Claim insurance damage on fallen tree and branches

Published June 28, 2017May 27, 2017 by Jamin

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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Storm and tempest cover house on Fire insurance

Published September 27, 2021May 19, 2017 by jamin

Storm and tempest cover house on Fire insurance. I was away for 2 months having a tour to Sarawak state during the Chinese New Year. I had a good time at the Kapit for a cool forest stay and Sibu for the Foochow-style cooking steam fish. The Kanowit town for the longhouse stays etched in my memory. Kuching snapping scenic sunset pictures of thousand at the waterfront.

One of my old buddies called to me when I back to Johor.

Storm and tempest cover house on Fire Insurance

“Jamin, did you receive my WhatsApp video on the zinc roof dangling dangerously at my 2 story factory?

“Mr. X, when and how it happens?

“The windblown off the zinc roof on 14 Feb night, I discover the next morning?

“Did you do any repair?

“No, I make inquiries with one insurer’s branch manager and another veteran agent with 3 decades of insurance experience. Both agreed that it is not payable.”

“Why?”

“As the zinc roof still dangling by the side of the wall, the workmanship or rather upkeep or maintenance shall not be payable in the fire insurance policy.

What is Storm and tempest cover house on Fire insurance?

“Don’t worry, please email the policy jacket to me, after reading throughout the policy, I shall advise you what to do.” I consoled him

After study the policy content, I called Mr. X

“Please get a handyman to repair the zinc roof immediately to mitigate further loss. Also, get the repair bill for claim purposes. Meanwhile, I shall liaise with the insurer for the claim form and information about the loss claim. Even though it is almost two months have lapsed, you’re still entitled to the genuine claim.

Claim approval under storm and tempest cover

I helped the insured to complete the claim form, and enclosed the repair invoice via registered post to the insurer. 2 weeks later the claim was approved less excess of RM200.

The insured called me for a meal and asked me how I did it, why others gave the negative feedback answer. In this stage, I reserved my comment because the 2 persons mentioned earlier were also my friends. One of them happened to me, my insurance mentor when I joined this industry.

What are Storm and Tempest in Fire Insurance ?

A storm is defined as a violent atmospheric disturbance that produces severe winds, accompanied by rain, snow, or hail or by thunder and lightning.

A tempest is an exceptionally severe storm. Do we still recall the British hurricane of October 1987?

Storm and Tempest cover means to you

A storm or tempest damages your property. You are protected against the potentially very costly repairs. In the above case, if the insured does not repair the zinc roof, gradually, the wiring system will get wet and soak in the rainwater. A short circuit will prevail soon causing more damages and lead to a huge claim. Do you want it, of course not? Nevertheless, prevention is better than cure. The insured pays an extra premium, has peace of mind.

Coverage

Storm and Tempest cover allows you to claim for damages that occur due to a severe weather event. It includes damage to the building structure or to items within the building damaged by the storm. For example office equipment affected by a leak from, or collapse of, an otherwise sound flat roof. Do you want to undergo a major repair of your roof? Of course not, it is advisable to pay an extra premium to have such extensive coverage.

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Air Transportation Linear Accelerator Ex USA after 9/11

Published June 28, 2017May 10, 2017 by jamin

How to underwrite the Air transportation Linear Accelerator Ex USA after 9/11? I was in Kuantan port at that particular time for being part of the team of investigating shipment from Indonesia being hijacked. Lloyd Intelligence mid-ocean satellite AIS coverage detected the ship was abandon at the Kuantan port minus cargo.

Back to the hotel for a rest, there was an email pops up in the inbox requesting me to underwrite a shipment of air cargo. Why me again? Totally exhausted for the past 4 days with a few hours of sleep, I slept like a log until the next day.

Linear Accelerator

The USA’s manufacturer supplied me the detail specification of the medical equipment. What is Linear Accelerator? A linear accelerator (LINAC) is the customized medical equipment. It produces high energy x-rays or electrons to conform to a tumor’s shape. It can destroy cancer cells while sparing surrounding normal tissue.

The danger of X-ray

X-rays and electrons are classified as dangerous material. The terrorists can use it to make dirty bombs. X-rays can cause mutations in our DNA. It might develop cancer in later in life. For this reason, X-rays are classified as a carcinogen by both the World Health Organization (WHO). The possibly at low doses, radiation might increase the risk of cardiovascular disease and some other non-cancer diseases. The long term effect might inherit down to the third generation.

