FIRE INSURANCE AND FIRE CONSEQUENTIAL LOSS INSURANCE
Property Insurance
- Fire & Perils Insurance
- Fire Consequential Loss Insurance
- All Risks Insurance
- Burglary Insurance
- Marine Cargo Insurance
- Money Insurance
- Plate Glass Insurance
- Packaged Insurance
- Office Premises occupied as Office.
- Retail Outlets, Shops, etc.
- Restaurant, Café, Coffee Shop, etc.
- Services like Bakery, Salon, Laundry, Clinic, Tuition Centre, etc.
- SME / Light Manufacturing Industries, etc.
- Solutions for Industrial Operations, Shopping Complexes, Hotels, Universities, Colleges, Schools, Apartments, Condominiums, etc
Standard Fire and Special Perils Insurance
Comprehensively protect your tangible assets against fire and other
unpredictable perils. Affordable coverage and add on options make this
an even more attractive option for you.
Standard Fire and Perils Insurance is a comprehensive policy
which covers all tangible assets normally exposed to the risk of fire
and natural perils. This policy, vital for industry and trade groups,
offices, households, etc generally covers loss or damage to buildings,
plant-machinery, tools, instruments and accessories, furniture, fixtures
and fittings, electrical installations, stocks in trade and also work
in progress; due to fire and Act of God (natural) perils. Being a
comprehensive package, this offers a wide scope of cover for an
affordable price.
What is covered under the Insurance?
Buildings, plant and machinery, furniture, fixtures and fittings,
electrical installations, stocks, stocks in trade including work in
progress etc belonging to any industry, offices, service occupancies,
households are covered against losses due to:
- Fire
- Lightning
- Explosion / implosion
- Aircraft damage
- Riot, strike and malicious damage (RSMD)
- Storm, cyclone, typhoon, tempest, hurricane, tornado, flood and inundation (STFI)
- Impact damage
- Subsidence and landslide including rockslide
- Bursting and/or overflowing of water tanks, apparatus and pipes
- Missile testing operations
- Leakage from automatic sprinkler installations
- Bush fire
Add-on Options
- Terrorism
- Earthquake Fire and Shock
- Spontaneous combustion
- Removal Of Debris (exceeding 1% of claim amount)
- Architects, Surveyors, Consulting Engineers fees (exceeding 3% of claim amount)
- Spoilage Material Damage Cover
- Leakage and Contamination Cover
- Deterioration of stock in cold storage premises
- Molten metal spillage Cover
- Forest fire
- Impact damage due to Insured’s own Rail/Road vehicles
- Omissions to insure additions, alterations or extensions.
- Temporary removal of stock
- Loss of rent
- Start up expenses
What is not covered under this insurance?
- Terrorism (unless add on cover is chosen)
- Earthquake (Fire & Shock) (unless add on cover is chosen)
- Spontaneous combustion (unless add on cover is chosen)
- Burning of property by order of any Public Authority
- Property undergoing any heating or drying process
- Explosion of boilers (other than domestic boilers)
- Total or partial cessation of work
- Permanent or temporary dispossession by order of Government
- Burglary, House breaking, theft, etc
- Normal cracking or settlement or bedding down of new structures
- War or war like operations, Nuclear perils
- Pollution or contamination
- Over-running, excessive pressure, short circuiting etc
Loss of Profits Insurance
Protect yourself against the ebb and flow of business fortunes with
Loss of Profits insurance that helps cushion you financially in
disadvantageous circumstances.
Insurance policies cover the physical damage to any properties
that are insured against specified perils. But what about the financial
losses incurred in terms of reduction in turnover due to the
interruption in the business operations while the damaged property is
being replaced/rebuilt? A Loss of Profits Insurance is the solution. The
Loss of Profits Insurance is a policy that covers the monetary loss
that is likely to occur due to a break in business activity which may be
one of the consequences of physical loss of property due to an event
that is already insured for. This insurance policy can be acquired by
individuals or firms in conjunction with a prior Standard Fire and
Perils Policy. This policy can also be issued in conjunction with
machinery breakdown policy in which case it shall be called "A Machinery
Loss of Profit Policy”
What does it cover?
