Who pays the Bank’s mistakes on fire insurance?

Who pay the Bank's mistakes on fire insurance

Who pays the bank’s mistakes on fire insurance?

Do you have fire insurance on your home? If a fire occurs, who pays the bank’s mistakes on fire insurance?

Who pays the bank's mistakes on fire insurance?

Generally speaking, the working class will always dream to have a roof over their heads. In order to archive the goal, they toil hard from dawn to sunset. In fact, some even do moonlight on several jobs in a day. They save every single penny to purchase their 1st home. They called the modern Zombie living merely eat and sleep. In the same manner, they come out to face the sunshine when they save enough to make the 10% or even 30% down payment for their dream property. Are they happy? Please read on.

Insured’s Call when the bank’s mistakes on fire Insurance

“Mr. Jamin, how come your insurer sent my fire insurance policy to the old address? The building had already demolished.” my relative called me during a fine morning after having my morning 10.00 break.

“Let me check first, I shall call you later.”

“What is the policy number you are referring to? I asked her.

“I do not have such a policy number, could it be you taking a loan from a bank. It arranged the fire insurance on your behalf.”

Yes, it is correct the bank already auto debit my account for the past 3 years on this shophouse.” she answered me with a soft tone.

I was on my way back home on a routine visit to the hospital. I dropped by to read their policy, shocking to find out that the bank for the 3 years making the same imbecile mistake.

Classification of Risk On Fire Insurance by the Bank

Who pays the Bank’s mistakes on fire insurance?

As per attachment here, the policy stating the building is vacant and occupied also the sum insured. But, in fact, it occupied as a shop doing retaining business. Dear readers, let us ponder how could such an inexcusable error made by the bank?

Again, which risk is higher? Is it the vacant shop house or retailer? The answer is crystal clear the retailing business attracts many customers, thus the higher the risk compared with the unoccupied building.

In actual fact, for the vacant risk, the insured pays a lesser premium, higher premium for the retailer shop house. Occurring of fire razed the building to ash, will the insurer pay? The Principle of Utmost good faith shall apply to whom. Is the bank or the insured? In the final analysis, the insurer would deny such a claim.

Insurable Interest On House Fire Insurance


Who pays the Bank's mistakes on fire insurance?
Who pays the Bank’s mistakes on fire insurance?

In brief, Malaysia is a unique country with a different rule and regulation. Thus, the local bank also operated a subsidiary composite insurance to insured its risk. In this scenario, as if the bank taking out the money from the right pocket and transfer to its left pocket. It could be a general or life insurance. Despite the Bank Negara Malaysia gave warning to the bank stating it could not force the borrower to buy fire insurance with them. Nevertheless, it has fallen to a deaf ear, either the bank is greedy to make an excess profit out from the borrower or the insured is very ignorant.

In the same token do bank has any insurable interest in the building when giving out housing loan? Does the bank suffer any financial loss without the building? Absolutely not, the bank suffers loss in the event of borrower default payment. Even the building raze to the ground, the bank suffers no loss as long as you keep paying the loan repayment.

Creditor Insurance for the Borrower


Who pays the Bank's mistakes on fire insurance?
Who pays the Bank’s mistakes on fire insurance?

The insured is still continuing paying the installment even without the existence of the building. The bank providing the credit to the borrower, the bank should issue the creditor’s insurance to the borrower. In the event, the borrower passed away, the bank would suffer the financial loss, as it has insurance interest on the loan amount, not on the building.

UNDER INSURANCE

The Malaysian ringgit has depreciated against the US dollars about 30-35% coupling with 6% of SST implemented on 1st September 2018. It was inadequate to cover the building that brought from the developer in 2014. The purchase price was RM350 000.00 and the loan amount was RM244 000.00. In 2017, the bank still insured the same amount as before without any upward adjustment. No inflation for the past 3 years in Malaysia? Even the kid knows the answer. When a claim occurs, the average rule of the insurance law would apply. People would say insurer always conned the insured. To sum up, who is the culprit for this mishap?

For the benefit of the layman, it means that if you insured your property of RM500K less the land price of RM 100K from the developer. In fact, the Material cost has risen to a total of 30% over a span of 5 years period. In the event of a claim on total or partial loss of the building, the insurer pays for the 70% final settlement, you absorbed the balance of 30% as your act as own insurer.

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How to Buy the Right Home Insurance and Typhoon Damage?

How to buy the right home insurance and typhoon damage?

