Temple Riot How to Protect your Property from being Damages?
Recently, the Subang Jaya Hindus temple riot shocking and terrified the whole world with prominent coverage by the mass media. The churned car piling on the eerie silence road aftermath had alarmed the public. How to safeguard their private property? Contrasting, 2000 mobs rioted on the Hindus temple caused horrendous massive traffic on a standstill that stretching for miles. The hiring of the professional thug, would anybody can self-defences against them? Of course, the most sensible is to flee for your own safety. But, nevertheless, how shall we protect our movable and immovable chattels?
Temple Riot, how to protect your property from being damaged?
Riot in a nutshell.
At least three persons present in one venue. Gather for a common purpose. Execute or inception of the common purpose. Assist mutually one another by force, if necessary, in the execution of the common purpose. Display forcibly and violence to alarm one person of reasonable firmness and courage.
Malicious Damage covers the non-fire damage acted by an individual person acting out of personal malice as opposed to a large group. Nevertheless, the riot coverage formed part of malicious damage.
Virtually, a malicious person with the sole intention to damage your property e.g. like spraying acid or paint.
A malicious act caused by anyone committed during a disturbance of the public peace resulting in the physical loss or damage yielding a fruitless result. Who is the victim? Often the public needs to pay a high hefty loss of money and endless emotional damage. Loss caused by sabotage and terrorism with the use of force or violence. Regardless the purposes could it be political, religious or ideological motivated with the intention to influence any government and/or to put the public in fear for such purposes.
How to protect our property from riot?
Regardless of your social status in the community, when a disaster strikes on your house, indeed a misfortune, so, how shall we overcome? Depend out a handout from the concerned authority or seeking a public donation. Notwithstanding, Self-help is a wise idea.
Having said that, the preferred solution by examined closely your fire or householder or house owner policy. Finally, contributed an insignificant sum of premium and have a peaceful mind. In the end, an insurer shall pay any physical damage or loss due to riot provided strike, riot and malicious damages inserted as an extension clause. Terminated the countless sleepless night and pointless to save a penny, ultimately, you lost an arm and leg when a riot occurs.
Let put a scenario, an exporter stuffed their produce in the FCL, as the space constraints in the factory premises. The container parked by the side of the public road in front of the premise, within the view of the 24 hours security guard.
Well, in another case, an importer due to the closing of unloading bay was full, after 6 pm, the workers had gone home for the day. Consequently, on seeing this situation, the haulier company left the FCL container on the opposite of the road.
If the rioters damaged part of the consignment cover under ICCC “A” clause for both cases, will the insurer repudiate the claim?
What about land transport like car, low-loader, forklift. Excavator, motorcycle, Is riot cover such movable automobile?.
A riot occurs, how we can protect the merchandise from riot? How shall we deal with kind of situation, Reader, please share your view and comment!. Humbly, I sincerely appreciated your time for writing your view or comments. Let us share the knowledge in this forum together. https://youtu.be/WWLQMkWkJww
Why buy Life Insurance, Prospect Distantly Avoid Plague
Why buy Life Insurance, Prospect Distantly Avoid Plague at all cost. Regrettably, the Malaysian life insurance penetration is merely 56% of the total population in 2016. It implied that the balance 44% of the citizen is uninsured or not qualified to have life insurance due to inborn defect. Why do we have such a pathetic scenario? Is the agent or assured to blame? Briefly, to say, it applies to both in our shore here.
Not only, no insurance also that the sum insured inadequately. The average is about RM100, 000.00 to RM150, 000.00, can it feed your beloved one or dependent for 5 or 10 years if one day you forget to return home. Moreover, an amount varied between the urban or rural living plus also the working spouse or children. Nevertheless, the meagre sum insured is hardly enough to last for a year living in the city with 2 or 3 kids in toll for a single parent.
Why Buy Life Insurance.
Is it the responsibility of the parent to take care of the children welfare when one demise? Very often, cool-blooded landlords eradicated single parents out from their rental homes. Subsequently, like adding fuel to fire, the bank publicly auctions off the house for 6 months default in repayment without any insurance to cover the loan tenure.
The innocent child is also the victim when one parent remarried. Stepparents often abused the defenceless kid. Recently, a newspaper reported rape, physically tortured with multiple cuts and bruises and old wounds over the emaciated body. The police rescued a retarded boy from the evil mother. The reason given, chained the boy like a dog in a small cage preventing he strolled out. Can your soul be rest in peace if someone does to your child? Unless you are heartless, no human-bear to see the suffering of abusive and inhumane torture.
Compensation for the death of insured
Expensive
In the ever-burgeoning budget of a newly married couple with a kid, car loan, parking petrol and upkeep of the vehicle eat up a chunk of their salary each month. Moreover, there is the student loan, housing repayment, utility bill, an emergency fund like a kid doctor bill and love gift to aged parents. Luckily, break-even or a blessing to have a tiny disposal income left for saving. With a tight budget, any extra is beyond their means and classified as a “luxurious” item like buying life insurance.
Needless to say, it is advisable for such a young family to have affordable term life insurance that cost merely a daily high tea at a local café. What is your opinion you prefer pricey life insurance compared with a bedridden spouse or kid at home to maintain? Death is an instant relief, but the loved ones have undergone lifelong grief. So why be an irresponsible parent that might curse subsequently by those still alive struggling to meet day end need?
I lead a healthy lifestyle.
Nowadays, insurance agents always complain is difficult to close a sale with young and active people. The yuppie leads a healthy lifestyle to visit the gym 5 days a week after work. Likewise, for the diet too, eats moderately due to health and utmost important tight budget. How far is that true? We puzzle? Eat junk food like instant noodles with enhanced favour, fry egg and soft drink instead of mineral water or fruit juice? Surprisingly, the diabetics and hypertension suffer gradually knocking at their door. Closely examined, the Malaysian demographic depicted young suffer from 30+, which was unknown in the last century. Honestly speaking, how many Malaysians have their yearly toughly medical checkup? Toast off to you, if you have a clean report, otherwise, you are an insurable or substandard risk with premium loading.