- Loss of Gross Profit
- Increase in cost of working
- Standing charges incurred in maintaining the business
What is not covered?
- Loss of gross profits, which is not consequent upon property damage due to an insured peril
- Loss due to material damage to property, difference between value of
stock at the time of fire and the value at the time of subsequent
replacement, deterioration of undamaged stock after fire
- Cost of preparing fire and loss of profits claim
ACPG MANAGEMENT SDN BHD
Your Trusted, Experience and Largest
Malaysia Risk Management Insurance Solution Services Provider since year 1989.
Fire Insurance Policy
Fire insurance in Malaysia (ACPG MANAGEMENT SDN BHD)
ACPG Insurance Hotline: 603-9286 3323 or
Email: corporate@walkinonline.com
The fire insurance policy have Basic Cover as Standard Fire and Special Perils Policy.
BASIC COVER
The basic fire policy covers loss of or damage to residential building, furniture, fixtures and fittings caused by or arising from:
Damage by fire & lightning
Damage by explosions of domestic boiler or domestic gas cylinder not forming part of a gas work
Damage by water or other extinguishing agents used to put out the fire
Damage resulting from gaining access to a fire
Smoke damages caused by fire
INTEREST / PROPERTY INSURED
Items that can be insured are:
Building, renovation
Furniture, fixtures and fittings
Personal Effects & Household goods
Dwellings, Offices, Shops, Hospitals (Located outside the compounds of industrial/manufacturing risks)
Industrial / Manufacturing Risks
Utilities located outside industrial/manufacturing risks
Machinery and Accessories
Storage Risks outside the compound of industrial risks
Tank farms / Gas holders located outside the compound of industrial risks
PREMIUM & EXTENSIONS
The basic premium is calculated based on a standard fire tariff rate prescribed by Persatuan Insurans Am Malaysia (PIAM) and is affected by the class of construction of the building and the sum insured.
The basic policy can be extended to cover loss of or damage to property caused by the following peril at an additional premium:
Riot, strike and malicious damage;
Explosion;
Impact damage by own vehicles and third party vehicles;
Aircraft Impact Damage;
Bursting and / or overflowing of water tanks apparatus and pipes (excluding sprinkler system);
Bush / Lalang Fire;
Spontaneous combustion;
Storm and Tempest;
Flood;
Earthquake and volcanic eruption;
Damage by falling trees or branches and object there from
Exclusions
The following are excluded from insurance coverage:
Loss or damage caused by war, civil war and kindered perils
Loss or damage caused by nuclear activity
Loss or damage to the stocks in cold storage caused by change in temperature
Loss or damage due to over-running of electric and/ or electronic machines
Claims
Claims In the event of a fire loss covered under the fire insurance policy, the Insured shall immediately give notice there of to the insurance company. Within 15 days of the occurrence of such loss the Insured should submit a claim in writing giving the details of damages and their estimated values. Details of other insurances on the same property should also be declared.
Property Insurance Malaysia
Insurance for Residential Property
Types of Insurance Policies
There are three main types of policies to protect your property and household goods:-
- Fire - this policy covers loss / damage to your property building and contents caused by fire, lightning and explosion of gas used for domestic purposes only.
- Houseowner - this policy covers your building, including its fixtures and fittings, garages, walls, gates and fences, against several specified risks.
- Householder - this policy covers your household goods only, i.e. the moveable possessions in your property, against specified risks.
If you wish to have comprehensive cover for your property and its contents, you should buy both houseowner and householder policies.
