Fire Insurance Policy is designed to provide indemnity to the Insured in the event of loss or damage to the property Insured by fire or named Peril as specified in the Policy Schedule. This is a tariff class of insurance ie, the premium rate is fixed by Bank Negara Malaysia.

 

There are 3 classes of fire insurance for propertied namely domestic, commercial and industrial. Fire insurance for domestic properties include all residential buildings such as terrace houses, bungalows, high-rise apartments and condominiums. Commercial properties include shop houses, complexes and office buildings. Industrial properties include all buildings occupied for industrial purposes.

 

Fire Insurance can also cover damage to contents of buildings due to fire. Such contents will include personal effects in residential properties, office equipment, furniture & fittings in commercial buildings as well as machinery and equipment in industrial buildings.

 

The basic Fire Insurance Policy covers loss or damage to the Property Insured caused by:-
a) Fire
b) Lightning
c) Explosion of domestic boiler or domestic gas cylinder not forming part of any gas work

 

The Fire Policy may be extended to cover loss or damage caused by other named Perils including RSMD, Aircraft & other aerial devices, Earthquake & Volcanic Eruption, Storm Tempest, Flood, Explosion, Impact Damage, Bursting or overflowing of water tanks, Electrical Installation Clause (B) etc.