Cover for Money Printing Machine
An unpredictable human being, in order to understand insurance, might take ages. Insured their movable assets like automobile, exclusive motorcycle, extensive renovation home, camera and household contents even pet for fury animal including the kernel, but no insurance for themselves that. Rampantly road accidents and armed robbery pray hard nothing would befall on them. Moreover, no one can predict when you are imminently sick or bedridden or walk in the clutches. Yet, there is no insurance to cover for the machine that prints money for you, that is your body. Gradually, overuse due to wear and tear a machinery breakdown, likewise, it is the same for your body. Consequently, a fatality occurs or lying motionlessly on the hospital bed.
Why buy Life Insurance, Prospect Distantly Avoid Plague
Negative Perceptions
Crowded coffee kiosk, two middle-aged customers sat in between a young man, an insurance agent.
“I lament you not buy any insurance as my neighbour’s son hospitalization for a week in a private hospital, the insurer denied his claim”
“Why” another probed further.
[poll id=”1″]
“I do not know the reason for the rejection, initially the agent helped to claim, eventually the agent also unreachable “
“Yes, truly say, the agent and the insurer are the legal lesson conmen, promise you the sky, finally you get a barren hope.”
“Sorry, young man, I need to consult my spouse before making the decision from buying your investment-linked proposal” Another elderly prospect consoled the dynamic agent.
“Yes, it is alright to reconsider about it, please don’t hesitate to call me for any doubt clarifications” the agent replies politely.
Thus one rejected claim would eventually rumour spreading fast like wildfire.
The truth reveals
Occasionally, the half-baked agent would request the assured to sign on the dotted line without filling the medical history. In order to get prompt approval, the agent ticked all NO in the column even though assured mentioned has hypertension and on long-term medication. Whose fault? It is the Assured himself as he does not know anything when he blindly signed the dotted line on the proposal form. The former kleptocrat prime minister Najib Razak is a shining example.
Assured’s moral hazard
I did help to claim a case rejected by the insurer. Finally, to my dismay, I obtained a hospital report that assured did a kidney stone removal in a government hospital. When asked by the agent any operation done in the past. He negatively answered NO. Consequently, the insurer denied its liability for his claim on kidney dialysis.
Another case on hypertension question, nevertheless, assured answered negatively despite the fact of having daily oral medication. Eventually, the claim is often denied by the insurer when the claim stroke or kidney failure at a later stage.
Utmost good faith
Utmost good faith is one of 4 principles governed by the rule of the insurance law. Legal binding between the assured and insurer when entered into an insurance contract, the assured disclose all the relevant material fact to the prudent underwriter in determining to reject or accept the offer. Whether the assured know or is unaware of the health condition, disclose to the insurer. So, sincere advice bears all the facts to the insurer to avoid the future burning issue on the claim matter.
No Dependent
Generally, couldn’t care less is the altitude of most of the y generation. Chase after the latest trendy iPhone gadget every six months. Moreover, priority on holiday, pay later for the credit card payment. Buy Life insurance? Why need it, I have no dependence is an impulsive reply? Single with no strings attached, without any family commitment, no parent, no sibling, living on own world, why care! Having said that, what about your final funeral expense, consequently let the government take care of burial, or leave the corpse to decay on the road or hospital? Perhaps, perform a unique Tibetan “sky burial” let the eagle devour your corpse.
Notwithstanding, if you have a grey hair retired government servant parent, isn’t a double pain for them. Losing one child, and the final expenses, ritual prayer and burial ground to pay for? Unfortunately, you confirmed total permanent disability, aren’t a pain in the neck hiring a nurse or long-term nursing for you. Conversely, put you in the nursing home, who pays for maintained expenses?
No Money
No money is just a lame excuse to put off for the newbie’s advisor. Regardless of single or a young married couple is a norm form of getting rid of intermediary. Or postponed, the chance is they procrastinate for a few more years. Luckily, the body has no red alerts for silent sickness. Meet a car accident, then you want to cover your car for a comprehensive term, do you think insurance company run on charity and accept your offer. Blatantly, you turn down. But the truth is, the majority of the insured have this kinda of weird idea. I have stumbled across few incidents like this before during my 25 years in the insurance industry. Does the insurer run on charity?
Time waits for no man
Gradually, we aged with the erosion of time, coupling with consumption of highly toxin junk food daily intakes. No wonder a primary school going kid had undergone kidney dialysis at the public hospital. A normal phenomenon is our today society with a stressful lifestyle chasing after material gains. The insurance premium gradually rises accordingly to your age. Not only the higher premium pay but also lower the sum insured if we compared a lad aged 20 and another 30 years old adult. As we age, we are prone to illness due to the sluggish immune system. Even applies to term insurance for a 10 years gap band.
In brief, please buy insurance when you are in your youthful vigorous year to save a cheaper premium with a higher sum insured.
Jargon wording with length sentence
How many lawyers and insurance can consult and understand and interpreting sentence by sentence in the insurance policy? Nobody is trained in all fields; therefore no one is an all-rounder in this world. Diligently consultant your agent or even bring the policy to the insurer for a full explanation. Closely examine the following point, you would face difficulty in handle a claim in the near future.
Exclusion Clause
In this column all the sickness or any circumstances relevant contradicted to the policy, the insurer would deny its liability. For instance, commit suicide within certain years or claim on pre-existing illness know to the insured. Please highlight to the assured when delivering the policy for acknowledgement of the receiving the policy. Do not conceal the fact, it is better to avoid short-term pain rather finger pointed how irresponsibility of the consultant.
Inception Date
The policy was enforced with the date clearly printed out and the expired date of the policy. Commencing date is of utmost importance in the case of medical or 36 critical dreaded disease claims. Never overlook it. Frequently, assured would hospitalize for an illness, and bravely ignorance the waiting period. Subsequently, no entertainment of the claim, the assured would spread the rumour that insurer selling a scam policy, even though the default lies with assured. Sabotage the agent, branded you feckless advisor, and tarnished your name.
The schedule
In this schedule, your name and identity card number should be spell accordingly to your national identity card. Correct the error immediately should you spot a mistake. Thereby, the insurer has leeway to deny your future claim. Do not give the underwriter a chance for your consumer rightfulness claim.