Coverage for each type of policy
The table below shows the main perils covered as well as exclusions under the three insurance policies:
|
Type of Policy |
| Cover |
Fire |
Houseowner |
Householder |
| Fire, lightning and explosion caused by gas used for domestic purposes |
Yes |
Yes |
Yes |
| Loss / damage caused by aircraft, explosion (other than gas used for domestic purposes), road vehicles or animals, bursting or overflowing of water tanks or pipes, electrical installations, windstorm, tempest, earthquake, volcanic eruption and flood |
No* |
Yes |
Yes |
| Theft with violent / forcible entry of exit |
No |
Yes |
Yes |
| Loss of rental |
No* |
Yes |
Yes |
| Liability to third parties for accidents in your property |
No |
Yes |
Yes |
| Compensation for death of insured |
No |
No |
Yes |
| Subsidence and landslip |
No* |
No* |
No* |
| Riot, strike and malicious damage |
No* |
No* |
No* |
Responsibility for Purchase of Insurance
If you are buying a property from a developer, which is under construction, the insurance of the property is the responsibility of the developer. You only need to insure the property upon vacant possession from the developer.
For properties with strata titles such as flats, apartments and condominiums, it is mandatory for the Management Corporation (MC) to purchase fire insurance for the whole building. The individual unit owner is required to pay to the MC his/her respective premium portion. At the same time, if the unit is purchased through a loan, the financier would normally require the unit owner (borrower) to obtain an insurance policy for the unit, leading to a situation of double insurance.
But if you have obtained the loan from a financial institution under bank Negara Malaysia's supervision, borrowers will not have to buy another insurance policy for their units. Instead, these financial institutions will accept the insurance policy already purchased by the MC subject to terms and conditions. In this instance, you need to obtain the individual certificate of the master policy from the MC and present it to your financial institution as evidence of insurance. If your loan is not from a financial institution under the supervision of Bank Negara, you can negotiate with the institution concerned.
What you should know when buying insurance cover for your property Insured value / sum assured.
Ensure your property is adequately insured at all times, and take into account the renovations and enhancements made to your property.
You should also decide on the basis of compensation for loss/damage to your property, whether it is on indemnity or reinstatement basis, and the sum insured shall reflect the choice. When purchasing a householder policy, you must ensure that the sum insured reflects the coverage needed to replace all the contents in your property. You must also declare items that you want to insure specifically to ensure that you get the full compensation in the event of their loss/ damage. You may also take additional coverage for valuable items such as artwork, jewellery, antiques or collectibles - total value of jewellery shall not exceed one third of The Total Sum Insured on Contents.
It is also important to keep documents that show the proof of ownership and the value of items insured. Photographs of your valuable items, if available, may also be very helpful in the event of a claim.
What you should know when making a claim
If your property suffers damage / loss
- You must notify your insurance company in writing with full details as soon as possible
- You must take the necessary measures to mitigate further loss/worsening of the situation.
- If temporary repairs are required to stop further damage, you should ensure that these are carried out immediately and the bills of work done should be kept as part of your claim. An example of temporary repair is to use a waterproof polyethylene/ plastic sheet to cover damaged area to avoid further damage by rain water.
- If the repairs required are of a permanent nature, you should obtain estimates and send them to your insurance company for approval.
Settlement of Claims
The compensation amount depends on the basis of the cover:
- Indemnity basis will pay the cost of repairing the damaged building less the amount for wear, tear and depreciation; or
- Reinstatement value basis will pay the full cost of repairing the damaged building without any deductions for wear, 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 cover will be on indemnity basis. If you want to be covered on reinstatement basis, your policy should have the relevant clause attached to it.
Excesses, being the amount you have to bear before your insurance company indemnifies you, are applicable for certain perils, such as overflowing of domestic water tanks, windstorm, earthquake and flood claims.
Making a Claim
- You must submit your claim with all supporting information and documents to your insurance company. The more information you have on the damaged items, the easier it will be for your insurance company to asses your claim.
- You should cooperate fully with the adjusters/ investigators appointed by your insurance company to asses your claim.
