Land, buildings,

plants, machineries,
Chapter 1 Is largely focused
with 'intangibles'
equipment, furniture, such as revenue,
works of arts
collection goods,
definition
pecuniary insurance
income, or
financial value.
stock in trade, property called as
computer system Consequential
record, and so on. Loss insurance

Basis of insurance
Real property - Pecuniary insurance
Improvements or fittings
may also be provided
permanently affixed to
the land or a structure on via fidelity and
it. Also referred to as contract guarantees,
'immovable property.'

Property insurance pecuniary insurance credit insurance, and
insurance for loss of
Personal property-
Property that is not rent as a result of
permanently connected to property damage or
one area, such as a car,
destruction.
furniture.
 Policy that promises to pay a

Chapter 1
When there is a high
likelihood of the entire precise sum agreed upon by
insured property being stolen both the insured and the insured
at the same time, this premise as the worth of the subject
is used. object.
The premium is based on the
full value of the property
The sum insured will be
FULL TIME BASIS
AGREED VALUE
does not take into account the
market value at the time of
loss.
determined by the total value Except for automobile
of the property at risk at any insurance, it is illegal to issue
given time. an agreed value coverage, and
FULL VALUE = SUM INSURED it is only permissible for cars
X LOSS MARKET VALUE used for personal purposes.
BASIS OF INSURANCE
This approach is employed When the insured item
when there is very impossible consists of a pair or set of
for the full property to be articles.
stolen at the same time In the event of loss or damage
The sum insured will be to any of the set items, the
determined by the maximum
possible loss at any given
FIRST LOSS BASIS PAIRS AND SET CLAUSE
insurer's obligation shall not
exceed the value of the
period. damaged or lost element.
The premium shall be based The effect is to restrict the
on the first loss sum insured insurer's obligation and to
FIRST LOSS = DECLARED adhere to the indemnity
VALUE X LOSS MARKET concept.
VALUE
 Burglary insurance
indemnifies the insured Chapter 2 Loss or damage to the
property insured by
against loss or damage
theft accompanied by
to property insured by
THEFT accompanied by
the actual forcible and
definition
Scope of cover
the actual forcible and
violent breaking into or
out of the premises or
violent breaking into or any attempt thereat.
out of the premises or
Hold up or armed
any attempt thereat is
robbery
also covered.

burglary insurance

By a trick Moveable items which

are considered as ‘high
value’ and target risk of
By a key; whether thieves.
an original or will not cover subject matter Premise which the
insured is responsible to
duplicate repair the damage as a
result of the theft or
By secretion attempted theft of the
in the premises above properties
 General conditions standard warranty

Notice/communication with the insurer must be

done in writing, i.e. a 'claims form' must be
utilized in the event of a claim.
Burglar Alarm Warranty
The insurance coverage will be rendered
ineffective if the insured commits any
misrepresentation or fraud.

all differences or argument regarding the

amount to be paid in the event of claim will be
Safe Key Warranty
referred to an arbitrator

If the insured has multiple policies covering the same

risk, the insurer is not obligated to pay more than
their rateable fraction of the loss/damage.

Premium Warranty
IThis insurance can be terminated at any time at the
request of the insured or at the option of the insurer by
sending 14 days notice to the insured. Certain condition
will be applied in refunding the premium paid.
 General excljsions
Loss/ damage to property such as money,
Loss/ damage to property more coins, medals, securities, stamps, stamp
specifically insured under another collection, jewelry, watches, furs, precious
policy i.e. motor vehicles or plate glass. metals, precious stones, documents, business
books, manuscripts, sculptures, rare books,

Loss/ damage to property arising while

Loss /damage to property occasioned
the premises are in the occupation of a
by any person lawfully in the premises
sub-tenant.

Loss/ damage to property caused by fire, Loss /damage to property arising from
explosion, lightning, earthquake, war risks, unoccupancy for a long period (usually for
nuclear risks, riot or civil commotion, a period exceeding 30 consecutive days).
radioactivity, flood or storm.

