your Insurers of your intention in writing [Please refer to condition 12 of your policy]. You're entitled to a refund of premium for the balance of unexpired period calculated on the Customary Short-Period Rate.

Your Insurers may also cancel your policy by giving you 7 days notice in writing in the form of a registered letter to your last known address. The refund premium for the unexpired period will be calculated on a pro-rate basis. However, please note that your policy automatically lapses if you sell or dispose of the insured property.

WHAT ARE THE DOS AND DON'TS WHEN PROPOSING FOR AN INSURANCE FOR YOUR HOUSE ?

Do:
Disclose all facts materials to the risks to be insured
Read the "Important Notice" appearing on Proposal Form
Answer all questions fully and accurately
Complete and sign the Proposal Form yourself
Make an inventory of the contents of your home
Keep receipts, take photographs and other documentary proofs in respect of jewellery and other expensive items to be insured.

Don't :
Leave any questions unanswered
Use ticks and dashes to answer the questions
Withold or misrepresent any material fact. Otherwise, the policy issued to you will be void, meaning that your claim can be repudiated. Please refer to Duty of Disclosure.
Underinsure as you will be penalized by the application of "average" in the event of a claim.
Forget to pay the Premium within the terms allowed by your insurers.

WHAT ARE THE DOS AND DON'TS AFTER A LOSS OR AN ACCIDENT AS A HOUSE OWNER OR HOUSE HOLDER INSURANCE ?

Do:
Notify or inform you Insurers immediately on the happening of a loss
Make a police report of all cases involving theft
Send to your Insurers all writs claims from third parties immediately on receipt to your Insurers
Cooperate with your Insurers and their loss adjusters
Communicate in writing with your Insurers
Behave "as if you are not insured" by mitigating all losses.

Don't :
Admit liability, pay or negotiate with the third-party in respect of claims under Section IIIB
Deliberately inflate your claim in the mistaken belief that your insurers will systematically reduce it anyway. This is not only not true but it could also cause your claim to be forfeited
Leave the insured property exposed to further losses without reasonable precautions being taken to ensure its safety after an accident.

WHAT ARE THE DOS AND DON'T TO ENSURE A VALID POLICY AS A HOUSE OWNER OR HOUSE HOLDER INSURANCE ?

Do :
Comply with all your policy's Terms, Conditions and Endorsements
Maintain your home in a proper state of repair (read Condition 14)
Make good any defects discovered in the building as soon as possible to prevent accidents (see Condition 14)
Allow your Insurers to examine your home if they require to do so at all reasonable times (read Condition 7d)
Communicate in writing with your Insurers

Don't :
Allow or use your home for manufacturing or storage of merchandise.

WHAT IS THE LIMITS OF LIABILITY UNDER THE HOUSEOWNERS OR THE HOUSEHOLDERS POLICY ?

The maximum either the Houseowners or the Householders policy would compensate you in the event of a claim will be as follows :

	Section	Limit of Liability
Building	I	Sum Insured (SI)
Contents	IIA	Sum Insured (SI) [see restrictions]
Temporary Removal	IIB	15% of SI on contents
Damage to Mirrors	IIC	not specified
Death of Insured	IID	RM10,000 or 50% of SI on contents
Loss of Rent	IIIA	10% of relevant SI
Public Liability	IIIB	RM50,000*
* note that this limit may be increased if required, by paying the appropriate additional premium.

ARE THERE ANY EXTENSIONS OR OPTIONAL COVERS AVAILABLE IF THE HOUSEOWNER'S OR HOUSEHOLDER'S POLICY DOES NOT GIVE ME THE COMPLETE COVERAGE ?

If you feel that your Houseowner's or Householder's policy does not give you the complete coverage that you desire, you may opt to buy additional cover by paying a certain additional premium.

Some optional covers available are as follows :

Full Theft
Plate Glass
Professional Fees
Reinstatement Value Clause or Agreed Value Clause
Removal of Debris
Riot & Strikes and Malicious Damages

There are many more optional covers available. For more information, please check with your insurers, agents or brokers.

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