FIRE INSURANCE MALAYSIA
Introduction / coverage
The rates for fire insurance is governed by the revised fire tariff. Ratings are based on construction classifications and trades to which the enclosed tables must be referred and adhered to
Scope of Cover
Basic cover
The basic fire insurance policy covers loss or damage to the property insured cause by:-
Fire
Lightning
Explosion of domestic boiler or domestic gas cylinder not forming part of any gas work
Extension of cover for additional perils
The policy may be extended to cover loss or damage caused by other named perils as follows:-
- Perils
|
Premium Rate |
| a. Aircraft and other aerial devices and / articles dropped there from |
0.005% |
| b. Earthquake and Volcanic Eruption |
0.010% |
| c. Storm Tempest |
0.015% |
| d. Flood |
0.086% |
| e. Explosion |
Industrial without boilers |
0.006% |
|
Industrial with boilers |
0.008% |
|
Non-industrial without boilers |
0.005% |
|
Non-industrial with boilers |
0.008% |
| f. Impact Damage |
|
0.004% |
| Bursting or overflowing of water tanks apparatus or pipes |
|
| -Building exceeding 5 storey including mezzanine |
0.006% |
| -Other |
0.005% |
| g. Electrical installation clause (A) |
NIL |
| h. Electrical installation clause (B) |
0.056% |
| i. Bush / Lallang Fire |
0.005% |
| j. Subsidence & landslip |
0.081% |
| Full Cover |
0.10125% |
| k. Spontaneous Combustion ( by fire only) |
0.081% |
| Spontaneous Combustion ( full cover ) |
0.161% |
| l. Riot strike and malicious damage |
-Residential properties |
0.010% |
|
-Other than residential properties |
0.014% |
| m. Damage by falling trees or branches and objects therefrom |
0.010% |
| n. Leakage of sprinkler system |
-Buildings |
0.005% |
|
-Contents |
0.025% |
| |
Premium loading on basic rate |
Loading |
| a. |
i) spray painting with warranty 24 A |
15% |
|
ii) spray painting with warranty 24 B |
35% |
|
iii) Powder spray painting with warranty 25 A |
10% |
|
iv) Powder spray painting without warranty 25 B |
20% |
| b. |
Liquified petroleum gas (LPG) (applicable to industrial
risks, Non-industrial risks if more than 110 lbs of LPG is stored and
Retail risks if more than 15 lbs LPG is stored. |
|
|
i) With warranty 22 |
NIL |
|
ii) Without warranty 22 |
10% |
| c. |
Hazardous good warranty – waiver of warranty 3 A (warranty 3B must be used and the loading is on Warranty 3 A’s rate ) |
25% |
| d. |
Floating stocks-unnamed location
(conditions in Rules 1.12.2 must be complied )(highest rate applicable) |
25% |
Minimum information required for a quotation for fire insurance
Name of insured
Nature of occupation
Location of risk
Construction of building
Sum insured
Claims history
Deterioration of Stock in Cold Storage Insurance
Deterioration of Stock in Cold Storage Insurance policy provides coverage against loss due to deterioration of stock in the cold-storage rooms following from material damage to the refrigeration plant which is indefinable under the Machinery Breakdown Insurance.
Duration of Deterioration of Stock in Cold Storage Insurance cover is for one year. You need to renew your insurance policy annually.
Growing Trees Insurance
Growing Trees Insurance is designed specifically to cover Plantation Risks, i.e. Rubber Plantation, Oil Palm Plantation and Cocoa Plantation. This insurance covers loss of or damage to the Insured Trees caused by Fire or Lightning and other specified perils agreed by the Company.
Fire Consequential Loss Insurance Malaysia
The fire policy only covers physical loss or damage to the property insured but does not cover loss of profit arising from such physical damage. As a result of the loss or damage to the physical assets, the Insured is unable to carry out its planned level of business, thus leading to a fall in gross profits.
The policy is designed to cover during the period of interruption:
CONTINUING OVERHEAD EXPENSES - which have to be met out of reduced earnings such as rent, taxes, interest on debentures, mortgages and loans
INCREASE IN COST OF WORKING - necessarily incurred to overcome or to minimise the effects of damage upon the business such as renting of temporary premises, hiring of machinery or extra labour costs
LOSS OF NETT PROFIT
WAGES of employees not gainfully employed during the interruption period and payments to employees whose services are no longer required.