I emailed the party for the following detail before I can issue their air cargo policy with terrorism clause.

REQUESTING

1. A copy of product liability. 2. The size of the unit load container. 3. How to pack the equipment? The prevention measure for the leakage of x-ray. 4. Any depletion of uranium after constant use of the linear accelerator? 5. How to dispose of the balance dosage?

Risk Management Visualization

The ong wait for 2 hours in the hotel indeed killing me. My mind occupied with the full the images and video clip. The collapsed of the Twin Towers of the
World Trade Center like a match box with people jumping off from the window for the precious life. My memory etched with the horror of the dead bodies strewn on the debris. What was the probability of terrorist attack for another passenger plane after 9/11? If the plane was shot down, the catastrophic impact on the people around the zone area? Accept or decline the risk.?What is the precaution step is taken if I accepted the risk.? If I decline the risk can they find another underwriter in a short span of time? The plane would take off in the next 12 hours.

Upon receiving the full detail of my request, I issued the policy. The additional clause with an extra premium for the sum insured of RM (Malaysian Ringgit) 12 000 000.

Policy Issued

ICC (Air)
Terrorism Extension Clause: It is agreed and understood that subject to the Insured having paid the agreed additional premium, this Policy shall be extended to cover the Insured’s liability for claims made against the Insured for the bodily injury of and or property damage to any third party at the specified premises directly caused by any terrorist organization. This clause is subject otherwise to the terms, conditions, and exceptions to this Policy.

Warranties:

A.) 2 armed air marshals on the plane to escort the cargo from the USA to Singapore Airport.

B.) Another 4 plain armed escorts to accompany the conveyance from Singapore to a designated hospital in Malaysia during the off-peak period.

C.) A compliment Public liability policy with the Terrorism extension clause.

All the term and conditions were complied with, the consignment arrived sound. A few years later, the fungal infected the 2 units of medical equipment as the hospital had not found suitable professional personnel to handle the equipment.

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Bank misrepresents consumer putting insurer at risk

Published April 24, 2019May 6, 2017 by jamin

Bank misrepresents consumer putting insurer at risk. The bank is making an excess profit out of ignorance consumer’s expenses and putting the insurer at risk especially in the underdeveloped nation. There is a lack of the law and regulation to govern the bank activity.

Freight Forwarder.

The freight forwarder besides handling the logistic of the client’s cargo, also, advises the purchase of marine insurance. Batu Pahat manufacturers imported textile cotton yarn from Taiwan and Pakistan. Export the garment and knitted apparel to Europe and North America respectively via Singapore port. When the import shipment arrived at the port, after the customs’ inspection, the FCL was then break bulk into 20′ or 40′ lorry before conveyance to its destination.

2 Insurance Policies

One need to have the bill of lading, invoice, packing list, insurance policy and the customs’ form for customs declaration purpose. I often noticed that there were 2 insurance policies enclosed.

Bank misrepresents

I later found out the reason for 2 policies coverage for the same consignment. When the bank issued a letter of credit. It also helped customers to buy the marines policy. The 1st policy was to cover for the sea voyage and the 2nd policy for inland transit after Singapore customs’ clearance at the destination, the local practice for years.

Claim repudiate

One importer purchased mainly on Fob term, there was another policy from a local insurer to cover the inland transit. It protected her shipment from accident damage. She did not want to repeat the same ill fate as her elder brother.

The electronic part imported from Taiwan totally damaged at the midway to the factory. The insurer repudiated his claim stating the coverage only up to port only, and not to his factory.

” This is weird, I am sure you know XYZ company, we pay the full claim for the electronic part that accidentally damaged at the highway,” I explained to my potential client.

” Oh… you are only to handle the marine insurance for them. When are you free to drop by my office to discuss the cargo insurance?”

International Trade term

If you buy on a CIF term, it is fine with the same insurer for 2 separated policies. Buy on FOB term, there is a foreign insurer to cover the sea voyage. The local insurer has a disadvantage covering the inland transit. Who knows if there is any invisible damaged during the sea adventure. The best advice to have the cargo thoroughly examined before loading.