Loss/ damage caused by the act of Loss/ damage caused the act of the ‘criminal
Loss/ damage to property resulting. form breach of trust’, i.e. dishonestly uses or
cheating, i.e. fraudulently or dishonestly
a safe/ strong room being opening by a disposes entrusted property and in violation of
induce someone in obtaining the
key any direction of law which such trust is to be
property. discharged.
.
This policy is intended to
Chapter 3 Key Warranty
Whenever the premises
are closed for business,
indemnify the insured
all keys and records of
against loss of money in
transit or in premises by
any causes unless
introduction
warranties
combination numbers of
the
safe/drawer/cabinet/stro
otherwise excluded form ngroom must be
the policy removed from the

premises.

money insurance

loss of money in transit Burglar Alarm Warranty

Burglar alarm must be
installed at the premises

loss of money in
premises
scope of cover warranties It must be inspected,
maintained, efficient and

kept in working order
Loss or damage to safe/ during the currency of
the policy.
cabinets/ drawer/ strong
room
 claim procedure

in the event of money lost in

The insured must In the event of premises or in safe or
immediately The insured must money lost in transit, strongroom, the insured must
as soon as possible submit:
give notice to the the insured must
duly completed claim form,
police and inform insurance submit: police report,
take all practical company in duly completed audit trial and
steps to discover writing – to claim form, supporting documents
leading to estimated
the guilty person inform the police report,
amount of loss,
and circumstances of records showing burglar
alarm
to recover the loss, place of loss amount carried service/maintenance
money lost. and records where applicable
and the estimated and
(usually within 24 personal
loss amount. evidence of breakdown of
hours from the particulars of defenses such as damaged
occurrence). carriers. strongroom etc.
 exclusions

Loss of money due
The insured or If a key or duplicate key
If the money is to the dishonesty of
anyone is used to access the
not in a locked an employee unless
working for premises (safe or loss discovered
safe or
him or her may strongroom), the within three
strongroom, it contents of the working days of
suffer a loss of
can be lost on premises (safe or occurrence. (some
money due to
the premises strongroom) are lost insurer
stated that
collusion or the loss must be
outside of unless the key was
fraudulent obtained violently or discovered within
business hours.
embezzlement. through threats. seven days of

occurrence)

 FIDELITY GUARANTEE
To indemnify an employer against
all direct pecuniary loss that the
employer might sustain through
act of fraud or dishonestly by an
employee during the period of
insurance and in the course of his
employment.
INSURANCE
it must be discovered within
Employer's Form
discovery period
Scope of cover

Forms used by
CHAPTER 4 the insurer
Applicant's Form

Not more than 6 months after

the resignation/retirement
death of the defaulting Discovery Previous
employee Employer's Form
Not later than 6 months after period
the termination of the policy

Types of cover

Individual policy Collective policy with Unnamed Blanket policy

name employees
Is issued where one Schedule containing names
employee is covered by and duties of the
name for a stated guaranteed employees
amount Amount of guarantee set
against each name
Need to continuously revise
the information
collective policy
Employees are covered by
categories
Issued to a well established
business
Cover all employees
without showing names
and positions ( when
number of guaranteed
employees is large
 CHAPTER 5 what is it ?
Deliver
Credit is the system of buying or
CREDIT selling goods without immediate
INSURANCE payment being made. In certain .trade credit insurance
cases, payment is to be made consist two
not on a specified date, but 'on compartment :
demand'. This is why it is possible
for sellers to affect credit whole turnover
MECIB insurance when dealing with insurance
customers who may be unwilling
or unable to pay. specific account
Established in 1977 as a joint venture policy
company with the government,
commercial banks an insurance
companies being shareholders.