Apart from the policy period, there is also the indemnity period which is the maximum length of time likely to elapse before the loss or damage can be reinstated and the earnings of the business restored to their pre-loss situation.
The sum insured should represent the estimated annual gross profit and correspondingly be increased if the indemnity period is more than twelve months giving due consideration for variations and trends.
To encourage adequate cover at all times, up to 50% rebate of premium is allowed if the estimated profit levels are not achieved.
Business Interruption Policy
ACPG has provided an insurance cover for all the different risks that could affect a business and it insures all the property of the businessman so that he does not have to bear all the losses alone.
However when risks occur like those of a fire break-out or an electrical failure then the business comes ton a standstill as no work can be done on the premises until the problem is fixed.
During this time, even though his damages are covered, the businessman does not earn an income, which is a matter of concern. To deal with this problem ACPG has come up with the Business Interruption plan.
The Business Interruption policy of ACPG General Insurance covers the client for any interruptions in his business caused as a result of an issue that falls within the scope of the Standard Fire And Special Perils Policy. It covers the losses incurred due to a decrease in the production and the rise in the price of production due to a fire or related peril.
In addition to the basic covers ACPG offers its customers various add-on covers under the Business Interruption Plan. The add-ons could cover the auditor’s fees, wage lay-offs, property of the client stored in another place and public utilities.
There are also some exclusions to this Business Interruption policy which are the same as those of the Standard Fire and Special Perils policy. ACPG requests its clients to read the document carefully before signing the agreement.
Fire Consequential Loss Insurance
The fire policy only covers physical loss or damage to the property insured but does not cover loss of profit arising from such physical damage. As a result of the loss or damage to the physical assets, the Insured is unable to carry out its planned level of business, thus leading to a fall in gross profits.
The policy is designed to cover during the period of interruption:
- CONTINUING OVERHEAD EXPENSES - which have to be met out of reduced earnings such as rent, taxes, interest on debentures, mortgages and loans
- INCREASE IN COST OF WORKING - necessarily incurred to overcome or to minimise the effects of damage upon the business such as renting of temporary premises, hiring of machinery or extra labour costs
- LOSS OF NETT PROFIT
- WAGES of employees not gainfully employed during the interruption period and payments to employees whose services are no longer required
Apart from the policy period, there is also the indemnity period which is the maximum length of time likely to elapse before the loss or damage can be reinstated and the earnings of the business restored to their pre-loss situation.
The sum insured should represent the estimated annual gross profit and correspondingly be increased if the indemnity period is more than twelve months giving due consideration for variations and trends.
To encourage adequate cover at all times, up to 50% rebate of premium is allowed if the estimated profit levels are not achieved.
Fire Consequential Loss Insurance Policy
Introduction
The Fire Consequential Loss is taken up to supplement the Fire Policy to enable the Insured to cover his loss of profits during the period in which his business has been interrupted ( as a result of the fire or other perils insured under the fire policy).
We will write Fire Consequential Loss Insurance only if the client satisfies the following criteria:
a) it is genuine business concern
b) has good track record in this business
c) has a proper accounting system
d) has a corresponding Fire Policy insured with our principal insurance company
Scope of Cover
The policy provides indemnity for the following:
Net Profit
Standing Charges i.e. those expenses which continue to exist at usual levels although the business has been
interrupted by fire e.g. Bank Interest, Motor Vehicle expenses, Depreciation etc.
Increase Cost of Working e.g. Overtime, rental of alternative premises or machinery etc.
VERY IMPORTANT NOTE
The policy is not operative unless the material damage claim is paid or liability is admitted in respect of such damage.
Therefore it is important to ensure that covers under both the Material Damage (e.g. Fire) policy and Consequential
Loss policy are identical.
