Piam urges consumers and businesses to review their home insurance policies

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PETALING JAYA: In light of the Covid-19 pandemic and ensuing Movement Control Order (MCO), the General Insurance Association of Malaysia (Piam) has urged consumers and business owners to review their policies property insurance such as their fire insurance and business interruption coverages if necessary. .

He said the situation is unprecedented and that all businesses and service providers are doing their utmost to ensure that their customers or insureds continue to be served within the parameters of their respective contracts or agreements.

“In this regard, not all insurance companies offer the same coverage for an insurance policy,” Piam said in a statement today.

He confirmed that all relevant fire insurance policies which are conditional on occupancy of the premises will not be affected by the restrictions imposed by the AGC.

“In short, policyholders are assured of continuity of coverage despite the vacancy of their premises during the MCO period. However, policyholders are required to take all reasonable precautions to protect their premises during this period, ”said Piam.

However, she stressed that the exemption does not apply to premises previously unoccupied or not linked to the AGC.

As a general rule, the basic fire insurance policy protects buildings and / or their contents against loss or damage caused by fire, lightning and household gas explosion.

It can also be expanded to include special perils such as storm and storm, earthquake and volcanic eruption, flood damage, impact damage, riots, strikes, malicious damage, landslides and landslides, among others.

For businesses, there may be additional extensions to cover electrical installations, bush fires, spontaneous combustion, sprinkler leaks and smoke damage.

Business interruption insurance, which can only be taken out with fire insurance, compensates the insured for loss of earnings.

“A business interruption policy compensates the loss of gross profit resulting from a fire including damage by all the additional risks specified in the property damage policy. This concerns the reduction in turnover and the increase in the cost of labor, ”explained Piam.

He pointed out that the policy can be extended to include coverage; supplier extension specified / unspecified; prevention of expansion of access; extension of public services (water, electricity and gas); the extension of the specified client; infectious or contagious diseases, murder, suicide, poisoning by parasites, faulty food or drink or sanitation facilities.

Piam also informed consumers that under the current discounted environmental policy coverage, the terms and conditions may differ from insurer to insurer.

He said insurers are working to differentiate products for the benefit of consumers, adding that what is covered by one policy may not be covered by another policy, so consumers are advised to seek out the best protection that meets the requirements. to their needs.

He also advises consumers and business owners to contact their respective insurers and insurance agents or brokers for any assistance / clarification on their property insurance policies.


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