Government linkage was enhanced in

1988 with the placement of MECIB
under Bank Industri Malaysia
Berhad’s ownership, and industrial
bank wholly owned by the
Government.
MECIB only provided export credit
insurance product to exporters.
Merged with The Exim (Export-
Import) Bank of Malaysia Berhad
(EXIM) on 30/12/2005 and the two
came to form a single entity under
the name of Exim Bank.
whole turnover insurance
underwriter contracts to cover all
eligible business transacted by a
policyholder within an agreed period
(12 months)
Underwriting is done on the basis of
previous loss records, future
turnover and trade expectations,
and the quality of customers.
specific account policy
Can be on a fixed or adjustable basis
and will cover a number of named
buyers. The premium will be based on
the amount of debts outstanding,
among the named buyers, at any
one time.

A surety bond guarantees the
fulfillment of a legal obligation. It is a
risk transfer mechanism where the risk
of doing business with principal is
shifted from the oblige to the surety
company. It is a written agreement
between the surety who is obligated
to obligee, for the payment of money
if the obligation set in the bond is not
fulfilled by the principal.
PRINCIPAL - Primarily
responsible for the fulfillment
of the obligation set forth in
the bond (Eg: ABC
construction Sdn. Bhd)
OBLIGEE - The beneficiary under
the terms of the bond (protected
party) (Eg: Majlis Perbandaran amount to the obligee if the
Alor Gajah – who open the
tender for building construction)
A surety company may
CHAPTER 6 occasionally request collateral
to reduce the risk of the bond.
Collateral is sometimes
required for high risk principals
or unusual obligations.
What is it ? Collateral There are many forms in which
collateral may be provided
(i.e. cashier’s cheques,
certificate of deposit etc.)
SURETY
BOND
Surety If the principal does not
Parties
Bond Claim fulfill the obligation under
the bond, the obligee can
make a claim against the
bond.
SURETY - The party who is Types The surety company will
promising to pay a certain step in to make the
obligee whole.
principal not fulfillingthe
obligations (Eg: Insurance
company) Goals Contract Bond
Performance Bond
Supply Bond
Tender/Bid Bond
Government Bond Court Bond Maintenance Bond
 SCOPE OF COVER EXCLUSIONS

THE POLICY COVERS LOSS OR DAMAGE

PROPERTY IS TEMPORARILY HOUSED IN THE

TO THE PROPERTY INSURED BY ANY

COURSE OF TRANSIT FOR THE PURPOSE OF

CAUSES (ALL RISKS) WITH THE PRINCIPAL

STORAGE, MAKING UP, PACKING OR

CAUSES OF LOSS / DAMAGE BEING FIRE,

PROCESSING.
THEFT, OR ACCIDENTAL MEANS; CAUSED BY THEFT OR PILFERAGE IN WHICH ANY

WHILE BEING LOADED ON, CARRIED BY, OR

EMPLOYEE OF THE INSURED IS CONCERNED AS

UNLOADED FROM ANY ROAD VEHICLES

PRINCIPAL OR ACCESSORY.
(LORRY, VAN, TRAIN, CAR, MOTORCYCLE,
CAUSED BY THE ACT OF CHEATING WITHIN THE

TRAILERS, ETC) MEANING OF THE OFFENCE OF CHEATING SET

CHAPTER 7:
OUT IN THE PENAL CODE.
GOOD IN

TRANSIT
UNDERWRITING

WARRANTY CONSIDERATION

FULLY CLOSED AND LOCKED WITH

THE IGNITION KEY REMOVED

TYPES OF POLICY PREVIOUS INSURANCE AND CLAIMS

HISTORY.
THEREFROM.
SECURITY DEVICES FITTED TO THE

HOUSED OVERNIGHT IN A SECURELY

SINGLE TRANSIT POLICY VEHICLES

LOCKED GARAGE OR IN A VEHICLE

ANNUAL COVER POLICY QUALITY OF DRIVER, E.G.