Highlight the type of coverage, whole life, endowment, term or investment link or purely medical card policy. Total permanent disability, 36 critical illnesses, waiver of premium due to dreaded disease or the payor. Any hospitalization benefit per day, woman disease and pregnancy admission specified according to your signed proposal form. Scan any deviation, informed the agent in a written form and ensure the insurer to pass endorsement accordingly. Finally, made a note of the sum insured in the schedule.
Stated the policy number in the policy for convenient correspondence with the insurer claim, when ledge a claim in the future or an endorsement. How much premium do you have to pay? Assured need to warn adjusted premium during the duration the whole validity of the cover, not to forget if the medical card guarantee renewal clearly stated.
Buy peace of mind coverage
Splurge an exotic meal under the candlelight dinner or exorbitant family overseas excursion or perhaps the endless chasing the ever change the latest gadget every six months. Why not paused and think for your loved one when one day you lose your way home, getting a policy coverage that ensures all the financial constraints would not befall the ongoing family.
Your Thoughts
As usual, I would love to hear any thoughts or questions that you have in the comments section below.
Compensation for the death of insured under householder policy.
Not everyone buys householder insurance, after the mandatory homeowner insurance as a prerequisite for the bank house loan. Even more shocking, most insured will not have fire or homeowner after settling the housing loan. What more to say the householder insurance.
The question of why the owner does not purchase householder policy? isn’t the fault of the intermediary or the house owner. Let us find out.
Most agents after hearing the owner had a housing loan with the bank. The agent applies the hand brake. Why not cross-selling for the householder product to the insured, beside the car insurance?
Compensation for the death of insured under householder policy.
Corporate Client
I had a corporate client called me one day, ” Mr. Jamin, would you come over to my residence to discuss the householder policy?” Initially, I was a bit reluctant to affirm the yes answer. After he gave a few calls me.
” Mr. Robert, let us make on this Saturday evening at your home,” I confirmed it. After a long thought, I gave in to him, as his factory insured Marine open cover with a yearly sum insured valued more than US$ 80 million plus with plus or minus 5. Besides he also insured with me ten types of factory policies namely, fire, business interruption on machinery breakdown, Consequential loss, Money in transit and in premises, public liability, product liability, Group personal accident, employer benefit, burglary, and fidelity guarantee.
Flight Delay
On my arrival, the maid invited me into their mansion with an outdoor Olympic size swimming pool.
“Mr. Jamin, please be seated, my boss called her an hour ago the flight from a neighbor capital delay by 30 minutes. Would you like to a have a coffee or tea, sir?” she continued ” If you are feeling a bit boring, I ask 3 gardeners to accompany around to see the flower and our own organic vegetable plot. Please make it into your home.”
The insured arrived home 15 minutes pasted 6.pm.
The couple said sorry profusely for the 30 minutes late.” The factory has an unexpected crisis crop out. We settle immediately but too late to catch the last flight home last night. All morning seats fully booked due to the weekend.”
The insured felt the previous agent did not have an in-depth knowledge of insurance matter. The agent had lumped all the content of 2 million dollars in one sentence.
Compensation for the death of insured under householder policy.
Determine householder sum insured
Let us go from 3 mains halls, 2 dining room plus 12 bedrooms and a wine chiller room and a bar counter with a display showcase of various brandy. Kitchen and customised make pet kennel that keeping 12 guards and fury small dogs taking care one pet lover maid. She daily bath and brush their teeth with dog toothpaste.
The insured’s wife loves crystal light. She went to Austria to sort out 3 Swarovski crystals light. The 3 chandelier elegantly displayed at the 3 main halls Valued US$300 000.00. It is not part of the fixed and fitting as the crystal can be stolen or removed easily. 3 pure Italy leather cool and comfortable sofa set valued US$ 150 000.00.
The 2 teak wood antique dining table match with 10 seats valued for US$100 000.00. Two giant wall mirrors decorated with seashell by one the famed best Indonesian craftsman valued at US$25 000.00.
The French wine stocked in the chiller room valued for US$50 000.00. The owner loves wine, often drink with 4 children during happy occasions and festive season.
He often entertained his close relative and friend at the bar counter. The display set neatly arranged row by row with antique brandy. A few bottles with a more than 100 years lifespan so valued at US$100 000.00. A customised completed set Italy coffee maker from grinding to the fresh aromatic coffee bean to the flow of a cup of self-home make Italy cuppa valued for US$30 000.00
A pet kernel specially builds for the 12 dogs, as dog help to reduced working stress for a jet traveler manufacturer like him. A monthly visit by a veteran doctor gives the dogs for the pet health and wellness. 2 guard dogs insured for US$5000.00 and those small toy dogs valued for US$10 000.00. The customised make order kernel valued for US$25 000 installed 4 units of air-conditioned.
The owner master bedroom and 4 children bedrooms with Myanmar teak wood valued for US$100 000.00. The 7 visitors ‘ bedroom with valued for US$10 000.00 each.
One of the sons who were previously a professional photographer attached to National Geography. He treated his camera set like his own life. Besides, working as a wedding planner, he loves landscape and micro photography. He had left his footprint on all the seven continents. Insured his Canon set of the camera with its accessories for US$100 000.00 with All risk with theft by deception extension clause.
The designed kitchen cabinet and cutlery and cooking utensil and electrical appliances insured for US$100 000.00
Being a business person, his wife and two daughters often go with him to attend an important function. Lady often dresses to kill, is not an exception for them too. Their jewelry, necklace and diamond ring insured for US$300 000.00
Rolex watch is an everlasting asset; it appreciates its value over time. The filthy rich like to keep it as an investment, likewise is the same for Mr. Robert. The whole family goes on a winter holiday to Swiss Alps for ice-skating is an annual affair. Bit by bit the accumulation of watches so valued at US$300 000.00
The wall painting, laptop, TV, CCTV, karaoke, and the sound system, mobile handphone insured US$35 000.00 only. I added a full theft policy for the insured. The policy issued joint name stating the couple as the insured.
Compensation for the death of insured under householder policy.