Do you often ponder how to buy the right home insurance and typhoon damage?
Typhoon Hagibis – which means “speed” in the Philippine language, Tagalog – was the most powerful typhoon to hit Japan in six decades. In fact due to the fast climate change over a few decades, mainly, clear the jungle for human activities. Human greed like the planting of oil palm in Indonesia and the cattle rearing of Brazil and Argentina has deteriorated worsens the Mother Nature. The typhoon occurs too frequently with more severe impact damage to property. 


How to Buy the Right Home Insurance and Typhoon Damage?

Malaysia by nature typhoon of its location, we never or seldom hear about the typhoon damage to our home. But, lately, the Mini-tornado strikes Kedah villages; 20 houses damaged. Thus, we must on our toe, and not sit on laurel anymore. 
Generally speaking, most of us talk about home insurance; what we mean is the basic fire or house owner insurance. Equally important is the home content policy. Usually, we forget about the home content coverage, we either ignored it or have no knowledge about it. 

2 Types of Home Insurance cover typhoon damage

Property insurance – Designed to insure the physical components of a building/domestic e.g., walls, roof, flooring, and so on. During the signing of a loan offered by the bank, we have to sign this form of coverage in order to secure a loan. The sum insured depends on the quantum of the loan amount.

Homeowners insurance – It covers the contents of a home e.g., furniture and fitting, electrical appliances, personal objects, and all the home contents items
Uniquely, both the plan will cover storm or typhoon damage. Of course, like some other kind of insurance, there is differencing coverage between these two insurances. Thus, it’s far especially important to examine closely or understanding the contents of the policy coverage. 

How do I know if my home insurance covers typhoon damage?


How to Buy the Right Home Insurance and Typhoon Damage?

There are a couple of ways you can discover whether the policy covers your property. Either the house itself or its contents damaged by the typhoon or storm tempest that strikes the hazardous area.

Firstly, the detailed schedule you need to fully grasp the actual meaning specified in the policy. This content highlights the detailed coverage in the event of loss and damage to your property or content. Furthermore, any additional excess or deductible with the amount of which the insured has to pay in the event of a claim. 

Not only had the schedule closely examined by yourself, but also not to forget the Exclusion Clause. It listed down all the items the insurer is not liable during the loss or damage. If you are feeling that you had to take for a ride by the underwriter, you can renegotiable directly or via an intermediary. Of course, the company would very happy to oblige the request provided you are willing to pay an extra premium to delete the exclusion item. But nevertheless, the removal is done by the improvement of the house. For instance, use concrete slab mixed with steel for the piling the foundation during construction to avoid the typhoon uprooted the whole building. 

How to Buy the Right Home Insurance and Typhoon Damage?

The second way to discover whether or not your coverage covers typhoon damage to your property and contents is to liaise with both the insurer and dealer directly. For example, use a reputable broker to customize drafting the policy until your satisfaction.

In the final analysis in regard to the policy understanding, the main important factor is to ensure you had the coverage for typhoon damage to property and contents. After all, it is pointless to cry over the split milk after realize you do not have the cover when the typhoon or storm strikes your nest.

5 points for Typhoon damage for home insurance


How to Buy the Right Home Insurance and Typhoon Damage?

1. Be aware of your insurance limits
The maximum domestic insurance coverage will cover damage caused by typhoons. As a matter of fact, the insurer will not entertain all your claim submission, it implies that the company pays the entire claim. All insurance plans sold include a set of claims limits.

For example, if your house insurance with a sum insured of US$ 2 million in overall damage. It the typhoon strikes and damages the house amounting to US$2.5 million. The balance of half a million shall be borne by you as if you are acting as your own insurer.

Likewise, it is the same for the coverage of your home contents. There are typically express limits stated in regards to loss from a natural disaster. In light of the technical jargon wording in the insurance policy, it is best to read and analyze all the policy wording that is a crucial factor in the event of a claim. By the same token, pay close attention to the wording of the policy. As some coverage include a separate restriction associated with natural disaster and insurance claim limit.

2. Certain Losses do not cover by typhoons damages
A large quantity of home insurance especially those built in the flood-prone zone with routine flooding. Usually, the insurer will not grant you coverage on the occasion of a flood. Similarly, if you’ve built a house in a flood-susceptible place and coupled with a typhoon causes flooding, no coverage for your home. In most cases, the insurer will bear in mind these claims on a case-by means of-case basis. 

Furthermore, the landslip is an exclusion clause. The typhoon often accompanied by heavy rainfall within a span of time. Thus, with water gushing down in volume, there is a greater risk of muddy landslip along the steep slope area. If that occurs the landslip damaged your house and contents, the insurer will deny your claim. 

How to Buy the Right Home Insurance and Typhoon Damage?