Definition
The policy may insure gross profit on either of the definitions below
Turnover + Closing Stock
Minus
Opening Stock + Specified Working Expenses (SWE)
Gross Profit:
Gross Profit:
(Difference Basis) common SWE's are purchases, freight, power, and wages)
Net Profit + Standing Charges
Net Profit:
Standing Charges: These are fixed expenses that might not diminish proportionately with a reduction in turnover if there is interruption of or interface with the business by any of the Is the net trading profit resulting from the business of the insured at the premises stated in the policy after due provision has been made for all standing charges and other charges including depreciation BUT before deduction of any taxation chargeable of profits.
Gross Profit (Addition Basis)
Turnover :
Indemnity Period:
contingencies insured against or any variable charge which it would be desirable to continue in the interests of the business e.g. Rent, Rates, Salaries, Directors fees.
The money paid or payable to the Insured for goods sold or delivered and/or services rendered in the course of the Insured's business at the premises stated.
The period beginning with the occurrence of the damage and ending not later than "X" months thereafter during which the results of the business shall be affected in consequence of the damage.
Principal Exclusions
Loss of goodwill
Losses due to under-insurance under a fire policy
Depreciation of undamaged stock after fire
Failure to recover debts due to destruction of records
Similar exclusions as accepted by the Fire Policy
Terrorism
Cyber risks - refer to Property Damage Clarification Clause
Covers Available for Extensions
Denial or Prevention of Access
Supplier's extension } Within Malaysia, Singapore
Customer's extension } and Brunei
Public Utilities
Rating
This is generally governed by the Fire rate for the building which, in turn, is influence by the length of Indemnity Period selected.
The fire rate is usually called the 'Basis' rate.
The indemnity period selected should be sufficient to cover the time necessary to resume normal trading activity in the event of a serious fire occurring.
The Sum Insured should always represent the Annual Gross Profit plus Auditor's Fees (if required to prepare a claim in the event of fire). This rule applies even if the Indemnity Period selected is for a period less than 12 months.
Conversely, if the Indemnity Period selected is for, say, 18 months, then the Sum Insured of the Annual Gross Profit must be 1* times the aforesaid gross profit.
The above rating structure is influenced by the length of indemnity period. Under the Inter-Company agreement of Fire Tariff, the scale drawn up for the Con. Loss is as follows:
The following multipliers shall apply in respect of gross revenue, gross rental or gross profit items with or without payroll:
If the maximum indemnity period falls between any two periods as indicated above, the higher multiplier shall be used.
Example
1) Indemnity Period (I.P.) 18 months
2) Annual Gross Profit RM 10 million
3) Fire rate 0.30%
4) Sum Insured for I.P. 18 months is 1.5 times of Annual Gross Profit Premium = RM10,000,000 x 1.5 x 0.30% x 90%
= RM40, 500.00
Underwriting Considerations
Manufacturing and/or Trading and Profit & Loss accounts
Where the building is owned by the insured, then the fire insurance must also be effected with our principal insurer.
Referred Risks
Same as applicable to Fire
Declined Risks
Same as applicable to Fire
Minimum Premium : RM150.00
Maximum Indemnity Period Multiplier
06 months 75% 75%
12 months 100% 100%
18 months 90% 90%
24 months 85% 85%
36 months 80% 75%
48 months 75% 75%
60 months 70% 70%
72 months 65% 65%
FIRE RISK SURVEY
Risk survey is carried out to gather the necessary information for proper and accurate underwriting of risks and to initiate loss control measures. It is carried out primarily under these circumstances:
When considering the acceptance of any prospective risk.
When considering the renewal of any existing risk which has not been surveyed by the Company or the last survey was conducted more than 3 years ago.
Whenever a loss has occurred.
When any specific loss control measures are requested by the Client.
When making an application for special rating or automatic sprinkler installation discount.
Fire Survey
Fire survey should stimulate action to reduce fire hazards, inspire an improve attitude toward fire prevention by management and employees, and provide a record of the findings and actions resulting from the survey.
The following diagram illustrates the major components of fire risk assessment:
Management/Moral Hazards
Process Hazards
Utilities/ Common Hazards
Fire Risk Assessment
Structural Fire Protection
Active/Passive Fire Protection
Equipments
The basic tools of a surveyor are a notebook or clipboard for recording observations, a pen or pencil and possibly, a 15 meter measuring tape.