Morning Call
A beautiful Sunday morning, after having our family breakfast at a local cafe, I received a call. The panic maid called me informing, two robbers burgled the family. Mr. & Mrs. Robert hospitalized in a private one. I rushed to meet them.
On seeing all the children was too there. I advised the elder son to make a police report. The coma wife was still in the ICU. Mr. Robert narrated to me the occurrence of the event took place just before the youngest daughter arriving home with at 3.00 a.m.
Burglary
I heard the dogs baked fiercely, excluding the 2 guard dogs. The servant quarter was quite a distance away. The alarm was silence too. The couple woke up by the dog barking.
Two young lads clad in helmet dashed into the main hall with two chisels.
“Money” they yelled at them.
“We don’t have much money at home, take whatsoever you want.” this statement might be had provoked one of the robbers. One briskly slain the man, he used his bare hand to protect him. The panic wife started to scream for help.
” Hel…….p, Hel………P.” she blasted out. The fresh blood oozed out from her stomach. The robber had stabbed her in the abdomen. One seeing the children rushed out to their parent rescue. The robber went off empty hand.
The robbers poisoned the guard dogs and tied up 7 servants respectively in their quarter.
Death
Mrs. Robert breathed her last after 10 days in the ICU due to infection. She was a diabetic. How much is the insurer liable for her death? Does the insurer pay the couple her medical expenses?
Compensation for the death of insured under householder policy.
What is the main point of consideration?
A forcible and visible of entry by the robbers burgled into your home.
The insurer pays for the death of the person if he or she died within 90 days caused by the thieves or fire.
If more than one person involved, prorate rate for compensation shall apply.
The corporation is not entitled to this benefit Unless a person is nominated for signing up the proposal form.
The liability for this benefit is one half of sum insured on Contents or whichever is less. The lesser amount shall apply.
Compensation for the death of insured under householder policy.
Claim for Compensation of Death
Dear reader, let us crack our brain, how much is the compensation of the death in this case? Learning together is fun. I would really appreciate your comments in the comment box below. Don’t worry your email address should not be published in the comment box.
Answer for Compensation of Death benefits
What is the final total of this claim here? There are only two answers here. The full policy wording on Compensation for death is as below.
Compensation for the death of insured under householder policy.
Death compensation under householder policy
What is covered?
You are covered against fatal injury (death) occurring in the Private Dwelling House due to external or visible violence caused by thieves or by fire, if the death occurs within three (3) calendar months of such injury.
If there are more than one (1) named insured, we will be liable for a prorate proportion of the compensation.
For a Corporation, You must nominate a person or persons and lodge their name(s) with us.
The limit of liability of this benefit is the sum specified on the Schedule or one-half of the Total Sum Insured on Contents, whichever is lesser.
Your Thoughts
As usual, I would love to hear any thoughts or questions that you have in the comments section below.
Claim Flood Damage to Home Insurance for Penang Flood of Decades. The recent Penang worst flood of the 3 decades have brought much misery to the ordinary Penangites. Couple with the high cost of living, it is a daunting task to cope with the average family with school going children.
But, it also broke the political and religion barrier giving the thump up. On the lighter side, the present government and the opposition leader come to hug other to share the utmost important burning issue to clean up the aftermath mess. Also, the recent debates on religion topic tarnished other faith, a small mosque was open catering for the other faith flood victim, regardless of religion and race.
The devastation from the worst flood of 3 decades far from over, but property owners in Penang are already facing the daunting task of rebuilding. The extraordinary continuous rainfall, in Penang and parts of Kedah on Nov 4 and 5 2017, The low-pressure area – a main cause of the flooding. It became a focal point for winds and high level of moisture resulting in continuous heavy rain and strong winds.
Claim Flood Damage to Home Insurance for Penang Flood of Decades
Beyond the human tragedy, the widespread flood damage caused by the flood and heavy storm serves as an important reminder to homeowners in Malaysia. Now it is time to wake to know how to protect your nest home by purchased flood extension coverage to mitigate future loss claim.
Your home is a sanctuary for your family. Do not save a penny resulting pay up a fortune, it is never too late to reexamine closely your home or fire insurance policy. It does not cost you an arm and leg to have the flood extension coverage for your house and content with one easy plan.
Claim Flood Home Insurance Damage to your Home in Penang
Let us study the key benefits covers.
It is wise to move to protect your home and its contents. The policy covers your building and contents against fire, lightning, flood and other natural disasters.
The insurer will replace your damaged items with new ones provided it is less than 5 years old.
It covers all the accidental damage to home contents. Protect your home contents including TV, laptop or others against accidental damage.
Option covers only home contents. Customize make to cover just your precious belongings.
No one loves to see wastage of water oozing like a fountain via bursting of water tanks or pipes, thus has the coverage for the broken pipes or water tank. The brokerage causing damages to building and contents can revoke this clause to compensate the loss claim.
The policy protects your personal belongings worldwide. There is 24/7 protection for your personal belongings such as jewelry and watches, camera anywhere in the world.
Exclusion clause the policy does not cover.
1. Purchased landslide extension to prevent damage to building due to a landslide. 2. Extensive damage caused by termites. 3. Jewelry in excess of 1/3 of the total insured amount.
What is the coverage?
Essential systems in the home include electrical and plumbing systems, furnaces, water heaters, central air conditioners, It also includes cisterns and the water in them, solar energy equipment, water tanks, and pumps.
Appliances such as refrigerators and built-in appliances like dishwashers, washing machines, dryers are covered. No covers for the food inside refrigerators.
Carpeting and window treatments, permanently installed carpeting over an unfinished floor or any other kinds of carpets over wooden floors, your policy should cover them. Also, include window blinds and curtains.
Permanently installed paneling, wallboard, bookcases, and cabinets, replace your cabinets, pay only for the damages one. The ruined cabinets along with the undamaged you might have trouble getting cabinets that match the older ones. Foundation walls, anchorage systems, and staircases attached to the building. There is an exclusion for “loss caused directly by earth movement even if the earth movement caused it to flood.”