COMPOUND WITH AN ATTENDANT

EXPERIENCE
ALWAYS ON DUTY.
 sCOPE OF
PROPERTY

COVER INSURED

The insurer will indemnify the insured against

A boiler and pressure plant

loss or damage to the property specified in

the schedule and its accessories parts and

is a plant which operates

spare parts as a result of: under high pressure and is

Accidental collision or overturning or

subject to the risk of

collision or overturning consequent upon

mechanical breakdown or consequent upon
explosion or collapse.
wear and tear.
Fire, external explosion, self-ignition or

lighting
CHAPTER 8:

Burglary or theft
ENGINEERING
EXCLUSIONS
THE TWO
INSURANCE
EVENTS
Insurers will not be liable for any loss

SPECIFICALLY
or damage sustained while the property

is being used outside the Territorial

COVERED ARE : limit stated in the policy, or while

equipment is in transit by road, rail,

Explosion, pressure
inland waterway, lift or elevator.
Loss or damage caused by overloading

explosion and often

or strain. Damage caused by the willful

includes flue gas (or

or dishonest act of the insured's

employees. Delays, confiscation or

furnace) explosion
detention by Customs or other

Collapse authorities. Loss of accessories parts

and spare parts unless the property is

stolen at the same time.

 CONTRACTRORS ALL RISK INSURANCE ERECTION ALL RISK INSURANCE

C.A.R is policy provides a very wide cover and is
divided into 2 sections namely:
Section 1: Material Damage
The insurer will indemnify the insured in respect of loss
or damage to the property insured arising from any
cause (all risks), subject to the exceptions stated in the
policy
Section 2: Third party liability
The insurer will indemnify the insured against sums
which the insured become legally liable to pay as
‘damages’ consequent upon:
• Accidental bodily injury to/illness of third parties
(fatal or not)
• Accidental loss of/damage to the property belonging
to third parties(occurring in direct connection with the
construction of the property insured under Section 1
and happening on or in the immediate vicinity of the
site during the period of cover.
E.A.R policy is designed to cover engineering
projects involving erection/installation of electrical
or mechanical equipment.
Section 1: Material Damage
The insurer will indemnify the insured in respect of
loss or damage to the ‘property insured’ arising
from any cause (all risks), while it is on the contract
site from unloading, during erection and up to
completion of testing or taking over by the
CHAPTER 9 : purchaser, whichever is earlier, subject to the
exceptions stated in the policy.
CONSTRUCTION
INSURANCE Section 2: Third party liability
The insurer will indemnify the insured against sums
which the insured become legally liable to pay as
‘damages’ consequent upon:
• Accidental bodily injury to/illness of third parties
(fatal or not)
• Accidental loss of/damage to the property
belonging to third parties

GENERAL EXCLUSION (C.A.R & E.A.R)

The insurer will not indemnify the insured in respect of loss, damage or liability directly or indirectly
caused by or arising out of:
War, invasion, act of foreign enemy, hostilities (whether war be declared or not), civil war, riot, strike,
civil commotion, a group of malicious persons or persons acting on behalf of or in connection with any
political organization.
Nuclear reaction, nuclear radiation or radioactive contamination.
 PLATE GLASS BAGGAGE
SCOPE OF COVER
Plate glass insurance policy is designed to cover all kinds of fixed glass
SCOPE OF COVER
such as sheet, muranese and other lettered and ornamental glass against Baggage insurance policy provides coverage against loss or damage to the
loss or damage by breakage.
CHAPTER 10 insured’s baggage while traveling on holiday or business trip. The cover
granted is on “all risks” basis with the principal causes of theft, loss in
transit, fire and accidental loss/damage.
EXCLUSIONS
EXCLUSIONS
A
Breakage of glass arising out of earthquake, war risks, riot or civil
commotion, volcanic eruption, nuclear risks, fire, explosion, lightning. Loss/damage or loss of possession occasioned by or in consequence of

L
Breakage of glass whilst not fixed confiscation by any government or local authority.
Breakage of or damage to frames/framework of any description. Loss or damage due to wear and tear, moth, vermin, insects, mildew or
Breakage due to dilapidation of frames or framework. other deterioration.

