PERSONAL INSURANCE

1. Houseowners Policy

The Houseowners policy is a popular packaged insurance product for home owners.

What it offers:

•       It covers the owner of a home against loss as a result of Fire, Lightning, Explosion, Subterranean fire(underground fire), Impact Damage from vehicles, Bursting of pipes & water tanks, Storm damage, Earthquake, Flood and damage from parts of falling aircrafts.
•       There is also a RM50k public liability cover and also a loss of rental cover subject to 10% limit on the total sum insured.

Depending on the underwriters assessment of the risk & payment of additional premium, you may be able to get these extensions:

•     Full theft coverage (payment of claim without the evidence of forcible violent entry).
•      Subsidence & landslip coverage.
•           Riot, Strike & Malicious damage endorsement.

2. Householders Policy

The Householders policy covers the contents/ belongings of the homeowner or person living in the house or apartment. Charges for covering contents for a landed property and that for an apartment differ.

In addition to the coverage mentioned under the Houseowners policy for the contents or belongings i.e. Fire etc., there is also an additional cover against Burglary which makes this a very good personal insurance product. With both policy, you can be rest assured that you will get protection even when you are not at home.

Home Insurance Claims Guide:

•           Report to police within 24 hours of loss and obtain report.
•      Report to agent / Insurer advising circumstances, nature and extent of loss.
•     Take necessary actions / precautions to prevent / minimize further loss / damage.
•     The insurer may appoint an adjuster to conduct an investigation. It is important to  preserve any evidence of loss / damage for investigation purposes.
•            Claim form duly signed and completed
•       Fire Brigade Report (applicable for claims due to fire)
•       Original invoices of damaged/ stolen items
•       Quotations and / or receipts of repairs or replacement of property / items
•       Photographs showing areas of damage

3. Personal Accident (PA)

The Personal Accident policy is a 24 hour world-wide accident personal protection plan that pays out a monetary amount in case of accidents that result in the following:

•      Section A - Death (To nominees/                                       beneficiaries under the policy)
•       Section B -  Permanent disablement (e.g. loss or limb   etc.)
•      Section C1 - Temporary Total Disablement   >         (Weekly
•      Section C2 - Temporary Partial Disablement >             Benefits,C2 is 50% of C1)
•             Section D - Accidental Medical expenses

      Depending on the Insurer and type of policy bought, these are some of the additional features of cover that is usually given together or in part without additional cost:

•        Disappearance
•        Motor-cycling
•        Food poisoning
•              Murder and assault
•        Riot strike and civil commotion
•        Most games and sports (as an amateur only)
•        Drowning, suffocation by smoke or poisonous fumes
•        Exposure to the elements as a result of an accident.
•       Insect and animal bites which cause immediate death  or injury
•       Intoxication (except drunken driver as governed       under the law)
•       24 hours worldwide protection
•       Medical expenses (~ RM3k – RM5k limit)
•       Burial or Cremation Expenses of RM3,500 (depending on plan)
•      Corrective Dental and Cosmetic surgery up to RM3,000 (depending on plan)
•       Service Tax on Medical Expenses incurred is payable
•     Flying as fare-paying passenger on board licensed passenger carrying aircraft. 
•      Reimbursement for Traditional massage of RM30 & RM250 for sinseh treatment  (depending on plan bought & not all PA packages provide this)
•      Death and Permanent Disablement Benefit is payable over and above weekly benefits, medical expenses or hospital income (depending on plan bought)

      An important point to note is that the PA policy should be considered a policy to create an “estate” for your loved ones in the case of death or provide some measure of financial support if there is permanent disablement due to an accident. It’s strength lies here and is very the cheapest form of protection available in the market, before term life policies.

      Although there is a section to cover for medical expenses, it is only a minimal amount and usually will not be sufficient to cover medical expenses in most major private hospitals. Therefore, the PA policy should not be taken as a primary policy to pay for medical expenses and it will not pay for instances where hospitalization occurs due to illness; only due to accidents.

4. MOTOR/ AUTOMOBILE

Motor insurance is the most common type of insurance in Malaysia. In Malaysia, it is a requirement that all automobiles on public roads be insured either through comprehensive or third party insurance. As a requirement to renew your road tax, it is compulsory to prove to the Road Transport Department (JPJ) that you do have valid insurance. With the latest development

What it offers:

Comprehensive Cover

The cover offers protection against financial loss because it covers fire, theft and accidental damage to the Insured's vehicle in addition to the protection against the legal liabilities to third party for death and bodily injury and damage to property that may arise through the negligence of the driver.

It is safe to say that most Malaysian Insurer’s will offer you NIL excess or deductible if your car is valued at  <RM100k, no larger than 2,000 cc in engine capacity and if you are aged between 21 and 65 years old.

Third Party Cover

The cover offers protection against financial loss as a result of damage the driver of the vehicle may cause to the property of a third party. It also provides protection against any claims that may arise because of the death of or injury to another person through the negligence of the driver.

Motor Insurance Claims Guide:

• Report to the police within 24 hours.
• Report to the agent / insurer as soon as possible.
• Note down names, addresses, registration numbers of third parties involved and their insurance details.
• Note down names, addresses and telephone numbers of independent witnesses.
• Do not pay money to any third party without the insurer's written consent.
• Refer to the agent / insurer immediately all summonses, communications received from the police authorities.
• Forward agent / insurer immediately all correspondences from third parties
• Leave damaged vehicle at any Franchise (e.g. Auto Bavaria, Cycle & Carriage) or PIAM authorized workshop.
• Complete claim form and forward to broker / insurer with a copy of police report, registration card, road tax disc, driver's / insured's IC and driving license.

For lodging Third Party Claims, the following procedures are to be observed:-

• Obtain police sketch plan and investigation results.
• Fault investigation report (important!!) i.e. from the police.
• Notify third party in writing of your intention to claim and request him to notify his insurer.
• Obtain estimated cost of repairs from the Franchise or authorized workshop.
• Forward estimated repair costs together with adjusters report and other supporting documents to insurer / third party's insurer.

5. DOMESTIC MAID INSURANCE

For those who have hired help at home in the form of a foreign maid can buy insurance and cover them in case of accident etc.

What it offers:

Under the first section of the policy, there is the Bank Guarantee section that covers the penalty payable to the immigration department should the maid “run away”. The coverage for this section is limited to RM500 and RM1,000, depending on origin of your maid e.g. Indonesia, Philippines etc.

Under the second section of the policy there is a Personal Accident cover for the maid of RM15,000 which is standard and also cover for Permanent Disablement, Reimbursement of medical bills, weekly benefits, repatriation to country of origin as well as Hospitalization & Surgical expenses. These are all covered due to accidental causes only.