A detached garage can be insured up to 10 percent of your house building sum insured toward your garage. For example, the sum insured for the whole building is $1 000 000.00 then the garage is $100 000.00. This amount will minus from the total sum insured. Thus the final sum insured for building is $900 000.00 and outbuilding garage is $100,000.00 = $1 000 000.00
Personal property includes clothing, furniture, and electronic equipment—covers provided that not stored in the basement.
Certain valuables cover items such as original artwork pay according to the agreed value subject to obtain prior approval from the underwriter with the authentic expert report.
Other coverage, some events cover even if they’re not strictly floods, like groundwater seepage and mudslides. Includes a neighbor’s above-ground swimming pool collapsing. Water flows into your home or a water main break that damages your home and at least one other in your neighborhood. However, damage caused by a sewer backup only covered if it’s a direct result of flooding.
The Penang worst flood of the 3 decades, you could see the uprooted tree crashing the car parking along the roadside and on the car porch. Stagnant with muddy water, snake slippery through the house making a nest, a completed wash over is an urgent task for the occupant. All those unattended houses, the expensive items is the prime target – a riot by the drug addict when the water subsided. Isn’t a nightmare?
How shall we protect ourselves, instead of waiting for the donor or government handout which is insufficient and takes an age to receive? Prevention is the better cure, help ourselves. No point in crying the split milk later.!
The following extension clauses highly recommend for the householder or house owner policy when entering a contract of insurance.
Flood extension with a rating of 0.086%, you need to pay an additional premium of $860.00 for the sum insured of $1 000 000.00. The insurer shall compensate your flood damage to house structure or home contents.
Flood, means:
The overflowing of water or deviate from its normal path either due to heavy downpour over a long duration, storm or man make the disaster such as deforestation.
Inundation from the public main supply or any flash flood water accumulation hails from outside the insured building.
Exclude the loss or damage caused by subsidence or landslip.
To complement the flood cover, the insured to add the subsidence or landslip extension clause. After the heavy convention rainfall, the soil turns soften especially with the root of acts the fastener of the loose soil. Condominiums collapsed like a matchbox. The Malaysian Highland tower is a good example due to subsidence and landslip.
Subsidence and landslip cover rating 0.081% for the standard cover. By paying an additional premium of $810.00 for the clause with sum insured of $ 1 000 000.00, you would have the peace of mind in the event of loss of damage to your sweet home.
The standard cover exclusion clause: Loss or damage
The Swimming pools, terraces, patios, drives footpaths, walls, and gates or fences unless the building, its outbuildings or garages damaged by the same cause and at the same time.
The movement of solid floor slabs unless the foundation beneath the external walls of the Buildings damaged by the same cause and simultaneously
Occur or in consequence of coastal and river erosion. Demolish or alter structure or repair, defective design, and poor construct foundations.
No liability for the insurer in respect of each and every loss, 5% of the total sum insured or $25 000.00 whichever is the lower, after applying the law of average.
However, delete the standard cover by paying an additional premium of 25% loading for the outbuilding like fence, gate and walking path, dog kernel and parking porch and swimming pool costs $500 000.00. The additional premium for the sum insured of $500 000.00 would be ($500 000 x 0.081% + 25% loading to delete the item 1) $506.25. Thus we derive the final total premium for the extension peril would be ($810.00 + 506.25) = $1 316.25
Damage by Falling Trees or Branches and Objects
A misfortunate during the recent Penang the worst flood of the 3 decades, the victim’s heart bleeding with blood found out not only the house been submerged with water, but also the falling branches and tree fall on the house the car parked in the car porch causing severe damage. Generally speaking, a normal to see an insured claim for the loss or damage only realize that agent did not carry out the professional duty.
Wise move to cover the building and your car with such peril. By having said that, although it is a painful lesson learned, nevertheless, one can insure this peril during the next renewal with a rating of 0.01%. Pay $100.00 for your property with a sum insured of $1 000 000.00
This Policy includes loss or damage to the property or to walls, gates, and fences directly damage due to falling trees or branches. The insured shall bear the $250.00 for each and any loss or damage. Don’t waste to claim when the claim falls below $250.00. If the claim is $ 3 000.00, the insurer pays you $2 750.00 the full and final settlement of the claim. You are the insurer for the first $250.00
Removal of the debris (with the separated sum insured)
After the flood water had receded, what a remain was a messy muddy floor. It is an eyesore to see floor carpet with mud, filthy muddy stagnant water. Life has to go on. Has your ever think the cleaning process when hired worker to clean? What is the cost of this trying time? The cleaning company would demand an exorbitant fee for the laborious task which is in great demand. Do you check your policy for the removal of debris clause?
The additional sum insured can incorporate forming part of the sum insured with a separated sum. Be specific it depends on the size of the building and number of the floor. It can cost easily at $5 000.00 upward.
The insurer pays the insured for the costs and expenses necessarily incurred with the prior approval from insurance company (a) removal of debris (b) dismantling and/or demolishing (c) shoring up or propping of the portion of property damaged or destroyed fire or by any other peril hereby insured against. (Items (b) and (c) above deemed to delete when neither Buildings nor machinery is insured)
If the insured does not has a separated sum insured for the removal of debris, the insurer will bear 10% liability for the total sum insured. In the case of the Penang flood, the insured can claim up to $100,000 for cleaning up the mess out the sum insured of $1 000 000.00 provided flood extension clause printed in the policy.
Rent clause – not to overlook.
a) Applicable to owner non-occupier to the premise, if the building is unfit for occupation due fire or other insured peril, the owner for the rental loss shall not exceed the total sum insured. Let say a monthly rental $2 000.00, loss of rental for 6 months can recover from insurer of $12 000.00
b) Applicable to owner occupier the premises, if the Penang flood destroyed the building, the insured need to find another alternative home for 1 year before a new home ready to move in. Rental of the similar standard home cost $1000 per month, 12 months means the underwriter will pay $12 000.00 to insured.
How to claim flood damage to home insurance.
Stay claim, the insured shall make a police report first.
Immediately inform the agent or insurer via telephone follow with an email to them. Any unreasonable delays may prejudice your case. If the invisible agent is not available during the critical moment which quite a true fact in Malaysia, go straight to report to insurer directly.