L Loss or damage occasioned by or in consequence of earthquake

CONDITIONS
UNDERWRITING CONSIDERATIONS

R
This insurance shall not commence until the premium has been actually Moral hazard of the insured must be taken into account because the
paid to and accepted by the insurer or policy has been issued and no opportunity for fraud and carelessness is much greater. So, the insurer

I
payment in respect of any premium shall be deemed to be payment to need know the proposer’s character
the insurer unless a printed form of receipt signed by an official or duly Description of property to be insured

S
authorized representative of the insurer shall have been issued therefore. The schedule of trip include the duration of rip
Every notice or communication to be given or made under this insurance CLAIM PROCEDURE

K
policy shall be delivered in writing to the insurer.
Give immediate notice to the insurer or to insurer’s representative if
UNDERWRITING CONSIDERATIONS abroad stating the circumstances of loss/damage.
In the event of theft, lodge a police report (not merely mislaid or missing).
When considering proposal for this insurance, the following factors will Take practicable steps in identifying the guilty person and to recover the
have to be taken into account by the underwriter: lost property.
General description of the premises Deliver to the insurer a detailed statement in writing of the loss or damage
Detailed description and type of glass
 LIVESTOCK
SCOPE OF COVER
In the event of the death of any animal specified in the policy schedule
during the period of insurance OR
EXCLUSIONS
This insurance does not cover intentional slaughter, whether by or under
the order of any government or public or local authority or any person or
body having jurisdiction in the matter or otherwise, except that the
insurer will not invoke this particular exclusion as a defence.
This insurance does not cover death directly or indirectly caused by
happening through or in consequence
The insurer shall not be liable in respect of loss resulting from or arising
out of accident, illness or disease sustained or contracted elsewhere than
in Malaysia, Singapore and Brunei.
SPECIAL CONDITIONS
Every animal described in the schedule must be sound and in perfect
UNDERWRITING CONSIDERATION
health and free from injury at the commencement of each period of
insurance.
The insured must give immediate notice to the insurer of any accident to
or illness or disease of any animal and shall at his own expense
immediately provide for adequate attendance and treatment by qualified
veterinary surgeon and when required shall furnish a report by the
attending veterinary surgeon on the condition of the animal.
UNDERWRITING CONSIDERATION
The condition, health and general soundness of the animal to be insured.
Because of the complexity of assessing an animal’s health, it is usual
practice of an underwriter to request health certification from a qualified
veterinary surgeon. Knowledge of the main features of animals’ anatomy,
psychology and the normal functions of their bodies is an important
requirement for risk assessment in this class of insurance, including the
type of use of the animal.
ALL RISK
SCOPE OF COVER
It covers accidental loss or damage to the property insured from any
causes and anywhere within the territorial limits (Malaysia, Singapore and
CHAPTER 10 Brunei); unless specifically excluded.
EXCLUSIONS
Scratching or denting or cracking or breakage of any articles of brittle
nature; unless caused by theft and fire.
Loss or damage to deeds, bonds, bills of exchange, promissory notes,
A cheques, money, coins, stamps, or other documents of value.
Loss or damage occurring outside the location/ territorial limits stated in
L the policy schedule
L
All risks coverage is very wide and insurer is expose to risks which
sometimes beyond the wildest imagination. Due to this reason, extra care
R are to be taken and coverage should only be granted if honestly and
integrity of the proposer is not in any doubt.
I CLAIM PROCEDURE
S The insured shall give immediate notice to the insurer (if the insured is
abroad, to the insurer’s nearest representative) stating the
circumstances of the loss or damage to the property insured.
K In the event of a claim for theft, the insured must immediately lodge a
police report and shall satisfy the insurer that the property has been
actually lost by theft; not merely mislaid or missing.
The insured shall take all practicable steps in identifying the guilty person
and to recover the lost property.
The insured shall deliver to the insurer a detailed statement in writing of
the loss or damage with an estimate of the value of each article loss and
amount of the damage sustained.