Malaysia Insurance Law - Property Insurance Law - Sum Insured for houseowners and householders insurance

Legal Forms | Legal Documents | Tell-A-Friend | Legal Terms Dictionary | Today's News

INSURANCE LAW - Property Insurance

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

Sum Insured

Houseowner and Householders Insurance

Condition 5 of your policy requires that the Sum Insured (SI) to be declared by you should represent not less than the full value of the property to be insured.

This is because the Sum Insured is the amount upon which the premium is calculated. It would not be fair for you to understate the value of your property just to save on the premium as this would mean that you have not contributed your fair share of the premium to the common pool.

In such a case, your insurers can penalize you by making you bear a portion of the loss yourself. This penalty is called the application of the condition of Average.[see Condition 6]

Thus, is you under-insure your property by 30%, the claim settlement would likewise be reduced by 30% "What you pay for is what you get"

To avoid being penalized, ensure that the respective Sums Insured are adequate to cover the values of the building and/or the contents of your home.

Last Updated : ©1999-2000
Lawyerment is a leading Malaysian legal site for consumer & small businesses. It provides general legal information to help people understand their legal rights in Malaysia, but it is not a substitute for personal legal advice from an attorney. You are welcome to view Lawyerment for your own personal, non-commercial purposes, AS IS, subject to our disclaimer & conditions of use & Privacy Policy. Lawyerment is a unit of Magnificent Communication. 1999-2000 - All rights reserved.
Comments ? Please send them to webmaster@lawyerment.com.my
Advertising Opportunities | Contact Us