Don’t ever seek or consult the coffee shop fair-weather friend for an opinion. Don’t waste your hard earn money to hire a lawyer, as it is a straightforward case, not a liability whereby need a court hearing.
Liaise with the independent adjuster arrange by the insurer, let them has a thorough inspection of the whole scene, ask for their approval for any minor repair to mitigate further loss.
Study closely the whole policy with the insurance agent for any exclusion and excess clause. Any doubts please refer to the insurer’s advice.
Take a video clip of the damaged item for the adjuster inspection. Keep all the minor repair receipt. The video clip is utmost important for the claim dispute.
Duly completed sign original claim form with the repair invoice to the insurer and copy to the adjuster to expedite the claim. Ask for the acknowledgment of receiving the entire claim document to avoid undue delay.
Don’t sign any counteroffer by the insurer unless you fully satisfied with the final claim. You can read more on the How to claim Hurricane damage to your property
Loss of Profit Insurance What and why are the coverage?
The Loss of Profits policy covers the monetary loss occurring from a break in a business activity arising due to the physical loss of property by an event covered by insurance.
What is the coverage?
In general term, the Policy broadly covers loss of Gross Profit for business interruption, consequent upon Material Damage to property due to Fire or any other insured peril under the Standard Fire and Special Perils Policy. It also covers standing charges which continue incurring during the interruption thereby increasing the working cost necessarily and reasonably incurred to support the business to its formal activity. Consequently, therefore, that loss under net profit and standing charges can avoid or mitigate.
It also covers standing charges which continue incurring during the interruption thereby increasing the working cost necessarily and reasonably incurred to support the business to its formal activity. Consequently, therefore, that loss under net profit and standing charges can avoid or mitigate.
An eye-opening for the bewilderment insured during the closed-door discussion between me, and insured’s finance controller.
Why need to cover the loss of profit insurance?
“Boss, by having fire insurance is not a perfect shield for your business empire, a complimentary policy utmost important for your factory with a workforce of closed a thousand. Let me introduce the Loss of Profit Insurance” I announced.
“What is that? Such policy exists?” they questioned me with their disbelief eye.
” Your factory premises and machinery all under financed with a local bank, a short-circuit would curtail the production flow, subsequently a reduction turnover, How shall you keep the monthly installment repayment to the bank in addition to ongoing costs like staff salary utility bills, lease payments or advertising. The board of Director and the top management lives on fresh air and the sunshine with dwindling in bank cash flow?
The owner and the finance controller trying to fob off me, “We really don’t need this kind of policy.”
Increase working cost
“Well, having some oversea buyers with the confirmed letter of credit at sight, can you offend your buyer by postponed shipment date? If so, how many times, is there no late penalty and your goodwill and credit-worthiness could restore when it tarnished. This policy would solve this temporary relocation cost and the rental cost to compile with the shipment date. Pouring salt on the wound, some supplier would inflate your buying cost price besides the logistics cost. Your creditor adds fuel to fire, giving a shorter credit payment term. The maxim goes, misfortune always knock twice”
“The bank would close their umbrella during this trying time, and seek for a reduction of capital-outlay to your factory when the building blaze to the ground, coupling with these 2 events, Can you cope with it?”
The following clauses are the extension of the Standard Policy for Loss of Profit Insurance.
Free of Charge Clauses:-
Denial of Access/adjoining Premises risk.
Alternative Indices.
Waiver of Material damage proviso.
Payment of account – cash call*.
Premium Payment.
Payment Clauses.
Supplier’s and Customer’s premises.
Upward adjustment Clauses 25%.
Failure of supply from public utilities at least 48 hours.
Accumulation of Stock.
Department Clauses.
New Business for 1st year only.
Salvage sales.
*Payment of account: The beauty of this policy when an insured peril occurs, the insured can evoke by asking insurer for advanced payment at least 50% of the sum insured within 14 days’ notice without incurring any interest charges prior to finalize a report provided that it is a genuine claim.
How to derive adequate sum insured for Loss of profit Insurance will roll out soon?
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Claim insurance damage on fallen tree and branches. The atmospheric warm has gradually increased the earth temperature by a few degrees over 5 decades. It is mainly due to the massive deforestation by human economic activities. Having said this, Malaysian generally does not like to plant the tree around their house compound. They often worry about who is going to pay for their property damage due to the fallen tree or branches? Is it a naive question?
Neighbor’s fallen tree
” Jamin, my neighbor house damaged by his own fallen tree last night during the heavy downpour coupling the strong wind, very fortunate, the tree does hit my root, otherwise I will sue him for compensation. Anyway, he deserved it as I did warning when we moved into our new house.” he sarcastically told me in the afternoon high tea.
” Peter, don’t be so mean to your neighbor, did you help him to clear the debris removal of the fallen tree?
“Sorry, it is none of my business, he asked for it.”
“Peter, your neighbor does he claim his fire insurance”
“Jamin, you mean we can claim fire insurance? What does the fallen tree have anything to with it?
“Yes, of course, did you remember when my house’s one of the Rhur trees big branches hit my rooftop during the last month strong wind?.
“Yes, I do”
“Ask your neighbor to contact me if he needs a helping hand.”
My own fallen tree
It was in 2014, my family slept around midnight after outstation long distance travel. I heard a loud noise hitting my roof echo silence night. We took no notice of it and continuing our sleep.
The next morning, we discovered that one the 2 feet in diameter branches with almost 30ft long hit the edge of the roof. We suffered no injury.
My family panicked. I told my son took the from Canon camera out from the dry box with the 18-200mm zoom len.
I took the fallen branches from the main trunk and the damaged roof of the various position including the close-up images.
The logger cut the branches with the removal of branches debris. I called a handyman to repair the damaged edge roofing. Since it occurred on Saturday, in order to mitigate the further loss, I immediately instructed them to do within a day.
On Morning day I informed the insurer about the loss claim. They formed me the fire insurance claim form.
Claim Documents
I submitted the following the documents to claim the loss due to fallen branches.
1.) The duly completed claim form signed by me.
2.) All the images snapped by me and I emailed to the insurer.
