Contingency Insurance

 

Sometimes, life can deal you really heavy blows where you least expect it. This can be anything between serious car accidents, workplace accidents, event cancellations, hijackings and even kidnappings, and the coverage of your primary insurance plan just proves inadequate in getting all losses and damages settled. This is where contingency insurance kicks in, taking care what is left up to its coverage limits.

Confusion between primary and contingency insurance plans happen often, and it is not unusual that when an insured is covered by two plans under a variety of circumstances, both insurance companies would argue and claim to be providing the contingency plan, as that would mean less expenses to cover. This could be further worsened due to the sheer number of types of insurance solutions out there.

ACPG Management Sdn Bhd, one of the top Property and Casualty Insurance Agency in Kuala Lumpur Malaysia, helps alleviate these problems by making clear of the risks, clauses, conditions of insurance solutions provided to you, ensuring that you make the best of your very much needed contingency insurance solutions. Doing so smoothens any claim processes and make sure that your bills would not take longer than necessary to get paid by insurance companies, thus making any insurance solutions you have with you work for you, instead of against you.

If you have any inquiries regarding your existing primary and contingency insurance solutions, or that you need a contingency insurance plan, feel free to give us a visit and see for yourself how we can help you out.

The Complexity Of Consequential Loss Insurance

Consequential Loss Insurance is one insurance which very few insurance professionals understand due to its complexity.

Many businesses shy away from effecting this insurance as they do not know the benefi ts and usefulness it provides.

We can share with you

• How the insurance policy works
• How to work out the sum insured
• The indemnity period that is needed for total protection
• What expenses need or do not need to be insured
• Why this policy is still needed even though the Company is not making profit.
• Whether suppliers can be insured.
• Can customers be insured as well?

Fire Insurance And It’s Knowhow

• How to work out the sum insureds on building, machinery and stocks.
• To differentiate the value and sum insured between building, fi xtures, fi ttings, machinery, other contents and stocks.
• To insure on Indemnity Basis or Rebuilding Value Basis?
• How under-insurance affect claims and how underinsurance works.
• The perils that can be included into a Fire Policy and to pick the perils that are relevant in each circumstance.
• What direct losses are payable in a Fire Insurance Policy? For example, is damage to the door caused by fi remen forcing their way into a building to fi ght a fi re payable under the Fire Policy?
• Fire Insurance premium are regulated if the total sum insured in the same location is below RM50 million. The premium can vary if it exceeds this RM50 million. A good premium rate can be achieved with proper advice and implementations of risk improvements.

Fire Insurance For Unit Owners On Strata-Titled Buildings

Strata-titled unit owners of condominiums need not effect Fire Insurance on their unit building.

What is a condominium?

A condominium consists of a complex of dwelling units, in most cases, several storeys high, in which each unit is individually owned.

The condominium which consists of the many units is normally considered as one entity or one "body” and each individual unit construction value cannot be ascertained.

Thus the necessity to insure the whole "body” or entity under one Master Fire Policy.

Unit owners who get financing from Financial Institutions do not need to effect Fire Insurance on the unit and Financial Institutions cannot force the unit owners to effect the Fire Insurance. To confirm that Fire Insurance has been effected all the unit holders need to do is to produce a copy of the Fire Insurance Policy taken up by the Management Corporation.

Unit Owners Of Condominiums May Need To Effect This Insurance

As the "building” of the unit of the condominium Fire Insurance is arranged and effected by the Management Corporation, does the unit owner need to effect any insurance at all?

The answer is "yes”

• If the unit owner has done renovations to the unit, the unit owner need to insure their renovation.
• The unit owner will also need to insure all the contents in the unit. 

Is Your House Value Insured Correctly?

How Do I Insure My Precious Possessions?

This is a frequent question asked by home owners who have gold, jewellery, antique items and the like.

Let us introduce you to the term "Agreed Value”. This term means that you propose to the insurer to insure at a fixed value and the insurer agrees to accept your proposal to insure the item based on your proposal. If a total loss claim arises, the insurer will pay this value without investigating whether the price has gone up or down in value. This method of insuring this is known as the "Agreed Value” basis.

There are however some conditions before the insurer agrees to insure on Agreed Value basis.

Some of the conditions are:

• The items are small expensive items like gold jewellery, watches, cameras and the like.
• Antiques and paintings can also be insured on Agreed Value basis.
• There must be proof of the item’s value when proposing for insurance. Documents like purchase invoice or valuation letters are needed.

Insurers can be picky on whom they want to insure. Thus, not necessarily everybody who wants to insure on Agreed Value basis can get this insurance.

Insurers are selective in granting this Agreed Value insurance as the cover provided is normally on All Risks basis, that is, losses due to any causes are covered with minimal exclusions.

It’s good to get proper advice if you want to have this insurance.

Motor insurance in Malaysia is tariff. In other words it is regulated by the Government.

By being regulated does it mean that all Motor Insurance policies are similar?

The answer is no. What is basically regulated is the motor premiums. Thus all insurance companies will need to charge the same premium. But the practice and coverage provided can be very different.

Some of the differences

• Some are insured on Agreed Value. Others are not.
• Some companies impose Excess or Excessive Excess.
• Some companies do not accept certain vehicle models
• Some companies will only accept Motor Insurance provided other insurance is bought at the same time.
• Some companies reduce Claims based on the parts that have been replaced. This reduction is due to the imposition of "betterment” on the replaced parts.
• Some companies pay claims very promptly. Others do not.
• Service, experience and connections of the service provider play a very important role in having claims settled promptly and fairly.