What is this product about?

This is a combined policy and basically incorporates fire, fire consequential loss, theft, boiler & pressure vessel/machinery breakdown, money in premises and accidental damage perils.

What are the covers / benefits provided?

The policy covers accidental physical loss destruction or damage to property insured such as buildings, plant & machinery, contents and stock in trade in your premises by any contingency other than those specifically excluded. The policy also covers business interruption resulting from interruption of the business in consequent of such loss destruction or damage.

This policy consists of 2 sections:

1. Section I - Material Damage

   Provides you with coverage for loss and/or damage of insured property caused by accidental physical loss destruction or damage to property insured by any contingency other than those specifically excluded.

   The policy also provides extensions cover under Section I:-

   • Theft accompanied by Violent and Forcible entry
   • Boiler & Pressure Vessel/Machinery Breakdown Extension
   • Money in Premises Extension
2. Section II - Business Interruption
   Provides you with coverage for loss of profits/ revenue/ rental and increase in cost of working due to business interruption as a result of accidental physical loss destruction or damage to property insured under Section I – Material Damage of the Policy.

What is the insured property?

You may select to insure any of the following:

• Section I – Material Damage:
  • Building
  • Property Rental
  • Plant and Machinery
  • Business Furniture, Fixtures and Fittings
  • Stock-in-trade

  In addition, the following expenses due to an insured peril can also be insured:

  • Removal of Debris
  • Architect’s, Surveyor’s and Consultant’s Fees
• Section II – Business Interruption:
  • Gross Profits/Revenue/Rental
  • Auditors’ Fees
  • Additional Increased Cost of Working (AICOW)

Period of Insurance

Duration of cover is for one year. You need to renew your insurance policy annually.

How much premium do I have to pay?

The premium you have to pay may vary depending on:-

• Sum Insured
• Occupation/use of the building
• Construction of the building
• Fire extinguisher appliances available in insured premises
• The type of security protection installed in insured premises to prevent loss
• Length of indemnity period for Section II – Business Interruption
• Past loss history
• Our underwriting requirements

What is the payment mode and how do I pay the premium?

This is an annual policy and you may pay your premium in full either by cash or cheque or bank transfer.

What are some of the key terms and conditions that I should be aware of?

• Duty of Disclosure
  - You must give all the facts which you know or ought to know.
  - You must ensure that the proposal form is completed accurately as it forms the basis of the insurance contract.
• Sum Insured
  Material Damage You must ensure that your property is insured at the appropriate amount. You may choose to insure your property on Market Value or Reinstatement Value basis:
  
  1. Market value basis – We will pay the cost of repairing the damaged property less the amount for wear, tear and depreciation.
  2. Reinstatement value basis – We will pay the full cost of repairing the damaged property without any deductions being made for wear, tear or depreciation, provided that the sum covered is adequate to cover the total cost of reinstating the property.
  If the sum insured in your policy is less than the actual value at the time of loss, you are deemed to have underinsured and have self-insured the difference. This average condition will apply in the event of a claim.
  Business Interruption
  You may insure on an estimated sum insured in consideration of your Gross Profit / Gross Revenue / Gross Rental for previous year, as per your statement of account plus projected profit for the current year, if any. If the actual amount earned during the period of insurance is less than the estimated sum insured, a pro-rata return premium not exceeding fifty per cent (50%) of the provisional premium paid will be allowed in respect of the difference.

• Under-insurance
  If the sum insured in your policy is less than the actual value at the time of loss, you are deemed to have underinsured and have self-insured the difference. This average condition will apply in the event of a claim. You shall be considered as being Your own Insurer for the difference, and shall bear a rateable proportion of the loss accordingly.
• Contribution Condition
  If at the time of any loss destruction or damage happening to any subject matter insured there be any other subsisting insurances whether by You or by any other person or persons covering the same subject matter, We shall not be liable to pay or contribute more than their rateable proportion of such loss destruction or damage.
• Claims Notification
  - In the event of a claim, you must notify us as soon as reasonably possible, but no later than 14 days from the date of the accident.
  - You must submit the claim documents to us within 30 days from the date of the loss or such further time as we may in writing allow.
• Deductible/Excess
  This is the amount you have bear before we indemnify you of a loss.
• Premium Warranty
  Premium must be paid in full and received by us within 30 days from the inception date of the cover, otherwise the cover is automatically cancelled and you will still be responsible to pay the proportion of premium for the period we have been on risk.

What are the major exclusions under this policy?

This insurance does not cover:

1. Damage to the property insured caused by:
   1. • faulty or defective design materials or workmanship, latent defect, gradual deterioration deformation or distortion or wear and tear
      • settling or bedding down of structures, shrinkage or expansion of foundations walls floors or ceilings
      • interruption of the water supply gas, electricity or fuel systems or failure of the effluent disposal systems to and from the premises
   2. • collapse or cracking of buildings
      • corrosion, rust, extremes or changes in temperature, dampness, dryness, wet or dry rot
   3. • any fraudulent scheme trick device or false pretence
      • acts of infidelity or acts of dishonesty
      • theft not accompanied by violent and forcible entry
      • disappearance, unexplained or inventory shortage
      • bursting overflowing discharging or leaking of water tanks, water apparatus or water pipes
2. Damage caused by or arising from:
   1. Any willful act or willful negligence on the part of the Insured or any person acting on his behalf
   2. Cessation of work
   3. Delay or loss of market
   4. Consequential losses of any description other than those insured under Section II
3. Damage directly or indirectly caused by or arising from or in consequence of or contributed to by:
   1. Nuclear weapons material
   2. Ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel
   3. Combustion shall include any self-sustaining process of nuclear fission
4. War, civil war and any act of terrorism

Note: This list is not exhaustive. Please refer to the policy contract for the full list of terms and conditions under this policy.

What are the pre-acceptance conditions for this product?

• No claims for the past 3 years
• Insured has never been declined, cancelled or refused coverage previously

Can I cancel my policy?

You may cancel the policy by giving Us fourteen (14) days’ notice in writing. Upon cancellation, you are entitled to a refund of the premium based on the unexpired period of insurance less 10% administration charge provided no claims have been made during the current policy period.

No refund of premium for any cancellation of policy if premium is charged on minimum premium.