There is a charge of opening a letter of credit, another 2 insurance premiums to pay. Thus the bank is making an excess profit out of the client’s ignorance.

The solution

I advised all my clients for both the importer and exporter for CIF term. The “Warehouse to warehouse clause” must insert into the policy. It must an All risk or ICC “A” to protect themselves, It is also a win-win situation for both insured and insurer. It saves a substantial amount of insurance premium. Also, it is much more convenient to deal one insurer and not two. No more any finger-pointing when a claim occurs.

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Claim and underwriting Rosewood Coffin Scratch

Published May 4, 2017April 28, 2017 by jamin

Claim and underwriting rosewood coffin scratch. It was one of the weird kind of cargo that I had to underwrite during my 23 years working experience in the general insurance industry.

Introduction

My partner of second handed imported car tire from Japan and South Korea Mr. Leong of Singapore called me on Monday, April fool morning to underwrite a shipment of 2 exorbitant coffins.

“Can I have the detail of this shipment? I asked him.

“Please liaise with the producer, Mr. James at Ho Chi Minh City, Vietnam shortly, he is expecting your call urgently, as the shipment is ready.”

“Good morning, Mr. JAMES, I am Jamin, Mr. Leong partner from Singapore. Can I have the detail of this consignment?”

Customised order

“My client, a business tycoon from Singapore has called to make this customized rosewood coffin with dragon and phoenix carving on both sides for his elderly parent. We use the high-quality craftsmanship for the carving. Indeed a filial son to his parent. It is hand carving by 10 craftsmen for 3 months to complete a coffin. We take total 6 months to finish the whole the assignment. Rosewood must be more than 100 years old to make such exclusive coffin.There is a sparkling of gold dust sprinkle on the carving to give a shiny beam look. Later the coffin would be cremated.

Tailor made

“What other requirement or special clauses for this cargo.?

“The client would not accept any scratch on the outer surface of the carving or any other part of the wooden surface. It means to bring in bad omen or misfortune for the descendants. It is due to this clause, no insurer in Vietnam dare to cover this type of risky adventure. Is it alright with you?”

“Mr. James, it is fine with me, but I need you to follow strictly my instructions before the shipment.”

Pre-shipment survey

1. A Switzerland cargo surveyor was needed to inspect the packing before stuffing into the flat rack container.
2. The surveyor had to take a detailed close-up video clip on every inch of the cargo especially the dragon and phoenix carving.
3. A dendrochronologist’s verification report that the age of the rosewood must be more than 100 years based on the ring of the wood.
4. Double layer corrugated box outside and styrofoam on the inside for packing purposes.
5. The coffin must be wrapped with the air tight thick plastic bag to prevent moisturized of the wood.
6. A professional handler must be supervised the stuffing of the container.
7. There must be protective foam stuffing in between the container.
8. A 30% was added to the invoiced valued of S$2 million to determine the sum insured.

Policy issued

I issued the policy with following clauses:-

ICC “A” clause
Constructive total loss if container dropped into the sea
Loading and unloading
Hijacking and Armed robbery especially open sea near the Southern Philippines and Indonesia.
Strike riot and malicious damage.
Warehouse to warehouse clause.
Scratched and dented.

Claim

The cargo arrived Singapore sound. The mishap happened during customs inspection. One of the professional handlers had accidently pierced through the double layer hard carton paperboard with his long knife. There was a visible scratch on the dragon head of this exquisite coffin.

I had to file a claim using the earlier video clip done by the pre-shipment surveyor at Vietnam.It was negligent of the freight forwarder carried out their duty without utmost care.
The claim amount was $1.3 million less an excess as stating the marine insurance policy. It was an agreed value policy. Of course, there was a salvage value for this kind of high quality and costly rosewood.

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Bank unethical practice forced client insured property risk

Published June 2, 2017April 20, 2017 by Jamin

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

“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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Underwrite a health hazardous marine cargo with terrorism extension

Published July 9, 2017April 13, 2017 by Jamin

How to underwrite a health hazardous marine cargo with terrorism extension? A topic that most underwriter will reject the insured especially after September 11. Is it difficult to underwrite such a cargo? A veteran who had conquered the Mount Everest seeing no danger of in climbing it.

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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How to claim employee dishonesty coverage?