3.) The original bills of repairing roofing, the sawing of the 2 ft diameter log and the removal of the debris of the branches and broken tiles.
4.) I photocopied of my bank account.
Claim Approved
After one week, I received the approval offer letter RM (4750-250) = RM4 500.00 for the final settlement. A few days later, I checked my bank account, the insurer had already bank in the claim amount. In less than 14 days, my claim was all settled.
DAMAGE BY FALLING TREES OR BRANCHES AND OBJECTS THEREFROM
Rate: 0.010%
By paying an additional premium, the insurer shall extend to include loss or damage to the property to walls, gates, and fences around directly resulting from damage by falling trees or branches and objects.
The insurer shall be borne an excess of RM250.00 of each and every claim as ascertained after the application of any condition of average.
Applying all the policy incorporated herein. Any loss or damage shall be deemed to be a loss or damaged by fire.
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Bank unethical practice forced client insured property risk. We love and hate the bank. They forced us to take an insurance policy when the property loan is approved. Someone called them they are the licensed loan shark or legalized Mafia bully the poor and apple polishing the rich. I had a nasty experience with one of the bank staff.
Bank Loan approved
Bank unethical practice forced client insured property risk
“Mr. Jamin, your housing loan is approved. Please sign on the dotted line on a blank house owner proposal form with a sum insured for a quarter of million. In the event of a fire, you can claim for the said amount.”
“Only fire? What about the storm and tempest, impact damaged or bush or falling, subsidence landslide?
“No, only fire, Mr. Jamin”
“Sorry, no signature, I use my own insurer which is also your panel of the insurance company.”
Fire insurances
I brought 2 fire insurances on the building with all the necessary perils, I assigned a quarter million assigned to the bank another balance $600 000 to my own name to avoid the average clause in the event of an either partial or total loss. Another householder policy to cover fire and full theft for the house content.
Victim
My investor in the unit trust or mutual fund holder was a victim of the bank. I could not help her when signed the fire insurance proposal form as I went oversea excursion with my whole family.
Land Building
She purchased a corner lot land residence building, the property was earlier converted into a commercial lot. She took a 90% margin loan out of 2 million on the purchase price. The bank gave her a favorite low-interest rate with 8 units of condominium plus a small scale factory building in the same year with the same bank. Everything went through smoothly without a hiccup, but not every day was a sunshine day.
The fire razed the building to the ground due to short-circuit. No injury. The car repair workshop closed on Sunday.
Verdict
“Mr. Jamin, can I get back the sum insured of 1.8 million dollars? It was 10 years loan tenure. another 5 more years to service the loan.
“No way, you cannot get the full sum insured as it depends on the reconstruction cost recommended by the fire adjuster. I am not sarcastic, but true, let us wait for the final adjuster claim report.” I consoled her.
She could only claim for 700 000 dollars based on the finalized claim report. Speechless and dumbfound on seeing the recommendation as she overinsured her property and paying the extra premium to the drain.
“Why you take the bank word as gospel after all money is not a problem to you. Take it as a costly lesson learned” I scolded her in her office.
The bank often takes the panel of the real estate appraiser’s valuation report as a guide to insured the property. The 2 million dollars building comprises of (1) the element of profit, (2) the land price tag. Both are not taking into consideration in the event of a claim. The insurer only indemnified you for the loss the building prior to the fire occur. The property appraiser and the bank have a shallow deep knowledge of insurance. Be wise to consult the insurance broker who has the insured’s best of interest. The bank just acts as an agent to the insurer, who has to obey the rule and regulation lay down by the insurer.
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Receiving an email from Texas USA to cover a shipment of 1 full load of a container of aluminum oxide ex-warehouse to Pasir Gudang plant. Reading an email was a luxury for me at that time, nevertheless, I received a call at 5.30 pm.
USA Call
A lady called me, “Can I speak to Mr. Jamin Wong”
“Yes, I am speaking, how can I help you, lady?
“An Full container load of aluminum oxide tentatively to leave the factory premises at midnight, can you cover this shipment for us?
“Sure, no problem, but, I need a chemical analysis report of the cargo, also the packing method and material use.”
“OK, that is fine, just give me half an hour to furnish you all the necessary documents, if you have the doubt please call me and my aides, we work 24 hours.”
Underwriting
After 30 minutes, upon notifying the full chemical analysis report that the aluminum oxide used as a catalyst for the plastic manufacturing plant.
The inorganic compound filled in a double side steel metal drum to prevent any spillage on the ground. Thick carton paperboard gaping between the drums prevent the shifting movement in the container.
Health Hazard of Aluminum oxide
It can absorb into the body by inhalation of its aerosol.
The short term exposure can cause eye and upper respiratory tract irritation.
Aluminum oxide on the long-term exposure causing damage to the central nervous system.
Premium calculation
Any chance of hijacking and the consignment falls into the hand of the terrorists? The probability of risk calculation determines like the launching of a satellite using rocket. Chances of an explosion of the rocket to derive the reasonable and acceptable premium?
Condition Attached
“I accept the risk but on condition with an addition a public liability coverage. Is it ok with you?” I called the lady counterpart in the USA.
“Why a public liability insurance attachment?” she asked me.
” Due to the health hazard associated with the biohazard cargo during an impact damage, the substance in the powder form will pose a danger to the public at large. Would you like your company being sued for billions of dollars? I advised her.
“OK. Do what is deemed necessary and not to forget to give us your insurer’s bank detail for payment of premium. Have a nice day and I look forward to receiving the policy via email.”
I underwrite the policy promptly with a restricted clause, covering both of policies with the sum insured totaling more than 2 million dollars.
“The consignment on land transit permitting only during the off-peak period avoiding any accident occurs.”
Inserting such clause prevent any unforeseen accident when the shipment destined at the Johor Baru causeway. Cars and truck bumper-to-bumper crawling along the causeway stranding thousands of people. A disastrous scene when a collision with the container, people valued their precious life either run or jump into the Johor Strait.
A few months later, we had lunch with the regional manager. The HQ marine underwriter informing us they turned down the regional manager’s proposal initially, subsequently, you had underwritten it finally. Indeed, a shocking discovery of that day! Having a vast decade of experience more than me in the industry but did not pursue the Chartered Insurance Institute marine paper. A loss prevention is always the best practice of insurance.