3. Contents in outdoor will not cover 
In homeowner insurance, all the contents stored outdoor will exclude. For instance, if you store the BBQ set or washing machine on the deck, porch, rooftop patio. The typhoon blew away all the contents, your loss will not entertain by the insurer. 
Likewise, it is also really worth noting here that some property insurance guidelines exclude outside fixtures too. As with everything else here, it is advisable to review your policy files to make certain you realize the exclusion.

4. The insurer, not cover your negligence damages or loss
All in all, your private home has exclusion states that if the damage is resulting from, or attributed due negligence then any claims. If you let your windows open throughout a T10 storm and there may be critical water damage to property or contents, the insurer shall deny your claim. 

How to buy the right home insurance and typhoon damage?

5. Other home insurance alternatives
As stated above you can combine with various types of home policies to make up home insurance. If you are intending to buy a policy to protect your home and content, please be sure to contact us in drafting a policy to your heart content.

How to Buy the Right Home Insurance and Typhoon Damage?

Renew Road Tax Online, Avoid Traffic Jam, Parking & Queue

Renew Road Tax Online, Avoid Traffic Jam, Parking & Queue

Renew Road Tax Online, Avoid Traffic Jam, Parking & Queue

Nowadays, it is a fin-tech world, a click to renew road tax online, avoid the traffic jam, queue, and parking.

With the implementation of Myeg is the Malaysia e-government services provider, allowing us allows us to transact with various government agencies online. It is a fast and easy process for Renew road tax online and auto Insurance renewal.

Why use Myeg for Road Tax?

Delivery road tax disc your doorstep, without leaving home, convenient and hassle free. A service- provider creates time-saving, cost-effective and accessible at any time. Not only allow a user to pay other government related services online, also enjoy 30 % on their road tax. Renewal process no registration card requirement provided you have a valid car insurance policy in force.

Who can use this service?

Driver with a Malaysian registered vehicle with JPJ can use MyEG to renew their road tax, no registration of an account. Just log on to www.myeg.com.my and fill in the JPJ Online Road Tax renewal e-form.

Easy step to renew road tax with MyEG

First – VISIT MYEG PORTAL

Please log on to www.myeg.com.my and fill in the JPJ Online Road Tax renewal e-form. The browser search for https://rdtax.myeg.com.my/MYROADTAX/

Second: FILL IN THE E-FORM

Fill up the JPJ Online Road Tax renewal e-form.

Third: INSURANCE DETAILS

After finishing the insurance details requirement, click proceeds. MyEG system will verify your data through the JPJ system.

Fourth: MAKE PAYMENTS

Made payment via
Credit or debit card – Visa or Master
FPX – Deduction from your bank account through FPX
Online Banking – Direct deduction from your Bank account (M2U and HLB)

Fifth: PRINT E-RECEIPT FOR RECORD

The issue of E-Services receipt via email for a Successful transaction.

How do I receive my road tax after payment?

  • Delivery to your doorstep with charges levied as follows: Klang Valley: RM6.00 (2 working days).
  • Peninsular Malaysia: RM8.00 (with 2-3 working days).
  • Sabah & Sarawak: RM10.00 (within 5 working days).
  • Express delivery (within Klang Valley): RM20 (within 6 hours) *T&C apply.
  • You have the Biometrics thumbprint for ALL DELIVERIES by MyEG Services Logistics Officers to verify and record the details of the receiver.
  • Faulty or unreadable identity card, the Logistics Officers will take a snapshot of the identity card to ensure that there is no dispute from the receiver.
  • Identity card uses for verification purpose.

Frequently Asked Question on MyEG Services

Do I need to print my Registration Card?

With MyEG, no need to print registration card, unless a claim, you can call us at 03-7801 8888, for an assistant to print the registration card. Otherwise, you may just continue to renew online again the following year.

Is it safe to renew my road tax online?

Yes, it is safe and secure, audited, verified and approved by Land Transport Department. The Malaysian Government has given the mandate to MyEG Services to provide the online renewal services.

Can I renew my road tax if I have outstanding traffic summonses?

During the renewal process, Land Transport Department (JPJ) online service check any outstanding summons and blacklist records at both JPJ and PDRM’s database systems. To proceed with this renewal, ensure no outstanding traffic compound,

How do I make claim damage?

AXA Affin General Insurance Berhad

Claims Hotline
Contact Number

(+603) 2170 8282 (Press 2 for Claims)

MYEG Customer Service

You may call the following numbers from Monday-Friday between 9.00am to 6.00pm. Please call the Customer Service– 03-7801 8888 (Road Tax and Insurance Renewals).

Now Get your car road tax renewal online. Please browser https://www.myeg.com.my/services/jpj

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