Published June 5, 2017April 7, 2017 by jamin

How to claim employee dishonesty coverage? In the course of employment, sometimes the employer often discovers the stock gradually diminishing. It is very hard to detect the culprit, especially in the department store. During the annual stock-taking, a 2-3% marginal loss is all right for the management, as it has already taken into consideration for the loss.

A tragedy case I handling for more than a decade, still fresh in my mind.

Logistic

A lady boss of a logistic company once called me to insure their company good in transit. I suggested to her another policy compliment the shortfall in the good in transit policy. She agreed to have another policy to cover the dishonesty of the employee during their employment. The fidelity policy was issued with the full list of employees’ name and identity card number.

Employee’s Particulars

“Why do you need to have their particular” she questioned me.

“The reason is I need to check any criminal background especially the driver and attendant. The traffic police department should have all their offenses and also drug taking while driving.

A few months later when the both of policies were in forced. She called me about the loss of 50,000 dollars of consignment.

Police Report

“Please make a police report and also the driver’s particular. Let the police dealt the driver for further investigation.” I advised the panicked owner.

A few days later the police arrested the driver.

The driver had worked for the company more than 10 years, a diligent and responsible married man with 3 kids plus another one on the process. He confessed to the police that he sold the whole cargo for 25000 dollars. The money was to pay the high bill for his wife who was undergoing kidney dialysis. He was at the wits end in seeing wife getting weaker as the day went by. She could hardly undertake any household chores. The eldest daughter had to stop schooling at primary year 5 to take care of the family.

After knowing the predicament of the driver, she canceled the police report. She let the driver continuing working with her. With wide social contact, she managed to get the patient undergoing kidney dialysis at the government hospital. The kind and soft-spoken lady boss gave another 20 000 dollars to her driver repairing his depleted house besides, sending back his daughter to school until high school with fully sponsored by the company. She worked for her until tied her nuptial knot with another transporter’s son. All end well.

The fidelity guarantee policy response in this case as she brought policy with sum insured of 100 000 for each loss with a 1% excess. The insurer paid 49 000 after deducting the excess.

Fidelity Guarantee

An insurance policy designed to indemnify the Insured (the employer) for the loss of money or property sustained as a direct result of acts of fraud, theft or dishonesty by an employee in the course of employment.

Employee theft insurance.

It protects the business against property thefts committed by employees. It is also called employee dishonesty coverage. Employee theft coverage may be written alone or in conjunction with other crime coverages, such as Computer Fraud Coverage, under a commercial crime policy.

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The Bursting of water tank caused damaged to property

Published July 19, 2017March 31, 2017 by jamin

The Bursting of water tank caused damaged to property. Do we still remember Condo pool’s glass panels crash to the ground? Fortunately, there were no reports of injury.

Nowadays, finding a water tank on the rooftop is quite common in our home and commercial building. A case I recalled vividly in 1995. A greenhorn in general insurance except for marine insurance which I acquired during 6 years with Robert Kouk dealing with Ship Chattering for both import and export shipment.

A Greenhorn

After a few months on the job training, I closed fire insurance on a double-floor shop retailer doing trading and also, repair sewing machine. On the second year of renewal, the insured called me his machinery had damaged by the bursting of the water tank on the top floor. A crack in the cement ceiling, water gushing down from the roof-top, damaged some of the new and old machinery.

Painful Mistake

Naively I consoled confidently to the insured. “Sure you can claim under the commercial fire to your plant and machinery.” Subsequently, I informed my branch manager about the scenario.

“Sorry, Mr. James, you could not claim a single cent for the water damaged to your machinery.” My branch manager informed the insured the outcome result after checking the policy jacket. I walked off silently, ashaming to face the insured. I learned a painful lesson.

After the incident, I signed up the former Australian Insurance Institute course for self-study. Realizing that I lacked the product knowledge to handle such situation.

Pet Shop

A few years back, there was a case in the state Johor Malaysia, whereby the pet shop was burnt down by fire. The animal either died of suffocation or burnt to charcoal black. The fire brigade sprayed water to put off the fire. An air-condition dealer on the next door found out that all new and repair air-conditioned had been damaged by the water. The owner lodged a claim report for the damaged to his machinery and his stock.

Smiling pet shop owner was laughing all his way to the bank after receiving the full claim. But he regretted not listening to the agent to buy a loss of profit or consequential loss of profit insurance.

