Strike Riot Malicious Damage To Your Own House. Bank Manager does not understand insurance got burn on his finger.

I am sure this topic will arouse and wake up all the potential bank housing loan borrowers. But the sad part of it, most of the bank in Malaysia will insist you to buy a fire insurance to protect the house. Most of the bank still having a subsidiary general insurance company to secure them. Consumers interest is never looked into. Moreover, it is none of the bank business.

In the western counterpart, when the bank provides a loan to a borrower, he/she need to purchase a creditor insurance to protect the bank loan interest. The bank has no insurance interest on your house when it is burnt down by fire.

I did have a bank loan with the local bank, but I insist buying my own fire insurance with my foreign insurer because the coverage is wider comparing to the local insurer.

Signing blank proposal form

When you secured a housing loan, the bank staff insist you signing a blank form on the fire insurance proposal. Likewise is the same to all the bank managers taking a housing loan from their working bank. It is not important whether you understand the coverage because Malaysian often take for granted a fire claim never occurred to them.

Mr. X, one of the bank manager called me, ” Mr. I need your help to claim my house insurance.”

I said, ” Sure, no problems, we fix a date during the weekend.”

I arrived at his home and said, ” Look like you get a recent promotion, now have plenty of money to renovate the kitchen.”

Theft

“Don’t be sarcastic, the theft entering my house via the kitchen washing area. They knocked down the wall structure that below the water sink area, steal some of my inexpensive stuff.” the bank manager informed me.

When the neighbor maid saw it, “What are both of you doing here.”

” Oh, the bank manager want to do some renovation in the kitchen with his recent promotion.”

Special peril

After checking his fire insurance policy. ” Sorry, you cannot claim a single cent from the insurer as you did not add a clause strike, riot, and malicious damage.’ I advised the bank manager.

Since we had known each other for several years, you can call me for free advice. He learned a painful lesson by saves a penny but losing an arm.

Finally, he admitted he really did not know the fire insurance special perils can be added to the policy by paying an extra premium. Please remember the maxim ignorance of the law is no excuse.

RSMD

• Riot – An unlawful assembly of 4 or more persons.

• Strike –  A revolt against established authority or public interest.

• It may be extended to cover deterioration of goods, in addition to direct loss or damage due to fire arising from public disturbance.

Malicious Damage

• Any damage caused due to personal grouse or ill will.
  All acts of commission are covered and Acts of omission are not covered.
  Eg: During a strike, the public may cause some physical damage. This is an act of commission. This is covered.

• Forgotten to switch off the fan and consequential damage caused due to this is not covered. This is an act of omission.

• Prevention of access is not covered. Burglary and theft during RSMD are covered.

Strike Riot Malicious Damage To Your Own House. Bank Manager does not understand insurance got burn on his finger.

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