Person conducting the survey should be equipped with and use personal protective equipment (PPE) such as hard hat, safety shoes, safety glasses and hearing protection devices. Necktie should not be worn and coveralls might be needed to protect his/her street cloths.
Permission
Ask for the permission to survey the premises. Never demand it. Do not be irritated if obliged to wait before receiving attention. Always ask for permission for taking photograph.
Initial Observations
Exterior housekeeping and maintenance, some building construction features and height, security and entrance control, condition of fire brigade access, fire fighting operation ground, location of public hydrants, exposure from surrounding properties, perimeter protection, geographical features such as land use, hill slope and river in the vicinity can be observed before entering the property.
The Survey Process
Spend some times to make sure whoever is in charge of the property understands why the survey is carried out. Information to be gathered during the meeting include trade and occupation, raw materials use, hazardous materials present on the site and type of finished goods. Other important information is previous losses, organization of the work forces, operation hours, general maintenance practice, and future plan. Ask for the manufacturing process flow chart and the site plan if these are available.
Physical inspection must be conducted in the company of the property owner or his/her representative. Whether the premises are surveyed from the front to the back or any other way is the surveyor's choice. Inspection must be done thoroughly and systematically.
No area should be omitted. Every room, basement, corner, store must be inspected. All physical protection of openings and fire protection equipment should be carefully inspected.
The condition of fire/intruder alarm systems should be noted and preferably, tested. However, testing must be carried out only by the owner or his/her representative who know the operation of the system. Similarly, fire pumps must be evaluated and tested if possible. Adequate photographic records of the risk should be obtained. Photographs should include general view on all sides, operation area, store area, adverse and goods features and protection devices (fire and burglary).
Closing Interview
Risk survey should be concluded in a discussion with the person(s) in authority on any conditions that were found seriously endanger the safety of the occupants and the property itself. Mitigation should be explored and the time frame to implement the measures should be agreed by all parties. Surveyor should take this opportunity to express his/her appreciation on the assistance given by the client.
Survey Report
The survey should be properly documented by using the Company's survey report form, which should be accurately filled. Attaching
to the report will be photographs, sketches plans, process flow charts, fire protection plans or any other information and documents
pertinent to the risk.
The report should be dated and signed. The survey report should be forwarded to the Branch office as soon as possible for underwriting evaluation.
Large and Complicated Risks
The survey of large and more complicated risks should only be conducted by the Risk Surveyor/Engineer from the Company.
Contact your respective branch personnel who will liaise with the Surveyor/Engineer. Do not contact the Risk Management and Survey Department of the Company or the Surveyor/Engineer directly.
The following information should be provided to the Branch personnel when requesting a survey:
Name of proposer/prospective client
Location of risk
Trade/Occupation
Existing Insurer and date of expiry of current policy
Details of sum insured
Type of survey (fire/burglary)
Previous losses
Allow a reasonable time for the Surveyor/Engineer to be mobilized, depending on the location of the risk. Assist the Surveyor/ Engineer by arranging the presence of these persons during the survey so that the survey could be carried out smoothly:
Principle management for an overview of the company;
Factory Manager and/or Production Manager and/or Maintenance Manager or their Assistant to explain operation during tour of the premises;
Safety Manager/Officer for overview of the fire protection facilities;
Maintenance technicians for testing of alarm and fire protection equipment.
Any other information and document specifically requested by the Surveyor/Engineer.
PRODUCT DISCLOSURE SHEET
FIRE CONSEQUENTIAL LOSS INSURANCE
(Please read this Product Disclosure Sheet before you decide to take out a Fire Consequential Loss Insurance Policy.
Be sure to also read the general terms and conditions stated in the policy).
1. What is this product about?
This policy provides you with coverage for loss of profits, revenue, rental, standing charges, wages or salaries on payroll basis and increase in cost of working due to business interruption as a result of fire and/or other extended perils.