No Claim

The gloomy faced air-conditioned owner cursed himself to save a penny, in the end, he lost an arm. Saving a small amount of money, he lost 200 000 dollars on the stock and wiring damaged. A stubborn businessman did not want the extension peril of Bursting of the water tank when entering into the contract of insurance.

Let say the sum insured be 500 000 dollars. The Rate was merely 0.005%. He saved 25 dollars but in the end lost Rm 200 000, indeed dug his own grave, There is an excess of 100 dollars. Thus, the final claim would be 199 900 dollars.

Bursting and/ or overflowing of Water Tanks, Apparatus, and Pipes

The policy covers damages caused to the insured property by water or otherwise due to overflowing of water into the tanks by accident or bursting of the water tanks, water pipes or other apparatus like facility water purifiers.

It is advisable to cover commercial building or house fire insurance with the bursting of the water tank. It is an automatic cover for house owner policy. It is not worth to save such a small sum of premium, but in the end, losing an arm and leg like the air-conditioner dealer. It is my advice to those insureds don’t be so calculating and stingy.

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Who Pays Aircraft Damaged to Your Home

Published April 25, 2017March 25, 2017 by jamin

Who Pays Aircraft Damaged to Your Home? The MH 17 still fresh in our memory? The aircraft debris scattered over a large area destroyed not the farm and also the farm house. A corpse that crashed through her rooftop and landed on her bed? The incident that shocked the whole world, and the sour relationship between the nations, and finger pointing at the faulty party. Who was the culprit behind that killed everyone on board, Russia or Ukraine?

It is not wise to claim from the airline at fault, as it takes years to settle your claim. Moreover, the aircraft belong to Malaysia, the incident occurred at Ukraine. One needs to hire 2 lawyers paying an exorbitant legal fee to handle the claim that could last for years.

Aircraft Damage

Aircraft Damage Loss, Destruction or damage caused by Aircraft, other aerial or space devices and articles dropped there from excluding those caused by a pressure wave.

Do we still remember the MH 2133 that crashed on the Tawau, Sabah, Malaysia airport slum area? The pilot error was the main cause of the accident on 15 September 1955 taking the lives of 32 of the 49 passengers and 2 of the 4 crew, 34 in all. The plane took off from Kota Kinabalu, Sabah to Tawau, a domestic flight on fine weather condition.

A facilitator coached us on the fire and house owner and householder special peril.

” Aircraft damage including the debris of rocket, satellite, spaceship, spaceship and meteor. The fragment of satellite and rocket which was unheard, but the latest advanced and development of the Superpower 5, it is now common to see the small particle floating in our space. The day will come when it penetrates through the atmosphere and landed on our home. Although it is just a small tiny particle, the great velocity that its travel at lightning speed will have a huge impact damage to our property. Nobody can image how disastrous it can cause.

2 houses were damaged that insured by 2 separated agents.

A double storey house was insured for 300k with an extensive renovation. A tiny metal object from the aircraft had caused extensive damaged to the wall and the content. The insurer paid for the property damaged amounting to 35K and the house content another further payment of 15k. It was the 50k total payment for the claim. The house owner was pleased with his insurance agent, paying a 1k for the reward in helping him for fast handling the genuine claim within 2 months.

Another case the insured who brought his house fire insurance with his nephew, a fresh graduate with 3 years in life and general insurance experience. The fire insurance with aircraft damage extension, as the insured house was build closed to the Tawau airport. He advised his uncle to buy the fire insurance for the 500k bungalow. The fire engulfed the houses when the aircraft crashes at the slum area, ripping off all the houses. The aftermath with only the cement and pillar structures remained behind.

The insurer rejected the claim due to the following reason.

1.) It was built on slum area without the government approval. It had no housing architect plan without prior approval by the town council.

2.) The petrol generator light up the house instead of normal government electric supply.

3.) The owner moving into the house without any CFO.

4.) The owner answered the CFO had issued to him in the proposal form.

The honesty of the insured is utmost important when filled all the particular in the proposal form. The agent must update his knowledge before advising his client in obtaining a fire insurance with aircraft damage.

The insurer finally refunded the 3 years full premium to the insured as if there was no insurance on his house. A painful lesson learns by the agent indeed.

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