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Have you ever heard that an agent helps the insured with the fraud claim? You might ponder is it possible? But it is true, I did stumble across such an unscrupulous agent in my 27 years in the insurance industry. A lot of ignorance insurance agents with poor knowledge selling an insurance policy. Whom to blame? The agent or the insurer?
While during any seminar, I mingled with a lot of insurance agents. An insurance agent in the insurance industry for a few decades, but the level of knowledge in insurance is instead skin deep. They live in their comfort zone, never want to upgrade themselves by selling the easy product i.e motor insurance. Another. class of insurance knowledge is minimal
In the insurance agent training session, I remember vividly a senior with three decades of experience in the insurance industry.
“Can we have two or more fire policies for the same insured like the case of life insurance?” he asked me in the class.
“Fire insurance unlike life insurance is reinstatement with the principle of contribution in the event of a claim. Life insurance all policy will pay for the assertion, but reimburse for medical expenses.”
I further explained to the class how does the contribution works in the event of a claim.
In Malaysia, an insurance agent representing one life principal and two general insurance principals, respectively.
An agent can act in life and general insurance. One day, he Approved me for the claim, as he was confused with the final claim settlement.
Fire Fraud Claim Damage by Insured
A fire broke out in the furniture factory, engulfed the storeroom and destroyed all the content. Nevertheless, the owner insured the store-room for a million covering finished product.
” Why the owner gets only half of million dollars to claim instead of one million.”
He further explained that the owner insured the store with two insurers for half-million dollars each. By right, the insured should get a million dollars. The insured intend to seek legal action against both the insurers for the claim settlement.
“Don’t be so naive; the insured will lose more on legal and court fees without any chance of winning the case.” I enlightened him.
“Why not? it is the insured’s right.” He argued with me.
“The insured has so much money to spend on legal and court fees. Why not use the fund to spend to rebuild the storeroom? In your client case, the contribution principle applies.”
Contribution to avoid insured fraud claim
The contribution principle in insurance is a rule that specifies what happens when a person buys insurance from multiple companies to cover the same event, and that event occurs. For example, the principle says that if the policyholder files a claim with one company, that company is entitled to collect a proportional amount of money from the other involved insurance companies.
The factory store was insured for half a million dollars from both insurers namely A and B. The actual total loss amounting to 500,000.
How does contribution work?
Thus A and B can contribute by equal shares i.e., 250,000 each, therefore add up to 500,000. Hence, it is called contribution by equal shares.
The loss is shared equally among all the insurers that have valid insurance on the risk, up to the insurer’s limit of liability.
Either A or B pays out 500,000 individually; which is known as the contribution by limits.
All insurer’s share of the total loss is the percentage of that loss that the insurer’s policy limit represents as part of all insurers’ applicable limits.
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Why an insured needs a professional, ethical, knowledgeable quality insurance agent/broker? Up the wall when an invisible agent when a claim occurs, instead of lending a hand to handle the claim when an insurer denies liability giving reason only up to them to understand. The agent washed their hand off in the crisis juncture. The frantic insured had nowhere to turn to except engaging a legal assistant which can avoid. A tailor-made policy is a win-win for the agent and the insured based on the latter’s need.
2 different agents, 2 clients, Same Insurer
Stumbling across during my earlier years in the general insurance industry, having the same insurer, the same occupations, 2 insured with 2 different agents also have 2 different treatments during the claim.
Keen and earnest to expand my insurance business, thus I studied diligently to get my Chartered insurance qualification from the UK. Coupling with paper qualification and hands-on working experience working in a public listed establishment, easily convince the conglomerate corporation and closing exorbitant premium policy. Called it a Quality working day when you can earn $5 000.00 in commission a day why closing a $1000 policy premium.
Selection of Risk
Combing every inch, leave no stone unturned of the Johor state in marine insurance and Good in Transit policy market, there are so many factories and logistics firms need our professional services, plenty of giant fish in the ocean to catch and selecting those quality pay masters, discarding the rotten one.
One morning, I received a call from my existing customer “Mr. When are you free to drop my office, my friend needs your advice on cargo claim matter.”
” Mr. Boss, no problems, is this coming Monday morning at 10.a.m. Is it alright with you and your buddy?
Quality Agent/Broker
The sorrowful story when an insured having the half-baked agent to handle the insurance.
2 Various Policies Covering the same Occupation
Mr. WWW having a bigger fleet of lorry named X Company. I handled their cargo insurance for the past 3 years, for an annual premium of $18000.00 for each loss of $200 000.00 with an excess of $2 000.00. Including the armed robbery and hijacking clauses, the insurer paid the full settlement of a loss claim of $150 000 less an excess. The ill-fated lorry conveyance expensive tile had skipped out the NS highway divider, landed on the 20 feet ravine, the smashing tiles piling the monsoon drain.
His buddy Mr. YYY also running a transport company half of the fleet size comparing with Mr. WWW. A motor specialist agent closed the Good in Transit policy an annum premium of $27 000.00, a deductible of $5 000.00 for each loss valued at $50 000.00 per conveyance. One of his lorries ferrying low-end market title, a bus rammed into the back part of the lorry from behind on the NS Highway, causing the consignment a total loss without any salvage value. The insurer refused to pay him a single cent, that really puzzling after hearing his buddy successful claim on the similarity scenario.
Wrong Policy
Carefully, I scrutinize the 2 separate policies from 2 various intermediaries on the cargo insurance with the same insurer and concluding the pros and cons.
“Mr. Y, you have brought a liability policy i.e. Bailey and warehouseman policy. No doubt this policy is covering your cargo insurance. It covered damage and pilfered to the cargo under your custody in the warehouse. It does cover the good while in transit between the sellers to the buyer destination. What you need is a Good in Transit policy. Even though the same insurer issued 2 separated policy covering the same subject with a variable protection, truly apologize I can’t help you out in this matter.”
It is utmost dangerous to buy insurance from those agents who don’t understand your need.
Bank Manager does not understand insurance got burn on his finger will be the next topic.
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