2. What are the covers / benefits provided?
This policy covers:
• losses resulting directly out of the interruption of or interference with trading or business activity following a fire or any other peril insured under the Fire policy. Provided that there shall be in force a Fire insurance covering the property at the premises and that payment shall have been made or liability admitted under the Fire insurance.
You may select to insure any of the following :
• loss of Gross Profit (Difference Basis or Addition Basis cover)
• loss of Gross Revenue
• loss of Gross Rental
• Standing Charges only (continuing overheads)
• Wages (Dual Basis or 100% or Pro-rata)
• Wages and Salaries on Payroll Basis
• Increased Cost of Working only
• Auditor’s fees or Professional Accountant’s charges
Duration of cover is One year. You need to renew your insurance policy annually.
3. How much premium do I have to pay?
The total premium that you have to pay may vary depending on the Sum Insured, the type of trade/occupation of
the premises and the underwriting requirements of the insurance company:
• Sum Insured
• Rate Applicable: _____________%
• Additional Cover : RM___________
The estimated total premium that you have to pay is: RM___________
4. What are some of the key terms and conditions that I should be aware of?
Some of the key terms and conditions that you should be aware of are:
• Duty of disclosure - you must give all the facts in your application form fully and faithfully otherwise your policy may be void.
• Change in Risk – you must inform the company or your agent in writing on any material changes during the policy period so that the necessary amendments are endorsed into your policy.
• You may insure on an estimated sum insured in consideration of your Gross Profit/ Gross Revenue/ Gross Rental for previous year as per your statement of account plus projected profit for the current year, if any.
If the actual Gross Profit/ Gross Revenue/ Gross Rental received is less than the estimated sum insured, a pro-rata return premium not exceeding fifty per cent (50%) of the provisional premium paid will be made in respect of the difference.
This policy shall cease if your company be wound up or carried on by a Liquidator or Receiver or permanently discontinued.
• This policy can be granted only when the Fire Insurance is taken up with us.
5. What are the major exclusions under this policy?
This policy does not cover certain losses, such as:
a) Loss by extraordinary events taking place during the interruption
b) Loss by restrictions imposed by the authorities on the reconstruction or operation of the business
c) Loss due to the Insured’s lack of sufficient capital for timely restoration or replacement of property destroyed, damaged or lost
d) Loss in consequence of the burning of property by order of any Public Authority
e) Subterranean fire, explosion, spontaneous combustion
f) Earthquake, volcanic eruption, typhoon, hurricane or other convulsion of nature or atmospheric disturbance
g) War, invasion, rebellion, revolution, riot, civil commotion
h) Nuclear weapons material, radiations or contamination
i) Any act of terrorism
(Note :This list is non-exhaustive. Please refer to the policy contract for the full list of exclusions under this policy.)
6. Can I cancel my policy and how do I cancel it?
You may cancel your policy at anytime by giving written notice to our company in which case we shall retain the customary short period rate for the time the policy has been in force. Upon cancellation, you are entitled to a refund premium subject to the minimum premium to be retained by the company. No refund of premium will be allowed if there is a claim under the policy.
7. What do I need to do if there are changes to my contact details?
It is important that you inform us of any changes to your contact details to ensure that all correspondences reach you in a timely manner.
8. Where can I get further information?
Should you require additional information about our Fire Consequential Loss insurance or any other types of insurance products, you may contact us directly at your convenience. Alternatively, you may visit our website at www.acpgconsultant.com.
Corporate Insurance
A comprehensive coverage that protects your business from the beginning. The following are some common coverages:
ACPG MANAGEMENT SDN BHD
Your Trusted, Experience and Largest
Malaysia Risk Management Insurance Solution Services Provider since year 1989.
We (ACPG), provided all classes of insurance services more than 23 years in Malaysia (since year 1989).
We (ACPG) One of The Largest General Insurance (Individual & Commercial) Service Provider in Malaysia.
Any enquiry, email to enquiry@acpgconsultant.com or Call our Careline : +603-9286 3323.
